Introduction
The Comprehensive Annual Financial Report (CAFR) that our team chose to analyze is for the State of Ohio. The CAFR is for the fiscal year that ended June 30, 2006. The information that was reviewed for the CAFR budget analysis was: the population, the State of Ohio’s governmental structure, the size of the budget and its interrelationship with the CAFR, major industries located in the entity, and other pertinent demographic information. Population
The population for the State of Ohio was compared in an annual estimate of the population for Ohio Counties: April 1, 2000 to July 1, 2006. According to the State of Ohio, “the estimated census was 11,353,140 but the July 1, 2006 estimate was 11,478,006. The annual average percentage change was .2%. Governmental structure
The governmental structure for the state of Ohio has three branches, which are the: executive, legislative, and the judicial. The three branches are popularly elected and the elections are on even numbered years. According to answers.com, (2006), “The executive branch of Ohio government comprises six officers elected statewide for four-year terms, all on a partisan ballot: Governor and Lieutenant Governor, elected jointly on a single ticket, Secretary of State, Attorney General, Auditor, and the Treasurer” (P. 1). Secondly, “The legislative branch, the Ohio General Assembly, is made up of two houses—the Senate and the House of Representatives.
The House of Representatives is composed of 99 members elected from single-member districts of equal population. Each of the 33 Senate districts is formed by combining three house districts. Senators serve four-year staggered terms and representatives serve two-year terms” (P. 1). Finally, “The judicial branch is headed by the Supreme Court, which has one chief justice and six associate justices, each elected to staggered six-year terms. There are several other levels of elected judiciary in the Ohio court system: State court of claims, which has jurisdiction over all civil actions against the State of Ohio in situations in which the state has waived its sovereign immunity, State courts of appeal (12 district appeals courts): these are the intermediate appellate courts, County courts of common pleas: 88 county common pleas courts—These are the principal courts of first instance for civil and criminal matters. In populous areas, there are often several divisions, such as general, juvenile, probate, and domestic relations, and Municipal courts and county courts—these courts primarily handle minor matters, such as traffic adjudication and other misdemeanor and small claims” (P. 1-2). Size of budget and its Interrelationship with the CAFR
The CAFR reports on the statement of revenues, expenses, and changes in net assets: $43,437,740 for total operating revenues, $71,337,301 in total operating expenses, and $30,356,712 for total non-operating revenues/expenses. The statement of cash flows on the CAFR reflect: $27,646,808 for net cash used for operating activities, $33,309,380 for net cash provided by non-capital financing activities, and $3,420,492 for net cash used for capital and related financing activities. Secondly, the following information was found on the Ohio’s budgetary financial report, (2006),”The State ended fiscal year 2006 with a GRF budgetary fund balance of $631.9 million, an increase of $493.5 million compared to the ending fund balance for the previous fiscal year” (P. 1). The budgetary revenues total was $25,530,790, which consisted of: income taxes, sales taxes, corporate and public utility taxes, motor vehicle fuel taxes, cigarette taxes, other taxes, licenses, permits and fees, sales, services and charges, federal government, investment income, and other revenues.
The budgetary expenditures totaled $24,866,347 which consisted of: primary, secondary and other education, higher education, public assistance and Medicaid, health and human services, justice and public protection, environmental protection and natural resources, transportation, general government, community and economic development, local government support, and tax relief. The general fund type consists of general revenue and general services. The special revenue fund type consisted of higher education improvement, cultural facilities building, and Clean Ohio Conservation Program. Next, the capital projects fund type consisted of: mental health facilities improvement, parks and recreation improvement, administrative building, and juvenile correctional building.
The enterprise fund type consisted of: liquor control, state lottery, and workers’ compensation. Finally, the agency fund type consisted of: agency, accrued leave liability, and volunteer fire fighters’ dependents. The totals for each of the fund types are: general government ($1,015,491 for adjusted appropriations (aa) $875,7998 for total committed appropriations (tca), $139,693 for uncommitted appropriations (ua), and $888,605 for budgetary expenditures (be); total community and economic development fund: $2,042,882 for adjusted (aa), $1,374,832 for total committed, $668,050 for uncommitted, and $1,250,961 for expenditures; total local government support and tax relief fund: $4,110,991 for adjusted, $3,943,201 for total committed, $167,790 for uncommitted, and $3,943,201 for expenditures; capital outlay fund: $1,133,362 for adjusted, $446,471 for total committed, $686,891 for uncommitted, and $38,163 for expenditures; debt service fund: $1,959,802 for adjusted,$1,869,016 for total committed, $90,786 for uncommitted, and $1,869,018 for expenditures, and the proprietary fund: $1,773,832 for adjusted, $1,710,245 for total committed, $63,587 for uncommitted, and $1,707,96 for expenditures. Finally, the total governmental and proprietary budged fund group’s totals are: $53,052,433 for adjusted appropriations, $48,370,868 for total committed appropriations, $4,681,565 for uncommitted appropriations, and $47,115,421 for the budgetary expenditures. As you can tell by the above information, the state government’s main financial statement is the budgetary financial report because the budgetary report gives more informative information than the CAFR, even though the two reports have an interrelationship. Major Industries
According to the Ohio Department of Development, (2006), “Ohio is a leading producer of all types of steel. Production, employment, firms, investment, and trends analyzed. Ohio is second in the nation for motor vehicle production. Production, employment, firms, investment and trends analyzed. Next, a traditional hallmark, Ohio’s machinery industry is known worldwide for its quality. Ohio leads the nation in the production of general-purpose machinery and ranks second in metalworking machinery. Fourthly, Home to over 1200 establishments, the rubber & plastics industry is a preeminent Ohio employer, centered in the Akron area. Also, Ohio is home to a greater-than-average number of establishments, which produce electron tubes, control process instruments, measuring devices, and other contributions to today’s information technology. Finally, The reason most commonly cited for Ohio’s leading position in the Food Processing industry is the state’s strategic location between the grain belt and the populous Eastern markets” (P. 1). Other Demographic Information
The State of Ohio’s CAFR includes schedules with demographic information. According to the CAFR, (2007), “Schedule 4 consists of the number of audits released by type: townships (677), counties and agencies (710), schools (934), cities (376), villages (362), libraries (119), state agencies (68), universities (75), Medicaid/compliance (19), special audits (3), and performance audits (23). The total of the audits released by type is 3,366. Finally, the local government services completed projects by type consisted of: GAAP complications; GPFS/CAFR under GASB No. 34 (62), Basic financial statements under GASB No. 34 (140), consultation/supervision only (30), cash basis (33), fiscal emergency watch (66), reconciliations and reconstructions (15), special projects (0), general assistance, training (22), and manuals (5). The total of the audits is: 373” (P. 46-47). Conclusion
In conclusion, the Ohio budgetary financial report and the comprehensive annual financial report work together in an interrelationship which consists of the following elements: population, governmental structure, the size of the budget, major industries, and other demographic information. All of the information provided by both financial reports work together to provide a service to the common people.
References
Answers.com. (2006). Retrieved April 13, 2007 from: www.answers.com. Ohio Department of Development, (2006). Retrieved April 13, 2007 from:
www.odod.state.oh.us.
Ohio Office of Budget and Management Division of State Accounting. (2006). The Ohio Budgetary Financial Report for the fiscal years Ended June 30, 2006. Retrieved April 13, 2007 from: www.tax.ohio.gov
State of Ohio. (2007). Comprehensive Annual Financial Report for the Fiscal Years Ended June 30, 2006. Retrieved April 13, 2007 from: www.auditor.state.oh.us. State of Ohio. (2006). Retrieved April 13, 2007 from: www.odod.state.oh.us
