Finance Case study: Comprehensive Annual Financial Report (attached)
Please see the attached CAFR for the City of Opa Locka, Florida. This is the document to be studied to answer the following questions:
I. Management Discussion and Analysis: GASB 34 calls for governments to discuss their financial condition in the so-called MD&A. What does the MD&A reveal? Are there any important revelations (doubtful) or is everything “cool� Is there any commentary on how the recent changes in Florida’s property taxation might impact operations? Does management discuss employment or earnings patterns?
II. Are Enterprises Running on At Least a Breakeven Basis or Do You Note Any Deficits? Remember, enterprise funds (including internal service funds) are generally believed to be business-like basis (break-even or better). A deficit may not be fatal but it suggests a red flag for further assessment.
This is a fairly simple and short assignment. Each answer only needs to be 2 pages (double-spaced) in length, (longer if you like) but please read through the case thoroughly and make your answers clear, complete and intellectual. Include calculations if necessary.