Financial statement/audit report review - Essay Example

This is because it allows for real time recording of transactions and that means that it will be easy to keep a check of the financial data of the county (Stephen, 2012). The county uses the same cash basis accounting method for the proprietary and fiduciary funds. The proprietary funds consist of the enterprise and internal service funds. The enterprise funds account for external customers and contains government wide financial statements. The internal service funds report on the activities that provides funding to other services.

The cash basis accounting methods fit the use in this case because heavy real-time processing is needed. However, the county handles a lot of transactions and there much data to be processed, therefore the accrual accounting method would have been appropriate for Enterprise accounting. The MIAMI-DADE County employs numerous application and total compliance to the GASB statement 34. The statement was designed so as to allow easy financial reporting and understanding to external parties. The MIAMI DADE County introduces the basic financial statement through the management and the discussion analysis which is in compliance with the statement (Parsons, Cambridge Systematics & National Cooperative Highway Research Program, 2008).

There is a provision of a financial highlight for the fiscal year right below the MD&A which contains the net assets and the statement of activities on the government transactions on cash basis technique. The MD&A provides a clear comparison of the last fiscal year and the present. The data clearly indicate the improved performance of the county’s finance with the figures well stated. This is in accordance with the GASB statement 34 requirements and provisions. The government wide transactions the financial statement are clearly distinguished with the government and business type transactions separated (Stephen, 2012).

This has made the statement easier to read and understand for any interested parties. All the accounting data follow after the summary of the financial statement. It is evident that the MIAMI-DADE County understands the importance of what the GASB statement 34 requires. The total compliance with this statement has made the financial reports easier to read and understand and that satisfies the aim of the statement. The management’s discussion and analysis included in this financial report as part of GASB statement 34 requirement is spectacular.

The MD&A provides significant information such as the $66 million in the rested balance inquiries and the beginning restated net assets valued at $2million. These figures help clarify the financial statement by providing a wild description of what one should expect on the rest of the financial report (Parsons, Cambridge Systematics & National Cooperative Highway Research Program, 2008). The MD&A also provides a detailed financial highlights. The highlights are chronological and in text and figures.

The highlight mode of presentation makes it easy to understand what is being communicated. Some of the important information included in the stamen includes the net assets, the long term liabilities, the general fund and the government fund. The report provides the increase and decrease in fixed assets in a monthly period. The inclusion of the investment of this asset and resultant net debt show the increased volume of their operations that led to a large unrestricted net asset deficit. The net increase of