Bellevue College

Comprehensive Annual Financial Report (CAFR)

Chapter 7 Project: 7-16

Stephanie Jacobson
ACCT 260 – Government & Non-Profit Accounting –
Winter 2023
Instructor: Dr. Alice Jenkins
February 16, 2023
 CAFR 7-16
For this assignment I looked up the comprehensive annual financial report (CAFR) for

the fiscal year 2021 for the city of Tampa, Florida.

a. Internal Service Funds.

(1) Use of Funds. The city of Tampa uses internal service funds to account for its

fleet maintenance and consumer services (utility accounting division)

functions. I cannot find where the report states the basis of accounting used

for the internal service funds, but it appears the accrual basis of accounting is

used.

(2) Fund Disclosure. In the combining statement of net position, current and

capital assets are displayed separately. There are receivables, but no

allowances for estimated uncollectibles are provided. Allowances for

depreciation are deducted from related capital asset accounts.

Current liabilities and long-term debt are properly distinguished in the

combining statement of net position. There is no information on long-term

loans from other funds nor capital contributions received from other funds.

Billings to city departments, earnings on investments, state government, and

miscellaneous revenue are stated as sources of revenue obtained by each

internal service fund. Costs and expenses of each fund are classified as

operating and nonoperating. Noncash expenses are not separately disclosed.

The costs and expenses of the fleet maintenance fund exceed the revenues, but

the revenues of the consumer services fund exceed the costs and expenses. I
 could not find anything in the statements or the notes explaining how the

excess is being used or how the deficiency is being financed.

(3) Statement of Cash Flows. A combining statement of cash flows is presented

for internal service funds. The fleet maintenance fund has more expenses than

revenue, and here in the statement of cash flows there is less net cash provided

by operating activities for the fleet maintenance fund. As the consumer

services fund has more revenue than expenses, it also has more net cash

provided by operating activities. Cash flows from financing activities are

presented separately for noncapital- and capital-related activities. There is a

section for cash flows from investing activities.

(4) Government-wide Financial Statements. There is no column for business-type

activities on the statement of net position or statement of activities because the

internal service fund accounts are categorized under governmental activities.

b. Enterprise Funds.

(1) Use of Funds. The enterprise funds administer the water utility, wastewater

utility, solid waste system, parking facilities, and golf courses. The enterprise

funds are broken down into major and nonmajor enterprise funds: the water

utility, wastewater utility, and solid waste system are all major enterprise

funds. They are presented in their own columns under Business-type

Activities in the Proprietary Funds statements. The parking facilities and golf

courses are nonmajor funds, and they are presented in combining statements

for nonmajor enterprise funds. All enterprise funds use accrual accounting. All

funds except golf courses are earning revenues that exceed costs. The golf
 courses fund has more costs and expenses than it has revenue. The golf

courses fund is subsidized by the general fund. The notes include segment

information on individual enterprise funds.

I cannot find information on any sales to other funds or other governments.

There are receivables from other funds. Receivables are disclosed under

separate columns for each enterprise fund. I see no evidence that enterprise

funds contribute to the general fund in lieu of taxes, except that there is a “due

to other funds” account in the statement of net position.

(2) Utility Funds. I am unable to tell whether Tampa utilities are subject to the

same regulations as investor-owned utilities. Depreciation is taken on the

utility plant. Accounting policies and accounting changes are disclosed in the

notes to the financial statements. Depreciation is taken on a straight-line basis

using the mid-year convention. The utility accounts do not account for their

own debt service and construction activities in the manner described in the

chapter. Restricted cash and investments are used in the water utility and

wastewater utility funds.

(3) Government-wide Financial Statements. About sixty-five percent of the net

position of the business-type activities are reported as net investment in

capital assets. Less than one percent is reported as restricted and about thirty-

four percent is reported as unrestricted. The business-type activities were

profitable.
 References

Department of Revenue and Finance. (2022). Comprehensive Annual Financial Report of the

City of Tampa, Florida. https://www.tampa.gov/document/fy2021-comprehensive-annual-

financial-report-city-tampa-98301