The collective mission of the GASB, the FASB, and the FAF is to establish and improve

financial accounting and reporting standards to provide useful information to investors and other
users of financial reports and educate stakeholders on how to most effectively understand and
implement those standards.
Shelbyfitzpatrick18@gmail.com

1. May 1, 2021 to April 30, 2022

2. Allen, Gibbs & Houlik, L.C. (AGH)

Address of the auditor: Overland Park, Kansas

Yes, the opinion given by the auditor is unmodified and is not limited to basic financial
statements. It includes combining and individual fund statements

3. The report consists of the following: organization chart, table of contents, list of principal
officials, and letter of transmittal. The letter of transmittal is signed by the director of
finance and dated.

The major items of discussion in the letter of transmittal are:

 Auditor's information
 Profile of the government
 Information about the local economy
 Major initiatives taken.
 Section of infrastructure which includes some items of discussion like- General
obligation bonds, Kansas City Water Department, Kansas City International Airport
Terminal Modernization Project
 Social justice which includes-Office of Racial Equity and Reconciliation, LGBTQ+ Pride
Flag raised at City Hall, Quality of Life Investment District
 Information regarding City Programs which include- American Rescue Plan Act
(ARPA), Emergency Rental Assistance Program, Home Repair and Paint Programs,
Neighborhood Cleanup Assistance Programs, Smartphone App
 Topic related to Environmental initiatives which include- New KCI Terminal Garage is
Going Green, Kansas City Going Green with Electric Vehicles, City’s Climate Protection
and Resiliency Plan
 Economic development topics which include- Kansas City Current Downtown Stadium,
FIFA World Cup 2026, 2023 NFL Draft, Main Street and Riverfront Streetcar Extension,
Multi-Sport Facility, 18th and Vine Success, Awards and Acknowledgements
4. Yes, it includes the Management’s Discussion and Analysis. The major items of
discussion in this part are:

 Financial Highlights
 Overview of the financial statements
 Government-wide Financial Statements
 Fund financial statements
 Governmental Funds
 Proprietary Funds
 Fiduciary Funds
 Discretely Presented Component Units
 Notes to the Basic Financial Statements
 Other Information
 Statistical Information
 Traffic Violation Fines and Court Costs
 Government-wide Financial Analysis
 Governmental Activities
 Business-type Activities
 Financial Analysis of the Government’s Funds
 General Fund Budgetary Highlights
 Capital Assets and Debt Administration
 Economic Factors and Next Year’s Budgets and Rates
 Request for Information

5. Yes,it does.

6. Yes, the report reflects these things. The statements are-

 Governmental Fund Balance Sheet,

 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net
Position,
 Governmental Funds Statement of Revenues, Expenditures and Changes in Fund
Balances,
 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures
and Changes in Fund Balances to the Statement of Activities,
 Proprietary Funds Statement of Net Position,
 Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net
Position,
 Proprietary Funds Statement of Cash Flows,
 Fiduciary Funds Statement of Net Position,
 Fiduciary Funds Statement of Changes in Net Position.

The major governmental and proprietary funds are:

 Governmental funds: general funds, capital improvements, and non-major
governmental funds.

Proprietary funds: Water, Kansas City Airports, and sewer.

7.

Organizational Purpose: Governments: Government entities exist to provide services and meet
the needs of their constituents. Their primary goal is not to generate profits but to promote the
well-being of the community, ensure public safety, and enhance the quality of life.

For-Profit Businesses: For-profit enterprises are primarily profit-driven. Their main objective is
to maximize shareholder wealth and generate financial returns for owners and investors.

Sources of Revenue: Governments: Governments operate within a complex legal framework

that dictates their funding sources, expenditure restrictions, and accountability requirements.
They often rely on tax revenues, grants, and other non-business-type activities.

For-Profit Businesses: For-profit businesses are subject to different legal and regulatory
frameworks that focus on financial reporting and compliance with generally accepted accounting
principles (GAAP). Their revenue is primarily derived from sales and business operations.

Relationship with Stakeholders: Governments have a broad range of stakeholders, including

citizens, taxpayers, elected officials, and bondholders. They must balance the interests of these
stakeholders to provide public goods and services. As such, the accountability relationship is
different, and financial statements need to reflect this distinction. Governments use fund
accounting to segregate resources based on their specific purposes and limitations. It is distinct
from the accounting used by for-profit businesses, which typically focus on company-wide
financial statements.

Potential for Longevity: The government has a long-term view of operations as governments
do not normally go out of business which changes the focus of accounting from a short-term
recovery of amounts invested in assets to a longer-term focus. In terms of depreciation,
governments may elect not to depreciate capital assets and they can expense improvements.

Role of the Budget: Measuring the financial performance of government entities is often
focused on their ability to provide services efficiently, manage resources effectively, and achieve
budgetary compliance, rather than on profitability. Budgets are integral to governmental
financial management. Many governments are legally required to adopt and adhere to budgets.
Budgetary accounting is used to compare actual financial results with the budgeted amounts. The
budgetary process for for-profit businesses is for planning and control.
 8. Definition of governmental organizations according to FASB and GASB:

Public corporations and bodies corporate and politic are governmental organizations. Other
organizations are governmental organizations if they have one or more of the following
characteristics:

 Popular election of officers or appointment (or approval) of a controlling majority of the

members of the organization governing body by officials of one or more state or local
governments.
 The potential for unilateral dissolution by a government with the net assets reverting to a
government, or
 The power to enact and enforce a tax levy.

Furthermore, organizations are presumed to be governmental if they have the ability to issue
directly (rather than through a state or municipal authority) debt that pays interest exempt from
federal taxation.

9. The Mission of GASB:

The collective mission of the GASB, the FASB, and the FAF is to establish and improve
financial accounting and reporting standards to provide useful information to investors and other
users of financial reports and educate stakeholders on how to most effectively understand and
implement those standards.

10. picture

The Governmental Accounting Standards Board (GASB) outlines several key environmental
differences between governments and for-profit business enterprises in their document titled
"Why Governmental Accounting and Financial Reporting Is—and Should Be—Different." These
differences reflect the unique nature and purpose of government entities. Here are five of these
environmental differences:

Purpose and Objectives: Governments: Government entities exist to provide services and meet
the needs of their constituents. Their primary goal is not to generate profits but to promote the
well-being of the community, ensure public safety, and enhance the quality of life. For-Profit
Businesses: For-profit enterprises are primarily profit-driven. Their main objective is to
maximize shareholder wealth and generate financial returns for owners and investors.
Fiscal Accountability and Legal Framework: Governments: Governments operate within a
complex legal framework that dictates their funding sources, expenditure restrictions, and
accountability requirements. They often rely on tax revenues, grants, and other non-business-
type activities.
For-Profit Businesses: For-profit businesses are subject to different legal and regulatory
frameworks that focus on financial reporting and compliance with generally accepted accounting
principles (GAAP). Their revenue is primarily derived from sales and business operations.

Funding Sources and Revenue Recognition: Governments: Governments receive revenue from
various sources, including taxes, intergovernmental grants, donations, and fees for services.
Revenue recognition can be different and more complex compared to for-profit entities. For-
Profit Businesses: For-profit businesses typically generate revenue through sales of goods or
services, which are recognized following specific revenue recognition principles under GAAP.

Financial Performance Measurement: Governments: Measuring the financial performance of

government entities is often focused on their ability to provide services efficiently, manage
resources effectively, and achieve budgetary compliance, rather than on profitability. For-Profit
Businesses: Financial performance for for-profit businesses is primarily measured in terms of
profitability, return on investment, and shareholder value.

Stakeholder Interests: Governments: Governments have a broad range of stakeholders, including

citizens, taxpayers, elected officials, and bondholders. They must balance the interests of these
stakeholders to provide public goods and services. For-Profit Businesses: For-profit enterprises
primarily serve the interests of their shareholders and investors. Profit generation and
shareholder value are paramount.
These environmental differences necessitate unique accounting and financial reporting standards
for governments to accurately reflect their operations, financial health, and accountability to the
public. GASB's standards are designed to address these distinctions and provide transparent
financial information that helps citizens and policymakers make informed decisions about
government finances and services.