CAFR Brief
In government spending, each stakeholder needs to be accountable for any financial transactions undertaken. There are departments entrusted with the role of spearheading the government spending to ensure equity and trustworthy in government money spending. The CAFR brief below summarizes the Richland county government spending presented in terms of annual financial statements. This financial statement includes statement of financial position, statement of comprehensive income and statement of cash flow. However, the statement of comprehensive income and statement of financial position shows is the yardstick to which the accountability is ensured. Undeniably, when government money is spent with regard to accountability, citizens are able to benefit from the initiative and thus the communication between the government and citizens is enhanced (Snowden, 2007).
Summary of economic conditions of Richland County
The county has various resources that help in economic growth. For example University of California makes the surrounding area develop in terms of basic amenities. Economic development is experienced in the transport and communication sector due to presence of University of California. I tourism sector, fort Jackson is a rated on the best tourist attraction sites capable of attracting large number of tourists in the area. In addition, fort Jackson employees 3,500 civilians which is one way of creating employment o people around that area.
The proximity with which Rich Land County is located makes it be viable for business deals. For example the it’s close location to New York and Miami and its location towards port of Charleston makes Rich land county accessible and therefore enhancement of trade and other financial transactions with other regions.
Financial Planning
The county has set policies for better management and plan for finances. These policies are geared towards making the residents feel one on one the economic development and growth of the county. When residents of Rich land County feel the economic growth, this will improve the quality of life and overall per capita income. Some of the policies related to financial planning include segregation of duties during financing of main projects in the county. This means cross- departmental team engages in approving the budget of the county and financing. Secondly, capital projects that cost less than 100, 000 US dollars are funded through pay as you go initiative meant to make small projects finished quickly. Finally, the working capital is set aside to maintain basic amenities such as water and sewer.
Financial Section
In financial management, accountants and auditors are independent. Each has a unique role to play in overall management t of the cash. The role of auditors is to make sure the financial statements present the true view of the County’s spending. Their opinion is based on thorough research and analysis of the financial statements before they come up with final report. The report by auditors presents the assets, liabilities, revenues and capital and total debts of Rich land County. In addition, the auditors give the opinions and undertake the work of audit through the guide of standards set aside by the fraternity of United States. Thus, indeed, the opinions are reliable and can be used in making concrete decisions. According to financial statements in year 2015, Rich land county experienced increased in Assets as compared to liabilities. Since capital is Assets less liabilities(C= A- L), the accounting equation, it is undeniably that capital of Rich land presented a positive value. This is concluded to mean the county experienced a favorable balance of payments. In particular, assets deferred from liabilities with 578 million US dollars. In addition, from the analysis of the statement of financial position, the net profit presented a significant increase as compared to year 2014. The net position figure in year 2015 was 534 million US dollars whereas the net position figure in year 2014 was 488 US dollars.
The annual financial statements are prepared following the governmental accounting standards board. (GASB).Below is a snippet of statement of financial position of Rich Land County
Citizens' Centric Report (CCR
Abstract
Over the decades, governments have been keeping it unclear about how they spend the taxes. Especially to citizens of a country, it has been difficult to determine how much their government spent on what based on the fact that financial reports are designed in a manner that only professional can be able to make out what is contained in them. However, it has to the attention that citizens of a country would much need to know how taxes they pay are spent by the government agents. Also, citizens would trust the spending of the government if they get to monitors and know how the monies are spent. Unlike only the government know what is contained in national budget, it is prudent to involve the constituents in making of such documents. After all, citizens contribute much of the national income through payments of taxes. As such, citizens centric report initiative is meant to make or tighten communication between a government and her citizens. This means clear means should be established and provided to present the financial information to citizens. According to Backhouse (2012), citizens are the owners of the government and therefore the have every right to inspect the books of account. On the other hand, the government has the sole mandate of presenting the same financial books and statements in a clear updated easy and concise manner to make it easy for citizens to understand every bit. CCRs give details of important information to the government for example the figures of the population in an area for detailed planning, the community peoples cultures and characteristics, cost and revenue details by the citizens for government to know how to impose tax on its citizenry.
AGA acknowledges that CCRs benefits both government and citizens in a fair way. For example when the citizens get to know about the financial situations of their country, they will amicably engage in government activities without questioning.
General fund expenditures
In the end of year, the county had invested in several projects of which some were corporate while other were no profit making. An overall budget of 636 million US dollars were used to finace these range of projects. This capital assets were deemed relevnt in economic growth as well as economic develeopment. However, 636 million US dollars capital assets was an increase of 19 million US dollars from 2014 capital assets investment. This projects that Richland County govermenet is putting effort in invetment of new assets. Inparticlar, the 1.9 million US dollars was reported increase in the facilities construction in progress and other upgrades. Other projects were reported fiished for example decker centre construction, Cooner ofiice construction and Lower Richland sewer sytems projects.
Richland county obatins revenues from an number of sources. This includes grants, taxes form its properties,money form tourism sectors, loans for banks, bail form natonal government and grnts form properties. The figure below presents a summary of sources of income.
Despite Richland County having different sources of revenue, spending is still channeled in different sectors including education sector, security though initiatives on public safety, economic development through construction of roads and communication networks, health and health services sectors which connotes building and upgrading of hospitals and clinic to give residents the chance to get treated once they suffer health problems, of course the government health sector should be cheap compared to private sector, public works and general government expenditures for example in payment of wages and salaries to its offers. Thus, Richland took priorities in financing the needs and wants of the county. The figure below summarizes how Richland County resumed channeling its income to different sectors.
Long term Debt
As at the end of the 2015 fiscal year, Richland County had the a total of 200Milion US dollars as debts owned internally and externally. In addition to the debt, Richland county had an abligation of clearing with US department of Agriculture which it owed the debt since year 2012 tobe cmpleted in 40 years. Further details about the long term debt of Richland County goverment is as shown below:
Economic factors in Richland County
Indeed, Richland County experiences highest unemployment rate. This is an indication of unfavorable economic growth. In fact, the unemployment rate stands at 6.6 % which is higher than the national unemployment rate which stands at 5.3 %. Despite the underlying economic situations in the county, the government of Richland has taken necessary measures in creating employment to youth through investment in projects that required labour intensive rather than those which are technology based.
Accounting policies adopted by Richland County
Reporting entity, this states that the entity or primary government and other Organisations should be included in the preparation of financial statements. For example Richland library stands at the soils of Richland library and it’s a public utility that generates monies for the benefit of residents. He monies received as service fees is used to maintain its operations and in financing other related facilities. According to Tang (2014), thee standards need to be followed in order to give a true and fair information.
Risk management
The county is exposed to several risks ranging from financial losses. However measures have been put into place to mitigate against these risks, for example the auditing department is all inclusive in the fight against the frauds. For instance in the year 2015, 3.12 million US dollars were reported as outstanding claims as shown in the statements below;
The following statement depicts the fund balance in the Richland County
This means there is un assigned fund balance of about 20% to make the balancing possible accorindg to the above figures.
References
Backhouse, J. (2012). Citizen Centric or Government Centric? Evaluating Policy and Management Citizens and E-Government, 234-249. doi:10.4018/978-1-61520-931-6.ch013
Snowden, S. (2007). Health care for the uninsured: Richland County, South Carolina. National Civic Review Nat Civic Rev, 96(1), 47-48. doi:10.1002/ncr.167
Tang, R. (2014). The Accounting and Finance Review and Journal of Accounting, Auditing and Finance (JAAF) Conference. Journal of Accounting, Auditing & Finance, 30(1), 122-122. doi:10.1177/0148558x14562674
