Broome County 2006 CAFR
The key question of this HW is: based on 2006 and 2007 Broome County CAFR, what does it tell you about the overall financial health of Broome County? In addressing this question, apply the analyses we talked about in the class and incorporate previous years’ CAFR information of Broome County.
1. Broome County 2006 CAFR, attached (attachments will show when you click the “view HW 3” link below)
2. Broome County 2007 CAFR: http://www.gobroomecounty.com/broome/files/finance/pdfs/2007CAFRsm.pdf
3. An example of financial analysis, attached
4. Common financial analysis indicators, attached
5. You are FREE to choose any financial indicators. If you happen to use the ones also used in my report, here is more information: a figure from my report to the IBM center for the Business of Government on the subject of fiscal health. It is on the state level, but for the educational purpose of this week’s homework, you may use the information among the states to interpret whether the Broome County is doing well fiscally by comparing its numbers with the states’ numbers.
1) select one aspect of the financial analysis from such aspects as financial position, financial performance, short-term liquidity, long term solvency and financial capacity. Then, calculate two indicators for the aspect that you selected. Please provide the formula used in the calculation to demonstrate your analytical process For example: Financial Position: net assets/total assets= 10M/100M=0.1 or 10% (no direct citation of numbers from other sources. The key is to calculate on your own).
2) Incorporating the previous years’ Broome County CAFRs when applicable (not every indicator has historical information, and it is ok), interpret the financial analyses to address the question: what do these analyses tell you about the overall financial condition of Broome County? In essence, it is a longitudinal approach to analyze data. Trend analysis, like the one we had in budget analysis, is preferable. If you happen to have financial data from comparative local governments, please feel free to incorporate these to aid your assessment of the financial health of Broome County. In essence, it is a cross-sectional approach to analyze data.
By now, you should have already known where to find the data from the CAFR for this assignment. The data include but not limited to: Statement of net assets (financial position), statement of activities (financial performance), and similar info of previous years (financial trends in the statistical section, page 163-165 of 2007 CAFR). Both 2006 and 2007 CAFRs are attached with this assignment.
The key to the successful completion of this assignment is to the ability to pull information together and tell a “story” of financial health using analysis. An example of the financial analysis is attached here as well, and try not to use the same indicator as the one in the example.