4 Reporting
4.3 Financial Statements
4.3.13 Fiduciary Fund Resources and Uses Arising from Cash Transactions (C-5)
Applicability
4.3.13.10 Statement C-5 should be prepared for all fiduciary trust and custodial funds. Exclude all payroll and claims clearing funds. Statement C-5 does not need to be prepared if the government is completing the annual report schedule via the filing system. The filing system will automatically generate this Statement based on the Schedule 01 data.
4.3.13.15 Local governments are required to update the incorrect financial statements. The requirement applies to all errors found prior or during an audit.
4.3.13.20 Local governments with total revenues of $3 million or less are not required to prepare C-4 or C-5 statements unless debt covenants, a contract, a grantor or the government’s legislative body requires the government to prepare the financial statements or to receive a financial statements audit. If this request is made, C-4 and C-5 statements and notes should be prepared. The $3 million threshold calculation excludes any proceeds from issuance of long-term debt and resources held by the government in its fiduciary capacity. Local governments which choose not to prepare C-4 and C-5 statements must have their budgeted information available for the audit.
4.3.13.40 Instructions
a. To prepare, enter beginning cash and investments. Enter any adjustments (net 388/588). Then enter total additions and total deductions. Then foot the statement to calculate ending cash and investments.
b. Beginning and ending cash and investments on Statement C-5 should equal the beginning and ending cash and investments on Schedule 01.
4.3.13.50 Each fiduciary fund type is presented in a consolidated manner. There is no elimination required for interfund activities across the fund types, however intrafund activities within each fund type column should be eliminated. For example, movement of resources from the custodial fund group to the investment trust fund group would not be eliminated. Movement of resources between custodial funds that represent transfer like activity would be eliminated.
4.3.13.60 Fund types should be appropriately clear for financial reporting purposes.
4.3.13.70 The Total for All Funds (Memo Only) column is a sum of amounts reported for all funds.
4.3.13.80 For financial reporting purposes, amounts should be presented in whole dollars.
