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 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 $2 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 $2 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.
4.3.13.30 If more than $750,000 in federal funding was expended by the government during the year and a federal single audit is required, the government must prepare financial statements if it has expenditures of federal funds from more than one program or cluster. However, a government that normally does not prepare financial statements may not need to prepare them for the single audit if it has expenditures from only one program or cluster. Governments should consult with their local SAO team or the SAO HelpDesk if they have questions about this requirement.
4.3.13.40 Instructions
a. To prepare, enter beginning cash and investments. Enter any adjustments (net 388/588). Then enter total additions (310-390) and total deductions (510-590). 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 fund type should be presented in a consolidated manner. That is, any intrafund activity, representing transactions or transfers occurring within the fund between departments, programs or managerial funds, should be eliminated as well as any interfund transactions within the fund type.
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.
The accompanying notes are an integral part of this statement.
