Presentation Requirements

4 Reporting

4.2 Government-Wide Financial Statements

4.2.1 Presentation Requirements Statements should always have a total column/row for the primary government. A total column for the government as a whole is permitted, but not required. If the business-type activities are immaterial, the government is not required to report them separately. In the statement of activities, the business-type activities may be combined within administrative or similar function or may be reported as a separate row. The basic financial statements should include separate information for each major discretely presented component unit. This requirement can be met in one of three ways:

1. Include separate column for each major discretely presented component unit on the face of the statement of net position (with a single aggregated column for nonmajor component units).

2. Within the basic financial statements, include a combining statement of net position for major discretely presented component units (with a single aggregated column for nonmajor component units and a total column that supports the presentation on the face of the government-wide statement of net position).

3. Include condensed financial statements for each major component unit in the notes to the financial statements. Prior-year or comparative data may be presented in the government-wide statements but is not required. The reports should follow the basic format in non-authoritative illustration presented in the GASB Statement 34 and the Governmental Accounting, Auditing, and Financial Reporting issued by Government Finance Officers Association. The management’s discussion and analysis should appear before the government-wide financial statements (statement of net position and statement of activities), fund financial statements including notes to the financial statements and the required supplementary information. The government-wide financial statements use the economic resources measurement focus and full accrual basis of accounting. The local government should consider materiality before applying any of the reporting requirements.