Comprehensive Annual Financial Report Briefing
The complete annual report, known as a Comprehensive Annual Financial Report (CAFR) contains far more than basic financial statements. It also includes a letter of transmittal, a management’s discussion and analysis (MD&A) that highlights the government’s financial performance during the year and its financial position at year-end, and a wealth of statistical data. This briefing will discuss the comparison of governmental accounting and for profit financial accounting and how to understand the government reporting and reporting entity. In addition with an overview of how Management Discussion and Analysis reports for the state of New Hampshire.
“The New Hampshire Lottery Commission (the Lottery) was created in 1963 through the enactment of New Hampshire Revised Statutes Annotated (RSA) 284:21-a for the sole purpose of raising revenues to help fund education in New Hampshire” (NHLC, June 30, 2011, p-2, para.10). New Hampshire was the first state-run lottery. The Lottery Commission operates as a department of the State of New Hampshire. All revenue that is earned is exclusively used for state aid to education in New Hampshire. The CAFR provides detailed financial statements, Independent Auditor’s Report, Management’s Discussion and Analysis, statistical data on the U.S. and New Hampshire’s Lottery, awards, appointed officials and organizational chart. “The New Hampshire Lottery Commission provides customers the opportunity to participate in a variety of Instant and on-line lottery games” (NHLC, June 30, 2011, p 3, para 2). The NHLC consists of two joint ventures, the first with Maine and Vermont lotteries with the Tri-State Lotto Commission, and secondly “the Multi-State Lottery Association, which is comprised of many state lotteries, as such, it operates a number of on-line games under those jurisdictions” (NHLC, June 30, 2011, p3, para 2).
Government accounting and For-Profit Financial Accounting