CAFR Report- Waltham, Massachusetts

All the states whether local or municipal are supposed to create the CAFR report. The
role of the report is to indicate how the budgeted money has been spent. CAFR consists of
several government financial statements that need to comply with the accounting standards set in
the GASB. The CAFR reports need to be standardized to prevent ambiguity in providing the
report for funding from the government. There are three sections of the CAFR and include the
introductory, fiscal, and statistical. It also plays a crucial role in combining the financial details
of and enterprise the accounting funds.

Executive Summary

The performance of Waltham is not badly off when compared to other municipalities
such as that of Baltimore. The financial year for Waltham starts on 1 July and ends on 30 June in
the same year. The City utilizes variance analysis to budget-to-actual reports (Wealth Advisory
Outsourcing, 2020). The budgeted amounts accounts for the city’s planned expenses, which
implies that the revenue being generated needs to balance the expenses. Since there is an increase
in the Waltham needs, the next financial year’s budget needs to be higher than that of the
previous fiscal term. The variance analysis provides a budget versus the actual figures. It is vital
to understand the budget to predict revenue and the cost given for a particular future
(Comprehensive Annual Financial Report, 2020). The level of effectiveness of the variance
analysis is very high as it makes a comparison between the budget and the actual figures. That
implies that there is a high level of accuracy. Also, it is effective in the identification of the
changes that take place on income and the sources of revenue or expenditure. For a non-profit
organization, it is not expected that it will generate gains. Therefore, the variance is expected to
be small. A general analysis of the budget and outcomes of Waltham is an indication that they

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are performing well. However, a key recommendation would be to do forecasting so and to
increase the accuracy level in their projections and actual performance. A key intention will be
on ensuring there is the creation of a contingency plan for any outcomes that might not be
favorable in their performance.

Overview

One of the fun facts about the City of Waltham is that it was created after there was a
separation from a water town in 1738. In most instances, it is referred to as the watch city of
America because it is known for the production of wristwatches in masses. A total of 35 million
watches have been created during the reign of the Waltham Watch company for a period lasting
over 100 years. More so, the majority of individuals are not aware that Waltham is the home of
the Boston Manufacturing company, which is the first textile mill to have been integrated into
the United States. The City is located along with the river Charles and the name Waltham means
a home that is found in the woods. An analysis of the CAFR for Waltham gives a clear picture of
how they spend the funds on both the government and other activities belonging to the enterprise
(Wealth Advisory Outsourcing, 2020). The cover page has a summary of the expenditure. The
introductory section provides a list of the names of the administrators. The name of the
administrator is mentioned together with the official position that they hold. The governance of
the City of non-profit making and the chart shows the mayor who is the leader. There is a
summary of the financials in the introduction. For instance, Waltham has a budget of
$754,208,491, and so far, they have spent a total of $754,208,491 (Comprehensive Annual
Financial Report, 2020). There is also some information on the variation between the low- and

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high-income earners in the municipality. Some of the financial statements that are included in the
CAFR for Waltham include the balance sheet, trial balance and reconciliation statements.

Government-Wide Financial Statements

A key takeaway from the CAFR is that the mission statement of the entity is to increase
service delivery to the people of Waltham through increased revenue generation that will support
service delivery. The net position amount for 2016 is higher than that of 2015. The increase in
the amount of the net position in the balance sheet indicates that they have increased revenue.
The State of Waltham will be able to finance their various operations that will increase service
delivery. The mission statement of the States of Waltham is not directly stated in their financial
report (Wealth Advisory Outsourcing, 2020). An assumption is that the mission statement as it
appears is a representation of the main concern in service delivery. The balance sheet shows that
Waltham is trying to balance its assets and liabilities. A successful balance between the two
means that the state can generate enough revenue to fund its operations. Effective and efficient
funding of the activities means an increase in service delivery and satisfaction of the citizen’s
utility.
Form the report, the total net position for the City for the year ended 2020 was $827,372.
The amount is higher than that of 2019, which was $777,730. The amount is just of the business
activities. Other amounts in the report of the fiscal position of the City include that of the
business activities. The amounts are $2,965,022 and $2,673,096 for the year ended 2016 and
2015, respectively (Comprehensive Annual Financial Report, 2020). The same report provides a
total of the two main activities. For 2020 and 2019, the amounts were $3,792,394 and
$3,450,826, respectively. Equally, there is an analysis of the changes in the net position. The

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analysis includes information from the revenue generated in the respective financial years and
the expenses incurred for the state.
Entity 2020 2019
Total Net Position $827,372 $777,730
Business Activities $2,965,022 $2,673,096
Total Activities $3,792,394 $3,450,826

Government Funds Financial Statements

From the financial statements after the government-wide financial statements, a key
takeaway point is that it is possible to fund the operation through donations and grants. The two
should not be the main source of funds in the CAFR as they will not be able to meet the
requirements of the states. Also, donations and grants should not be treated as income by the
states, and they will interfere with the recording in the financial documents. More so, the
government-wide and funds are vital in all the financial statements, as shown in the CAFT
(Comprehensive Annual Financial Report, 2020). A key concern is on the balance sheet, as it
will show all the expenditures of the state. The section is a detailed part of the CAFR on how the
state generates revenue and how it uses the revenue generated. The general funds for the city
reporting are by the priority of the funds. Significant financial reporting is done, and a
reconciliation with the various financial statements is done during the auditing process. Also,
various provisions are specific and need to be audited. The process was done and reported for the
organization that is being contrasted. The last report is for the previous financial year, which has
undergone a financial review based on the respective report that has been audited.

Proprietary Funds

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One of the takeaway points from the CAFR is that the proprietary fund for the state
consists of the enterprise fund and funds from the internal service. The service includes the
voluntary payment of goods and services that are used for accounting purposes. The enterprise
funds are a section of the business-type activities and government financial documents. They
include amounts for water, sewers, utility bills, and the facilitation of parking in the state. The
budgetary allocation document provides information on the amount in the original budget, the
amount in the final budget, and the amount used in reality. The highest allocation of the budget is
towards the general government. The expense amounts are $358,667, $340,693, and $305,297 in
the original, final, and actual budget, respectively. The least allocation of the budget is towards
social services. The amount allocated to social services is $3,108, $3,108, and $2,107 in the
original, final, and actual budget (Comprehensive Annual Financial Report, 2020). Of key
importance is the information on debt administration in the states. The debt administration
information is vital, and it provides an overview of the state’s financial performance within a
specific financial year. In 2016 and 2015, the states’ general bonded debt was $455,909 and
$505,649, respectively
Entity Original Final Budget
Expenses Amount $358,667 $340,693 $305,297
Social Service $3,108 $3,108 $2,107

Fiduciary Funds

The fiduciary funds of the states are prepared under the entire accrual basis to keep a
record of the resources that are outside the government. The highest expenditure by the state is
on wastewater management. The amount is $193,563 for the 2016 financial year. The charges for

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the wastewater services are $229,300 for the same fiscal year. The least expensive for the states
is towards the no major proprietary. The amount for the no major proprietary is $12,148 for the
2016 financial years, and the charges for the services sum up to $37,505 in the same fiscal year
(Comprehensive Annual Financial Report, 2020). Another key financial statement in the CAFR
of the state is on budgetary allocation. The statement provides detailed information on how the
state’s government allocates and plans for the revenue generated within a specific financial year.

Conclusion

The creation of fair financial statements and the various steps is done according to the
audit and the standards for financial statements. Also, there is a focus on maintaining the internal
control done per the presentation and implementation by the top-level management. The
management does not take the responsibility of carrying out an analysis of items at the disposal
of an organization. The responsibility is to the extent of the ability of the government. The
required data is presented for an audit process to be carried out and a compilation of all the
required reports. Revenue is the amount that is collected by the income service of the public
institution remission. It can equally be made as a private-payments. The organization and the
government that has been mentioned above each provision in the CAFR before remitting their
taxes through the treasury. The evaluation of the CAFR for Waltham indicates that their
performance level is not bad off. The approach used in the creation of revenue and the sources of
funding are reliable and contributes to the accomplishment of the stipulated budget. A key
recommendation will be to increase the sources of funding through an increase in the tax
obligation. In the end, it will be possible for Waltham to realize the set goals and objectives
making it more competitive than other municipalities in the region.

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References

Comprehensive Annual Financial Report. (2020). City of Waltham, Massachusetts.
https://www.city.waltham.ma.us/sites/g/files/vyhlif6861/f/uploads/cafr_electronic_pdf_signed_fi
nal_report_and_fs_2020.pdf.
Wealth Advisory Outsourcing. (2020). City of Waltham, Massachusetts.
https://www.city.waltham.ma.us/sites/g/files/vyhlif6861/f/uploads/mgt_ltr_electronic_pdf_signe
d_final_report_202.pdf.