The financial statements also include notes that explain some of the information in the financial statements and
provide more detailed data. The statements are followed by a section of required supplementary information
that further explains and supports the information in the financial statements. Figure A-1 shows how the required
parts of this annual report are arranged and relate to one another. The remainder of this overview section of
management’s discussion and analysis explains the structure and contents of each of the statements.
Government-wide financial statements.
government-wide financial statements
are designed to provide the
reader with a broad overview of the City’s finances, similar in format to a financial statement of a private-sector
business. The government-wide statements provide short and long-term information about the City’s financial
status as a whole.
statement of net position
presents information on all of the City’s assets and deferred outflows of resources
compared to liabilities and deferred inflows of resources, with the difference between reported as
This statement combines and consolidates governmental fund’s current financial resources (short-term spendable
resources) with capital assets and long-term obligations. Over time, increases and decreases in net position may
serve as useful indicators of whether the financial position of the City of Raleigh is improving or deteriorating.
statement of activities
presents information showing how the City’s net position changed during the most
recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change
regardless of the timing of related cash flows
. Thus, revenues and expenses are reported in this statement
for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but
unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are principally supported
by taxes and intergovernmental revenues (
) from other functions that are intended to
recover all or a significant portion of their costs through user fees and charges (
is intended to simplify and summarize the user’s analysis of the cost of various governmental services and/or
subsidy to various business-type activities. The governmental activities of the City include general government,
community development, public works, public safety, leisure services, and economic development programs. The
business-type activities of the City include water and sewer, convention and performing arts complex fund, parking
facilities, mass transit, stormwater management and solid waste services.
The government-wide financial statements include the Walnut Creek Financing Assistance Corporation (
a blended component unit
), an organization formed to be the financing conduit for certain debt issuances such
as certificate of participation. The WCFAC, although legally separate, functions for all practical purposes as a
department of the City, and therefore has been included as an integral part of the primary government.
The government-wide financial statements can be found on pages 1 - 3 of this report.
Fund financial statements.
Traditional users of governmental fund financial statements will find the fund financial
statements presentation more familiar. However, the focus is on major funds, rather than the individual fund types.
The fund financial statements provide a more detailed look at the City’s most significant activities.
is a grouping of related accounts that is used to maintain control over resources that have been segregated
for specific activities or objectives. The City of Raleigh, like all other governmental entities in North Carolina,
uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements, such as the
general statutes or the City’s budget ordinance. All of the funds of the City can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds.
are used to account for essentially the same functions reported as
in the government-wide financial statements. However, unlike the government-wide
financial statements, governmental fund financial statements focus on
near-term inflows and outflows of spendable
as well as on
balances of spendable resources
available at the end of the fiscal year.
may be useful in evaluating a government’s near-term financing requirements.
City of Raleigh
Management’s Discussion and Analysis