The financial reporting activity includes preparation of three annual financial reports, three Financial Statement Directives The Preliminary Report is issued on August 15 for the previous fiscal year and summarizes the ending cash-basis position of the General Fund. The data in this report is used to implement the subsequent year's budget and provide the undesignated (surplus) balance, if any, which is available for future appropriation.
The audited December 15 Comprehensive Annual Financial Report (CAFR) is prepared in accordance with generally accepted accounting principles (GAAP) and is used extensively by rating agencies, investment banks and other involved in the issuance and marketing of Commonwealth bonds. Virginia has produced a GAAP-basis report that has received an unmodified audit opinion every year since 1986.
The Code of Virginia establishes the basis for statewide financial reporting. Principal Code directions include the following.
The Comptroller shall...make a preliminary annual report to the Governor on or before August 15...(and)...a final report on or before December 15...the final report shall be prepared, insofar as practical, in conformance with generally accepted accounting principles. (§2.2-813)
DOA's Financial Reporting unit also houses the statewide fixed assets monitoring and reporting activity because the purchase of land, buildings and equipment represents a particularly important type of disbursement involving assets of relative high value and longer useful life.
Financial Reporting has several subactivities.
The Virginia Constitution requires that accounts be maintained and reported based on when cash is received and paid out. This subactivity involves ongoing reporting of cash activity in the state accounts throughout the year. Reports typically produced for the Governor, Secretary of Finance and General Assembly include monthly reports on the cash position of the Commonwealth as reconciled to the Department of the Treasury and other selected General Fund and Non-General Fund cash basis financial information. This subactivity also produces the August 15 Preliminary Report to the Comptroller that is required by law.
This subactivity produces the State Agency, Higher Education, and Component Unit Financial Statement Directives. It is through this subactivity that Financial Reporting provides guidance and assistance to State Agencies, Institutions of Higher Education, and Component units on the GAAP presentation of financial statement information.
This subactivity accounts for all major land, building and equipment assets of the Commonwealth. Also included is the accounting for certain capital leases which are reflected as assets in the Commonwealth financial statements.
This subactivity produces the Comprehensive Annual Financial Report (CAFR) of the Commonwealth which is audited by the Auditor of Public Accounts. Generally accepted accounting principles (GAAP) are promulgated by the Governmental Accounting Standards Board (GASB) and include the recognition of accrued assets and liabilities along with other non-cash accounting requirements. Planning, information gathering, and preparation of this report take approximately 6 1/2 months. During the late winter and spring, efforts within this subactivity are focused on the technical analysis necessary to incorporate new standards for GAAP, as well as Code of Virginia changes, which will become effective for the next reporting year. The volume of technical analysis increases each year.
This listing provides information regarding accounting pronouncements used during preparation of the Commonwealth's Comprehensive Annual Financial Report (CAFR). It is non-authoritative and should not be viewed as an all-inclusive source of information.
This subactivity summarizes and simplifies the presentation of information contained in the Commonwealth's Comprehensive Annual Financial Report. This type of report is often referred to as a "popular report." It is intended to better inform the public about the Commonwealth's financial condition without excessive detail or the use of technical accounting terms.