chapter 7 management s discussion and analysis md a l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Chapter 7- Management’s Discussion and Analysis (MD&A) PowerPoint Presentation
Download Presentation
Chapter 7- Management’s Discussion and Analysis (MD&A)

Loading in 2 Seconds...

play fullscreen
1 / 9

Chapter 7- Management’s Discussion and Analysis (MD&A) - PowerPoint PPT Presentation


  • 407 Views
  • Uploaded on

Chapter 7- Management’s Discussion and Analysis (MD&A) . Presented by Steve DeVetter Partner – KPMG LLP. MD&A - What is it?. Required supplementary information (RSI) which precedes the audited financial statements Management’s opportunity to communicate key financial activities of the Campus

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Chapter 7- Management’s Discussion and Analysis (MD&A)' - yelena


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
chapter 7 management s discussion and analysis md a

Chapter 7- Management’s Discussion and Analysis (MD&A)

Presented by Steve DeVetter

Partner – KPMG LLP

md a what is it
MD&A - What is it?
  • Required supplementary information (RSI) which precedes the audited financial statements
  • Management’s opportunity to communicate key financial activities of the Campus
  • MD&A requirements
    • Minimum and maximum requirements
    • General rather than specific
    • See “Guide to Preparation of MD&A” (Chapter 7, Appendix 1) for discussion of required elements (GASB 34, par. 11)
md a overview
MD&A Overview
  • Discussion of the basic financial statements including the relationship of the statements to each other
  • Analysis of financial activities based on currently known facts, decisions or conditions
  • Discussion of current year results in comparison with prior year, with emphasis on the current year
    • Use of charts, graphs, and tables to facilitate understanding of management’s analysis
md a overview cont d
MD&A Overview (cont’d.)
  • Focus of analysis should be on the Campus as the primary reporting entity, with component units (auxiliary organizations) included if considered significant
  • Reference to the component unit’s separately issued financial statements, when appropriate
md a overview cont d5
MD&A Overview (cont’d.)
  • Presentation of condensed financial information comparing current year to prior year for each year presented
    • Overall financial position and result of operations
    • Description of significant capital assets and long-term debt activity
    • For comparative financial statements, must provide two-year comparative analysis (i.e. 2004 vs. 2003 and 2003 vs. 2002)
  • Description of currently known facts, decisions, or conditions that are expected to have a significant financial impact
preparation of md a
Preparation of MD&A
  • “Guide to Preparation of MD&A” (refer to Chapter 7, Appendix 1)
  • Starting point – comprehensive variance analysis
    • Identification of significant changes, and the reasons for significant changes, from the prior year
  • Coordination with appropriate Campus personnel to identify:
    • Underlying causes for the changes
    • Key decisions, transactions, events and conditions
    • Expected changes, based on existing Campus decisions and circumstances (i.e. known facts). Examples include:
      • Changes in enrollment
      • Campus master plan
      • Debt
      • New construction
preparation of md a cont d
Preparation of MD&A (cont’d.)
  • Completion of MD&A Checklist
    • Helps ensure all required elements have been included in the MD&A
    • Review and approval signature by appropriate level of management
  • Other resource tools
    • MD&A Resource Guide (refer to Chapter 7, Appendix 2)
    • Pro-forma financial statements (refer to Chapter 12) - one-year and comparative presentations
md a highlights of significant changes for 2004
MD&A – Highlights of Significant Changes for 2004
  • Year 3 under GASB 34
    • Presentation of comparative financial statements – Must provide “comparative” MD&A that includes:
      • Comparative financial information and related analysis for both years presented
      • Three years of financial information (2004, 2003, and 2002)
  • MD&A Checklist – to be completed by Campus and provided to KPMG audit team along with draft MD&A
  • Draft MD&A (approved by Campus management and reviewed by KPMG) must be submitted to the Chancellor’s Office by November 12, 2004