Comprehensive Financial Report on Greenwich, Connecticut

Student’s Name
Professor
Course
Date
Greenwich, CT
A Comprehensive Annual Financial Report, CAFR, is a presentation, in the prescribed manner, of all the financial statements of a municipality (city or town), state, or any other government reporting entity in the USA. This report, prepared at the end of a fiscal year, is divided into three main sections thus; Introduction, Financial, and Statistical sections. The introductory section includes, but is not limited to the Letter of transmittal, and a highlight of the financial statements. The Financial section presents the reporting entity’s financial statements, their supplementary information, and schedules to the financial statements, whereas the Statistical section contains the demographics (number of employees, population, etc.), and financial ratios, among other vital information. From its latest CAFR, for the year ended 30 June 2020, we shall evaluate the Town of Greenwich’s Statement of Net Position, and General Fund’s Balance Sheet, and Statement of Revenues, Expenditures, and Changes in Fund Balances, to discuss its economic condition, comparison to budget, revenue sources, debt capacity, and pension obligation. We shall further review White Plains’ CAFR and make comparisons with Greenwich’s CAFR.
PROFILE OF THE TOWN
The town of Greenwich is located in the state of Connecticut, USA. Settled in 1640, the town is governed by its charter in addition to the State of Connecticut laws. With a population estimate of 62,840 according to the latest census (2019), the town covers an area of 50.6 square miles. The town’s financial affairs are administered by the Board of Estimates and Taxation, BET, whose membership is twelve (12). The Town of Greenwich, herein referred to as the Town, is responsible for the general administration of the town of Greenwich, provision of health services, education and library services, zoning and planning of the town, provision, and maintenance of recreational facilities, public libraries, and building and maintenance of public infrastructure (Greenwich, Connecticut ii). The Town’s government activities are financed by federal and state funds, taxes charged on property, and service charges.
Economic conditions. Out of its total revenue, property taxes accounted for 76.7%. The tax base is mainly residential property. The property taxes did not contract even during the period of the COVID-19 pandemic economic downturn. The Town has noted that these taxes are not mostly affected by volatile economic conditions, and whereas other sources of revenue like sales and income taxes contract during downturns, property taxes are not affected. Economic conditions influence most of the revenue from taxes (Granof et al. 104). Subsequently, they have an impressive collection rate of above 99% on these taxes. This revenue type is said to experience slow growth in stable economic times but also remains resilient during economic hardships, unlike the other revenue sources that contract during such times. This can be confirmed by the fact that after the expiry of the Executive Order on tax deferment issued by the State, the rate of collections was similar in comparison to the previous year. However, there are ...