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The review process is very simple. It involves only two forms (schedules). These forms are shown below with explanations on how to prepare them. A computer program is not necessary but there is a spread sheet program that can be downloaded that does the computations for both of these forms. However a spreadsheet program such as Microsoft Excel, Lotus 1-2-3, StarOffice Calc, Quattro Pro , etc. is required to run the program.

A computer is not needed to conduct a review or do an economic impact analysis. All that is needed is:

   -A copy of the CAFR
   -Print this page from your browser
   -Print the two forms listed below
   -A sharp pencil
   -A calculator.

However, there is a better way. Sun Microsystems, the large computer company, has developed and available StarOffice 6.0. This is a complete office series of programs that is too large to list here. It only costs about $70. Microsoft XP Office with the same series of programs costs $479. StarOffice performs 80% of the functions that Microsoft XP Office performs. More about this is covered below.

NOTE: This page can be printed from your browser or converted to your word processor to use like a manual. In addition, the blank forms can be printed using the following pages:
   -Part A of the Review Form;
   -Part B of the Review Form;
   Economic Impact Analysis Forms:
      -State Review
      -County Review
      -City Review
      -School District - Located in County
      -School District - Located in City

Steps in conducting a review and preparing the economic impact analysis

1. Determine the accounts that are investment or holding accounts (Look at one page in the CAFR). 

2. Go to each fund/subfund section , locate the accounts in Step 1. above, total them for each subfund, and write them down as in the Exhibit A in each of the State reports provided in this site. The Exhibit A is the complete review. So a person has about 40 examples to use in the learning process. For a list of the reports .

3. Total the list of subfund potential surpluses (Step 2) to arrive at the total potential surpluses for the government.

4. Divide the result in Step 3. by the population and you have the per capita potential surpluses.

5. Take the total surplus amount to the proper economic impact form and complete the computations shown for each cell in the economic impact form. The computations are very simple.

That's it. The next step is preparing a report on the results of the review and economic impact analysis.

The Two Forms

The two forms are the Review Form containing Parts A and B and the Economic Impact Analysis Form.

The forms and parts are shown first. Below the form the explanation on completing the form is provided. To assist in understanding the entries the designation column and row will be shown as column-row. Column A, row 5 will be shown as [A-5].

Determine the Investment accounts to use in the review.

The first step is to locate the Combined Balance Sheet - All Fund Types, Account Groups and Discretely Presented Component Units. It is usually the first schedule in the Financial Section of the CAFR. It will look something like this:

Statement of Net Assets
[State or Commonwealth]
(Expressed in thousands)

In the above schedule the assets shown in red are considered investment accounts and are entered in the Part A of the Review Form below. The schedule almost always is shown on two or more pages.

Here is a partial list of the types of names that are given to cash and investment type accounts. There are more in the reports on this site:

Amounts on deposit with U.S. Treasury
Cash and cash equivalents
Cash and Investments
Cash and pooled investments
Cash and securities held in trust
Cash and temporary investments
Cash equity with Treasurer
Cash held by trustee
Cash on deposit with agents
Cash with fiscal agents
Collateral on lent securities
Dedicated Investments
Equity in pooled cash and investments
Investment in [certain fund or project]
Investments Investments held by trustee
Investments net amortization
Investments, noncurrent
Net investment in direct financing assets
Other assets
Pooled Investments with State Treasury
Securities lending cash collateral
Restricted cash and cash equivalents
Restricted investments

Part A of Review Form

The Part A is prepared so that a person will be able to use this list in reviewing each fund/subfund in Part B below.

Go to Each Fund/Subfund and record the total of the accounts in Part A.

The Combined Balance Sheet schedules for each of the major fund categories shown in Part B below look something like this: (This is for the Special Revenue Funds.)

The above shows how the potential surpluses are computed for each fund using the accounts previously decided upon. Now, we will enter these amounts on Part B of the Review Form. The major fund categories are pretty much standard in most CAFRs.

Part B of Review Form

The computations for the above are to add up all the potential surpluses in Column C. For the Per Capita amount, divide the Total Potential Surpluses by the Population. For the Family of 4 amount, multiply the Per Capita amount by 4. NOTE: The population for a county is the unincorporated population and not the total population of the county.

Fund Amounts Not Included as Potential Surpluses

Not all funds fall into the category of having surpluses. Here is a list of funds or fund-types that should be listed above but no potential surpluses should be entered in Column C. The determinate factor is the revenue source for the fund. Usually the revenue source is clearly stated in the CAFR for each fund.

-Retirement/Pension Funds - I do include 1/2 of the actuarially determined excesses but it is not necessary to include these amounts for the initial review. The explanation of how to do this a little detailed and not needed. If you want to know how, then contact cafrman@cafrman.com.

-Deferred compensation plans for employees. These are plans in which the employee contributes to his/her retirement over and above the normal employee retirement contribution.

-Any fund that is 100% supported by donations, gifts, endowments, etc. The taxpayers do not participate in these funds.

-For Colleges and Universities. All endowment and similar-type funds should not be included as potential surpluses. Sometimes these funds are combined with other college/university funds. We are interested in potential surpluses, so in these cases the total amount should not be included; however, there should be a Note that states some of these funds are potential surpluses.

-Funds in which the revenues/contributions are 100% held for another government.

However, what they usually do though is include a catch-all type fund that includes funds held for other governments, organizations, and/or other funds. We would consider this a potential surplus because it includes apples, oranges, and lemons, all in one fund.

-Funds that are required by law in which a bank, financial institution, insurance companies, etc. are required to deposit with the government a certain amount for insurance against the entity going bankrupt. These are not taxpayers' money.

-Employee health and benefit funds (not retirement) and risk management funds (unemployment compensation, liability coverage, etc.) we usually consider potential surpluses. My experience of 15 years working with State and local government financial data has shown that these funds tend to be over funded. We'll let on-site auditors determine the exact amount, if any, that should be held in these funds. It depends on the budgeting for these items.

There may be some others but they have to be covered on a case-by-case basis. So if you read the revenue source for a fund or it is not stipulated its funding or what it does, then type it up and send it to cafrman@cafrman.com and we will help you make a determination.

Economic Impact Analysis Form

The last form to prepare is the Economic Impact Analysis. Although below there are 5 forms shown, only one is required. The form used must correspond to the type of government that you are reviewing, a State, county, city, school district-located in a county, or school district-located in a city.

The instructions on preparing each form follows the form. (Note: All of the following forms assume the data presented is in thousands of dollars.)

Economic Impact Analysis - State Review

Instructions on Preparation - Economic Impact Analysis - State Review

Alternate Presentation of Economic Impact Analysis

Some people have difficulty looking at charts and tables. So it may be better to provide a narrative presentation of the economic impact analysis - benefits. Both tell essentially the same story. Something like this:

Economic Impact

The economic impact if the $[C3] [billion or million] was returned to the people is tremendous. Everyone wins. The economic impact is based on elementary economic principles that can be found in any Economics 101 textbook and are explained in summary form in the report on each government.

For [Name of government] residents:

Each resident would receive an average of $[D3] or $[E3] for a family of 4.

Salaries and wages would increase by an average of $[D5] or $[E5] for a family of 4.

Approximately [C10] jobs would be created. No more unemployment. This means that unemployment compensation fund could also be refunded in the most part to the people.

Total taxpayer benefits of $[D9] per capita or $[E9] for a family of 4.

For [name of government or locale] businesses:

Each business owner would receive the same benefits outlined above for all residents.

The State economy would grow by an additional $[C4]. This amount equals $[D4] per capita.

The amount of rebates ($60 billion) that we all received from President Bush equalled about $427 per capita. These rebates were to boost a slowing economy and start the economy growing again. With a $[D4] per capita increase in the State economy [name of government or locale] could have an economic explosion. Result is that businesses' net incomes could double, triple or more.

For the State government:

When governments lower taxes, government revenues increase. It is true. The returning of surpluses is the same as lowering taxes because in both cases the money flows from the government back to the people (the private economy).

State governments earn approximately 10 cents on every dollar of economic activity. Since the [C3] [billion or million] will generate $[C4] [billion or million] in increased economic activity, the State would earn $[C6] [billion or million] more than it is currently earning on the $[C3] [billion or million] of an estimated 5%.

This means that a year after the rebates are returned to the people, the State will again have surpluses due to the increase revenues which could (should) generate tax/revenue cuts.

For the Federal government:

The Federal government earns 20 cents on every dollar of economic activity. The Federal government would earn an additional $[C8] [billion or million] in revenues.

Economic Impact Analysis - County Review

Instructions on Preparation - Economic Impact Analysis - County Review

Alternate Presentation of Economic Impact Analysis

Economic Impact

The economic impact if the $[C3] [billion or million] was returned to the people is tremendous. Everyone wins. The economic impact is based on elementary economic principles that can be found in any Economics 101 textbook and are explained in summary form in the report for each government. 

For [Name of government] residents:

Each resident would receive an average of $[D3] or $[E3] for a family of 4.

Salaries and wages would increase by an average of $[D5] or $[E5] for a family of 4.

Approximately [C11] jobs would be created. No more unemployment. This means that unemployment compensation fund could also be refunded in the most part to the people.

Total taxpayer benefits of $[D9] per capita or $[E9] for a family of 4.

For [name of government or locale] businesses:

Each business owner would receive the same benefits outlined above for all residents.

The county economy would grow by an additional $[C4]. This amount equals $[D4] per capita.

The amount of rebates ($60 billion) that we all received from President Bush equalled about $427 per capita. These rebates were to boost a slowing economy and start the economy growing again. With a $[D4] per capita increase in the county economy, [name of county government or locale] could have an economic explosion. Result is that businesses' net incomes could double, triple or more.

For the [name of county government or locale] government:

When governments lower taxes, government revenues increase. It is true. The returning of surpluses is the same as lowering taxes because in both cases the money flows from the government back to the people (the private economy).

County governments earn approximately 8 cents on every dollar of economic activity. Since the [C3] [billion or million] will generate $[C4] [billion or million] in increased economic activity, the county would earn $[C6] [billion or million] more than it is currently earning on the $[C3] [billion or million] of an estimated 5%.

This means that a year after the rebates are returned to the people, the county will again have surpluses due to the increase revenues which could (should) generate tax/revenue cuts.

For the State government:

State governments earn approximately 10 cents on every dollar of economic activity. Since the [C3] [billion or million] will generate $[C4] [billion or million] in increased economic activity, the State would earn $[C7] [billion or million]

For the Federal government:

The Federal government earns 20 cents on every dollar of economic activity. The Federal government would earn an additional $[C8] [billion or million] in revenues.

Economic Impact Analysis - City Review

Instructions on Preparation - Economic Impact Analysis - City Review

Alternate Presentation of Economic Impact Analysis

Economic Impact

The economic impact if the $[C3] [billion or million] was returned to the people is tremendous. Everyone wins. The economic impact is based on elementary economic principles that can be found in any Economics 101 textbook and are explained in summary form in the report for each government.

For [Name of government] residents:

Each resident would receive an average of $[D3] or $[E3] for a family of 4.

Salaries and wages would increase by an average of $[D5] or $[E5] for a family of 4.

Approximately [C11] jobs would be created. No more unemployment. This means that unemployment compensation fund could also be refunded in the most part to the people.

Total taxpayer benefits of $[D9] per capita or $[E9] for a family of 4.

For [name of government or locale] businesses:

Each business owner would receive the same benefits outlined above for all residents.

The city economy would grow by an additional $[C4]. This amount equals $[D4] per capita.

The amount of rebates ($60 billion) that we all received from President Bush equalled about $427 per capita. These rebates were to boost a slowing economy and start the economy growing again. With a $[D4] per capita increase in the city economy, [name of government or locale] could have an economic explosion. Result is that businesses' net incomes could double, triple or more.

For the [name of city government or locale] government:

When governments lower taxes, government revenues increase. It is true. The returning of surpluses is the same as lowering taxes because in both cases the money flows from the government back to the people (the private economy).

City governments earn approximately 8 cents on every dollar of economic activity. Since the [C3] [billion or million] will generate $[C4] [billion or million] in increased economic activity, the city would earn $[C6] [billion or million] more than it is currently earning on the $[C3] [billion or million] of an estimated 5%.

This means that a year after the rebates are returned to the people, the city will again have surpluses due to the increase revenues which could (should) generate tax/revenue cuts.

For the State government:

State governments earn approximately 10 cents on every dollar of economic activity. Since the [C3] [billion or million] will generate $[C4] [billion or million] in increased economic activity, the State would earn $[C7] [billion or million]

For the Federal government:

The Federal government earns 20 cents on every dollar of economic activity. The Federal government would earn an additional $[C8] [billion or million] in revenues.

Economic Impact Analysis - School District Review - Located in County

Instructions on Preparation - Economic Impact Analysis - School District - Located in County

Alternate Presentation of Economic Impact Analysis

Economic Impact

The economic impact if the $[C3] [billion or million] was returned to the people is tremendous. Everyone wins. The economic impact is based on elementary economic principles that can be found in any Economics 101 textbook and are explained in summary form in the report for each government.

For [Name of school District] Residents:

Each resident would receive an average of $[D3] or $[E3] for a family of 4.

Salaries and wages would increase by an average of $[D5] or $[E5] for a family of 4.

Approximately [C11] jobs would be created. No more unemployment. This means that unemployment compensation fund could also be refunded in the most part to the people.

Total taxpayer benefits of $[D9] per capita or $[E9] for a family of 4.

For [name of government or locale] businesses:

Each business owner would receive the same benefits outlined above for all residents.

The county economy would grow by an additional $[C4]. This amount equals $[D4] per capita.

The amount of rebates ($60 billion) that we all received from President Bush equalled about $427 per capita. These rebates were to boost a slowing economy and start the economy growing again. With a $[D4] per capita increase in the county economy businesses' net incomes could double, triple or more.

For the [name of county government or locale] government:

When governments lower taxes, government revenues increase. It is true. The returning of surpluses is the same as lowering taxes because in both cases the money flows from the government back to the people (the private economy).

County governments earn approximately 8 cents on every dollar of economic activity. Since the [C3] [billion or million] will generate $[C4] [billion or million] in increased economic activity, the county would earn $[C6] [billion or million] more than it is currently earning on the $[C3] [billion or million] of an estimated 5%.

This means that a year after the rebates are returned to the people, the school district will again have surpluses due to the increase revenues which could (should) generate tax/revenue cuts.

For the State government:

State governments earn approximately 10 cents on every dollar of economic activity. Since the [C3] [billion or million] will generate $[C4] [billion or million] in increased economic activity, the State would earn $[C7] [billion or million]

For the Federal government:

The Federal government earns 20 cents on every dollar of economic activity. The Federal government would earn an additional $[C8] [billion or million] in revenues.

Economic Impact Analysis - School District Review - Located in City

Instructions on Preparation - Economic Impact Analysis - School District - Located in City

Alternate Presentation of Economic Impact Analysis

Economic Impact

The economic impact if the $[C3] [billion or million] was returned to the people is tremendous. Everyone wins. The economic impact is based on elementary economic principles that can be found in any Economics 101 textbook and are explained in summary form in the report for each government.

For [Name of government] residents:

Each resident would receive an average of $[D3] or $[E3] for a family of 4.

Salaries and wages would increase by an average of $[D5] or $[E5] for a family of 4.

Approximately [C11] jobs would be created. No more unemployment. This means that unemployment compensation fund could also be refunded in the most part to the people.

Total taxpayer benefits of $[D9] per capita or $[E9] for a family of 4.

For [name of school distinct or locale] businesses:

Each business owner would receive the same benefits outlined above for all residents.

The city economy would grow by an additional $[C4]. This amount equals $[D4] per capita.

The amount of rebates ($60 billion) that we all received from President Bush equalled about $427 per capita. These rebates were to boost a slowing economy and start the economy growing again. With a $[D4] per capita increase in the city economy, businesses' net incomes could double, triple or more.

For the [school district or locale] government:

When governments lower taxes, government revenues increase. It is true. The returning of surpluses is the same as lowering taxes because in both cases the money flows from the government back to the people (the private economy).

School districts earn approximately 8 cents on every dollar of economic activity. Since the [C3] [billion or million] will generate $[C4] [billion or million] in increased economic activity, the school district would earn $[C6] [billion or million] more than it is currently earning on the $[C3] [billion or million] of an estimated 5%.

This means that a year after the rebates are returned to the people, the school district will again have surpluses due to the increase revenues which could (should) generate tax/revenue cuts.

For the State government:

State governments earn approximately 10 cents on every dollar of economic activity. Since the [C3] [billion or million] will generate $[C4] [billion or million] in increased economic activity, the State would earn $[C7] [billion or million]

For the Federal government:

The Federal government earns 20 cents on every dollar of economic activity. The Federal government would earn an additional $[C8] [billion or million] in revenues.

That's it, 2 pieces of paper (forms) and you have conducted a review and prepared an economic impact analysis of a government's/school district's CAFR. Look at the reviews on this site. With these two items you are ready to prepare a report and start your campaign.

The StarOffice 6.0 Package

As stated in the Introduction, there now is a very inexpensive and very comprehensive computer package that will do everything needed to:

1. Conduct a review as outlined above using a very simple spreadsheet program instead of writing down everything with a pencil.

2. A calculator is not necessary because a few formulas as listed above can be entered and the computer will do the computations

3. The schedules can be saved as .html code for a web site or as attachments to emails or included in an email.

4. The word processor can prepare web pages for inclusion on web sites, as attachments to emails and/or included in emails. Also, the spreadsheets can be included in the web page data formats to enhance the presentation. Images, pictures and graphics can also be included.

5. It has a database program for email lists, address lists, home inventory and a host of other functions that are already set up in templates. It has some features that Microsoft XP Office does not have.

6. Much more that cannot be covered here. It can handle almost all of Microsoft XP Office files, edit them and convert them back to Microsoft XP Office format. If someone you now has Microsoft XP Office at $479 and you have StarOffice 6.0 at approximately $70, you can communicate and exchange files just like the big boys.

The reason I am telling you about this program is that I am selfish. I have the program and use it, but the main reason is that I want you to review your governments CAFR and do something about it. If you have the tools necessary to conduct a review, prepare a report, and do something about the surpluses, it is more likely that you will do something. That is what I want.

To learn more about StarOffice 6.0 go here: http://www.sun.com/software/star/staroffice/6.0/