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Government Overview Summary Government Overview Summary A Comp

A Comprehensive Annual Financial Report (CAFR) is a set of financial statements for a state, municipality, or other governmental entity that comply with the Governmental Accounting Standards Board (2020). The CAFR is required to be audited, utilizing recognized government standards. The complete CAFR consists of an introductory, a financial, and a statistical section. The introductory section provides a breakdown of important information and acts as a guide for the auditor. Next, the financial section provides basic fiscal statements, including additional information provided to the auditor and the auditors’ assessment.

Finally, the statistical section discloses any fiscal and/or statistical information, including current trends designed to educate the reader.

New York City, while often referred to as New York, is considered the most densely populated area within the United States. Approximately 20 million people currently live in New York City’s metropolitan area and approximately 23 million in the surrounding area. By definition, New York City is considered a megacity with vast influence seemingly perpetuated throughout the world. New York City is the cultural, financial, and media capital of the world, significantly influencing commerce, entertainment, research, technology, education, politics, tourism, art, fashion, and sports (Ganti, 2020).

New York is often considered the economic capital of the world because it has the most influential market in the country since companies all around the nation and the world have established their headquarters or major centers of operations in the city. New York is home to many large office complexes and facilities employing millions of workers with most of them being employees of companies working under the top five industries the city has. Finance is the largest industry in New York, undoubtedly making New York the finance capital of the world. Their finance industry generates over one trillion dollars in value every year, most of which comes from the NASDAQ stock market, New York Exchange, and the banking industries (Vestal, 2018).

Trade is the second largest industry in New York. Numerous foreign companies such as Germany’s Deutsche Bank, Japan’s Mizuho Bank, and China’s Bank of China all have offices in the city and stakes measuring in the hundreds of billions (Vestal, 2018). Everyone interested in international business finds their way to New York searching for the opportunity to be employed by one of their high-end trade companies.

Health care is another major industry in New York, with almost a third of all hospitals in New York located in New York City, employing over half a million city residents. There are over 60,000 physicians and approximately 130 Nobel Laureates in the medical institutions, putting New York second only to Boston in medical institutions receiving a very generous amount of funding from the National Institutes of Health (Vestal, 2018).

Unsurprisingly, New York’s real estate consists of some of the most expensive square-foot pricing in the world, with a large portion of the real estate market being dedicated to high-end price brackets (Vestal, 2018). Their property valuation reaches over one trillion dollars, making real estate one of the top industries in New York.

Mass media takes fifth place on the list of top industries in New York. Some of the best television, radio, and online publications such as HBO, Bloomberg LP, and NBC are all based in the city. New York City is considered to be a media capital, as 7% of TV watching households are located there, making it a source of talent and a business (Vestal, 2018).

Budget calendars for each fiscal year are established by the city council of New York. The Fiscal Year 2020 (FY20) Executive Expense, Revenue, and Capital Budget report contains revenues, capital budget, financial plans, personal income tax, other taxes, expenditures, a citywide savings program, fiscal executive ten-year capital strategy, and financing and debt services. The report mentions that the Council evaluated New York’s resource levels, funding gaps, operational deficiencies, and efficiencies and identified risks in their financial plan and budget shortfalls.

The budget plan resulted in addressing small fractions of the proposals from the administration and concluded to finance these proposals through a combination of additional revenues and budget reductions. This approach covered the cost of both budget gaps and council priorities while maintaining a balanced budget. It resulted in an increase in personal income tax revenue, miscellaneous revenues, and citywide savings revenue, impacting around $340 million in new resources identified for FY20 (McKinney, 2019).

Further identified revenues in FY19 resulted in carrying over $347 million into FY20, balancing both years. The citywide savings program and the Ten-Year Capital Strategy will help maintain a balanced budget and propose funding for the following year. The Governmental Accounting Standards Board outlines the criteria that municipalities must follow. The sections of the Comprehensive Annual Financial Report are to be audited to ensure compliance with these standards, covering introductory, statistical, and financial portions. The exploration of New York City shows it is one of the largest trading cities globally, home to numerous financial entities. This examination highlights areas for improvement in profitability through budget plan alterations to ensure further success and recover losses within the fiscal year.

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The Comprehensive Annual Financial Report (CAFR) serves as an essential tool for transparency and accountability in governmental financial reporting. By requiring municipalities and states to adhere to standards set by the Governmental Accounting Standards Board (GASB), the CAFR encapsulates a wealth of information regarding financial performance and position, enabling stakeholders to make informed decisions. The three primary sections of a CAFR—the introductory, financial, and statistical—provide valuable insights into a government’s financial health and operational efficiency.

Understanding the demographics of New York City is integral to comprehending its financial framework and economic vitality. As the most densely populated city in the United States, with approximately 20 million inhabitants in its metropolitan area, New York City exemplifies the demographic challenges and opportunities that affect economic policies. Its status as a megacity amplifies its influence globally, encompassing not only financial markets but also sectors like education, technology, and healthcare (Ganti, 2020).

New York’s pivotal role as a financial capital stems from its diverse economic landscape. The finance sector alone generates over one trillion dollars annually, significantly influenced by major stock exchanges and banking institutions headquartered there. The collaboration of influential banks such as Bank of New York Mellon and Bank of America reflects the concentration of financial power within the city, further attracting global talent and investments (Vestal, 2018).

Trade also plays a substantial role in New York’s economy, establishing the city as a nexus for international business. The presence of foreign entities like Deutsche Bank and Mizuho Bank signifies the strategic importance of New York in global transactions. The city acts as a magnet for professionals seeking careers in high-stakes trading firms, reinforcing its economic standing.

Healthcare represents another pillar of New York’s economy, with the presence of numerous hospitals and medical training institutions that employ a significant portion of the city’s residents. The research contributions of its medical community underscore a commitment to innovation and quality care, securing substantial funding from federal initiatives (Vestal, 2018).

Furthermore, real estate valuation trends in New York reveal an ongoing demand for high-value properties. This sector confirms the city’s allure, not only for residents and investors but also for businesses seeking to expand in a thriving urban environment. The continued construction and development reflect a robust real estate market catering to upscale demographics (Vestal, 2018).

Mass media’s prominence cements New York City’s cultural significance as well. The geographical concentration of major media houses fosters an ecosystem ripe for creativity and talent acquisition. Holding a substantial percentage of television viewing households amplifies its role as a central hub in media production and distribution (Vestal, 2018).

Managing budgets effectively influences New York City’s economic trajectory. The FY20 Executive Budget report outlined comprehensive strategies to mitigate budget shortfalls via increased revenues and prudent reductions in expenditures (McKinney, 2019). By anticipating resource levels and evaluating financial health, the city council can maintain fiscal responsibility and project sustainability into the next financial year.

In conclusion, the Comprehensive Annual Financial Report is essential in assessing New York City’s financial landscape. The interconnectedness of its major industries, complemented by strategic budget management, showcases the city’s resilience in navigating economic challenges. Enhanced transparency through the CAFR not only promotes accountability but also lays the groundwork for sustained growth and innovation in the ramifying sectors of New York’s economy.

References

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