The Basic Financial Statements

Government-wide Statements

Governments prepare government-wide financial statements that are like the basic financial statements for a non-profit or for-profit entity. Government-wide statements help users assess the finances of the government in its entirety. These government-wide statements answer key questions taxpayers ask about their government:

• Has the government's overall financial position improved or deteriorated?
  
  
• Were its current-year revenues sufficient to cover the full costs of services?
  
  
• How much did the government invest in infrastructure and other capital improvements?
  
  
• How much does it depend on user fees and other exchange-like revenues compared to general tax revenues?
  
  
• How does its financial position compare to other, similar governments?

To illustrate, let's look at the financial statements for the City of Bothell, WA. The City of Bothell, part of the Seattle metropolitan area, is in King and Snohomish counties. In 2021, its population was just under 48,920.