Factors Affecting Financial Condition. The transmittal letter from the chief financial officer to the mayor and city council of Detroit that accompanies the City of Detroit’s Comprehensive Annual Financial Report for the Year Ended June 30, 2004, includes the following:
a. Which of the environmental, organizational, and financial factors from the ICMA’s financial trend monitoring system (see Illustration 10–1) are identified in this excerpt from the City of Detroit’s letter of transmittal?
b. Take the perspective of a taxpayer and member of a citizen watchdog agency in the city. Prepare a memo to the chief financial officer of the city in which you request specific financial ratios to be calculated and presented so you can better assess the financial condition of the city. Use the transmittal letter provided to guide your choice of ratios.
c. Review the letter of transmittal in the most recent copy of the comprehensive annual financial report for the city. Is there a similar section on “Economic Considerations”? Comment on why there may be differences in presentation between two years.