Briefly explain why each item listed is useful in evaluating the state's financial health. Provide the pages on which the information appears for reference.
Student responses to this requirement will differ as they select different items. A sample solution is furnished below.
The above statement provides an overview of the State's financial health based on information contained in the CAFR.
The condensed Statement of Activities (page 20) provides a summary of changes in net position from 2016 to 2017. Illinois' net revenue increased by 3.3 percent from 2016 to 2017 whereas total expenses increased by 8.6 percent over the same period. This reduced the State's net position by $10.1 billion, from −$131.6 billion to −$141.7 billion, which is indicative of a deterioration in the state's financial condition.
The Statement of Activities on page 34 reports gross expenses of $75.2 billion for total governmental activities in 2017 and provides its components....
