What is the purpose of a CAFR?

The foremost purpose of a CAFR is to provide financial transparency and thus, promote accountability. When a city or state government issues bonds to fund public projects, CAFR provides insights into the financial functioning of the government, based on which investors can take an informed decision.

What does the acronym CAFR stand for?

comprehensive annual financial report
The term comprehensive annual financial report was established in GAAP in 1979 by National Council on Governmental Accounting (NCGA) Statement 1, Governmental Accounting and Financial Reporting Principals.

Is the CAFR required?

The statistical section is a required part of a comprehensive annual financial report (CAFR), although governments are not required to prepare a statistical section if they do not present their basic financial statements within a CAFR. These circumstances are not altered by this Statement.

What are the three sections of a CAFR?

​The Annual Comprehensive Financial Report consists of three sections: Introductory, Financial and Statistical.

What is CAFR called now?

comprehensive annual financial report
Norwalk, CT, April 13, 2021—The Governmental Accounting Standards Board (GASB) today proposed to change the “comprehensive annual financial report” to the “annual comprehensive financial report.”

What is wrong with the acronym CAFR?

It is a term that took on its derogatory meaning during Apartheid where it was used to degrade, undermine, and strip South Africans of their dignity and humanity. Additionally, the acronym has the same pronunciation as the Arabic word that means unbeliever – which is often applied in a derogatory manner.

How do you write a comprehensive financial report?

How To Write An Annual Report
  1. Start off with the shareholder’s letter. …
  2. Add a general description of the industry. …
  3. Include audited statements of income. …
  4. State your financial position. …
  5. Give details about cash flow. …
  6. Provide notes to the statements for line items.

What does a comprehensive annual financial report known as the CAFR include?

The CAFR consists of three sections: Introductory, Financial and Statistical. The Introductory section orients and guides the reader through the report. The Financial section presents the entity’s basic financial statements as well as notes to the statements and the independent auditors’ report.

Why is did they change the name of CAFR?

The Governmental Accounting Standards Board has proposed changing the term “comprehensive annual financial report” to “annual comprehensive financial report” because the abbreviation sounds like a racist term in South Africa.

Can no longer use CAFR?

As per the GFOA policy statement on March 9, 2021, the Government Finance Officers Association (GFOA) has asked all industry affiliates to immediately stop using the common four-letter acronym (CAFR) most often associated with the Comprehensive Annual Financial Report.

What statements are in a CAFR?

Contents of a Comprehensive Annual Financial Report (CAFR)
…
Revenue Capacity Information
  • Information about revenue base.
  • Information about revenue rates.
  • Information about principal revenue payers (current and previous 9 years)
  • Information about property tax levies and collections.

Who uses CAFR report?

When a city or state government issues bonds to fund public projects, CAFR provides insights into the financial functioning of the government, based on which investors can take an informed decision.

What is the difference between a CAFR and a budget?

CAFR, for the unfamiliar, is essentially all financial reporting for a state, local or other governmental entity. It’s not exactly a budget, which is essentially a plan for what a state will spend in a fiscal year and how its tax revenue will be allocated.

What is the difference between what you see in the CAFR and what you see in a corporate report?

Who prepares CAFR?

The Department of the Treasury, in coordination with the Office of Management and Budget (OMB), prepares the Financial Report, which includes the financial statements for the U.S. Government.

What report is part of the financial section of a CAFR?

Financial section – includes the independent auditor’s report and contains management’s discussion and analysis, government-wide financial statements, fund financial statements, notes to the financial statements, required supplementary information, combining financial statements, and schedules.

What reports and schedules are included in the CAFR as required supplementary information?

T-F A Comprehensive Annual Financial Report (CAFR) would include an introductory section, management’s discussion and analysis, basic financial statements, required supplementary information other than MD&A, combining and individual fund statements, narrative explanations, and statistical section.

What material should be included in the introductory section of a CAFR?

The introductory section is likely to include the following information in this order: Title page. Table of contents. Letter of transmittal.

Has government ever been audited?

Some Senators Want To Change That The Department of Defense had its first independent financial audit in 2017. After three failed attempts, lawmakers are losing their patience. A new bill could impose financial penalties on the DoD.

What types of supplemental information are included in the CAFR?

Required supplementary information consists of statements, schedules, statistical data, or other information that GASB has determined is necessary to supplement, although not required to be a part of, the general purpose financial statements of a governmental entity.

Which of the following sections of the CAFR is audited?

Which of the following sections of the CAFR is/are audited? Financial section.

What is the correct order of the five major sections of CAFR?

This comprehensive annual financial report is divided into five major sections: contents, introductory, financial, supplementary, statistical, and single audit. The introductory section includes a transmittal letter, the City’s organization chart, and a list of government officials.