Every governmental entity should prepare and publish, as a matter of public record, a Comprehensive Annual Financial Report (CAFR) that encompasses all funds of the primary government (including its blended component units). The CAFR should also encompass all discretely presented component units of the reporting entity. 4 © 2015 Rehmann
Full Answer
Are Cafrs 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.
Why is a CAFR important?
The foremost purpose of a CAFR is to provide financial transparency and thus, promulgate 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.
Why is CAFR now Acfr?
Until now, the name applied to those reports was the comprehensive annual financial report. The name change was prompted by GASB stakeholders raising concerns that the acronym of the prior name of the report sounds like a profoundly offensive term when spoken.
Who uses a CAFR?
State GovernmentsWhat is a Comprehensive Annual Financial Report (CAFR)? State Governments are required by GASB to release a Comprehensive Annual Financial Report, or a CAFR, each year. A CAFR can be broken down into three sections: the introductory section, the financial section, and the statistical section.
Who benefits from CAFR?
This program is most beneficial to entities that already, or soon will be, required to report financial statements in accordance with Generally Accepted Accounting Principles in order to issue debt, have a continuing disclosure requirement for audited financial statements and/or receive an audit each year.
What are the 3 main sections of the CAFR?
The Annual Comprehensive Financial Report consists of three sections: Introductory, Financial and Statistical.
When did CAFR become Acfr?
The GASB on January 12, 2021, agreed to draw up a proposal to change the name Comprehensive Annual Financial Report (CAFR) to Annual Comprehensive Financial Report (ACFR) – efforts to eliminate the chords of an offensive slur directed at Black South Africans.
What is the new name for a CAFR?
98, The Annual Comprehensive Financial Report. The Board began redeliberations on the Exposure Draft, The Annual Comprehensive Financial Report, by discussing the proposed new name, annual comprehensive financial report, and its acronym, ACFR.
What does Acfr stand for?
ACFR stands for Annual Comprehensive Financial Report . An ACFR is a set of financial statements for a state, municipality or other governmental entity that comply with the accounting requirements established by the Governmental Accounting Standards Board (GASB).
What does a CAFR consist of?
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.
What is in a CAFR report?
The Annual Comprehensive Financial Report is a thorough and detailed presentation of the state's financial condition. It reports on the state's activities and balances for each fiscal year.
Which part of the financial section of the CAFR is considered required supplementary information?
A)The CAFR has three main sections: introductory, financial, and statistical. B)Required Supplementary Information includes a Budgetary Comparison Schedule for the General Fund and all major special revenue funds that have a legally adopted annual budget (unless a statement is prepared).
What does a comprehensive annual financial report known as 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.
When was the CAFR invented?
In 1984, the FAF created the Government Accounting Standards Board, which established generally accepted accounting principles and created the CAFR.
What is government wide financial statements?
The GWFS are reported using the economic resources measurement focus and the full accrual basis of accounting. GWFS report information about the government as a whole without displaying individual funds or fund types.
What is the difference between what you see in the Acfr and what you see in a corporate report what are some reasons for the differences?
How is it different from a regular financial report or budget? A regular annual report typically presents only basic financial statements about the government. An ACFR, by contrast, presents a wider variety of important information intended to help the reader properly understand the basic statements.
What is the introductory section of the CAFR?
The introductory section must include a letter of transmittal from the state comptroller — the official responsible for presenting the CAFR — and an organizational chart among other elements . The financial section contains all official financial statements including the management discussion and analysis, statement of net position, balance sheet, combined statements and more plus notes to financial statements.
What is a CAFR checklist?
A detailed CAFR checklist is available from the Government Finance Officers Association each year, as there are usually changes to requirements or how they are presented. The checklist is lengthy but well worth using when compiling your CAFR and when reviewing it for completeness. It uses a question format to see if the entity needs each piece and if any required specifics have been followed. For example, every CAFR must be divided into introductory, financial and statistical sections.
What is the purpose of annual reports?
What Is the Purpose of Company Annual Reports? Many state and local governments are required by law to submit a comprehensive annual financial report (CAFR) at the end of every fiscal year, and many other government entities complete a CAFR voluntarily.
What is the purpose of CAFR?
The purpose of a CAFR is to be transparent about the use of taxpayers' money and to give the public a detailed accounting of all expenditures. A CAFR accomplishes this by including dozens of basic and more intricate financial reports along with notes, narratives and supporting data.
What state has Mount Rushmore?
South Dakota used a Mount Rushmore theme throughout its 2016 CAFR, with an impressive photo on the cover and inset photos of the monument from different angles. The city of Lacey, Washington used a photo of city hall on the cover of its 2017 CAFR but made it look inviting with lush, spring greenery surrounding the building.
When was the Financial Accounting Standards Board established?
The FAF created the Financial Accounting Standards Board in 1973 to set standards for corporations and nonprofit organizations. In 1984, the FAF created the Government Accounting Standards Board, which established generally accepted accounting principles and created the CAFR.
When was the Financial Accounting Foundation formed?
Eventually, it was decided that an impartial group outside of the profession should set the standards, and the Financial Accounting Foundation (FAF) was formed in 1972 .
What is CAFR in financial statements?
So, what is a CAFR? According to the GFOA, a CAFR consists of three sections: introductory, financial, and statistical. Each has benefits that the basic financial statement does not. Introductory section A key benefit to the CAFR is that the introductory section includes a letter of transmittal.
What is a transmittal letter?
This allows a government’s management to highlight accomplishments and discuss major initiatives.
What is the final section of a financial statement?
In basic financial statements, budgetary information is presented only for major funds. Statistical section The final section is the statistical section , which allows operational, economic, and historical data to be included. This provides a context for assessing a government’s economic condition. The statistical section is made up ...
How many organizations received the Certificate of Achievement for Excellence in Financial Reporting in 2016?
The Government Finance Officers Association (GFOA) reports that 4,231 organizations received the Certificate of Achievement for Excellence in Financial Reporting in 2016. That is just over 4 percent of all governments in the US.
What are the elements of the introductory section?
Other elements of the introductory section include the table of contents, organizational chart, and list of officials. Financial section The financial section contains most of what is required for basic financial statements.
Why is it important to include individual fund financial statements?
A benefit of including individual fund financial statements is that management can present more detailed budget information and comparative data, both of which make the information much more useful to people who will read the CAFR. In basic financial statements, budgetary information is presented only for major funds.
What is CAFR information?from municipalbonds.com
In the statistical section of the CAFR, there is pertinent information about the local government’s debt capacity, essentially highlighting how much debt the government can prudently afford.
What is CAFR in finance?from municipalbonds.com
As the name suggests, a Comprehensive Annual Financial Report ( CAFR) is a set of financial reports produced by local governments, states and other entities to comply with the reporting rules set by Government Accounting Standards Board ( GASB ). GASB also serves as the oversight board to ensure compliance and communicate any new updates or changes to reporting methods. In addition, an independent auditor audits the CAFR using GASB standards prior to their publication. The local and state governments produce many comprehensive documents and reports; however, the CAFR and the entity’s budget book are typically considered two of the most important documents. Where the budget is a forward-looking document that plans for the future fiscal year and shows how the revenues will be allocated, the CAFR shows the actual numbers of financial activities for the previous fiscal year. In this article, we will take a closer look at different sections of the CAFR and how investors can find information pertinent to their investments in a particular local government’s CAFR.
Why is CAFR important?from municipalbonds.com
CAFR is one of the most important documents for any local or state government to establish financial transparency and establish credibility with its creditors and oversight agencies. As seen in the case of Manassas Park, VA, the inability to produce a CAFR in a timely manner can lead to rating suspensions or downgrades – which would totally limit a government’s ability to access capital markets to fund any future projects and can have serious negative impacts on outstanding debt. For any local government debt investors, CAFR is certainly a great place to start your research on the financial standing and actual revenue and expenditure numbers.
What is the introduction section of a CAFR?from municipalbonds.com
The introduction section primarily guides a reader through the report with a table of contents for various sections and often includes a transmittal letter from the entity executive. The transmittal letter is one of the legal requirements for the CAFR that typically includes the local government’s profile, provides an economic update on the local economy, lists any major initiatives undertaken by the local government and states that financial reports are management’s responsibility.
What is debt capacity schedule?from municipalbonds.com
Debt Capacity schedules present information to help the reader assess the affordability of the local government’s current levels of outstanding debt, and the state’s ability to issue additional debt in the future.
What is CAFR in budget book?from municipalbonds.com
As mentioned above, a CAFR is a set of financial statements that presents a wide variety of information needed for readers to understand the true financial picture of a local government’s finances and how they compared to the financial data (both revenue and expenditures) projected in the budget book. There are three main section in a CAFR book: introduction, financial section and statistical section.
What is CAFR report?from accountingtools.com
As the name suggests, a Comprehensive Annual Financial Report ( CAFR) is a set of financial reports produced by local governments, states and other entities to comply with the reporting rules set by Government Accounting Standards Board ( GASB ).
What is a comprehensive annual financial report?
What is a Comprehensive Annual Financial Report and what are the benefits of preparing one? Preparing a Comprehensive Annual Financial Report allows the unit of government to participate in the Government Finance Officers Association's (GFOA's) Certificate of Achievement for Excellence in Financial Reporting program joining over 4,200 other government (about 4% of all governments in America). This program is most beneficial to entities that already, or soon will be, required to report financial statements in accordance with Generally Accepted Accounting Principles in order to issue debt, have a continuing disclosure requirement for audited financial statements and/or receive an audit each year.
What is the benefit of the financial section of the Comprehensive Annual Financial Report?
A benefit of the financial section of the Comprehensive Annual Financial Report is the opportunity for management to present expanded fund level financial statements and increased information on budgetary performance beyond what is required in a basic financial statement audit.
What is the financial section of a financial report?
The Financial Section includes the Independent Auditor’s Report, Management Discussion and Analysis (MD&A), Basic Financial Statements, Required Supplementary Information and other Supplementary Information. The MD & A is another opportunity to discuss performance but it is more restrictive than a transmittal letter and must contain specified required information. A benefit of the financial section of the Comprehensive Annual Financial Report is the opportunity for management to present expanded fund level financial statements and increased information on budgetary performance beyond what is required in a basic financial statement audit.
What are the sections of a comprehensive financial report?
A Comprehensive Annual Financial Report has three main sections: introductory, financial and statistical. The Introductory Section includes letters of transmittal that give management the opportunity to discuss what the entity has done and plans that will have an effect on the future.
What is the statistical section of financial statements?
Lastly, the Statistical Section gives context about financial trends, revenue capacity, debt capacity, demographic and economic information and operating information. This allows readers of the financial statements to assess economic condition over time.
Is Baker Tilly a municipal advisor?
Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and wholly-owned subsidiary of Baker Tilly US, LLP, an accounting firm. Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities.
What is the new debt schedule?from gasb.org
The new, broader debt schedule is a complement to the previous schedule of general bonded debt. Statement 44 clarifies that the latter schedule should include G.O. debt and all debt repaid with general resources, and not just G.O. debt as many governments were doing. Two ratios will be presented—total general bonded debt divided by estimated actual value of taxable property ( not assessed value) and population. Again, there is some flexibility to change the denominator if debt is not repaid with property tax revenues or if resident population is not relevant.
What information was reported in the GASB?from gasb.org
The information that governments were reporting in their statistical sections seemed to organize naturally into five categories—information about financial trends, revenue capacity, debt capacity, demographics and economy, and operations. Mindful of the difficulties that entities other than general purpose local governments had in applying parts of the standards, the GASB described the objectives of statistical section information and emphasized that a government, when specific requirements of Statement 44 do not seem applicable to it, should consider the overarching objective and what information could be provided to achieve it.
What is GASB statement 44?from gasb.org
This is the first of two articles describing how the information in the statistical section is changing, the new information that is being added, and the old information that may disappear.
What is the legal debt margin?from gasb.org
The schedule with the computation of the legal debt margin—the difference between a government’s outstanding debt and the total amount it is legally allowed to borrow—continues to be required . Statement 44 improves upon the schedule by giving it an historical dimension. Although the computation itself is presented only for the current year, the schedule will now also include the key information pieces in the computation for the past 10 years—the debt limit amount, the debt applicable to the limit, the legal debt margin amount, and then a ratio of either the margin or the applicable debt divided by the debt limit.
What is financial trends?from gasb.org
The financial trends information in most statistical sections was previously limited to schedules of revenues and expenditures. Some governments presented the information for their general fund, some for all governmental funds, and others for the general fund plus select other funds.
What information should be included in the statistical section of a government?from gasb.org
In general, the information in the statistical section should relate to the primary government. In other words, information about discretely presented component units —legally separate organizations for which the elected officials of the government are financially accountable, such as many public benefit corporations—typically would not be included. However, governments are required to use the same decision-making process they follow for deciding whether discretely presented component units should be included in the notes or in management’s discussion and analysis. The decision essentially boils down to the finance officer’s professional judgment as to whether information about the component unit is essential to fairly presenting information about the primary government.
What are the problems with the statistical section standards?from gasb.org
The statistical section standards also were problematic. They amounted to no more than a list of 15 schedule titles, which left many of the details regarding what to present and how to present it to the professional judgment of government finance officers. Consequently, considerable variation has developed—the information found in one government’s statistical section may be very different from what is in the next government’s statistical section. In addition, the standards were written in the context of general purpose local governments—cities, towns, villages. Other types of governments—for example, counties, states, school districts, colleges, airports—were left to determine how best to apply the standards. As a result, many schedules that did not appear relevant to them were simply not presented at all.
What is CAFR information?from municipalbonds.com
In the statistical section of the CAFR, there is pertinent information about the local government’s debt capacity, essentially highlighting how much debt the government can prudently afford.
What is CAFR in finance?from municipalbonds.com
As the name suggests, a Comprehensive Annual Financial Report ( CAFR) is a set of financial reports produced by local governments, states and other entities to comply with the reporting rules set by Government Accounting Standards Board ( GASB ). GASB also serves as the oversight board to ensure compliance and communicate any new updates or changes to reporting methods. In addition, an independent auditor audits the CAFR using GASB standards prior to their publication. The local and state governments produce many comprehensive documents and reports; however, the CAFR and the entity’s budget book are typically considered two of the most important documents. Where the budget is a forward-looking document that plans for the future fiscal year and shows how the revenues will be allocated, the CAFR shows the actual numbers of financial activities for the previous fiscal year. In this article, we will take a closer look at different sections of the CAFR and how investors can find information pertinent to their investments in a particular local government’s CAFR.
Why is CAFR important?from municipalbonds.com
CAFR is one of the most important documents for any local or state government to establish financial transparency and establish credibility with its creditors and oversight agencies. As seen in the case of Manassas Park, VA, the inability to produce a CAFR in a timely manner can lead to rating suspensions or downgrades – which would totally limit a government’s ability to access capital markets to fund any future projects and can have serious negative impacts on outstanding debt. For any local government debt investors, CAFR is certainly a great place to start your research on the financial standing and actual revenue and expenditure numbers.
What is the introduction section of a CAFR?from municipalbonds.com
The introduction section primarily guides a reader through the report with a table of contents for various sections and often includes a transmittal letter from the entity executive. The transmittal letter is one of the legal requirements for the CAFR that typically includes the local government’s profile, provides an economic update on the local economy, lists any major initiatives undertaken by the local government and states that financial reports are management’s responsibility.
What is debt capacity schedule?from municipalbonds.com
Debt Capacity schedules present information to help the reader assess the affordability of the local government’s current levels of outstanding debt, and the state’s ability to issue additional debt in the future.
What is CAFR in budget book?from municipalbonds.com
As mentioned above, a CAFR is a set of financial statements that presents a wide variety of information needed for readers to understand the true financial picture of a local government’s finances and how they compared to the financial data (both revenue and expenditures) projected in the budget book. There are three main section in a CAFR book: introduction, financial section and statistical section.
What is CAFR report?from municipalbonds.com
As the name suggests, a Comprehensive Annual Financial Report ( CAFR) is a set of financial reports produced by local governments, states and other entities to comply with the reporting rules set by Government Accounting Standards Board ( GASB ).
What is CAFR in government?
Every governmental entity should prepare and publish, as a matter of public record, a Comprehensive Annual Financial Report (CAFR) that encompasses all funds of the primary government (including its blended component units). The CAFR should also encompass all discretely presented component units of the reporting entity.
What is CAFR report?
The CAFR is the governmental entity's official annual report and should also contain introductory information, schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, and statistical data. The purpose of the reporting entity's financial statements is to report the financial position and results ...
What is the purpose of the statistical section?
The Statistical Section •The objectives of statistical section information are to provide financial statement users with additional historical perspective, context, and detail to assist in using the information in the financial statements, notes to financial statements, and required supplementary information to understand and assess a government's economic condition
What is net position?
h. A description of currently known facts, decisions, or conditions that are expected to have a significant effect on financial position (net position) or results of operations (revenues, expenses, and other changes in net position).
What should be included in a government-wide financial analysis?
The analysis should address both governmental and business-type activities as reported in the government-wide financial statements and should include reasons for significant changes from the prior year, not simply the amounts or percentages of change.
What is IPSASB accounting?
The IPSASB works to improve public sector financial reporting worldwide through the development of IPSAS, international accrual-based accounting standards, for use by governments and other public sector entities around the world.
When was NCGA Statement 1 carried over?
NCGA Statement 1 subsequently was carried over in force in 1984 by GASB Statement (GASBS) No. 1 , Authoritative Status of NCGA Pronouncements and AICPA Industry Audit Guide. It is now woven throughout GAAP and widespread in practice.
What is CAFR in GASB?
The GASB added a project this month to its agenda to consider renaming the Comprehensive Annual Financial Report (CAFR), and if so, with what name, according to a December 18, 2020 update of its technical agenda. The work would eliminate the acronym CAFR, generally pronounced KAFF-ur, which sounds like “kaffir,” a profoundly offensive term directed ...
When was the Comprehensive Annual Financial Report established?
The term Comprehensive Annual Financial Report was established in GAAP in 1979 by the National Council on Governmental Accounting (NCGA) Statement 1, Governmental Accounting and Financial Reporting Principals.
Who audits CAFR?
It must be audited by an independent auditor using generally accepted government auditing standards.
Is there any direct benefit to entities in terms of making decisions or assessing accountability?
Moreover, there would not be any direct benefit to entities in terms of making decisions or assessing accountability, “but it can be asserted that demonstrating a willingness to make the effort necessary to avoid inadvertently giving offense would be beneficial in other ways to the GASB and its stakeholders.”.
What is a CAF number?from avvo.com
The CAF number is the Central Audit File number all preparers are given so they know who you are and that you are authorized to represent others before the IRS. A CAF number is assigned to a tax practitioner when a Form 2848 or Form 8821 is filed.
How to contact PPS?from irs.gov
PPS may be reached at 866-860-4259. A PPS assistor will initiate the process to help you retrieve your CAF number once you provide your authenticating information. Expect delays for Centralized Authorization File (CAF) number authorizations.
How many digits are in a CAF number?from irs.gov
A CAF number is a unique nine-digit identification number and is assigned the first time you file a third party authorization with IRS.
What is the fax number for Mississippi?from irs.gov
Fax: (855) 772-3156. Fax: (304) 707-9785 Outside the United States (US) Hint: States west of the Mississippi should submit authorizations to OAMC; states east of the Mississippi should submit authorizations to MAMC. The exceptions are: authorizations related to taxpayers residing abroad, are submitted to PAMC, and Arkansas ...
