An Annual Comprehensive Financial Report (ACFR), formerly called a Comprehensive Annual Financial Report (CAFR))[1] is a set of U.S. government financial statements comprising the financial report of a state, municipal or other governmental entity that complies with the accounting requirements promulgated by the Governmental Accounting Standards Board (GASB).
The name of the report was changed in 2021 when the Government Finance Officers Association determined that, when spoken, the acronym for "Comprehensive Annual Financial Report" sounded like an offensive slur used in South Africa (see Kaffir) and decided to change the report's name.[2]
GASB provides standards for the content of an ACFR in its annually updated publication Codification of Governmental Accounting and Financial Reporting Standards.[3] The U.S. Federal Government adheres to standards determined by the Federal Accounting Standards Advisory Board (FASAB).
An ACFR is compiled by a state, municipal or other governmental accounting staff and audited by an external American Institute of Certified Public Accountants (AICPA) certified accounting firm utilizing GASB requirements. It is composed of three sections: Introductory, Financial and Statistical.[4] It combines the financial information of fund accounting and Enterprise Authorities accounting.
Further reading
edit- Jonathan Walters, Are Comprehensive Annual Financial Reports Useless?, Governing (September 2012).
References
edit- ^ "Summary of Statement No. 98". gasb.org. Retrieved 23 June 2022.
- ^ "End the Acronym". Retrieved 17 April 2021.
- ^ Wilson, Earl (2010). Accounting for Governmental & Nonprofit Entities (15th ed.). McGraw-Hill Irwin. p. 13. ISBN 978-0073379609.
- ^ 2005 Governmental Accounting, Auditing, and Financial Reporting, p. 151