Comprehensive Annual Financial Report (CAFR/ACFR)
A city's official annual financial report, audited by independent accountants, containing detailed financial statements, statistical data, and management discussion.
How It Works
Renamed to Annual Comprehensive Financial Report (ACFR) in 2021, this document is the most complete picture of a city's financial position. It includes the balance sheet, income statement, cash flow statement, notes to the financial statements, and statistical tables showing 10-year trends. The GFOA awards a Certificate of Achievement for Excellence in Financial Reporting to cities that produce CAFRs meeting high standards. Municipal bond analysts and credit rating agencies rely heavily on these reports.
Related Terms
- Generally Accepted Accounting Principles (GAAP) — The standardized accounting rules that governments follow when preparing financial statements, as promulgated by the Governmental Accounting Standards Board (GASB).
- Governmental Accounting Standards Board (GASB) — The independent organization that sets accounting and financial reporting standards for U.S. state and local governments.
- Single Audit — A comprehensive annual audit required for governments that spend $750,000 or more in federal funds, ensuring compliance with federal grant requirements.
About This Definition
This definition is part of the CitySpend Municipal Finance Glossary — 59 terms explaining how city governments fund and manage public services. All definitions are written in plain language for taxpayers, journalists, students, and municipal bond investors.