What does CAFR stand for in governmental financial reporting?

The term CAFR stands for Comprehensive Annual Financial Report. This report is a critical component of governmental financial reporting as it provides a detailed and thorough overview of a government's financial position. The CAFR is intended to meet the needs of various stakeholders, including citizens, public officials, and investors, by ensuring transparency and accountability in financial reporting.

A Comprehensive Annual Financial Report typically includes an introductory section, financial statements, notes to the financial statements, and supplementary information. It not only provides a snapshot of the government's financial health but also offers extensive information on revenue sources, expenditures, and the overall fiscal standing over the past fiscal year. By adhering to specific accounting standards, the CAFR aims to enhance comparability and consistency in financial reporting across different governmental entities.

The accuracy and comprehensiveness of the CAFR are essential, as it helps stakeholders make informed decisions regarding the allocation of resources and assessing the government's financial management. This clarity and level of detail set it apart from other types of reports that may not cover the same breadth of information.