ABSTRACT
A comprehensive annual financial report (hereafter, "CAFR") is a general-purpose financial report that is comprehensive in the depth of its reporting detail, and which provides a full disclosure of the financial affairs of the reporting entity, beyond the requirements of generally accepted accounting principles (hereafter, "GAAP"), and other applicable legal and contractual requirements. Pursuant to the 2003 Codification of Governmental Accounting and Financial Reporting Standards (hereafter, "Codification"), every government "should prepare and publish a CAFR covering all funds and activities of the primary government (including its blended component units) and providing an overview of all discretely presented component units of the reporting entity."[1] A CAFR is recommended but not required under GAAP. However, the minimum requirements for fair presentation in connection with general-purpose external financial reporting are mandatory, and are specified in detail in the Codification.
