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Financial Accounting for Local and State School Systems: 2009 Edition
NCES 2009-325
June 2009

Exhibit 7.  Contents of a Comprehensive Annual Financial Report (CAFR)

Contents of the CAFR


Table of Contents
Letter of Transmittal
Government Finance Officers Association (GFOA) Certificate of Achievement
Organization Chart
Principal Officials
Other Material Deemed Appropriate by Management (if applicable)


Auditor's Report
Management's Discussion & Analysis
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Assets
Statement of Activities
Fund Financial Statements
Governmental Funds
Balance Sheet
Statement of Revenues, Expenditures, and Changes in Fund Balances
Reconciliation to Government-Wide Statements
Proprietary Funds
Statement of Net Assets
Statement of Revenues, Expenses, and Changes in Net Assets
Reconciliation to Government-Wide Statements (if applicable)
Statement of Cash Flows (using the direct method)
Fiduciary Funds (and similar component units)
Statement of Fiduciary Net Assets
Statement of Changes in Fiduciary Net Assets
Discretely Presented Component Units
Fund Financial Statements as Required Supplementary Information (RSI) (if component unit does not issue separate financial statements)

Notes to Financial Statements

General Disclosure Requirements (Similar to Notes to Financial Statements per the pre-Statement 34 reporting model as applicable and except as indicated below)

  • Cash and investment disclosures as modified by Statement 40
  • Capital asset impairment disclosures (if applicable) as modified by Statement 42
  • Other postemployment benefit (OPEB) disclosures (if applicable) as modified by Statements 43 and 45
  • Net assets restricted by enabling legislation (if applicable) as modified by Statement 46

Additional Disclosures in Summary of Significant Accounting Policies (Paragraph 115 of Statement 34)

  • Definition of operating and nonoperating revenues
  • Description of government-wide financial statements, including measurement focus and basis of accounting used
  • Government's policy for applying restricted and unrestricted resources
  • Description of types of transactions included in program revenues, policies for allocating indirect expenses to functions, and elimination of internal activity in the statement of activities
  • Description of modified approach, if applicable
  • Policy for asset capitalization and estimation of useful lives
  • Statement 20 policy for proprietary funds and government-wide activities

Additional Disclosures in Summary of Significant Accounting Policies (required by Statement 38)

  • Activities accounted for in major funds, internal service, and fiduciary fund types columns
  • Length of time used to define "available" for revenue recognition
  • Required disclosures about capital assets (paragraphs 116–120 of Statement 34)
    • Separately disclosed for governmental and business-type activities: Beginning and ending balances and acquisitions and dispositions for the year for each major class of capital asset and the related accumulated depreciation reported

Required Disclosures on Noncapitalized Assets (Paragraph 118 of Statement 34)

  • Historical collections that are not capitalized should be described and reasons for not capitalizing should be provided

Required Disclosures on Long-Term Liabilities (Paragraphs 116–120 of Statement 34)

  • Beginning and ending balances and increases and decreases for the year for each major long-term liability
  • Additional disclosure is required for portion of items due within 1 year
  • Information on governmental funds that have liquidated the long-term operating liabilities in the past

Disclosures for Donor-Restricted Endowments (Paragraph 121 of Statement 34)

    Amounts of net appreciation on investment available for authorization for expenditure
    • How the amounts are reported in net assets
    • State law relating to ability to spend net appreciation

    Policy for Authorizing and Spending Investment Income

Segment Reporting (Paragraph 122 of Statement 34)

  • Provision of condensed financial statements in the notes:
    • Types of goods or services provided by the segment
    • Condensed statement of net assets
    • Condensed statement of revenues, expenses, and changes in net assets
    • Condensed statement of cash flows

Violations and Actions Taken Regarding Finance-Related Legal or Contractual Provisions (Statement 38)

  • Variable-rate debt service on debt and lease obligations
  • Short-term debt activity
  • Disaggregation of receivable/payable balances
  • Interfund balances and transfers

Required Supplementary Information (RSI) Other Than Management's Discussion and Analysis (MD&A)

    Budgetary Comparison Schedules (Paragraphs 130 and 131 of Statement 34; see following pages)

    Original and final appropriated budget

    • Actual amounts (budgetary basis)
    • Column to report the variance between the final budget and actual amounts is encouraged, a column to report the variance between the original and final budgets is allowed

    Combining and Individual Fund Statements
    Combining statements are limited to nonmajor funds and are not required under Statement 34

STATISTICAL Section (as modified by Statement 44)

The statistical section is divided into five categories of information, as follows:

  • Financial Trends Information
  • Revenue Capacity Information
  • Debt Capacity Information
  • Demographic and Economic Information
  • Operating Information

The following statistical tables should be included within each of these information categories in the CAFR unless clearly inapplicable in the circumstances. Also, unless otherwise noted, 10 years of data should be included for every table.

Financial Trends Information

  • Information about net assets
  • Information about changes in net assets
  • Information about governmental funds

Revenue Capacity Information

  • Information about revenue base
  • Information about revenue rates
  • Information about principal revenue payers (current and previous 9 years)
  • Information about property tax levies and collections

Debt Capacity Information

  • Information about ratios of outstanding debt
  • Information about ratios of general bonded debt
  • Information about direct and overlapping debt (current fiscal year)
  • Information about debt limitations (current-year calculation for legal debt margin; last 10 fiscal years for all other debt limitation information)
  • Information about pledged-revenue coverage

Demographic and Economic Information

  • Information about demographic and economic indicators
  • Information about principal employers (current year and period 9 years prior)

Operating Information

  • Information about government employees
  • Information about operating indicators
  • Information about capital assets