A Comprehensive Annual Financial Report (CAFR) is a detailed presentation of a state or municipal government's financial condition and activities over the fiscal year, aligning with governmental accounting standards to ensure transparency and accountability. Its primary goal is to provide stakeholders with a comprehensive understanding of the entity's financial status and results of operations.
The Governmental Accounting Standards Board (GASB) is the organization responsible for establishing and improving accounting standards and financial reporting for U.S. state and local governments to ensure transparency and accountability. GASB's standards aim to provide useful information to investors, taxpayers, and other stakeholders, facilitating well-informed decision-making regarding government fiscal matters.
State budgeting is a complex process that involves creating a comprehensive financial plan for a state government, balancing revenue and expenditures to meet policy goals and address citizens' needs. It requires careful prioritization and negotiation among various stakeholders, including legislators, government agencies, and the public, to allocate limited resources effectively and ensure fiscal responsibility.