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The major source for information about the financial condition of a government is the Comprehensive Annual Financial Report.
The Comprehensive Annual Financial Report is a complete set of financial statements that is published each year in accordance with state law. The report is presented in conformity with accounting principles generally accepted in the United States and is audited by a firm of licensed certified public accountants. The Comprehensive Annual Financial Report typically include financial statements, such as balance sheets, income statements, and cash flow statements.
The Comprehensive Annual Financial Report is presented in four sections: An introductory section, a financial section that contains the basic financial statements and notes preceded by a management's discussion and analysis, a statistical section, and a single audit section detailing federal and state financial assistance with external auditor's certifications and management letter.
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