Issuing a CAFR: suggestions for facilitating the process.

• Author: Glasper, Rufus
• Position: Comprehensive annual financial report

Accountability, clear reporting and timeliness remain high priorities as cost-effective methods guide the preparation and issuance of a CAFR.

An article in the October 1992 issue of Government Finance Review discussed the value of consistently issuing a Comprehensive Annual Financial Report (CAFR) or a Component Unit Financial Report (CUFR) and participating in the Government Finance Officers Association's Certificate of Achievement for Excellence in Financial Reporting Program from a rating agency's perspective. The authors, while acknowledging the budget-sensitive conditions facing most finance departments, cited the evidence of this value:

* useful information to the credit analyst;

* particularly key trend data and economic base, desirable financial statements and disclosures that are consistently prepared;

* confidence in a government's management and financial reports due to consistent receipt of the Certificate of Achievement; and

* tools to keep in touch with the marketplace and keep it up to date.

They promoted preparation of the CAFR/CUFR and the consistent receipt of the Certificate of Achievement as essential priorities, despite budgeting constraints.

The following article continues that dialogue by offering suggestions on how a government can issue a CAFR more easily, quickly and less expensively. This advice applies to a government that is considering issuing a CAFR for the first time, as well as a government currently issuing a CAFR that may discontinue this practice. The authors believe that a government cannot afford not to issue a CAFR.

Given that accountability and clear reporting are to remain high priorities, it is appropriate to explore more cost-effective methods of meeting these performance standards. For those government finance officials still considering not moving forward, and for those who seek to minimize their related costs, this article's suggestions for preparing and publishing a CAFR may provide a more cost-effective result without sacrificing this important marketplace tool or a government's reception and clout in that marketplace.

Getting Started

Planning and preparing to issue a CAFR begins at least six months in advance of the fiscal year end. Assigning a project coordinator is the first step to ensuring a smooth flow of the process. It is critical that top management emphasize to all concerned staff the importance of the project and the authority of the coordinator over the project. By so doing, all staff will understand the priority of the project and the...