How many years of trend data are typically required in the statistical section of a CAFR?

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In the statistical section of a Comprehensive Annual Financial Report (CAFR), it is standard to provide trend data that spans ten years. This requirement aims to offer a comprehensive overview of the financial performance and position of the governmental entity over a significant period, allowing users to identify trends and assess the long-term sustainability and fiscal health of the organization.

Having a decade's worth of data provides stakeholders—such as analysts, investors, and the public—with a richer context for understanding revenue patterns, expenditure trends, and other critical financial indicators. This extensive timeframe is particularly valuable for evaluating financial trends, which can inform decisions and policy planning.

Providing less than ten years of trend data, such as three or five years, would not adequately capture the longer-term trends necessary for a thorough analysis, while options like six years fall short of the industry best practices established by organizations such as the Governmental Accounting Standards Board (GASB). Thus, the inclusion of ten years of data is essential for fostering transparency, accountability, and informed decision-making.

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