Is there a requirement to present the original budget for budgetary comparisons in the CAFR?

The requirement to present the original budget for budgetary comparisons in the Comprehensive Annual Financial Report (CAFR) is not mandated. This is in line with the guidelines established by the Governmental Accounting Standards Board (GASB), which suggests that while presenting a comparison of budget to actual amounts is encouraged for transparency and accountability, it does not specifically require the inclusion of the original budget figures.

In practice, this allows governments a degree of flexibility in their financial reporting. They may choose to include original budgets for clarity and analysis purposes, but there is no obligation to do so. Many entities may focus instead on presenting the final amended budget against actual results, as this provides a more accurate reflection of the financial position and performance reflecting all changes made during the fiscal period.

This flexibility can help streamline the CAFR and may lead to a clearer presentation of financial results without the potential clutter of original budgetary data, which might not be as relevant for users of the financial statements.