What is a requirement for a department’s CAFR to be eligible for the Certificate Program?

The requirement that a department's Comprehensive Annual Financial Report (CAFR) must include one or more separate funds is crucial for several reasons. Firstly, including separate funds demonstrates the department's ability to manage and report on distinct financial activities, which adds transparency and accountability to the financial reporting process. This allows stakeholders to see how resources are allocated across different functions or projects within the department, reflecting a more comprehensive view of the department's financial position.

Having one or more separate funds also aligns with the generally accepted accounting principles (GAAP), which emphasize the importance of reporting on non-operating funds in addition to operating funds. This broader scope makes the financial statements more informative for users, such as government officials, investors, and the public.

In short, the inclusion of separate funds in a CAFR showcases the financial complexity and responsibility of the department, making it eligible for the Certificate Program.