What is the purpose of a combining statement in a CAFR?

A combining statement in a Comprehensive Annual Financial Report (CAFR) serves to present aggregated financial data that incorporates information from multiple individual funds. This is critical for providing a clearer view of financial activities and resources within the organization as a whole.

The nature of combining statements allows users to understand how individual fund data comes together to represent the overall financial situation of the organization. By supporting each column with data aggregated from more than one fund, these statements facilitate a comprehensive view that is useful for internal users, such as management, as well as external stakeholders, including investors and regulatory agencies, who need to assess the overall fiscal health of the entity.

This is why the option that indicates support for aggregating data from more than one fund aligns with the primary role and function of combining statements in a CAFR. It emphasizes the significance of combining statements in ensuring transparency and accountability in financial reporting.