What must be included if a discretely presented component unit does not issue a separate report?

When a discretely presented component unit does not issue a separate report, it is essential to include all necessary fund data in the Comprehensive Annual Financial Report (CAFR). This inclusion ensures that the financial information of the component unit is consolidated and presented in a manner that provides a complete picture of the financial position and activities of both the primary government and its component units. By doing so, users of the financial statements can make informed decisions based on the combined financial information.

The requirement to include this data in the CAFR stems from accounting standards that aim to present a unified financial reporting framework for public entities, which enhances transparency and accountability. It's important that stakeholders have access to comprehensive financial information, including that of any discretely presented component units, to understand the overall financial health of the government entity as a whole.