Which component is NOT required in financial trend schedules of the CAFR’s statistical section?

In the context of the Comprehensive Annual Financial Report (CAFR) and its statistical section, financial trend schedules are designed to provide users with a clear and concise way to understand the fiscal trends affecting a government entity over time. These schedules typically emphasize various components that are essential for analyzing the financial position and operational performance.

The choice that is not required in financial trend schedules is reserved fund balance by fund type. This component is not typically included because financial trend schedules focus more on the overall resilience and capacity of the entity's financial health rather than specific categorizations of fund balances. These schedules usually incorporate net assets across various categories, unreserved fund balances, and debt service expenditures, as they are integral to understanding financial trends and operational effectiveness over time.

On the other hand, net assets by category, unreserved fund balance by fund type, and debt service expenditures as a percentage of total noncapital expenditures are significant elements that inform stakeholders about the liquidity, stability, and trends in the government's financial activities. Therefore, while reserved fund balances are indeed important for various reporting purposes, they do not specifically fit within the typical framework of financial trend schedules in the CAFR's statistical section.