Which section of a CAFR is focused on detailing financial performance?

The financial section of the Comprehensive Annual Financial Report (CAFR) is dedicated to detailing the financial performance of a government entity. This section contains the primary financial statements, which provide insights into the entity’s financial position, results of operations, and cash flows. It typically includes the government-wide financial statements, fund financial statements, and notes to the financial statements, which collectively present a detailed overview of how the entity has performed financially over the reporting period.

Focusing on this section allows stakeholders, such as investors, creditors, and management, to assess the financial health and operational efficiency of the government entity. It helps in understanding not only the revenues and expenditures but also how resources have been managed and utilized, which is critical for accountability and transparency in public financial management.