CAFR, Comprehensive Annual Financial Report is a report very similar to a proprietary organizations annual report used by government agencies. Its purpose is to report how funds are used and maintained by the agencies and includes an activity report along with many informative details regarding the agencies financials. The components of CAFR include an introductory section, financial section, and a statistical section. The introductory section consists of a letter of transmittal that introduces brief financial summary and additional general information in regards to the given governmental agency. The financial section is normally the largest and includes the main body of the report. It often includes a management discussion and an auditor’s report along with the financial statements and notes if applicable. The statistical section consists of charts, tables, demographic and various other supplemental data that pertains to the given governmental agency. A CAFR differs from a budget in that the budget takes precedence over a CAFR. The reason being, budgets summarize just about all of the decisions of effect made by the organization. “It determines which constituents give to the entity and which receive; which activities are supported and which are assessed” (Granof, 2007). The CAFR is a source of constituent concern and controversy. Government budget hearings often draw standing-room-only crowds to the legislative chambers. The budget debates of church and synagogue members are frequently marked by fervor more intense than that found in the congregants’ worship services. A government’s budget may be backed by the force of law. Government officials are ordinarily prohibited from spending more than what was budgeted. In certain cases Government officials can and have ...