The Comprehensive Annual Financial Report (CAFR) is issued annually. City management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement.
A CAFR has three major sections: introductory, financial, and statistical. The introductory section furnishes general information on the government’s structure, services, and environment. The financial section contains all basic financial statements and required supplementary information, as well as information on all individual funds and discreetly presented component units not reported separately in the basic financial statements. The statistical section provides trend data and nonfinancial data useful in interpreting the basic financial statements and is especially important for evaluating economic condition.
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to these Lee’s Summit CAFRs. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized CAFR. This report must satisfy both generally accepted accounting principles and applicable legal requirements.