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Comprehensive Annual Financial Report: City of Houston, Texas
Kirsten Morales
ACC/460
May 4, 2020
Martin Ginsburg
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Comprehensive Annual Financial Report: City of Houston, Texas
A comprehensive annual financial report (CAFR) is a detailed presentation of a state’s
financial condition where it reports on the state’s activities and balances for each fiscal year.
CAFR is presented in three sections. First, the introductory section where it includes letter of
transmittal, description of the government, and other items deemed appropriate by management.
Second, a financial section where it includes an auditor’s report by an independent public
accounting firm or by a state audit agency, a management discussion and analysis (MD&A),
basic financial statements and related notes, required supplementary information, and combining
statements and individual fund statements and schedules. Lastly, the third section is the statistical
section where it presents tables of demographic and economic data, financial trends, fiscal
capacity, and operating information of the government (Reck, Lowensohn, & Neely, 2019).
Below is the City of Houston, Texas, CAFR for the fiscal year ended June 30, 2019.
Introductory Section
What has the city included in the introductory section of its CAFR?
According to the Office of the Houston City Controller (2019), the city has included in its
introductory section information regarding the Office of the City Controller, such as activities
regarding audits by the Audit Division, management of investments and debt by the Treasury
Division, preparation of financial statements by the Financial Reporting Division, and issuing
policies to the city’s financial health. This section also includes information about the Houston
City Controller, Chris Brown, an organization chart of the Office of the City Controller, the
elected officials of the City of Houston, and an organization chart of the city government.
Further, it includes a letter of transmittal from the Houston City Controller, Chris Brown,
providing information about what it is reported in CAFR (including legal and policy
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requirements for the report), the reporting entity and its services, the history and population of
Houston, Texas, a budgetary information, the area’s economy, financial policies and planning.
The introductory section also contains a certificate of achievement for excellence in financial
reporting presented to City of Houston for its CAFR for the fiscal year ended June 30, 2018.
Does it include the items identified in the section of the text titled “Comprehensive Annual
Financial Report”?
The items included in the introductory section are the same as those identified in the text
titled “Comprehensive Annual Financial Report.” However, the title page and contents page are
not included as part of the introduction. These items are presented before the introductory
section.
Financial Section
