The Financial Highlights Report, also known as the Popular Annual Financial Report or PAFR, summarizes basic financial information about the State of Minnesota. You can find detailed information in the state's Comprehensive Annual Financial Report (CAFR) at www.mn.gov/mmb/accounting/reports.
The CAFR is prepared in accordance with Generally Accepted Accounting Principles (GAAP) and is independently audited by the Minnesota Office of the Legislative Auditor. In contrast, this report is unaudited and includes only select financial information. It is presented on a non-GAAP basis, excludes fiduciary fund and discretely-presented component unit information, contains condensed financial information, and does not provide all the necessary financial statements and note disclosures required by GAAP.
The Comprehensive Annual Financial Report (CAFR) includes the financial statements for the state, and the disclosures necessary to accurately present the financial condition of all state funds and the state component units for the previous fiscal year. The report has been prepared in accordance with generally accepted accounting principles (GAAP) for governmental units and has earned an unqualified audit opinion.
The Comprehensive Annual Financial Report is divided into three sections: Introductory Section; Financial Section, including the auditor's opinion and basic financial statements; and the Statistical Section, containing financial and other data for prior and current years. The notes to the Financial Statements, in the financial section, are necessary for an understanding of the information included in the statements. They include the Summary of Significant Accounting Policies and other necessary disclosure of matters relating to the financial position of the state.
The Comparison of Budget and Actual Revenues, Expenditures, and Changes in Fund Balances (i.e. Supplement to the CAFR or Legal Level of Budgetary Control (LLBC)) is required by generally accepted accounting principles (GAAP). GAAP requires budgetary reporting at the legal level of control, and this report provides the required level of detail in budgetary reporting. The purposes of this report is to demonstrate that spending by state agencies was within the authorized limits and in compliance with appropriation laws. These schedules provide a more detailed version of the budget and actual statements included in the state's CAFR.
The Financial and Compliance Report on Federally Assisted Programs (i.e. Single Audit Report) includes all federal assistance received by the state agencies determined to be a part of the State of Minnesota's primary government. This report supplements the state's CAFR and includes financial information on federal programs.