About Treasury • Budget and Performance
Agency Financial Report
The Agency Financial Report (AFR) summarizes an agency’s financial position and key accountability information for a fiscal year. It is designed to help the public understand how resources were managed and how the agency ensures sound financial practices.
What the AFR Usually Covers
- Financial statements: high-level statements such as costs, obligations, and assets and liabilities.
- Management discussion: narrative on major activities, results, and challenges during the year.
- Internal controls: description of control frameworks and important control-related findings.
- Audit information: summaries of audit opinions and follow-up actions when applicable.
Why It Matters
Financial reporting supports transparency and stewardship. The AFR helps explain how funds are managed, how risks are addressed, and what actions are taken to improve financial performance.
- Improves public visibility into financial operations.
- Supports accountability through documented controls and results.
- Helps identify areas for process improvement.
How It Connects to Other Documents
The AFR complements strategic planning and performance reporting. Budget and annual performance documents show planned priorities, while the AFR provides a financial stewardship view of the year’s results.