What do General-Purpose External Financial Reports (GPEFR) include at the state and local levels?

General-Purpose External Financial Reports (GPEFR) at the state and local levels are designed to provide a comprehensive overview of the financial position and activities of governmental entities. The inclusion of statements of net assets and statements of activities is a fundamental feature of these reports.

The statement of net assets presents a snapshot of the governmental entity's financial position at a specific point in time, detailing what the entity owns (assets) and what it owes (liabilities), which ultimately helps users understand the net worth or equity of the entity. The statement of activities, on the other hand, illustrates the revenues and expenses for a particular period, showing how well the government has managed its resources through various activities and programs. Together, these statements offer critical insight into the financial health and operational effectiveness of government entities, allowing stakeholders to assess fiscal accountability and the stewardship of public resources.

While financial forecasts and budgets, performance reviews, and compliance with federal regulations are essential aspects of public-sector financial management, they do not constitute the core elements of GPEFR. Instead, these reports focus primarily on the actual financial outcomes reflected in the statements, making the inclusion of net assets and activities central to their purpose.