What is the function of the Agency Financial Report (AFR)?

The Agency Financial Report (AFR) serves the critical function of reporting on the financial status of government agencies. This report is essential for ensuring transparency and accountability within the government, as it provides a detailed overview of an agency’s financial performance and position. The AFR presents information that helps stakeholders, including Congress and taxpayers, to understand how public funds are utilized and whether agencies are meeting their financial obligations.

By including details such as financial statements, budgetary resources, and a discussion of financial management goals, the AFR allows for an assessment of an agency's fiscal policies, financial health, and compliance with laws and regulations. This information is vital for informed decision-making and enhances the trust in government financial reporting.

Other functions like operational updates, employee satisfaction, or effectiveness of public services, while important, fall outside the specific scope of the AFR, which is solely focused on the financial dimensions of agency operations and reporting.