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ACFR stands for Annual Comprehensive Financial Report. An ACFR is a set of financial statements for a state, municipality or other governmental entity that comply with the accounting requirements established by the Governmental Accounting Standards Board (GASB). It must be audited by an independent auditor using generally accepted government auditing standards. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. A regular annual report typically presents only basic financial statements about the government. An ACFR, by contrast, presents a wider variety of important information intended to help the reader properly understand the basic statements. A budget is a plan for a future fiscal period, typically a year, primarily showing how tax revenue will be allocated; an ACFR contains the actual results of the prior year's financial activities. Most state and local governments are required by law to issue basic financial statements, and some, including Texas, are legally required to issue an ACFR as well. Many governments not required to issue an ACFR do so anyway because it represents a best practice in government finance.