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The Annual Comprehensive Financial Report (ACFR) is an extensive financial document prepared by US state and local governments. It provides a detailed overview of the

The Annual Comprehensive Financial Report (ACFR) is an extensive financial document prepared by US state and local governments. It provides a detailed overview of the governments financial activities and fiscal health for the covered year. Within the ACFR are two components: the Transmittal Letter and Managements Discussion & Analysis (MD&A). The Transmittal Letter is generally one of the first sections in the ACFR and is used to introduce the contexts of the ACFR. Within this letter one can often find a brief overview of the governments financial performance and also a statement regarding the governments financial transparency. MD&A is a comprehensive narrative section within the ACFR that provides a detailed analysis of the governments financial results for the covered period. Some contents included in this section are an overview of revenue and expenses, a discussion of the governments financial health, and a comparison to prior years financial results. Both sections of the ACFR prove to be very important, but serve different purposes given the detail the MD&A offers compared to the transmittal letter. That being said, there may be duplicative information, but the transmittal letter would be way less in depth. The transmittal letter serves more as an outline for the ACFR while the MD&A is a more extensive section going into depth on the governments financial health

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