All the following are required financial statement reporting on governmental funds EXCEPT

The governmental funds (e.g., general fund, special revenue fund, capital projects fund) are reported using the modified accrual basis and current financial resources measurement focus. Required financial statements for governmental funds include:

Balance Sheet

Statement of Revenues, Expenditures, and Changes in Fund Balances

There is no requirement for a statement of cash flows for governmental funds. The statement of cash flows is only required for proprietary funds (e.g., enterprise and internal service funds) and is prepared using the direct method.

Relevant References:

GASB Statement No. 34 – Basic Financial Statements

GASB Codification Section 2200

GFOA Governmental Fund Reporting Guidelines

Answer: D. statement of cash flows