GAAP requires that the ACFR be accompanied by separate financial statements documenting

The Annual Comprehensive Financial Report (ACFR) includes three categories of fund financial statements:

Governmental funds

Proprietary funds (e.g., enterprise and internal service funds)

Fiduciary funds (e.g., pension trust, custodial funds)

GAAP (specifically GASB Statement No. 34) requires separate financial statements for proprietary and fiduciary funds because they use different accounting bases (full accrual) than governmental funds (modified accrual). These are included in the basic financial statements section of the ACFR.

Relevant References:

GASB Statement No. 34 – Basic Financial Statements

GASB Codification Section 2200 – Financial Reporting

GFOA Governmental Reporting Guidelines

Answer: B. fiduciary and proprietary funds