Understanding ACFR: Key Components and Future Changes in 2025

Several significant changes are going to happen on the Annual Comprehensive Financial Report (ACFR) scheduling landscape as we enter 2025. Technological progress, shifting regulatory priorities, and a greater need for openness and responsibility in financial reporting are the forces propelling these shifts. 

Let’s take a closer look at the ACFR and what it has to offer for the next year.  

What is ACFR?  

A thorough accounting document that summarizes the financial status and activities of a government organization for a fiscal year is the Annual Comprehensive Financial Report (ACFR). It sheds light on the handling and utilization of public monies and is thus an essential instrument for public accountability and openness. To ensure uniformity and comparability across various government institutions, the ACFR is prepared in accordance with the rules established by the Governmental Accounting Standards Board (GASB).  


Key Components of an ACFR

Introductory Section: This includes a letter of transmittal, organizational chart, and a list of principal officials. It provides context and background information about the entity. 

Financial Section: The core of the ACFR, this section includes: 

Independent Auditor’s Report: An external auditor’s opinion on the financial statements. 

Management’s Discussion and Analysis (MD&A): An overview of the financial activities and performance. 

Basic Financial Statements: These include the government-wide financial statements, fund financial statements, and notes to the financial statements. 

Required Supplementary Information (RSI): Additional data that provides context to the basic financial statements. 

Statistical Section: This section provides trend data and non-financial information that helps users understand the entity’s financial condition over time.  

What are ACFR Schedules? 

ACFR schedules are detailed components within the Financial Section and the Statistical Section of the ACFR. They provide granular data and supplementary information to support the overall financial statements and offer a deeper insight into various financial aspects of the entity. 

Types of ACFR Schedules

Fund Financial Statements Schedules

  • Governmental Funds: These schedules include detailed information on the general fund, special revenue funds, capital projects funds, debt service funds, and permanent funds.
  • Proprietary Funds: These schedules detail the operations of enterprise funds and internal service funds.
  • Fiduciary Funds: Information on pension (and other employee benefit) trust funds, investment trust funds, private-purpose trust funds, and agency funds.
  • Budgetary Comparison Schedules: These schedules compare the actual financial results with the legally adopted budget, highlighting variances and providing explanations for significant differences. 
  • Schedule of Expenditures of Federal Awards (SEFA): Required for entities receiving federal funds, this schedule provides details on federal grant expenditures. 
  • Pension and Other Postemployment Benefits (OPEB) Schedules: These schedules provide detailed information on the entity’s pension and OPEB obligations, funding status, and contribution history. 
  • Debt Service Schedules: Detailed information on the entity’s outstanding debt, including principal and interest payments, debt service requirements, and future debt obligations. 
  • Capital Assets and Long-Term Liabilities Schedules: These schedules provide detailed information on the entity’s capital assets, including acquisitions, disposals, and depreciation, as well as long-term liabilities such as bonds and leases. 
  • Statistical Section Schedules: These schedules include multi-year trend data on financial and non-financial indicators, such as revenue and expenditure trends, demographic and economic statistics, and operating information. 

Importance of ACFR Schedules

Transparency: They offer a transparent view of the entity’s financial activities and position, enhancing public trust. 

Decision-Making: Detailed schedules support informed decision-making by providing comprehensive data to stakeholders. 

Accountability: They help in holding the entity accountable for the use of public funds and management of resources. 

Compliance: Ensuring compliance with GASB standards and other regulatory requirements through detailed reporting. 

In summary, ACFR schedules are essential components that provide the necessary detail to understand the broader financial statements, offering transparency, accountability, and valuable insights into the financial operations of government entities. 

What to Expect from ACFR Schedules in 2025 

As we move into 2025, the landscape of the Annual Comprehensive Financial Report (ACFR) schedules is set to undergo several noteworthy changes. These changes are driven by advancements in technology, evolving regulatory requirements, and the increasing emphasis on transparency and accountability in financial reporting. Here’s a detailed look at what you can expect: 

  1. Enhanced Digital Reporting Standards

The integration of digital reporting standards such as XBRL (eXtensible Business Reporting Language) will become more pronounced. These standards facilitate the automated exchange of financial information, making it easier for stakeholders to analyze and compare financial data. Expect to see more entities adopting XBRL for their ACFR schedules to improve accuracy and efficiency in reporting. 

  1. Increased Focus on ESG Reporting

Environmental, Social, and Governance (ESG) reporting is gaining significant traction. By 2025, it’s expected that ACFR schedules will incorporate more detailed ESG disclosures. This shift is driven by investor demand for transparency on how organizations are managing sustainability risks and opportunities. Entities will need to align their ESG reporting with recognized frameworks such as the Global Reporting Initiative (GRI) and the Task Force on Climate-related Financial Disclosures (TCFD). 

  1. Real-Time Data and Analytics

Advancements in data analytics and real-time reporting will revolutionize ACFR schedules. Organizations will increasingly leverage big data and analytics to provide real-time financial information. This approach will enable more dynamic and timely decision-making processes, enhancing the relevance of financial reports. 

  1. Streamlined Compliance Processes

With the increasing complexity of regulatory requirements, compliance processes will become more streamlined through the use of automated tools and platforms. These technologies will help organizations ensure their ACFR schedules are compliant with the latest regulations, reducing the risk of errors and non-compliance. 

  1. Greater Transparency and Stakeholder Engagement

There will be a heightened focus on transparency and stakeholder engagement. ACFR schedules will likely include more comprehensive disclosures that provide insights into an entity’s financial health, strategic direction, and risk management practices. Organizations will aim to communicate their value proposition more effectively to stakeholders. 

  1. Integration of AI and Machine Learning

Artificial Intelligence (AI) and Machine Learning (ML) will play a significant role in the preparation and analysis of ACFR schedules. These technologies will help in identifying trends, anomalies, and potential risks, providing deeper insights and enhancing the overall quality of financial reporting. 


The evolution of ACFR schedules in 2025 will be marked by technological advancements, a focus on sustainability, and the pursuit of greater transparency. Organizations that embrace these changes will be better positioned to meet stakeholder expectations and navigate the complexities of modern financial reporting.





If you have any specific aspects of ACFR schedules you'd like to explore further or need assistance with, feel free to reach out. Our team at IRIS CARBON® is here to help you stay ahead of the curve.

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