Each year the Office of the State Comptroller issues a Comprehensive Annual Financial Report (CAFR), prepared in accordance with generally accepted accounting principles. Included within this report are all necessary presentations and disclosures to present fairly, in all material respects, the financial position of the state at fiscal year-end and the results of the operations of the state for the fiscal year.
It is the responsibility of the Auditors of Public Accounts to audit the records of the state in accordance with generally accepted auditing standards and express an opinion on the state’s basic financial statements which are published in the CAFR.
The federal Single Audit Act of 1984, as amended by the Single Audit Act Amendments of 1996, requires that an annual audit be performed which reviews recipient's controls over federal funds and compliance with federal program requirements.
As part of this audit, Office of Management and Budget Circular A-133 requires that the auditor determine whether the financial statements of the audited agency present fairly its financial position and the results of its financial operations in accordance with generally accepted accounting principles. Thus, the audit work performed to obtain evidence needed to issue the audit certificate included in the CAFR is also required by the Single Audit Act and becomes an integral part of the audit effort performed on federal financial assistance.