What type of financial report must be filed annually by a municipality?

An Annual Financial Statement is the required report that must be filed annually by a municipality. This statement provides a comprehensive overview of the municipality's financial activities for the year, including revenues, expenditures, and overall financial position. It is crucial for transparency and accountability, allowing stakeholders such as residents, government officials, and regulatory bodies to understand the municipality's financial health and how public funds are being utilized.

The Annual Financial Statement is typically prepared in accordance with specific accounting principles and guidelines, ensuring consistency and comparability over time. This report is essential for the municipality to meet legal requirements and also serves as a key tool for effective financial planning and decision-making.

Other types of financial reports, such as Monthly Financial Reports or Quarterly Financial Summaries, may be useful for internal management and monitoring purposes, but they do not fulfill the statutory requirement for an annual report. Likewise, a Year-End Financial Review, while potentially valuable, is not the formal report mandated by law. Therefore, the Annual Financial Statement stands as the crucial document that municipalities are obligated to file every year.