What financial statements are required for individual proprietary fund types?

For individual proprietary fund types, the required financial statements include the statement of net position and the statement of cash flows. The statement of net position provides a snapshot of the fund's assets, liabilities, and net position at a specific point in time, showing the financial health and resources available to the fund. Meanwhile, the statement of cash flows details the inflows and outflows of cash within the fund over a period, helping stakeholders understand the cash management and operating activities.

These two financial statements are critical for assessing the performance and financial position of proprietary funds, which operate similarly to private-sector businesses. They provide transparency to users regarding how effectively a fund is managing its financial resources, generating cash, and meeting obligations.

The inclusion of these two statements is consistent with generally accepted accounting principles (GAAP) applied to proprietary funds, emphasizing the need for reporting that reflects financial performance and liquidity. Other options do not accurately align with the reporting requirements established for proprietary funds, or they suggest unnecessary statements that do not fulfill GAAP requirements.