What is the purpose of the statement of cash flows?

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The purpose of the statement of cash flows is to show how cash comes in and goes out over a period, giving a clear view of the district’s liquidity. It organizes cash activity into operating activities (the cash effects of the day-to-day functions), investing activities (cash used for and received from capital assets and investments), and financing activities (cash from borrowing, debt repayments, and other financing). This report helps you see whether the district generates enough cash from operations to fund expenditures and meet obligations, or whether it relies on external financing or investing activities to cover shortfalls. It’s different from listing fixed assets, which belongs on the balance sheet, or from narrating program outcomes or projecting enrollment, which relate to asset tracking or planning rather than actual cash movement.