What is NOT a requirement for Proprietary Funds under GASB?

The correct choice highlights that a Statement of Activities is not a requirement for Proprietary Funds under GASB (Governmental Accounting Standards Board) guidelines. Proprietary Funds, which include Enterprise and Internal Service Funds, focus more on the financial activities of the proprietary nature of governmental operations.

For Proprietary Funds, the emphasis is on assessing the operational results through the Statement of Revenues, Expenses, and Changes in Fund Net Position, which captures how the fund’s financial performance changes over time. Additionally, the Statement of Net Position provides a snapshot of the fund's financial situation at a specific point in time, while the Statement of Cash Flows outlines the cash inflows and outflows, providing critical insights into liquidity and cash management.

In contrast, the Statement of Activities is generally utilized in governmental funds to show the overall revenues and expenses of governmental services and encompasses all governmental activities, not limited to Proprietary Funds. Thus, the absence of this statement for Proprietary Funds aligns with their focus on the financial operations similar to a business, rather than incorporating broader governmental performance metrics typically found in the Statement of Activities.