Which financial compliance tool is primarily used for tracking the execution of funds?

The General Ledger serves as the main financial compliance tool for tracking the execution of funds. It acts as a comprehensive record-keeping system that documents all financial transactions within an organization. Each transaction is posted to various accounts in the ledger, allowing for tracking of income, expenses, assets, liabilities, and equity. This level of detail enables organizations to monitor their financial activities closely, ensuring compliance with regulations and providing transparency on fund management.

While the other options serve important purposes in financial reporting, they do not primarily track transactions in the same detailed manner as the General Ledger. The Annual Financial Report summarizes the financial status of an organization over the year, presenting past performance rather than ongoing fund execution. The Cash Flow Statement focuses specifically on cash inflows and outflows, providing insight into liquidity but not tracking every transaction in detail. The Balance Sheet offers a snapshot of an organization's assets, liabilities, and equity at a specific point in time, without detailing the flow of funds or transactions.