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Glenn Hegar  ·  Texas Comptroller of Public Accounts

2013 Changes - Reporting Requirements for Annual Financial Reports of State Agencies and Universities


Changes for the 2013 Reporting Period

In response to agency requests, identification of problems and new issues raised, the Comptroller’s office made changes to the Reporting Requirements for Annual Financial Reports of State Agencies and Universities. The significant changes incorporated into the reporting requirements as of the July 12, 2013, publication date are listed below.

If you need additional information or clarification on any of the GASB statements mentioned below, you may purchase a copy of the statement from the GASB store or download the PDF version for free from GASB’s Pronouncements page.

  1. GASB 60 is effective as of fiscal 2013.

    GASB 60 addresses the issues related to service concession arrangements (SCAs) that, for the purposes of this statement, are arrangements between the transferor (a government) and an operator (governmental or nongovernmental entity) in which:

    • The transferor conveys to an operator the right and related obligation to provide services through the use of infrastructure or another public asset (a “facility”) in exchange for significant consideration
    • The operator collects and is compensated by fees from third parties

    GASB 60 also provides guidance for governments that are operators in an SCA and requires disclosures pertaining to an SCA. Generally, the provisions of the statement are required to be applied retroactively.

  2. GASB 61 is effective as of fiscal 2013.

    GASB 61:

    • Modifies certain requirements for inclusion of component units in the financial reporting entity by adding the requirement that, in addition to fiscal dependency, there would also have to be a financial benefit/burden relationship between the primary government and an outside organization.
    • Clarifies and amends the criteria in determining that an outside organization should be included as a component unit because it would be “misleading to exclude” from the primary government’s financial statements.
    • Amends the criteria for reporting blended component units.

    For more information on reporting component units in the AFR, see Component Units in the Financial Reporting Entity.

  3. GASB 62 is effective as of fiscal 2013.

    GASB 62 incorporates certain accounting and financing reporting guidance into GASB’s authoritative literature that does not contradict or conflict with GASB pronouncements and is included in the following pronouncements issued on or before Nov. 30th, 1989:

    • Financial Accounting Standards Board (FASB) Statements and Interpretations
    • Accounting Principles Board Opinions
    • Accounting Research Bulletins of the American Institute of Certified Public Accountants’ (AICPA) Committee on Accounting Procedure.

    GASB 62 also supersedes GASB 20, eliminating the election for enterprise funds and business-type activities to apply after Nov. 30, 1989, FASB statements and interpretations that do not conflict with or contradict GASB pronouncements. However, governments can apply guidance from FASB pronouncements issued after Nov. 30, 1989, that do not conflict with or contradict GASB pronouncements as “other accounting literature.” Generally, the provisions of GASB 62 are required to be applied retroactively.

  4. GASB 63 is effective as of fiscal 2013.

    GASB 63:

    • Provides financial reporting guidance for deferred outflows of resources and deferred inflows of resources.
    • Amends GASB 34 by:
      • Incorporating deferred outflows of resources and deferred inflows of resources into the definitions of the required components of the residual measure
      • Renaming the residual measure to net position (previously referred to as net assets)

    For definitions of deferred outflows of resources, deferred inflows of resources and net position, along with other elements of the financial statements, see General Accounting.

  5. The LTLN web application was revised to include the reporting of capital lease debt service requirements. The data from the Debt Services Requirement Report — Capital Leases generated from the LTLN web application can be used to create the required capital lease disclosure in Note 8. For more information, see Long-Term Liability Note (LTLN) web application.
  6. A new left navigation menu was added under the Intro tab entitled Governmental Accounting Standards Board (GASB). The GASB menu includes the following sub-left navigation menus:
    • Current GASB Pronouncements — Provides a list of current GASB statements, interpretations, technical bulletins and concepts statements effective during fiscal 2013.
    • Upcoming GASB Statements — Provides information on GASB statements that will be effective in future fiscal years, as well as any current exposure drafts, preliminary views and projects GASB is deliberating.
    • GASB Implementation Guides — Provides a list of the various implementation guides issued by GASB.

    To allow for easier understanding and digestion of information presented in the reporting requirements, references to GASB statements no longer include the full name of the statement but rather the abbreviated format of “GASB XX,” where “XX” represents the applicable GASB statement number. Each mention of a GASB statement includes a hyperlink to our Current GASB Pronouncements page. On the Current GASB Pronouncements page, we provide the complete title of each GASB statement as well as a link to the Pronouncements page on GASB’s website (where a free PDF format of the GASB statement can be downloaded) as well as a link to the GASB store (where users can order/purchase individual bound hard copies of GASB statements).

  7. A new left navigation menu under the General Accounting tab entitled The Financial Reporting Entity provides more detailed information about how outside organizations must be evaluated to determine if they should be included in an agency’s AFR and how they are included. The Financial Reporting Entity menu includes the following sub-left navigation menus:
    • Component Units
    • Related Organizations
    • Joint Ventures
    • Jointly Governed Organizations
    • Related Parties
    • Reporting Equity Interest in Legally Separate Organizations
  8. A new page titled Prepaid Items was added to provide information on the proper reporting of prepaid items using the consumption method, similar to how inventories are reported.
  9. The Governmental Funds page in Fund Balance/Net Position was updated to provide additional clarification on how to properly allocate fund balance in compliance with GASB 54. Fund balance allocation examples were also added to illustrate proper fund balance allocations in deficit fund balance situations and when the use of the unassigned fund balance GL is not allowed.
  10. Distinguishing Characteristics of agency funds (FT09) and Common USAS Entries for Agency Funds were revised to more clearly describe the different uses of agency funds and how to properly report balances in agency funds at fiscal year-end.
  11. The Determining Shared Cash Entries section of Shared Funds was updated to provide additional clarification on how controlling and non-controlling agencies should report fiscal year-end balances for the most common shared cash scenarios. The update includes the proper T-codes to use depending on the different shared cash scenarios.
  12. RTI Table 12 – Interagency Payment for Goods and Services and RTI Table 13 — Interagency Refund for Goods or Services Payment were added to provide information on which T-codes to use when processing these types of transactions using the RTI process and the general ledger impact of those T-codes.
Glenn Hegar
Texas Comptroller of Public Accounts
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