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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Bonds

Required Schedules and Samples
Schedule 2F – Early Extinguishment and Refunding

Use schedule 2F to report early extinguishment and refunding for the current year.

  • Separate general obligation and revenue bonds into governmental activities (fund types 01, 02, 03, 04, 19), business-type activities (fund types 05, 06) and discrete component units (fund type 15).
  • Description of issue — The same title, series and year as presented for other schedules. Avoid abbreviations if possible.
  • Category — Early extinguishment, current refunding or advance refunding
  • Amount extinguished for early extinguishment or par value refunded for refunding
  • For refundings (current and advance) in proprietary funds and in governmental funds, also disclose the following:
    • Par value of refunding issue (new issue).
    • Cash flow difference — the difference between the cash flows required to service the new debt in comparison to the old debt. This is the sum of all future interest and principal payments that would have been paid by the entity, less all future interest and principal payments to be paid for the new debt, plus any additional resources required (if any).
    • Economic gain or loss — The economic gain or loss is the calculated difference between the present value of cash flow requirements of the old debt and the present value of cash flow requirements of the new debt. If a loss occurs, provide an explanation of the reasons for the extinguishment (such as to remove prohibitive bond covenant restrictions).

Attention: For required note disclosures for bonded indebtedness, see Note 6: Bonded Indebtedness.

Schedule 2F – Sample
For the Fiscal Year Ended Aug. 31, 20CY

Governmental Activities

Description of Issue Category Amount
Extinguished
or Refunded
For Refundings Only
Refunding
Issued Par Value
Cash Flow
Increase
(Decrease)
Economic Gain/
(Loss)
General Obligation Bonds          
Sample Ln Sec Bds Ser ‘80 Early Extinguishment $    630,000.00 $           0.00 $           0.00 $           0.00
Sample Ln Sec Bds Ser ‘80 Advance Refunding 300,000.00 320,000.00 27,500.00 25,000.00
Total General Obligation Bonds   930,000.00 320,000.00 27,500.00 25,000.00
Revenue Bonds          
Sample Rev Bds Ser ‘87 Early Extinguishment 450,000.00 0.00 0.00 0.00
Sample Rev Bds Ser ‘87 Current Refunding 480,000.00 495,000.00 20,400.00 12,795.00
Total Revenue Bonds   930,000.00 495,000.00 20,400.00 12,795.00
Total Governmental Activities   $ 1,860,000.00 $   815,000.00 $    47,900.00 $    37,795.00

Business-Type Activities

Description of Issue Category Amount
Extinguished
or Refunded
For Refundings Only
Refunding
Issued Par Value
Cash Flow
Increase
(Decrease)
Economic Gain/
(Loss)
General Obligation Bonds          
Sample Ln Sec Bds Ser ‘90 Current Refunding $      40,000.00 $      45,000.00 $       1,000.00 $         900.00
    40,000.00 45,000.00 1,000.00 900.00
Revenue Bonds          
Sample Rev Bds Ser ‘92 Early Extinguishment 60,000.00      
Sample Rev Bds Ser ‘92 Advance Refunding 40,000.00 45,000.00 1,275.00 798.00
Total Revenue Bonds   100,000.00 45,000.00 1,275.00 798.00
Total Business-Type Activities   $     140,000.00 $      90,000.00 $       2,275.00 $       1,698.00

Discrete Component Units

Description of Issue Category Amount
Extinguished
or Refunded
For Refundings Only
Refunding
Issued Par Value
Cash Flow
Increase
(Decrease)
Economic Gain/
(Loss)
Revenue Bonds          
Sample Rev Bds Ser ‘02 Advance Refunding $      25,000.00 $      30,000.00 $         855.00 $         925.00
    25,000.00 30,000.00 855.00 925.00
Total Component Units   $      25,000.00 $      30,000.00 $         855.00 $         925.00

Important: Enter all amounts in dollars and cents.

Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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