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Reporting Requirements for Annual Financial Reports of State Agencies and Universities

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Reporting Requirements for Annual Financial Reports of State Agencies and Universities

General Accounting

Loan Programs
Accounting For Loan Transactions

In order to comply with GASB’s measurement and classification framework, do not report loans as expenditures in any fund type. Similarly, do not report the repayment of loans as revenues. Instead, report both as balance sheet transactions. GASB 103 requires cash flows from program loan activity to be reported as operating activities. If the objective is to present information on loans issued and principal collected, reporting as a proprietary fund is preferable because it includes a statement of cash flows.

According to GASB 54, when reporting noncurrent loans receivable:

  • In the general revenue fund — report the noncurrent portion as nonspendable fund balance. It is not appropriate to classify the amount as unearned revenues.
  • In other governmental funds — report noncurrent loans receivable as either:
    • Restricted
    • Committed
      –OR–
    • Assigned fund balance