Skip to content
Breadcrumbs

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Note: To navigate this guide on a mobile device you must use the Table of Contents.

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

General Accounting

Government-wide Financial Statements
Statement of Net Position

The statement of net position reports the following elements of financial statements referenced in General Accounting:

  • Assets
  • Deferred outflows of resources
  • Liabilities
  • Deferred inflows of resources
  • Net position

GASB Concepts Statement No. 4, Elements of Financial Statements defines deferred outflows of resources, deferred inflows of resources and net position. It also separates deferred outflows of resources and deferred inflows of resources from assets and liabilities.

Financial Statement Presentation

On a statement of financial position, present both of the following:

  • Deferred outflows of resources in a separate section following assets
  • Deferred inflows of resources in a separate section following liabilities

Net position is calculated as: Assets plus deferred outflows of resources, less liabilities and deferred inflows of resources.

There are three components of net position:

  • Net investment in capital assets
  • Restricted (should display the major categories of restrictions)
  • Unrestricted

Net Investment in Capital Assets Component of Net Position

The net investment in capital assets component includes:

  • Capital assets less accumulated depreciation and outstanding balances of bonds, mortgages, notes or other borrowings attributable to the acquisition, construction, or improvement of those assets.
  • Deferred outflows of resources and deferred inflows of resources attributable to the acquisition, construction, or improvement of those assets, or related debt.

Restricted Net Position

Restricted net position consists of amounts constrained by external parties, constitutional provisions or enabling legislation. These restrictions must be legally enforceable. Restricted net position is calculated as: Restricted assets, less liabilities and deferred inflows of resources related to those assets.

Unrestricted Net Position

Unrestricted net position is the residual amount of the net position not included in the net investment in capital assets or the restricted net position. This amount may be positive or negative.

Reporting Considerations

Present the statement of net position following the financial reporting model established by GASB 34 and incorporate subsequent updates, including GASB 103. Additionally, agencies must:

  • Report deferred outflows and deferred inflows of resources as assets or liabilities.
  • Ensure consistent classification and presentation across reporting periods.
  • Ensure that amounts reported in the statement of net position are consistent with amounts reported for statewide financial reporting purposes.

Classifications of net position components are evaluated on a statewide basis for inclusion in the ACFR.