Reporting Requirements for Annual Financial Reports of State Agencies and Universities

General Accounting

Statement of Cash Flows
Reconciliation Checklist

Each agency with enterprise funds (FT05) and internal service funds (FT06) must:

• Enter and certify the statement of cash flows (SOCF) information in the Statement of Cash Flows (SOCF) web application (even if there is no activity) by the SOCF certification deadline applicable to your agency.
• Submit a copy of the agency’s SOCF from its published AFR through the ONDSS web application. The required format is a Microsoft Excel document (latest version: xlsx) with header information that includes the agency name/number and document title.
• The SOCF submitted through the SOCF web application must tie to the submitted hard copy of the agency’s SOCF from its published AFR.
• Use the SOCF Reconciliation template when the SOCF submitted through the SOCF web application does not tie to the agency’s SOCF from its published AFR, for each GAAP fund. Submit the SOCF Reconciliation template through the ONDSS web application.

Note: Screen prints from the SOCF web application will not be accepted in lieu of the required Microsoft Excel document from the published AFR.

To certify in the SOCF web application, the following must reconcile:

• Do not report paid-on-behalf payroll-related costs (such as retirement, insurance and unemployment) and the related additional appropriated revenues in USAS to GL account 4050 — Payments to Employees. These amounts can only be reflected in the agency’s hard copy AFR.
• The Cash Flows from Operating Activities section of the SOCF web application only includes amounts from providing services and producing and delivering goods. Additionally, Proceeds from Loan Programs and Payments for Loans Provided only contain program loan activity. For more information, see Cash Flows from Operating Activities.
• The Cash Flows from Noncapital Financing Activities section of the SOCF web application must not include amounts to acquire, construct or improve capital assets. Additionally, Proceeds from Loan Programs must not include program loan amounts. Report Higher Education Assistance Funds in USAS to GL account 4205 — Proceeds from State Appropriations.
• The Cash Flows from Capital and Related Financing Activities section of the SOCF web application only includes amounts to acquire and dispose of capital assets, borrow money to acquire, construct or improve capital assets and to repay the principal and interest amounts.
• The Cash Flows from Investing Activities section of the SOCF web application only includes amounts to make and collect loans (except program loans) and to acquire and dispose of debt or equity instruments.
• In the Reconciliation section of the SOCF web application, Net Cash Provided (Used) by Operating Activities must tie to Net Cash Provided (Used) by Operating Activities in the Cash Flows from Operating Activities section.
• In the Reconciliation section of the SOCF web application, the USAS GL account 4806 Pension Expense must tie to COBJ 7036 — Pension Expense Proprietary.
• In the Reconciliation section of the SOCF web application, the USAS GL account 4808 OPEB Expense must tie to COBJ 7056 — OPEB Expense Proprietary.
• In the Reconciliation section of the SOCF web application, provide an explanation for classification differences reported in USAS to GL account 4852 — Operating Income (Loss) and Cash Flow Categories Classification Differences.
• In the Non-Cash Transactions section of the SOCF web application, the USAS GL account 4899 Borrowing Under Lease Purchase must tie to the additions column in Note 5 for lease obligations (submitted through the LTLN web application).
• SOCF web application must not contain positive payments or negative proceeds.
• Review balances using the following FMQuery–SIRS AFR Desk Review reports located in the Cash Flow drop-down menu:
  • DR300 — Review Cash Flow Stmt (BS,SNA-8580)
    Cash and Cash Equivalents — September 1 20PY in the SOCF web application must tie to the prior years’ ending balance published in the ACFR. Any differences are recorded as a restatement in USAS to GL account 4705 Restatements of the SOCF web application. Contact your financial reporting analyst for prior years’ ending balance questions.
  • DR301 — Review Cash Flow Stmt (BS,SNA-8580)
    Cash and Cash Equivalents, August 31, 20CY in the SOCF web application must tie to the current years’ ending balance reported on the statement of net position — proprietary funds.
  • DR302 — Review Operating Income (Loss) (StmtOfChangesAssetsLiab-8600)
    Operating Income (Loss) in the SOCF web application must tie to operating income (loss) on the statement of revenues, expenses and changes in net position — proprietary funds.
  • DR303 — Review Bad Debt Expense (StmtofChangesAssetsLiab-8600)
    Bad Debt Expense in the SOCF web application must tie to bad debt expense on the statement of revenues, expenses and changes in net position — proprietary funds (except for universities). Bad debt expense is never a negative number.
  • DR304 — Review Depreciation Expense (StmtOfChangesAssetsLiab-8600)
    Depreciation and Amortization in the SOCF web application must tie to depreciation and amortization on the statement of revenues, expenses and changes in net position — proprietary funds.
  • DR305 — Review Change FV Investment (StmtOfChangesAssetsLiab-8600)
    Net Change in Fair Value of Investments in the SOCF web application must tie to the net total of the following COBJs:
    • 3838 — Net Inc/Dec Fair Val-Non-Oper Rev-Op G&C
    • 3844 — Net Inc/Dec Fair Valu Inv Non-Op Pledged
    • 3845 — Net Inc/Dec Fair Value Inv Oper Pledged
    • 3872 — Net Inc/Dec Fair Valu-Oper Rev-Noncash
    • 3899 — Net Inc/Dec Fair Value-Gen(Non-Prgm)

Note: Agencies with variances between the Net Change in Fair Value of Investments in the SOCF web application and the total operating statement’s COBJs listed above must submit the SOCF Reconciliation template through the ONDSS web application with an explanation of the variances.