FMX Home
Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

General Accounting

Statement of Cash Flows

Application

Present a statement of cash flows (SOCF) for all proprietary and internal service funds based on the provisions of GASB 9, as amended by GASB 34.

Note: A statement of cash flows is not required for component units.

Use the direct method of presenting cash flows from operating activities, including a reconciliation of operating cash flows to operating income. This reconciliation is presented as a separate schedule as part of the statement of cash flows.

The SOCF is submitted through the ACFR web application. For more information, see Instructions for the ACFR Web Application.

Note: All agencies are required to submit a certification within the ACFR web application (even if there is $0 activity). Agencies with enterprise funds (FT05) and internal service funds (FT06) must certify and submit a copy of their Annual Financial Report’s statement of cash flows. The submitted copy must tie to the certified data in the ACFR web application. When the SOCF submitted through the ACFR web application does not tie to the agency’s SOCF from its published AFR, use the SOCF Reconciliation template for each GAAP fund. Submit each SOCF Reconciliation template as separate attachments through the ONDSS web application.

Purpose

The primary purpose of the SOCF is to provide relevant information about an agency’s cash receipts and payments during the fiscal year. The statement of cash flows, when used with related disclosures and information in the other financial statements, provides relevant information about an agency, such as:

  • Its ability to generate future net cash flows
  • Its ability to meet obligations when due
  • Its needs for external financing
  • The reasons for differences between operating income and associated cash receipts and payments
  • The effects on the agency’s financial position of its cash, noncash, investing, capital and financing transactions

Cash Equivalents

The SOCF explains the change in cash and cash equivalents during the fiscal year regardless of restrictions on their use. The total amounts of cash and cash equivalents at the end of the fiscal year (as reported in the SOCF) must be easily traceable to similarly titled line items or subtotals reported in the statement of net position.

For purposes of the SOCF, cash equivalents are defined as short-term, highly liquid investments that are both:

  • Readily convertible to known amounts of cash
    –AND–
  • Have an original maturity to the holding entity of three months or less

Not all qualifying short-term, highly liquid investments are treated as cash equivalents. Disclose the agency’s policy for determining those items treated as cash equivalents in Note 1. Apply this policy consistently throughout the year.

Examples of cash equivalents items that may be considered include:

  • Treasury bills
  • Commercial paper
  • Certificates of deposit
  • Money market funds
  • Cash management pools
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
Comptroller.Texas.Gov | FMX
FMX Sitemap | Contact FM
Accessibility Policy | Privacy and Security Policy