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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

General Accounting

Loan Programs
Debt Service Funds

Debt service funds are not used to account for loans outstanding. Loans outstanding are only reported in a general, special revenue or proprietary fund type.

If bonds were issued for the loan program, debt service funds are not necessarily required. For proprietary fund reporting, both the bond liability on the balance sheet and the debt service payments on the operating statement are presented within the proprietary fund. Debt service payments may be reported in a general or special revenue fund with the bond liability presented in the long-term liabilities adjustment column for governmental activities.

A debt service fund may be used to report resources used and payment of debt service for bonds associated with the loan program for governmental activities. Debt service funds are required only if legally mandated or resources are being accumulated for future debt service payments. If used, the debt service funds do not present the loans outstanding. Resources obtained from the loan repayments for debt service payments are presented as transfers from the general or special revenue fund to the debt service fund.

Glenn Hegar
Texas Comptroller of Public Accounts
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