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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

Notes & Samples

NOTE 1 – Summary of Significant Accounting Policies
Budgets and Budgetary Accounting

The Budget and Budgetary Accounting section of Note 1 describes funds with legally adopted budgets and are subject to appropriation budgetary control.

The governmental funds with legally adopted annual budgets listed in other supplementary information in the ACFR are the:

  • General fund
  • State highway fund
  • Other nonmajor special revenue funds

Budgetary comparison information is presented as a required supplementary information (RSI) in accordance with GASB 103, which establishes a single method of communication for budgetary reporting that requires agencies to present budgetary comparison schedules only as RSIs.

For each major governmental fund with a legally adopted annual budget, the budgetary comparison schedule presents the:

  • Original budget
  • Final amended budget
  • Actual results on a budgetary basis

The schedule also requires presentation of:

  • Variances between the original and final budget
    –AND–
  • Variances between the final budget and actual results

Agencies are required to disclose explanations of significant variances in the notes to the RSI – rather than within the face of the schedule. These disclosures must clearly describe the:

  • Reasons for material changes in budgeted amounts
    –AND–
  • Differences between final budget and actual activity