Reporting Requirements for Annual Financial Reports of State Agencies and Universities
Notes & Samples
NOTE 5 – Long-Term Liabilities
Notes and Loans Payable
Briefly describe the uses of notes or loans payable in the Note Disclosure field in the LTLN web application. Disclose dollar amounts as reported on the balance sheet. Interest requirements for variable-rate debt are determined using the rate in effect at the financial statement date. Disclose the terms by which the interest rates change for variable rate debt in Note 5.
Violations of Finance-Related Legal or Contractual Provisions
Disclose violations of finance-related legal or contractual provisions and identify actions taken to address such violations.
Debt Service to Maturity Table
Disclose debt service to maturity for notes and loans outstanding This disclosure reports the debt for both the principal and interest for each of the succeeding five fiscal years and in five-year increments thereafter.
Working Papers are available under Long-Term Liability Basis Conversion and BTA Working Papers in preparation of journal entries. The following is an example of the governmental funds entry.
USAS Basis Conversion Entries and Related Information
| Seq No | Batch Type | Doc Type | Eff Date | Fin Agy | TC | AY | PCA | COBJ | Amount | R | Fund | Input GL* |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| To Increase Non-current Notes and Loans Payable for Additions | ||||||||||||
| (1) | 5 | U | 0832CY | XXX | 516 | CY | 99999 | 3XXX* | $ XX.XX | XXXX | 17XX | |
| To Reduce Non-current Notes and Loans Payable for Reductions | ||||||||||||
| (2) | 5 | U | 0832CY | XXX | 503 | CY | 99999 | 7804 | $ XX.XX | XXXX | 17XX | |
| To Record the Portion of Current Payable (due within 1 year) | ||||||||||||
| (3) | 5 | U | 0832CY | XXX | 537 | CY | 99999 | N/A | $ XX.XX | XXXX | 15XX | |
| To Reduce Non-current Payable by amount of Current (due within 1 year) | ||||||||||||
| (4) | 5 | U | 0832CY | XXX | 537 | CY | 99999 | N/A | $ XX.XX | R | XXXX | 17XX |
| These are posted this way because they are all considered non-current until the year they are due. | ||||||||||||
Input GL Account Numbers
| Type | Current | Non-current |
|---|---|---|
| Notes & Loans Payable | 1566 | 1720 |
| Direct Placements – Notes & Loans Payable | 1557 | 1721 |
| Direct Borrowing – Notes & Loans Payable | 1558 | 1722 |
*COBJs that can be used for entry (1):
- 3416 Sale of Agricultural Finance Authority Bonds/Notes
- 3807 Issuance of Commercial Paper
Accounting effect of above entries:
| Debit | Credit | ||
|---|---|---|---|
| (1) | To Increase Non-current Notes and Loans Payable for Additions | ||
| 6135 BC Other Financing Sources | $ XX.XX | ||
| 17XX BC NC Notes and Loans Payable | $ XX.XX | ||
| (2) | To Reduce Non-current Notes and Loans Payable for Reductions | ||
| 17XX BC NC Notes and Loans Payable | $ XX.XX | ||
| 5650 BC Expenditure Control | $ XX.XX | ||
| (3) | To Record the Portion of Current Payable (due within 1 year)* | ||
| 9992 System Clearing | $ XX.XX | ||
| 15XX BC CL Notes and Loans Payable | $ XX.XX | ||
| (4) | To Reduce Non-current Payable by Amount of Current (due within 1 year)* | ||
| 17XX BC NC Notes and Loans Payable | $ XX.XX | ||
| 9992 System Clearing | $ XX.XX | ||
| * Note: Using T-code 537 generates an automatic reversal in the following fiscal year using T-code 534. | |||