Reporting Requirements for Annual Financial Reports of State Agencies and Universities
Notes & Samples
NOTE 4 – Short-Term Debt
Sample (Illustrative, may not tie to exhibits)
Sample 1
Sample Agency has a line of credit available with Bank ABC. On April 5, 20CY, Sample Agency borrowed $200,000 from Bank ABC to cover temporary cash shortages in the general fund due to the timing of revenue collection. Sample Agency paid in full on June 1, 20CY.
| Governmental Activities | Beginning Balance 09/01/20PY | Issued | Redeemed | Ending Balance 08/31/20CY |
|---|---|---|---|---|
| Commercial Paper | $0 | $200,000.00 | $200,000.00 | $0 |
- Sample Agency has no amounts of unused lines of credit
- Sample Agency has no assets pledged as collateral for debt
- Sample Agency has no terms specified in debt agreements related to significant:
- Events of default with finance-related consequences
- Termination events with finance related consequences
- Subjective acceleration clauses
Sample 2
On June 01, 20CY, Sample Agency issued $1,000,000 commercial paper notes to serve as an interim financing source for long-term construction projects in advance of issuing authorized bonds, and $300,000 matured before Aug. 31 20CY. As of November 20, 20CY, Sample Agency does not have an agreement with a financial institution to issue bonds to pay off the outstanding commercial paper notes. Therefore, Sample Agency reports the commercial paper notes in (GL 1068) short-term debt as follows:
| Governmental Activities | Beginning Balance 09/01/20PY | Issued | Redeemed | Ending Balance 08/31/20CY |
|---|---|---|---|---|
| Commercial Paper Notes | $0 | $1,000,000 | $300,000 | $700,000 |
- Sample Agency has no amounts of unused lines of credit
- Sample Agency has no assets pledged as collateral for debt
- Sample Agency has no terms specified in debt agreements related to significant:
- Events of default with finance-related consequences
- Termination events with finance related consequences
- Subjective acceleration clauses