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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 6 – Bonded Indebtedness
Samples (Illustrative, may not tie to notes, schedules or exhibits)

It is essential for agencies that issue bonds to include their bond schedules in their agency’s AFR. Agencies must identify each bond issue, as described in Schedule 2A and disclose significant policies or requirements related to each bond issue in the note 6 narrative.

Or click on the headings below to open a topic individually.

General information [+]

  • Bond Issue Name, Series 20XX
  • Purpose — To construct additional facilities to carry out the functions of Sample Agency
  • Issued MM-DD-YY
  • $XX,XXX,XXX.xx — all authorized bonds have been issued
  • Source of revenue for debt service — Fund 0001 Appropriations

Advance Refunding Bonds [+]

Refunded $XXX,XXX,XXX.xx of Revenue Bonds — Series 1987:

  • Issued General Obligation Bonds — Refunding Series 20XX on MM-DD-YY
  • $XXX,XXX.xx — all authorized bonds have been issued
  • Average interest rate of bonds refunded — 12.5 percent
  • Net proceeds from Refunding Series $XXX,XXX.xx — after payment of $XX,XXX.xx in underwriting fees, insurance and other issuance costs. The net proceeds were used to purchase U.S. Government Securities and were deposited in an irrevocable trust with an escrow agent to provide for future debt payments on the 1987 Series bonds.
  • Additional $XXX,XXX.xx of 1987 — Series sinking fund moneys were used to purchase U.S. Government Securities. The proceeds were deposited in an irrevocable trust with an escrow agent to provide for all remaining future debt payments on the 1987 Series bonds
  • Advance refunding of the 1987 — Series bonds reduced the Sample Agency’s debt service payments over the next 20 years by approximately $XXX,XXX.xx
  • Economic Gain — $XXX,XXX.xx difference between the net present value of the old and new debt service payments
  • Accounting Gain — $XXX,XXX.xx accounting gain resulted from the advance refunding

Interest Rate Swaps [+]

Effective swaps are reported in Note 7.

Using rates as of Aug. 31, 20CY, the debt service requirements of the variable rate (or fixed rate) bonds and associated net swap payments were estimated and are presented in the table below.

Fiscal Year Ending 08/31 Variable-Rate Bonds Interest Rate Swaps, Net Total
Principal Interest
XXX1 $                        - $ 4,918,447.50 $ 8,787,205.50 $13,705,653.00
XXX2 - 4,918,447.50 8,787,205.50 $13,705,653.00
XXX3 - 4,918,447.50 8,787,205.50 13,705,653.00
XXX4 - 4,918,447.50 8,787,205.50 13,705,653.00
XXX5 25,785,000.00 4,918,447.50 8,787,205.50 39,490,653.00
XXX6-XX10 70,730,000.00 20,695,551.50 37,288,561.50 128,714,113.00
XX11-XX15 147,955,000.00 7,653,960.50 7,377,127.50 162,986,088.00
XX16-XX20 25,500,000.00 4,475,515.00 309,071.50* 30,284,586.50
Total

$268,970,000.00

$57,417,264.50

$88,910,788.00

$430,003,705.50
*The agency is required by authoritative standards to assume the interest rate swap will not be terminated prior to maturity

Important: Enter all amounts as dollars and cents.


Build America Bonds [+]

Build America Bonds (BABs) were created in 2009 as part of the American Recovery and Reinvestment Act (ARRA). Taxable bonds were issued by governmental entities (including state agencies) as Tax Credit BABs or as Direct Payment BABs:

  • Tax Credit BABs provide a federal tax credit to investors equal to 35 percent of the interest received from the bond issuer.
  • Direct Payment BABs provide a direct federal reimbursement to state and local governmental issuers equal to 35 percent of the interest paid on the bonds.

Authority to issue BABs expired on Dec. 31, 2010. Under the Budget Control Act of 2011, across-the-board sequestration took effect on March 1, 2013 — reducing the federal subsidy percentage for BABs interest payments.

A balance of $440.0 million of Taxable Revenue Bonds issued under the Direct Payment BABs program remained outstanding at fiscal year-end.

Schedule 2A – Miscellaneous Bond Information [+]

For the Fiscal Year Ended Aug. 31, 20CY.

Governmental Activities

Description of Issue Bonds Issued to Date Range of Interest Rates Terms of Variable Interest Rates Scheduled Maturities First Call Date
First Year Last Year
Sample Ln Sec Bds Ser ‘01 $    6,500,000.00 VAR VAR Weekly 2001 2025 10/01/20
Revenue Bonds              
Sample Rev Bds Ser ‘05 5,000,000.00 6.2500% 7.1500%   2006 2025 10/01/16
Total $  11,500,000.00            

Business-Type Activities

Description of Issue Bonds Issued to Date Range of Interest Rates Terms of Variable Interest Rates Scheduled Maturities First Call Date
First Year Last Year
General Obligation Bonds              
Sample Ln Sec Bds Ser ‘01 $     800,000.00 VAR VAR Quarterly 2001 2025 10/01/20
Revenue Bonds              
Sample Rev Bds Ser ‘05 2,000,000.00 5.5550% 6.2500%   2006 2025 10/01/16
Total $   2,800,000.00            

Component Units

Description of Issue Bonds Issued to Date Range of Interest Rates Terms of Variable Interest Rates Scheduled Maturities First Call Date
First Year Last Year
Revenue Bonds              
Sample Ln Sec Bds Ser ‘00 $   500,000.00 VAR VAR Quarterly 2001 2020 10/01/11
Sample Rev Bds Ser ‘02 $   300,000.00 4.1500% 5.6500%   2003 2022 10/01/13
Total $   800,000.00            

Important: Enter all amounts in dollars and cents.

Important: Enter fixed interest rates to four decimal places.

Schedule 2B – Changes in Bonded Indebtedness [+]

For the Fiscal Year Ended Aug. 31, 20CY.

The following tables are prepared using par value information with ending par value balance reconciled to an ending net balance. The reconciling item includes accrual adjustments. A par value adjustment column has been added to provide an accurate Bonds Outstanding Ending Balance (at par).

The Schedule 2B – Accrual report in the BRS web application is accrual based and does not require a reconciliation. This format is an acceptable presentation.

GASB 88 requires agencies to disclose direct borrowings and direct placements of debt separately from all other debt. For more information, see Direct Borrowings and Direct Placements.

Governmental Activities

General Obligation Bonds

  Reconciliation  
Description
of Issue		 Bonds
Outstanding
09/01/PY		 Bonds
Issued		 Bonds
Matured or
Retired		 Bonds
Refunded or
Extinguished		 Par Value
Adjustments		 Bonds
Outstanding
08/31/CY		 Unamortized Premium Unamortized Discount Adjustments Net Bonds
Outstanding
08/31/CY		 Amounts Due
Within
One Year		 Bonds
Outstanding
08/31/CY
Sample Ln Sec
Bds Ser ’80		 $ 4,000,000.00 $ 1,528,662.12 $ 70,000.00 $ 900,000.00 $ (25,000.00) $ 4,533,662.12 $ 3,251.25 $ (450.45) $ (5,000.00) $ 4,531,462.92 $ 75,125.07 $ 4,533,662.12

Revenue Bonds

  Reconciliation  
Description
of Issue		 Bonds
Outstanding
09/01/PY		 Bonds
Issued		 Bonds
Matured or
Retired		 Bonds
Refunded or
Extinguished		 Par Value
Adjustments		 Bonds
Outstanding
08/31/CY		 Unamortized
Premium		 Unamortized
Discount		 Adjustments Net Bonds
Outstanding
08/31/CY		 Amounts Due
Within
One Year		 Bonds
Outstanding
08/31/CY
Sample Rev
Bds Ser ’87		 $ 1,900,000.00   $ 20,000.00 $ 930,000.00   $ 930,000.00 $ 1,000.00 $ (961.37) $ 600.00 $ 950,638.63 $ 25,700.00 $ 950,000.00

Total Governmental Activities

  Reconciliation  
Description
of Issue		 Bonds
Outstanding
09/01/PY		 Bonds
Issued		 Bonds
Matured or
Retired		 Bonds
Refunded or
Extinguished		 Par Value
Adjustments		 Bonds
Outstanding
08/31/CY		 Unamortized
Premium		 Unamortized
Discount		 Adjustments Net Bonds
Outstanding
08/31/CY		 Amounts Due
Within
One Year		 Bonds
Outstanding
08/31/CY
GO and
REV		 $ 5,900,000.00 $ 1,528,662.12 $ 90,000.00 $ 1,830,000.00 $ (25,000.00) $ 5,483,662.12 $ 4,251.25 $ (1,411.82) $ (4,400.00) $ 5,482,101.55 $ 100,825.07 $ 5,483,662.12

Business-Type Activities

General Obligation Bonds

  Reconciliation  
Description
of Issue		 Bonds
Outstanding
09/01/PY		 Bonds
Issued		 Bonds
Matured or
Retired		 Bonds
Refunded or
Extinguished		 Par Value
Adjustments		 Bonds
Outstanding
08/31/CY		 Unamortized
Premium		 Unamortized
Discount		 Adjustments Net Bonds
Outstanding
08/31/CY		 Amounts Due
Within
One Year		 Bonds
Outstanding
08/31/CY
Sample Ln Sec
Bds Ser ’80		 $ 550,000.00 $ 65,000.00 $ 10,000.00 $ 50,000.00 $ 10,000.00 $ 555,000.00 $ 2,000.00 $ (7,165.60) $ 10,000.00 $ 559,834.40 $ 60,246.91 $ 555,000.00

Revenue Bonds

  Reconciliation  
Description
of Issue		 Bonds
Outstanding
09/01/PY		 Bonds
Issued		 Bonds
Matured or
Retired		 Bonds
Refunded or
Extinguished		 Par Value
Adjustments		 Bonds
Outstanding
08/31/CY		 Unamortized
Premium		 Unamortized
Discount		 Adjustments Net Bonds
Outstanding
08/31/CY		 Amounts Due
Within
One Year		 Bonds
Outstanding
08/31/CY
Sample Rev
Bds Ser ’87		 $ 1,000,000.00 $ 132.24 $ 25,000.00 $ 80,000.00   $ 895,132.24 $ 975.73 $ (976.08) $ (20,000.00) $ 875,131.89 $ 45,001.15 $ 895,132.24

Total Business-Type Activities

  Reconciliation  
Description
of Issue		 Bonds
Outstanding
09/01/PY		 Bonds
Issued		 Bonds
Matured or
Retired		 Bonds
Refunded or
Extinguished		 Par Value
Adjustments		 Bonds
Outstanding
08/31/CY		 Unamortized
Premium		 Unamortized
Discount		 Adjustments Net Bonds
Outstanding
08/31/CY		 Amounts Due
Within
One Year		 Bonds
Outstanding
08/31/CY
GO and
REV		 $ 1,550,000.00 $ 65,132.24 $ 35,000.00 $ 130,000.00 $ 10,000.00 $ 1,450,132.24 $ 2,975.73 $ (8,141.68) $ (10,000.00) $ 1,434,966.29 $ 105,248.06 $ 1,450,132.24

Component Units

General Obligation Bonds

  Reconciliation  
Description
of Issue		 Bonds
Outstanding
09/01/PY		 Bonds
Issued		 Bonds
Matured or
Retired		 Bonds
Refunded or
Extinguished		 Par Value
Adjustments		 Bonds
Outstanding
08/31/CY		 Unamortized
Premium		 Unamortized
Discount		 Adjustments Net Bonds
Outstanding
08/31/CY		 Amounts Due
Within
One Year		 Bonds
Outstanding
08/31/CY
Sample Ln Sec
Bds Ser ’00		 $ 400,000.00   $ 20,000.00     $ 380,000.00       $ 380,000.00 $ 20,000.00 $ 380,000.00

Revenue Bonds

  Reconciliation  
Description
of Issue		 Bonds
Outstanding
09/01/PY		 Bonds
Issued		 Bonds
Matured or
Retired		 Bonds
Refunded or
Extinguished		 Par Value
Adjustments		 Bonds
Outstanding
08/31/CY		 Unamortized
Premium		 Unamortized
Discount		 Adjustments Net Bonds
Outstanding
08/31/CY		 Amounts Due
Within
One Year		 Bonds
Outstanding
08/31/CY
Sample Rev
Bds Ser ’02		 $ 275,000.00   $ 10,000.00 $ 15,000.00   $ 250,000.00 $ 975.00 $ (975.55) $ (10,000.00) $ 239,999.45 $ 15,001.25 $ 250,000.00

Total Component Units

  Reconciliation  
Description
of Issue		 Bonds
Outstanding
09/01/PY		 Bonds
Issued		 Bonds
Matured or
Retired		 Bonds
Refunded or
Extinguished		 Par Value
Adjustments		 Bonds
Outstanding
08/31/CY		 Unamortized
Premium		 Unamortized
Discount		 Adjustments Net Bonds
Outstanding
08/31/CY		 Amounts Due
Within
One Year		 Bonds
Outstanding
08/31/CY
GO and
REV		 $ 675,000.00   $ 30,000.00 $ 15,000.00   $ 630,000.00 $ 975.00 $ (975.55) $ (10,000.00) $ 619,999.45 $ 35,001.25 $ 630,000.00

Important: Enter all amounts in dollars and cents.

Schedule 2C – Debt Service Requirements [+]

For the Fiscal Year Ended Aug. 31, 20CY.

Governmental Activities

Description of Issue Year Principal Interest
 
General Obligation Bonds      
Sample Ln Sec Bds Ser ‘80 XXX1   $     300,000.00   $     181,147.76
  XXX2 300,000.00 169,147.74
  XXX3 300,000.00 157,147.96
  XXX4 300,000.00 145,147.04
  XXX5 300,000.00 133,147.36
  XXX6 - XX10 1,500,000.00 363,442.22
  XX11 - XX15 1,500,000.00 183,442.15
      $   4,500,000.00   $   1,332,622.23
Revenue Bonds      
Sample Rev Bds Ser ‘87 XXX1   $      65,000.00   $      64,166.73
  XXX2 65,000.00 59,778.16
  XXX3 65,000.00 55,391.25
  XXX4 65,000.00 51,003.84
  XXX5 65,000.00 46,616.17
  XXX6 - XX10 325,000.00 126,684.04
  XX11 - XX15 300,000.00 30,436.36
      $     950,000.00   $     434,076.55

Business-Type Activities

Description of Issue Year Principal Interest
 
General Obligation Bonds      
Sample Ln Sec Bds Ser ‘80 XXX1   $      37,000.00   $      22,616.34
  XXX2 37,000.00 21,136.46
  XXX3 37,000.00 19,656.91
  XXX4 37,000.00 18,176.82
  XXX5 37,000.00 16,696.16
  XXX6 - XX10 185,000.00 45,649.64
  XX11 - XX15 195,000.00 23,449.52
      $     565,000.00   $     167,381.85
Revenue Bonds      
Sample Rev Bds Ser ‘92 XXX1   $      60,000.00   $      54,281.82
  XXX2 60,000.00 50,741.46
  XXX3 60,000.00 47,220.17
  XXX4 60,000.00 43,661.96
  XXX5 60,000.00 40,120.31
  XXX6 - XX10 300,000.00 109,741.64
  XX11 - XX15 320,000.00 56,644.92
    920,000.00 402,412.28
  Less Accretion: 44,867.76  
      $     875,132.24   $     402,412.28

Component Units

Description of Issue Year Principal Interest
 
Revenue Bonds      
Sample Ln Sec Bds Ser ‘00 XXX1   $      15,000.00   $      15,246.96
  XXX2 15,000.00 14,652.61
  XXX3 15,000.00 14,389.93
  XXX4 15,000.00 13,446.27
  XXX5 20,000.00 12,810.39
  XXX6 - XX10 100,000.00 36,698.74
  XX11 - XX15 100,000.00 24,698.61
  XX16 - XX20 100,000.00 12,165.52
      $     380,000.00   $     144,109.03
Sample Rev Bds Ser ‘02 XXX1   $      10,000.00   $      12,600.25
  XXX2 10,000.00 12,075.37
  XXX3 10,000.00 11,550.16
  XXX4 10,000.00 11,025.64
  XXX5 10,000.00 10,500.96
  XXX6 - XX10 50,000.00 29,925.17
  XX11 - XX15 50,000.00 22,050.05
  XX16 - XX20 60,000.00 14,175.39
  XX21 - XX25 30,000.00 2,756.46
      $     240,000.00   $     126,659.45

Important: Enter all amounts in dollars and cents.

Schedule 2D – Analysis of Funds Available for Debt Service [+]

For the Fiscal Year Ended Aug. 31, 20CY.

Governmental Activities

Description of Issue Application of Funds
Principal Interest
GO Bonds
Sample Ln Sec Bds Ser ‘80 $    70,000.00 $   195,147.34    
Total $    70,000.00 $   195,147.34    
Description of Issue Pledged and Other Sources and Related Expenditures for Fiscal 20CY
Net Available for Debt Service Debt Service
Total Pledged
and Other
Sources		 Operating Expenses/
Expenditures and
Capital Outlay		 Principal Interest
Revenue Bonds
Sample Rev Bds Ser ‘87 $   950,000.00 $   777,524.75 $    20,000.00 $    72,525.36
Total $   950,000.00 $   777,524.75 $    20,000.00 $    72,525.36

Business-Type Activities

Description of Issue Application of Funds
Principal Interest
GO Bonds
Sample Ln Sec Bds Ser ‘80 $    10,000.00 $   24,227.96    
Total $    10,000.00 $   24,227.96    
Description of Issue Pledged and Other Sources and Related Expenditures for Fiscal 20CY
Net Available for Debt Service Debt Service
Total Pledged
and Other
Sources		 Operating Expenses/
Expenditures and
Capital Outlay		 Principal Interest
Revenue Bonds
Sample Rev Bds Ser ‘87 $ 2,275,000.00 $            (A) $    24,867.61 $   58,925.06
Total $ 2,275,000.00 $          0.00 $    24,867.61 $   58,925.06
(A) - Expenditures associated with pledged sources were approximately $1,850,000.00 (Footnote disclosure for Gross Revenue Pledges only.)

Component Units

Description of Issue Pledged and Other Sources and Related Expenditures for Fiscal 20CY
Net Available for Debt Service Debt Service
Total Pledged
and Other
Sources		 Operating Expenses/
Expenditures and
Capital Outlay		 Principal Interest
Revenue Bonds
Sample Ln Sec Bds Ser ‘00 $   325,795.43 $   229,788.96 $    20,000.00 $    16,975.16
Sample Rev Bds Ser ‘02 $   277,865.16 $   189,798.13 $    10,000.00 $    14,800.00
Total $   603,660.59 $   419,587.09 $    30,000.00 $    31,775.16

Important: Enter all amounts in dollars and cents.

Schedule 2E – Defeased Bonds Outstanding [+]

For the Fiscal Year Ended Aug. 31, 20CY.

Governmental Activities

Description of Issue Year
Defeased		 Par Value
Outstanding
General Obligation Bonds
Sample Ln Sec Bds Ser ‘78 1985   $     5,500,000.00
Sample Ln Sec Bds Ser ‘78-A 1985 10,500,000.00
Sample Ln Sec Bds Ser ‘79 1985 7,300,000.00
Sample Ln Sec Bds Ser ‘80 20CY 300,000.00
Total General Obligation Bonds     $   23,600,000.00
Revenue Bonds    
Sample Rev Bds Ser ‘87 1989   $     1,000,000.00
  1989 3,500,000.00
  1991 5,700,000.00
Total Revenue Bonds     $   10,200,000.00

Business-Type Activities

Description of Issue Year
Defeased		 Par Value
Outstanding
General Obligation Bonds
Sample Ln Sec Bds Ser ‘78 1985   $     5,500,000.00
Sample Ln Sec Bds Ser ‘78-A 1985 10,500,000.00
Sample Ln Sec Bds Ser ‘79 1985 7,300,000.00
Sample Ln Sec Bds Ser ‘80 1986 13,000,000.00
Total General Obligation Bonds     $   36,300,000.00
Revenue Bonds    
Sample Ln Sec Bds Ser ‘67 1989 1,000,000.00
Sample Ln Sec Bds Ser ‘67-A 1989 3,500,000.00
Sample Ln Sec Bds Ser ‘75 1991 5,700,000.00
Sample Ln Sec Bds Ser ‘92 20CY 100,000.00
Total Revenue Bonds     $   10,300,000.00

Component Units

Description of Issue Year
Defeased		 Par Value
Outstanding
Revenue Bonds
Sample Rev Bds Ser ‘02 20CY 25,000.00
Total     $       25,000.00

Important: Enter all amounts in dollars and cents.

Schedule 2F – Early Extinguishment and Refunding [+]

For the Fiscal Year Ended Aug. 31, 20CY.

Governmental Activities

Description of Issue Category Amount
Extinguished
or Refunded		 For Refundings Only
Refunding
Issued Par Value		 Cash Flow
Increase
(Decrease)		 Economic Gain/
(Loss)
General Obligation Bonds          
Sample Ln Sec Bds Ser ‘80 Early Extinguishment $    630,000.00 $           0.00 $           0.00 $           0.00
Sample Ln Sec Bds Ser ‘80 Advance Refunding 300,000.00 320,000.00 27,500.00 25,000.00
Total General Obligation Bonds   930,000.00 320,000.00 27,500.00 25,000.00
Revenue Bonds          
Sample Rev Bds Ser ‘87 Early Extinguishment 450,000.00 0.00 0.00 0.00
Sample Rev Bds Ser ‘87 Current Refunding 480,000.00 495,000.00 20,400.00 12,795.00
Total Revenue Bonds   930,000.00 495,000.00 20,400.00 12,795.00
Total Governmental Activities   $ 1,860,000.00 $   815,000.00 $    47,900.00 $    37,795.00

Business-Type Activities

Description of Issue Category Amount
Extinguished
or Refunded		 For Refundings Only
Refunding
Issued Par Value		 Cash Flow
Increase
(Decrease)		 Economic Gain/
(Loss)
General Obligation Bonds          
Sample Ln Sec Bds Ser ‘90 Current Refunding $      40,000.00 $      45,000.00 $       1,000.00 $         900.00
    40,000.00 45,000.00 1,000.00 900.00
Revenue Bonds          
Sample Rev Bds Ser ‘92 Early Extinguishment 60,000.00      
Sample Rev Bds Ser ‘92 Advance Refunding 40,000.00 45,000.00 1,275.00 798.00
Total Revenue Bonds   100,000.00 45,000.00 1,275.00 798.00
Total Business-Type Activities   $     140,000.00 $      90,000.00 $       2,275.00 $       1,698.00

Component Units

Description of Issue Category Amount
Extinguished
or Refunded		 For Refundings Only
Refunding
Issued Par Value		 Cash Flow
Increase
(Decrease)		 Economic Gain/
(Loss)
Revenue Bonds          
Sample Rev Bds Ser ‘02 Advance Refunding $      25,000.00 $      30,000.00 $         855.00 $         925.00
    25,000.00 30,000.00 855.00 925.00
Total Component Units   $      25,000.00 $      30,000.00 $         855.00 $         925.00

Important: Enter all amounts in dollars and cents.