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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
Schedule 2D – Analysis of Funds Available for Debt Service

Schedule 2D – Analysis of Funds Available for Debt Service provides an analysis of funds available for debt service. Review the bond resolution to determine what amounts are pledged and need to be included.

The following items are the lowest level of detail that is required. Note the schedule formats for general obligation (GO) bonds and revenue bonds are different. For GO bonds with specific revenue pledges, use the revenue bond format. Separate and identify each bond series issued as described in Schedule 2A. Disclose the following in the hard copy submission of Schedule 2D and in the BRS web application, where applicable.

Analysis of Funds Available for Debt Service — GO Bonds

Description of issue

This is the exact title, series and calendar year of the bond as presented for other bond schedules. Avoid abbreviations, if possible. Parity issues that have equal claim to pledged sources are presented as one line for purposes of this schedule — clearly identifying each parity issue included.

Principal

This is the par value of bonds retired during the fiscal year due to a scheduled maturity. This amount ties to the bond issue’s amortization schedule and to the bonds matured or retired column on Schedule 2B.

Interest

This is the amount of interest paid during the fiscal year and ties to the bond’s amortization schedule. It is not adjusted for accrued interest received on new bond issues. The net amount received/paid on bond-related interest rate swap agreements is not included in this column.

Analysis of Funds Available for Debt Service — Revenue Bonds

Description of Issue

This is the exact title, series and calendar year of the bond as presented for other bond schedules. Avoid abbreviations, if possible. Parity issues that have equal claim to pledged sources are presented as one line, clearly identifying each parity issue included.

Pledged Sources and Related Expenditures for the Fiscal Year

Present all sources and expenditures affecting the net amount available for debt service in a footnote on this schedule and in Section Four Comment box in the BRS web application.

Give consideration to bond documents that detail whether:

  • Total gross sources are pledged for debt service (gross pledge)

    When gross sources are pledged, disclose the related (estimated) operating expenditures paid in a footnote on this schedule and in the Section Four Comment box of the BRS web application.

    –OR–
  • Net amounts are available after specific operating expenses are deducted (net pledge)

    When net sources are pledged, report the operating expenditures in the operating expenses/expenditures capital outlay column.

Beginning balances or reserve fund amounts used for debt service are not included in the body of this schedule – instead, they are disclosed in a footnote to this schedule and in Section Four Comment box in the BRS web application.

  1. Total pledged and other sources — This includes the total of operating revenues, interest earned on investments and other pledged sources defined as:
    • Operating revenues — Revenues generated by activities made possible by bonds (such as rental or non-recycled loan repayments received) but do not include any other amounts pledged to repay the bonds (such as fees or taxes).
    • Interest earned on investments — Pledged interest earned on investments, bond-related funds and other pledged sources.
    • Other pledged sources — This includes any other amounts pledged to repay the bonds that are not operating revenues or interest earned on investments (such as fees, taxes, etc.). It also includes proceeds from refunding bonds and principal payments on loans not recycled as well as accrued interest received when issuing new or refunding bonds.
    Note: Do not include payments on loans not recycled to the extent that such payments were used to prepay outstanding bonds.
  2. Other sources — Any other sources used for debt service, not specified in the bond resolution.
  3. Operating expenses/expenditures and capital outlay — Expenditures associated with operating revenues and capital outlay made from pledged sources. If the bond resolution pledges the “gross revenues,” disclose the related (estimated) expenditures in a footnote to this schedule.

Debt service

  1. Principal — The par value of all bonds retired during the fiscal year due to a scheduled maturity. This amount ties to the prior year's Schedule 2C and the bond issue’s amortization schedule. It also ties to the bonds matured or retired column on Schedule 2B.
  2. Interest — The amount of interest paid during the fiscal year that ties to the prior year's Schedule 2C and the bond’s amortization schedule. It is not adjusted for accrued interest received on new bond issues. The net amount received/paid on bond-related interest rate swap agreements is not included in this column.

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.