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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Notes & Samples

NOTE 5 – Long-Term Liabilities
Reporting Long-Term Liabilities

Reporting liabilities in the government-wide statement of net position requires reporting both of the following components:

  • The amount due in one year (current portion)
  • The amount due in more than one year (non-current portion)

Changes in Long-Term Liabilities Table

Note: Agencies are required to submit changes in long-term liabilities through the LTLN web application.

Disclose information about long-term liabilities — including long-term debt and other long-term liabilities.

Long-term debt includes:

  • Bonds payable
  • Notes payable
  • Loans payable
  • Leases payable

Other long-term liabilities include:

  • Employee compensable leave
  • Liabilities payable from restricted assets
  • Pollution remediation obligations
  • Claims and judgments

Present the following information in the Changes in Long-Term Liabilities table:

  • Beginning balances
  • Ending balances
  • Additions and reductions transaction amounts are entered separately, not as a single net increase (decrease)
  • Enter Restatement/Adjustment to recognize the result of a transaction adjustment or restatement. Do not use Restatement/Adjustment to correct penny rounding variances.
  • The portions of each item that are due within one year of the statement date (principal amount adjusted for premiums and discounts)

Disclose the following types of obligations in the Changes in Long-Term Liabilities table:

  • Claims and judgments
  • Capital lease obligations
  • Employees compensable leave
  • Notes and loans payable
  • General obligation bonds payable
  • Revenue bonds payable
  • Pollution remediation obligations
  • Liabilities payable from restricted assets (only if maturities exceed one year)

A note disclosure text box is provided for each category for the purpose of corroborating facts or explanations. Long-term liability basis conversion working papers and related instructions are available in the AFR Working Papers.

WARNING: Beginning balances are automatically populated in the LTLN web application based on prior fiscal year audited balances. Ending balances must tie to the combined balance sheet amounts for each long-term liability line item.

Glenn Hegar
Texas Comptroller of Public Accounts
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