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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
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 table is also required for capital leases in Note 8 and bonds in Schedule 2C of Note 6). 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
These are posted this way because they are all considered non-current until the year they are due.
To Increase Non-current Notes and Loans Payable for Additions
(1) 5 U 0832CY XXX 516 CY 99999 3XXX* $ XX.XX   XXXX 1720
To Reduce Non-current Notes and Loans Payable for Reductions
(2) 5 U 0832CY XXX 503 CY 99999 7804 $ XX.XX   XXXX 1720
To Record the Portion of Current Payable (due within 1 year)
(3) 5 U 0832CY XXX 537 CY 99999 N/A $ XX.XX   XXXX 1566
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 1720

*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
* Note: Using T-code 537 generates an automatic reversal in the following fiscal year using T-code 534.
(1) To Increase Non-current Notes and Loans Payable for Additions    
  6135 BC Other Financing Sources $ XX.XX  
  1720 BC NC Notes and Loans Payable   $ XX.XX
(2) To Reduce Non-current Notes and Loans Payable for Reductions    
  1720 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  
  1566 BC CL Notes and Loans Payable   $ XX.XX
(4) To Reduce Non-current Payable by Amount of Current (due within 1 year)*    
  1720 BC NC Notes and Loans Payable $ XX.XX  
  9992 System Clearing   $ XX.XX
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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