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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 2E – Defeased Bonds Outstanding

Schedule 2E – Defeased Bonds Outstanding discloses the par value of defeased bonds by individual series that are outstanding at fiscal year-end until the escrow fund is exhausted and until no bonds are outstanding at fiscal year-end. Although these bonds are no longer reported as liabilities of the agency, they are still held by bondholders who are expecting payments of principal and interest. Separate and identify each bond series issued as described in Schedule 2A. Disclose the following in the hard copy Schedule 2E and in the BRS web application, where applicable:

  • Description of issue — The exact title, series and calendar year of the bond as presented for other bond schedules. Avoid abbreviations if possible.
  • Year refunded — The calendar year in which the bonds (or portion thereof) were refunded or defeased. Multiple partial refundings of a single bond issue are reported on separate lines.

  • Par value outstanding — The par value of refunded or extinguished bonds that were not retired through payments from the escrow fund at fiscal year-end. Amounts in this schedule are updated each year.

    For discount bonds (such as capital appreciation, zero coupon or limited interest mortgage obligation bonds), the amount of accretion that occurred during the fiscal year is added.

    A timing difference exists when an agency computes accretion for a bond series but the accretion does not coincide with fiscal year-end. In these situations, the agency extrapolates the accretion from the last payment date of the fiscal year to the date of fiscal year-end (if material). Present a footnote explanation indicating when the amounts are due to accretion on Schedule 2E and in in the Section Four Comment box of the BRS web application.

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.

Attention: For required note disclosures for bonded indebtedness, see Note 6: Bonded Indebtedness.