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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 8 – Leases
Instructions for the LNSS Web Application

The Lease Note Submission System (LNSS) web application provides a user-friendly and intuitive method to electronically submit lease note disclosures. LNSS ensures uniformity of these disclosures for CAFR Note 8.

Agencies can save work-in-progress in LNSS at any time and later recall a disclosure to edit or delete. Reports are available in HTML and PDF formats or as a download into an Excel file. LNSS produces a statewide database used for CAFR reports and disclosures. All agencies with lease activity are required to use LNSS to input and certify disclosures.

In addition to submitting Note 8 from the agency’s AFR, the following agencies must also submit disclosures in LNSS:

  • State agencies
  • Higher education systems
  • Independent higher education agencies

Note: Components of university systems must not use LNSS.

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

Deadlines for Entry[+]

The LNSS certification is due annually by Nov. 20, 20CY (simplified reporting agencies by Oct. 1, 20CY).

Submit a copy of the agency’s Note 8 from its published AFR through the LNSS web application. The required format is a Microsoft Word document (latest version: docx) with header information that includes: agency name/number and note name/number. If Note 8 does not apply, do not submit a note to indicate “not applicable.”

Note: Screen prints from LNSS will not be accepted in lieu of the required copy of the agency’s Note 8 from its published AFR.

Disclosures Entered and Certified in LNSS[+]

After transaction activity and disclosure information is entered in LNSS, the following reports can be generated (in PDF, HTML or Excel formats):

  • Capital Leases Summary Report
  • Capital Assets Under Lease Report
  • Capital Lease Debt Service Summary Report
  • Capital Leases Debt Service Report
  • Operating Leases Payments Summary Report
  • Operating Leases Payments Report
  • Operating Leases Income Summary Report
  • Operating Leases Income Report
  • Operating Leases Payments Variance Report
  • Operating Leases Income Variance Report
  • Other Text/General Leasing Arrangements
  • All comments and file attachments

Establish Security Access[+]

Ensure proper security access exists as early in the process as possible. Contact your agency’s security coordinator to request LNSS access for each agency number you are reporting.

Verify proper security access was established by viewing the USAS Titles Profile (D53) screen as shown below. On the D53 screen:

  1. Enter R in the ACTION field.
  2. Enter LNSS in the TABLE ID field.
  3. Enter your User ID and agency number in the KEY field.

    If you enter your User ID without the agency number, USAS automatically appends it to the end of your User ID.

  4. Press Enter.

    Your name appears in the TITLE field if your security access was properly established.

    Once security access is granted, USAS requires one overnight cycle to run before you can access LNSS.

    TEXAS  SD53    UNIFORM STATEWIDE ACCOUNTING SYSTEM                      08:49 AM 
    LINK TO:                        TITLES PROFILE                              PROD 
                                                                                    
     ACTION: R    (A=ADD, C=CHANGE, D=DELETE, N=NEXT, R=RECALL)                     
                                                                                    
                   TABLE ID: LNSS                                                   
                                                                                    
                        KEY: JSMI413111                                             
                                                                                    
                      TITLE: SMITH,JOE                                              
       
                                                             STATUS CODE: A         
      EFF START DATE: 07202000   EFF END DATE:      LAST PROC DATE: 07202000        
     Z06 RECORD SUCCESSFULLY RECALLED                                               
     PLEASE ENTER FUNCTION                                                          
     F1-HELP   F3-END   F4-INTERRUPT   F6-PROCESS                                   

    Note: In the sample screen above, the KEY field shows an enabled User ID of ‘JSMI413’ with access to agency ‘111’.

General Information About LNSS[+]

System Records

Individual records are saved in LNSS based on the unique combination of agency, fund type and GAAP fund numbers.

Agency Number

You may access a different agency number if you have established security for that agency. Select your agency from the drop-down menu and click Go.

Screen Formats

Agency input boxes are the only fields available for entry. Other fields display information calculated or pulled from USAS GL account balances and are display only.

Screen Navigation

Press Tab to move between input boxes and calculate amounts without saving the disclosure. Click Save to save the disclosure with the data entered up to that point.

Save Feature

Click Save and the status box displays the message Saving data. Once a disclosure is saved, click the Edit/Delete action tab to make any changes to the existing disclosure.

Disclosure Screens

All disclosure screens require agency input in dollars and cents.

Amounts must be entered as either positive or negative to arrive at the correct ending balance.

The disclosure screens also include note disclosure sections for entry of descriptions of each type of obligation.

Log Into LNSS[+]

Once proper security authorization is established, you can access LNSS.

  1. Enter your USER ID.

    Your User ID is the same as your ACID used to access the Comptroller’s mainframe and USAS.

  2. Enter your PASSWORD.

    This is your USAS password.

  3. Click Submit to enter LNSS.

    If your LNSS security access is denied and an error message displays, contact your agency’s security coordinator.

    LNSS loads lease data and a status bar appears below the login information indicating that the system is processing. After processing is complete, LNSS returns to the Home screen.

Selecting an Agency and Choosing Note Disclosures[+]

The agency name(s) and number(s) are automatically retrieved from the security access permissible by your User ID. If you have access to multiple agencies, a drop-down menu displays a list of agencies for which you have access.

  1. Select an agency from the drop-down menu.
  2. Click Go.

    The screen automatically refreshes and displays the selected agency.

    LNSS Agency Selection Screen

    The left navigation menu displays the various categories of lease note disclosures to be submitted through LNSS.

  3. Click the applicable disclosure in the left navigation menu to begin entering disclosure information. Consider the following when choosing a disclosure category:
    • What activities are leases reported under at the agency:
      • Governmental
      • Business-type
      • Discrete component units
    • What type of lease disclosures are required for the agency:
      • Capital lease debt service
      • Capital assets under lease
      • Operating lease payments
      • Operating lease income
      • Some combination of the above
    • In what GAAP fund are these leases reported?
    • In what fund type are these leases reported?

Adding, Editing or Deleting Lease Note Disclosures[+]

  1. Choose the relevant activity type in the left navigation menu:
    • Governmental
    • Business type
    • Discrete component unit
  2. Click the disclosure (under your desired activity type) in the left navigation menu that you want to add, edit or delete.
    • Capital Lease Debt Service
    • Capital Asset Under Lease
    • Operating Lease Payments
    • Operating Lease Income

LNSS Note Discloser Selection Screen

Each disclosure screen has two actions: Add and Edit/Delete. This screen automatically defaults to the Add action tab.

Adding a Disclosure

LNSS Adding Record Screen

  1. Select the disclosure (under your desired activity type) in the left navigation menu to add.
    • Capital Lease Debt Service
    • Capital Assets Under Lease
    • Operating Lease Payments
    • Operating Lease Income

    When adding disclosures for Capital Lease Debt Service and Capital Assets Under Lease, agencies must also:

    1. Select the fund type where lease balances are reported from the drop-down menu.
    2. Click Go.
    3. Select the GAAP fund where lease balances are reported from the drop-down menu.
    4. Click Set GAAP Fund.
  2. Press Tab to navigate to the desired data entry field.
  3. Enter the applicable amounts and other information.
  4. Press Tab to move to the next data entry field.

    Note: If you have JavaScript, LNSS automatically calculates totals and differences (where applicable). If you do not have JavaScript, click Calc Totals for recalculation. You may edit and recalculate as many times as necessary before proceeding to the next step.

  5. Click Save at the bottom of the disclosure screen.

The screen automatically refreshes and moves the saved data to the EDIT/DELETE action tab.

Editing a Disclosure

If the agency and fund type combination is listed, a disclosure was previously saved to the system — only an edit/delete to this disclosure is allowed.

  1. Select the disclosure (under your desired activity type) in the left navigation menu to edit.
    • Capital Lease Debt Service
    • Capital Assets Under Lease
    • Operating Lease Payments
    • Operating Lease Income

    When editing disclosures for Capital Lease Debt Service and Capital Assets Under Lease, agencies must also:

    1. Select the fund type where lease balances are reported from the drop-down menu.
    2. Click Go.
    3. Select the GAAP fund where lease balances are reported from the drop-down menu.
    4. Click Set GAAP Fund.
  2. Click Edit/Delete action tab.

    LNSS displays the amounts as currently saved.

  3. Press Tab to navigate to the desired data entry field.
  4. Edit the amounts.
  5. Press Tab to move to the next data entry field.

    Note: If you have JavaScript, LNSS automatically calculates totals and differences, where applicable. If you do not have JavaScript, click Calc Totals for recalculation. You may edit and recalculate as many times as necessary before proceeding to the next step.

  6. Click Save.

    LNSS returns to the edit screen.

  7. Next, either:
    • Choose another disclosure to edit
    • Proceed to a different screen
    • Click Log Out to exit LNSS

Deleting a Disclosure

  1. Select the disclosure (under your desired activity type) in the left navigation menu to delete.
    • Capital Lease Debt Service
    • Capital Assets Under Lease
    • Operating Lease Payments
    • Operating Lease Income

    When deleting disclosures for Capital Lease Debt Service and Capital Assets Under Lease, agencies must also:

    1. Select the fund type where lease balances are reported from the drop-down menu.
    2. Click Go.
    3. Select the GAAP fund where lease balances are reported from the drop-down menu.
    4. Click Set GAAP Fund.
  2. Click Edit/Delete action tab to access the disclosure.

    LNSS displays the amounts as currently saved.

  3. Click Delete.

    LNSS returns to the edit/delete screen.

  4. Next, either:
    • Choose another disclosure to edit/delete
    • Proceed to a different disclosure screen
    • Click Log Out to exit LNSS

Reports[+]

LNSS reports are used as the agency’s official submission of lease summary information for the CAFR process. The ability to view reports is an option available on all disclosure screens. You may view a report for any agency for which you have established security. Reports are available in HTML and PDF formats or as a download into an Excel file. Reports may be selected at any time.

To generate a report:

  1. Click Reports in the left-hand navigation menu.
  2. Select the agency from the drop-down menu.

    LNSS Report Generating Screen

  3. Choose a relevant activity type from the report activity drop-down menu:
    • Governmental activities
    • Business-type activities
    • Discrete component unit activities
    • Fiduciary funds

    Note: Agencies must run a separate report for each activity type if the selected agency disclosed lease information in multiple activity types within the Capital Assets Under Lease or Capital Leases Debt Service Summary disclosures. The other reports capture multiple activity types within one report.

  4. Choose a report format from the drop-down menu (PDF, HTML or Excel).
  5. Click the appropriate button to generate the following reports:
    • Capital Leases Summary Report
    • Capital Assets Under Lease Report
    • Capital Lease Debt Service Summary Report
    • Capital Leases Debt Service Report
    • Operating Leases Payments Summary Report
    • Operating Leases Payments Report
    • Operating Leases Income Summary Report
    • Operating Leases Income Report
    • Operating Leases Payments Variance Report
    • Operating Leases Income Variance Report
    • Other Text/General Leasing Arrangements
    • All comments and file attachments

Certification[+]

From the Home screen:

  1. Select the Agency from the drop-down menu.
  2. Click Go.
  3. Click either:
    • View Certification Status

      Displays the agency’s certification status.

    • Certify

      Agencies must confirm all disclosures are complete by clicking Certify on the Home screen. Once certified, all disclosures are locked and only the ability to run reports is available.

      If an adjustment is necessary after certification, please contact your financial reporting analyst.

LNSS for Consolidated University Systems[+]

Each consolidated university system (Agency numbers 793, 794, 795, 797, 798 and 799) must enter the information for all of its component universities in total as described above. All entered amounts must reconcile to USAS amounts for the consolidated system and the consolidated university system AFR.

IMPORTANT: Components of university systems must not use LNSS.

Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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