FMX Home
Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Notes & Samples

NOTE 8 – Leases
Sample (Illustrative, may not tie to exhibits)

Operating Leases

Included in the expenditures reported in the financial statements are the following amounts of rent paid or due under operating lease obligations:

Fund Type Amount
General Fund $ 75,000.00

Future minimum lease rental payments under noncancelable operating leases having an initial term in excess of one year are:

Year Ended Aug. 31,  
XXX1 (Future Year 1) $  100,000.00
XXX2 (Future Year 2) 100,000.00
XXX3 (Future Year 3) 100,000.00
XXX4 (Future Year 4) 100,000.00
XXX5 (Future Year 5) 100,000.00
XXX6-10 (Future Years 6-10) 300,000.00
XX11-15 (Future Years 11-15) 200,000.00
XX16-20 (Future Years 16-20) 200,000.00
XX21-25 (Future Years 21-25) 100,000.00
XX26-30 (Future Years 26-30) 100,000.00
XX31 and beyond 50,000.00
Total Minimum Future Lease Rental Payments $1,450,000.00

Note: Agencies must also provide a table for any component units.

Important: Enter all amounts in dollars and cents.

Included in the revenues reported in the financial statements are the following amounts of rental payments received under noncancelable operating leases of buildings, equipment and land leased to outside parties.

Future minimum lease rentals under these noncancelable operating leases having an initial term in excess of one year are:

Year Ended Aug. 31,  
XXX1 (Future Year 1) $  20,000.00
XXX2 (Future Year 2) 20,000.00
XXX3 (Future Year 3) 20,000.00
XXX4 (Future Year 4) 20,000.00
XXX5 (Future Year 5) 20,000.00
XXX6 and beyond 60,000.00
Total Minimum Future Lease Rentals $160,000.00

Note: Agencies must also provide a table for any component units.

Important: Enter all amounts in dollars and cents.

The historical cost of the leased buildings and leased land is $75,000.00 and $5,000.00, respectively. The carrying value of the assets was $50,000.00 and related accumulated depreciation was $20,000.00. There were no reported contingent rental revenues.

Capital Leases

The Sample Agency entered into long-term leases for financing the purchase of certain capital assets. Such leases are classified as capital leases for accounting purposes and are recorded at the present value of the future minimum lease payments at the inception of the lease. A summary of original capitalized costs of all such property under lease in addition to the accumulated depreciation as of Aug. 31, 20CY, is presented below.

Assets Under Capital Leases
Year Ending Aug. 31, 20CY

  Primary Government
  Governmental Activities Business-Type Activities Discretely Presented Component Units
Class of Property Assets under Capital Lease Accumulated Depreciation Total Assets under Capital Lease Accumulated Depreciation Total Assets under Capital Lease Accumulated Depreciation Total
Land $               - $                  - $               - $               - $          - $               - $               - $               - $               -
Buildings             1,500.17 (65.94) 1,434.23
Furniture & Equipment. 92,479.05 (12,221.78) 80,257.27 5,359.78 (51.23) 5,308.55 2,225.35 (125.13) 2,100.22
Vehicles, Boats, etc. 3,337.46   3,337.46 12,496.65   12,496.65 750.09 (301.46) 448.63
Totals $95,816.51 $(12,221.78) $83,594.73 $17,856.43 $(51.23) $17,805.20 $4,475.61 $(492.53) $3,983.08

Future minimum lease payments under these capital leases, together with the present value of the net minimum lease payments at fiscal year-end, are:

Future Capital Lease Payments
Year Ending Aug. 31, 20CY

  Primary Government
  Governmental Activities Business-Type Activities Discretely Presented Component Units
Year Principal Interest Total Future
Min. Lease
Payments
Principal Interest Total Future
Min. Lease
Payments
Principal Interest Total Future
Min. Lease
Payments
XXX1 $ 1,000.00 $ 1,970.85 $ 2,970.85 $  500.00 $  655.16 $ 1,155.16 $250.00 $ 66.21 $316.21
XXX2 1,000.00 1,880.13 2,880.13 500.00 615.78 1,115.78 250.00 44.05 294.05
XXX3 1,000.00 1,795.96 2,795.96 500.00 570.05 1,070.05 250.00 22.96 272.96
XXX4 1,000.00 1,706.45 2,706.45 500.00 525.36 1,025.36 - - 0
XXX5 1,000.00 1,620.37 2,620.37 500.00 480.74 980.74 - - 0
XXX6-XX10 5,000.00 4,590.99 9,590.99 2,500.00 1,320.91 3,820.91 - - 0
XX11-XX15 5,000.00 3,285.78 8,285.78 2,500.00 660.75 3,160.75 - - 0
XX16-XX20 7,500.00 1,968.01 9,468.01 - - - - - 0
Totals $22,500.00 $18,818.54 $41,318.54 $7,500.00 $4,828.75 $12,328.75 $750.00 $133.22 $883.22
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
Comptroller.Texas.Gov | FMX
FMX Sitemap | Contact FM
Accessibility Policy | Privacy and Security Policy