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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 13 – Continuance Subject To Review

If your agency is subject to the Texas Sunset Act, disclose the effective date of abolishment unless continued in existence by a certain legislative session. If the agency is to be abolished, indicate the last date the agency may continue to operate to close out its operations. This time period is usually one year. For information specific to your agency, contact the Sunset Advisory Commission at (512) 463-1300 or see the Comptroller Manual of Accounts, Volume I.

  1. Click on State Agencies in the Browse menu.
  2. Select your agency.
  3. Review information contained in the Notes section.

As the dates for review by the Sunset Advisory Commission are subject to change, verify the dates in this note for accuracy after each legislative session.

Going Concern Considerations

GASB 56, paragraphs 16–19, requires preparers of financial statements to evaluate whether there is substantial doubt about the agency’s ability to continue as a going concern for 12 months beyond the financial statement date. Considerations such as legislation, default of bonds, legal proceedings and recurring unsubsidized operating losses in business-type activities are some of the indicators that there is substantial doubt.

If evaluation indicates that there is substantial doubt that the agency can continue as a going concern, disclose the following as applicable:

  • Significant events giving rise to the assessment
  • Possible effects of such events
  • Government officials’ evaluation and plans (such as prospective financial information)

Submit a copy of the agency’s Note 13 from its published AFR through the ONDSS web application. The required format is a Microsoft Word document (latest version: docx) with header information that includes: agency name/number and note number/name. If Note 13 does not apply, do not submit a note to indicate “not applicable.”

Glenn Hegar
Texas Comptroller of Public Accounts
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