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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 16 – Subsequent Events

Any events that occur between the end of the period covered by the financial statements (08/31/CY) and the statement completion date (11/20/CY) that may materially affect the financial condition of the agency are to be considered subsequent events.

If your agency has any subsequent events, provide sufficient detail in note disclosures. Some examples of subsequent events that may occur are:

  • Issuance of debt instruments. Include the following in Note 16:
    • Par value
    • Date of issuance
    • Name of specific series (if applicable)
    • Purpose of issuance

    Note: Present information pertaining to issuance of debt instruments in a table format. For an example of the table format, see the Sample.

  • Indication of an intent to issue debt before the end of February of the current fiscal year
  • Creation of a new component unit
  • A change in the structure of funding for the agency
  • Subsequent material change in investments/property balances
  • Significant contractual or grant arrangements
  • Other significant administrative or accounting activity
  • Settlement of material litigation
  • Significant changes in financial markets that affect the agency
  • Other events (such as a hurricane, fire or flood) that have a significant fiscal impact

Evaluate events that occur prior to 11/20/CY that affect any estimates used in preparing the financial statements. Adjust the financial statements for any changes in estimates as a result of these events.

For more information, refer to GASB 56, paragraphs 8–14.

Glenn Hegar
Texas Comptroller of Public Accounts
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