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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 19 – The Financial Reporting Entity
Jointly Governed Organizations

If an agency participates in a jointly governed organization (as described in Jointly Governed Organizations), the agency must disclose when the relationship is material to the financial statements.

Required Disclosures

For each material jointly governed organization, include:

  • Description of the Organization
    • Legal name of the organization
    • Purpose and nature of services provided
    • Participating governments
  • Governance Structure
    • Composition of the governing board
    • Method by which board members are appointed
    • The agency’s representation on the board (if applicable)
  • Agency’s Participation
    • Basis for participation (statutory, contractual, or voluntary)
    • The agency’s role in the organization
  • Financial Responsibility (if applicable)
    • Description of any required funding or contributions
    • Nature of any ongoing financial commitments

Disclosures must be sufficient for users to understand the nature of the relationship and the agency’s involvement. Disclose only material relationships. If applicable, disclose any related party transactions (as described in Related Parties) between the agency and the jointly governed organization that occurred during the fiscal year.