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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 20 – Stewardship, Compliance and Accountability

Prepare the basic financial statements in conformity with GAAP. To address stewardship, compliance and accountability in the preparation of the financial statements, disclose the following (if applicable) per the National Council on Governmental Accounting (NCGA) Statement 1:

  • Material violations of finance-related legal or contractual provisions (include the nature of the violation and the action[s] taken to address the violation)
  • Explanation of a deficit fund balance or net position balance in an individual fund that is not visible on the face of the statement of net position.
  • Explanation of expenditures exceeding appropriations in individual funds
  • Discussion of changes in accounting principles
  • Changes in reporting of loans
  • Change in fund types
  • Non-exchange transactions that were not recognized in the financial statements because they were not measurable

NCGA statements are authorized in GASB 1 as the primary authoritative source of GAAP for state and local governments.

Submit a copy of the agency’s Note 20 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 20 does not apply, do not submit a note to indicate “not applicable.”

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