Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Resources

Agency Fiscal Year-End USAS Adjustments and AFR Checklist
Step 8 – Notes to the Financial Statements

• Note 1
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Note 17 – Risk Management

1. Disclose the types of risks faced by the agency and describe how the agency handles each type of risk.
2. Disclose if the number of settlements exceeded insurance coverage in any of the past three years.
3. If the agency participates in a risk pool, describe the arrangement and specifically disclose the rights and responsibilities of both the agency and the pool.
4. If the agency retains some risk of loss, disclose this fact and specify what the liability for unpaid claims represents and how it is calculated.
5. If the agency retains some risk of loss, the agency must provide a tabular reconciliation of the claims liability for each of the two most recent fiscal years in addition to distinguishing the following:
   1. Claims liability at the beginning of the year
   2. Claims incurred during the year
   3. Changes in the estimate for claims of prior years
   4. Payments on claims
   5. Claims liability at the end of the year
6. If the agency sponsors a public-entity risk pool, the agency must do one of the following:
   1. Make reference to the separately issued report of the public-entity risk pool
      –OR–
   2. Provide all the note disclosures required for public-entity risk pools
7. If the agency has concentrations or constraints and an event associated with the concentration or constraint that could cause a substantial impact, disclose:
   1. Sufficient information to enable users of financial statements to understand the nature of the circumstances
   2. The vulnerability to the risk of a substantial impact associated with the concentration or constraint
   3. Any actions taken by the agency (prior to the issuance of the financial statements) to mitigate the risk.
8. If applicable, submit a copy of the agency’s applicable note 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 the note contains a table, include the table in the Word document — rather than as a separate Excel document or other database application file. Do NOT submit a note to indicate “not applicable.”