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
• Note 2
• Note 3
• Note 4
• Note 5
• Note 6
• Note 7
• Note 8
• Note 9
• Note 10
• Note 11
• Note 12
• Note 13
• Note 14
• Note 15
• Note 16
• Note 17
• Note 18
• Note 19
• Note 20
• Note 22
• Note 23
• Note 24
• Note 25
• Note 26
• Note 27
• Note 28
• Note 29
• Note 30
• Note 31
• Note 32
• View All

Note 18 – Management’s Discussion and Analysis

1. Provide condensed financial information that include:
   • Total assets (distinguishing between capital assets and other assets)
   • Total deferred outflows of resources (reporting separately from total assets)
   • Total liabilities (distinguishing between long-term liabilities and other liabilities)
   • Total deferred inflows of resources (reporting separately from total liabilities)
   • Total net position (distinguishing net investment in capital assets, restricted net position and unrestricted net position)
   • Program revenue (by major source)
   • General revenue (by major source)
   • Total revenue
   • Program expense (by function)
   • Total expense
   • Excess or deficiency
   • Contributions
   • Special and extraordinary items
   • Transfers
   • Change in net position
   • Ending net position from the statement of activities
2. Present financial information for both the current reporting period and the prior reporting period, separating governmental activities and business-type activities.
3. Provide an overall analysis on material changes in basic financial statements (such as changes in net position, revenues and expenses).
4. Determine whether the explanations are appropriate to the measurement focus of the financial statements for which a change is being explained.
5. Specifically address why the agency’s overall financial position has improved/increased or deteriorated/decreased.
6. Provide an analysis of significant budgetary variations in both original budget versus final amended budget and final amended budget versus actual.
7. Include descriptions of significant capital asset and long-term liability activity including:
   • Commitments made for capital expenditures
   • Changes in credit ratings and debt limitations that may affect financing of planned activities
8. Include descriptions of currently known facts, conditions or decisions that could affect the availability of fund resources.
9. Ensure the amounts reported in MD&A agree with related amounts in the financial statements.
10. Review to ensure that enough detail is provided to meet the Generally Accepted Accounting Principles (GAAP) reporting standards and requirements.
11. 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.”