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 five topics for Management’s Discussion and Analysis (MD&A) that include:
   • Overview of financial statements
   • Financial summary
   • Detailed analysis
   • Significant capital assets and long-term debt activity
   • Current known facts, decision and conditions
2. Provide overview of financial statements:
   • Include different financial statements and their relationship with each other.
   • Focus on the differences in the types of information the statements provide.
3. Provide condensed financial summary that includes:
   • 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 unusual or infrequent items
   • Transfers
   • Change in net position
   • Ending net position from the statement of activities
4. Provide a quick high-level view of financial position and results of operation before the detailed analysis.
5. Provide key financial highlights.
6. Provide detailed analysis that includes:
   • Revenue and expenditure analysis of major funds and major programs.
   • Explanation for significant increases or decreases.
   • New funding sources or reductions in funding.
   • Significant changes in fund balances or net position.
7. Provide descriptions of significant capital asset and long-term debt activity that include:
   • Description of capital asset activity during the fiscal year, including intangible assets.
   • Details regarding the additions, disposals, changes in commitments and policy changes.
   • Description of significant long-term financing activity including debt, leases, SBITAs and PPPs.
   • Details regarding new debt agreements, debt retirements, repayments, changes in credit ratings, changes in debts limitations, policy changes and economic factors.
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.”