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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

Resources

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

Note 2 – Capital Assets / Right to Use Assets (Submitted Through the CANSS web application)

Verify that the SPA amounts tie to the CANSS certified amounts as well as the USAS capital asset GL and COBJ amounts for each category of right to use (RTU) assets:

  1. The following CANSS columns match each category of capital asset to both the balance sheet/statement of net position and the operating statement:
    1. Beginning Balance column equals PY ending balances.
    2. Adjustments column equals restatements COBJ 3891. All restatements require an explanation in the Note 14 restatements, including those in FT11. Agencies with restatements in FT05 or FT15 must also separately disclose the capital asset restatement amounts in Note 14.
    3. Completed CIP column nets to zero having no effect on the operating statement.
    4. Inc-Int’agy Trans column equals the sum of:
      • COBJ 3843/7858 – net increase in net assets due to interagency transfer of capital assets
      • Accumulated depreciation
      • Accumulated amortization
    5. Dec-Int’agy Trans column equals the sum of:
      • COBJ 7858/3843 – net decrease in net assets due to interagency transfer of capital assets
      • Accumulated depreciation
      • Accumulated amortization

      Note: The net increase of an interagency capital asset transfer must match the net decrease of an interagency capital asset transfer transaction. Agencies using local depreciation and amortization calculations must record the same amount agreed upon during the interagency transfer of capital assets. For more information on capital asset transfers, see Recording Interagency Transfers of Capital Assets.

    6. Additions column equals the sum of:
      • Total capital outlay plus capital donations or capital contributions
      • Accumulated depreciation equals total depreciation expense
      • Accumulated amortization equals total amortization expense

      Note: Capital asset additions for FT05 may not match the CANSS “Additions” column.

    7. Deletions column equals the sum of:
      • Net of proceeds from the sale of capital assets and any gain or loss on the sale of capital assets (COBJ 3834)
      • Accumulated depreciation
      • Accumulated amortization
    8. Ending Balance column for each category of capital asset equals USAS capital asset GL and COBJ amounts
  2. Depreciation expense is recorded in USAS with COBJs 7936, 7937, 7938 and 7939.
  3. Amortization expense is recorded in USAS with COBJs 7877, 7878 and 7879.
  4. RTU amortization expense is recorded in USAS with COBJ 7885.

Verify that the CANSS certified amounts tie to the USAS capital asset GL and COBJ amounts for each category of RTU assets:

  1. The following CANSS columns match each category of RTU asset to both the balance sheet/statement of net position and the operating statement:
    1. Beginning Balance column equals PY ending balances.
    2. Adjustments column equals restatements COBJ 3891. All restatements require an explanation in Note 14 restatements, including those in FT11. Agencies with restatements in FT05 or FT15 must also separately disclose the capital asset restatement amounts in Note 14.
    3. Additions column equals the sum of:
      • Total capital outlay
      • Accumulated amortization (which equals total amortization expense)

        Note: RTU asset additions for FT05 may not match the CANSS Additions column.

    4. Deletions column equals the sum of accumulated amortization.
    5. Ending Balance column for each category of RTU asset equals USAS RTU asset GL and COBJ amounts.

Verify that the balance is zero at the GAAP source/object level using the DR206 – Review Govt-Wide Basis Conversion report located in the FMQuery–SIRS AFR Desk Review menu for the following:

  1. The sum of capital outlay for all governmental fund types net to zero with the sum of capital outlay presented in basis conversion FT11.
  2. Proceeds from the sale of capital assets nets to zero between governmental fund types and FT11.

    Note: Depreciation and amortization will not tie to SPA for those agencies opting to use local calculation methods instead of SPA calculated values.

  3. Disclose all of the following Non-Monetary Transactions information for non-monetary transactions that occurred during the fiscal year in the OTHER TEXT box in the CANSS web application:
    • Nature of the non-monetary transactions (include a breakdown by capital asset type)
    • Measurement attributes applied to the transferred assets
    • Gains or losses recognized on those transactions
  4. Universities that do not report to SPA are required to submit the fiscal year-end External Agencies Transfers In and Out (excel) file through the CANSS web application.