Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Resources

Agency Fiscal Year-End USAS Adjustments and AFR Checklist
Step 7 – Statement of Cash Flows

Each agency with enterprise funds (FT05) and internal service funds (FT06) must enter and certify the statement of cash flows (SOCF) information in the Statement of Cash Flows (SOCF) web application (even if there is no activity) by Nov. 20.

1. Submit a copy of the agency’s SOCF from its published AFR. The required format is a Microsoft Excel document with the header information (agency name/number and document title) uploaded through the ONDSS web application.
2. Verify that the SOCF submitted through the SOCF web application ties to the submitted copy of the agency’s SOCF from its published AFR.
3. Use the SOCF Reconciliation template for each GAAP fund when the SOCF submitted through the SOCF web application does not tie to the agency’s SOCF from its published AFR. Upload the SOCF Reconciliation template through the ONDSS web application.

   Note: Screen prints from the SOCF web application will not be accepted in lieu of the required copy of the SOCF from the agency’s published AFR.

4. Do not report paid-on-behalf payroll-related costs (such as retirement, insurance and unemployment) and the related additional appropriated revenues in USAS to GL account 4050 — Payments to Employees. These amounts can only be reported on the agency’s SOCF from its published AFR.
5. Verify that the Cash Flows from Operating Activities section of the SOCF web application only includes amounts from providing services and producing and delivering goods. Also verify that Proceeds from Loan Programs and Payments for Loans Provided only includes program loan activity. For more information, see Cash Flows from Operating Activities.
6. Do not include amounts to acquire, construct or improve capital assets in the Cash Flows from Noncapital Financing Activities section of the SOCF web application. Also, do not include program loan amounts in the Proceeds from Loan Programs section.
7. Verify that the Cash Flows from Capital and Related Financing Activities section of the SOCF web application only includes amounts to acquire and dispose of capital assets, borrow money to acquire, construct or improve capital assets and to repay the principal and interest amounts.
8. Ensure the Cash Flows from Investing Activities section of the SOCF web application only includes amounts to make and collect loans (except program loans) and to acquire and dispose of debt or equity instruments.
9. Ensure that the Net Cash Provided (Used) by Operating Activities in the Reconciliation section of the SOCF web application ties to the Net Cash Provided (Used) by Operating Activities in the Cash Flows from Operating Activities section.
10. Ensure that the USAS GL account 4806 Pension Expense row in the Reconciliation section of the SOCF web application, ties to COBJ 7036 – Pension Expense Proprietary.
11. Ensure that the USAS GL account 4808 OPEB Expense in the Reconciliation section of the SOCF web application, ties to COBJ 7056 — OPEB Expense Proprietary.
12. Ensure that USAS GL Account 4899 Borrowing Under Lease Purchase in the Non-Cash Transactions section of the SOCF web application, ties to Note 5’s addition column for lease obligations submitted through the LTLN web application.
13. Ensure the SOCF web application does not contain positive payments or negative proceeds.
14. Submit an explanation in the SOCF Reconciliation Template when the Operating Income and Cash Flow Categories Classification Differences row in the Reconciliation section of the SOCF web application is the greater than 5% of the Total Adjustments.
15. Review balances using the following FMQuery–SIRS reports (located in the AFR Desk Review menu):
    • DR300 — Review Cash Flow Stmt (BS,SNA-8580)
      Cash and Cash Equivalents — September 1 20PY must tie to the prior fiscal years’ ending balance published in the ACFR. Record any differences as a restatement in USAS to GL account 4705 Restatements of the SOCF web application. Contact your financial reporting analyst for prior fiscal years’ ending balance questions.
    • DR301 — Review Cash Flow Stmt (BS,SNA-8580)
      Verify that the Cash and Cash Equivalents, August 31, 20CY in the SOCF web application ties to the current fiscal years’ ending balance reported on the statement of net position — proprietary funds.
    • DR302 — Review Operating Income (Loss) (StmtOfChangesAssetsLiab-8600)
      Verify that the Operating Income (Loss) in the SOCF web application ties to the operating income (loss) on the statement of revenues, expenses and changes in net position — proprietary funds.
    • DR303 — Review Bad Debt Expense (StmtofChangesAssetsLiab-8600)
      Verify that the Bad Debt Expense in the SOCF web application ties to bad debt expense on the statement of revenues, expenses and changes in net position — proprietary funds (except for universities). Bad debt expense is never a negative number.
    • DR304 — Review Depreciation Expense (StmtOfChangesAssetsLiab-8600)
      Verify that the Depreciation and Amortization in the SOCF web application ties to depreciation and amortization on the statement of revenues, expenses and changes in net position — proprietary funds.
    • DR305 — Review Change FV Investment (StmtOfChangesAssetsLiab-8600)
      Verify that the Net Change in Fair Value of Investments in the SOCF web application ties to the net total of the following COBJs:
      • 3838 — Net Inc/Dec Fair Val-Non-Oper Rev-Op G&C
      • 3844 — Net Inc/Dec Fair Valu Inv Non-Op Pledged
      • 3845 — Net Inc/Dec Fair Value Inv Oper Pledged
      • 3872 — Net Inc/Dec Fair Valu-Oper Rev-Noncash
      • 3899 — Net Inc/Dec Fair Value-Gen (Non-Prgm)

Note: Agencies with variances between the Net Change in Fair Value of Investments in the SOCF web application and the total operating statement’s COBJs (listed above) must submit the SOCF Reconciliation template through the ONDSS web application with an explanation of the variances.