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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

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

Note 2 – Capital Assets (Submitted Through the CANSS web application)

  1. For each category of capital assets, the SPA amounts tie to the CANSS certified amounts as well as the USAS capital asset GL and COBJ amounts.
  2. 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. Agencies with restatements other than capital assets reported in FT05 or FT15 must provide a breakdown of the items that make up the restatement amount 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 – 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 – 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
  3. Depreciation expense is recorded in USAS with COBJs 7936, 7937, 7938 and 7939.
  4. Amortization expense is recorded in USAS with COBJs 7877, 7878 and 7879.

Verify 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 the following information (as required by GASB 62, paragraph 22) in the CANSS web application with respect to interest costs for qualifying assets for business-type and component unit activities:
    • For a fiscal year in which no interest cost is capitalized, disclose the amount of interest costs incurred and charged to expense during the fiscal year.
    • For a fiscal year in which some interest cost is capitalized, disclose the total amount of interest costs incurred during the fiscal year and the amount thereof that has been capitalized.
  4. Disclose the following information (as required by GASB 62, paragraph 280) for non-monetary transactions that occurred during the fiscal year in the Other Text box of the CANSS web application:
    • Nature of the non-monetary transactions (include a breakdown by capital asset type and COBJ)
    • Basis of accounting for the assets exchanged

      –AND–

    • Gains or losses recognized on those exchanges
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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