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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 5 – Long-Term Liabilities (Submitted through the LTLN web application)

  1. Verify that each line item of LTLN (for example, loans and notes payable) ties to the AFR balance sheet/statement of net position. Changes in debt balances are presented.
  2. Verify that debt service requirements are presented for five years, and five-year increments thereafter, for both principal and interest amounts.
  3. Verify that the principal amount for the first year of the debt service (by applicable category) is equal to the amount due within one year.
  4. Ensure that text includes description of claims & judgments, pollution remediation obligations, asset retirement obligations, direct borrowings and direct placements, notes and loans payable (or any other category if applicable) to support required disclosure.
  5. Ensure that all long-term liabilities are split between due within one year and due in more than one year.
  6. Verify that direct borrowings and direct placements of debt are disclosed separately from all other debt. See Direct Borrowings and Direct Placements for more information.
  7. Ensure that text includes the following summarized information to support required disclosure:
    1. Amount of unused lines of credit
    2. Assets pledged as collateral for debt
    3. Terms specified in debt agreements related to significant:
      1. events of default with finance-related consequences
      2. termination events with finance related consequences
      3. subjective acceleration clauses
  8. Verify that the notes from direct borrowings and notes from direct placements are reported in debt service funds (FT03).
  9. Submit a copy of the agency’s applicable note from its published AFR through the LTLN 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 any 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.”

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