Reporting Requirements for Annual Financial Reports of State Agencies and Universities
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)
- 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.
- Verify that debt service requirements are presented for five years, and five-year increments thereafter, for both principal and interest amounts.
- 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.
- 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.
- Ensure that all long-term liabilities are split between due within one year and due in more than one year.
- 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.
- Ensure that text includes the following summarized information to support required disclosure:
- Amount of unused lines of credit
- Assets pledged as collateral for debt
- Terms specified in debt agreements related to significant:
- events of default with finance-related consequences
- termination events with finance related consequences
- subjective acceleration clauses
- Verify that the notes from direct borrowings and notes from direct placements are reported in debt service funds (FT03).
- 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.”