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 6 – Bonded Indebtedness (Submitted through both BRS web application and AFR closing package)
- Note 6 is required if the agency has bonds payable.
- Primary bond information is collected through BRS and must agree with information reported in Note 6 and in the following support schedules:
- Verify BRS is certified.
- List bonds separately by individual series with a description of each outstanding issue.
- Disclose direct borrowings and direct placements of debt and separate from other debt. See Direct Borrowings and Direct Placements for more information.
- Verify the bonds outstanding amount reconciles to the bonds payable for general obligation bonds and revenue bonds per the statement of net position, balance sheet, Schedule 2B, BRS and USAS.
- The following are required as they relate to the agency:
- Debt service requirements (principal and interest payments) must be in agreement for each of the five fiscal years following the current fiscal year and in five-year increments reported thereafter until maturity.
- Report governmental activity bond refundings in their entirety in the agency’s operating statement and Note 6.
- Report advance refunding of bonds during the reporting period and disclose the difference between cash flows of old and new debt and the economic gain/(loss) resulting from the refunding
- Disclose general obligation bonds authorized (but unissued) at fiscal year-end.
- Disclose pledged future revenues for all bond issues for which one or more agency revenue streams are pledged.
- Report demand bond outstanding balances and all related letters of credit, standby purchase agreements, takeout agreements or other reacquisition provisions.
- Disclose interest rate swaps and their estimated effect on future fiscal years debt service.
- GASB 65 no longer nets gain/loss on bond refunding against bonds payable. Report unamortized gain/loss balances as deferred inflows of resources or deferred outflows of resources.
- Upload all applicable schedules and submit a copy of the agency’s Note 6 from its published AFR through the BRS web application. All schedules must be submitted in the Microsoft Excel format. The required note format is a Microsoft Word document (latest version: docx) with header information that includes: agency name/number and note number/name. If the note contains a table, include the table in the Word document — rather than as a separate Excel document or other database application file.
Note: Constitutional appropriation bonds are identified as general obligation bonds.