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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 6 – Bonded Indebtedness (Submitted through both BRS Web Application and AFR closing package)

  1. Note 6 is required if the agency has bonds payable.
  2. Primary bond information is collected through BRS and must agree with information reported in Note 6 and in the following support schedules:
  3. Verify BRS is certified.
  4. List bonds separately by individual series with a description of each outstanding issue.
  5. 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.
  6. The following are required as they relate to the agency:
    1. 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.
    2. Report governmental activity bond refundings in their entirety in the agency’s operating statement and Note 6.
    3. 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
    4. Disclose general obligation bonds authorized (but unissued) at fiscal year-end.
    5. Disclose pledged future revenues for all bond issues for which one or more agency revenue streams are pledged.
    6. Report demand bond outstanding balances and all related letters of credit, standby purchase agreements, takeout agreements or other reacquisition provisions.
    7. Disclose interest rate swaps and their estimated effect on future fiscal years debt service.
    8. 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.

Note: Constitutional appropriation bonds are identified as general obligation bonds.

Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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