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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 8 – Leases

  1. Present value of capital leases ties to capital lease obligation amount on balance sheet/statement of net position. Future minimum lease payments are presented for five fiscal years and five-year increments thereafter for both principal and interest amounts.
    1. Debt service information is submitted through the LNSS web application in the Capital Lease Debt Service left navigation menus.
    2. Provide a listing of capital assets under lease by major assets class and accumulated depreciation in total, for any fund type with a capital lease obligation greater than zero.
  2. For operating lease obligations, disclose:
    1. General leasing arrangements
    2. Current year costs reported in the financial statements for rents paid or due under operating leases
    3. Minimum future noncancelable sublease rentals
    4. Minimum future lease payments for noncancelable leases of more than one year for each of the next five fiscal years and five-year increments thereafter
    5. Total contingent rental payments for the fiscal year
  3. For operating lease rentals, disclose:
    1. General leasing arrangements
    2. Cost and carrying amount of leased assets by major assets class and accumulated depreciation in total
    3. Minimum future lease rentals for noncancelable leases of more than one year for each of the next five fiscal years and thereafter in five-year increments
    4. Total contingent rentals for the fiscal year
    5. Total current year income
  4. Submit a copy of the agency’s Note 8 from its published AFR. The required format is a Microsoft Word document with the header information (agency name/number and Note number/name) sent as an attachment to frs@cpa.texas.gov.
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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