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

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Note 8 – Leases/SBITAS

1. The present value of leases or subscriptions ties to right to use lease obligation or right to use subscription obligation amount on balance sheet/statement of net position. The future minimum lease or subscription payments are presented separately for five fiscal years and five-year increments thereafter for both principal and interest amounts. Disclose:
   1. Debt service information is submitted through the LNSS web application in the Right to Use Lease Debt Service or Right to Use Subscription Debt Service left navigation menus.
2. For right to use lease obligations, disclose:
   1. General leasing arrangements
   2. 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 for both principal and interest amounts
   3. Total variable and other payments (for example: residual value guarantees and termination penalties) not included in the lease liability for the current reporting period
   4. Components of any loss associated with an impairment (gross impairment loss less any related change in lease liability)
   5. Lease commitments for which the lease term has not begun
3. For right to use lease income, disclose:
   1. General leasing arrangements
   2. Minimum future lease income for noncancelable leases of more than one year for each of the next five fiscal years and thereafter in five-year increments for both principal and interest amounts
   3. Total variable and other income (i.e. residual value guarantees, termination penalties) not included in the lease receivable for the current reporting period
   4. Lease receivable information is submitted through the LNSS web application in the Right to Use Lease Income left navigation menus
   5. Total current year income
4. For regulated lease income, disclose:
   1. General leasing arrangements
   2. Minimum future lease income for regulated leases of more than one year for each of the next five fiscal years and thereafter in five-year increments for both principal and interest amounts
   3. The total amount of inflows of resources (for example: lease revenue, interest revenue and any other lease-related inflows) for the current reporting period
   4. The amount of inflows of resources recognized in the reporting period for variable payments not included in expected future minimum payments
   5. Lease receivable information is submitted through the LNSS web application in the Regulated Lease Income left navigation menus
5. For right to use subscription obligations (SBITAs), disclose:
   1. General description of the SBITA arrangement. This would include any variable payments not included in the SBITA liability.
   2. Total amount of subscription assets and the related accumulated depreciation.
   3. Total amount of payments made for variable payments and other payments (for example, termination penalties) not included in the SBITA liability.
   4. Principal and interest payments to be made (presented separately) for each of the next five years individually and in five-year increments thereafter.
   5. Any commitments under SBITAs before the SBITA term commences.
   6. Any impairment losses and any related change in SBITA liability.
6. Submit a copy of the agency’s applicable note from its published AFR through the LNSS 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.”