REQUIRED NOTES TO THE FINANCIAL STATEMENTS

Transcription

1 REQUIRED NOTES TO THE FINANCIAL STATEMENTS Notes to the financial statements essential to fair presentation in the basic financial statements include the following. a. Summary of significant accounting policies, including: (1) A description of the government-wide financial statements, noting that neither fiduciary funds nor component units that are fiduciary in nature are included [(GASBS 4; 13), (GASBS 62; 90-94), (GASBS 63; 8)]. (2) A brief description of the component units of the financial reporting entity and their relationships to the primary government. This should include a discussion of the criteria for including component units in the financial reporting entity and how the component units are reported. Also include information about how the separate financial statements for the individual component units may be obtained [(GASBS 14; 59), (GASBS 34; 61)]. (3) A description of the activities accounted for in each of the following columns major funds, internal service funds, and fiduciary fund types presented in the basic financial statements [GASBS 38; 6]. (4) The measurement focus and basis of accounting used in the government-wide statements [GASBS 63; 7-8]. (5) The revenue recognition policies used in fund financial statements, including the length of time used to define available for purposes of revenue recognition in the governmental fund financial statements [(NCGAS 1; 62), (GASBS 38; 7)]. (6) The policy for eliminating internal activity in the government-wide statement of activities [GASBS 63; 8]. (7) The basis upon which inventory amounts are stated and, where practicable, indication of the method of determining the cost [GASBS 62; 201]. (8) The policy for capitalizing assets and for estimating the useful lives of those assets (used to calculate depreciation expense) and the method or methods used in computing depreciation with respect to major classes of depreciable assets. Governments that choose to use the modified approach for reporting eligible infrastructure assets should describe that approach [(GASBS 34; 18, 21), (GASBS 37; 6), (GASBS 42; 9), (GASBS 51; 7)]. (9) A description of the types of transactions included in program revenues and the policy for allocating indirect expenses to functions in the statement of activities [(GASBS 34; 47-48, 50-52, 54), (GASBS 37; 12-13), (GASBS 63; 8)]. 1

2 (10) The policy for defining operating and nonoperating revenues of proprietary funds [GASBS 34; 102]. (11) The definition of cash and cash equivalents used in the statement of cash flows for proprietary funds [GASBS 9; 9-11]. (12) The government's policy regarding whether to first apply restricted or unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position are available [(GASBS 34; 34), (GASBS 63; 8, 10)]. 18]. (13) The government's fund balance classification policies and procedures [GASBS 54; b. Cash deposits with financial institutions [(GASBS 3; 63), (GASBS 14; 11), (GASBS 40; 5), (GASBS 61; 11)]. c. Investments [(GASBS 3; 63, 75), (GASBS 31; 6, 15), (GASBS 40; 4-7, 9, 11, 14), (GASBS 53; 73), (GASBS 62; 210)]. d. Significant contingent liabilities [(NCGAS 4), (GASBS 6; 13), (GASBS 10; 58), (GASBS 34; 13), (GASBS 62; 106, 107, 113), (GASBS 63; 8), (GASBS 70; 4)]. e. Significant effects of subsequent events [(GASBS 56; 11, 12, 13, 14), (GASBS 63; 8, 11)]. f. Annual pension cost and net pension obligations (NPO) [(GASBS 27; 20, 21, 37), (GASBS 50; 7, 8)]. g. Annual other postemployment benefit (OPEB) cost and net OPEB obligations [GASBS 45; 24-25]. h. Significant violations of finance-related legal or contractual provisions and actions taken to address such violations [NCGAS 1; 12]. i. Debt service requirements to maturity [GASBS 38; 10]. j. Required disclosures about leases [(NCGAS 5; 27), (GASBS 38; 11), (GASBS 56; 4-7), (GASBS 62; 231, 239, 255, 256, 270)]. k. Construction and other significant commitments, including encumbrances, if appropriate [GASBS 54; 24]. l. Required disclosures about capital assets [(GASBS 34; 117, 118, 120), (GASBS 63; 8)]. 2

3 m. Required disclosures about long-term liabilities [GASBS 34; 119, 120]. n. Deficit fund balance or net position of individual nonmajor funds. o. Interfund balances and transfers [GASBS 38; 14, 15]. p. For each major component unit, the nature and amount of significant transactions with other discretely presented component units or with the primary government [GASBS 34; 128]. q. Disclosures about donor-restricted endowments [GASBS 63; 8]. ADDITIONAL DISCLOSURES The above required notes to the financial statements are not all-inclusive, and additional disclosures should be made if applicable. For example, such additional disclosures may include the following. a. Entity risk management activities [(GASBS 10; 58), (GASBS 14; 11), (GASBS 30; 6, 10), (GASBS 34; 6, 113), (GASBS 61; 11), (GASBS 62; 106, 107), (GASBS 63; 8), (GASBS 65; 20), (GASBS 70; 4) ]. b. Property taxes [(NCGAI 3; 6, 8), (GASBI 5; 4), (GASBS 38; 7), (GASBS 54; 5)]. c. Segment information for enterprise funds [(GASBS 37; 17), (GASBS 63; 7, 8)]. d. Condensed financial statements for major discretely presented component units [(GASBS 34; 127, fn49, fn50), (GASBS 61; 8), (GASBS 63; 8)]. e. Short-term debt instruments and liquidity [GASBS 38; 12]. f. Related-party transactions [GASBS 56; 4]. g. The nature of the primary government's accountability for related organizations [GASBS 14; 67]. h. Joint ventures and jointly governed organizations [GASBS 14; 75, 76, 77]. i. Debt extinguishments and troubled debt restructuring [(GASBS 7; 12), (GASBS 14; 11, 62, 63), (GASBS 34; 82, 113), (GASBS 53; 24), (GASBS 62; 4, 147, 148, 163), (GASBS 63; 8)]. 3

4 j. Nonexchange transactions, including grants, taxes, and contributions, that are not recognized because they are not measurable [(GASBS 34; 79), (GASBS 35; 5)]. k. Fund balance classification details [GASBS 54; 23]. l. Interfund eliminations in fund financial statements not apparent from headings [GASBS 34; 6]. m. Pension plans in both separately issued plan financial statements and employer statements [(GASBS 25; 41, 153), (GASBS 27; 20, 21, 27, 37), (GASBS 50; 2, 4, 5, 7, 8, 59), (GASBS 63; 8), (GASBS 67; 30, 34, 47)]. n. Postemployment benefit plans other than pension plans in separately issued plan financial statements and employer statements [(GASBS 25; 41), (GASBS 45; 24, 25), (GASBS 50; 5), (GASBS 63; 8)]. o. Bond, tax, or revenue anticipation notes excluded from fund or current liabilities (proprietary funds) [GASBS 63; 8]. p. Nature and amount of inconsistencies in financial statements caused by transactions between component units having different fiscal year-ends or changes in component unit fiscal year-ends [GASBS 14; 59]. q. In component unit separate reports, identification of the primary government in whose financial report the component unit is included and a description of its relationship to the primary government [GASBS 14; 64]. r. Reverse repurchase and dollar reverse repurchase agreements [(GASBS 3; 6, 63, 76, 80), (GASBS 14; 11), (GASBS 31; 6), (GASBS 40; 5, 9), (GASBS 61; 11)]. s. Securities lending transactions [(GASBS 28; 11, 13, 14, 15), (GASBS 31; 6), (GASBS 40; 9, 10)]. t. Special assessment debt and related activities [GASBS 6; 20, 21]. u. Demand bonds [GASBI 1; 11, 12]. v. Landfill closure and postclosure care [GASBS 18; 17, 18]. w. Pollution remediation obligations [GASBS 49; 25, 26]. x. On-behalf payments for fringe benefits and salaries [GASBS 24; 12]. y. Entity involvement in conduit debt obligations [GASBI 2; 3]. 4

5 z. Sponsoring government disclosures about external investment pools reported as investment trust funds [(GASBS 31; 17), (GASBS 63; 8)]. aa. The amount of interest expense included in direct expenses in the government-wide statement of activities [GASBS 34; 46]. bb. Significant transactions or other events that are either unusual or infrequent but not within the control of management [GASBS 34; 56, 89]. cc. Nature of individual elements of a particular reconciling item, if obscured in the aggregated information in the summary reconciliation of the fund financial statements to the government-wide statements [GASBS 34; 77]. dd. Discounts and allowances that reduce gross revenues, when not reported on the face of the financial statements [GASBS 34; fn41]. ee. Disaggregation of receivable and payable balances [GASBS 63; 8]. ff. Impairment losses, idle impaired capital assets, and insurance recoveries, when not otherwise apparent from the face of the financial statements [(GASBS 42; 20, 21), (GASBS 62; 45-49), (GASBS 63; 8)]. gg. The amount of the primary government's net assets at the end of the reporting period that are restricted by enabling legislation [(GASBS 34; 34), (GASBS 46; 3, 4), (GASBS 63; 8, 10)]. hh. Termination benefits [GASBS 47; 18, 19, 20, 21]. ii. Future revenues that are pledged or sold [GASBS 48; 21, 22]. jj. Derivative instruments [GASBS 53; 68, 69]. kk. Conditions and events giving rise to substantial doubt about the government's ability to continue as a going concern [GASBS 56; 19]. ll. Required disclosures about bankruptcies [GASBS 58; 15]. mm. Stabilization arrangements [GASBS 54; 26]. nn. Minimum fund balance policies [GASBS 54; 27]. 5

6 oo. Information about major special revenue funds [(NCGAS 1; 30), (GASBS 14; 54), (GASBS 54; 21, 30-32)]. pp. Changes in the manner of or basis for presenting corresponding items for two or more periods in comparative financial statements [GASBS 63; 8]. qq. Asset valuation allowances [GASBS 62; 33]. rr. Short-term obligations [GASBS 63; 8]. ss. Long-term construction-type contracts [GASBS 62; 116]. tt. Effects of prior-period adjustments on the change in net position of prior periods [(GASBS 62; 50), (GASBS 63; 8)]. uu. Accounting changes and error corrections [GASBS 63; 8]. vv. Investments in common stock [(GASBS 3; 75), (GASBS 62; 210)]. ww. Description of receivables and payables that represent contractual rights to receive money or contractual obligations to pay money on fixed or determinable dates, whether or not there is any stated provision for interest, including the effective interest rate and the face amount [GASBS 65; 15]. xx. Nonmonetary transactions [GASBS 62; 280]. yy. Foreign currency transactions [GASBS 62; 170, 171]. zz. Insurance enterprises [GASBS 65; 20]. aaa. Lending and mortgage banking activities [GASBS 62; 473, 474]. bbb. Retail land sales operations [GASBS 62; 330]. ccc. Research and development arrangements [GASBS 62; 384]. ddd. Regulated business-type activities [(GASBS 62; 494, 500), (GASBS 63; 8)]. eee. Information about deferred outflows and deferred inflows of resources and the effect on net position [GASBS 63; 13, 14]. fff. Service concession arrangements [GASBS 60; 16, 17, 18]. 6

7 ggg. Nonexchange financial guarantees extended or received [GASBS 70; 15, 16, 17]. 7