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Susan Combs  •  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Bond Schedules & Samples

Bond Schedules & Samples

Introduction

The scope of the statewide audit includes tests for compliance with the covenants of general obligation and revenue bond issues of the state. Therefore, it is essential for each agency that issues bonds to include its bond schedules in the agency’s AFR.

The Bond Reporting System (BRS) Web application is used to electronically submit certain bond payable long-term liability information. For more information, see Bond Reporting Instructions.

For each bond issue, BRS collects:

  • General descriptive information
  • Changes in bonded indebtedness
  • Debt service requirements to maturity
  • An analysis of funds available for debt service

A bond issue must be included on each of these schedules until — and including (except for the debt service requirements) — the year in which the bond issue is extinguished or retired. For more information, see Schedules 2A, 2B, 2C and 2D.

Also report a schedule of defeased bonds outstanding for each advance refunded/extinguished bond issue until the associated escrow fund is exhausted and all associated debt is liquidated. For more information, see Schedule 2E.

The schedule of early extinguishment and refunding documents the current year’s early extinguishment and refunding of bonds payable — including current refunding and advance refunding. For more information, see Schedule 2F.

The bond schedules serve three purposes:

  1. Provide issue-by-issue detail for descriptive and debt service schedule information that is summarized in the notes to the financial statements.
  2. Present analytical information related to the adequacy of the pledged revenue stream or other fund sources to meet the issuer’s obligations.
  3. Disclose compliance with provisions requiring maintenance of restricted accounts in support of the bonds.

Commercial paper (because it typically matures in 270 days or less and is considered a short-term debt) and variable rate notes are not bonds payable. If the maturity of these two items extends beyond the end of the subsequent fiscal year, or the intent is to continue to roll the debt instrument beyond the end of the subsequent fiscal year (this effectively extends the ultimate maturity), the liability under certain circumstances may be reported as long-term liabilities — notes and loans payable. As with all long-term liabilities, amounts due within the following fiscal year are recognized separately from the amounts due in all subsequent fiscal years.

The Comptroller of Public Account’s transparency project has been expanded to include debt-related information. Information not previously reported through the BRS application has been added — starting with fiscal 2013 data. Use the data fields in Section 1 and Section 2 of the first data entry screen to disclose this information for each bond issue. BRS Instructions have been updated in the Adding a New Bond Issue for the Current Fiscal Year and the Editing and Existing Bond Issue topics in order to address these additions.

All items in the bond schedules are disclosed on the full accrual basis of accounting. For more information, see Required Schedules and Samples.

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Susan Combs
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.state.tx.us
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