BIAS Help CenterFinancial Annual ReportingHow do I create Notes to the Financial Statement?

How do I create Notes to the Financial Statement?

DO NOT update your notes from the prior year because the SAO often rearranges the format.

Prepare Notes to the Financial Statements

  • Copy from BIAS Files to Preparer Files the appropriate notes template.
    • City Template for Notes to the Financial Statements.docx
    • District Template for Notes to the Financial Statements.docx
    • Town Template for Notes to the Financial Statements.docx
  • Rename file to Notes to the Financial Statements.docx
  • Insert tables from Workbook for Schedules and Notes.xlsx by following instructions highlighted in yellow.

What to do..

  • Compare the boiler-plate language from the state auditor's template to the current set of notes for the reporting year.
  • If an item is not used, i.e. Interfund Loans, delete it from from the notes.

Delete all unnecessary sections first, then re-number the remaining items at one time.

Note:  1

  • Check the template budget language.  Insert the reporting year budget and actual totals.
  • Capitalization Policy has been moved to Capital Assets as a sub-note.
  • Reserved Fund Balance - Describe the nature of the reserve and amount.  This should follow the C4/C5 ending balance presentation.

Note:  Deposits and Investments

  • Equals the bank statements and page 2 of the December Treasurer's Report.
  • LGIPs are presented at fair market value.  CDs are presented at cost
  • Copy table from the Investments tab into the notes.  Paste into Word as a picture

Excel Table (Investment tab) Copied To Notes Template

Note:  Property Tax

  • Contact the County Assessor for the necessary information.  Follow the SAO designated sentence format for each levy your entity has (i.e. regular and special)

Note:  Interfund Loans

  • Beginning balance should equal the ending balance from the prior year's notes.
  • Add any new loans during the year and any payments to existing loans.
  • SAO will look at these so be sure you have the appropriate council approved action creating the loans, the loans have reasonable interest rates (cannot be 0%), and the loans have a set duration lasting no longer than three years.

Note:  Debt Service Requirements

  • Other debt includes Public Works Trust Fund money, notes and special assessment bonds.
  • This can be the most time consuming note to prepare as it requires updating amortization tables.
  • Copy table from the Debt Note tab into the notes.  Paste into Word as a picture

Excel Table (Debt Service Requirements tab) Copied To Notes Template

Note:  OPEB Plans

  • Add paragraphs based on your Excel table for OPEB Plans.

Note:  Defined Contribution Pension Plans

Note:  Pension Plans 

  • If you have PERS and or LEOFF use the short boiler plate language and include all participant plans (PERS 2, PERS3, etc..)
  • Briefly describe any other type of retirement (if needed).
  • Copy table from the Pension Note tab into the notes.  Paste into Word as a picture.

Excel Table (Pensions Tab) Copied To Notes Template

Note:  Risk Management

  • Insert risk management notes received from your Insurance Agencies.  You want to ask for this information in a Word document instead of a PDF to make copying and pasting easier.

Note: Component Units, Joint Ventures and Related Parties

  • Disclose any of these types of relationships.

Note:  Other Disclosures

  • Related Party Transactions:  Don't list names.  Describe the nature of the transaction and the dollar amount.
  • Funds with negative balances or over budget.
  • Extraordinary or subsequent events?  Natural disaster, lawsuits, etc.
  • Commitments or obligations that restrict future resources?
  • See the BARS Manual Guidance for more details

Upload to the SAO website.

Congratulations, you are done!

0 Comments

Add your comment

E-Mail me when someone replies to this comment