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.
- 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!