FINANCIAL STATEMENT REPORTING REQUIREMENTS - 8660-JUN-2017

(Revised: 06/2017)

(Deleted 10/2020 and moved to 8670.2)

Capital assets will be included in year-end financial reports. Proprietary funds will report capital assets and accumulated depreciation/amortization in the funds themselves.

Fiduciary funds will record capital assets (fully reserved) in the funds themselves. Departments which acquire property with resources of governmental funds will prepare a Statement of Changes in Capital Assets Group of Accounts–Report No. 18 and a Statement of Capital Assets Group of Accounts–Report No. 19.

1. The Statement of Changes in the Capital Assets Group of Accounts–Report No. 18 must be prepared for each fund within a department. This report will detail the changes from the prior year ending period to the current period capital asset balances.Report 18 contains the following information:
   1. Asset beginning balances listed in General Ledger Account Number order, for example, land, building, computer software etc. Asset beginning balances must agree with the prior year ending balances. Any differences must be documented and explained in Report 18, Statement of Changes in Capital Assets Group of Accounts, Beginning Balance Differential Report.See section 7977 Illustration 2.
   2. Asset additions.
   3. Asset deductions.
   4. Asset ending balances.
   5. A footnote that any differences between the beginning asset balances and prior year ending balances are documented and explained in the Statement of Changes in Capital Assets Group of Accounts–Report 18, Beginning Balance Differential Report.

      Capital assets previously unreported should be reported as a restatement of the beginning balance, not as an addition. A description of the adjustment and the amount of the adjustment should be included in the footnote.

   6. A footnote that the asset ending balances equal the debit balances on Report 19 for each asset type.

   See section 7977 Illustrations 1 and 2 for the required report format.

2. The Statement of Capital Assets Group of Accounts–Report No. 19 must be prepared for each department. This report consolidates the information in Report 18 and contains the following:
   1. Assets ending balances for a department, in General Ledger Account Number order, for example, land, building, computer software etc.
   2. The sources of the governmental funds used to acquire each.
   3. A footnote that inventories of property were conducted in accordance with section 8652.
   4. A footnote that subsidiary capital assets records are in agreement with the general ledger control accounts. See section 8650 for property subsidiary ledgers.

See section 7978 Illustration for required report format.