SB Express Help Center

How do I create Notes to the Financial Statement?

Updated on

Workflows are not supported in your browser.
Please use a recent version of Chrome, Edge, Firefox or Safari to display this page.

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

Prepare Notes to the Financial Statements

  • Copy from SBX 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!
Previous Article How do I create Excel tables for Notes to the Financial Statement?
Next Article How do I prepare the Schedule 06?
Still Need Help? Contact Us