This note is appropriate if the district has the particular circumstance; e.g., changes in  debt are shown only if the district has long-term debt; changes in capital assets are shown only if the district accounts for the capital assets, etc. Notes to the Financial Statements are an integral part of the financial statements. Notes  must be prepared on a timely basis. For smaller school districts that are audited by the State Office on a two-year cycle, information should be included for both years being Auditor’s examined. For the notes that will be included in the two-year audit report, include the information in parentheses. The district should choose Format Option #1 or Format Option #2, depending on the  circumstance. Format #1 should be used where all (during the entire year) of the district’s investments are insured or registered and held in the district or in the name by its district’s agent. Otherwise, Format #2 should be used. If the district has any investment during the year, which is not fully insured, registered, or  held in the name of the district, extensive additional disclosure is required. Reference to disclosure requirements published in GASB Statement No. 3 is necessary. another valuation method is used, adjust the note accordingly and explain the impact on the financial statements. This sentence is appropriate if the district has a reserve for inventory.  Prepare this note only if some leases are not capitalized. (Payments on capitalized leases  are included in the note CHANGES IN LONG-TERM DEBT as debt service.)
 This note is appropriate if the district has the particular circumstance; e.g., changes in debt are shown only if the district has long-term debt; changes in capital assets are shown only if the district accounts for the capital assets, etc.  Notes to the Financial Statements are an integral part of the financial statements. Notes must be prepared on a timely basis. For smaller school districts that are audited by the State Auditor’s Office on a two-year cycle, information should be included for both years being examined. For the notes that will be included in the two-year audit report, include the information in parentheses.  The district should choose Format Option #1 or Format Option #2, depending on the circumstance. Format #1 should be used where all (during the entire year) of the district’s investments are insured or registered and held in the district or in the district’s name by its agent. Otherwise, Format #2 should be used.  If the district has any investment during the year, which is not fully insured, registered, or held in the name of the district, extensive additional disclosure is required. Reference to disclosure requirements published in GASB Statement No. 3 is necessary. another valuation method is used, adjust the note accordingly and explain the impact on the financial statements.  This sentence is appropriate if the district has a reserve for inventory.  Prepare this note only if some leases are not capitalized. (Payments on capitalized leases are included in the note CHANGES IN LONG-TERM DEBT as debt service.)
F196_Notes.docx