Note X – Other Disclosures

Note X – Other Disclosures

A template for this note is not available. See “Instructions to preparer:” for various disclosures that may be required.

Instructions to preparer:

Disclose any additional information that are essential to a user’s understanding of the financial statements, for example:

  • Corrections of material errors in previous years. A disclosure should be made describing any significant transactions recorded as prior year(s) corrections in the BARS account 3880000 or 5880000.

  • If there was a violation of finance-related legal or contractual provisions the city/county/district should disclose both the description of the violation(s) and the action(s) taken to address the violation(s).

  • Extraordinary events with a significant effect on reported cash transactions. The disclosure should describe the event and its impact on cash transactions. Extraordinary means both (1) unusual in nature (possessing a high degree of abnormality and clearly unrelated to, or only incidentally related to the ordinary and typical activities of the entity) and, (2) infrequent in occurrence (not reasonably expected to recur in the foreseeable future). For example, this may include a natural disaster, discontinuance of a major program or merger with another government.

  • Special items are significant items subject to management’s control that meet one but not both of the criteria used for identifying extraordinary items. For example, a major sale of land.

  • Contingencies and litigations. Include contingencies that have at least a reasonable possibility of an unfavorable outcome resulting in a financial loss such as those related to litigation, claims and assessments (including due to unasserted or threatened claims that are probable of assertion). Disclosure is not required for claims covered by insurance unless it is material or significant and would otherwise be misleading to omit. For example, claims that may exceed insurance coverage or with significant deductibles should be disclosed. Other examples of potential contingencies requiring disclosure are material uncollectable receivables, uncompleted contracts that city/county/district is obligated to perform, disallowable grant expenditures, lawsuits settled adversely, their appeals (if applicable), material disputed contracts and any other uninsured risks affecting the government. Disclose all financial guarantees regardless of the probability of a loss. Include contingencies existing at the date of the financial statements and any that arose since that date. Disclose the nature of the contingency and, if possible, the estimated range of the potential loss or state that such an estimate is not possible. Be sure to consult with the government’s attorney and auditor for appropriate wording of the disclosure.

  • Subsequent events occurring after the end of period but before issuance of the statements that are essential to a user’s understanding of the financial statements (e.g., issuance of new debt, discontinuation or divestiture of major operations, settlement of major litigation, or an extraordinary event occurring after the end of the period).

  • Significant commitments or obligations which impose restrictions on the future use of financial resources that are not already disclosed in other sections (e.g., pollution remediation, construction and other contracts, etc.).

Construction Commitment

The (city/county/district)has active construction projects as of December 31, 20__. The projects include: ____________________.

At year-end the district’s commitments with contractors are as follows: [1]


Spent to Date

Remaining Commitment










(Of the committed balance of $__________ the (city/county/district) will be required to raise $__________ in future financing.)


[1] Describe the financing arrangements for each project

  • Government combinations

    This disclosure is required when the government underwent any changes related to its operations due to a merger, acquisition, or transfer of operations (e.g., annexation, shared service arrangement, redistricting, reorganization, etc.) or disposed of some operations.

Any monetary consideration should be accounted for and reported as special item and the note should disclose at minimum:

  1. Brief description and reason for the combination,

  2. Effective date or expected date of the cease of existence,

  3. The amount of added/reduced cash (i.e., amount of the special item),

  4. Assumed/transferred debt.

  • Any other items you may consider significant.