Note X – Segment Information

Note X – Segment Information

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

Instructions to preparer:

The city/county/district that reports enterprise funds or that uses proprietary fund accounting and reporting standards to report their activities may be required to present segment information for those activities. This note is not required when the information is displayed in financial statements. For purposes of this disclosure, a segment is an identifiable activity reported as or within an enterprise fund or other stand-alone. Segment disclosure is required for activities that meet all three of the following criteria:

  1. The activity must be identifiable. An activity is identifiable if it has a specific revenue stream and related expenses and gains and losses that are accounted for separately.

  2. The activity must have revenue-supported debt outstanding. As of the end of the fiscal period, the activity must have one or more bonds or other debt instruments (e.g., certificates of participation) outstanding with a revenue pledged in support of that debt. (Conduit debt is not a consideration for this purpose.)

  3. The activity must be externally required to maintain separate accounts. An external party (e.g., pursuant to bond indenture) must require separate accounting of all of the following items related to the activity: revenues, expenses, gains, losses, assets, and liabilities.

Segment disclosure requirements should be met by providing condensed financial statement in the notes:

a. Type of goods or services provided by the segment.

b. Condensed statement of net position:

  1. Total assets ‑ distinguishing between current assets, capital assets, and other assets. Amounts receivable from other funds or component units should be reported separately.

  2. Total deferred outflows of resources.

  3. Total liabilities ‑ distinguishing between current and long-term amounts. Amounts payable to other funds or component units should be reported separately.

  4. Total deferred inflows of resources.

  5. Total net position ‑ distinguishing among restricted (separately reporting expendable and nonexpendable components); unrestricted; and amounts of net investment in capital assets.

c. Condensed statement of revenues, expenses, and changes in net position:

1. Operating revenues (by major source)
2. Operating expenses. Depreciation (including any amortization) should be identified separately
Operating income (loss)
Nonoperating revenues (expenses) ‑ with separate reporting of major revenues and expenses
Capital contributions and additions to permanent and term endowments
Special and extraordinary items
7. Transfers
Change in net position
Beginning net position
Ending net position

d. Condensed statement of cash flows:

1. Net cash provided (used) by:

  • Operating activities

  • Noncapital financing activities

  • Capital and related financing activities

  • Investing activities

2. Beginning cash and cash equivalent balances.

3. Ending cash and cash equivalent balances.