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XVI. Financial Reporting

Guide to Financial Operations

XVI.3.I Budgetary Presentation

XVI. Financial Reporting
Guide to Financial Operations

Policy Reference:

GASB Codification Section 2400 – Budgetary Reporting

Process and Document Preparation:

The Basic Financial Statements (BFS) issued by the State of New York include, as required supplementary information, Budgetary Basis - Financial Plan and Actual - Combined Schedule of Cash Receipts and Disbursements for the General Fund and the major Special Revenue Funds and Notes to Required Supplementary Information - Budgetary Basis Reporting. This presentation is mandated by GASB Codification Section 2400, which requires that a budgetary comparison be included in the financial statements for the general fund and major special revenue funds.

The budgetary report presented in the State's BFS reflects a comparison of the original and revised cash basis financial plan with the actual cash receipts and disbursements for the year. The cash basis financial plan is presented as a basis of comparison with actual because it is the primary document which reflects the State's intended spending policy during a given fiscal year. Appropriations (budgetary basis), on the other hand, represent spending authorization but they do not necessarily reflect what the State intends to disburse during the year. Additional reasons, which support the cash basis financial plan as the preferred presentation include:

  • It is meaningful to both the State's creditors and taxpaying public.
  • The State manages its day-to-day operations on a cash basis.
  • The plan provides the basis for appropriation bills presented by the Governor and acted upon by the Legislature.

Finally, a reconciliation of the cash basis financial plan to the GAAP basis financial statements is disclosed in the notes to required supplementary information. Reconciling elements contained in this analysis include differences related to entity, basis, and perspective. They conform to the requirements of GASB Codification Section 2400.

In accordance with GFOA reporting requirements, a Combining Schedule of Cash Receipts and Disbursements – Budgetary Basis – Financial Plan and Actual will be presented as other supplementary information for the General Debt Service Fund (a major fund) and non-major Special Revenue, Debt Service, and Capital Projects Funds.

Guide to Financial Operations

REV. 01/01/2017