Annual Financial Report (AFR) Modernization Project

Pen with adding machine

The Office of the State Comptroller (OSC) is developing a new application for reporting annual financial activity. The new application will replace the existing Annual Update Document.

The Office of the State Comptroller (OSC) is making it easier for local governments to report annual financial activity by developing a user-friendly reporting application to replace the existing Annual Update Document.

The new application will:

  • Leverage the OSC Online Services platform local governments already utilize to file their Real Property Tax Cap, Constitutional Tax Limit and Tax Data Verification forms
  • Allow local officials to access the application from anywhere they have an internet connection
  • Allow for access to previous years' reports
  • Allow multiple preparers to access the application
  • Provide OSC staff the ability to view the application as local officials are completing their report, enabling staff to better provide assistance
  • Include improved data checking and edits
  • Provide an enhanced user experience, eliminating annual downloading of the application and prior year data

Upcoming Training Events

Date Topic Event Location
December 7, 2022 Comnmon Reporting Errors: From AUD to AFR Webinar Register Now
February 21, 2023 The Annual Financial Report - Modernizing the AUD Association of Towns Annual Meeting New York City

On Demand Training

Topic Description Length Availability Slideshow
General Overview An introduction to the modernization project including financial reporting history, objectives of and benefits of new application, and screen shots of application under development. 45:26 On Demand Slideshow Presentation [pdf]
Funds A detailed demonstration of how to complete the fund financial statements. 55:00 On Demand Not Applicable
Statement of Indebtedness and Bond Repayment Schedule Explanation of the data required to complete these two schedules and how to complete them in the new AFR. 41:00 On Demand Slideshow Presentation [pdf]
Statement of Indebtedness Validation Rules Learn how to resolve broken validation rules (edits) in the Statement of Indebtedness. OSC Staff provide some examples in the application and also demonstrated resources being developed to assist you. 46:00 On Demand Slideshow Presentation [pdf]
Bank Reconciliation and Energy Costs and Consumption Schedules Explanation of the data required to complete these two schedules and how to complete them in the new AFR. 32:54 On Demand Slideshow Presentation [pdf]
Employee and Retiree Benefits Schedule Explanation of the data required and functionality of the Employee and Retiree Benefits schedule. 36:30 On Demand Slideshow Presentation [pdf]
Uploading Financial Data with Bulk Load Learn how to save time completing your AFR using the bulk load feature. 28:21 On Demand Slideshow Presentation [pdf]
Summary of Annual Financial Reporting Changes (Effective Fiscal Years Ending in 2023) [.pdf]
Financial Statements
  • Municipalities that maintain sub-funds will aggregate this activity into one fund. Sub-funds will no longer be reported separately.
  • Police and Fire retirement system contributions will be reported separately. Fire contributions are to be accounted for in the new code 9016.8 – Fire Retirement – Employee Benefits.
  • Enterprise funds will require the reporting of adopted budget information. Previously, information from enterprise fund budgets was not required.
  • Reporting of negative values in the financial statements will be very limited. In most cases, issues resulting in a negative entry will need to be resolved by reporting in the appropriate account code in the Annual Financial Report (AFR). For example:
    • Cash must be reported as a positive amount, and negative cash (if any) must be reported (as a positive number) in the new code 633 – Due to Financial Institution for Overdrawn Accounts.
Bank Reconciliation
  • Bank accounts will be associated with their respective funds in the financial statements.
Fire District Questionnaire
  • Fire districts will be required to report their statutory spending limit.
Energy Costs and Consumption
  • The Energy Costs and Consumption schedule will not be collected in the AFR.
Statement of Indebtedness

The chart below indicates the changes in Statement of Indebtedness reporting from the current AUD to the new AFR:

Current Annual Update Document (AUD) New Annual Financial Report (AFR)
Debt issuances broken out as separate debt records if issuance has multiple purposes. Debt issuances reported as a single debt record, even if there are multiple purposes.
Interest rates are reported for each debt issuance. Interest rates are not reported.
Interest paid is not reported in the schedule. Interest paid is reported for each debt record.
Bond Anticipation Note (BAN) renewals reported on SOI by updating maturity dates. BAN debt records will collect amount renewed and the amount of any new money issued.
Debt records grouped by constitutional debt limit status (exempt and non-exempt). Exempt status from constitutional debt limit is not reported.
Paid amounts for bonds and bond anticipation notes include refunded amounts. Any refunded portion of a bond or bond anticipation note is reported on a separate line from principal payments.
Debt that is issued or paid by proprietary funds is reported the same as debt supported by governmental funds, resulting in several system edits that require explanation. Users can indicate whether debt is issued for a proprietary fund or whether debt payments are made from proprietary funds to avoid unnecessary edits.

In addition to the above, the new AFR will also require users to:

  • Indicate whether the debt is issued by the Environmental Facilities Corporation (bonds and BANs only),
  • Indicate whether the debt is administered by the United States Department of Agriculture (bonds only),
  • Indicate whether the debt was a private sale and, if so, provide the name of the lender,
  • Identify which fund(s) is (are) responsible for servicing the debt,
  • Provide an explanation for any debt that has an outstanding balance beyond its maturity date, and
  • In the case of a bond refunding, indicate whether the refunding was current or advanced.
Bond Repayment Schedule

This new supplemental schedule will collect the total bond principal and interest due for each year through the final maturity of all bonds reported on the statement of indebtedness. All principal and interest payments for bonds should be combined and reported in one schedule. An example is shown below.

Fiscal Year Ending Aggregate Bond Principal Payments Aggregate Bond Interest Payments Aggregate Principal and Interest Due Remaining Principal Balance
2023 $5,000 $1,000 $6,000 $10,700
2024 $5,200 $800 $6,000 $5,500
2025 $5,500 $500 $6,000 $0
Total $15,700 $2,300 $18,000  
Bulkload of Financial Statements

The AFR application has recently added a bulkload feature for the financial statements. See a summary of that feature in the document below.

Summary of Annual Financial Reporting Changes [.pdf]
This graphic illustrates  when municipalities will transition to submitting their annual reports to the Office of the State Comptroller using the new Annual Financial Report (AFR) application. The illustrated filing periods are based on the different fiscal year ends used by local municipalities and include the longest possible filing deadline of 120 days.

The above graphic illustrates when municipalities will transition to submitting their annual reports to the Office of the State Comptroller using the new Annual Financial Report (AFR) application. The illustrated filing periods are based on the different fiscal year ends used by local municipalities and include the longest possible filing deadline of 120 days.

If you have any questions regarding the new Annual Financial Report, please contact our staff by filling out and submitting the form below.

 

(page last updated November 2022)