Advanced Refunding Bonds Reporting on the ST-3 Supplemental Schedule 1

The accounting for Advanced Refunding Bonds is covered in an OSC June 2002 Accounting Release. This release can be seen on the OSC website.

Please Note: If your district does an advance bond refunding you must make entries in the Debt Service Fund as directed by this OSC Accounting Release.

However, the OSC accounting release does not address the reporting on the ST-3 Supplemental Schedule – 1, Schedule of Indebtedness.

The reporting on Supplemental Schedule – 1 should be as follows:

  1. Regarding the defeased bonds. On the SS1, the districts should show all bonds that have been paid with the refunding as paid in full. On the line “Paid During Fiscal Year” the district should enter an amount which will produce a 0 outstanding end of fiscal year closing balance on the SS1 for the defeased bond. If room allows, the districts should list separately each defeased bond, and report each as paid in full.
  2. The new Bond (or Bonds) should be shown on the SS1.
  3. Interest payments made on Bonds during the year should be shown as always on the SS1.

Note:

  1. On the SS1 the total of Bonds Outstanding End of Fiscal year should be correct- it should reflect actual bonds outstanding end of year.
  2. Interest paid during the fiscal year on the SS1 should also be correct- it should reflect actual bond interest paid during the fiscal year.
  3. ST- 3 edits 117 and 119 will be created by this reporting procedure. In the edit explanation space, the district should write "Bond refunding- we have made entries in the Debt Service Fund per OSC June 2002 Release".

If you have any questions please call Jim Hayden at the State Aid Unit (518) 474-2977

Dated: 10/16/03

Last Updated: May 30, 2017