Expense Categories -- Interest

Source: Individual Government ACFRs
Latest Data: 2021
Frequency: Annual
Contact: State Financial Office

The "interest" subcategory of "expenses" is drawn from "The Statement of Activities" in each government's Annual Comprehensive Financial Report (ACFR).

According to the GASB, "Interest expense on general long-term liabilities is generally considered an indirect expense, per GASB 34. This interest expense will be reported in a separate line under governmental activities in the statement of activities. However, any interest expense associated with borrowing that is essential to the creation or continuing existence of a program should be included with the direct expenses of that program. The indirect interest expense reported as a separate line item should clearly indicate that it does not include any direct interest expense reported in the functions. Any amount excluded from indirect interest expense should be disclosed in the notes or presented on the face of the statement."

See "GASB Statement 34 Implementation Procedures"