Agency Guide to Year End Closing

State Controller’s Division Statewide Accounting & Reporting Services May 2008 This page intentionally left blank. AGENCY GUIDE TO YEAR END CLOSING Table of Contents Page A. CURRENT YEAR SCHEDULES AND MEMOS 1. Preclosing Review – Schedule of Key Dates ............................................................................ A-1 2. Year End Closing – Schedule of Key Dates.............................................................................. A-2 3. Gold Star Certificate Dates ....................................................................................................... A-3 B. YEAR END CLOSING OVERVIEW 1. Why is Year End Closing Important? ........................................................................................ B-1 2. Overview of the Year End Closing and CAFR Preparation Process......................................... B-1 3. Year End Closing Sequence of Events ..................................................................................... B-2 4. Best Practices for a Successful Year End Closing.................................................................... B-3 5. Year End Closing Communications .......................................................................................... B-4 6. Year End Process for “Drop-In” (Non-R*STARS) Agencies ..................................................... B-4 7. Overview of Year End R*STARS Programs.............................................................................. B-5 8. Gold Star Certificate.................................................................................................................. B-5 C. PRECLOSING REVIEW 1. What is Preclosing Review?...................................................................................................... C-1 2. Why is Preclosing Review Important?....................................................................................... C-1 3. Before the Start of Preclosing Review ...................................................................................... C-1 a. Update the CAFR Contact List............................................................................................ C-1 b. Review D23 Fund Profiles................................................................................................... C-2 c. Order Reports ..................................................................................................................... C-2 d. Attend Preclosing Review Training ..................................................................................... C-3 4. Preclosing Review Procedures ................................................................................................. C-3 a. Clear Balances in General Ledger Account 2951 ............................................................... C-3 b. Review GAAP Offset Accounts ........................................................................................... C-3 c. Reconcile Changes in Fund Equity ..................................................................................... C-5 d. Review Interfund and Interagency Accounts....................................................................... C-5 e. Review Appropriations ...................................................................................................... C-13 f. Adjust R*STARS for Prior Year Post Closing Adjustments ............................................... C-14 g. Review Last Year's Closing Adjustments.......................................................................... C-14 h. Clear Reconciling Items on Deposit/Cash Reconciliations................................................ C-15 5. Comprehensive Preclosing Review Checklist......................................................................... C-15 i D. MONTH 13 - YEAR END CLOSING 1. Overview of Month 13 ............................................................................................................... D-1 2. List of T-codes Not to be Used in Month 13.............................................................................. D-2 3. R*STARS Reports..................................................................................................................... D-5 4. Datamart Repository Reports.................................................................................................. D-15 5. Statewide Balancing Report.................................................................................................... D-19 6. Accounting Estimates for Year End Accruals and Deferrals ................................................... D-19 7. GAAP Offset Accounting......................................................................................................... D-21 8. Agency Certification of Accuracy and Completeness ............................................................. D-22 9. Preparing for Year End Closing .............................................................................................. D-22 a. Revisit/Complete Preclosing Review Procedures ............................................................. D-22 b. Verify Expenditure Budgets in R*STARS by June Close .................................................. D-22 10. Year End Closing Procedures................................................................................................. D-23 a. Year End Closing Review ................................................................................................. D-23 b. Reference Guide for Month 13 Transaction Codes........................................................... D-38 c. Recording Encumbrances................................................................................................. D-44 d. Recording Securities Lending Transactions...................................................................... D-46 E. POST CLOSING ADJUSTMENTS 1. Overview of Post Closing Adjustments ..................................................................................... E-1 2. Post Closing Adjustment Procedure ......................................................................................... E-1 3. Post Closing Adjustment Examples .......................................................................................... E-1 F. CAFR DISCLOSURE FORMS 1. Why are CAFR Disclosures Important? .................................................................................... F-1 2. CAFR Disclosures - Sequence of Events ................................................................................. F-1 3. General Disclosures - Sample Completed Forms..................................................................... F-2 4. Debt Disclosures - Sample Completed Forms ........................................................................ F-57 G. SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 1. Overview of SEFA Reporting .................................................................................................... G-1 2. History of Federal Reporting ..................................................................................................... G-1 3. Current Single Audit Requirements........................................................................................... G-2 4. SEFA Reporting Requirements................................................................................................. G-2 a. When is a Federal Award Expended?................................................................................. G-2 b. Expenditures of Non-Cash Awards ..................................................................................... G-3 c. Loans and Loan Guarantees............................................................................................... G-3 d. Medicare ............................................................................................................................. G-3 ii e. Medicaid.............................................................................................................................. G-3 f. Distinguishing Between Subrecipient and Vendor .............................................................. G-3 5. Transfers of Federal Assistance Between State Agencies ....................................................... G-4 6. SEFA Year End Reporting ........................................................................................................ G-4 a. Expenditures Report ........................................................................................................... G-5 b. Revenues Report ................................................................................................................ G-5 c. Transfers In Report ............................................................................................................. G-5 d. Transfers Out Report .......................................................................................................... G-5 e. Subrecipient Report ............................................................................................................ G-6 f. SEFA Inflow/(Outflow) Report .............................................................................................G-6 g. Using the SEFA Reports ..................................................................................................... G-6 h. Making Corrections to SEFA Information .......................................................................... G-10 i. j. Alternative (Manual) SEFA Reporting Process ................................................................. G-10 SEFA Disclosure Forms ....................................................................................................G-11 7. Definitions of Relevant Terms ................................................................................................. G-11 8. Example SEFA Disclosure Forms........................................................................................... G-13 H. FORMS 1. Request to Update CAFR Contact List ..................................................................................... H-1 2. Suggestions for Improving Year End Closing ........................................................................... H-2 3. Transmittal of CAFR Disclosures and Agency Certification ...................................................... H-3 4. Transmittal of SEFA Disclosures and Agency Certification ...................................................... H-4 5. Accounting Estimate Worksheet ............................................................................................... H-5 I. APPENDIX 1. GAAP Offset Transactions ..........................................................................................................I-1 iii This page intentionally left blank. CHAPTER A CURRENT YEAR SCHEDULES AND MEMOS FY 2008 Preclosing Review Schedule of Key Dates The schedule below outlines the key dates of our preclosing review process. Please call your SARS analyst at (503) 373-7277 if you have any questions. May 16, 2008 • April (Month 10) closes in R*STARS. Agencies use queries in the Data Mart Repository as of Month 10 (or order R*STARS Reports). Note: there is no preclosing review training this year. July 18, 2008 • • June (Month 12) closes in R*STARS Last day to record preclosing adjustments in R*STARS and resolve outstanding issues Chapter A – Current Year Schedules And Memos A-1 FY 2008 Year End Closing Schedule of Key Dates The schedule below outlines the key dates of our year end closing process. Please call your SARS analyst at (503) 373-7277 if you have any questions. June 9 June 26 July 18 By July 18 By July 18 SARS to send Year End Closing "Kick Off" information to agencies SARS to conduct Year End Closing Training at L&I building, room 260 June (Month 12) closes in R*STARS Agencies to verify accuracy of expenditure budgets in R*STARS Agencies to complete posting of adjustments for Preclosing Review, including post closing adjustments – Gold Star date Target date for SARS to send compensated absences information to agencies Soft close Agencies to obtain pre-approval from SARS for any proposed post-closing adjustments – Gold Star date Agencies to complete posting of year end closing adjustments – Gold Star date Month 13 closes in R*STARS Agencies to complete CAFR Disclosure Forms and "Agency Certification of Accuracy and Completeness" and send to SARS – Gold Star date Agencies to complete and transmit to SARS SEFA Disclosure Forms, “Agency Certification of Accuracy and Completeness,” and Schedule of Expenditures of Federal Awards, including subrecipient pass through information – Gold Star date July closes in R*STARS (August closes on September19) SARS to begin fund compilations and note disclosure preparation for CAFR Agencies with audited financial statements that will be completed by December 31 to send draft financial statements to SARS – Gold Star date Agencies with audited financial statements that will be completed by December 31 to send final (or most recent) audited financial statements to SARS Date per statute for SARS to complete audited CAFR A-2 July 25 By Aug 15 By Aug 22 By Aug 22 Aug 22 By Aug 29 By Aug 29 Sept 5 Sept 15 By Sept 26 By Nov 3 By Dec 31 Chapter A – Current Year Schedules And Memos FY 2008 Gold Star Certificate Dates An agency earns the State Controller’s Division Gold Star Certificate if all activities listed below are substantially accurate and complete by the individual due dates. In order to be considered substantially accurate and complete, activities must be completed in a quality manner in addition to being completed on time. R*STARS Agencies Non-R*STARS Agencies Activity By July 18 - Complete Preclosing Review & post closing adjustments Obtain pre-approval from SARS for any proposed postclosing adjustments Complete posting of year end closing adjustments; no post-closing adjustments except for those pre-approved by SARS by August 22 Complete CAFR Disclosure Forms and “Agency Certification of Accuracy and Completeness” and send to SARS Complete and transmit to SARS SEFA Disclosure Forms, “Agency Certification of Accuracy and Completeness,” and Schedule of Expenditures of Federal Awards, including subrecipient pass through information Agencies with audited financial statements that will be completed by December 31: Send draft (to be audited) financial statements to SARS Provide additional required information if requested By Aug 22 - By Aug 22 - By Aug 29 By Aug 29 By Aug 29 By Aug 29 By Sept 26 By Sept 26 By Assigned Date By Assigned Date Chapter A – Current Year Schedules And Memos A-3 CHAPTER B YEAR END CLOSING OVERVIEW B.1. Why is Year End Closing Important? The importance of year end closing cannot be overstated. The process of closing and auditing our books provides the discipline and integrity necessary to support the information for our published financial statements and the associated data flows for budget development and program management. The financial statements are used by investors, creditors, grantors including the federal government, citizens, elected officials, and state managers. Data flows are the record source of information for the Office of Economic Analysis (OEA), the Budget and Management Division (BAM), the Legislative Fiscal Office (LFO), the Governor, the Legislative Assembly, the ad hoc reporting accounting datamart, and federal and state auditors. A successful year end closing and audit process results in credible financial statements and accurate data being made available to OEA, BAM, LFO, and the accounting datamart. Reliable financial data is a fundamental requirement for effective management and performance, and support from all agencies is essential. Accounting principles and discipline guide the year end closing and auditing process. Agencies, Statewide Accounting and Reporting Services (SARS), and the Audits Division must work together to follow procedures and time lines necessary to ensure we have a timely and successful year end closing. A well organized, concerted approach leads to an efficient delivery of accurate system data and the Oregon Comprehensive Annual Financial Report (CAFR), which means that some dates and activities in the process must be firm. Agencies may run the risk of additional workload, time, and expense later if critical year end closing activities or dates are missed. The successful completion of year end closing and the subsequent completion of the Oregon Comprehensive Annual Financial Report represents a significant commitment of time, but it is very important to the State of Oregon. The CAFR is required by federal and state law, and is critical to the marketability of State bond issues. The CAFR is important to bond underwriters, bond rating agencies, creditors, citizens, the Legislative Assembly and state managers for statewide financial information. Obviously, the quality of Oregon's CAFR depends on the accuracy and completeness of the year end closing as carried out through the cooperative efforts of state agencies and SARS. B.2. Overview of the Year End Closing and CAFR Preparation Process The annual fiscal year end closing consists of activities taking place in state agencies, the Audits Division, SFMS Operations, and in SARS. The year end closing process leads to adjusted, audited statewide accounting balances and the completion of the Oregon CAFR. A critical beginning step in this process is preclosing review, which provides the opportunity for agencies to make accounting corrections and other adjustments prior to the close of the fiscal year. This is the best time for agencies to balance interagency transactions, to make accounting corrections, and to ensure the accounting records are in conformity with generally accepted accounting principles. R*STARS agencies record year end adjustments in Month 13, which is a separate fiscal period designed for accounting adjustments after the close of June (Month 12). Month 13 adjustments can be monitored by using Datamart repository reports (or requesting R*STARS reports) periodically during Month 13. Subsequent to year end closing, agencies should send any proposed post-closing adjustments to SARS for approval. In order to be processed, post-closing adjustments must be material and must be approved by SARS. If an adjustment is deemed necessary, SARS will make an adjustment to the State’s financial statements. The agency must record the adjustment as a post-closing adjustment in R*STARS as directed by SARS. Post-closing adjustments are recorded in the current year on R*STARS similar to a prior period adjustment. We expect to keep post-closing adjustments to a minimum. Chapter B – Year End Closing Overview B-1 The statewide financial statements are compiled from data in R*STARS as of the close of Month 13. R*STARS data is imported into the Comprehensive Annual Financial Reporting System (CAFRS) and compiled into financial statements. Accompanying note disclosures are compiled from the disclosure forms that all state agencies provide during year end closing. In addition, some disclosure information is obtained directly from R*STARS using the datamart. By law, the CAFR must be published within six months of year end. B.3. Year End Closing Sequence of Events A successful year end closing for the State of Oregon can only be achieved through the individual efforts of the CAFR accountants at each agency. Below is a summary of the key events that will lead to a successful year end closing. Please contact SARS as soon as possible if you have concerns or questions about any of the following events. Preclosing Procedures: Prior to the close of months 11 and 12, agencies should catch up on day-today accounting activities, post all preclosing review corrections and adjustments, communicate with other agencies and resolve issues related to the balancing of interagency transactions (including SEFA transfers), and inform SARS of any outstanding issues. Month 12 is also the last chance to make corrections to the GAAP Fund on the D23 Fund profile. Budgets: All budget information must be entered into R*STARS by the close of June accounting month. SARS will query expenditure budgets from the 62 Appropriation Table in R*STARS for the Budgetary Statement of Legal Compliance (BSLC) and for the budgetary schedule in the CAFR. Data for revenue budgets will be obtained from the Oregon Budget Information Tracking System (ORBITS). Training: Fiscal year end training will be provided by SARS. Updated copies of the Agency Guide to Year End Closing (when applicable), updated year end disclosure packets, and other useful information are distributed to agencies. Month 12 Close: Most agencies should be substantially finished with year end closing as of the close of Month 12. Some agencies may need Month 13 for year end accruals or unexpected material audit adjustments. R*STARS Reports: Agencies that use R*STARS requestable reports should order their reports as of the close of Month 12. During the month of August, there will be an extra (mid-week) report run which will allow agencies to request reports twice per week. Use reports and on-line access to view R*STARS data to identify errors and accounting problems (or use datamart reports; see below). Datamart: Agencies that use the accounting datamart should query data for reports as of the close of Month 12. Standard reports are established in the repository for agency use. Data in the datamart will be updated each Friday during July and three times per week during August. Use queries and reports to view data to identify errors and other accounting issues. Soft Close: One week prior to the close of Month 13, this soft close will allow agencies who have made all necessary adjustments to complete disclosure forms using final R*STARS balances. If incorrect balances are discovered, there is still time to make corrections before the close of Month 13. Reconcile Disclosures: Prior to submitting disclosure packets to SARS, agencies should make sure disclosed balances agree to R*STARS balances at the close of Month 13 as described in the disclosure packets. Chapter B – Year End Closing Overview B-2 Submit Disclosure Forms: General Disclosures and Debt Disclosures should be submitted to SARS by the due date in order to facilitate statewide compilation of the notes to the financial statements. State agencies are requested to complete a certification form which is signed at the time the required disclosure forms are sent to SARS. Schedule of Expenditure of Federal Awards (SEFA) Disclosures should be submitted to SARS by the due date in order to facilitate statewide compilation of the notes to the SEFA. A separate certification form is prepared for the SEFA disclosures. SARS Review: SARS will review agency accounting data using datamart reports and will recommend adjustments or other actions as needed. SARS will also review disclosure forms for accuracy and completeness. Month 13 Close: All year end adjustments should be completed by the close of Month 13. Any material audit adjustments made after the close of Month 13 will be posted to R*STARS as post closing adjustments in the subsequent fiscal year. Drop-in Agencies: Separately audited, drop-in agencies (not in R*STARS) send audited financial statements with accompanying notes and applicable disclosures to SARS. Final financial statement balances will be dropped into the CAFR. Federal Awards: After Month 13 closes, agencies use a standard Hyperion query from the Datamart repository for Schedule of Expenditures of Federal Awards (SEFA) reporting. Agencies transmit their SEFA data by signing a certification form with summary totals. (However, agencies that interface transactions to R*STARS are encouraged, but not required, to use specific grant profiles for SEFA reporting.) Agencies using Excel spreadsheets, rather than the grant profiles, will send them to SARS. If an agency finds errors in their repository reports, changes should be submitted as “corrections” using the Excel format. CAFR Preparation: After the close of Month 13, CAFR preparation begins. CAFR Publication: Statewide audit is completed, audit opinion is issued, and CAFR is published. B.4. Best Practices for a Successful Year End Closing The following guidelines are offered as best practices for agencies to ensure a successful year end closing: • Start early, finish on time Resource constraints are a fact of life. Plan to start early and you may be able to expand the amount of available resources. Start late and you will most surely have less time than you need. Start work on problem areas early All of us have problem areas that we know need work. Procrastination now will only exacerbate your problems later. Resolve them now before other problems get in the way. Set priorities, focus on material issues We seldom have enough resources, and minor problems will always get in the way no matter what we do. We have to set priorities, and we must at least get the material issues identified and resolved as early in the process as possible. Make the most of preclosing review A well thought out preclosing review will help you identify problem areas, avoid errors, and set priorities. It will reduce workload and stress during the year end closing when time is limited. Understand and acknowledge that there is less opportunity later to make adjustments and corrections. Use a soft cut-off to allow time to review for errors. Get management's attention and support • • • • Chapter B – Year End Closing Overview B-3 Make sure the director of your agency knows and understands the critical importance of the financial information your agency is providing through the year end closing process to the Governor, the Legislature, LFO, BAM, OEA, and to the public. It is very useful to coordinate your accounting records to support your agency’s budgeting needs. We also need management to certify the accuracy and completeness of your financial information. B.5. Year End Closing Communications An important component of the financial statement compilation process is to distribute information to all agency CAFR contacts in the fastest, most efficient manner. To accomplish this, SARS plans to maximize electronic distribution of information. There are three methods of doing this: the CAFR Contacts List Server, the State E-mail System, and the SCD Web Page. • CAFR Contacts List Server The CAFR Contacts List Server is an electronic mailing list that allows SARS to send information to everyone on the list simultaneously. It is a statewide list server that is administered by the Oregon State Library and is maintained by SARS. SARS will use the CAFR Contacts List Server to e-mail information related to year end closing and financial reporting. If you want to add yourself to the mailing list, you can send an e-mail to “CAFR-contactsrequest@listsmart.osl.state.or.us” with the following command in the body of your e-mail message: subscribe. If you have any questions about the content of the list, contact SCD Administration at (503) 378-3156 ext. 273. E-mail E-mails sent to large groups (for example, the CAFR Contacts List Server) should not contain large file size attachments. Thus, when SARS needs to distribute information with attachments in either Microsoft Word or Excel format, each analyst will use separate e-mail addresses for the CAFR contacts assigned to them. SCD Web Page The State Controller's Division maintains a web site on the Internet. The SCD web site contains links to several other web pages that are useful for researching accounting principles and federal regulations. Our web site also contains a copy of the Agency Guide to Year End Closing, the Oregon Accounting Manual, and other reference documents prepared by SCD. The SCD Web page is at http://www.oregon.gov/DAS/SCD/index.shtml. • • B.6. Year End Process for “Drop-in” (Non-R*STARS) Agencies Agencies that are not in R*STARS but are part of the State’s reporting entity will be “dropped” into statewide financial statements. In order for SARS to drop in agency balances, drop-in financial statements must be received in draft form and in final form according to the current fiscal year end closing schedule. Drop-in agencies are highly encouraged to follow the basic procedures in this manual under Preclosing Review and Year End Closing. Below is a list of agencies treated as “dropin” agencies. List of Drop-in Agencies Agency No. Agency Name 177 Oregon State Lottery Commission 191 Lane County Local Government Boundary Commission 435 580 590 60310 SAIF Corporation Ω Oregon University System Oregon Health and Science University Ω Commodity Commissions Chapter B – Year End Closing Overview B-4 733 951 971 976 Travel Information Council Oregon Film & Video Office Oregon Corrections Enterprises Oregon Tourism Commission Ω Discretely Presented Component Units B.7. Overview of Year End R*STARS Programs For agencies on R*STARS, five system programs operate “behind the scenes” to carry out the year end accounting closing process on the system. The following summary is provided as general information about the R*STARS closing programs. Detailed information about the year end closing programs is available in the SFMS Desk Manual and the R*STARS Reference Manual. Program # DAFM355 Program Name Create new year profiles Year end rollover extract/merge duplicate records Expected Run Date Purpose End of May, prior To automatically create profile records for the next to the beginning of biennium the new biennium June 30, every fiscal year To roll financial balances to the next fiscal year and roll nominal account balances to fund balance or net assets; to combine records that have duplicate keys To generate transactions to close nominal accounts to income summary and to fund balance or net assets To cancel outstanding encumbrances and preencumbrances for lapsing appropriations DAFM353/ DAFM356 DAFM351 After close of General ledger Month 13, every close fiscal year Encumbrance liquidation Third Monday of December before biennium end DAFM348 B.8. Gold Star Certificate The State Controller’s Gold Star Certificate is presented to state agencies that provide accurate and complete financial information in a timely manner. Some agencies have attained the Gold Star every year since it was first offered. Clearly, the Gold Star is a challenge to earn. But if your agency is diligent in its efforts to maintain accurate and complete accounting records throughout the fiscal year, it should be an easy matter at year end to provide the required information in a timely manner. At the beginning of Year End Closing, SARS notifies state agencies of the specific activities required to earn the Gold Star and the due dates to submit information to SARS. Gold Star criteria may change each fiscal year to accommodate specific year end situations and issues. The State Controller’s Gold Star Certificate is the state agency equivalent to the internationally recognized GFOA Certificate of Achievement for Excellence in Financial Reporting. The State of Oregon has earned the GFOA Certificate every year since 1992. Through a collaborative team effort of SARS and state agencies, the State continues to meet the stringent GFOA reporting requirements, prepares the Oregon Comprehensive Annual Financial Report in compliance with generally accepted accounting principles, and submits the report within the required six months after the end of the fiscal year. Chapter B – Year End Closing Overview B-5 Agencies’ participation in the Gold Star Certificate program is important to Oregon in meeting statewide fiscal performance goals, and critical to the timely preparation of Oregon's Comprehensive Annual Financial Report and the statewide Schedule of Expenditures of Federal Awards. SARS is dedicated to helping agencies become successful recipients of the Gold Star, and it is our hope to recognize a significant number of Gold Star agencies every year. Chapter B – Year End Closing Overview B-6 This page intentionally left blank. CHAPTER C PRECLOSING REVIEW C.1. What is Preclosing Review? Preclosing review is an analysis of agency accounting records in preparation for year end reporting. After the close of April, transactions and balances in R*STARS are reviewed by both agency accounting staff and SARS to identify errors or problems that need to be corrected before year end close. Preclosing review provides the opportunity for agencies to make accounting corrections and other adjustments prior to the close of the fiscal year. This is the best time for agencies to balance interagency transactions, make accounting corrections, and ensure the accounting records are in conformity with generally accepted accounting principles (GAAP). The preclosing review process is similar to the year end process in that it provides an opportunity to look at R*STARS accounting information at a GAAP fund level using Hyperion repository reports or R*STARS reports. C.2. Why is Preclosing Review Important? During the course of daily operations, the focus of accounting is to record expenditures and revenues, code them to the appropriate accounting structures, and not exceed the budget. Daily operations rarely involve a review of accounts at the balance sheet and operating statement level. The preclosing review focuses on trial balance data in the format required for financial reporting and CAFR preparation. By combining detail accounting data into GAAP fund structures in a financial statement format, agencies can determine if there are errors in posting, incorrect transaction codes, out-of-balance situations, uncleared clearing accounts, and so on. This allows agencies to be certain that the financial presentation of their accounts and funds complies with GAAP. By addressing accounting problems and issues during preclosing review, agencies can avoid making many of the corrections in Month 13. The additional review time before Month 13 provides a window of opportunity to analyze situations and determine corrective action without the pressure of year end closing deadlines. Of course, some entries can only be made in Month 13. An early start provides more time to assemble these entries for input later. The information in this section is provided to assist agencies in the review process. Although SARS will also review Hyperion repository reports and identify accounting issues, agencies are primarily responsible for the accuracy and completeness of their accounting records. Please feel free to call your SARS analyst with any preclosing review questions, comments, or procedural concerns. C.3. Before the Start of Preclosing Review C.3.a. Update the CAFR Contact List SARS maintains a statewide listing of CAFR contacts by agency. This list includes the agency accountant responsible for year end closing and reporting, as well as contact information such as phone, fax, and statewide e-mail address. Also, included are the SARS analyst and SFMS analyst assigned to support each agency. The CAFR contact list facilitates communications between state agencies and SARS during the year and especially during year end closing. Please review the list to make sure that the CAFR contact shown for your agency is correct. The list may be viewed at the following link: http://oregon.gov/DAS/SCD/SARS/index.shtml. If your agency's CAFR contact has changed, please ask SARS to update the CAFR Contact list. Form H.1 in this manual is available for this purpose. Chapter C – Preclosing Review C-1 C.3.b. Review D23 Fund Profiles Profiles for D23 funds should be reviewed to make sure the GAAP funds associated with them are correct. D23 funds should not be referenced to the default GAAP Fund 9999. If you have a D23 fund that is referenced to GAAP fund 9999, please work with your SARS analyst to determine a more appropriate GAAP Fund (see D24 GAAP Fund profile). The GAAP Fund Type identifies whether the fund is General Fund, Special Revenue Fund, etc., and can be found on the R*STARS D21 GAAP Fund Type Profile Listing. SAMPLE D23 SCREEN SD23 VER 2.0 LINK TO: STATE OF OREGON FUND PROFILE 03/14/08 01:51 PM PROD Is the GAAP Fund correct? AGENCY: 150 FISCAL YEAR: 08 FUND: 4100 TITLE: OTHER FUNDS APPROPRIATED FUND: 3400 (MUST BE IN D22 APPROP FUND PROFILE) GAAP FUND: 1103 (MUST BE IN D24 GAAP FUND PROFILE) STATE FUND GROUP: 9999 DEFAULT OREGON LOCAL FUND IND: N BANK ID: CASH FUND: 22000 FUND LEVELS DETERMINE THE LEVEL OF CONTROL FOR THE FOLLOWING (0=NONE, 1=APPROPRIATED FUND, 2=FUND, 3=CASH FUND): APPROPRIATION: 1 AGENCY BUDGET: 2 CASH CONTROL: 3 CASH BALANCE DISP - IND: N %/AMT: 00000000000 TREASURY FUND: 0401 DESCRIPTION: CC ORG LEVEL IND: 1 (0=DO NOT POST AGENCY, 1=POST AGENCY) DEPOSIT INTEREST - IND: Y AGENCY: FUND: GAAP FUND GROUP: 01 (SYSTEM GENERATED) GAAP FUND TYPE: 02 (SYSTEM GENERATED) STATUS CODE: A EFF START DATE: 07012007 EFF END DATE: LAST PROC DATE: 05092008 Z06 RECORD SUCCESSFULLY READ The Appropriated Fund identifies the funding source and budgetary treatment. In R*STARS, the sources are identified as follows: 3XXX = other funds, 4XXX = lottery funds, 6XXX = federal funds, 8XXX = general fund, and 9998 = Government-wide Reporting Fund (GWRF). This funding source identifier can be found on the R*STARS D22 Appropriated Fund Profile Listing. The D22 profile also shows whether the fund is limited (X4XX), non-limited (X2XX), non-budgeted (X6XX), capital improvement (XX10), capital construction (XX20), or debt service (XX30). C.3.c. Order Reports To get the most benefit from the guidance provided in this section, agencies will need to order specific R*STARS reports or use Hyperion repository reports as of the close of Month 10 (April accounting month). These reports should be used by agencies to identify and correct accounting problems in R*STARS and help ensure the accounting records are accurate and complete. Needed corrections identified during the preclosing review should be recorded in R*STARS by the close of Month 12. Agencies should order the following reports (at the GAAP fund level) through R*STARS, or use the Hyperion queries in the Datamart repository: Chapter C – Preclosing Review C-2 DAFR 6610 DAFR 6620 DAFR 9210 Agency Operating Statement Agency Balance Sheet Revenues & Expenditures by Fund, Program, Object – GAAP Offset Revenues and Expenditures only To check the status of interfund and interagency transactions, statewide balancing reports may be viewed online through a link provided on the SARS webpage: http://www.oregon.gov/DAS/SCD/SARS/swbreports.shtml. The DAFR 6120 report, Status of Appropriation and Expenditure, and DAFR 8650, Trial Balance by Fund/General Ledger, may also be useful. C.3.d. Attend Preclosing Review Training SARS may offer training to agencies on preclosing review processes. When training is offered, agencies are encouraged to attend the session and to ask questions. If you are unable to attend the training session, copies of training materials will be available from SARS. To help prepare for year end closing, review notices and updates from SARS, new accounting standards issued by GASB, new Oregon Accounting Manual policies, legislative changes that may impact agency accounting and financial reporting, and computerized system changes. Also, agencies are highly encouraged to meet with their SARS analyst during preclosing review to discuss agency accounting issues and problems. SARS is dedicated to helping agencies be successful in their accounting and reporting endeavors to strengthen consistency and statewide compliance with generally accepted accounting principles. C.4. Preclosing Review Procedures C.4.a. Clear Balances in General Ledger Account 2951 General ledger account 2951 must be zero for each fund. The process of clearing GL account 2951 is normally done by agencies on a routine basis to ensure funds are balanced. The DAFR6620 report, Agency Balance Sheet, may be reviewed to determine whether or not GL account 2951 has a zero balance in each GAAP fund. To research balances in GL account 2951, go to the 89 screen and with screen set for detail, scroll through the entries using the F5 key. Determine which T-codes may have hit GL 2951 for each D23 fund that is out of balance. Then look at all transactions using those T-codes and funds. Determine if a companion entry is missing or if an incorrect T-code was used. Make all entries needed to clear the 2951 GL account. C.4.b. Review GAAP Offset Accounts GAAP offset accounts are used to allow financial data in R*STARS to be reported on either a budgetary basis or a GAAP basis, depending on user needs. Changes in long-term assets and liabilities accounts, including capital assets and debt payable, are recorded in R*STARS using GAAP offsets so that the related budgetary revenues and expenditures/expenses (including proceeds from bond/COP issues, loan repayments, capital lease payments, and capital outlay) will be eliminated for financial statement reporting. Changes in the balances of vacation payable, inventory, and prepaid items are recorded using GAAP offset transactions. Depreciation and amortization are also recorded using GAAP offset transactions since these expenses are needed for GAAP basis financial statements only. Chapter C – Preclosing Review C-3 By reviewing certain balance sheet and operating statement items, including GAAP offset accounts, you can determine if entries necessary for GAAP basis financial statements have been made correctly. Procedure Use the following section to guide your review of GAAP Offset transactions. For additional information, the Appendix (Chapter I) includes information on GAAP offset transactions. Any questions should be directed to your SARS analyst. GAAP Offset Review Review using the DAFR6620 and the DAFR 9210: If balances in the following GL accounts have changed since last year, the DAFR 9210 (GAAP Offset Revenues and Expenditures Only) may be reviewed to see if the changes have been recorded to the appropriate objects and in the appropriate funds (for example, the amount of the increase in vacation payable-current in the government-wide reporting fund on the DAFR 6620 should appear as a debit to comptroller object 3111, Regular Employees, in the government-wide reporting fund on the DAFR 9210): Cash on Hand Investment Valuation Account-Designated or Other Inventory-Materials and Supplies or Stores for Resale Prepaid Expenses Advance To Other Funds/Agencies Capital Asset accounts Accumulated Depreciation accounts Loans Receivable in Governmental Funds Noncurrent Receivables in Proprietary, Fiduciary & GWRF Vacation Payable-Current or Noncurrent Advance From Other Funds/Agencies Deferred Revenue Bond and COP principal Bond and COP discounts, premiums, deferred charges, & other costs Noncurrent Payables in Proprietary, Fiduciary & GWRF (e.g., Claims and Judgments, Loans) A GAAP offset query is also available on the repository for analysis of changes in certain balance sheet accounts. Review of DAFR6610 Agency Operating Statement a) Does capital outlay = 0? (comptroller objects beginning with 5) b) Do loan, bond and COP proceeds = 0? (comptroller objects 1501-1513, 1600, 1605) c) Do loan repayment revenues = 0? (comptroller objects 1100-1104) d) Do loan expenditures (excluding loans made to individuals) = 0? (comptroller objects 6825, 6870, 6875) e) Do debt service principal payments = 0? (comptroller objects 7050-7200, 7275, 7410) f) Does depreciation or amortization appear on the report? (comptroller objects 7420-7478) g) Do other revenue and expenditure accounts related to long-term items = 0? (comptroller objects associated with construction in progress) Chapter C – Preclosing Review C-4 Keep in mind that for governmental type funds, only those comptroller objects related to loans and advances (listed in c and d above) should equal zero within the fund. Comptroller objects in governmental funds that are related to capital outlay and debt (listed in a, b, and e above) should have an exact offset, or negative amount in the same comptroller object, in the government-wide reporting fund. Below is a sample 91 screen set-up for the DAFR9210 for GAAP offset revenues and expenditures only. Italicized numbers and letters will be specific to agency, user, and dates requested. Further guidance related to ordering R*Stars reports is included in Section D.3. ---------------------------------------------------------------------------------------------------------------------------------S091 VER 2.0 LINK TO: STATE OF OREGON REPORT REQUEST PROFILE 05/12/08 01:47 PM PROD AGENCY: AGCY REQUESTER: NAME REQUEST NO: 01 REPORT ID: DAFR9210 APPN YEAR: PERIOD: FY: FREQUENCY: MMDDYEAR FREQ CONTROL: S RANGE FROM DATE: 01 2008 THRU DATE: 13 2008 LEVEL - ORG: PROGRAM: 0 OBJECT: FUND: 4 NACUBO FUND: GL ACCT: SPECIAL SELECTS AGENCY: PROGRAM CODE: APPROP FUND: COMP OBJECT: GL ACCT: SPEC SEL 1: C OR AGENCY GROUP: 1 ORG CODE: NACUBO FUND: FUND: AGY OBJECT: AGY GL ACCT: SPEC SEL 2: 0 3G STATUS CODE: A EFF START DATE: 06222001 EFF END DATE: LAST PROC DATE: 05122008 Z06 RECORD SUCCESSFULLY RECALLED F1-HELP F3-DEL F5-NEXT F9-INT F10-SAVE F11-SAVE/CLEAR ENTER-INQ CLEAR-EXIT -------------------------------------------------------------------------------------------------------------------------C.4.c. Reconcile Changes in Fund Equity Changes in fund equity must be supported by changes in revenues, expenditures/expenses and/or other operating statement items in accordance with the “clean surplus” theory of APB 20 and SFAS 16. There are a number of R*STARS reports that may be used to analyze changes in equity. For example, the DAFR6620 may be used to visually check current year versus prior year equity accounts to ensure there was not a change. As an alternative, the net activities on the DAFR9210 could be compared to the DAFR8650, which shows changes in Unreserved Undesignated Fund Balance (GL3020). Since equity accounts differ according to GAAP fund, this analysis will need to be based on total equity within each GAAP fund. If you have a change in fund equity, please work with your SARS analyst to resolve. C.4.d. Review Interfund and Interagency Accounts Agencies should review the status of their interagency and interfund transactions to ensure all transfers are in balance by using Statewide Balancing Reports. These reports may be viewed via the internet at the following link: http://www.oregon.gov/DAS/SCD/SARS/swbreports.shtml The objective of this section is to assist with the balancing of interfund and interagency accounts. Balancing interfund and interagency accounts allows agencies to track and report resources as they move from one fund to another or from one agency to another. For reporting purposes, SARS must balance these accounts at a statewide level and be able to track the movement between specific Chapter C – Preclosing Review C-5 funds; thus, it is essential that each agency make sure not only that these accounts are in balance at the agency and fund level, but that the agency GL or GASB 38 codes are correct by the close of month 13. Below is a discussion of some common problems and possible solutions associated with interfund and interagency transactions. SUMMARY OF INTERFUND/INTERAGENCY ACCOUNTS AND EXAMPLES Due To/From Other Funds/Agencies Due To/From Other Funds/Agencies accounts (see Exhibit A) are balance sheet accounts used to represent amounts owed between funds or agencies. These accounts are used primarily to account for amounts collected by one fund or agency that will be transferred to another fund or agency, and to accrue transfers between funds or agencies. Note that the same general ledger accounts (0586 and 1532) are used to balance between funds within an agency as well as between agencies. Due To/From Other Funds must balance within each agency (i.e., a due from balance in one fund must have a balancing due to balance in a different fund within the same agency). The agency GL associated with the balance in Due To Other Funds must reference the D23 fund where the corresponding Due From Other Funds is reported (and vice versa). Due To/From Other Agencies must balance between agencies, including non-R*STARS agencies such as the Oregon University System (agency 580) and discretely presented component units which are the Oregon Health and Science University (agency 590) and SAIF Corporation (agency 435). See Section B.6. for a list of drop-in agencies. If your agency has transfers with non-R*STARS agencies, you will not be in balance on R*STARS. The agency GL associated with the balance in Due To Other Agency must reference the agency and D23 fund where the corresponding Due From Other Agency is reported (and vice versa). Exhibit A – Due To/From Other Funds/Agencies DR 0586 Due From Other Funds/Agencies = CR 1532 Due To Other Funds/Agencies Example 1 Assume a reimbursement transaction (OAM 15.45.10 PR) where one fund in agency 107 (e.g., the general fund D23 fund 1211) pays the entire $5,000 attorney general invoice for an agency but $1,000 of the expenditures in the general fund belong to a special revenue fund (D23 fund 3433). Assuming the expenditures have already been recorded in the general fund, the agency would use R*STARS T-code 926 to set up a Due From Other Funds for $1,000 in the general fund and T-code 925 to set up a $1,000 Due To Other Funds in the special revenue fund. TC 926: General fund entry to record due from special revenue fund for Attorney General charges paid by the general fund on behalf of the special revenue fund. DR 0586 Due From Other Funds/Agencies $1,000 CR 3505 Expenditure Control - Financial Statement Accrual $1,000 (comptroller object - 4550 Legal Fees) (AGL 10734330) TC 925: Special revenue fund entry to record amount owed to the general fund for share of Attorney General charges. DR CR 3505 Expenditure Control - Financial Statement Accrual 1532 Due To Other Funds/Agencies (comptroller object - 4550 Legal Fees) (AGL 10712110) $1,000 $1,000 Chapter C – Preclosing Review C-6 Example 2 Assume agency 107 (DAS) receives federal financial assistance in a special revenue fund (D23 fund 1111) and that the funds are budgeted to be transferred to agency 137 (DOJ). DOJ receives the federal funds in its special revenue fund (D23 fund 2222) as other funds, “transfers-in” which in turn, passes the federal assistance on to local governments and nonprofit organizations. Assume also that at the end of the current reporting period, it is determined that DAS owes DOJ $3,000. In this example, DAS should communicate with DOJ in recording the end of year accruals as follows: TC 919: Entry made by DAS to accrue amounts owed to DOJ at year end. DR CR 3550 Operating Transfers Out Control $3,000 1532 Due To Other Funds/Agencies $3,000 (comptroller object - 1809 Transfer Out to Justice) (AGL and G38# 13722220) 0586 Due From Other Funds/Agencies $3,000 3150 Operating Transfers In Control $3,000 (comptroller object 1306 - Transfer In from DAS (AGL and G38# 10711110) TC 920: Entry made by DOJ to accrue amounts due from DAS at year end. DR CR Reimbursements Reimbursements are those transactions that constitute repayment to a fund for expenditures or expenses initially made from it that are properly applicable to another fund. Agencies should record due to/from adjustments for outstanding reimbursements existing as of the end of the reporting period. See OAM 15.45.10 PR and the above Example 1 under “Due To/From Account” for an example. As noted above, Due To and Due From accounts must balance and the agency GL must be correct. Advances Advances (see Exhibit B) are long-term loans from one fund or agency to another fund or agency. These long-term loans are fund assets and liabilities that should be accounted for in the funds initiating and receiving them regardless of the fund type (OAM 15.45.20 PR). All advances to other fund/agency accounts should balance with offsetting advances from other fund/agency accounts. The agency GL for the GL 0950, Advance To Other Funds/Agencies, portion of the transaction should reference the agency and D23 fund where the GL 1800, Advance From Other Funds/Agencies, portion of the transaction is recorded. Exhibit B - Advance To/From Other Fund/Agency DR 0950 Advance to Other Funds/Agencies = CR 1800 Advance From Other Funds/Agencies Example Assume an enterprise fund (D23 fund 4244) loaned a special revenue fund (D23 fund 1121) $10,000 to be repaid over a five year period (an advance within agency 107). The following entries can be used to record the initial advance (note that the T-codes below can be used for advances between funds within an agency or between agencies). Chapter C – Preclosing Review C-7 TC 446: Enterprise fund entry to record advance to special revenue fund. DR CR 0950 Advance To Other Funds/Agencies $10,000 3600 GAAP Expenditure Offset $10,000 (comptroller object - 6870 Loans Made to State Agencies) (agency GL 10711210) 2951 3200 System Clearing General Ledger Level Only GAAP Revenue Offset (comptroller object - 1600 Loan Proceeds) (agency GL 10742440) 1800 Advances From Other Funds/Agencies 3075 Change in Reserves $10,000 $10,000 TC 482: Special revenue fund entry to record advance from enterprise fund. DR DR CR CR $10,000 $10,000 TC 483: Special revenue fund entry to record the amount to be provided for an advance from other funds/agencies. DR 0926 Amount To Be Provided-Adv From Other Fund/Agency $10,000 CR 2951 System Clearing General Ledger Level Only $10,000 Transfers Transfers (see Exhibit C for comptroller objects) are used to track authorized movements of resources between funds within an agency or between agencies. They are used to move resources from one fund or agency to another in a manner similar to a subsidy. An example of where transfers are commonly used is the case of an enterprise fund that receives routine transfers from other funds because it doesn’t generate enough revenue to be entirely self-supporting. Transfers should not be used to report transactions where there is an exchange of goods or services between state agencies (or funds) or between state agencies and entities outside the government. Some examples of transfers include when Oregon Liquor Control Commission collects beer and wine taxes and distributes portions to agencies to support various alcohol programs, when State Lottery transfers money for Economic Development, and when Department of Revenue distributes various tax moneys to agencies. Transfers are reported in the "Other Financing Sources (Uses)" section in the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balance and after the "Nonoperating Revenues (Expenses)" section in the proprietary fund Statement of Revenues, Expenses, and Changes in Fund Net Assets. For government-wide reporting, transfers within each activity are eliminated and only amounts between governmental and business-type activities are presented. If the question arises as to whether a transaction should be treated as a transfer or a revenue/expenditure (or expense), one of the first places to look is the budget. Transfers are often budgeted as transfers out, special payments to state agencies, or transfers in. A more complete discussion of transfers can be found in OAM 15.45.10 PR. It is very important that transfers in and out balance at the agency level as well as at the state level. It is also critical that GASB 38 codes used in transfer transactions be accurate. If at year end it is necessary to accrue a transfer, the balance sheet side of the accrual should be to a Due To/From account and not to a receivable or payable. See Example 2 in interagency due to/from above. For a listing of R*STARS objects that roll up to “transfers” at the CAFR level, see Exhibit C below. Chapter C – Preclosing Review C-8 Exhibit C - D10 Transfer Comptroller Objects (See OAM 60.20.00 RF for a complete listing) DR 1403 Transfer out to General Fund 1430 Transfer To OCE 1801 Transfer Out To Dept of Admin Services Through 1914 Transfer Out To Tourism Commission 6081 Distribution To Board of Dentistry Through 6197 Distribution To Construction Contractors Board 1401 Transfer Out To Other Fund 1402 Transfer Out Lottery Proceeds 1456 Transfer Out-Indirect Cost Center CR = 1279 Transfer In From Board of Dentistry Through 1400 Transfer In From Teacher Standards = 1301 Transfer In From Other Fund = 1302 Transfer In Lottery Proceeds = 1356 Transfer In From Indirect Cost Center 6200 Intra-agency General Fund/Other Fund Transfer = 1303 Transfer In From General Fund Interfund Services Provided and Used Interfund services provided and used are not considered transfers. They are transactions between agencies or funds that would be treated as revenues, expenditures or expenses if they involved organizations external to the State. They are used to record payments for goods or services between funds and agencies (see OAM 15.45.10 PR for more information). Revenue and expenditure (i.e., services & supplies) objects rather than transfer objects should be used with these transactions (see Exhibit C above for transfer objects that should not be used for interfund services provided and used). Examples of interfund services provided and used include motor pool charges, audit services, attorney general charges, data processing services, telecommunications charges and purchases of furniture from Oregon Corrections Enterprises. Another example is when one state agency has contracted with another state agency to provide some type of service. Classifying Interfund Transactions Determining the most appropriate way to record an interfund transaction can be a challenge, especially since the term “transfer” is used in many different ways. To simplify the decision making process, there are some key questions that need to be asked which are depicted in the flow chart below. When discussing transactions with other agencies, you may want to use this flow chart as the basis of your discussion to determine the appropriate accounting treatment: Chapter C – Preclosing Review C-9 S = Agency fund sending monies No R = Agency fund receiving monies Yes Is R providing a product or service to S? Is S reimbursing R for a product or service that was paid for by R on behalf of S? This is interfund services provided and used. S records an expenditure. R records revenue when the payment is received. Yes No This is a reimbursement. S records an expenditure. R records revenue or a reduction of expense, depending on the circumstances. If this transaction is not a loan, this transaction is a transfer. S records a transfer out using either a distribution to other state agency (comptroller objects 6081-6200) or a transfer out (comptroller objects 1401-1403, 1801-1999), depending on how it’s budgeted. R records a transfer in. These transfers must balance. COMMON PROBLEMS AND SOLUTIONS Below is a list of some common problems and solutions associated with interfund and interagency transactions. If you have any questions, please do not hesitate to call your SARS analyst. PROBLEMS SOLUTIONS Transfers to agencies with different fiscal year This condition is OK as long as the difference ends. Currently SAIF (435), a component unit, can be identified and disclosed in the notes to is the only part of the reporting entity that does the financial statements as a reconciling item. not use a 6/30 year end. SAIF’s year end is 12/31. Transactions between SAIF and state agencies may not balance on June 30 financial reports. Transfers, revenue or expenditures/expenses recorded in agency fund types (R*STARS D21 GAAP fund type 09). Agency funds should only contain balance sheet accounts. There should be no Due To or Due From accounts in agency funds. There should be no transfers recorded to or from agency funds. Oregon University System (OUS) does not have information when they receive payments from the State to know how to code receipts. SEFA transfers not recorded properly. Reverse transactions that put nominal accounts in agency fund and record receivable/payable instead. Also, make correcting entries in all funds that have recorded transfers to or from agency funds. Communicate to OUS institutions about details of payments/transfers made to them. Provide OUS descriptions of R*STARS objects. Analyze Statewide Balancing Report to identify transfers from other agencies to your agency. Note that federal assistance received from other state agencies may be budgeted as other funds in your agency but the transfers still need to be reported as federal transfers and expenditures for the SEFA schedule. Chapter C – Preclosing Review C - 10 PROBLEMS SOLUTIONS Agencies initiating federal transfers must contact the receiving agencies and communicate to them the amounts sent, the proper CFDA numbers to use and which agency should record/report the corresponding expenditures. CAFR contacts in each agency should communicate with the person preparing the SEFA. Federal grant accounting and reporting are addressed in OAM 15.42.00. Late information from the other agency. Make an accrual based on an estimate that is agreed upon by agencies involved. Use a documented method that will produce a reasonable estimate. T-CODES TO CORRECT OUT OF BALANCE TRANSFERS Following are examples of entries to correct out of balance transfers: To Change Transfer In to Revenue: TC 187R To Remove Transfer In DR 3150 Operating Transfers In Control CR 0065 Unreconciled Deposit Use comptroller object of transfer in (1289 - 1400) and G38 code from original TC187 entry. TC 190 To Record Revenue DR 0065 Unreconciled Deposit CR 3100 Revenue Control - Cash Use comptroller object for appropriate revenue. To Change Revenue to Transfer In: TC 190R To Remove Revenue DR 3100 Revenue Control - Cash CR 0065 Unreconciled Deposit Use comptroller object for appropriate revenue. TC 187 To Record Transfer In DR 0065 Unreconciled Deposit CR 3150 Operating Transfers In Control Use comptroller object of transfer in (1289 - 1400) and appropriate GASB 38 code. PRECLOSE REVIEW PROCEDURES - INTERFUND AND INTERAGENCY TRANSACTIONS Interfund and interagency transactions must balance. Below are a few steps that can be performed during the year that will reduce the number of out-of-balance interfund and interagency transactions at the end of the year. See OAM sections 15.45.10 and 15.45.20 for additional details and examples of interfund and interagency transactions. Chapter C – Preclosing Review C - 11 • Make sure all interfund transactions within your agency are balanced and have correct agency GL(s) and GASB 38 codes associated with them (i.e., due to/from other funds, transfers to/from other funds, advances to/from other funds). Communicate with other agencies and agree on the appropriate objects and agency GL(s) or GASB 38 codes to be used. Initiating and receiving agencies should both use revenue and expenditure/expense objects or they should both use transfer objects. Do not use transfer objects with another object type. For accruals, communicate with other agencies so that correct balance sheet accounts and agency GL(s) or GASB 38 codes are used. Initiating and receiving agencies should both use due to/from accounts or they should both use accounts receivable/payable accounts but should not mix the two. Review agency funds (D21 GAAP fund type 09) to make sure there are no transfers recorded in those funds. If transfers are found, they must be reversed and recorded in the proper fund(s). Communicate with agencies to which you transferred federal financial assistance. Initiating agencies will need to tell receiving agencies the dollar amount(s) transferred and the proper CFDA(s) to be used. Federal grant accounting and reporting are addressed in OAM 15.42.00. • • • • SAMPLE QUERY FOR INTERFUND AND INTERAGENCY BALANCING Although a statewide balancing report is available online through a link provided by SARS, you may want to also query the data from the datamart. Whether you are using Hyperion or another query tool such as Access, you can obtain detail on interfund and interagency transactions from the datamart. Below are instructions (using Hyperion) on possible queries you could adapt and apply to the tool you are using. Query #1: This query will allow you to locate interfund and interagency transfers. It is based on the All Accounting Event Table. Request: Agency Compt Obj Compt Obj Title (Compt Obj Table) Cur Doc No Effective Date Fiscal Year Fund G38 Transfer Gl Acct Deb Pos Trans Amount Tcode Limits: Agency = your agency number Fiscal Year = current fiscal year Gl Acct Begins with 31 and 35 Compt Obj Between 1279 and 1914 Compt Obj Not Between 1500 and 1700 Process and get your results. Create a computed item entitled "Transfer Type" as follows (the double vertical lines represent “or”): if (Compt_Obj == "1301" || Compt_Obj == "1401" ) {"Interfund" } else if (Compt_Obj == "1356" || Compt_Obj == "1456" ) {"Indirect Cost" } else {"Interagency" } Create a pivot table by dragging the request items into the outliner: Top labels: Transfer Type, Tcode, Gl Acct Side labels: Compt Obj, Compt Obj Title, Effective Date, Cur Doc No, Fund, G38 Transfer Facts: Deb Pos Trans Amt Chapter C – Preclosing Review C - 12 Note: These items may be arranged in any fashion that is useful to you. The arrangement noted above is just a suggestion. A separate pivot report for each of the Transfer Types can be created by duplicating the pivot and focusing on each of the Transfer Types. The comptroller object titles indicate the agencies involved. You will also need to rerun the query, limiting comptroller objects to those between 6081 and 6197 to obtain transfers that were recorded as distributions to other agencies. Query #2: This query will allow you to see how the other agencies recorded the interagency transfers. It is based on the All Accounting Event Table. Duplicate Query #1 and make the following changes to the Limits: Agency = the agencies you noted on the pivot from Query #1 Compt Obj = xxxx (Transfer in from your agency), yyyy (Transfer out to your agency) and zzzz (Distribution to your agency); for example, for Department of Agriculture: xxxx = 1367, yyyy = 1858 and zzzz = 6175. Remember to change the limit to equal these comptroller objects rather than being between them. After you process Query #2, the other agencies' transfers will appear on the pivot report. Print the interagency pivot from Query #2 and you'll have a picture to compare how your agency recorded your side of the transfer to how the other agencies recorded their side of the transfer. Query #3: This query will allow you to identify detail transactions of other specific agencies that recorded a transfer in from your agency (i.e., transfer in from State Commission on Children and Families is comptroller object 1347). It is useful when you know which agencies you are out of balance with, but the other agency has not researched differences. If you can provide the detail to them, perhaps the correcting entries can be made promptly. It is based on the All Accounting Event Table. Request: Agency Compt Obj Compt Obj Title (Compt Obj Table) Doc No, Doc No Suffix Effective Date Fund, PCA Fiscal Year Gl Acct G38 Transfer Deb Pos Trans Amount Tcode Batch Date, Batch No, Batch Seq Limits: Agency = other agency number Fiscal Year = current fiscal year Gl Acct Begins with 31 and 35 Compt Obj = 1347 Process and get your results. Use the pivot table to analyze or import data into Excel. Modify this sample query as needed to make it useful for your agency. C.4.e. Review Appropriations Appropriation information for the budgetary schedules in the CAFR is taken directly from R*STARS. For this reason, it’s important that the information in R*STARS is complete and accurate. Errors or omissions need to be corrected in order to have the correct balances in the CAFR. All appropriations need to be recorded in R*STARS by the close of June for statewide financial reporting purposes. Chapter C – Preclosing Review C - 13 To verify the accuracy of appropriation amounts recorded in R*STARS, review the 62 screen for each appropriation. COMMON PROBLEMS AND POSSIBLE SOLUTIONS: PROBLEM: E-Board/Appropriation/Special Session is not recorded on R*STARS. SOLUTION: If the R*STARS 62 screen does not reflect the amounts recorded on the documentation you have received, call Budget and Management (BAM) to see if there is some reason the budget information has not been entered. One reason might be because your agency has not provided BAM with the Appropriation Profile form. Please refer to the R*STARS Reference Manual, Chapter 6 for procedures. These forms must be approved at the agency level and then forwarded to BAM for entry into R*STARS. Until this profile is set up, the budget batches cannot be entered in R*STARS. In order to enter your E-Boards, Appropriations, or Special Sessions actions, agencies must provide BAM with the Chapter Law information, appropriation number assigned by the agency, fund number and Program Cost Accounts (PCAs) that need to be pointed to each E-Board/Appropriation/Special Session action. Some agencies may also need to provide indexes. PROBLEM: An E-Board, Appropriation, or Special Session action is recorded in R*STARS with an incorrect amount, fund, PCA, or index. SOLUTION: Contact BAM for resolution. They will need to know the Chapter Law information, appropriation number, PCA (and/or Index) number and fund number (if it was set up with more than one fund), the incorrect information and the correct information. If necessary, fax a copy of the R*STARS 62 screen to BAM for further clarification. C.4.f. Adjust R*STARS for Prior Year Post Closing Adjustments Agency accounting records will not reflect audited account balances at year end unless all post closing adjustments are recorded on R*STARS. If your agency had any adjustments that were needed after the close of Month 13 in the prior year, your SARS analyst will contact you about recording a post closing adjustment in R*STARS in the current year. To correct R*STARS for a prior year post closing adjustment, two transactions are typically required: 1. Record the adjusting entry. 2. Transaction codes 113, 114, 119, 124 or 125 to restate the current year beginning fund equity. The GAAP offset corrects the current year revenues or expenses. In order for the GAAP offset to have the desired effect, care must be taken to use the same comptroller object codes in both of these entries. For more information, including example entries, refer to Chapter E on Post Closing. C.4.g. Review Last Year’s Closing Adjustments The close of this year may require the same type of accounting corrections and closing adjustments as last year. If possible, prepare the appropriate corrections and adjustments during “preclosing review” and avoid the task in Month 13 when time is limited. Chapter C – Preclosing Review C - 14 C.4.h. Clear Reconciling Items on Deposit/Cash Reconciliations Although R*STARS has an automated deposit reconciliation process, the 12 and 13 screens need to be monitored on a regular basis. Unreconciled deposits are not available to spend. COMMON CAUSES OF PROBLEMS AND POSSIBLE SOLUTIONS: PROBLEM 1: Deposit, ACH, VISA receipt, Wire Transfer, Suspense Transfer, Debit or Credit Advice not recorded on R*STARS. SOLUTION 1: Record the transaction on R*STARS. Please refer to the SFMS Desk Manual (Trea1.pdf) for guidance. If your agency does not have a procedure for posting unidentified deposits, you will need to establish one. PROBLEM 2: A deposit did not clear the bank or Treasury. SOLUTION 2: If timing is not the issue, call your SFMS analyst and ask them to check the “bit bucket”. If they cannot locate the item, call Treasury to research. Be sure to provide them with as much documentation as you can. PROBLEM 3: Double processing of a transaction by Treasury or a warrant redemption error of $2.00 or more. SOLUTION 3: Call SFMS Operations at (503) 373-1044, ext. 255 with the information. They may have already corrected the error. If not, they will contact Treasury for a resolution. PROBLEM 4: An interfaced batch was only partially posted due to errors. SOLUTION 4: Your SFMS Analyst will contact you about error resolution. Check the R*STARS 530 screen for batch details. C.5. Comprehensive Preclosing Review Checklist Please use this checklist of questions to help ensure your accounting records are accurate, complete, and free of material errors at preclosing. Accurate and complete accounting records will facilitate a timely closing at fiscal year end and a successful financial audit for your agency. Some of these items are covered in more detail in other sections of this manual. Some preclosing checklist items are geared toward year end closing and may not be meaningful without considerable analysis. However, use this opportunity to review all checklist items to help ensure your financial reports reflect the proper accounting balances by year end. If you have any questions, please contact your SARS analyst at 503-373-7277. 1. Are all accounting transactions for your agency recorded on your books? For example, transactions related to: Chapter C – Preclosing Review C - 15 a. b. c. d. e. f. 2. 3. 4. Petty cash Cash deposited in the General Fund Treasury accounts Receivables and payables Bonds and certificates of participation Commodities, pass-through funds, fines and penalties Is the debit or credit balance of each general ledger account appropriate for the account type (i.e., assets have debit balances; liabilities have credit balances, etc.)? Have balances in System Clearing General Ledger Only, GL 2951, been cleared? Are the balance sheet accounts used in each fund type appropriate? a. b. c. Except for loans and advances, noncurrent liabilities should be in proprietary funds, fiduciary funds and the Government-wide Reporting Fund only Long-term loans and advances should be in the loaning or receiving funds rather than the Government-wide Reporting Fund Capital assets in proprietary funds, fiduciary funds and the Government-wide Reporting Fund only; no capital assets in governmental funds 5. 6. 7. Are all funds properly classified and directed to a GAAP fund other than 9999, “Default Oregon”? Are all funds in balance? Are all cash accounts reconciled to date? Are corrections recorded by the end of the accounting period? Receivables: a. b. c. Have receivables been recorded at the gross amount, with an allowance for uncollectibles recorded in the appropriate contra-account? Are current receivables included in current period revenues? Are noncurrent receivables (including the allowance account) offset by reserves or deferred revenue in governmental funds? 8. 9. Are long-term loans between agencies/funds recorded using the Advance To/From Other Agencies/Funds accounts? If advances have been recorded in the Government-wide Reporting Fund, move the advances to the proper fund. Have all funds, treasury accounts (including revolving accounts), and petty cash accounts been distributed, reimbursed, or otherwise adjusted at the end of the accounting period? If not, Due To/From accounts, advances and related accounts should be established to reflect the proper account balances within each fund. Inventories: a. b. c. d. Is a physical count of inventory items taken annually as required? Are inventories adjusted in the accounting records at least annually? Are inventory items properly classified as either “Materials and Supplies” (GL 0600) or “Stores for Resale” (GL 0601)? In governmental funds, does the total balance in inventory accounts 0600 and 0601 equal the balance in account 3005, Reserved for Inventories? Is a physical count of capital assets taken annually as required? 10. 11. 12. Capital Assets: a. Chapter C – Preclosing Review C - 16 b. c. d. e. f. g. Have all capital asset additions been reconciled to capital outlay expenditures? Have all capital assets been recorded in the property and accounting records? Have all additions, deletions, and transfers related to capital assets been recorded? Are capital assets recorded in the appropriate general ledger accounts? Is depreciation or amortization recorded for the year? In proprietary, fiduciary and the government-wide reporting funds, does the total of balances in GL accounts 0811 through 0885 (capital assets less accumulated depreciation) equal the amount reported in GL 3018, Invested in Capital Assets? 13. Capital Construction and Capital Improvements: a. b. c. Are all non-general fund capital construction and capital improvements recorded in a Capital Projects Fund? Is there sufficient revenue in the Capital Projects Fund to cover expenditures? Have general funded capital construction (D22 Appropriated Fund 8020) and capital improvements (D22 Appropriated Fund 8010) been reported in the general fund (D24 GAAP Fund 0001)? Have expenditures in the Capital Projects Fund been capitalized in the GovernmentWide Reporting Fund? d. 14. 15. Do subsidiary records agree with their general ledger control accounts? Accounts receivable, accounts payable, and capital asset GL accounts are examples of control accounts. Encumbrances: (Refer to OAM 20.20.00.) a. b. c. Do encumbrances outstanding relate to goods or services to be received in the future? For goods and services received, have the related encumbrance amounts been liquidated and an appropriate expenditure and accounts payable recorded? In accordance with policy, no encumbrances should be outstanding at the end of the biennium. Encumbered spending commitments should be canceled and re-established in the new biennium. on 16. 17. Are you ready to establish the fiscal year end liability for compensated absences based information to be provided by SARS in July? Leases: (Refer to OAM 15.60.00.) a. Are your agency's leases classified correctly? A lease must be classified as either an operating lease, lease purchase, or a capital lease. For any lease purchases or capital leases, have the associated assets and the related long-term liabilities been recorded? Does the use of fund equity accounts (fund balance or net assets, as applicable) follow the "clean surplus theory"? This theory requires that no entries be made directly to the fund balance accounts except in closing the records, recording the difference between revenues and expenditures. If there have been changes in fund balance due to transactions other than the closing of revenue and expenditure accounts, they will need to be investigated. Is the fund equity in each fund properly classified in an account appropriate for the fund type? b. 18. Fund Equity Accounts: a. b. Chapter C – Preclosing Review C - 17 c. d. 19. In governmental funds, are the reserve accounts equal and offsetting to the appropriate asset accounts? In permanent funds, does the amount recorded in Reserved for Permanent Fund Principal represent the amount to be retained in perpetuity? Are all revenues properly recorded using the modified accrual basis or accrual basis of accounting? Are revenues "from other state agencies" treated as transfers from those State agencies? Remember that a charge for services is not a transfer. Are revenues shown net of refunds? Refunds are recorded as a reduction of specific revenue accounts. Are revenues distributed to specific revenue or liability accounts by the end of the accounting period, thereby clearing Treasury accounts? For governmental funds, are only those revenues that are considered to be measurable and available reported as revenues of the current period? Are revenues that are not available reported as deferred revenues? Are revenues equal to expenditures for reimbursable programs of federal funds? If not, do you have a receivable or deferred revenue to report to cause revenues to equal expenditures for federal funds? Are agency funds free of revenues and expenditures? Revenues: a. b. c. d. e. f. g. 20. 21. Have you reviewed GAAP offset accounts to ensure the accuracy and completeness of accounting entries? A list of GAAP offset review questions is included in section C.4.b. Transfers: (Refer to section C.4.d.) a. Have you confirmed with other agencies that total transfers reported for the year match at fiscal year end? For example, a transfer out from the sending agency must be matched with a transfer in by the recipient agency. Are transfers between agencies or between funds within the agency recorded in the same accounting period? For transfers of federal funds, have you confirmed with other agencies that correct Catalog of Federal Domestic Assistance (CFDA) numbers are being used? b. c. 22. Debt Service: a. b. Has all general funded debt service (D22 Appropriated Fund 8030) been reported in the general fund (D24 GAAP Fund 0001)? Do debt service funds include sufficient cumulative revenue or transfers in to cover expenditures to date? 23. Budgetary Entries: a. b. c. Are all appropriations recorded in the current period? Are all appropriations recorded at the correct amount? Are all Emergency Board actions recorded? NOTE: R*STARS budget amounts will be obtained through a query for use in the Budgetary Schedules in the CAFR and the Budgetary Statement of Legal Compliance (BSLC). R*STARS needs to reflect complete and accurate budgetary data. Chapter C – Preclosing Review C - 18 24. Are you prepared, if necessary, to do the following before the close of June: a. b. c. Clear general ledger account 0060, Undistributed Cash? Correct any transactions with errors and verify these transactions are posted? Verify that deposits made during the fiscal year have been matched through the Manual Deposit Release Screen (12 screen)? Use the Deposit Research Screen (13 screen) to query transactions with a release status of “N” (no) and make correcting entries as needed. (Refer to SFMS Desk Manual – Trea1.pdf.) Assure that all fund profiles (D23) except suspense accounts are directed to an Appropriated Fund other than 9999 "Default Oregon"? d. Chapter C – Preclosing Review C - 19 CHAPTER D MONTH 13 - YEAR END CLOSING D.1. Overview of Month 13 Month 13 is the last period of a fiscal year in R*STARS. It is used to record year end financial statement adjustments and accruals for reporting purposes. Since Month 13 is an extension of the fiscal year, it allows posting of information that is not available at the close of Month 12 (June). However, to reduce the number of transactions needed in Month 13, agencies should keep their accounting records updated and post as many year end closing adjustments to Month 12 as possible. Please note some year end closing transaction (T)-codes (900 series) allow making accruals at higher levels than PCA or Index. When accruals are recorded in Month 13, entries to reverse these accruals are generated automatically in R*STARS in Month 1 (July) of the new fiscal year. This helps to ensure revenues and expenditures are not duplicated. When the actual payment is made or income is received, it will be offset by the reversal. If the actual event is not posted until after July, the reversal shows up as a negative amount in July’s records. When transactions that auto-reverse are posted to Month 12, the reversal is generated in Month 1 (July). T-codes that generate an auto-reversing entry are listed in the Reference Guide for Month 13 Transactions (see Section D.10.b.). What Can Be Recorded in Month 13 • • • • • • • • • Funding adjustments based on program usage estimates Reconciliation adjustments Corrections not already made by Month 12 closing Adjustments to balance transfers between other agencies Accruals of revenue or expenditures (these will automatically reverse) Material audit adjustments Reclassifications for financial statement purposes Investment fair value adjustments Securities lending adjustments What Should Not Be Recorded in Month 13 T-Codes related to unreconciled deposits (general ledger account 0065), conversion T-codes, and ADPICS T-codes should not be used in Month 13. A list of T-codes that includes those that affect general ledger account (GL account) 0065 is displayed in Section D.2. The reason these should not be used in Month 13 is because of the date of Month 13 transactions (June 31st). Since June 31st is not a valid calendar date, State Treasury systems do not recognize the date. A list of T-codes with Treasury interface is also in Section D.2. Note, however, an adjustment affecting cash is acceptable if: 1) the adjustment is within the same agency, 2) the D23 funds involved have the same GAAP fund, and 3) the D23 funds involved are tied to the same Treasury Fund. Recording Transactions Month 13 transactions must be recorded with an effective date of 06/31/XX (XX is the fiscal year), regardless of the document date. Use the T-codes recommended in the Reference Guide for Month 13 Transactions (see Section D.10.b.). General guidance for T-code selection is also included in the Oregon Accounting Manual 05.35.00.PO, 05.35.00.PR and 62.10.00.RF. The DAFQA010 "Statewide T-Code Listing by G/L Account" report and DAFQ28C0 “Transaction Code Reference Listing” are additional references. When analyzing a prospective entry, determine what the T-code does, when it can be used, and what comptroller objects are available. Also note whether or not the T-code generates an auto reversing entry and if it must be used with another T-code as a balanced entry. If you need assistance selecting T-codes, contact your SARS analyst. Chapter D – Month 13 - Year End Closing D-1 During the second year of the biennium, be aware that after the system date changes, the appropriation year (AY) defaults to the new AY, not the AY that should be used in Month 13. D.2. List of T-codes Not to be Used in Month 13 Description RECEIPT OF INVESTMENT-OR MASS TRANSIT COLL-NOTE/MTG/CONT/OTH/TAX RECV NC-GOVTL LN/NOTE/MTG/CONT/TX/OTHR RECV-NC/PROP/FID RECORD COLLECTION-NC LOAN RECV-GOVTL FD COLL OF INTEREST REC-OTHER UNBILLED COLLECTION OF INTEREST REC-OTHER BILLED COLLECTION OF INTEREST REC’V DESIGNATED CASH RECEIPTS/SALE OF FIXED ASSET-PROP/FID CASH RECPT F/RETURN OF UNREIMBURSED ADV RECORD UNIDENTIFIED RECEIPT RECOG OUTG ACH/WIRE TFR/TRES FEE –G38 COLLECTION A/R BILLED-DEP LIABILITY RECORD RECEIPT OF DEP LIAB NO DOC SUPP RECEIPT OF DEFERRED REVENUE - NO DOC SUPP RECORD RECEIPT OF DEPOSIT LIABILITY COLLECTION A/R UNBILLED TRANSFER RECOGNITION OF OUTGOING ACH/WIRE TRANSFER/TRES FEE ADJUST RECEIPT OF DEPOSIT LIABILITY RECEIPT OF DEFERRED REVENUE REFUND OF EXPENDITURE COLLECTION A/R BILLED-TRANSFER IN COLLECT INTERGOV REC (FEDERAL) UNBILLED COLLECTION A/R-OTHER BILLED COLLECTION A/R OTHER-UNBILLED/MASS TRANS REC COLLECTION INTERGOV REC (FEDERAL) BILLED COLLECTION INTERGOV REC LOCAL-BILLED RECOGNIZE INTEREST DIST. FROM TREASURY RECOGNIZE ACCRUED INTEREST PURCH REC’D COLLECTION A/R CASH EXP REFUND BILLED RECORD WIRE TF/ACH TRANSFER OUT RECORD TRANSFER IN FROM SUSPENSE ACCOUNT PAY LOSS ON BONDS/COP CALL EXP RECEIPT OF REVENUE NOT ACCRUED RECEIPT FOR MISCELLANEOUS LIABILITY RECORD CASH FOR RECONCILED DEPOSITS REVERSE UNRECONCILED DEPOSIT ALL 600 series T-Codes REMIT BACKUP WITHHOLDING TO IRS ISSUE AFS DIRECT DEPOSIT (DHS only) ADPICS - ESTABLISH A PRE-ENCUMBRANCE ADPICS - INCREASE PRE-ENCUMBRANCE ADPICS - CANCEL PRE-ENCUMBRANCE ADPICS-ENCUMBRANCE/(PRE-ENC & NOT P-ENC) ADPICS-INCREASE ENCUMBRANCE ADPICS- CANCEL ENCUMBRANCE ADPICS-DECREASE A PRE-ENCUMBRANCE ADPICS-DECREASE ENCUMBRANCE ADPICS DIRECT VOUCHER - NOT ENCUMBERED ADPICS DIRECT VOUCHER ENCUMBERED The following is a list of T-codes that should not be used in Month 13: T-Code 140 141 142 144 146 147 148 149 150 151 159 160 162 164 165 166 167 168 170 172 173 175 176 177 178 179 182 183 184 185 187 189 190 191 332 406 6XX 790 819 950 951 952 953 954 955 956 957 959 960 Chapter D – Month 13 - Year End Closing D-2 The following is a list of T-Codes that interface with Treasury. As noted in the previous section, an adjustment affecting cash is acceptable in Month 13 ONLY if: 1) The adjustment is within the same agency, 2) the D23 funds involved have the same GAAP fund, and 3) the D23 funds involved are tied to the same Treasury Fund. T-Code 291 292 293 294 296 297 298 299 301 302 314 315 398 399 400 401 402 403 404 405 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 430 431 432 433 Description EXPENDITURE TF PAID TO LGIP (NO WARRANT) REVENUE TRANSFER OUT TO LGIP(NO WARRANT) RECORD LGIP DEPOSIT FOR EXPEND TRANSFER RECORD LGIP DEPOSIT FOR REVENUE TRANSFER EXPEND TF PD TO LGIP (NO WARRANT)-ENCUMB RECORD LGIP DEPOSIT FOR EXPEND TRANSFER EXPENDITURE TF PAID TO LPIG-LOAN REC/PAY RECORD LGIP DEPOSIT FOR EXPEND TRANSFER ALLOCATION OF INDIRECT COSTS-CHARGE ALLOCATION OF INDIRECT COSTS-RECOVERY ALLOCATION OF INDIRECT REVENUES - CHARGE ALLOCATION OF INDIRECT REVENUES-RECOVERY RECLASS DEP LIAB-DOC SUPP TO REVENUE RECLASS DEP LIAB--DOC SUPP TO REVENUE OPERATING REVENUE-TRNSFR OUT(WITHIN AGY) OPERATING REVENUE-TRANSF IN (WITHIN AGY) DIST TO FUNDS WITHIN AGY-GF/OTHR TRANSFR TRANSFER IN FROM GF/OTHR FUND WITHIN AGY REIMBURS SUSPENSE ACCT FROM RECPTED ACCT RECORD SUSP ACCT REIMB FROM RECPTD ACCT MOVE REVENUE/CASH OUT MOVE REVENUE/CASH IN RECORD EXP/DECREASE CASH (WITHIN AGENCY) RECORD REVENUE/INCREASE CASH (WITHIN AG) EXPEND TRANSFER OUT/ENCUMBRD (W/IN AGY) GF TRANSFR IN(PREV ENCUMB)(W/IN AGY) REIMB SUSPENSE ACCT FROM DEP LIAB-RECPTD RECORD SUSP ACCT REIMB FROM RECPTD ACCT MOVE EXPEND/CASH INTO A FUND MOVE EXPEND/CASH OUT OF A FUND RECORD REVENUE REFUND-RECEIPTED ACCOUNT REIMBURSE SUSP ACCT FROM RECPTD ACCT RECORD TRANSFER OUT TO SUSPENSE ACCOUNT RECORD SUSP ACCT RECEIPT FROM RECPTD ACCT MOVE DEP LIAB/CASH OUT OF FUND(NON-DOC) MOVE REVENUE/CASH IN REFUND OPERATING REV-TFR IN (WITHIN AGY) OPERATING REVENUE-TRANSF IN (WITHIN AGY) OPERATING REVENUE-TRNSFR OUT(WITHIN AGY) OPER REV-REDUCTION OF TFR OUT/WITHIN AGY RECORD DUE FROM OTHER FUNDS WITHIN AGCY RECORD DUE TO OTHER FUNDS-WITHIN AGENCY MOVE DEPOSIT LIABILITY/CASH OUT OF FUND MOVE DEPOSIT LIABILITY/CASH INTO A FUND MOVE DEP LIAB/CASH OUT OF FUND(NON-DOC) MOVE DEP LIAB/CASH INTO A FUND(NON-DOC) Chapter D – Month 13 - Year End Closing D-3 T-Code 434 435 438 439 443 444 464 465 468 469 496 497 692 693 694 695 696 697 702 703 706 707 708 709 710 711 712 713 714 715 716 717 718 719 720 721 722 723 724 725 726 727 728 729 730 731 732 733 734 735 736 Description RECLASS UNREIMBURSED ADVANCE BTWN FUNDS RECLASS UNREIMBURSED ADV F/ANOTHER FUND REIMB SUSP ACCT FROM RECP'T/PREV ENCUMB. RECORD SUSP ACCT REIMB FROM RECPTD ACCT MOVE DEFERRED REVENUE/CASH OUT MOVE DEFERRED REVENUE/CASH IN MOVE REVENUE/CASH OUT ADJ A/R MOVE REVENUE/CASH IN ADJ A/R MOVE EXPEND/CASH INTO A FUND G38 MOVE EXPEND/CASH OUT OF A FUND G38 MOVE UNIDENTIFIED RECEIPT OUT OF A FUND MOVE UNIDENTIFIED RECEIPT INTO A FUND PAY SUSP AC FRM RECP AC BTWN AGN/PRE ENC RECPT OF PMT TO SUSP AC/BTW AGYS/PRE ENC REV REF TO SUSP FROM RECT'D ACCT/BTW AGY RECEIPT OF PMT TO A SUSP ACCT/BETW AGY’S REIMBURS SUSP ACCT FROM RECPTED ACCT G38 REC SUSP ACCT REIMB FR RECPTD ACCT G38 SUBGRNTE REIMB EXP TRFR OUT/ENC(BTWN AG) REIMB FOR SUBGRNTE EXP-TRFR IN (BTWN AG) EXPEND TRANSFER OUT/ENCUMB(BTWN AGYS)A/R EXPEND TFR IN/ENCUMB (BETW AGYS)-A/R EXPENDITURE TRANSFER OUT (BETWEEN AGCYS) EXPEND TFR IN AS REVENUE (BETW AGYS)-A/R REVENUE-TRFR OUT(BETW AGY)A/R-NO INVOICE QUASI-EXTERNAL TRANSFER IN(BETW AGY) A/R QUASI-EXTERNAL REVENUE REFUND- NO A/R QUASI-EXTERNAL UNIDENTIFIED/LIABILITY PMT TO SUSP FROM RECPTED ACCT/BETW AGY'S RECEIPT OF PMT TO A SUSP ACCT/BETW AGY’S QUASI-EXTERNAL REVENUE REFUND - A/R QUASI-EXTERNAL REVENUE - A/R QUASI-EXTERNAL EXP/ENCUMBERED-A/R QUASI-EXTERNAL REVENUE (A/R) REVENUE-TRANSFR OUT(BETWN AGY)NO INVOICE REVENUE-TRANSFR IN(BETWN AGY)NO INVOICE QUASI-EXTERNAL EXP-NO A/R QUASI-EXTERNAL REVENUE - NO A/R QUASI-EXTERNAL EXP/ENCUMBERED-NO A/R QUASI-EXTERNAL REVENUE - NO A/R EXPENDITURE TRANSFER OUT (BETWEEN AGCYS) EXPEND TFR IN AS REVENUE (BETWEEN AGCYS) EXPEND TRANSFER OUT/ENCUMBRD (BTWN AGYS) EXPEND TRANSF IN (BTWN AGYS) QUASI-EXTERNAL EXPEND (A/R) QUASI-EXTERNAL REVENUE (A/R) MOVE UNIDENT RECEIPT BETWEEN SFMS AGENCY MOVE UNIDENT RECEIPT BETWEEN SFMS AGENCY QUASI-EXTERNAL REVENUE REFUND- NO A/R QUASI-EXTERNAL REVENUE - NO A/R QUASI-EXTERNAL EXP-NO A/R Chapter D – Month 13 - Year End Closing D-4 T-Code 737 738 739 740 741 742 743 754 755 758 759 760 761 762 763 764 765 779 780 781 782 Description QUASI-EXTERNAL UNIDENTIFIED/LIABILITY QUASI-EXTERNAL EXP-NO A/R QUASI-EXTERNAL DEPOSIT LIABILITY-DOC SUP QUASI-EXTERNAL EXP-NO A/R QUASI-EXTERNAL REDUCTION OF EXP - NO A/R QUASI-EXTERNAL EXPEND (A/R) QUASI-EXTERNAL REDUCTION OF EXP (A/R) REDUCE REVENUE TRANSFER IN RECORD CASH RECEIVED-SUSPENSE ACCOUNT SBGRNT REIMB EXP TRF OUT/ENC(BTWN AG)-AR EXP TFR IN AS REV (BTW AGYS)-SUBGRNT A/R QUASI-EXTERNAL EXP (A/R-BILLED DEP LIAB) QUASI-EXT A/R-BILLED RE: DEP LIAB MOVE DEP LIAB/CASH OUT OF AGY(NON-DOC) RECEIPT OF CASH TO A SUSP ACCT/BETW AGYS REVRT G/F PRIOR BI $/TSFR EXPIRED $ REVRT G/F PRIOR BI $/TSFR EXPIRED $ EXP TSFR OUT/PREPAID LEGAL FEES-PROP REVENUE TSFR IN-DOJ EXP TSFR OUT/PREPAID LEGAL FEES-GOVT REVENUE TSFR IN-DOJ D.3. R*STARS Reports The R*STARS reports referred to in this section are available for reviewing year end closing information. There are several key R*STARS reports that are useful during the year end closing process. These reports can be requested once (during July) or twice (during August) each week as needed to review entries made during Month 13. A thorough review will help ensure that the year end closing adjustments are recorded properly in R*STARS. The CAFR is reported at GAAP fund level (D24 screen in R*STARS) using GAAP GL class (D14 screen) and GAAP source/object (D08 screen). Agencies enter their transactions at D23 fund level, comptroller GL (D31 screen) or agency GL (D32 screen), and comptroller object (D10 screen) or agency object (D11 screen). Because agency transactions are entered at lower levels than GAAP, agencies may need to request year end reports at multiple levels to verify the effect of entries. (See Example D3-1 which shows the various levels.) Example D3-1 GAAP Fund (D24) | Fund Profile (D23) | ORG/PGM GAAP GL Class (D14) | Comptroller GL (D31) | Agency GL (D32) GAAP Source/Object (D08) | Comptroller Object (D10) | Agency Object (D11) The budgetary comparison schedules will be presented in the Comprehensive Annual Financial Report (CAFR) as Required Supplementary Information on a budgetary basis rather than on the GAAP basis. Budgetary reporting uses the appropriated fund profile (D22 screen). Chapter D – Month 13 - Year End Closing D-5 Ordering R*STARS Reports The R*STARS report guide is available through the State Controller’s Division Web Links. Go to the State Controller’s Division web page at: http://www.oregon.gov/DAS/SCD/index.shtml. From the sidebar, select SFMS (State Financial Management Services), Publications, Manuals & Procedure Guides, and then R*STARS Report Guide. In the Introduction section, page 1-19, is the list of level options. The report guide also shows examples of various reports, source tables, formulas, and other information that is very helpful in requesting specific reports. Report parameters are set on the R*STARS 91 screen, Report Request Profile. Example D3-2 Level Options NOTE: Whenever a report indicates a specific level on the D64, “0” (zero) is a valid entry. Entering a “0” (zero) will ignore that level option. ORGANIZATION (D03) Ind. Description 0 None 1 Agency Group 2 Agency 3 Level 2 4 Level 3 5 Level 4 6 Level 5 7 Level 6 8 Level 7 9 Level 8 A Level 9 OBJECT Ind. Description 0 None 1 GAAP/NACUBO Category (D16) 2 GAAP/NACUBO Source/Object/ Grant Object (D08) 3 Comptroller Object (D10) 4 Agency Object (D11) 5 Agency Object Group (D25) PROGRAM (D04) Ind. Description 0 None 1 Level 1 (Function) 2 Level 2 (Activity) 3 Level 3 4 Level 4 5 Level 5 6 Level 6 7 Level 7 8 Level 8 9 Level 9 FUND Ind. Description 0 None 1 GAAP Fund Group (D20) 2 GAAP Fund Type (D21)/ State Fund Group(D39) 3 GAAP Fund (D24)/Appropriated Fund (D22) 4 Fund (D23) NACUBO FUND Ind. Description 0 None 1 NACUBO Fund Group 2 NACUBO Fund 3 NACUBO Subfund GENERAL LEDGER Ind. Description 0 None 1 GAAP/NACUBO GL Account Category (D13) 2 GAAP/NACUBO GL Account Class (D14) 3 Comptroller GL Account (D31) 4 Agency GL Account (D32) Chapter D – Month 13 - Year End Closing D-6 1) DAFR6620 Agency Balance Sheet The DAFR6620 produces a GAAP balance sheet for agencies that can be requested at the GAAP fund level (Fund: 3) or the D23 fund level (Fund: 4), by GAAP GL (GL Acct: 2), Comptroller GL (GL Acct: 3), or Agency GL (GL Acct: 4). Using the special select 1 field, the report may be requested at “D” detail or “S” summary levels (default is detail), and for up to eight specific D23 funds, as needed. Detail level may produce a lengthy report depending on the levels requested. Request one report at the level the agency needs for input and one at the GAAP level for CAFR analysis. Example D3-3 S091 VER 2.0 LINK TO: STATE OF OREGON REPORT REQUEST PROFILE 03/29/08 09:54 AM PROD AGENCY: 107 REQUESTER: NAME REQUEST NO: 01 REPORT ID: DAFR6620 APPN YEAR: PERIOD: 13 FY: 08 FREQUENCY: 07142008 FREQ CONTROL: S RANGE FROM DATE: THRU DATE: LEVEL - ORG: 2 PROGRAM: OBJECT: FUND:3 NACUBO FUND: GL ACCT:3 SPECIAL SELECTS AGENCY: 107 PROGRAM CODE: APPROP FUND: COMP OBJECT: GL ACCT: SPEC SEL 1: S OR AGENCY GROUP: ORG CODE: NACUBO FUND: FUND: AGY OBJECT: AGY GL ACCT: SPEC SEL 2: STATUS CODE: A LAST PROC DATE: 03182008 EFF START DATE: 01012001 EFF END DATE: Example D3-3 shows the DAFR6620 requested at GAAP fund, Comptroller GL, for Month 13 at a summary level for agency 107. Example D3-4 S091 VER 2.0 LINK TO: STATE OF OREGON REPORT REQUEST PROFILE 03/29/08 09:54 AM PROD AGENCY: 107 REQUESTER: NAME REQUEST NO: 01 REPORT ID: DAFR6620 APPN YEAR: PERIOD: 13 FY: 08 FREQUENCY: 07142008 FREQ CONTROL: S RANGE FROM DATE: THRU DATE: LEVEL - ORG: 2 PROGRAM: OBJECT: FUND:4 NACUBO FUND: GL ACCT:3 SPECIAL SELECTS AGENCY: 107 PROGRAM CODE: APPROP FUND: COMP OBJECT: GL ACCT: SPEC SEL 1: D OR AGENCY GROUP: ORG CODE: NACUBO FUND: FUND: AGY OBJECT: AGY GL ACCT: 00507180 SPEC SEL 2: STATUS CODE: A LAST PROC DATE: 03182008 EFF START DATE: 01012001 EFF END DATE: Chapter D – Month 13 - Year End Closing D-7 Example D3-4 shows the DAFR6620 requested at D23 fund, comptroller GL, for Month 13 at a detail level for D23 funds 0050 and 7180 (General Fund) for agency 107. Requesting the report at GL Acct: 4 would produce an agency GL report. 2) DAFR6610 Agency Operating Statement The DAFR6610 produces a GAAP operating statement for agencies that can be requested at the GAAP fund level (Fund: 3) or the D23 fund level (Fund: 4), by GAAP Object (Object: 2), Comptroller Object (Object: 3), Agency Object (Object: 4) or Agency Object Group (D25). Using the special select 1 field, the report may be requested at “D” detail or “S” summary levels (default is detail), and up to eight specific D23 funds, as needed. Request one report at the level the agency needs for input and one at the GAAP level for CAFR analysis. Example D3-5 S091 VER 2.0 LINK TO: STATE OF OREGON REPORT REQUEST PROFILE 03/29/08 09:54 AM PROD AGENCY: 107 REQUESTER: NAME REQUEST NO: 01 REPORT ID: DAFR6610 APPN YEAR: PERIOD: FY: FREQUENCY: 07142008 FREQ CONTROL: S RANGE FROM DATE: 01 2008 THRU DATE: 13 2008 LEVEL - ORG: 2 PROGRAM: OBJECT:3 FUND:3 NACUBO FUND: GL ACCT: SPECIAL SELECTS AGENCY: 107 PROGRAM CODE: APPROP FUND: COMP OBJECT: GL ACCT: SPEC SEL 1: S OR AGENCY GROUP: ORG CODE: NACUBO FUND: FUND: AGY OBJECT: AGY GL ACCT: SPEC SEL 2: STATUS CODE: A LAST PROC DATE: 03182008 EFF START DATE: 01012001 EFF END DATE: Example D3-5 shows the DAFR6610 requested for agency 107, Comptroller object, GAAP fund, and summary level. Example D3-6 S091 VER 2.0 LINK TO: STATE OF OREGON REPORT REQUEST PROFILE 03/29/08 09:54 AM PROD AGENCY: 107 REQUESTER: NAME REQUEST NO: 01 REPORT ID: DAFR6610 APPN YEAR: PERIOD: FY: FREQUENCY: 07142008 FREQ CONTROL: S RANGE FROM DATE: 01 2008 THRU DATE: 13 2008 LEVEL - ORG: 2 PROGRAM: OBJECT:3 FUND:4 NACUBO FUND: GL ACCT: SPECIAL SELECTS AGENCY: 107 PROGRAM CODE: APPROP FUND: COMP OBJECT: GL ACCT: SPEC SEL 1: S OR AGENCY GROUP: ORG CODE: NACUBO FUND: FUND: AGY OBJECT: AGY GL ACCT: SPEC SEL 2: STATUS CODE: A EFF START DATE: 01012001 EFF END DATE: LAST PROC DATE: 03182008 D-8 Chapter D – Month 13 - Year End Closing Example D3-6 shows the DAFR6610 requested for agency 107, comptroller object, D23 fund, and summary level. 3) DAFR8920 General Ledger Fund Detail Trial Balance This report summarizes general ledger transactions by T-code. Special select 1 is required: when special select 1 is set to “A”, the accounts are summarized by Appropriated Fund; when special select 1 is set to “F”, the accounts are summarized by D23 fund. This report is very useful in tracking GL amounts to their source transaction (i.e., T-codes beginning with 6 such as 603 or 608 are conversion transactions). The report is requestable at Comptroller GL (GL Acct: 3) or Agency GL (GL Acct: 4) depending on the agency’s needs. This report requested at the appropriated fund level should tie to the DAFR6120, Status of Appropriations and Expenditures, for analysis purposes. Example D3-7 S091 VER 2.0 LINK TO: STATE OF OREGON REPORT REQUEST PROFILE 03/29/08 09:54 AM PROD AGENCY: 107 REQUESTER: NAME REQUEST NO: 01 REPORT ID: DAFR8920 APPN YEAR: PERIOD: 13 FY: 08 FREQUENCY: 07142008 FREQ CONTROL: S RANGE FROM DATE: THRU DATE: LEVEL - ORG: 2 PROGRAM: OBJECT: FUND: NACUBO FUND: GL ACCT:4 SPECIAL SELECTS AGENCY: 107 PROGRAM CODE: APPROP FUND: COMP OBJECT: GL ACCT: SPEC SEL 1: F OR AGENCY GROUP: ORG CODE: NACUBO FUND: FUND: AGY OBJECT: AGY GL ACCT: SPEC SEL 2: STATUS CODE: A LAST PROC DATE: 03182008 EFF START DATE: 01012001 EFF END DATE: Example D3-7 shows DAFR8920 requested for agency 107 with agency GL at the D23 fund level. This report is also requestable to ORG: 3 if the agency is structured at that level and inputs data at the level. Special select 1 is “F” for the report at D23 fund level. Special select 1 = “A” is at the appropriated fund level. 4) DAFR9210 Revenues and Expenditures by Fund, Program, and Object The DAFR9210 can be used to review revenues and expenditures. This report is extremely flexible and can be requested numerous ways. Since this report can only be requested for prior periods (i.e., for annual range, FROM DATE: 01 2008 THRU DATE: 12 2008) at month end, it would be helpful to request it at the close of month 12 and again at the close of month 13 (THRU DATE: 13 2008). By requesting this report for an annual range, the entire year’s activity shows in the MONTHLY ACTIVITY column. Chapter D – Month 13 - Year End Closing D-9 Example D3-8 S091 VER 2.0 LINK TO: STATE OF OREGON REPORT REQUEST PROFILE 03/29/08 09:54 AM PROD AGENCY: 107 REQUESTER: NAME REQUEST NO: 01 REPORT ID: DAFR9210 APPN YEAR: PERIOD: FY: FREQUENCY: 07142008 FREQ CONTROL: S RANGE FROM DATE: 01 2008 THRU DATE: 12 2008 LEVEL - ORG: PROGRAM: 0 OBJECT: FUND: 4 NACUBO FUND: GL ACCT: SPECIAL SELECTS AGENCY: 107 OR AGENCY GROUP: ORG CODE: PROGRAM CODE: NACUBO FUND: APPROP FUND: FUND: COMP OBJECT: AGY OBJECT: GL ACCT: AGY GL ACCT: SPEC SEL 1: C 1 SPEC SEL 2: 03A STATUS CODE: A LAST PROC DATE: 03182008 EFF START DATE: 01/01/2001 EFF END DATE: Example D3-8 displays twelve months of activity in the “monthly activity” column and shows biennium to date. The example is being ordered at the D23 fund level (Fund: 4). The special selects 1 and 2 of “C 1” and “0 3A” are as follows: C-comptroller object; 1-Include neither encumbrances or pre-encumbrances; 0-no agency codes; 3-includes cash and accruals; A-all revenues, expenditures, operating transfers, accruals, GAAP offsets, and suspense account activity. Example D3-9 S091 VER 2.0 LINK TO: STATE OF OREGON REPORT REQUEST PROFILE 03/29/08 09:54 AM PROD AGENCY: 107 REQUESTER: NAME REQUEST NO: 01 REPORT ID: DAFR9210 APPN YEAR: PERIOD: FY: FREQUENCY: 07142008 FREQ CONTROL: S RANGE FROM DATE: 01 2008 THRU DATE: 12 2008 LEVEL - ORG: PROGRAM: 0 OBJECT: FUND: 4 NACUBO FUND: GL ACCT: SPECIAL SELECTS AGENCY: 107 OR AGENCY GROUP: ORG CODE: PROGRAM CODE: NACUBO FUND: APPROP FUND: FUND: COMP OBJECT: AGY OBJECT: GL ACCT: AGY GL ACCT: SPEC SEL 1: C 1 SPEC SEL 2: 03G EFF START DATE: 01012001 EFF END DATE: STATUS CODE: A LAST PROC DATE: 03192008 Example D3-9 shows the DAFR9210 requested for GAAP offset entries only for the period 01 2008 through 12 2008. Chapter D – Month 13 - Year End Closing D - 10 Example D3-10 S091 VER 2.0 LINK TO: STATE OF OREGON REPORT REQUEST PROFILE 03/29/08 09:54 AM PROD AGENCY: 107 REQUESTER: NAME REQUEST NO: 01 REPORT ID: DAFR9210 APPN YEAR: PERIOD: FY: FREQUENCY: 07142008 FREQ CONTROL: S RANGE FROM DATE: 01 2008 THRU DATE: 13 2008 LEVEL - ORG: PROGRAM: 0 OBJECT: FUND: 4 NACUBO FUND: GL ACCT: SPECIAL SELECTS AGENCY: 107 OR AGENCY GROUP: ORG CODE: PROGRAM CODE: NACUBO FUND: APPROP FUND: FUND: COMP OBJECT: AGY OBJECT: GL ACCT: AGY GL ACCT: SPEC SEL 1: C 1 SPEC SEL 2: 03G EFF START DATE: 01012001 EFF END DATE: STATUS CODE: A LAST PROC DATE: 03192008 Example D3-10 shows the DAFR9210 requested for FY 2008 GAAP offset entries through period 13. 5) DAFR6120 Status of Appropriations and Expenditures Use the DAFR6120 to verify agency budget amounts and expenditures by appropriated fund. Special select 1 can be set at three levels: 1=cash expenditures only, 2=cash plus accrued expenditures, and 3=cash and accrued expenditures plus encumbrances outstanding. This report can be requested for a range up to 30 months to cover the life of the appropriation. For example, in the first year of the 2007-2009 biennium, request for 01 2008 through 13 2008; in the second year of the biennium, range 01 2009 through 13 2009 for 2009 only, and 01 2008 through 13 2009 for the biennium to date. Example D3-11 S091 VER 2.0 LINK TO: STATE OF OREGON REPORT REQUEST PROFILE 03/29/08 09:54 AM PROD AGENCY: 107 REQUESTER: NAME REQUEST NO: 01 REPORT ID: DAFR6120 APPN YEAR: 03 PERIOD: FY: FREQUENCY: 07142008 FREQ CONTROL: S RANGE FROM DATE: 01 2008THRU DATE: 13 2009 LEVEL - ORG: PROGRAM: OBJECT: FUND: NACUBO FUND: GL ACCT: SPECIAL SELECTS AGENCY: 107 PROGRAM CODE: APPROP FUND: COMP OBJECT: GL ACCT: SPEC SEL 1: 1 OR AGENCY GROUP: ORG CODE: NACUBO FUND: FUND: AGY OBJECT: AGY GL ACCT: SPEC SEL 2: STATUS CODE: A EFF START DATE: 01012001 EFF END DATE: LAST PROC DATE: 03182008 Example D3-11 shows a biennial activity report request for agency 107 on a cash basis. Chapter D – Month 13 - Year End Closing D - 11 6) DAFQ28C0 and DAFQA010 The following screen prints show how to order the reports mentioned in Section D.1, Overview of Month 13 Transactions. General guidance for T-code selection is also included in the Oregon Accounting Manual 05.35.00.PO, 05.35.00.PR and 62.10.00.RF. S091 VER 2.0 LINK TO: AGENCY: 107 STATE OF OREGON REPORT REQUEST PROFILE REQUESTER: NAME REQUEST NO: 10 03/29/08 09:54 AM PROD REPORT ID: DAFQ28C0 APPN YEAR: PERIOD: FY: FREQUENCY: 07142008 FREQ CONTROL: S RANGE FROM DATE: THRU DATE: LEVEL - ORG: PROGRAM: OBJECT: FUND: NACUBO FUND: GL ACCT: SPECIAL SELECTS AGENCY: PROGRAM CODE: APPROP FUND: COMP OBJECT: GL ACCT: SPEC SEL 1: OR AGENCY GROUP: ORG CODE: NACUBO FUND: FUND: AGY OBJECT: AGY GL ACCT: SPEC SEL 2: STATUS CODE: X LAST PROC DATE: 03182008 EFF START DATE: 01012001 EFF END DATE: S091 VER 2.0 LINK TO: AGENCY: 107 STATE OF OREGON REPORT REQUEST PROFILE REQUESTER: NAME REQUEST NO: 10 03/29/08 09:54 AM PROD REPORT ID: DAFQA010 APPN YEAR: PERIOD: FY: FREQUENCY: 07142008 FREQ CONTROL: S RANGE FROM DATE: THRU DATE: LEVEL - ORG: PROGRAM: OBJECT: FUND: NACUBO FUND: GL ACCT: SPECIAL SELECTS AGENCY: PROGRAM CODE: APPROP FUND: COMP OBJECT: GL ACCT: SPEC SEL 1: OR AGENCY GROUP: ORG CODE: NACUBO FUND: FUND: AGY OBJECT: AGY GL ACCT: SPEC SEL 2: STATUS CODE: X LAST PROC DATE: 03182008 EFF START DATE: 01012001 EFF END DATE: Printing R*STARS Reports The default location for printing these reports is the DAS Print Plant on Airport Road. The reports can be delivered to the agency. If an agency has a “Remote Job Entry (RJE)” printer at the agency, and knows the device ID and the approximate length of the report, an agency may print some R*STARS reports locally. A very long report would tie up the RJE printer for a significant amount of time. Instructions for printing the reports are listed below. Use the R*STARS 95 screen, Report Distribution Profile, to direct printing and delivery of reports. Chapter D – Month 13 - Year End Closing D - 12 1) Remote Printing In order to send the output to a printer located in the agency, the Print Remote Indicator must be set centrally to “Y” on the D64 screen, the Report Control Profile. You may need to check with SFMS staff, 503-373-1044, ext. 279, to determine if your agency has a remote printer. To establish a remote printer, refer to the R*STARS Report Guide. 2) Central Printing If the job is to print at the DAS Print Plant, please provide instruction as to delivery site or intended recipient. This will print on the banner page of the report. If nothing is specified, the report will be delivered to SFMS Operations for distribution. 3) 95 Screen Examples Example D3-12 shows a request for reports. Leaving REQUEST NO. and REPORT ID blank allows this entry to route all reports that are requested for agency 107, requestor JMOR to the address listed. MEDIA TYPE: SPL1 is the default printer. STATUS CODE: A shows that the request is active. To inactivate this distribution request, type “I” (capital I) in the Status Code. COPIES: 01 indicates that only one copy of each report is being requested. Example D3-12 S095 VER 2.0 STATE OF OREGON 03/297/08 08:18 AM LINK TO: REPORT DISTRIBUTION PROFILE PROD AGENCY: 107 REQUESTER: JMOR REQUEST NO: REPORT ID: DIST CODE: 0000 MEDIA TYPE:SPL1 DEVICE ID: COPIES: 01 NAME: JANE MORELAND ADDRESS 1: DAS/SARS ADDRESS 2: 155 COTTAGE ST NE U50 CITY: SALEM STATE: OR ZIP: 97301-3969 MAIL CODE: PHONE: 503737277 INSTRUCTIONS: PLEASE DELIVER TO THIRD FLOOR STATUS CODE: A EFF START DATE: 04111995 EFF END DATE: LAST PROC DATE: 02272008 Z07 NEXT RECORD SUCCESSFULLY READ Example D3-13 shows a request for a specific report, REQUEST NO.72 for DAFR8680, in this case. If the requester wants multiple copies of a report printed to various specific devices, the DIST CODE must be different for each specific request, since the rest of the key may be identical (107, JMOR, 72, DAFR8680). Refer to the R*STARS Report Guide on the SCD web page for additional guidance. Chapter D – Month 13 - Year End Closing D - 13 Example D3-13 S095 VER 2.0 STATE OF OREGON 04/27/08 08:23 AM LINK TO: REPORT DISTRIBUTION PROFILE PROD AGENCY: 107 REQUESTER: JMOR REQUEST NO: 72 REPORT ID: DAFR8680 DIST CODE: 0001 MEDIA TYPE: SPL3 DEVICE ID: COPIES: 01 NAME: JANE MORELAND ADDRESS 1: DAS/SARS ADDRESS 2: 155 COTTAGE ST NE U50 CITY: SALEM STATE: OR ZIP: 97301-3969 MAIL CODE: PHONE: 373 7277 INSTRUCTIONS: DELIVER TO 3RD FLOOR STATUS CODE: A EFF START DATE: 04111995 EFF END DATE: LAST PROC DATE: 02272008 Z07 NEXT RECORD SUCCESSFULLY READ Example D3-14 shows a request to a remote printing device for a specific report, DAFR8650, request no.16. This request is inactive (STATUS CODE: I) for PROD AGENCY: 000 (SFMS Central) with the DIST CODE: RMTE (remote.) If the agency requests a specific report number to be printed to a specific device, the 91 screen must show a status of “A” (active), and be requested for the correct frequency. For year end closing reports, the frequency field on the 91 screen, Report Request Profile, should be set to the print date desired; using MONTHLY, WEEKLY, etc. may not work for period 13 due to the frequency of requestable report runs (two times a week in August). Example D3-14 S095 VER 2.0 STATE OF OREGON 03/29/08 08:27 AM LINK TO: REPORT DISTRIBUTION PROFILE PROD AGENCY: 000 REQUESTER: MARY REQUEST NO: 16 REPORT ID: DAFR8650 DIST CODE: RMTE MEDIA TYPE: RJE DEVICE ID: SFMS COPIES: 01 NAME: MARY WESTERFIELD ADDRESS 1: SFMS-DAS ADDRESS 2: 155 COTTAGE ST NE U60 CITY: SALEM STATE: OR ZIP: 97301-3970 MAIL CODE: PHONE: INSTRUCTIONS: STATUS CODE: I EFF START DATE: 11051996 EFF END DATE: LAST PROC DATE: 03182008 Z07 NEXT RECORD SUCCESSFULLY READ If an agency does not receive the report that the agency expected to receive, or it is not at a useful level, the agency should contact their SARS analyst for assistance. Chapter D – Month 13 - Year End Closing D - 14 D.4. Datamart Repository Reports Agency Balance Sheet and Operating Statement SARS has developed reports for agency use and has placed them on the Datamart Repository for statewide access. Reports similar to the DAFR 6620 (Agency Balance Sheet) and the DAFR 6610 (Agency Operating Statement) have been placed on the repository, providing agencies the capability to query their accounting data periodically during month 13. Throughout the year, the Datamart is updated each Friday. Cumulative Month 13 queries, DAFR6610per13 and DAFR6620per13, and queries for the current month, DAFR6610month and DAFR6620month, are available year round. These queries provide comparison data from the prior fiscal year. During year end closing, additional queries for the Balance Sheet and Operating Statement are available using the Year End Tables. Only the Year End Tables are updated on Tuesdays, Thursdays, and Saturdays during Month 13. To take advantage of the additional updates to the Year End Tables, use queries DAFR6610yeper13 and DAFR6620yeper13. The DAFR6620yeper13 (Balance Sheet) data lists period 13 data from the current and closed balances of the prior fiscal year. DAFR6610yeper13 (Operating Statement) is for the current period only and does not provide comparison data. GAAP Offset Report A GAAP offset query is also available on the repository for analysis of changes in certain balance sheet accounts (see GAAP Offset Review in C.4.b). SEFA Reports Agencies that directly use R*STARS are required to use specific grant profiles for accounting and reporting of federal grants. This ensures consistency in the accounting data and facilitates compilation of the statewide Schedule of Federal Expenditures (SEFA) as required by OMB Circular A-133. Agencies will use the standard Hyperion query that is available on the Datamart Repository for SEFA reporting. Agencies that interface transactions to R*STARS are encouraged, but not required, to use specific grant profiles. Agencies are responsible for reviewing the data to ensure accuracy and completeness of the SEFA for their agency. Other Repository Reports There is a variety of ‘shared’ reports on the repository that have been created by other agencies which may be helpful during information gathering processes. These reports will have the following dialog in the description field of the report: “This is a Shared Repository Report. Your agency may find the need to make modifications to this report for accurate reporting.” Accessing the Repository Note: These instructions are applicable if the Open Catalog Extension (OCE) is already set up. Instructions to create an OCE are available through the following link on the SARS website: http://www.oregon.gov/DAS/SCD/SARS/Datamart.shtml. From there, click on New User Setup for SCD Accounting and OSPA Datamart and SCD Accounting Datamart Open Catalog Extension. Chapter D – Month 13 - Year End Closing D - 15 In order to use the Hyperion queries on the repository, the OCE must be set up to ‘see’ the repository. To verify or modify the OCE, go to the Tools menu and select Connection and then Modify. Proceed until the following dialog box is displayed, and click on the Define box with Owner Name next to it. Chapter D – Month 13 - Year End Closing D - 16 • • • Find the following name: YEAREND. Click on this item. Press the OK button and then click Finish. Save the OCE. The OCE will then recognize the repository. Select Open from Repository from the File menu. Select the OCE. Chapter D – Month 13 - Year End Closing D - 17 Select Standard Query with Reports. When a report is highlighted, a brief description is displayed in the Description box. After the report is selected, load it by (1) double clicking on the report name or (2) pressing the ‘Open’ button. The query and the EIS page will be loaded. • • • Click on the buttons in the order specified in the instructions. Please be careful to limit to your agency, and review the fiscal years to make sure the correct time periods are extracted. Process the query, and then click on the report section (listed on the left side of the screen) to display the reports. Click on the report icons in the left section of the screen to review and print the reports as desired. Chapter D – Month 13 - Year End Closing D - 18 D.5. Statewide Balancing Report A web-based set of statewide balancing reports is produced by SARS to facilitate statewide balancing of transfers and other interagency transactions. The reports include: Advances To/From Other Funds, sorted by GL account 0950 Advances To/From Other Funds, sorted by GL account 1800 Due To/From Other Funds, sorted by GL account 0586 Due To/From Other Funds, sorted by GL account 1532 Indirect Transfers Interagency Transfers sorted by Transfers In Interagency Transfers sorted by Transfers Out Lottery Transfers Operating Transfers There are two reports for each report type. The first version shows all balances for an agency, and the second shows totals only for those items out of balance (exceptions). Access the reports using this URL: http://egov.oregon.gov/DAS/SCD/SARS/swbreports.shtml The agency number is near the upper left-hand corner of the report. You must scroll through the pages of the report to your agency. During year-end closing, SARS will update data in the Statewide Balancing Reports on the same schedule as the Datamart. The title of the menu and the footer in each report will indicate the date of update. D.6. Accounting Estimates for Year End Accruals and Deferrals To give a fair and accurate presentation of the financial status of the State, revenues and related expenditures or expenses must be reported in the period giving them economic substance. Due to the short time frame to make year end adjustments, informed predictions must be made about transactions, account balances, and future events. In governmental funds, the modified accrual basis of accounting is used. If revenue is measurable and available (meaning, it is expected to be collected in time to pay liabilities existing at the end of the period), then it should be included in the current year governmental fund financial statements. Likewise, expenditures should be included that are expected to be paid out of revenues of the current period. To determine which revenues and expenses should be accrued for those funds that use the modified accrual basis of accounting, a cutoff date is selected, which for the State of Oregon is September 30 following fiscal year end. For example, a current receivable should be recorded for any revenue owed to your agency as of June 30 that is expected to be collected by September 30. These amounts are recorded at their net realizable value (the net amount expected to be received in cash). Proprietary, fiduciary, and activities recorded in the Government-wide Reporting Fund (GWRF) are accounted for under the accrual basis of accounting. Here, revenues are recorded when earned and expenses are recorded at the time related liabilities are incurred. All assets and liabilities associated with the operation of these funds are listed on the balance sheet. These include receivables and payables recognized in agency funds on the accrual basis. Chapter D – Month 13 - Year End Closing D - 19 Because the government-wide financial statements are prepared on the accrual basis, governmental activity must be reflected two ways, on the modified accrual basis in the fund financial statements and on the full accrual basis in the government-wide financial statements. This means that the shortterm and long-term receivables and payables must be classified accordingly in R*STARS. Capital assets and long-term liabilities are recorded in the GWRF on the basis of full accrual. Depreciation related to capital assets is also recorded and accumulated in the GWRF. For government-wide reporting in the Statement of Activities, revenue must also be recognized on the accrual basis of accounting (vs. the modified accrual basis in governmental funds). In some instances, revenue may not be recognized at the same time as the related receivable under the modified accrual approach. However, revenue that is considered unavailable in governmental funds must be recognized in the Government-wide Statement of Activities. The additional amount of revenue to be recognized in the Government-wide Statement of Activities is equal to the amount that GL account 3003, Reserved for Long-Term Receivables, increased or decreased over the course of the year. Agencies are not required to make an entry in R*STARS to reflect this change. Rather, a compilation entry is made by SARS, using information provided by the agencies in a disclosure form concerning GL account 3003. Refer to sample disclosure form in Chapter F. Since estimated accrual amounts are dependent on unknown future events and developments, the current period amounts must be evaluated on a subjective basis. Estimates are made based on reasonably reliable data, but they can, and probably will, change when the actual figures are received. Waiting for those figures will insure accuracy, but the timeliness of the financial statements will be lost. Year end accruals need to be made when reasonable estimates can be determined. R*STARS agencies must have the estimates recorded on the agency books by the close of Month 13. Historical data is a good place to start when developing estimates for year end accruals and deferrals. Each account must be evaluated on a case by case basis, looking at past experience, age of accounts, and then adjusting for current trends of general economic conditions. Estimates are always uncertainties but a process that is simple and straight forward, based on established methods of comparing estimated and actual figures, will keep misstatements to a minimum. Things to consider: Materiality. Time should not be spent on making complicated estimates on accounts that are not material in amount; however, the materiality is relative to the level at which the reporting is being done. Complexity. The more complicated the calculations involved in making the estimates, the greater the possibility of a material error. Practicality. It may not be practical or cost effective to use current data to make accounting estimates. Instead it may be more reasonable to use knowledge of the agency and prior year actual data to develop reasonable accruals. Consistency. Once a reasonable method of estimating accruals has been developed and documented, it should be used consistently from year to year. This will reduce the likelihood of errors and decrease the time and effort required to calculate the estimates. Documentation. Document your methodology. The auditors will need this information in order to determine if an estimate is reasonable. In addition, it allows the auditors to audit the process, not necessarily actual outcomes several months later. When auditors look at estimates, the first area they will consider is whether all material accruals and deferrals have been made. Do the estimated accruals and deferrals appear reasonable with respect Chapter D – Month 13 - Year End Closing D - 20 to the financial statements as a whole? Are the estimates in accordance with GAAP? Auditors normally perform analytical procedures to compare accruals from year-to-year and may follow up on large and/or unusual changes. For the most part, any reasonable method that is well documented should be acceptable. The auditors’ main objective is to evaluate the reasonableness of estimates. A worksheet that may be helpful in determining the amount of your accounting estimate is in section H.5. (Forms). If you need assistance, your SARS analyst can review your methodology. D.7. GAAP Offset Accounting GAAP offset accounting is designed to recognize expenses/expenditures for cash flow and budgetary purposes, while presenting the financial statements on a GAAP basis. GAAP offsets are simply a mechanism used to report the same information using different bases of accounting. As an example: a proprietary fund purchases a vehicle. For GAAP basis, the transaction represents an exchange of one asset (cash) for another asset (vehicle). However, for budgetary accounting, the expenditure for the vehicle must appear as Capital Outlay expense. The GAAP Expenditure offset GL account used in T-code 545 to capitalize the vehicle will offset the expenditure for financial reporting purposes. The expenditure will still be reported as an expense for budgetary purposes since GAAP offset GL accounts are not included in budgetary reports. DR Capital Outlay CR Cash Purchase of motor vehicle DR 5,000 5,000 Motor Vehicles 5,000 CR GAAP Offset (capital outlay comp object) 5,000 Capitalization of motor vehicle with t-code 545 When the books are closed at fiscal year end, the GAAP offset and the expenditure close to fund balance resulting in a zero effect. In governmental funds, the Capital Outlay expenditure is recorded as in the example above, but the GAAP offset T-code is not used within the same fund. T-code 545 is used in the Government-wide Reporting Fund to record the asset and offset the capital outlay for government-wide reporting only. For more detail on T-codes that use GAAP offsets, refer to the Appendix section. If you are uncertain about which T-code to use, check your prior year entries or contact your SARS analyst. The DAFR9210 report, Revenues and Expenditures by Fund, Program, and Object, can be requested with or without GAAP offset revenues/expenditures. It can also be requested for only GAAP offset amounts; this report should match the balances in R*STARS GL accounts 3200 GAAP Offset Revenues and 3600 GAAP Offset Expenditures. If the amounts do not agree, review the transactions involved; the cause is usually one side of a two-sided entry not being recorded. Transactions are detailed by T-code on the DAFR8920 report, General Ledger Fund Detail Trial Balance, which may help with research related to GAAP offsets. There is also a GAAP offset query on the Datamart Repository to assist with review. For proprietary and fiduciary funds, GAAP offset accounting serves to explain changes in long-term assets and liabilities by revenue/expense object. GAAP offsets are used in the same way in the Government-wide Reporting Fund. Chapter D – Month 13 - Year End Closing D - 21 D.8. Agency Certification of Accuracy and Completeness Year end closing culminates with the compilation of statewide financial statements and the accompanying note disclosures, as well as with the completion of the audit of the statewide financial statements. The accuracy and completeness of statewide information is dependent entirely on the accuracy and completeness of the financial information prepared by individual state agencies. To help demonstrate the importance of preparing accurate and complete financial information, state agencies are requested to complete a certification form. This form is completed and signed at the time that required disclosure forms are sent to SARS. In much the same way as an audit representation letter, the Agency Certification of Accuracy and Completeness is intended to help ensure the transmitted information reflects the agency’s financial activities and agrees with the ending balances in the agency’s financial accounting records, and that the accounting records are in conformity with generally accepted accounting principles and legal requirements. The Agency Certification of Accuracy and Completeness is signed by the agency CAFR Accountant and either the agency’s Chief Financial Officer or Director, depending on which person is more appropriate. A copy of the certification form is located in the Forms section of the Agency Guide at H.3. In addition, Form H.4 is the Agency Certification of Accuracy and Completeness that is signed by the agency SEFA contact and either the agency’s Chief Financial Officer or Director, depending on which person is more appropriate. Form H.4 is used to transmit SEFA information and SEFA disclosures. D.9. Preparing for Year End Closing Prior to the close of Month 12, agencies are highly encouraged to have a clearly defined and wellorganized plan of Month 13 activities. A schedule of the accounting adjustments that are expected to be made and when, and the information that is needed for each adjustment is helpful in completing Month 13 with the greatest degree of success and efficiency. D.9.a. Revisit/Complete Preclosing Review Procedures 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. D.9.b. Clear balance in GL account 2951 Reconcile GAAP offset accounts Reconcile changes in fund equity Review interfund and interagency accounts Review appropriations and update for E-Board changes Adjust R*STARS for prior year post closing adjustments (if needed) Review last year’s closing adjustments Clear reconciling items on deposit/cash reconciliations Review comprehensive preclosing review checklist Clear out-of-balance situations Verify Expenditure Budgets in R*STARS by June Close To receive the GFOA Certificate of Achievement for Excellence in Financial Reporting, budgetary compliance must be demonstrated. Since agencies budget at various levels in accordance with the legislatively approved budget, budgetary compliance is best presented in a separate document, the Budgetary Statement of Legal Compliance (BSLC). In R*STARS, cash expenditures plus encumbrances cannot exceed the legal budget for each appropriation. Since the BSLC is prepared to demonstrate legal compliance, it will be prepared on a cash-basis (plus encumbrances). Month 13 accruals are at a high level and are not entered against the appropriation table (62 screen); thus, accruals are not reflected in the BSLC. Chapter D – Month 13 - Year End Closing D - 22 Agencies may request R*STARS report DAFR6120, Status of Appropriations and Expenditures, with or without encumbrances, accruals, pre-encumbrances, unscheduled and reverted amounts. This report may be useful in verifying expenditure budgets. For reporting purposes, appropriation data from R*STARS is queried from the appropriation table (62 screen) via the datamart. Thus, agencies should make every effort to ensure appropriation amounts are accurate by the close of June each year. The amounts entered in R*STARS are compiled into the BSLC and reconciled with data from the Oregon Budget Information and Tracking System (ORBITS), which tracks all budgetary adjustments. This reconciliation begins after the close of June using the queried appropriation data. Agency appropriation adjustments not entered on the 62 screen by close of June result in reconciling items between R*STARS and the CAFR. Differences between R*STARS and the CAFR may be caused by the following: • • E-board actions not entered in R*STARS by close of June (i.e., April and June E-boards). Appropriations approved but not set up on 62 screen for R*STARS (i.e., missing appropriation number, new fund needs to be created, need more information on appropriation restrictions/limitations). Agency appropriated/limited funds must demonstrate budgetary compliance; expenditures in excess of legal authority (if any) must be explained in the notes to the financial statements. D.10. Year End Closing Procedures D.10.a. Year End Closing Review YEAR END CLOSING REVIEW FISCAL YEAR ENDING JUNE 30, 20XX 1. OUT-OF-BALANCE CONDITIONS Governmental accounting follows established rules often referred to as double-entry accounting. Therefore each fund must be in balance. Are your funds in balance? 2. CASH AND INVESTMENTS Cash and cash equivalents are normally current assets that are generally available to meet the cost of operations or to pay current liabilities. Some cash and cash equivalents are noncurrent assets that are restricted for certain purposes. All cash must be reported for financial reporting purposes. Cash accounts in R*STARS consist of: 0065 0070 0072 0075 0077 0080 0081 0085 0928 Unreconciled Deposit Cash on Deposit with Treasurer Cash on Hand Cash on Deposit – Suspense Account at Treasury Cash in Bank Cash with Fiscal Agents – Restricted Current Cash with Fiscal Agents - Unrestricted Cash Equivalent Cash and Cash Equivalents - Restricted If Cash with Fiscal Agents is held at the State Treasury in the Bond and Coupon Account, it should be recorded in comptroller GL account 0080; it is insured up to $100,000 per bondholder. For monies held at institutions other than the State Treasury, the collateralization agreement should be verified annually. Chapter D – Month 13 - Year End Closing D - 23 a. b. c. d. Have you recorded all cash amounts in R*STARS, including revolving or suspense accounts that may be posted to R*STARS only at year end? Is your cash properly classified? Please take care to properly classify cash held with the State Treasury and cash held with other depositories. Have you reclassified all cash equivalents as of June 30 to GL account 0085, Cash Equivalent, in accordance with OAM 15.10.00.PO? Have restricted cash and cash equivalents outside Treasury been reclassified to GL account 0928, Cash and Cash Equivalents - Restricted? (Restricted cash and cash equivalents are reserves or other amounts set aside as part of long-term debt agreements or customer deposits.) Have you reimbursed all of your expenditures from revolving funds by June 30? Does your agency have Cash in Bank (on deposit outside of State Treasury), GL account 0077? If yes, please complete the related year end disclosure form. Does your agency have Cash with Fiscal Agents-Restricted Current, GL account 0080 or Cash with Fiscal Agents-Unrestricted, GL account 0081? If yes, please complete the related year end disclosure forms. Does your agency have Cash Equivalents, GL account 0085? If yes, please complete the related year end disclosure form. Does your agency have Restricted Cash and Cash Equivalents, GL account 0928? If yes, please complete the related year end disclosure form. Does your agency have Investments-Other, GL account 0250; Investments-Restricted Current, GL account 0290; or Investments-Restricted, GL account 0940; NOT held at Treasury? If yes, please complete the related year end disclosure form. Does your agency have Securities Held in Trust, GL account 0330? If yes, please complete the related year end disclosure form. Does your agency have Savings and TCD Held in Trust, GL account 0335? If yes, please complete the related year end disclosure form. Have your agency’s investments been marked to their June 30th fair value in accordance with OAM 15.15.00.PO and 15.15.00.PR? Have investments that are held outside State Treasury that meet the definition of restricted been reclassified to GL account 0290, Investments-Restricted Current, or GL account 0940, Investments-Restricted? (Generally, restricted investments will be related to current and future debt service or customer deposits.) Refer to OAM 15.15.00.PR. Prior to the reclassification of restricted investments, did the following balances agree to Treasury’s records for designated investments or to Trustee or other independent third party records for investments held outside Treasury as of June 30? Designated Investments: Par Value = GL account 0240 Designated Investments Amortized Cost = GL 0240 + GL 0261 Premium - GL 0281 Discount Fair Value = GL 0240 + 0261 - 0281 +/- 0245 Valuation-Designated Investments - Other: Par Value = GL account 0250 Investments – Other Amortized Cost = GL 0250 + GL 0261 Premium - GL 0281 Discount Fair Value = GL 0250 + 0261 - 0281 +/- 0255 Valuation-Other e. f. g. h. i. j. k. l. m. n. o. Chapter D – Month 13 - Year End Closing D - 24 3. RESTRICTED ASSETS Restricted assets are defined as resources, for which the use is restricted by legal or contractual requirements (e.g., bond indentures). Does your agency have restricted assets at fiscal year end? If yes, please complete the related year end disclosure form so that the purpose of the restriction can be included in the CAFR footnotes. Please include any restricted assets held at Treasury. (Agencies should reclassify restricted balances not held at Treasury to GL account 0928, Cash and Cash Equivalents-Restricted, and/or GL account 0290, Investments-Restricted Current, and/or GL account 0940, Investments – Restricted.) In contrast to restricted net assets, restricted assets result when specific assets are set aside to satisfy restrictions as opposed to the restriction of a revenue source. (Refer to No. 4 immediately below.) 4. RESTRICTED NET ASSETS When a revenue source is restricted, the resulting net assets (equity – meaning, the assets minus the related liabilities) of the activity should be reported as restricted net assets. The restriction applies to the available net assets (or fund balance for governmental funds) remaining from the unspent restricted revenue. Does your agency have a revenue stream with remaining unspent restricted revenue? If yes, please complete the related year end disclosure form. 5. INTRA-AGENCY AND INTER-AGENCY RECEIVABLES AND PAYABLES RECORDED WITH TRANSFER COMPTROLLER OBJECTS Due from and due to other funds/agencies are short-term amounts owed by one fund to another fund within the same agency or amounts owed by one state agency to another. Examples include short-term advances and amounts collected by one fund/agency to be transferred to another fund/agency. In R*STARS, Due from Other Funds/Agencies are recorded in GL account 0586. Due to Other Funds/Agencies are recorded in GL account 1532. Due to, Due from, Advance to and Advance from transactions require that the first three digits of the eight-digit Agency GL field designate the companion agency involved in the transfer transaction. The next four digits are the D23 fund of the other agency and the final digit is zero. It is essential that the D23 fund of the other agency be correct, as the Agency GL field is used for disclosure purposes in the CAFR. For statewide balancing purposes, SARS provides a special report that uses the “agency GL” field on each transaction to match accruals between agencies and funds. This report, referred to as the “Statewide Balancing Report,” can be used to identify out of balance due to and due from amounts. See Section D.5. Agencies with Accounts Receivable recorded with transfer comptroller objects should reclassify the receivable using T-code 927 and record a Due from Other Agencies with Tcode 920. The companion agency records a Due to Other Agencies with T-code 919. a. Does GL account 0586, Due from Other Funds/Agencies, equal GL account 1532, Due to Other Funds/Agencies, in total? (Use the statewide balancing report to review these.) Are the balances correct? For interagency accruals (due from other agencies and due to other agencies), are the companion agency and fund properly identified in the agency GL field? Are the balances correct? (Example transactions are provided in Chapter C of this manual.) For interagency accruals (due from other agencies and due to other agencies), have you communicated with the other agencies involved (companion agencies) to confirm these accounts are in agreement between agencies? b. c. Chapter D – Month 13 - Year End Closing D - 25 6. ADVANCES Advances to and from other funds/agencies are long-term amounts owed by one fund to another fund within an agency or one state agency to another. Advances should be recorded in the fund(s) involved and not in the Government-wide Reporting Fund. In R*STARS, Advances from other funds/agencies are recorded in GL account 1800. Advances to other funds/agencies are recorded in GL account 0950. Advance to and Advance from transactions (as well as Due to and Due from transactions) require that the first three digits of the eight-digit Agency GL field designate the companion agency involved in the transaction. The next four digits are the D23 fund of the other agency and the final digit is zero. It is essential that the D23 fund of the other agency be correct, as the Agency GL field is used for disclosure purposes in the CAFR. For statewide balancing purposes, there is a special report which uses the “agency GL” field on each transaction to match advances between agencies and funds. SARS’ Statewide Balancing Report can be used to identify out of balance advance to and advance from amounts. (See Section D.5.) a. Does GL account 0950, Advance to Other Funds/Agencies, equal GL account 1800, Advance from Other Funds/Agencies? (Use the statewide balancing report to review these.) Are the balances correct? For governmental funds only, is GL account 3002, Reserved for Advances to Other Funds/Agencies, equal to GL account 0950, within each fund? (Does not apply to Proprietary or Fiduciary Funds.) For advances to other agencies (included in GL account 0950) and advances from other agencies (included in GL account 1800), are the companion agency and D23 fund properly identified by the first three and next four digits in the agency GL field? Are the balances correct? (Example transactions are provided in Chapter C of this manual.) For GL accounts 0950 and 1800, have you communicated with the companion agencies to confirm these accounts are in agreement between agencies? Have you properly recorded advances in the fund which received the loan (advance), and not in the Government-wide Reporting Fund (GAAP fund 8500)? b. c. d. e. 7. INVENTORIES Inventories generally represent the cost of supplies on hand for use in agency operations. For proprietary funds, inventories would also include the value of goods held for resale. A physical count of expendable inventories should be taken at least annually. a. b. For each fund, is the balance in GL account 0600, Inventories-Materials and Supplies, and GL account 0601, Inventories-Stores for Resale, correct? For governmental funds only, is the balance in GL account 0600 and GL account 0601 equal to GL account 3005, Reserved for Inventories, within each fund? (Does not apply to Proprietary or Fiduciary Funds.) In governmental funds, is the change in inventory offset by GAAP offsets? (T-code 503.) c. 8. PREPAID ITEMS AND DEFERRED CHARGES Expenditures made for goods or services which will benefit future periods should be recorded in GL account 0602, Prepaid Expenses, or GL account 0603, Deferred Charges. In Chapter D – Month 13 - Year End Closing D - 26 governmental funds, GL account 3001, Reserved-Other, is used as an offset for Prepaid Expenses. a. b. Have all prepaid and deferred items been reported in GL accounts 0602 and/or 0603? In governmental funds only, does the balance in GL account 0602, Prepaid Expenses, equal the balance in GL account 3001, Reserved-Other, within each fund? (Does not apply to Proprietary or Fiduciary Funds.) In governmental funds, is the change in prepaid expenses offset by GAAP offsets? (T-code 515.) c. 9. CURRENT RECEIVABLES Current receivables should be recorded for any revenues owed to your agency as of June 30 and expected to be collected by September 30. Current receivables should be reported at the full face amount and offset in the appropriate contra-account to reflect estimated uncollectibles. Receivables should not be recorded in a receivable GL account at a net amount. Use T-code 127 to record the estimated uncollectibles for current receivables in GL account 0502, Allowance for Uncollectible Accounts–Current. Current receivable GL accounts include: 0410, 0411, 0501-0504, 0507, 0510, 0535, 0542, 0543, 0547, 0572-0576, and 0580. a. b. Are all current receivables accounted for in R*STARS and reported at full face amounts with an allowance for doubtful accounts recorded, if applicable? Interest earned, but not yet received as of June 30, needs to be recorded in the appropriate interest receivable GL account: 0574, Interest Receivable-Other-Billed; GL account 0575, Interest Receivable-Other-Unbilled; or GL account 0576, Interest Receivable-Designated Investments. Is all interest earned as of June 30 included in interest receivable? Are the balances correct? Have any amounts in accounts receivable pertaining to interagency transfers in been properly reclassified in R*STARS from accounts receivable to Due from Other Agencies? (T-code 927.) c. 10. LONG-TERM NOTES, CONTRACTS, MORTGAGES, AND OTHER RECEIVABLES In addition to Loans Receivable, valid long-term receivable GL accounts include the following in R*STARS: 0420 0930 0932 0933 0934 0935 0937 Taxes Receivable - Noncurrent Notes Receivable - Noncurrent Contracts Receivable Mortgage Receivable Allowance for Uncollectible-NC Recv, Contracts, Mortgages, Notes, Other Other Receivables - Noncurrent Allowance for Uncollectible-Taxes Noncurrent The offsetting reserve for the above accounts is GL account 3003, Reserved for Noncurrent Receivables-Other, Notes, Mortgages, Contracts, Taxes. If uncollectible amounts are involved, the receivables should be recorded at full face value, with the estimated uncollectible amount recorded in the appropriate contra-account. a. b. Are all long-term receivables recorded at full face value? Does the sum of GL accounts 0420, 0930, 0932, 0933, 0934, 0935, and 0937 equal GL account 3003 within each fund? (Does not apply to Proprietary or Fiduciary Funds.) Chapter D – Month 13 - Year End Closing D - 27 c. Does your agency have an amount in GL account 3003, Reserved for Noncurrent Receivables-Other, Notes, Mortgages, Contracts, Taxes, in a governmental fund? If yes, please complete the related year end disclosure form. 11. LOANS RECEIVABLE Long-term Loans Receivable, GL account 0931 and Allowance for Uncollectible Accounts— Noncurrent Loans Receivable, GL account 0936 are offset by GL account 2998, Reserved for Loans Receivable. a. b. Are all loans receivable recorded at full face value? In governmental funds, does the sum of GL accounts 0931 and 0936 equal GL account 2998 within each fund? 12. CAPITAL ASSETS Capital assets are major tangible or intangible assets with a cost of $5,000 or more that benefit an agency for more than a single fiscal year. Capital assets should be recorded at historical cost when purchased. The cost of a capital asset should include ancillary charges necessary to place the asset in use. Donated property should be recorded at the estimated fair market value at the date of gift with T-code 537R and comptroller object 2550, Capital Contributions. Agencies should classify capital assets, including infrastructure, in the applicable GL account based on the nature of the asset. (Refer to OAM Procedure 15.60.10.PR for additional guidance.) a. Within each proprietary fund and within GAAP fund 8500 (Government-wide Reporting Fund), does the sum of all capital asset GL accounts and all accumulated depreciation GL accounts equal Invested in Capital Assets, GL account 3018? Asset Accounts 0811 0812 0815 0816 0817 0818 0850 0852 0856 0840 0841 0842 0843 0844 0845 0861 0862 0863 b. c. Accumulated Depreciation Accounts____ Works of Art and Historical Treasures – No Depr Works of Art and Hist Treas—Depr 0876 Accum Depr – Works of Art/Hist Equipment and Machinery 0869 Accum Depr – Equip and Mach Motor Vehicles 0872 Accum Depr – Motor Vehicles Data Processing Software 0868 Accum Amort - Data Proc Softw Data Processing Hardware 0873 Accum Depr.—Data Proc Hrdw Land Buildings & Building Improvts 0875 Accum Depr–Bldgs& Bldg Imprv Land Improvements 0867 Accum Depr—Land Imprvmt State Highways 0880 Accum Depr – State Highways Other Roads 0885 Accum Depr – Other Roads Tunnels and Bridges 0881 Accum Depr – Tunnls & Bridges Airports 0882 Accum Depr – Airports Utility Systems 0883 Accum Depr – Utility Systems Docks, Dikes and Dams 0884 Accum Depr–Docks,Dikes,& Dams Construction in Progress Leasehold Improvements 0870 Accum Amort–Leasehld Imprvmt Capital Leased Property 0871 Accum Amort – Cap Leasd Prop Do your agency's capital asset GL accounts include all assets acquired during the year (including infrastructure)? Have the assets acquired by capital outlay expenditures included in accounts payable been included in either the Government-wide Reporting Fund or in the capital asset accounts of a proprietary or fiduciary fund? Chapter D – Month 13 - Year End Closing D - 28 d. In proprietary funds and fiduciary funds, have capital outlay expenses been eliminated using GAAP Offsets? Have capital outlay expenditures in governmental funds been eliminated using GAAP offsets in the Government-wide Reporting Fund? (T-code 545.) Do the additions to capital assets in the Government-wide Reporting Fund reconcile with total capital outlay expenditures in all governmental funds? Has depreciation expense been recorded for all depreciable capital assets? e. f. 13. WORKS OF ART AND HISTORICAL TREASURES – NOT CAPITALIZED Has your agency chosen not to capitalize any individual items or collections of Works of Art or Historical Treasures with historical cost (or fair value, if donated) of $5,000 or greater? If yes, please complete the related year end disclosure form. 14. OUTSTANDING DEBT RELATED TO CAPITAL ASSETS Does your agency have outstanding debt that was issued to purchase or construct capital assets? If yes, please complete the related year end disclosure form. The information you provide will be used to calculate your agency’s amount of Invested in Capital Assets, Net of Related Debt. 15. CAPITAL ASSET IMPAIRMENTS A capital asset is impaired when its service utility declines significantly and unexpectedly. Did your agency record any capital asset impairments during the year? If so, please complete the related year end disclosure form. (Refer to OAM 15.60.25 for further guidance.) 16. INSURANCE RECOVERIES An insurance recovery may be associated with a capital asset impairment or may be related to recovery for an insured loss (such as theft). Did your agency recognize any insurance recoveries during the year? Is so, please complete the related year end disclosure form. 17. CAPITAL LEASE OBLIGATIONS Capital leases are contracts with outside parties in which the outside party transfers substantially all the benefits and risks inherent in the ownership of the leased property. The long-term portion of the liability for capital leases should be reported in GL accounts 1715, Lease Purchases Contracts Payable–Noncurrent, or 1716, Obligations Under Capital Lease– Noncurrent. Capital leases should initially be recorded at the present value of the minimum lease payments. At year end, agencies should make an entry to reclassify the current portion of the lease to GL account 1280, Lease–Purchase Contracts Payable–Current or GL account 1281, Obligations Under Capital Lease–Current. a. a. Does your agency have capital lease obligations? If yes, please complete the related year end disclosure form. Have any entries for capital leases been recorded in the Government-wide Reporting Fund during the fiscal year? If yes, please complete the related year end disclosure form. Have all leases meeting the criteria for capital leases been recorded as such? (Refer to Oregon Accounting Manual 15.60.30.PR for further guidance.) Have capital leases been recorded at the present value of minimum lease payments? b. c. Chapter D – Month 13 - Year End Closing D - 29 d. For all new capital leases, have you recorded the capital assets and long-term liability using T-code 466? (For governmental funds originating a lease liability, the asset and liability are recorded in the Government-wide Reporting Fund.) In governmental funds, were payments (expenditures) made to reduce the liability recorded in the governmental fund that originated the liability rather than a debt service fund? Have payments on capital leases been recorded to reduce the lease obligation? (Tcode 459.) In proprietary and fiduciary funds and the Government-wide Reporting Fund, has depreciation expense for the capitalized asset been recorded? (T-code 542.) In proprietary and fiduciary funds and the Government-wide Reporting Fund, has the current portion of the lease liability at year end been appropriately classified? (Tcodes 475/475R.) e. f. g. h. 18. OPERATING LEASE COMMITMENTS An operating lease is a leasing arrangement that does not transfer the risk of ownership to the lessee. Any lease not meeting the definition of a capital lease must be recorded as an operating lease. Does your agency have any operating leases? If yes, please complete the related year end disclosure form. 19. CONSTRUCTION CONTRACT COMMITMENTS Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds, fiduciary funds, or general fund appropriations). Budgetary accounting requires all capital projects to be accounted for in a Capital Projects Appropriated Fund in R*STARS. For reporting purposes, only those capital projects not financed by a proprietary fund, fiduciary fund, or general fund appropriation are required to be reported in a Capital Projects Fund. A capital project being financed in a proprietary or fiduciary fund should be capitalized in the proprietary or fiduciary fund. Some capital construction, such as for State Highways, may not be accounted for in a Capital Projects Fund. Capital construction financed from governmental fund resources should be capitalized in the Government-wide Reporting Fund. a. Does your agency have any capital projects being financed by proprietary or fiduciary funds? If yes, are the assets properly classified in those funds as construction in progress or if the project is complete, in the appropriate asset GL account? Does your agency have any capital construction projects that are partially completed as of June 30? If yes, be sure they are reported in GL account 0861, Construction in Progress, and complete the related year end disclosure form. Have any capital construction projects completed prior to June 30 been reclassified from the Construction in Progress GL account to the appropriate capital asset GL account(s)? Does your Capital Projects Fund include enough revenues or transfers-in to cover expenditures to date? If not, record the necessary revenue or transfer-in. b. c. d. 20. COMMITMENTS (OTHER THAN OPERATING LEASES OR CONSTRUCTION CONTRACTS) Generally accepted accounting principles require disclosure of commitments for unperformed contracts and other commitments such as loan and grant programs. Does your agency have commitments related to executory (unperformed) contracts that are not capital construction projects or leases, and are not recorded in R*STARS as encumbrances? If so, please Chapter D – Month 13 - Year End Closing D - 30 complete the related year end disclosure form. Examples of commitments included in this disclosure include grant agreements with local governments and contracts with attorneys for indigent defense services. 21. ACCOUNTS PAYABLE An accounts payable is incurred when goods or services are received prior to fiscal year end, but are not paid for until after that date. The portion of Reserved for Encumbrances (GL account 3011) in R*STARS that represents goods or services actually received prior to June 30, which will be paid by December 31, needs to be reclassified to accounts payable. See section D.10.c. for guidance. a. b. Are all goods or services received prior to June 30, which will be paid for prior to December 31, reported in GL account 1215, Accounts Payable? Have any amounts in Accounts Payable (GL account 1215) pertaining to interagency transfers out been properly reclassified on R*STARS from Accounts Payable to Due to Other Funds/Agencies (GL account 1532)? 22. COMPENSATED ABSENCES Amounts owed to employees for unpaid vacation and compensatory leave are known as compensated absences payable. During the third week in July (after the second June payroll run), SARS will provide Vacation Leave Reports to the agency CAFR accountants. Accounting for Compensated Absences requires that an additional amount be accrued as a liability for salary-related payments associated with the payment of compensated absences, using the rates in effect at the balance sheet date. Salary-related payments subject to this accrual are those items for which an employer is liable to make a payment directly and incrementally associated with payments made for compensated absences on termination. The Employee Accrued Leave Balance Report includes adjustments for these payments; thus, agencies do not need to increase report balances. In governmental funds, compensated absences only become payable when an employee terminates employment. The amounts payable upon termination in governmental funds have been determined to be immaterial statewide to the financial statements. Given a “first in-first out” flow assumption, analysis of GAAP requirements and OSPS compensated absences data indicates the compensated absence liability should be reported as follows: Governmental Funds – no liability reported Proprietary, Fiduciary and Government-wide Reporting Funds XX% Vacation payable-current XX% Vacation payable-noncurrent SARS will provide the applicable percentages in correspondence accompanying the Vacation Leave Reports. a. In proprietary funds, fiduciary funds, and the Government wide Reporting Fund, was T-code 440 used to record an increase (T-code 440R to record a decrease) in GL account 1605, Vacation Payable-Current? Was T-code 442 used to record an increase (T-code 442R to record a decrease) in GL account 1718, Vacation Payable-Noncurrent, in these same funds? Are the balances in GL accounts 1605 and 1718 correct? b. c. Chapter D – Month 13 - Year End Closing D - 31 23. LONG-TERM LIABILITIES For governmental funds, where the focus is on the flow of current financial resources, longterm liabilities represent obligations that are not expected to require the use of current available resources. These obligations, including the current portion (payable within one year of the balance sheet date), are reported in the Government-wide Reporting Fund. a. Are balances for the following liabilities recorded in the Government-wide Reporting Fund rather than governmental funds? (Does not apply to Proprietary or Fiduciary Funds.) 1577 1617 1619 1621 1622 1625 1626 1635 1640 1702 1703 1704 1705 1709 1712 1713 1714 1715 1716 1717 1719 1720 1721 1722 1725 1726 1727 1730 1735 1740 1750 b. Trust Funds Payable – Noncurrent Claims and Judgments Payable – Current Arbitrage Rebate Payable – Current Mortgage Payable – Current Contracts Payable-Retainage – Current Legal Reserves – Current Reported Claims-Risk Mgmt – Current Loans Payable – Current Notes Payable – Current Discount on COPS Sold Premium on COPS Sold COPS Payable – Noncurrent Deferred Loss/(Gain) on Debt Refunding Accreted Interest Payable Discount on Bonds Sold Premium on Bonds Sold Bonds Payable – Noncurrent Lease-Purchase Contracts Payable – Noncurrent Obligations Under Capital Lease – Noncurrent Claims and Judgments Payable Arbitrage Rebate Payable Accounts Payable – Noncurrent Mortgage Payable Contracts Payable – Retainage Legal Reserves Reported Claims Risk Management Legal IBNR Original/Acquisition Loan Fees Loans Payable IBNR Reserves Risk Management Notes Payable – Noncurrent Long-term liabilities of governmental funds, with the exception of Advances from Other Funds/Agencies, must be reported in the Government-wide Reporting Fund (GWRF). Have all long-term liabilities, with the exception of advances, been properly recorded in the GWRF and not in the governmental fund itself? Is the increase in Bonds/COPS Payable supported by Bond/COP Proceeds and the decrease in Bonds/COPS Payable supported by principal payments made during the fiscal year? For governmental funds, were new bond proceeds recorded as revenue (Other Financing Source) in the governmental fund (T-code 567) and eliminated with GAAP offsets in the GWRF (T-code 504)? c. d. Chapter D – Month 13 - Year End Closing D - 32 e. f. For governmental funds, was the discount or premium on new bond/COP issues recorded in the governmental fund and eliminated with GAAP offsets in the GWRF? In governmental funds, were expenditures related to bond or COP issuance, reported as Other Debt Service in the governmental fund and eliminated with GAAP offsets in the GWRF (T-code 514)? In proprietary and fiduciary funds, have bond and COP proceeds (revenues) been eliminated using GAAP offsets? For governmental funds, were new loans made recorded with T-code 471 in the governmental fund? T-code 471 eliminates the debit to expenditure with a GAAP offset. For governmental funds, were loan repayments recorded with T-code 144 in the governmental fund? T-code 144 eliminates the revenue with a GAAP offset. In proprietary and fiduciary funds, have loan proceeds (revenues) and loans made (expenses) been eliminated using GAAP offsets? For debt service and other governmental funds, were debt service principal payments recorded as expenditures in the governmental fund and eliminated with GAAP offsets in the GWRF (T-code 528)? In proprietary and fiduciary funds, have debt service principal payments (expenses) been eliminated? For governmental funds, were other revenue and expenditure items related to longterm accounts eliminated with GAAP offsets in the GWRF? In proprietary and fiduciary funds, do other revenue and expense items related to long-term accounts equal $0? In proprietary and fiduciary funds and in the GWRF, has an interest accrual been made for interest payable equal to the interest accrued through June 30 (T-code 437)? In proprietary funds and in the GWRF, has the principal for Bonds/COPS Payable due within one year been reclassified and reported separately at year end (GL accounts 1276 and 1279)? Does your agency have Long-Term Claims and Judgments Payable? If yes, please complete the related year end disclosure form. List total increases and decreases by GL account. Do not net changes. (Related GL accounts are 1617, 1625, 1626, 1717, 1725, 1726, 1727, and 1740.) If your agency has Long-Term Claims and Judgments Payable, has the amount that will be paid within one year been reclassified to a current liability in the GWRF or proprietary fund, as applicable? (Related GL accounts are 1617, 1625 and 1626.) Does your agency have Long-Term Contracts, Mortgages, and Notes Payable? If yes, please complete the related year end disclosure form. List total increases and decreases by GL account. Do not net changes. (Related GL accounts are 1621, 1622, 1635, 1640, 1720, 1721, 1722, 1730, 1735 and 1750.) If your agency has Long-Term Contracts, Mortgages and Notes Payable, has the amount that will be paid within one year been reclassified to a current liability in the GWRF or proprietary fund, as applicable? (Related GL accounts are 1621, 1622, 1635, and 1640.) g. h. i. j. k. l. m. n. o. p. q. r. s. t. Chapter D – Month 13 - Year End Closing D - 33 u. Does your agency have Arbitrage Rebate Payable? If so, the amount that will be paid within one year should be reclassified to a current liability (GL account 1619) within the proprietary fund or GWRF as applicable. Please complete all applicable disclosures in the CAFR Debt Disclosure Package. v. 24. DEFERRED REVENUE Under the full accrual basis of accounting, deferred revenue represents resources received but not earned as of the end of the fiscal year, which will be reported in a subsequent period as a revenue or a reduction of expenditure. Under the modified accrual basis of accounting (governmental funds), it is not enough that revenue has been earned if it is to be recognized as revenue of the current period. In governmental funds, if assets are not yet available to finance expenditures of the current period, then those assets must also be offset by a corresponding liability for deferred revenue. Deferred revenue is reported in GL accounts 1603, Deferred Revenue–Non Document Supported, and 1604, Deferred Revenue– Document Supported. Use T-Codes 164 and 170 to record deferred revenue in GL accounts 1603 and 1604 respectively. Use T-Codes 492 and 493 to record deferred revenue as it is earned. Have amounts for deferred revenue been recorded as of year end? 25. TRANSFERS Interfund transfers are defined as flows of assets between funds or agencies without equivalent flows of assets in return and without a requirement for repayment. Payments (expenditures/expenses) for goods or services provided by one agency to another are not considered transfers. Please answer the questions below to ensure that transfer accounts balance as required within your agency and that the amounts for each account are correct. The comptroller objects involved are: 1279 through 1400 (Transfer from Other Funds); 1401-1403, 1430 and 1801 through 1914 (Transfer to Other Funds), and 6081 through 6200 (Special Payments to State Agencies), excluding 6093. Use SARS’ Statewide Balancing Report to help balance these accounts. a. For interagency transfers, have you communicated with the other agencies involved (companion agencies) to confirm that total transfers reported for the year match at fiscal year end? Within your agency, does comptroller object 1301, Transfer In from Other Fund, agree with comptroller object 1401, Transfer Out to Other Fund? Do the GASB 38 codes reference the correct companion fund? Are the balances correct? Does comptroller object 1356, Transfer In from Indirect Cost Center, equal comptroller object 1456, Transfer Out to Indirect Cost Center? Do the GASB 38 codes reference the correct companion fund? Are the balances correct? Does comptroller object 1303, Transfer In from General Fund, equal comptroller object 6200, Intra-agency General Fund Transfer? Do the GASB 38 codes reference the correct companion fund? Are the balances correct? Did your agency have transfers exceeding $25 million during the year that were not routine and were inconsistent with the activities of the fund making the transfer? If yes, please complete the related year end disclosure form. b. c. d. e. 26. GENERAL FUND EXPENDITURES ON BEHALF OF PROPRIETARY FUNDS Is your agency showing expenditures in GAAP fund 0001 (General Fund) that were made on behalf of a proprietary fund? If yes, please complete the related year end disclosure form. Chapter D – Month 13 - Year End Closing D - 34 27. DISCOUNTS AND ALLOWANCES IN PROPRIETARY FUNDS Does your agency provide trade discounts or sales allowances during the normal course of business in its proprietary funds? If yes, please complete the related year end disclosure form. 28. INVESTMENTS FOR CASH FLOW STATEMENT PURPOSES - PROPRIETARY FUNDS For each proprietary fund that has investments, please complete the related year end disclosure form. 29. CASH FLOW STATEMENT DISCLOSURE ANALYSIS - PROPRIETARY FUNDS For each proprietary fund, please complete the related year end disclosure form. 30. VIOLATIONS OF LEGAL OR CONTRACTUAL PROVISIONS Completion of the year end disclosure form related to violations of legal or contractual provisions is required. Did your agency incur any significant or recurring violations of legal or contractual provisions during the fiscal year? 31. E-BOARD REQUESTS PENDING AT CLOSE OF MONTH 13 The agency budget, as approved by the legislature, determines an agency's expenditure levels for the biennium. An agency may not spend more than authorized. The appropriation amounts entered in R*STARS are compiled into the Budgetary Statement of Legal Compliance (BSLC) for reporting and need to reconcile with data from the Oregon Budget Information Tracking System (ORBITS), which tracks all budgetary adjustments. a. b. c. d. Are the balances at June 30, in agreement with ORBITS data? Have all Emergency Board actions been recorded in R*STARS? Are you aware of any pending E-Board requests that will not be finalized until after Month 13 closes? If so, please complete the related year end disclosure form. For each appropriation number, are expenditures less than the biennial budget? Use R*STARS 62 screen or the DAFR6120, Status of Appropriations and Expenditures, report to review budgets. 32. CHANGES IN FUND EQUITY A fund's equity (net assets or fund balance, as applicable) is the difference between its assets and its liabilities. Fund equity for governmental funds (fund balance) is the difference between the financial assets of the fund and certain liabilities expected to be liquidated in the near future. Fund equity for proprietary funds and fiduciary funds (net assets), is the difference between assets and liabilities. Did your agency's fund equity account(s) change due to transactions other than closing revenue and expenditure accounts or recording budgets? Use the DAFR6620 report to compare the current year amount to the prior year amount for the following GL accounts: 3004 3008 3020 3023 3025 3026 Net Assets Held in Trust – Postemployment Healthcare Net Assets Held in Trust for Pension Benefits Unreserved, Undesignated Fund Balance Net Assets Held in Trust Net Assets Net Assets—State Only If there is a change from the prior year to the current year, please complete the related year end disclosure form. Chapter D – Month 13 - Year End Closing D - 35 33. PERMANENT FUNDS For permanent funds (GAAP fund 7505), has the fund balance been properly classified into two portions: GL account 3010, Reserved for Permanent Fund Principal, and GL account 3020, Unreserved Undesignated Fund Balance? The amount in Reserved for Permanent Fund Principal should represent the amount required to be held in perpetuity. 34. PRIOR PERIOD ADJUSTMENTS A prior period adjustment is defined as the correction of a revenue or expenditure (operating statement) error in the prior year financial statements. T-codes 113, 114, 119, 124 and 125 are used with GL account 3060, Prior Period Adjustment, to record prior period adjustments in all fund types. SARS needs to disclose material prior period adjustments in the CAFR as determined at the statewide level, aggregated by GAAP fund. Did your agency record prior period adjustments of $500,000 in aggregate, by GAAP fund, to correct a prior fiscal year error? If yes, please complete the related year end disclosure form. 35. CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE Accounting changes are defined as changes from one generally accepted accounting principle, practice, or method of applying them to another. T-codes 113, 114, 119, 124 and 125 are used with GL account 3064, Accounting Change, to record accounting changes in all fund types. SARS needs to disclose material accounting changes in the CAFR as determined at the statewide level, aggregated by GAAP fund. Did your agency record accounting changes of $500,000 in aggregate, by GAAP fund, during the fiscal year? If yes, please complete the related year end disclosure form. 36. RELATED PARTY TRANSACTIONS A related party is one which can exercise control or significant influence over the management and/or operating policies of another party, to the extent that one of the parties may be prevented from fully pursuing its own separate interests. Has your agency engaged in any related party transactions during the past fiscal year? If yes, please complete the related year end disclosure form. 37. JOINT VENTURES A joint venture is defined as: A legal entity or other organization that results from a contractual arrangement and that is owned, operated, or governed by two or more participants as a separate and specific activity subject to joint control in which the participants retain (a) an ongoing financial interest or (b) an ongoing financial responsibility. Did your agency participate in any joint ventures during the past fiscal year? If yes, please complete the related year end disclosure form. 38. AFFILIATED ORGANIZATIONS Certain organizations warrant inclusion as part of the financial reporting entity because of the nature and significance of their relationship with the primary government (State of Oregon), including their ongoing financial support of the State or its other component units. A legally Chapter D – Month 13 - Year End Closing D - 36 separate, tax-exempt organization should be reported as a component unit within the reporting entity if all of the following criteria are met: 1. The economic resources received or held by the separate organization are entirely or almost entirely for the direct benefit of the State, its component units, or its constituents. The State, or one of its component units, is entitled to, or has the ability to otherwise access, a majority of the economic resources received or held by the separate organization. The economic resources received or held by an individual organization that the State, or one of its component units, is entitled to, or has the ability to otherwise access, are significant to the State. 2. 3. During the fiscal year, was your agency associated with any fund-raising or other organizations that would qualify for inclusion in the State’s Comprehensive Annual Financial Report? 39. AGENCY FUNDS Agency funds (GAAP Funds 6405 and 6406) are used to account for assets held in a purely custodial (6405) or clearing (6406) capacity and thus do not involve measurement of results of operations. There should be no revenues or expenditures reported in GAAP fund 6405. If you have revenues/expenditures recorded in GAAP fund 6405, please make appropriate correcting entries. Assets held for the State should not be reported in fiduciary funds. Therefore, balances in agency funds established as clearing accounts (GAAP fund 6406) must be moved to appropriate GAAP funds at year end. GASB Statement No. 24, states that, as a general rule, pass-through grants should be recognized as revenue and expenditures or expenses. The statement provides that agency funds be used to account for cash pass-through grants only in rare instances when the recipient government serves as a cash conduit and has no administrative or direct financial involvement with the grant. In those instances where some degree of administrative or direct financial involvement exists, GASB 24 requires the recognition of revenue and expenditures/expenses for monies passed on to secondary recipients. Does your agency receive cash pass-through grants? If yes, please review your accounting for those grants to ensure they are being accounted for in accordance with GASB Statement No. 24. a. b. Is GAAP Fund 6405 (Custodial Agency funds) free of revenue and expenditures? Have balances in GAAP Fund 6406 (Clearing Agency funds) been reduced to zero by moving them to an appropriate GAAP Fund? 40. NONCASH ASSISTANCE Some federal financial assistance received by the State comes in a form other than cash. Examples of noncash assistance include free rent, food commodities, and donated property. Noncash assistance is disclosed in Oregon’s Schedule of Expenditures of Federal Awards. Does your agency receive noncash assistance directly or indirectly from the federal government? If yes, please complete the related year end SEFA disclosure form. 41. LOANS AND LOAN GUARANTEES Does your agency make loans with federal funds? If yes, please complete the related year end SEFA disclosure form. Chapter D – Month 13 - Year End Closing D - 37 42. FEDERAL FUND REVENUE Federal revenues should equal expenditures when the federal grants are reimbursable grants. Analysis is done by appropriated fund, since federal D23 funds do not roll to a summary GAAP level fund. a. For reimbursable grants, do federal revenues equal reimbursable expenditures and do those expenditures reconcile to the amount of expenditures you will report on your Schedule of Expenditures of Federal Awards? Did your agency receive any nonreimbursable (fee for service) federal funds for the year? If yes, federal revenues may not equal expenditures. b. D.10.b. Reference Guide for Month 13 Transaction Codes Listed below are examples of Month 13 T-Codes, including available comptroller GL accounts. The last two columns indicate the basis of accounting for which the T-Code can be used (modified accrual or accrual). T DR Code GL CR GL Description Auto Reverse T-Code Balancing T-Code Modified Accrual Full Accrual Capital Asset Transactions 540 To move completed construction in progress to permanent asset account in a proprietary, fiduciary or government-wide reporting fund. 0811 WORKS OF ART AND HISTORICAL TREAS - NO DEPRECIATION 0812 WORKS OF ART AND HISTORICAL TREAS - DEPRECIATION 0815 EQUIPMENT AND MACHINERY 0816 MOTOR VEHICLES 0817 DATA PROCESSING SOFTWARE 0818 DATA PROCESSING HARDWARE 0840 STATE HIGHWAYS 0841 OTHER ROADS 0842 TUNNELS AND BRIDGES 0843 AIRPORTS 0844 UTILITY SYSTEMS 0845 DOCKS, DIKES, AND DAMS 0850 LAND 0852 BUILDINGS AND BUILDING IMPROVEMENTS 0856 LAND IMPROVEMENTS 0862 LEASEHOLD IMPROVEMENTS 0863 CAPITAL LEASED PROPERTY 0861 CONSTRUCTION IN PROGRESS To record depreciation or amortization of capital assets in a proprietary, fiduciary or government-wide reporting fund. This entry also records an offset to accumulated depreciation or amortization. See GAAP Offset Transactions in Appendix I. To record the purchase, increase or adjustment of an asset in a proprietary, fiduciary, or government-wide reporting fund. See GAAP Offset Transactions in Appendix I. X 542 X 545 X Receivables Transactions 127 To record allowance for receivables deemed uncollectible. 3101 REVENUE CONTROL - ACCRUED 0502 ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS - CURRENT To establish a receivable/investment that will not be billed and to accrue the revenue for financial statement purposes. 0060 UNDISTRIBUTED CASH RECEIPT 0250 INVESTMENTS - OTHER 0410 TAXES RECEIVABLE - CURRENT 0503 ACCOUNTS RECEIVABLE - OTHER - UNBILLED 0504 ACCOUNTS RECEIVABLE - SUSPENSE ACCOUNTS 0542 ACCOUNTS RECEIVABLE - FEDERAL - UNBILLED X X 436 981 X X Chapter D – Month 13 - Year End Closing D - 38 T DR Code GL 0572 0575 0576 0930 0931 0932 0933 1575 CR GL Description Auto Reverse T-Code Balancing T-Code Modified Accrual Full Accrual NOTES RECEIVABLE - CURRENT INTEREST RECEIVABLE - OTHER - UNBILLED INTEREST RECEIVALBE - DESIGNATED INVESTMENTS NOTES RECEIVABLE - NONCURRENT LOANS RECEIVABLE CONTRACTS RECEIVABLE MORTGAGE RECEIVABLE TRUST FUNDS PAYABLE 3105 REVENUE CONTROL - FINANCIAL STATEMENT ACCRUAL 461 To establish/adjust non-current receivables for proprietary, fiduciary, and government-wide fund types. See GAAP Offset Transactions in Appendix I. X Liabilities Transactions (No Bond or COP) 457 To record other non-current liabilities that create an expenditure for repayment in a proprietary, fiduciary or government-wide fund. See GAAP Offset Transactions in Appendix I. X Bond and COP Transactions 520 To record the amortization of cost of issuance, original issue discount, underwriters discount, prepaid expense, deferred charge for bonds/COPs in a proprietary, fiduciary, or government-wide reporting fund. See GAAP Offset Transactions in Appendix I. To record the amortization of the original premium for bonds/COPs in a proprietary, fiduciary, or government-wide reporting fund. See GAAP Offset Transactions in Appendix I. To establish or adjust accreted interest payable for bonds/COPs in a proprietary, fiduciary, or government-wide reporting fund. See GAAP Offset Transactions in Appendix I. To establish or adjust the liability for arbitrage rebate payable in a proprietary, fiduciary, or government-wide reporting fund. See GAAP Offset Transactions in Appendix I. X 523 X 524 X 526 X Other Miscellaneous Transactions 440 To record change in current vacation payable. See GAAP Offset Transactions in Appendix I. To record change in noncurrent vacation payable. See GAAP Offset Transactions in Appendix I. To record prepaid items, deferred charges or inventory balances in a proprietary or fiduciary fund. See GAAP Offset Transactions in Appendix I. To record or adjust inventory and change inventory reserve in a governmental fund. See GAAP Offset Transactions in Appendix I. X X X 442 X 500 X 503 Deferred Revenue Transactions 443 To correct deferred revenue balance with a reduction of cash. Deferred revenue originally recorded with TC 170. See GAAP Offset Transactions in Appendix I. To correct deferred revenue balance with an increase to cash. Deferred revenue originally recorded with TC 170. See GAAP Offset Transactions in Appendix I. 444 X X 444 443 X X Financial Statement Transactions 437 To establish an estimated expenditure or to accrue an expenditure for financial statement purposes. 3505 EXPENDITURE CONTROL - FINANCIAL STATEMENT ACCRUAL 0060 UNDISTRIBUTED CASH RECEIPT 1215 ACCOUNTS PAYABLE 1230 INTEREST PAYABLE - CURRENT 1512 DUE TO OTHER GOVERNMENTS 983 X X Chapter D – Month 13 - Year End Closing D - 39 T DR Code GL 902 CR GL Description Auto Reverse T-Code 976 Balancing T-Code 903 Modified Accrual X Full Accrual X To reclass (decrease) cash expenditures within the same fund at year end. 2952 GENERAL LEDGER REVENUE/EXPENDITURE CORRECTION CLEARING ACCOUNT 3500 EXPENDITURE CONTROL - CASH To reclass (increase) cash expenditures within the same fund at year end. 3500 EXPENDITURE CONTROL-CASH 2952 GENERAL LEDGER REVENUE/EXPENDITURE CORRECTION CLEARING ACCOUNT To establish an unrecorded receivable that will not be billed and accrue a reduction of expenditure. 0410 TAXES RECEIVABLE - CURRENT 0420 TAXES RECEIVABLE - NONCURRENT 0503 ACCOUNTS RECEIVABLE - OTHER - UNBILLED 0542 ACCOUNTS RECEIVABLE - FEDERAL - UNBILLED 0572 NOTES RECEIVABLE - CURRENT 0575 INTEREST RECEIVABLE - OTHER - UNBILLED 0930 NOTES RECEIVABLE - NONCURRENT 0931 LOANS RECEIVABLE 0932 CONTRACTS RECEIVABLE 0933 MORTGAGE RECEIVABLE 3505 EXPENDITURE CONTROL - FINANCIAL STATEMENT ACCRUAL To reclass investments that qualify as cash equivalents (such as money market investments) to cash equivalents. 0085 CASH EQUIVALENT 0250 INVESTMENTS - OTHER To establish or adjust an estimated accounts payable/revenue amount. See GAAP Offset Transactions in Appendix I. To establish an estimated revenue refund amount. 3105 REVENUE CONTROL - FINANCIAL STATEMENT ACCRUAL 1215 ACCOUNTS PAYABLE To reclassify revenue to deposit liability or to gross up securities lending revenue. See GAAP Offset Transactions in Appendix I. To reclassify expenditure to deposit liability or to record securities lending expense. See GAAP Offset Transactions in Appendix I. To reclass financial statement accrued revenue to deferred revenue. 3105 REVENUE CONTROL - FINANCIAL STATEMENT ACCRUAL 1603 DEFERRED REVENUE - NON DOCUMENT SUPPORTED To establish or decrease an estimated revenue, due to other funds or agencies. 3105 REVENUE CONTROL - FINANCIAL STATEMENT ACCRUAL 1532 DUE TO OTHER FUNDS/AGENCIES To establish or increase an estimated revenue, due from other funds or agencies. 0586 DUE FROM OTHER FUNDS/AGENCIES 3105 REVENUE CONTROL - FINANCIAL STATEMENT ACCRUAL To reclass cash revenue between two accounts within the same fund at year end. 2952 GENERAL LEDGER REV/EXP CORRECTION CLEARING ACCOUNT 3100 REVENUE CONTROL-CASH To reclass cash revenue between two accounts within the same fund at year end. 3100 REVENUE CONTROL – CASH 2952 GENERAL LEDGER REV/EXP CORRECTION CLEARING ACCOUNT To record a due from other funds within an agency. See GAAP Offset Transactions in Appendix I. 903 977 902 X X 904 982 X X 905 966 X X 906 986 X X 907 979 X X 908 X X 909 X X 910 973 X X 911 969 X X 912 980 X X 913 974 914 X X 914 975 913 X X 915 916 X X Chapter D – Month 13 - Year End Closing D - 40 T DR Code GL 916 CR GL Description Auto Reverse T-Code Balancing T-Code 915 Modified Accrual Full Accrual X 917 To record a due to other funds and a trust funds payable within an agency. For use only in an agency fund type. 1575 TRUST FUNDS PAYABLE 1532 DUE TO OTHER FUNDS/AGENCIES To record due from other funds within agency. 0586 DUE FROM OTHER FUNDS/AGENCIES 0072 CASH ON HAND 0240 INVESTMENTS-DESIGNATED To establish or increase an estimated operating transfer out amount with a due from other funds or agencies. Can also be used to adjust due to or due from other funds or agencies. 3550 OPERATING TRANSFERS OUT CONTROL 0586 DUE FROM OTHER FUNDS/AGENCIES 1532 DUE TO OTHER FUNDS/AGENCIES To establish or increase an estimated operating transfer in amount with a due from other funds or agencies. 0586 DUE FROM OTHER FUNDS/AGENCIES 3150 OPERATING TRANSFERS IN CONTROL To establish or increase estimated financial statement expenditure transfer amount. Generally used for distribution to another agency. 3505 EXPENDITURE CONTROL - FINANCIAL STATEMENT ACCRUAL 1532 DUE TO OTHER FUNDS/AGENCIES To establish or decrease estimated financial statement expenditure transfer amount. Generally used for distribution from another agency. 0586 DUE FROM OTHER FUNDS/AGENCIES 3505 EXPENDITURE CONTROL - FINANCIAL STATEMENT ACCRUAL To establish a reduction to a transfer in amount. 3150 OPERATING TRANSFERS IN CONTROL 1532 DUE TO OTHER FUNDS/AGENCIES To establish or increase estimated financial statement expenditure amount. Generally used to move expenditures between funds within agency. 3505 EXPENDITURE CONTROL - FINANCIAL STATEMENT ACCRUAL 1532 DUE TO OTHER FUNDS/AGENCIES To establish or decrease estimated financial statement expenditure amount. Generally used to move expenditures between funds within agency. 0586 DUE FROM OTHER FUNDS/AGENCIES 3505 EXPENDITURE CONTROL - FINANCIAL STATEMENT ACCRUAL To reclassify transfer in between agencies for financial statement purposes. 3150 OPERATING TRANSFERS IN CONTROL 0503 ACCOUNTS RECEIVABLE - OTHER UNBILLED To establish or increase security lending cash collateral and obligations. 0350 SECURITIES LENDING CASH COLLATERAL 1600 OBLIGATIONS UNDER SECURITY LENDING To record due from other funds within agency. 0586 DUE FROM OTHER FUNDS/AGENCIES 0060 UNDISTRIBUTED CASH RECEIPT 0072 CASH ON HAND 0075 CASH ON DEPOSIT – SUSPENSE ACCOUNT AT TREASURY To establish or decrease an estimated revenue amount. 3105 REVENUE CONTROL – FINANCIAL STATEMENT ACCRUAL 1512 DUE TO OTHER GOVERNMENTS To establish or adjust an estimated encumbrance amount. 2734 ENCUMBRANCE CONTROL – NON – DOCUMENT SUPPORTED 3011 FUND BALANCE RESERVED FOR ENCUMBRANCES X X 919 971 X X 920 970 X X 921 984 X X 922 985 X X 924 978 X X 925 987 X X 926 988 X X 927 991 X X 928 989 X X 929 990 X X 930 962 X X 931 963 X X Chapter D – Month 13 - Year End Closing D - 41 T DR Code GL 932 CR GL Description Auto Reverse T-Code 992 Balancing T-Code Modified Accrual X Full Accrual X 933 934 To record due to other funds within agency. 0060 UNDISTRIBUTED CASH RECEIPT 1532 DUE TO OTHER FUNDS/AGENCIES To reclass new permanent fund principal or claim loss liability. 3020 UNRESERVED, UNDESIGNATED FUND BALANCE 3009 RESERVED FOR CLAIM LOSS LIABILITY 3010 RESERVED FOR PERMANENT FUND PRINCIPAL To reclass (decrease) cash expenditures within same fund. 2952 GENERAL LEDGER REVENUE/EXPENDITURE CORRECTION CLEARING 3500 EXPENDITURE CONTROL - CASH To reclass (increase) cash expenditures within same fund. 3500 EXPENDITURE CONTROL - CASH 2952 GENERAL LEDGER REVENUE/EXPENDITURE CORRECTION CLEARING To establish an unrecorded receivable that will not be billed and accrue a reduction of expense. 0410 TAXES RECEIVABLE - CURRENT 0420 TAXES RECEIVABLE - NONCURRENT 0503 ACCOUNTS RECEIVABLE – OTHER UNBILLED 0542 ACCOUNTS RECEIVABLE – FEDERAL - UNBILLED 0572 NOTES RECEIVABLE - CURRENT 0575 INTEREST RECEIVABLE – OTHER - UNBILLED 0930 NOTES RECEIVABLE - NONCURRENT 0931 LOANS RECEIVABLE 0932 CONTRACTS RECEIVABLE 0933 MORTGAGE RECEIVABLE 3505 EXPENDITURE CONTROL – FINANCIAL STATEMENT ACCRUAL To establish or decrease estimated financial statement expenditure amount. 0586 DUE FROM OTHER FUNDS/AGENCIES 3505 EXPENDITURE CONTROL – FINANCIAL STATEMENT ACCRUAL To reclass expenditure to deposit liability. See GAAP Offset Transactions in Appendix I. To remove the change in capital assets and investment in capital assets – fiduciary funds only. 3074 CHANGE IN CAPITAL ASSETS 3018 INVESTED IN CAPITAL ASSETS X 994 935 X X 935 995 934 X X 936 961 X X 937 947 X X 938 X X 939 X Reclassifications Transactions 474 To record reclassification between two general ledger accounts within the same fund. 0072 CASH ON HAND 0075 CASH ON DEPOSIT - SUSPENSE ACCOUNT AT TREASURY 0077 CASH IN BANK 0080 CASH WITH FISCAL AGENTS – RESTRICTED CURRENT 0081 CASH WITH FISCAL AGENTS - UNRESTRICTED 0085 CASH EQUIVALENT 0240 INVESTMENTS - DESIGNATED 0245 INVESTMENT VALUATION ACCOUNT - DESIGNATED 0250 INVESTMENTS - OTHER 0255 INVESTMENT VALUATION ACCOUNT - OTHER 0261 PREMIUM ON INVESTMENTS 0281 DISCOUNT ON INVESTMENTS 0290 INVESTMENTS – RESTRICTED CURRENT 0330 SECURITIES HELD IN TRUST 0335 SAVINGS AND TCD IN TRUST 0350 SECURITIES LENDING CASH COLLATERAL 0410 TAXES RECEIVABLE - CURRENT 0411 ALLOWANCE FOR UNCOLLECTIBLE TAXES - CURRENT 0420 TAXES RECEIVABLE - NONCURRENT 0502 ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS - CURRENT 475 X X Chapter D – Month 13 - Year End Closing D - 42 T DR Code GL 0503 0504 0507 0510 0535 0542 0602 0603 0811 0812 0815 0816 0817 0818 0840 0841 0842 0843 0844 0845 0850 0852 0856 0861 0862 0863 0867 0868 0869 0870 0871 0872 0873 0875 0876 0880 0881 0882 0883 0884 0885 0926 0927 0928 0930 0931 0932 0933 0935 0940 0945 0990 CR GL Description Auto Reverse T-Code Balancing T-Code Modified Accrual Full Accrual ACCOUNTS RECEIVABLE - OTHER UNBILLED ACCOUNTS RECEIVABLE - SUSPENSE ACCOUNT PAYROLL ACCOUNTS RECEIVABLE TARGETED CASE MANAGEMENT EXPENDITURE RECOUPMENT ADVANCES NON - DOCUMENT SUPPORTED ACCOUNTS RECEIVABLE - FEDERAL - UNBILLED PREPAID EXPENSES DEFERRED CHARGES WORKS OF ART AND HISTORICAL TREASURES - NO DEPRECIATION WORKS OF ART AND HISTORICAL TREASURES - DEPRECIATION EQUIPMENT AND MACHINERY MOTOR VEHICLES DATA PROCESSING SOFTWARE DATA PROCESSING HARDWARE STATE HIGHWAYS OTHER ROADS TUNNELS AND BRIDGES AIRPORTS UTILITY SYSTEMS DOCKS, DIKES, AND DAMS LAND BUILDINGS AND BUILDING IMPROVEMENTS LAND IMPROVEMENTS CONSTRUCTION IN PROGRESS LEASEHOLD IMPROVEMENTS CAPITAL LEASED PROPERTY ACCUMULATED DEPRECIATION - LAND IMPROVEMENTS ACCUMULATED AMORTIZATION - DATA PROC SOFTWARE ACCUMULATED DEPRECIATION - EQUIPMENT AND MACHINERY ACCUMULATED DEPRECIATION - LEASEHOLD IMPROVEMENT ACCUMULATED AMORTIZATION - CAPITAL LEASED PROPERTY ACCUMULATED DEPRECIATION - MOTOR VEHICLES ACCUMULATED DEPRECIATION - DP HARDWARE ACCUMULATED DEPRECIATION - BUILDINGS AND BUILDING IMPROVEMENTS ACCUMULATED DEPR - WORKS OF ART AND HISTORICAL TREASURES ACCUMULATED DEPRECIATION - STATE HIGHWAYS ACCUMULATED DEPRECIATION - TUNNELS AND BRIDGES ACCUMULATED DEPRECIATION - AIRPORTS ACCUMULATED DEPRECIATION - UTILITY SYSTEMS ACCUMULATED DEPRECIATION - DOCKS, DIKES AND DAMS ACCUMULATED DEPRECIATION - OTHER ROADS AMOUNT TO BE PROVIDED - ADVANCE FROM OTHER FUND/AGY INVESTMENT IN STATE OWNED PROPERTY CASH AND CASH EQUIVALENTS-RESTRICTED NOTES RECEIVABLE - NONCURRENT LOANS RECEIVABLE CONTRACTS RECEIVABLE MORTGAGE RECEIVABLE OTHER RECEIVABLES - NONCURRENT INVESTMENTS - RESTRICTED CONSERVATORSHIP AND CUSTODIAL ASSETS RECEIVERSHIP ASSETS 2951 SYSTEM CLEARING GENERAL LEDGER LEVEL ONLY 474 X X 475 To record reclassification between two general ledger accounts within the same fund. 2951 SYSTEM CLEARING GENERAL LEDGER LEVEL ONLY 0060 UNDISTRIBUTED CASH RECEIPT 1215 ACCOUNTS PAYABLE 1225 ACCRUED INTEREST ON BONDS SOLD 1230 INTEREST PAYABLE - CURRENT 1235 ACCRUED INTEREST ON COPS SOLD 1276 BONDS PAYABLE - CURRENT 1279 COP PAYABLE - CURRENT Chapter D – Month 13 - Year End Closing D - 43 T DR Code GL CR GL 1280 1281 1290 1367 1512 1535 1551 1575 1576 1577 1578 1600 1603 1605 1617 1619 1621 1622 1625 1626 1635 1640 1645 1701 1704 1705 1709 1711 1712 1713 1714 1715 1716 1717 1718 1719 1720 1721 1722 1725 1726 1727 1730 1735 1740 1745 1750 Description LEASE PURCHASE CONTRACTS PAYABLE - CURRENT OBLIGATION UNDER CAPITAL LEASE - CURRENT ACCRUED TAXES PAYABLE DEFERRED COMPENSATION PAYABLE DUE TO OTHER GOVERNMENTS MATURED BONDS/COPS AND COUPONS PAYABLE DEPOSIT LIABILITY-WITHOUT DF SUPPORT TRUST FUNDS PAYABLE CONTROLLED DEPOSIT LIABILITY TRUST FUNDS PAYABLE - NONCURRENT RES SECURITIES IN TRUST OBLIGATIONS UNDER SECURITY LENDING DEFERRED REVENUE - NON DOC VACATION PAYABLE - CURRENT CLAIMS AND JUDGEMENTS PAYABLE-CURRENT ARBITRAGE REBATE PAYABLE-CURRENT MORTGAGE PAYABLE-CURRENT CONTRACTS PAYABLE-RETAINAGE-CURRENT LEGAL RESERVES-CURRENT REPORTED CLAIMS-RISK MANAGEMENT-CURRENT LOANS PAYABLE-CURRENT NOTES PAYABLE-CURRENT LOTTERY PRIZE AWARDS PAYABLE-CURRENT UNDERWRITER’S DISCOUNT - COPS COPS PAYABLE - NONCURRENT DEFERRED LOSS/(GAIN) ON DEBT REFUNDING ACCRETED INTEREST PAYABLE UNDERWRITER’S DISCOUNT - BONDS DISCOUNT ON BONDS SOLD PREMIUM ON BONDS SOLD BONDS PAYABLE - NONCURRENT LEASE PURCHASES CONTRACTS PAYABLE - NONCURRENT OBLIGATION UNDER CAPITAL LEASE - NONCURRENT CLAIMS AND JUDGEMENTS PAYABLE VACATION PAYABLE - NONCURRENT ARBITRAGE REBATE PAYABLE ACCOUNTS PAYABLE - NONCURRENT MORTGAGE PAYABLE CONTRACTS PAYABLE - RETAINAGE LEGAL RESERVES REPORTED CLAIMS - RISK MANAGEMENT LEGAL IBNR ORIGINAL/ ACQUISITION LOAN FEES LOANS PAYABLE IBNR RESERVES – RISK MANAGEMENT LOTTERY PRIZE AWARDS PAYABLE NOTES PAYABLE-NONCURRENT Auto Reverse T-Code Balancing T-Code Modified Accrual Full Accrual D.10.c. Recording Encumbrances When encumbrance accounting is used, an encumbrance is recorded at the time a purchase order is issued or a contract is signed for the purchase of goods or services. At fiscal year end, encumbrances represent the estimated amount of expenditures that will result if unperformed spending obligations are completed. Agencies need the following reports to analyze encumbrances: ADPICS Purchase Order Aging Report - #250 R*STARS DAFR7810, Outstanding Encumbrance Aging Report R*STARS DAFR7820, Encumbrance Status Report Chapter D – Month 13 - Year End Closing D - 44 The ADPICS report is printed monthly by SFMS and then sent to agencies. The R*STARS reports should be ordered on the last working day of the accounting month. At the end of the year, use the above reports to determine which encumbrances are established in ADPICS and which are established in R*STARS. Next, determine whether any encumbrances need to be: (1) canceled because they are not valid or (2) canceled and accrued as year end payables because the goods or services were received by June 30. Encumbrances which are still valid should remain on the books. However, if at the end of a biennium goods or services for an encumbered spending commitment have not been received by June 30, the encumbrance (or balance of the encumbrance for partially fulfilled contracts) should be canceled and re-established in the new biennium. For financial reporting purposes in governmental funds, a reservation of fund balance for outstanding encumbrances will be established based on the amount of encumbrances recorded in R*STARS at the close of Month 13. For budgetary reporting, these encumbrances will be reported as expenditures. Since encumbrance data is obtained directly from R*STARS, encumbrances in R*STARS should include all amounts committed by June 30, in which the goods or services have not been received as of June 30 but will be paid from current biennium funds. ADPICS Encumbrances Check with your agency’s ADPICS coordinator to cancel invalid items. Those encumbrances that are true payables (goods or services received by June 30) will need to be temporarily canceled with T Code 931R and should be accrued as accounts payable at year end. See below for more information. R*STARS Encumbrances Following are the T-codes to record encumbrances for items encumbered directly in R*STARS. (1) To establish an encumbrance: TC 203 2735 Encumbrance Control 3011 Fund Balance Reserved for Encumbrances (2) To cancel an encumbrance: TC 206 3011 Fund Balance Reserved for Encumbrance 2735 Encumbrance Control xxx xxx xxx xxx If you have an invoice and can voucher the payment in Month 13, use a TC 225, so that the encumbrance will be liquidated. (3) To accrue as accounts payable during Month 13: TC 225 3501 Expenditure Control - Accrued 1211 Vouchers Payable 3011 Fund Balance Reserved for Encumbrance 2735 Encumbrance Control xxx xxx xxx xxx If you have received the goods or services by June 30 but do not have an invoice and are not ready to voucher the payment in Month 13, use a TC 437 to accrue the accounts payable and TC 931R to cancel the encumbrance for year end reporting purposes. (4) To accrue as accounts payable for financial statement purposes and temporarily cancel the encumbrance: TC 437 3505 Expenditure Control - Financial Statement Accrual xxx Chapter D – Month 13 - Year End Closing D - 45 1215 Accounts Payable TC 931R 3011 Fund Balance - Reserved for Encumbrance 2734 Encumbrance Control/Non-Doc Supported xxx xxx xxx Since both T-Code 437 and 931R auto-reverse and do not affect the appropriation table in R*STARS, the document supported encumbrance will remain on the books in the next fiscal year for budget purposes. Encumbrances will be liquidated in R*STARS as paid in the current fiscal year as prior AY expenditures. If not paid by the end of December, these encumbrances will be automatically canceled. If appropriate, agencies should re-encumber these encumbrances in the new biennium after December 31. If you have not received the goods or services by June 30 at the end of a biennium, cancel the encumbrance in month 12 of the current biennium and re-establish it in month 1 of the new biennium. (5a) To cancel the encumbrance in current AY: TC 206 3011 Fund Balance Reserved for Encumbrance 2735 Encumbrance Control (5b) To re-establish the encumbrance in the new AY: TC 212 2735 Encumbrance Control 2951 System Clearing General Ledger Level Only 2951 System Clearing General Ledger Level Only 3011 Fund Balance Reserved for Encumbrance D.10.d. Recording Securities Lending Transactions In accordance with State investment policies, the State Treasury participates in securities lending in order to earn investment income on idle securities. These transactions involve lending securities to borrowers for collateral that will be returned for identical securities in the future. The collateral received may be cash or other securities. When securities are the collateral, the State receives lender fees from the borrowers. When cash collateral is provided by the borrower, the State (as the lender) pays borrower rebates as compensation for the use of the cash. Cash collateral is invested to generate interest income. GASB Statement No. 28 requires both expenses and revenue (gross revenue) be recorded and requires investments to remain on the books even though they are lent. It also requires reporting cash collateral as assets (investments, if the cash has been invested) and reporting a liability for the cash collateral due to be returned to the borrower. Securities received as collateral also will be reported as assets if the lender has the ability to pledge or sell them without borrower default. In this case, a corresponding liability for the obligation to return the securities will be reported. If the lender does not have the ability to pledge or sell unless the borrower defaults, no asset or related liability is recorded. During the year, costs of securities lending transactions, such as borrower rebates (interest costs) and agent fees may be netted with income from the investment of cash collateral (interest revenue) or income from lender fees through an automated process at the State Treasury. However, at fiscal year end, the Treasury provides SARS with the amount of revenue earned and costs incurred during the year so that GAAP adjustments can be made to record the expenditures (or expenses) and increase net interest revenue to gross interest revenue for reporting in the CAFR. xxx xxx xxx xxx xxx xxx Chapter D – Month 13 - Year End Closing D - 46 Adjustments will be needed to record securities lending transactions as of June 30. Securities lending transactions related to designated investments are handled differently than those related to the Oregon Short-Term Fund. Designated Investments: At year end, the State Treasury provides reports to SARS that indicate which agencies with designated investments generated securities lending income during the fiscal year. Treasury notifies these agencies of the revenue and costs pertaining to its securities lending for designated investments. Agencies record a transaction in R*STARS for the expenditures (or expenses) and increase interest revenue by the same amount in the applicable GAAP fund. These entries should be completed before the close of month 13. Oregon Short-Term Fund. At fiscal year end, the State Treasury provides reports to SARS that indicate which agencies have moneys on deposit with the Treasury that is also invested in the Oregon Short-Term Fund (OSTF). Based on earnings information provided by Treasury, SARS will allocate the revenue and costs pertaining to securities lending transactions within funds in the OSTF. SARS notifies each agency that prepares audited financial statements of its pro rata share. For agencies that do not prepare audited financial statements, SARS makes year end adjustments in the appropriate GAAP fund types at the statewide level to record expenditures (or expenses) and increase net interest revenue to gross interest revenue. The transaction to record expenditures (or expenses) and increase the interest revenue by the same amount is as follows: Use T-code 908R (comptroller object 0800) to credit interest on investments Use T-code 909R (comptroller object 4740) to debit investment expense (or another comptroller object chosen at agency discretion) Designated Investments: At fiscal year end, the State Treasury provides reports to SARS that indicate the agencies that have designated investments on loan. Treasury will notify these agencies of the cash received as collateral on securities lending transactions related to designated investments and investments made with that cash. Oregon Short-Term Fund. At fiscal year end, the State Treasury provides reports to SARS that indicate which agencies have moneys in the OSTF. SARS allocates to applicable agencies the cash received as collateral on securities lending transactions related to OSTF and investments made with that cash. SARS notifies each agency that prepares audited financial statements of the assets pertaining to its pro rata share. For agencies that do not prepare audited statements, SARS makes the year end adjustments at a statewide level to record assets for cash collateral received (and invested) and liabilities for cash collateral due to be returned to the borrower. T-code 928 is used to record a financial statement adjustment for the assets, as well as corresponding liabilities to return the cash to the borrower. Chapter D – Month 13 - Year End Closing D - 47 CHAPTER E POST CLOSING ADJUSTMENTS E.1. Overview of Post Closing Adjustments In order to ensure complete and accurate reporting in the State’s Comprehensive Annual Financial Report (CAFR), all year end closing accounting adjustments must be recorded by agencies by the close of Month 13. Post closing adjustments arise when a material error or omission is discovered after the close of Month 13 but before the CAFR is published. Errors or omissions in agency accounting records may be discovered by the agency, by SARS, or by the Audits Division. Only adjustments that are considered material to the fair presentation of the State’s financial statements will be made. Materiality is determined on a case-by-case basis by SARS and/or the Audits Division. If a proposed adjustment is considered to not be material, the agency should make the entry in the new fiscal year as a current year adjustment; in this case, a post closing adjustment would not be applicable. When a proposed adjustment is considered material, SARS will ensure the adjustment is reflected in the State’s financial statements for the fiscal year being reported. Since the fiscal year has already been closed in R*STARS, an entry is needed in the new fiscal year to restate the beginning fund equity (net assets or fund balance, as applicable) as if the entry was posted to R*STARS before the close of Month 13. Because the entry was already reported in the CAFR, it should not be considered a prior period adjustment in R*STARS; rather, it should be recorded as a post-closing adjustment. If an adjustment was made to the State’s financial statements by SARS, the agency will be notified after CAFR publication of the need for a post closing entry. Agencies should not make post closing adjustments without the express instruction of a SARS analyst. E.2. Post Closing Adjustment Procedure 1. If the agency proposes the post closing adjustment, the agency forwards documentation and the proposed entry to SARS. 2. If SARS proposes the post closing adjustment, SARS discusses the adjustment with the agency to obtain concurrence. 3. If the Audits Division proposes an audit adjustment: a. The Audits Division provides the agency with a copy of the proposed adjustment and any documentation. b. The agency signs off on the adjustment if they agree. If not, the agency will discuss the entry with SARS and the Audits Division to determine the proper resolution. c. Audits Division provides SARS with a copy of the agency-signed audit adjustment. A. The agency, SARS, or the Audits Division proposes a post closing adjustment. B. SARS reviews the adjustment (or adjustments) from all sources to determine whether it should be included in the State’s financial statements. C. SARS makes adjustments that are considered material to the financial statements. D. SARS notifies the agency that they need to record a post closing adjustment in their accounting records. E. The agency records the post closing adjustment in their records in the new fiscal year using appropriate post closing t-codes. E.3. Post Closing Adjustment Examples Post closing adjustments are recorded in the accounting records similarly to prior period adjustments; however, General Ledger account GL 3062 Prior Year Post Closing Adjustment is Chapter E – Post Closing Adjustments E-1 used. The t-codes used are 113, 114, 119, 124 and 125. T-codes 113 (affects revenue), 114 (affects expenditure), 119 (affects expenditure distributions with GASB 38 code), 124 (affects transfer in with GASB 38 code) and 125 (affects transfer out with GASB 38 code) are used for all fund types. All post closing adjustments use one of these five t-codes, but may require other adjustments to the agency’s accounting records as well. Example A The agency discovers that the expense amounts for their building construction were not capitalized as Construction in Progress at the close of month 13. The agency contacts SARS with the information, and SARS prepares the following entry: DR Construction in Progress DR Change in Capital Assets (Net Assets) CR Invested in Capital Assets CR Expenses (Capital Outlay) 25,000,000 25,000,000 25,000,000 25,000,000 To record construction in progress at the end of fiscal year 20X1. This will require both a post closing adjustment and an entry to record the construction in progress in the agency’s accounting records in the current year. The adjustment to record the Construction in Progress in fiscal year 20X2: TC 545 DR 0861 Construction in Progress 25,000,000 DR 3074 Change in Capital Assets 25,000,000 CR 3600 GAAP Expenditure Offsets (Capital Outlay) CR 3018 Invested in Capital Assets To record construction in progress not recorded in fiscal year 20X1. Note that this adjustment will affect expenses in the current fiscal year and will offset expenses recorded in the prior (closed) fiscal year. In order to eliminate the effect, this adjustment should be paired with a post closing adjustment: TC 114R DR 3600 GAAP Expenditure Offsets (Capital Outlay) 25,000,000 CR 3062 Prior Year Post Closing Adjustment 25,000,000 25,000,000 25,000,000 To record post closing adjustment for fiscal year 20X1 construction in progress. The post closing adjustment eliminates the effect on the expenses for the current period because the entries to GAAP Offset Expenditures are equal and opposite. Example B The Audits Division determines that an agency did not record a liability for accounts payable in a governmental fund for certain contracts for services by the close of month 13. Audits Division presents an audit adjustment to the agency, the agency signs it, and the signed adjustment is provided to SARS. SARS makes the adjustment to the State’s financial statements. The adjustment made is as follows: DR Expenditures (Services and Supplies) CR Accounts Payable 28,567,254 28,567,254 To record accounts payable for service contracts for fiscal year 20X1. Chapter E – Post Closing Adjustments E-2 Note that had the agency made the adjustment for accounts payable before the close of month 13, an entry would have been made automatically in the accounting records reversing the payable entry in the next fiscal year. Because the entry was not made, the reversal was not generated in R*STARS. Thus, a post closing adjustment is needed to substitute for the effect of the autoreversing entry. Only one entry is needed for this type of post closing adjustment in the current year. Either t-code 113 or 114 would be used, depending on whether the effect is to revenues or expenditures. In this case, the post closing entry is as follows: TC 114 DR 3062 Prior Year Post Closing Adjustment CR 3600 GAAP Offset Expenditures (Services and Supplies) 28,567,254 28,567,254 To record post closing adjustment for contract services accounts payable not recorded for fiscal year 20X1. Chapter E – Post Closing Adjustments E-3 CHAPTER F CAFR DISCLOSURE FORMS F.1. Why are CAFR Disclosures Important? In order to prepare year end financial statements in accordance with generally accepted accounting principles (GAAP), certain disclosures must be made in the notes to the financial statements. Each year, these requirements may change due to the implementation of new Governmental Accounting Standards Board (GASB) pronouncements. In addition, some disclosure information is needed to complete Cash Flow Statements for Proprietary Funds. Statewide Accounting and Reporting Services (SARS) is responsible for reporting these disclosures at a statewide level in the CAFR, which requires compiling numerous related disclosures into a consolidated note to the financial statements. Until all disclosures are received by SARS, we cannot compile accurate, complete notes. Thus, it is critical that agencies complete all disclosures that are applicable to them for the current fiscal year and submit them on the due date or earlier if possible. It is also important that disclosure forms reconcile to ending R*STARS balances because some disclosures (i.e., notes) must tie to specific account balances on the financial statements. There are two standard disclosure packets: General Disclosures and Debt Disclosures. All agencies are required to complete the General Disclosure packet, which covers topics such as cash and investments, capital assets, prior period adjustments, commitments, etc. Agencies that issue debt (for example, bonds or certificates of participation) are required to complete the Debt Disclosure packet, which includes information on outstanding debt, debt repayment schedules, debt defeasance, etc. (See Chapter G for information on SEFA Disclosure forms which are used to compile the notes to the Schedule of Expenditures of Federal Awards.) F.2. CAFR Disclosures - Sequence of Events The events below outline the key activities for submitting General Disclosures and Debt Disclosures to SARS for inclusion in the Comprehensive Annual Financial Report. • Distribution of Disclosure Packets: Annually, SARS distributes blank General Disclosure packets and Debt Disclosure packets to agencies for completion by agencies. Instructions and sample Disclosure packets are included in Section F.3. Soft Close: One week prior to the close of Month 13, this soft close allows agencies who have made all necessary adjustments to complete disclosure forms using final or near final R*STARS balances. Reconcile Disclosures: Prior to submitting disclosure packets to SARS, agencies should make sure disclosed balances agree to ending R*STARS balances as described in the disclosure packets. Submit Disclosures: General Disclosures and Debt Disclosures should be submitted to SARS by the due date in order to facilitate statewide compilation of the notes to the financial statements. • • • Chapter F – CAFR Disclosure Forms F-1 F.3. General Disclosures - Sample Completed Forms CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # Instructions: SARS reviews your agency’s information on the attached disclosure forms and incorporates the data into the notes to the statewide financial statements. For the year ended June 30, 2008, please complete the attached disclosure forms that apply to your agency. It is important that disclosure forms reconcile to R*STARS reported balances as of the close of Month 13. For any disclosures that do not apply to your agency, check the box N/A for “not applicable” on the two-page Disclosure Checklist below. Please return your completed general disclosures to SARS by August 29, 2008. If you have any questions, you can reach your SARS analyst at 503-373-7277. DISCLOSURE CHECKLIST I. Complete the following disclosures; N/A is not an option. A. B. C. D. E. F. G. Capital Asset Impairments Insurance Recoveries Violations of Legal or Contractual Provisions Component Units Federal Revenue and Expenditures Pollution Remediation Obligations Intangible Assets N/A 1. Cash and Investments A. Cash in Bank, Account 0077 B. Cash with Fiscal Agents-Restricted Current, Account 0080 C. Cash with Fiscal Agents-Unrestricted, Account 0081 D. Cash Equivalents, Account 0085 E. Restricted Cash and Cash Equivalents, Account 0928 F. Foreign Currency Risk - Cash G. Investments – Other: Custodial Credit Risk H. Investments – Other: Segmented Time Distribution and Credit Ratings I. Securities Held in Trust, Account 0330: Custodial Credit Risk J. Securities Held in Trust: Segmented Time Distribution and Credit Ratings K. Savings and TCD Held in Trust, Account 0335 L. Additional Investment Disclosures: Fair Value and Income M. Additional Investment Disclosures: Concentration of Credit Risk and Policies N. Foreign Currency Risk - Investments 2. Restricted Assets 3. Restricted Net Assets 4. Donor-Restricted Endowments 5. Long-Term Claims and Judgments Payable 6. Long-Term Contracts, Mortgages and Notes Payable 7. Outstanding Debt Related to Capital Assets 8. Works of Art and Historical Treasures – Not Capitalized 9. Capital Lease Obligations A. Schedule of Future Lease Payments B. Changes in Liability in Government-Wide Reporting Fund C. Book Value of Capital Leased Assets Chapter F – CAFR Disclosure Forms F-2 II. Complete the following disclosures or check the box N/A for “not applicable”. N/A 10. Operating Leases A. Operating Lease Commitments: Schedule of Future Lease Payments B. Operating Lease Receivables: Schedule of Future Lease Rentals C. Operating Lease Receivables: Leased Asset Information 11. Construction Contract Commitments 12. Other Commitments 13. Changes in Account 3003, Reserved for Other Long-Term Receivables A. For GAAP Fund Reporting – Changes Supported B. For GAAP Fund Reporting – Changes Not Supported C. For Government-Wide Reporting – Changes Not Supported 14. General Fund Expenditures on Behalf of Proprietary Funds 15. Discounts and Allowances in Proprietary Funds 16. Investments for Cash Flow Statement Purposes – Proprietary Funds 17. Cash Flow Statement Disclosure Analysis – Proprietary Funds 18. E-Board Requests Pending at Close of Month 13 19. Changes in Fund Equity 20. Prior Period Adjustments 21. Cumulative Effect of a Change in Accounting Principle 22. Related Party Transactions 23. Joint Ventures 24. Significant Interfund Transfers 25. Infrequent and/or Unusual Items 26. Non-Exchange Transactions that are not Measurable Chapter F – CAFR Disclosure Forms F-3 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 A. CAPITAL ASSET IMPAIRMENTS A capital asset is considered impaired when its service utility (usable capacity) has declined significantly and unexpectedly. Determining whether a capital asset has been impaired involves an evaluation of prominent events or changes in circumstances that may have resulted in the permanent or temporary impairment of a capital asset. If a capital asset was permanently impaired during the fiscal year, an impairment loss should have been calculated and recorded (using comptroller object 7510, Gain/Loss on Capital Asset Impairment). 1. During the fiscal year, were there any significant and unexpected declines in the service utility related to capital assets owned or leased (capital lease) by your agency? Yes No If you answered No to question 1, skip to question 3. 2. Does the capital asset impairment meet the definition of a Special Item (significant transactions or other events within the control of management that are either unusual in nature or infrequent in occurrence) or does it meet the definition of an Extraordinary Item (significant transactions or other events that are both unusual in nature and infrequent in occurrence)? Yes No If you answered Yes to question 2, please complete disclosure form No. 25, Infrequent and/or Unusual Items. f you answered No to question 2, please complete the schedule below. List each impairment loss separately. GAAP Fund 8500 Compt Object 7510 7510 7510 7510 Amount 5,258,650.00 Description of circumstances or nature of the capital asset impairment loss Building damaged by flood 3. Does your agency own or lease assets that were idle and impaired (either permanently or temporarily impaired) at fiscal year end (June 30)? Yes No If you answered Yes to question 3, please complete the schedule below. Historical Value of Impaired Idle Asset 32,840,950.00 Accumulated Depreciation of the Asset 10,630,552.00 Description of Impaired Idle Asset Training center Is Impairment Temporary or Permanent? Temporary Nature or Circumstances of Impairment Lower number of recruits Chapter F – CAFR Disclosure Forms F-4 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 B. INSURANCE RECOVERIES An insurance recovery may be associated with a capital asset impairment or it may be related to a recovery in the event of theft of a monetary asset. This disclosure form applies to either situation. If an insurance recovery was received or realizable during the fiscal year, and this was the same fiscal year as the related capital asset impairment, the insurance recovery should have been recorded or recognized using comptroller object 7510, Gain/Loss on Capital Asset Impairment. All other insurance recoveries (including recoveries related to capital asset impairments received or recognized in a fiscal year subsequent to the fiscal year of the impairment loss) should have been recorded or recognized using comptroller object 7511, Insurance Recovery Subsequent to Loss. 1. During the fiscal year, did your agency receive any insurance recoveries or accrue the recognition of any insurance recoveries? Yes No If you answered No to question 1, this form is complete. 2. Does the insurance recovery relate to a capital asset impairment? Yes No If you answered No to question 2, skip to question 4. 3. If the answer to question 2 is Yes, was the impairment gain/loss recognized this fiscal year (the fiscal year ended June 30 to which this disclosure form applies)? Yes No 4. If the answer to question 2 is No, does the insurance recovery transaction meet the definition of an Extraordinary Item (significant transactions or other events that are both unusual in nature and infrequent in occurrence)? Yes No If you answered Yes to question 4, please complete disclosure form No. 25, Infrequent and/or Unusual Items. Chapter F – CAFR Disclosure Forms F-5 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 C. VIOLATIONS OF LEGAL OR CONTRACTUAL PROVISIONS Did you have any violations of legal or contractual provisions during the fiscal year? Yes No If yes, please attach a description of violation(s) incurred. Examples of violations include: (a) Expending revenues for purposes other than outlined in constitutional provisions; (b) Exceeding a legislatively approved appropriation or limitation, which is a legal violation; (c) Expending federal funds for purposes other than allowable under a grant agreement, which is a contractual violation; and (d) Violating legal restrictions governing deposits and investments. Chapter F – CAFR Disclosure Forms F-6 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 D. COMPONENT UNITS Certain organizations warrant inclusion as part of the financial reporting entity because of the nature and significance of their relationship with the primary government (State of Oregon), including their ongoing financial support of the State or its other component units. A legally separate, tax-exempt organization should be reported as a component unit within the reporting entity if all of the following criteria are met: 1. The economic resources received or held by the separate organization are entirely or almost entirely for the direct benefit of the State, its component units, or its constituents. 2. The State, or one of its component units, is entitled to, or has the ability to otherwise access, a majority of the economic resources received or held by the separate organization. 3. The economic resources received or held by an individual organization that the State, or one of its component units, is entitled to, or has the ability to otherwise access, are significant to the State. During the fiscal year, was your agency associated with any fund-raising or other organizations that would qualify for inclusion in the State’s Comprehensive Annual Financial Report? Yes No If you checked yes based on the criteria above, list any qualifying organizations established during the past fiscal year as well as all component units reported in previous years. Please provide the name of each organization and a brief description of its relationship with your agency. If you checked yes, please provide financial information (balance sheet and operating statement) for each organization’s most recently completed fiscal year. Your agency is responsible to obtain financial information from each organization. If financial information for a qualifying organization is not yet available, please indicate date on which the information will be available. Chapter F – CAFR Disclosure Forms F-7 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 E. FEDERAL REVENUE AND EXPENDITURES Please complete this disclosure if your agency received federal funds either directly from a federal government agency, as a transfer from another state agency, or as a subrecipient of another organization. Note: For federal reporting purposes, Oregon Health and Science University (OHSU) is not part of the reporting entity. OHSU is a subrecipient of any federal funds your agency provides to it. 1. Federal Revenue Does your agency receive federal grant or contract money? Yes No Do you receive any federal money as a subrecipient of another organization? Yes No 2. Transfers In Does your agency receive transfers of federal grant money from any other state agencies? Yes No 3. Transfers Out Does your agency send federal grant monies to any other state agencies? Yes No 4. Expenditures Does your agency make any expenditures of federal money either directly as a program expense or as a pass-through grant to a subrecipient? Yes No 5. Distributions to Subrecipients Did your agency distribute federal money to a local government or non-profit organization as a subrecipient of your federal grant? Yes No If you answered Yes to any of these questions, you need to submit appropriate information for the Schedule of Expenditures of Federal Awards (SEFA). Submit information to SARS electronically through SEFA Repository reports or by completing Excel spreadsheets (SARS must approve an exception for reporting with Excel spreadsheets). In addition, you need to complete the SEFA disclosure forms and submit them with the Transmittal of SEFA Disclosures and Agency Certification form. Information on SEFA reporting is available on the internet at: http://www.oregon.gov/DAS/SCD/SARS/docs/YEC_Manual.pdf in the Agency Guide to Year End Closing, Chapter G. Chapter F – CAFR Disclosure Forms F-8 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 F. POLUTION REMEDIATION OBLIGATION A pollution remediation obligation is an obligation to address the current or potential detrimental effects of existing pollution by participating in pollution remediation activities such as site assessments and cleanups. For example, obligations to clean up spills of hazardous wastes or hazardous substances and obligations to remove contamination such as asbestos are pollution remediation obligations. Pollution remediation obligations do not include pollution prevention or control activities with respect to current operations or those required upon retirement of an asset. It also does not include fines/penalties or grants to lower-level governments for their pollution remediation activities. Calculation of an estimated pollution remediation obligation is required if any one of five obligating events occurs. Obligating events include the following: 1. If pollution remediation action is compelled due to an immediate public safety concern (e.g. a train derailment). 2. If an agency violates pollution prevention-related permit or license requirements. 3. If an agency is named, or evidence indicates it will be named, by a regulator (e.g. the EPA), as a responsible party, or potential responsible party, for remediation. 4. If an agency is named in a lawsuit to compel pollution remediation. 5. If an agency voluntarily begins, or legally obligates itself to begin, pollution remediation efforts. Does your agency have any pollution remediation obligations as of 6/30/08 (has an obligating event occurred)? Yes No If you answered Yes, please describe the obligating event. While remodeling our satellite office building, asbestos was discovered in several places. Removal of the floor and ceiling tiles was begun in late June and is expected to be completed in August. Beginning in fiscal year 2009, pollution remediation liabilities will need to be accounted for and disclosed in the State’s Comprehensive Annual Financial Report. Existence of an obligating event as of 6/30/08 will require follow-up so the proper disclosure information can be collected. Chapter F – CAFR Disclosure Forms F-9 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 G. INTANGIBLE ASSETS An intangible asset is property that is used in agency operations, has an estimated useful life beyond a single fiscal year, has an initial cost of more than $5,000, lacks physical substance, and is nonfinancial in nature. Examples of intangible assets include easements, water rights, timber rights, patents, trademarks, and computer software. 1. Does your agency have any intangible assets? Yes No If you answered No to question 1, skip the remainder of the questions on this page. 2. Is the intangible asset recorded in your agencies books? Yes No If you answered No to question 2, please describe the intangible assets below: If you answered Yes to question 2, complete the table below for each type of intangible asset at your agency. Description Right-of-Way Computer Software GAAP Fund 8500 4001 GL Account 0850 0815 Useful Life Indefinite 3-5 years Being Amortized No Yes Chapter F – CAFR Disclosure Forms F - 10 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 1. CASH AND INVESTMENTS A. Cash in Bank, General Ledger Account 0077 (outside the State Treasury) Please complete the schedules below to indicate your agency's bank and book balances at fiscal year end for all GAAP funds. If this is a COP account, please indicate if it is held with DAS. 0077 Bank Balance 974,331.09 1,760,733.50 Name of Bank Norwest Bank US Bank Trust Description / Purpose COP fund with DAS COP Trustee Total Bank Balance 2,735,064.59 Of the total bank balances above, please indicate the amounts in each category of risk as defined below: Custodial Credit Risk Insured (typically first $100,000 per account is insured by FDIC): Collateralized: Held by State’s agent in the State’s name: Held by pledging bank’s trust department in the State’s name: Held by pledging bank’s trust department but not in the State’s name: Uninsured and Uncollateralized: Total Bank Balance (should agree to bank balance above) 2,735,064.59 2,635,064.59 Bank Balance 100,000.00 R*STARS GL Account 0077 Book Balance: 2,735,064.59 Note: The total bank balances should equal the R*STARS book balances unless there are reconciling items due to timing differences. Chapter F – CAFR Disclosure Forms F - 11 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 1. CASH AND INVESTMENTS B. Cash with Fiscal Agents-Restricted Current, General Ledger Account 0080 (outside the State Treasury) Please complete the schedules below to indicate your agency's bank and book balances at fiscal year end for all GAAP funds. This account is used to report cash held by a fiscal agent to pay matured bonds/COPs payable. Cash with fiscal agent is typically recorded at year end, based on information from the fiscal agent. The typical entry is to debit Cash with Fiscal Agent and credit Matured Bonds Payable for debt already written off the books (see R*STARS T-code 512). If this is a COP account, please indicate if it is held with DAS. 0080 Bank Balance 85,975.00 Name of Bank Bank of New York Description / Purpose Bond & Coupon Account/Matured Debt Total Bank Balance 85,975.00 Of the total bank balances above, please indicate the amounts in each category of risk as defined below: Custodial Credit Risk Insured (typically first $100,000 per account is insured by FDIC): Collateralized: Held by State’s agent in the State’s name: Held by pledging bank’s trust department in the State’s name: Held by pledging bank’s trust department but not in the State’s name: Uninsured and Uncollateralized: Total Bank Balance (should agree to bank balance above) 85,975.00 Bank Balance 85,975.00 R*STARS GL Account 0080 Book Balance: 85,975.00 Note: The total bank balances should equal the R*STARS book balances unless there are reconciling items due to timing differences. Chapter F – CAFR Disclosure Forms F - 12 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 1. CASH AND INVESTMENTS C. Cash with Fiscal Agents-Unrestricted, General Ledger Account 0081 (outside the State Treasury) Please complete the schedules below to indicate your agency's bank and book balances at fiscal year end for all GAAP funds. This account is used to report cash held by a fiscal agent that is not restricted for a specific purpose. Cash with fiscal agent is typically recorded at year end, based on information from the fiscal agent. Name of Bank Description / Purpose 0081 Bank Balance Total Bank Balance Of the total bank balances above, please indicate the amounts in each category of risk as defined below: Custodial Credit Risk Insured (typically first $100,000 per account is insured by FDIC): Collateralized: Held by State’s agent in the State’s name: Held by pledging bank’s trust department in the State’s name: Held by pledging bank’s trust department but not in the State’s name: Uninsured and Uncollateralized: Total Bank Balance (should agree to bank balance above) Bank Balance R*STARS GL Account 0081 Book Balance: Note: The total bank balances should equal the R*STARS book balances unless there are reconciling items due to timing differences. Chapter F – CAFR Disclosure Forms F - 13 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 1. CASH AND INVESTMENTS D. Cash Equivalents, General Ledger Account 0085 Please complete the schedules below to indicate your agency's bank and book balances at fiscal year end for all GAAP funds. Cash Equivalents are typically recorded at year-end, based on an analysis of Investments-Other, Account 0250. A portion of investments may qualify as cash equivalents (such as money market investments) and should be reclassified to cash equivalents. See OAM on Cash and Cash Equivalents for further information. The typical entry is to debit Cash Equivalent and credit Investments-Other (T-code 905). If this is a COP account, please indicate if it is held with DAS. Name of Bank US Bank Union Bank of California Wells Fargo Bank Description / Purpose Business Money Market Account Business Money Market Account Government Money Market Fund Total Bank Balance 0085 Bank Balance 1,848,934.23 3,635,153.95 34,361.90 5,518,450.08 Of the total bank balances above, please indicate the amounts in each category of risk as defined below: Custodial Credit Risk Insured (typically first $100,000 per account is insured by FDIC): Collateralized: Held by State’s agent in the State’s name: Held by pledging bank’s trust department in the State’s name: Held by pledging bank’s trust department but not in the State’s name: Uninsured and Uncollateralized: Total Bank Balance (should agree to bank balance above) R*STARS GL Account 0085 Book Balance: 5,518,450.08 5,518,450.08 4,254,570.20 Bank Balance Note: The total bank balances should equal the R*STARS book balances unless there are reconciling items due to timing differences. Chapter F – CAFR Disclosure Forms F - 14 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 1. CASH AND INVESTMENTS E. Restricted Cash and Cash Equivalents, General Ledger Account 0928 (outside the State Treasury) Please complete the schedules below to indicate your agency's bank and book balances at fiscal year end for all GAAP funds. Cash Equivalents are typically recorded at year-end, based on an analysis of Investments-Other, Account 0250. A portion of investments may qualify as cash equivalents-restricted (such as some COP accounts with DAS) and should be reclassified to cash equivalents-restricted. See OAM on Cash and Cash Equivalents for further information. If this is a COP account, please indicate if it is held with DAS. Name of Bank Wells Fargo US Bank US Bank Wells Fargo Description / Purpose OR Lott 2002A ShortLine/Rail Debt Serv 2002 WSLR Refunding Bonds General 2002 WSLR Refunding Bonds Debt Serv 1997 Series B COP’s Refund Cert. Acct. 0928 Bank Balance 14,364.92 285,229.09 65,162.40 83.20 Total Bank Balance 364,839.61 Of the total bank balances above, please indicate the amounts in each category of risk as defined below: Custodial Credit Risk Insured (typically first $100,000 per account is insured by FDIC): Collateralized: Held by State’s agent in the State’s name: Held by pledging bank’s trust department in the State’s name: Held by pledging bank’s trust department but not in the State’s name: Uninsured and Uncollateralized: Total Bank Balance (should agree to bank balance above) R*STARS GL Account 0928 Book Balance: 364,839.61 364,839.61 364,839.61 Bank Balance Note: The total bank balances should equal the R*STARS book balances unless there are reconciling items due to timing differences. Chapter F – CAFR Disclosure Forms F - 15 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 1. CASH AND INVESTMENTS F. Foreign Currency Risk - Cash This is for cash held outside of the State Treasury. General ledger accounts in which the cash may be recorded are 0077, 0080, 0081, and 0928. Please list by foreign currency the U.S. dollar balances of monies exposed to foreign currency risk. GL Acct 0077 Foreign Currency Argentine peso Australian dollar Bermudan dollar Bolivian boliviano Brazilian real Canadian dollar Chilean peso Chinese yuan Danish krone Euro Hong Kong dollar Japanese yen Mexican peso Netherlands Antillan guilder New Taiwan dollar New Zealand dollar Norwegian krone Russian ruble Singapore dollar South African rand South Korean won Swiss franc United Kingdom pound sterling Bank Balance (U.S. dollar) 54,057.54 0080 175,007.88 Chapter F – CAFR Disclosure Forms F - 16 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 1. CASH AND INVESTMENTS G. Custodial Credit Risk for Investments-Other, General Ledger Account 0250, 0255, 0290, and 0940 (Note: See disclosure form 1.L.a for additional disclosure requirements) Please complete the schedule below to list, by investment type, the book balance and fair value of your agency's investments, which are held outside of the State Treasury as of fiscal year end. The amounts reported on this disclosure are held outside the State Treasury. Please ensure each investment listed is classified into the proper risk category. Custodial Credit Risk * Total Carrying/ Reported Value 4,657,404.14 713,971,251.42 Investment Type U.S. Gov’t Securities U.S. Agency Securities U.S. Gov’t Strips U.S. Agency Strips Domestic Equity Securities International Equity Securities International Debt Securities Commercial Paper Corporate Bonds Municipal Bonds Bankers’ Acceptances Collateralized Mortgage Oblig. Repurchase Agreements -14,657,404.14 713,971,251.42 -2- -3- Total Fair Value 4,657,404.14 713,971,251.42 Unclassified as to Risk: Mutual Funds Alternative Equities Real Estate & Real Estate Mortg. Guaranteed Investment Contracts Annuity Contracts Total n/a n/a n/a n/a n/a 718,628,655.56 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 84,318,412.04 802,947,067.60** 802,947,067.60** 84,318,412.04 802,947,067.60 R*STARS GL Accounts 0250, 0255, 0290 and 0940 *Investment securities should be classified into the following three risk categories (if you are unsure of which category to classify your investment, contact your broker or dealer): Category 1: Insured or registered, or securities held by the agency or its agent in the agency's or State’s name. Category 2: Uninsured and unregistered, with securities held by the counterparty or the counterparty’s trust department or its agent in the agency’s name. Category 3: Uninsured and unregistered, with securities held by the counterparty or the counterparty’s trust department or agent, but not in the agency’s name. An agent (also known as investment custodial agent) is the custodian of the securities. State Street Bank is the current investment custodial agent for the State. A counterparty is the opposing side(s) of a transaction undertaken; in repurchase agreements, it is the party that pledges collateral or sells or buys securities in exchange with the government. **These amounts should agree. Chapter F – CAFR Disclosure Forms F - 17 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 1. CASH AND INVESTMENTS H. Segmented Time Distribution of Maturities and Credit Ratings for Investments-Other, General Ledger Account 0250, 0255, 0290, and 0940 Please complete the schedule below to list, by investment type, the credit rating, maturity distribution, and fair value of your agency’s investments held outside of the State Treasury as of fiscal year end. The amounts reported on this disclosure are held outside the State Treasury. • • • The groupings by credit rating should be aggregated. For example, if $400,000 of Corporate bonds are rated AA and $300,000 of Corporate bonds are rated A, they should be displayed on separate lines. Aggregated credit ratings should be the lower of Moody’s, Standard & Poors, or Fitch. U.S. Treasuries and obligations explicitly guaranteed by the U.S. government are considered to have no credit risk; therefore, they are the highest credit quality, AAA or Aaa. Investment Maturities (in years) Credit Rating AAA AAA Investment Type U.S. Gov’t Securities U.S. Agency Securities U.S. Gov’t Strips U.S. Agency Strips Domestic Equity Securities International Equity Securities International Debt Securities Commercial Paper Corporate Bonds Municipal Bonds Bankers’ Acceptances Collateralized Mortgage Obligations Repurchase Agreements Mutual Funds – Fixed Income Only Mutual Funds – Non Fixed Income Alternative Equities Real Estate & Real Estate Mortgages Guaranteed Inv. Contracts Annuity Contracts Less than 1 year 0.00 661,051,395.36 1-5 years 6-10 years More than 10 years 1,858,832.50 43,436,241.01 Total Book or Fair Value 4,657,404.14 713,971,251.42 0.00 2,798,571.64 3,032,750.00 6,450,865.05 n/a n/a n/a n/a n/a n/a n/a 43,588,860.60 38,585,000.00 0.00 2,144,551.44 47,439,624.95 84,318,412.04 802,947,067.60 802,947,067.60 Total 704,640,255.96 41,617,750.00 9,249,436.69 R*STARS GL Accounts 0250, 0255, 0290 and 0940 Notes about Investment credit ratings: The highest credit quality is Aaa (Moody’s), AAA (S&P) and AAA (Fitch’s); very high credit is Aa (Moody’s), AA (S&P) and AA (Fitch’s); high credit rating is A (Moody’s, S&P, and Fitch’s); good credit rating is Baa (Moody’s), BBB (S&P) and BBB (Fitch’s); and speculative grade rating is Ba (Moody’s), BB (S&P and Fitch’s). Chapter F – CAFR Disclosure Forms F - 18 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 1. CASH AND INVESTMENTS I. Custodial Credit Risk for Securities Held in Trust, General Ledger Account 0330 (Note: See disclosure form 1.L.a. for additional disclosure requirements) Securities may be held in trust as performance deposits or for other reasons. Please complete the schedule below to list the book balance and fair value of your agency's securities held in trust as of fiscal year end. Please ensure each investment type listed is classified into the proper risk category. Custodial Credit Risk * Total Carrying/ Reported Value Total Fair Value Investment Type U.S. Gov’t Securities U.S. Agency Securities U.S. Gov’t Strips U.S. Agency Strips Domestic Equity Securities International Equity Securities International Debt Securities Commercial Paper Corporate Bonds Municipal Bonds Bankers’ Acceptances Collateralized Mortgage Oblig. Repurchase Agreements Unclassified custodial credit risk: Mutual Funds Alternative Equities Real Estate & Real Estate Mortg. Guaranteed Investment Contracts Annuity Contracts Total -1- -2- -3- n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a ** ** R*STARS GL Account 0330 *Investment securities should be classified into the following three risk categories (if you are unsure of which category to classify your investment, contact your broker or dealer): Category 1: Insured or registered, or securities held by the agency or its agent in the agency's or State’s name. Category 2: Uninsured and unregistered, with securities held by the counterparty or the counterparty’s trust department or its agent in the agency’s name. Category 3: Uninsured and unregistered, with securities held by the counterparty or the counterparty’s trust department or agent, but not in the agency’s name. An agent (also known as investment custodial agent) is the custodian of the securities. State Street Bank is the current investment custodial agent for the State. A counterparty is the opposing side(s) of a transaction undertaken; in repurchase agreements, it is the party that pledges collateral or sells or buys securities in exchange with the government. **These amounts should agree. Chapter F – CAFR Disclosure Forms F - 19 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 1. CASH AND INVESTMENTS J. Segmented Time Distribution of Maturities and Credit Ratings for Securities Held in Trust, General Ledger Account 0330 Please complete the schedule below to list, by investment type, the credit rating, maturity distribution, and fair value of your agency’s securities held in trust (debt investments) as of fiscal year end. • The groupings by credit rating should be aggregated. For example, if $400,000 of Corporate bonds are rated AA and $300,000 of Corporate bonds are rated A, they should be displayed on separate lines. • Aggregated credit ratings should be the lower of Moody’s, Standard & Poors, or Fitch. • U.S. Treasuries and obligations explicitly guaranteed by the U.S. government are considered to have no credit risk; therefore, they are the highest credit quality, AAA or Aaa. Investment Maturities (in years) Credit Rating Less than 1 year More than 10 years Total Book or Fair Value Investment Type U.S. Gov’t Securities U.S. Agency Securities U.S. Gov’t Strips U.S. Agency Strips Domestic Equity Securities International Equity Securities International Debt Securities Commercial Paper Corporate Bonds Municipal Bonds Bankers’ Acceptances Collateralized Mortgage Oblig. Repurchase Agreements Mutual Funds – Fixed Income Only Mutual Funds – Non Fixed Income Alternative Equities Real Estate & Real Estate Mortg. Guaranteed Inv. Contracts Annuity Contracts Total 1-5 years 6-10 years n/a n/a n/a n/a n/a n/a n/a R*STARS GL Account 0330 Notes about Investment credit ratings: The highest credit quality is Aaa (Moody’s), AAA (S&P) and AAA (Fitch’s); very high credit is Aa (Moody’s), AA (S&P) and AA (Fitch’s); high credit rating is A (Moody’s, S&P, and Fitch’s); good credit rating is Baa (Moody’s), BBB (S&P) and BBB (Fitch’s); and speculative grade rating is Ba (Moody’s), BB (S&P and Fitch’s). Chapter F – CAFR Disclosure Forms F - 20 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 1. CASH AND INVESTMENTS K. Savings and TCD Held in Trust, General Ledger Account 0335 This includes cash and certificates of deposit that are held in trust as performance deposits or for other reasons. Please complete the schedules below to indicate your agency's bank and book balances of cash held in trust at fiscal year end for all GAAP funds. 0335 Bank Balance Name of Bank Description / Purpose Total Bank Balance Of the total bank balances above, please indicate the amounts in each category of risk as defined below: Custodial Credit Risk Insured (typically first $100,000 per account is insured by FDIC): Collateralized: Held by State’s agent in the State’s name: Held by pledging bank’s trust department in the State’s name: Held by pledging bank’s trust department but not in the State’s name: Uninsured and Uncollateralized: Total Bank Balance (should agree to bank balance above) R*STARS GL Account 0335 Book Balance: Note: The total bank balances should equal the R*STARS book balances unless there are reconciling items due to timing differences. Bank Balance Chapter F – CAFR Disclosure Forms F - 21 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 1. CASH AND INVESTMENTS L.a. Determining Fair Value of Investments (see G & I) For those investments subject to fair value reporting under GASB Statement No. 31, please describe below the methods and significant assumptions used to estimate the fair value of investments in those cases where the fair value is based on other than quoted market prices. L.b. Reporting Investment Income (see G & I) Please describe instances where, due to legal or contractual provisions, investment income is recognized and reported in a fund type that is different from where the related investment is reported. For example, if investments are reported in the special revenue fund and the related investment income is recognized directly in the general fund. Note that this disclosure does not apply in cases where investment income is initially recognized in one fund type (the same fund in which the investments are held) and then subsequently transferred to another fund. In this latter case, the interfund transfer allows the user of the financial statements to track revenue from one fund to another without the need for additional note disclosures. Chapter F – CAFR Disclosure Forms F - 22 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 1. CASH AND INVESTMENTS M.a. Concentration of Credit Risk This is for investments held outside of the State Treasury. General ledger accounts in which the investments may be recorded are 0250, 0255, 0290, and 0940. Do investments in any one issuer exceed 5% or more of the total investments for that GAAP fund? If so, identify the issuer, investment type (e.g., Corporate bonds), and fair value of such holdings. Excluded from this calculation are U.S. Treasuries, U.S. Agency securities explicitly guaranteed by the U.S. government, and mutual funds. For debt securities, the issuer is the entity that is legally obligated to make principal and interest payments to bond holders. For equity securities, the issuer is the entity that has the authority to distribute a security or other investment. GL Account Issuer GAAP Fund Investment Type Fair Value 0940 0940 0940 MBIA NATIXIS AIG 4016 4016 4016 GIC GIC GIC 2,843,644.00 10,893,380.00 3,569,810.00 M.b. Investment Policy Disclosure This is for investments held outside of the State Treasury. Describe your agency’s investment policies that are related to the risks required to be disclosed in GASB Statement No. 40. Those risks may be concentration of credit risk, foreign currency risk, and interest rate risk, for example. The policy must be formally adopted through legal, contractual or other means, usually by a governing board. Bond or debt covenants can contain investment policies that should be disclosed. Investment policies may describe the types of investments allowed, concentration of holdings, credit quality of holdings, and portfolio-wide maturity considerations. N/A - Investments held outside the State Treasury relate to donated assets, which may have specific conditions attached. No policy exists outside of these restrictions. Chapter F – CAFR Disclosure Forms F - 23 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 1. CASH AND INVESTMENTS N. Foreign Currency Risk - Investments This is for investments held outside of the State Treasury. General ledger accounts in which the investments may be recorded are 0250, 0255, 0290, and 0940. Please list by foreign currency and investment type the U.S. dollar balances of investments exposed to foreign currency risk. Please note that investments denominated in foreign currencies are included in this disclosure. Please distinguish between debt and equity securities. GL Acct Foreign Currency Argentine peso Australian dollar Bermudan dollar Bolivian boliviano Brazilian real Canadian dollar Chilean peso Chinese yuan Danish krone Euro Hong Kong dollar Japanese yen Mexican peso Netherlands Antillan guilder New Taiwan dollar New Zealand dollar Norwegian krone Russian ruble Singapore dollar South African rand South Korean won Swiss franc United Kingdom pound sterling Investment Type Carrying /Reported Value (U.S. dollar) Chapter F – CAFR Disclosure Forms F - 24 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 2. RESTRICTED ASSETS Please complete the following schedule regarding your agency's restricted assets. Restricted assets result when specific assets (i.e., cash and/or investments) are set aside to satisfy restrictions. Normally, these assets will consist of reserves or other amounts set aside as part of a long-term debt agreement (i.e., bond indenture or COP financing agreement) or customer deposits. Please indicate the purpose for which the assets are restricted: current debt service, future debt service, customer deposits, or other categories as applicable. Restricted assets should be reported on the face of the balance sheet, since the classified format will be presented for the Proprietary Funds and for the Government-Wide Statements in the CAFR. Thus, agencies with cash or investments outside State Treasury should reclassify restricted balances to GL account 0928, Cash and Cash Equivalents – Restricted, G/L account 0290, Investment – Restricted – Current, and/or GL account 0940, Investments – Restricted, as applicable at year end. This disclosure is needed to identify the purpose of those restricted assets. Cash and investments held in State Treasury that are considered restricted assets may be recorded in a variety of GL accounts. For these restricted assets, indicate the GL account below. GAAP Fund 1111 2001 4013 2001 2001 2001 1111 2001 2002 GL Account 0928 0940 0290 0065 0070 0070 0070 0928 0928 GL Account Title Cash and Cash Equivalents-Restricted Investments-Restricted Investments-Restricted-Current Unreconciled Deposit Cash in Oregon State Treasury Cash in Oregon State Treasury Cash in Oregon State Treasury Cash and Cash Equivalents-Restricted Cash and Cash Equivalents-Restricted Amount of Restricted Asset 285,229.09 232,716.14 786,292.00 (116,698.63) 11,075,869.00 581,865.66 17,980,939.63 79,527.32 83.20 Purpose Current Debt Service Current Debt Service Loan Commitments Current Debt Service Future Debt Service Current Debt Service Current Debt Service Current Debt Service Current Debt Service Chapter F – CAFR Disclosure Forms F - 25 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 3. RESTRICTED NET ASSETS When a revenue source is restricted, the resulting net assets (equity – meaning, the assets minus the related liabilities) of the activity should be reported as restricted net assets. The restriction applies to the available net assets (or fund balance for governmental funds) remaining from the unspent restricted revenue. Restricted net assets should be reported when restrictions are: (1) Externally imposed by creditors, grantors, contributors, or laws or regulations of other governments, or (2) Are imposed by law through constitutional provisions or enabling legislation. (Enabling legislation authorizes the State to assess, levy, charge, or otherwise mandate payment of resources from external resource providers, and includes a legally enforceable requirement that those resources be used only for the specific purposes stipulated in the legislation.) For example, net assets in the Highway Fund resulting from gas taxes and other motor vehicle taxes would be reported as restricted net assets since these revenues are restricted for transportation purposes by the Constitution. Note: In contrast to restricted net assets, restricted assets result when specific assets are set aside to satisfy restrictions (i.e., bond covenants), as opposed to the restriction of a revenue source. These restricted assets will normally consist of cash and/or investments and will usually be offset by a liability (i.e., bonds payable). Note: In addition, restricted net assets are not applicable in fiduciary funds. Please complete the information on the following page for each of your agency’s restrictions. If you have restricted net assets that are commingled with non-restricted assets within a D23 fund, you will need to attach a trial balance listing the general ledger account balances included in the restricted amount. If the restriction is not imposed by statutory or constitutional provision, please attach a copy of the restricting document. Chapter F – CAFR Disclosure Forms F - 26 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 3. RESTRICTED NET ASSETS (Continued) GAAP Fund D23 Fund Constitutional or statutory reference Describe nature of restriction A distinction between permanent and temporary restrictions on net assets is required by GAAP. If any of your restricted net assets are held in permanent funds or result from permanent endowments, please complete the following. The nonexpendable balance is the principal or other amount that must be retained in perpetuity. GAAP Fund D23 Fund Nonexpendable balance Chapter F – CAFR Disclosure Forms F - 27 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 4. DONOR-RESTRICTED ENDOWMENTS Please provide the following information related to donor-restricted endowments. A donor-restricted endowment is a donation received from an individual or other external party for which the gift giver has stipulated that the gift must be maintained intact and only the income generated by the gift may be spent on a specific state program. Amount of net appreciation on investments of donor-restricted endowments (investment income) that is available for authorization for expenditure by the governing board: State law governing the ability to spend the net appreciation: Policy for authorizing and spending investment income, such as a spending-rate or total-return policy: Chapter F – CAFR Disclosure Forms F - 28 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 5. LONG-TERM CLAIMS AND JUDGMENTS PAYABLE Please complete the table below to provide information about your agency’s claims and judgments payable for all GAAP funds. Include information for the following general ledger accounts only: Current: 1617 1625 1626 Noncurrent: 1717 1725 1726 1727 1740 Claims and Judgments Payable Legal Reserves Reported Claims-Risk Management Legal IBNR IBNR Reserves - Risk Management The portion, which is due within one year, should be reported in the current GL account. The liquidating GAAP fund is the GAAP fund normally used to pay the claims and judgments that are recorded in the general ledger accounts listed above. GAAP Fund 5001 GL Acct 1617/1717 Beginning Balance 150,500.00 Increases 20,000.00 Decreases (10,000.00) Ending Balance 160,500.00 Amount Due Within One Year 50,000.00 Liquidating GAAP Fund 5001 Chapter F – CAFR Disclosure Forms F - 29 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 6. LONG-TERM CONTRACTS, MORTGAGES AND NOTES PAYABLE Please complete the table below to provide information about your agency’s contracts, mortgages, and notes payable for all GAAP funds. Include information for the following general ledger accounts only: Current: 1621 1622 1635 1640 Noncurrent: 1720 1721 1722 1730 1735 1750 Accounts Payable – Noncurrent Mortgage Payable Contracts Payable – Retainage Original/Acquisition Loan Fees Loans Payable Notes Payable The portion, which is due within one year, should be reported in the current GL account. The liquidating GAAP fund is the GAAP fund normally used to pay the contracts, mortgages, and notes that are recorded in the general ledger accounts listed above. GAAP Fund 8500 5001 5001 5001 GL Acct 1622/1722 1622/1722 1635/1735 1720 Beginning Balance 24,740.50 81,718.95 730,487.91 15,463.25 Increases 0.00 355,671.49 0.00 4,500.00 Decreases (24,740.50) (81,718.95) (303,181.98) (1,500.00) Ending Balance 0.00 355,671.49 427,305.93 18,463.25 Amount Due Within One Year 0.00 275,541.49 327,938.48 0.00 Liquidating GAAP Fund 1110 5001 5001 5001 Chapter F – CAFR Disclosure Forms F - 30 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 7. OUTSTANDING DEBT RELATED TO CAPITAL ASSETS Please complete the schedule below to provide necessary information about your agency's outstanding debt that was issued to purchase or construct capital assets. Please use these types of debt: Revenue Bonds, General Obligation Bonds, Certificates of Participation, Lease-Purchases, and Capital Leases. General ledger accounts in which the capital asset debt may be recorded are 1240, 1276, 1279, 1280, 1281, 1702-1705, 1709, 1712-1716 and 1750. In addition, indicate the GAAP fund in which the debt is recorded. This disclosure form is not applicable to fiduciary funds. SARS uses this disclosure to calculate your agency’s amount of Invested in Capital Assets, Net of Related Debt. When debt is related to a construction project, only the amount that has been capitalized (i.e., in Construction in Progress, Buildings, etc.) should be used to calculate the amount of invested in Capital Assets, Net of Related Debt. Thus, for construction projects that are partially complete, please indicate the amount of debt outstanding, and the amount that has been capitalized as a capital asset. For construction projects fully complete, please indicate the outstanding debt. If no expenditures have been capitalized (construction has not yet begun), do not include outstanding debt on this disclosure form. Debt Related to Project in Progress: GAAP Fund 4013 4013 GL Account 1714 1713 Type of Debt Rev Bonds Premium Rev Bond Capital-Related Debt Balance Outstanding at Year End 20,013,543.00 856,818.31 For construction projects or acquisitions partially complete, amount that has been capitalized 8,209,465.15 100,579.31 Debt Related to Fully Completed Project: GAAP Fund 4013 GL Account 1714 Type of Debt Rev Bonds Capital-Related Debt Balance Outstanding at Year End 2,457,056.10 Chapter F – CAFR Disclosure Forms F - 31 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 8. WORKS OF ART AND HISTORICAL TREASURES – NOT CAPITALIZED Whether held as individual items or in a collection, Works of Art and Historical Treasures should be capitalized at their historical cost or fair value at date of donation unless a collection meets all three of the following conditions. The collection is: 1) Held for public exhibition, education, or research in the furtherance of public service, rather than financial gain; and 2) Protected, kept unencumbered, cared for and preserved; and 3) Subject to an organizational (agency) policy that requires the proceeds from sales of the collection items to be used to acquire other items for collections. If your agency has Works of Art and Historical Treasures that meet all of these conditions, and your agency has chosen not to capitalize the assets, this disclosure form needs to be completed. Please provide a brief description of the Works of Art and Historical Treasures that are not being capitalized and a brief explanation as to why they are not capitalized (i.e., explain how they meet all three conditions for exemption from capitalization). This disclosure form should not include items that are already recorded in your agency’s accounting records as Works of Art and Historical Treasures. In addition, this disclosure form should not include items with a historical cost or fair value at date of donation of less than $5,000, since these assets are not considered capital assets and should not be capitalized. Photographs of Oregon locales by renowned photographers. Collection is unencumbered and preserved. Should any item be sold or otherwise disposed, agency policy requires purchase of a replacement. Chapter F – CAFR Disclosure Forms F - 32 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 9. CAPITAL LEASE OBLIGATIONS A. Schedule of Future Lease Payments Capital Leases Minimum Future Lease Payments and Present Values of the Net Minimum Lease Payments GovernmentWide Reporting Fund Fiscal Year Ended June 30, 2009 June 30, 2010 June 30, 2011 June 30, 2012 June 30, 2013 June 30, 2014-2018 June 30, 2019-2023 June 30, 2024-2028 June 30, 2029-2033 June 30, 2034-2038 June 30, 2039-2043 June 30, 2044-2048 Total Future Minimum Lease Payments Less: Interest & Executory Costs * Present Value of Net Min Lease Payments (A) GL Acct 1280 Bal GL Acct 1281 Bal GL Acct 1715 Bal GL Acct 1716 Bal Total Liability (B) Difference (A-B) 6,396.00 6,396.00 6,396.00 1,050.00 Enterprise Funds Internal Service Funds Fiduciary Funds Totals 6,396.00 6,396.00 6,396.00 1,050.00 20,238.00 (2,431.00) 20,238.00 (2,431.00) 17,807.00 6,396.00 11,411.00 17,807.00 6,396.00 11,411.00 17,807.00 0.00 17,807.00 0.00 If the difference between the Present Value of Net Minimum Lease Payments and the liability recorded in R*STARS accounts 1280, 1281, 1715 and 1716 is greater than $1,000, please attach an explanation of what caused the difference. * Interest Costs are defined as the interest rate implicit in the lease. Examples of Executory Costs are insurance, maintenance, and taxes paid in connection with the leased property. Chapter F – CAFR Disclosure Forms F - 33 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 9. CAPITAL LEASE OBLIGATIONS B. Changes in Liability in Government-Wide Reporting Fund Beginning Fiscal Year Balance, Account 1280 Beginning Fiscal Year Balance, Account 1281 Beginning Fiscal Year Balance, Account 1715 Beginning Fiscal Year Balance, Account 1716 Increases: (Show fund(s) owing the Lease) Purchase Equipment on Contract: GAAP Fund GAAP Fund Purchase Equipment on Lease: GAAP Fund GAAP Fund New Capital Lease: GAAP Fund GAAP Fund Other Increase: GAAP Fund GAAP Fund Decreases: Payments on Contracts (principal): GAAP Fund Paying 1101 Principal Object Interest Compt Object Interest Amount Payments on Lease – Purchase (principal): GAAP Fund Paying Interest Compt Object Payments on Capital Lease (principal): GAAP Fund Paying Interest Compt Object Other Decreases: Compt Object Principal Object Interest Amount (4,748.00) 4,748.00 17,807.00 Principal Object Interest Amount Ending Fiscal Year Balance, Account 1280 Ending Fiscal Year Balance, Account 1281 Ending Fiscal Year Balance, Account 1715 Ending Fiscal Year Balance, Account 1716 6,396.00 11,411.00 Chapter F – CAFR Disclosure Forms F - 34 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 9. CAPITAL LEASE OBLIGATIONS C. Book Value of Capital Leased Assets Provide original cost and accumulated depreciation for all assets under outstanding capital and lease-purchases. Include only those assets with current outstanding capital or lease-purchase liabilities. Asset Mailing System GAAP Fund 8500 Purchase Price 35,160.00 Accumulated Depreciation 3,516.00 Chapter F – CAFR Disclosure Forms F - 35 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 10. OPERATING LEASE COMMITMENTS A. Schedule of Future Lease Payments Please complete the schedule below for all noncancelable operating leases whose terms exceed one year (beyond June 30, 2008) that your agency has regardless of the fund that has the commitment. A lease is not considered cancelable simply because it contains a “fiscal funding clause” which states that the lease is cancelable in the event that funds are not appropriated to cover the required lease payments. Do not include rent agreements with the Department of Administrative Services for office space. These amounts will be used for a financial statement note to disclose the amount of operating lease commitments the State has at fiscal year end. Operating Leases All Funds Schedule of Minimum Future Lease Payments Fiscal Year Ended: June 30, 2009 June 30, 2010 June 30, 2011 June 30, 2012 June 30, 2013 June 30, 2014-2018 June 30, 2019-2023 June 30, 2024-2028 June 30, 2029-2033 June 30, 2034-2038 June 30, 2039-2043 June 30, 2044-2048 June 30, 2049-2053 Total Future Minimum Lease Payments Current Year Operating Lease Costs Chapter F – CAFR Disclosure Forms 4,008,420.11 3,512,419.81 3,236,175.01 2,701,180.68 2,386,144.71 5,603,852.83 837,357.18 22,285,550.33 4,586,733.96 F - 36 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 10. OPERATING LEASE RECEIVABLES B. Schedule of Future Lease Rentals In some instances, the State is receiving income for land, property or equipment that is being leased to outside (non-state) entities. Please complete the schedule below for all noncancelable operating leases that your agency has where your agency is the leasor. These amounts will be used for a financial statement note to disclose the amount of operating leases the State has at fiscal year end where the State is the leasor. Operating Leases All Funds Schedule of Minimum Future Rentals Fiscal Year Ended: June 30, 2009 June 30, 2010 June 30, 2011 June 30, 2012 June 30, 2013 June 30, 2014-2018 June 30, 2019-2023 June 30, 2024-2028 June 30, 2029-2033 June 30, 2034-2038 June 30, 2039-2043 June 30, 2044-2048 June 30, 2049-2053 Total Future Minimum Lease Rentals Current Year Operating Lease Income 1,604,654.00 840,123.00 500,612.00 355,152.00 236,113.00 206,549.00 64,044.00 15,818.00 0.00 0.00 0.00 0.00 0.00 3,823,065.00 2,004,548.00 Chapter F – CAFR Disclosure Forms F - 37 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 10. OPERATING LEASE RECEIVABLES C. Leased Asset Information Please provide the following information related to land, property or equipment that your agency is leasing to outside entities. GAAP Fund 4002 Type of Asset Being Leased Office Space Cost of Leased Asset 1,954,600.00 Accumulated Depreciation on Leased Asset 747,400.00 Carrying Amount of Leased Asset 1,207,200.00 Please provide a brief description of the leasing arrangement. The Department leases office space to a private company in Salem. The lease agreements for the tenant are for a two-year period, ending on the last day of the biennium. For the biennium ended June 30, 200X, the total rental income received from the tenant was $494,208 per fiscal year. Future rental income may increase to a higher rental rate due to inflation. Chapter F – CAFR Disclosure Forms F - 38 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 11. CONSTRUCTION CONTRACT COMMITMENTS A contract between two parties does not result immediately in the recognition of a liability. Rather, a liability is incurred when performance has occurred under the contract. Until then, the contract represents a commitment. GAAP requires that such commitments be disclosed in the notes to the financial statements. Please provide a brief description of ongoing construction projects at your agency. For example, construction of new office building, repair and maintenance of existing office facilities, prison construction and upgrades, road construction, etc. Our agency is currently constructing a new training facility in Salem. There are two construction contract commitments associated with this project. Please complete the schedule below for construction contract commitments that are partially completed at June 30. Please indicate the amount of the remaining commitment that will be funded through general, federal, lottery, or other funds. These amounts will be used to disclose in the CAFR the amount of construction commitments the State has at fiscal year end. Remaining Commitment Funding Source General Federal Lottery Other Fund Funds Funds Funds 177,739.00 177,739.00 Project Office Bldg Construction Spent-toDate 4,645,320.00 Chapter F – CAFR Disclosure Forms F - 39 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 12. OTHER COMMITMENTS Disclosure must be made in the CAFR for other commitments such as obligations for grants, loans, community service contracts, or contracts for services. Please complete the schedule below to provide the amount of commitments for all fund types (exclude operating lease commitments and construction contract commitments, which are covered on disclosures No.10 and 11). Include all amounts committed at June 30, for which the services have not been received as of June 30. In addition to a general description of the purpose of the contract, please indicate the amount of the commitment that will be funded through general, federal, lottery, or other funds. Commitment Funding Source Federal Lottery Funds Funds Purpose (Select from drop-down box) Community services contracts Grant and loan commitments General Fund Other Funds 23,900,000.00 49,500,000.00 Chapter F – CAFR Disclosure Forms F - 40 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 13.A CHANGES IN GL ACCOUNT 3003, RESERVED FOR OTHER LONG-TERM RECEIVABLES-GAAP FUND REPORTING (governmental funds only) Use this form for changes in GL Account 3003 that are supported by revenues or expenditures. Please complete a form for each GAAP fund with a balance during the fiscal year. GAAP Fund 3001 Balance in GL Account 3003, Beginning of Fiscal Year Increases Comptroller Object Comptroller Object Amount Amount 100,000.00 Decreases Comptroller Object Comptroller Object 0708 Amount Amount 15,000.00 Balance in GL Account 3003, Fiscal Year End 85,000.00 Chapter F – CAFR Disclosure Forms F - 41 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 13.B CHANGES IN GL ACCOUNT 3003, RESERVED FOR OTHER LONG-TERM RECEIVABLES-GAAP FUND REPORTING (governmental funds only) Use this form when changes in GL Account 3003 are not supported by changes in revenues or expenditures. If this form is completed, disclosure form number 13.C also needs to be completed. Please complete a form for each GAAP fund with a balance during the fiscal year. GAAP Fund 0001 Balance in GL Account 3003, Beginning of Fiscal Year 13,000,000.00 Net Change not supported by changes in revenues and expenditures (should agree to amount on Disclosure 13.C) (1,000,000.00) Balance in GL Account 3003, Fiscal Year End 12,000,000.00 For a net change that is not supported by changes in revenues and expenditures, please explain: Collections were received in the interface activity. To reflect allowance for doubtful accounts increase. Chapter F – CAFR Disclosure Forms F - 42 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 13.C CHANGES IN GL ACCOUNT 3003, RESERVED FOR OTHER LONG-TERM RECEIVABLES - GOVERNMENT-WIDE REPORTING (governmental funds only) Use this form for changes not supported by revenues or expenditures. (per disclosure 13.B) For government-wide reporting, in the Statement of Activities, revenue must be recognized on the accrual basis of accounting (vs. the modified accrual basis used in governmental funds). Revenue that is considered unavailable in governmental funds must be recognized in the government-wide Statement of Activities. The additional amount of revenue to be recognized is equal to the amount not supported by direct revenue or expenditure that GL account 3003, Reserved for Other Longterm Receivables, increased or decreased over the course of the year. For each governmental fund having a balance in GL account 3003 Reserved for Other Long-term Receivables for which disclosure 13.B applied, please provide the following information: GAAP Fund Net change* not supported by revenues or expenditures in GL Account 3003 (should agree to amount in 13.B) (1,000,000.00) Please indicate the amount of the net change (*) that is attributable to each of the following revenue categories: Charges for Services** Operating Grants and Contributions Capital Grants and Contributions Personal Income Taxes Corporate Income Taxes Tobacco Taxes Healthcare Provider Taxes Motor Fuels Taxes Weight-Mile Taxes Vehicle Registration Taxes Employer-Employee Taxes Public Utilities Taxes Insurance Premium Taxes Workers’ Compensation Insurance Taxes Inheritance and Gift Taxes Other Taxes Reduction of Expense (please check one) Services & Supplies Special Payments Total net change not supported by revenues or expenditures* * These two amounts should be the same. ** Includes revenue categories of licenses & fees, charges for services, fines & forfeitures, rents & royalties, and sales. Chapter F – CAFR Disclosure Forms F - 43 (1,000,000.00) CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 14. GENERAL FUND EXPENDITURES ON BEHALF OF PROPRIETARY FUNDS Please complete the schedule below to indicate expenditures in GAAP Fund 0001 (General Fund) that were made on behalf of a proprietary fund. Compt Object 3XXX 4XXX Expenditure Amount 154,916.00 457,461.00 GAAP Fund Made on Behalf of 4013 4013 Chapter F – CAFR Disclosure Forms F - 44 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 15. DISCOUNTS AND ALLOWANCES IN PROPRIETARY FUNDS Revenues in proprietary funds should be reported net of discounts and allowances. Generally accepted accounting principles require disclosure of these discounts and allowances. This would include sales discounts and allowances as well as amounts pertaining to uncollectible accounts. Information on allowance for uncollectible accounts is available in R*STARS; thus, this disclosure does not need to include allowance for uncollectible amounts. This disclosure form only needs to include trade discounts or sales allowances provided during the normal course of business (not recorded separately on R*STARS). For each type of revenue (in proprietary funds only), please report the amount of trade discounts or sales allowances provided to customers during the fiscal year. Type of Revenue 0175 Assessments 0156 Other Taxes 0250 Licenses and Fees 0450 Federal 0550 Charges for Services 0650 Fines and Forfeitures 0750 Rents and Royalties 0850 Sales 1050 Gifts, Grants and Contracts 1250 Other 4013 30,136.00 GAAP Fund Discount or Allowance Amount Chapter F – CAFR Disclosure Forms F - 45 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 16. INVESTMENTS FOR CASH FLOW STATEMENT PURPOSES – PROPRIETARY FUNDS Please complete a form for each GAAP fund with a balance. GAAP Fund 4013 Beginning of Fiscal Year GL Account Balances: Balance Account 0240, Investments – Designated Balance Account 0245, Investment Valuation Account - Designated Balance Account 0250, Investments – Other Balance Account 0255, Investment Valuation Account - Other Balance Account 0261, Premium on Investments Balance Account 0281, Discount on Investments Balance Account 0290, Investments – Restricted – Current Balance Account 0940, Investments - Restricted Total Investments at Beginning of Fiscal Year Increases: Purchase of investments Decreases: Sales of investments Calls/Maturities of investments Increases/(Decreases): Changes in fair value of investments (Comptroller Object 0830) Ending Fiscal Year GL Account Balances: Balance Account 0240, Investments - Designated Balance Account 0245, Investment Valuation Account - Designated Balance Account 0250, Investments - Other Balance Account 0255, Investment Valuation Account - Other Balance Account 0261, Premium on Investments Balance Account 0281, Discount on Investments Balance Account 0290, Investments – Restricted – Current Balance Account 0940, Investments - Restricted Total Investments at Fiscal Year End 12,500,000.00 396,500.00 441,375.00 _ 12,500,000.00 (44,875.00) 12,455,125.00 12,896,500.00 Chapter F – CAFR Disclosure Forms F - 46 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 17. CASH FLOW STATEMENT DISCLOSURE ANALYSIS - PROPRIETARY FUNDS Noncash investing, capital, and financing activities are required to be disclosed in the Cash Flow Statement. Please provide information about the transactions described if any occurred during the current fiscal year. Amount Capital leases entered into during the year (initial liability recorded) Property foreclosed on Sale of property on contract Capital assets exchanged for other capital assets Other noncash assets exchanged for noncash assets Other noncash assets exchanged for liabilities Capital assets transferred to governmental funds (government-wide reporting fund) Capital assets transferred from governmental funds (government-wide reporting fund) Capital assets contributed to proprietary funds GAAP Fund Chapter F – CAFR Disclosure Forms F - 47 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 18. E-BOARD REQUESTS PENDING AT CLOSE OF MONTH 13 Please provide a brief description of any Emergency Board requests your agency has pending at the time Month 13 closes. Indicate the expected E-Board meeting date, the purpose of the request, and the appropriated fund to which the adjustment will be made once it has been approved. Senate Bill 55XX Adjustment: Other Funds appropriation number 34101 had an outstanding adjustment at the end of FY 20XX of (2,660,551.00) and General Fund appropriation number 87101 had an outstanding adjustment at the end of FY 20XX of (339,074.00). Chapter F – CAFR Disclosure Forms F - 48 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 19. CHANGES IN FUND EQUITY Please complete the schedule below to indicate changes in fund equity (net assets or fund balance, as applicable) caused by transactions other than closing revenue and expenditure accounts and/or recording budgets. GAAP Fund 1105 5003 GL Account Number 3020 3025 Balance Prior Year 0.00 57,128.17 Balance Current Year 57,128.17 0.00 Reason(s) for Change Change in GAAP Funds Change in GAAP Funds Chapter F – CAFR Disclosure Forms F - 49 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 20. PRIOR PERIOD ADJUSTMENTS A prior period adjustment results from the correction of an error in a prior fiscal year. Prior period adjustments should be recorded in GL Account 3060, Prior Period Adjustment. Please provide a description of any prior period adjustments your agency made during this fiscal year that exceed $500,000 in the aggregate, by GAAP fund. GAAP Fund 8500 8500 Amount in GL 3060 (1,323,732.04) 533,000.00 Reason(s) for Adjustment Capital assets not recorded in prior years Accumulated depreciation not recorded in prior years Chapter F – CAFR Disclosure Forms F - 50 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 21. CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE Accounting changes result from the adoption of a generally accepted accounting principle different from the one used previously for financial reporting purposes, such as a change in depreciation method from straight line to accelerated, or vice versa. Changes in accounting principles should be recorded in GL Account 3064, Accounting Change. Please provide a description of any accounting changes your agency made during this fiscal year that exceed $500,000 in the aggregate, by GAAP fund. GAAP Fund Amount in GL 3064 Reason(s) for Change Chapter F – CAFR Disclosure Forms F - 51 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 22. RELATED PARTY TRANSACTIONS Please use the space below, or attach a separate sheet of paper, to provide the following information concerning related party transactions during the fiscal year: (1) (2) (3) (4) The nature of the relationship(s) involved. A description of the transactions. The dollar amounts associated with the transactions. The amounts due from or to related parties as of fiscal year end. Chapter F – CAFR Disclosure Forms F - 52 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 23. JOINT VENTURES By using the space below, or attaching a separate sheet of paper, please provide the following information: (1) (2) (3) (4) (5) Participants and their percentage shares. Arrangements for selecting the governing body or management. Degree of control the participants have over budgeting and financing. Total assets, liabilities, and net assets (equity) of the joint venture at the balance sheet date. Total revenues, expenditures, other financing sources and uses, and the change in fund balance/net assets. (6) Your agency's share of the assets, liabilities, and net assets (equity) in the joint venture for the year. Chapter F – CAFR Disclosure Forms F - 53 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 24. SIGNIFICANT INTERFUND TRANSFERS Please provide the information requested below for interfund transfers exceeding $25,000,000, that: (1) Do not occur on a routine basis, for example, a transfer to a wastewater enterprise fund for the local match of a federal pollution control grant, or (2) Are inconsistent with the activities of the fund making the transfer, for example, a transfer from a capital projects fund to the general fund. Interfund transfers are defined as flows of assets between funds or agencies without equivalent flows of assets in return and without a requirement for repayment. GAAP Fund disbursing the transfer: Amount of the transfer: Intended purpose of the transfer: Chapter F – CAFR Disclosure Forms F - 54 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 25. INFREQUENT AND/OR UNUSUAL ITEMS If your agency was involved with significant transactions or events during the fiscal year that were infrequent and/or unusual in nature use this disclosure form to indicate whether such items were: (1) Special Items, (2) Extraordinary Items, or (3) Other Items. Special Items are significant transactions or other events within the control of management that are either unusual in nature or infrequent in occurrence. Although special items are recorded in comptroller object 2500, a description of the transaction is needed for reporting purposes. Extraordinary Items are significant transactions or other events that are both unusual in nature and infrequent in occurrence. Although extraordinary items are recorded in comptroller object 2450, a description of the transaction is needed for reporting purposes. Capital asset impairments that have been recorded in comptroller object 7510, Gain/Loss on Capital Asset Impairment, may meet the definition of a Special Item or an Extraordinary Item; if so, a description of the transaction is needed. Insurance recoveries that have been recorded in comptroller object 7510, Gain/Loss on Capital Asset Impairment, or in comptroller object 7511, Insurance Recovery Subsequent to Loss, may meet the definition of an Extraordinary Item; if so, a description of the transaction is needed. Other Items: In addition to Special and Extraordinary items, disclosure is required for any significant transactions or other events that are either unusual in nature or infrequent in occurrence, but not within the control of management. Please complete the schedule below for any transactions or events that meet these definitions and indicate whether the type of item is Special, Extraordinary, or Other (not within the control of management). GAAP Fund Compt Object Amount Type (Select from drop-down box) Description Chapter F – CAFR Disclosure Forms F - 55 CAFR GENERAL DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 26. NON-EXCHANGE TRANSACTIONS THAT ARE NOT MEASURABLE Non-exchange transactions that are not reported in the financial statements because they are not measurable (meaning, the amount is not known or cannot be reasonably estimated) must be disclosed. Non-exchange transactions are those transactions in which your agency either gives value (benefit) to another party without directly receiving equal value in exchange or receives value (benefit) from another party without directly giving equal value in exchange. Please use the space below to provide the following information concerning any non-exchange transactions that have not been reported: (1) A description of the transaction (2) An explanation describing why the transaction is not measurable Chapter F – CAFR Disclosure Forms F - 56 F.4. Debt Disclosures - Sample Completed Forms CAFR DEBT DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # Instructions: Your agency’s information on the attached disclosure forms is reviewed by SARS and incorporated into the notes to the statewide financial statements. For the year ended June 30, 2008, please complete the attached disclosure forms that apply to your agency. It is important that disclosure forms reconcile to R*STARS reported balances as of the close of month 13. For any disclosures that do not apply to your agency, please write “not applicable” on the individual form. Return your completed debt disclosures to SARS by August 29, 2008. If you have any questions, you can reach your SARS analyst at 503-373-7277. 1. Short-Term Debt Please complete the schedule below if your agency has issued any debt that is considered short-term debt. Short-term debt results from borrowings characterized by anticipation notes, use of lines of credit, and similar loans. Examples of anticipation notes are as follows: Tax Anticipation Notes (TAN), Bond Anticipation Notes (BAN), and Revenue Anticipation Notes (RAN). Note: This disclosure does not apply to the current portion of long-term debt. Type (TAN, BAN, RAN, etc.) Series name Issue date (Example = 3/1/2008) Due date (Example = 3/1/2009) Amount outstanding as of 7/1/2007 Amount issued during fiscal year Amount repaid during fiscal year Amount outstanding as of 6/30/2008 What was the purpose for issuing this short-term debt? Chapter F – CAFR Disclosure Forms F - 57 CAFR DEBT DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 2.a. General Obligation Bonds – Changes in Outstanding Debt Please complete the following schedule reflecting the changes in your general obligation bonds. Ending balances should agree to R*STARS balances at the close of month 13. Complete a separate page for each fund type (Government-wide Reporting Fund, Enterprise Fund, Internal Service Fund, or Pension and Other Employee Benefit Trust Fund). Attach as many pages as necessary. GENERAL OBLIGATION BONDS Fund Type: Enterprise Fund_________ What are the proceeds of these bonds being used for? Energy Project Loans_____ Double-click on any cell of the table below to begin input. When input is complete, click below the schedule. Schedule of Changes in Outstanding General Obligation Bonds Balance 7/1/2007 Principal Discount (GL 1712) Premium (GL 1713) Deferred Gain/Loss on Refunding (GL 1705) Accreted Interest (GL 1709) Total 184,175,000.00 (1,340,624.00) Additions Deductions 34,655,000.00 (183,478.00) Balance 6/30/2008 149,520,000.00 (1,157,146.00) - 148,362,854.00 182,834,376.00 - 34,471,522.00 (See disclosure 2b for Debt Repayment Schedule) Chapter F – CAFR Disclosure Forms F - 58 CAFR DEBT DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 2.b. General Obligation Bonds – Debt Repayment Schedule Please complete the following schedule reflecting the principal and interest payments necessary over the life of your agency’s general obligation bonds. The schedule of principal and interest payments should be as of the fiscal year end. Interest requirements for variable-rate debt should be determined using the rate in effect at 6/30/2008. Total principal repayments should agree to the principal outstanding as noted in disclosure 2(a). Complete a separate page for each fund type (Governmentwide Reporting Fund, Enterprise Fund, Internal Service Fund, or Pension and Other Employee Benefit Trust Fund). Attach as many pages as necessary. GENERAL OBLIGATION BONDS Fund Type: Enterprise Fund Double-click on any cell of the table below to begin input. When input is complete, click below the schedule. Debt Repayment Schedule - General Obligation Bonds Year Ending 2009 2010 2011 2012 2013 2014-2018 2019-2023 2024-2028 2029-2033 2034-2038 2039-2043 2044-2048 2049-2053 Total Principal 12,430,000.00 13,035,000.00 13,515,000.00 12,205,000.00 11,690,000.00 47,740,000.00 30,350,000.00 4,290,000.00 4,265,000.00 149,520,000.00 Interest 7,417,236.00 6,821,208.00 6,197,671.00 5,544,788.00 4,973,756.00 17,159,263.00 5,739,158.00 1,608,226.00 662,000.00 56,123,306.00 Total 19,847,236.00 19,856,208.00 19,712,671.00 17,749,788.00 16,663,756.00 64,899,263.00 36,089,158.00 5,898,226.00 4,927,000.00 205,643,306.00 Comments: Chapter F – CAFR Disclosure Forms F - 59 CAFR DEBT DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 2.c. General Obligation Bonds – Variable Interest Rate Information If you reported General Obligation debt with variable rate interest, please complete the schedule below. Use one line for each different variable rate issue: Double-click on any cell of the table below to begin input. When input is complete, click below the schedule. Amount of Rate Basis Outstanding Bonds Interest Rate used in Repayment Schedule Chapter F – CAFR Disclosure Forms F - 60 CAFR DEBT DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 3.a. Revenue Bonds – Changes in Outstanding Debt Please complete the following schedule reflecting the changes in your revenue bonds. Ending balances should agree to R*STARS balances at the close of month 13. Complete a separate page for each fund type (Government-wide Reporting Fund, Enterprise Fund, Internal Service Fund, or Pension and Other Employee Benefit Trust Fund). Attach as many pages as necessary. REVENUE BONDS Fund Type: Enterprise Fund What are the proceeds of these bonds being used for? Economic Development Double-click on any cell of the table below to begin input. When input is complete, click below the schedule. Schedule of Changes in Outstanding Revenue Bonds Balance 7/1/2007 Principal Discount (GL 1712) Premium (GL 1713) Deferred Gain/Loss on Refunding (GL 1705) Accreted Interest (GL 1709) Total 55,090,000.00 Additions 6,175,000.00 Deductions 7,520,000.00 Balance 6/30/2008 53,745,000.00 - 53,745,000.00 55,090,000.00 6,175,000.00 7,520,000.00 (See disclosure 3b for Debt Repayment Schedule) Chapter F – CAFR Disclosure Forms F - 61 CAFR DEBT DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 3.b. Revenue Bonds – Debt Repayment Schedule Please complete the following schedule reflecting the principal and interest payments necessary over the life of your agency’s revenue bonds. The schedule of principal and interest payments should be as of the fiscal year end. Interest requirements for variable-rate debt should be determined using the rate in effect at 6/30/2008. Total principal repayments should agree to the principal outstanding as noted in disclosure 3(a). Complete a separate page for each fund type (Government-wide Reporting Fund, Enterprise Fund, Internal Service Fund, or Pension and Other Employee Benefit Trust Fund). Attach as many pages as necessary. REVENUE BONDS Fund Type: Enterprise Fund Double-click on any cell of the table below to begin input. When input is complete, click below the schedule. Debt Repayment Schedule - Revenue Bonds Year Ending 2009 2010 2011 2012 2013 2014-2018 2019-2023 2024-2028 2029-2033 2034-2038 2039-2043 2044-2048 2049-2053 Total Principal 1,435,000.00 1,575,000.00 1,695,000.00 1,845,000.00 1,955,000.00 10,635,000.00 10,940,000.00 13,335,000.00 10,330,000.00 53,745,000.00 Interest 2,814,638.00 2,742,938.00 2,664,162.00 2,577,388.00 2,483,121.00 10,825,457.00 8,049,441.00 4,677,814.00 1,185,889.00 38,020,848.00 Total 4,249,638.00 4,317,938.00 4,359,162.00 4,422,388.00 4,438,121.00 21,460,457.00 18,989,441.00 18,012,814.00 11,515,889.00 91,765,848.00 Comments: Chapter F – CAFR Disclosure Forms F - 62 CAFR DEBT DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 3.c. Revenue Bonds – Variable Rate Interest Information If you reported Revenue Bond debt with variable rate interest, please complete the schedule below. Use one line for each different variable rate issue: Double-click on any cell of the table below to begin input. When input is complete, click below the schedule. Amount of Rate Basis Outstanding Bonds Interest Rate used in Repayment Schedule Chapter F – CAFR Disclosure Forms F - 63 CAFR DEBT DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 4.a. Certificates of Participation – Changes in Outstanding Debt Please complete the following schedule reflecting the changes in your certificates of participation. Ending balances should agree to R*STARS balances at the close of month 13. Complete a separate page for each fund type (Government-wide Reporting Fund, Enterprise Fund, Internal Service Fund, or Pension and Other Employee Benefit Trust Fund). Attach as many pages as necessary. CERTIFICATES OF PARTICIPATION Fund Type: Government-wide Reporting Fund What are the proceeds of these COPS being used for? Capital Construction Double-click on any cell of the table below to begin input. When input is complete, click below the schedule. Schedule of Changes in Outstanding Certificates of Participation Balance 7/1/2007 Principal Discount (GL 1702) Premium (GL 1703) Deferred Gain/Loss on Refunding (GL 1705) Total 7,267,000.00 Additions Deductions 1,432,000.00 Balance 6/30/2008 5,835,000.00 - 7,267,000.00 - 1,432,000.00 5,835,000.00 (See disclosure 4b for Debt Repayment Schedule) Chapter F – CAFR Disclosure Forms F - 64 CAFR DEBT DISCLOSURES YEAR ENDED JUNE 30, 2008. Agency # 0 4.b. Certificates of Participation – Debt Repayment Schedule Please complete the following schedule reflecting the principal and interest payments necessary over the life of your agency’s certificates of participation. The schedule of principal and interest payments should be as of the fiscal year end. Interest requirements for variable-rate debt should be determined using the rate in effect at 6/30/2008. Total principal repayments should agree to the principal outstanding as noted in disclosure 4(a). Complete a separate page for each fund type (Government-wide Reporting Fund, Enterprise Fund, Internal Service Fund, or Pension and Other Employee Benefit Trust Fund). Attach as many pages as necessary. CERTIFICATES OF PARTICIPATION Fund Type: Government-wide Reporting Fund Double-click on any cell of the table below to begin input. When input is complete, click below the schedule. Debt Repayment Schedule - Certificates of Participation Year Ending 2009 2010 2011 2012 2013 2014-2018 2019-2023 2024-2028 2029-2033 2034-2038 2039-2043 2044-2048 2049-2053 Total Principal 1,360,000.00 1,420,000.00 1,490,000.00 1,565,000.00 5,835,000.00 Interest 229,905.00 168,275.00 100,850.00 36,800.00 535,830.00 Total 1,589,905.00 1,588,275.00 1,590,850.00 1,601,800.00 6,370,830.00 Comments: Chapter F – CAFR Disclosure Forms F - 65 CAFR DEBT DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 4.c. Certificates of Participation – Variable Interest Rate Information If you reported Certificates of Participation debt with variable rate interest, please complete the schedule below. Use one line for each different variable rate issue: Double-click on any cell of the table below to begin input. When input is complete, click below the schedule. Amount of Rate Basis Outstanding COPs Interest Rate used in Repayment Schedule Chapter F – CAFR Disclosure Forms F - 66 CAFR DEBT DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 5.a. General Appropriation Bonds – Changes in Outstanding Debt Please complete the following schedule reflecting the changes in your general appropriation bonds. Ending balances should agree to R*STARS balances at the close of month 13. Complete a separate page for each fund type (Government-wide Reporting Fund, Enterprise Fund, Internal Service Fund, or Pension and Other Employee Benefit Trust Fund). Attach as many pages as necessary. GENERAL APPROPRIATION BONDS Fund Type: What are the proceeds of these bonds being used for? Double-click on any cell of the table below to begin input. When input is complete, click below the schedule. Schedule of Changes in Outstanding General Appropriation Bonds Balance 7/1/2007 Principal Discount (GL 1712) Premium (GL 1713) Deferred Gain/Loss on Refunding (GL 1705) Accreted Interest (GL 1709) Total Additions Deductions Balance 6/30/2008 - - - - - (See disclosure 5b for Debt Repayment Schedule) Chapter F – CAFR Disclosure Forms F - 67 CAFR DEBT DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 5.b. General Appropriation Bonds – Debt Repayment Schedule Please complete the following schedule reflecting the principal and interest payments necessary over the life of your agency’s general appropriation bonds. The schedule of principal and interest payments should be as of the fiscal year end. Interest requirements for variable-rate debt should be determined using the rate in effect at 6/30/2008. Total principal repayments should agree to the principal outstanding as noted in disclosure 5(a). Complete a separate page for each fund type (Government-wide Reporting Fund, Enterprise Fund, Internal Service Fund, or Pension and Other Employee Benefit Trust Fund). Attach as many pages as necessary. GENERAL APPROPRIATION BONDS Fund Type: Double-click on any cell of the table below to begin input. When input is complete, click below the schedule. Debt Repayment Schedule - General Appropriation Bonds Year Ending 2009 2010 2011 2012 2013 2014-2018 2019-2023 2024-2028 2029-2033 2034-2038 2039-2043 2044-2048 2049-2053 Total Principal Interest Total - Comments: Chapter F – CAFR Disclosure Forms F - 68 CAFR DEBT DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 5.c. General Appropriation Bonds – Variable Interest Rate Information If you reported General Appropriation Bond debt with variable rate interest, please complete the schedule below. Use one line for each different variable rate issue: Double-click on any cell of the table below to begin input. When input is complete, click below the schedule. Amount of Rate Basis Outstanding Bonds Interest Rate used in Repayment Schedule Chapter F – CAFR Disclosure Forms F - 69 CAFR DEBT DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 6. Demand Bonds (GASB Codification, Section D30) Please provide details of any issues of demand bonds. These are long-term debt issues that require the issuer to repurchase the bonds upon notice from the bondholder at a price equal to the principal plus accrued interest. Segregate by fund type. Not applicable. 7. No-Commitment Debt (GASB Codification, Section C65) Please provide details of any no-commitment debt. These are long-term debt issues that are issued to finance public purpose expenditures for ownership by private entities. This debt bears the name of the state but is secured solely by the credit of the private entity. Amount issued during fiscal year Outstanding as of June 30, 2008 _______$56,732,000 ______$610,432,000 Yes Did you make sure to exclude these from any other disclosures (check here)? If you did not exclude them, please explain. Chapter F – CAFR Disclosure Forms F - 70 CAFR DEBT DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 8. Advance or Current Refundings of Debt (GASB Codification, Section D20) Did you issue any advance or current refundings of debt during the year? If so, please include the details below for financial statement note disclosure. Please note that you may need to confer with your agency’s debt manager to obtain this information. a. Date of issue (Example = 12/31/2007) b. Amount issued c. Proceeds of the new debt for the period d. GAAP Fund receiving the proceeds e. Type of debt issued f. Average interest rate of new issue (Example: For 5.25% enter .0525) g. Description of refunded issue h. Amount refunded i. Average interest rate of issue refunded (Example: For 5.25% enter .0525) j. Difference between the cash flow required to service the new debt and complete the refunding and the cash flow required to service the old debt k. Period of time over which cash flow savings will occur l. The economic gain or loss resulting from the transaction m. Indicate if this refunding is current or advanced 11/2/2007 $6,000,000.00 $5,959,178.05 5001 Certificate of Participation 4.12% 2007 Series A (Ref 2003 B ECC) $5,165,000.00 5.83% $266,610.96 21 years $247,191.32 Advanced GASB Statement 23 requires that for current and advance refundings resulting in a defeasance of debt, the difference between the reacquisition price and the net carrying amount of the old debt be deferred and amortized as a component of interest expense in a systematic and rational manner over the remaining life of the old debt or the life of the new debt, whichever is shorter. The deferred amount should be reported as a contra-liability on the balance sheet (i.e., deduction from the new debt liability). For presentation and disclosure purposes, please provide the following information: n. Difference between the reacquisition price (the amount required to repay the old debt) and the net carrying amount of the old debt o. Method used to amortize the deferred gain or loss, and the period over which it will be amortized $734,188.17 SL; 21 years Chapter F – CAFR Disclosure Forms F - 71 CAFR DEBT DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 9. Defeased Debt (GASB Codification, Section D20) Please complete the following to indicate the status of your defeased debt from prior years: Double-click on any cell of the table below to begin input. When input is complete, click outside the schedule. Amount Outstanding at Date of Defeasance 7/15/1997 10/27/2002 Series Name 1996 Series C 1998 Series One 6/30/2008 $ $ 645,000 5,415,000 Chapter F – CAFR Disclosure Forms F - 72 CAFR DEBT DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 10. Arbitrage Rebate Liability If you have issued tax-exempt bonds or COPS after 1986, you are required to perform rebate calculations. Do you have tax-exempt bonds or COPS that require rebate calculations? If the answer above is yes, who performs your arbitrage rebate calculation? What amount is owed at fiscal year end or when the last calculation was performed, including interest and penalties? $300,000.00 Yes No DAS Finance Manager Indicate where your arbitrage rebate liability is recorded in R*STARS, including the GAAP fund, GL account number, beginning balance, increases, decreases, ending balance, amount due within one year and the liquidating GAAP fund. The noncurrent amount should be reported in GL account 1719, Arbitrage Rebate Payable. The current portion, due within one year of the balance sheet date, should be reported in GL account 1619, Arbitrage Rebate Payable-Current. The liquidating GAAP fund is the GAAP fund normally used to pay the arbitrage rebate liability. GAAP Fund 8500 GL Acct 1619/1719 Beginning Balance 350,000.00 Increases Decreases Ending Balance 300,000.00 Amount Due Within One Year 85,000.00 Liquidating GAAP Fund 2001 50,000.00 100,000.00 Chapter F – CAFR Disclosure Forms F - 73 CAFR DEBT DISCLOSURES YEAR ENDED JUNE 30, 2008 Agency # 0 11. Debt Covenant Violations Did your agency have any significant or recurring violations of debt covenants during the fiscal year? If yes, please provide a description of the violation. No 12. Other Debt Is there other short-term or long-term debt that you are aware of at your agency that should be disclosed? Please provide a description of this debt with supporting documents identifying principal owed, interest schedules, etc. Note: You do not need to include liabilities for compensated absences or any other debt already reported in the general or debt disclosures. None other than debt already disclosed in the General Disclosures. Chapter F – CAFR Disclosure Forms F - 74 This page intentionally left blank. CHAPTER G SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS G.1. Overview of SEFA Reporting The U.S Office of Management and Budget (OMB) has issued six different circulars applicable to federal grants. There are three circulars applicable to each type of entity, as indicated below (for more information, see http://www.whitehouse.gov/omb/circulars/): States, local governments, and Indian tribes follow: • • • A-87 for cost principles A-102 for administrative requirements, and A-133 for audit requirements Educational institutions (even if part of a state or local government) follow: • • • A-21 for cost principles A-110 for administrative requirements, and A-133 for audit requirements Non-profit organizations follow: • • • A-122 for cost principles A-110 for administrative requirements, and A-133 for audit requirements To comply with the Single Audit Act and the U.S. Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-profit Organizations, a statewide Schedule of Expenditures of Federal Awards (SEFA) is prepared each fiscal year. Federal assistance data is provided to Statewide Accounting and Reporting Services (SARS) by state agencies for statewide compilation of the SEFA and subrecipient reports. G.2. History of Federal Reporting Under the Single Audit Act of 1984, multiple grant audits of the past were replaced by a "single" audit specifically designed to meet the needs of all federal grantor agencies. Individual grantors would still retain the right to have additional audit work performed, but they would be required to pay for it and it would build on the work already done by the Single Audit. The provisions of the Single Audit Act applied to all government agencies receiving federal financial assistance in excess of $25,000. For the purposes of the Act, federal financial assistance was very broadly defined and included noncash assistance such as loan guarantees, food stamps, and surplus property. However, federal financial assistance did not include cash assistance furnished directly to individuals. In addition to the requirements specifically outlined in the Single Audit Act, further guidelines of the Office of Management and Budget's (OMB) Circular A-128, Audits of State and Local Governments were to be followed. In 1985, OMB issued a Compliance Supplement that contained nine general requirements applicable to all federal assistance programs. Also, the supplement contained specific requirements for individual programs as defined by their CFDA (Catalog of Federal Domestic Assistance) number. In 1990, OMB extended the single audit process to non-profit organizations by issuing OMB Circular A-133, then titled Audits of Institutions of Higher Education and Other Non-Profit Organizations. A compliance supplement similar to the one issued for Circular A-128 was also issued for Circular A133. In April 1996, OMB revised Circular A-133 in anticipation of an amendment to the Single Audit Act. Because A-133 was administratively issued by OMB and was not specifically tied to the Single Audit Act, OMB was able to implement changes to that circular in advance of the actual passing of the amendment to the Single Audit Act. The revised circular contained many of the changes in the Chapter G – Schedule of Expenditures of Federal Awards G-1 amendment and was expected to need only minor revisions once the Single Audit Act amendment was passed. The Single Audit Act was amended in July of 1996. The primary change allowed OMB to make more specific prescriptions, similar to what Circular A-133 had done in the past. With the passing of the amendments to the Single Audit Act, OMB Circular A-133 was modified to reflect the final language of the act and to include audits of state and local governments. It was now titled Audits of States, Local Governments, and Non-Profit Organizations and OMB Circular A-128 was rescinded. This revision was issued on June 24, 1997 and covered audits of fiscal years beginning after June 30, 1996. On June 27, 2003, OMB issued a subsequent revision to OMB Circular A-133 which was effective for fiscal years ending after December 31, 2003. This revision increased the threshold for Single Audit from $300,000 to $500,000 for purposes of subrecipient monitoring. G.3. Current Single Audit Requirements Single Audit Requirements As Amended • • An entity is exempt from Single Audit requirements if the entity expends less than $500,000 in total federal assistance in its fiscal year. An entity may elect to have a program specific audit if they expend funds only under one federal program and the federal program's laws, regulations, or grant agreements do not require a financial statement audit of the auditee. An entity that expends $500,000 or more in federal assistance in a year shall have a Single Audit conducted in accordance with the Single Audit Act, except when they elect to have a program specific audit. • G.4. SEFA Reporting Requirements G.4.a. When is a Federal Award Expended? The determination of when an award is expended is based on when the activity related to the award occurs. In general, the activity pertains to events that require auditees to comply with laws, regulations, and the provisions of contracts or grant agreements. Such events include but are not limited to the following: • • • • • • • • • Expenditures/expense transactions associated with grants, cost reimbursement contracts, cooperative agreements, and direct appropriations The disbursement of funds passed through to subrecipients The use of loan proceeds under loan and loan guarantee programs The receipt of property The receipt of surplus property The receipt or use of program income The distribution or consumption of food commodities The distribution of amounts entitling the auditee to an interest subsidy The period when insurance is in force Chapter G – Schedule of Expenditures of Federal Awards G-2 G.4.b. Expenditures of Non-Cash Awards Most federal awards are in the form of cash awards. However, there are a number of federal programs that do not involve cash transactions. These programs have specific guidelines to determine when they have been expended and should be included in the Schedule of Expenditures of Federal Awards: Insurance: Fair market value of insurance contract at the time of receipt, or the assessed value provided by the federal agency. Donated property or donated surplus property: Fair market value of donated property or donated surplus property at the time of receipt, or the assessed value provided by the federal agency. Free rent: Fair market value of free rent at the time of receipt, or the assessed value provided by the federal agency. Free rent is not considered an award expended unless it is received as part of an award to carry out a federal program. G.4.c. Loans and Loan Guarantees These programs have specific guidelines to determine when they have been expended and should be included in the Schedule of Expenditures of Federal Awards: Loans and loan guarantees: Value of new loans made or received during the fiscal year plus the balance of loans from previous years for which the federal government imposes continuing compliance requirements plus any interest subsidy, cash, or administrative cost allowance received. Loans and loan guarantees at institutions of higher education: Federal loans made to students of an institution of higher education but the institution does not make the loans, then only the value of loans made during the year are considered federal awards expended in that year. The balance of loans for previous years is not included as federal awards because the lender accounts for the prior balances. G.4.d. Medicare Medicare payments to a non-federal entity for providing patient care services to Medicare eligible individuals are not considered federal awards expended. G.4.e. Medicaid Medicaid payments to a subrecipient for providing patient care services to Medicaid eligible individuals are not considered federal awards expended for reaching the threshold amount that requires a Single Audit. For purposes of SEFA reporting, the Medicaid expenditures must be reported. When subrecipient monitoring assignments are made, the Medicaid payments will be eliminated. Medicaid is not included in the threshold amount to require an entity to have a Single Audit because there is already separate and sufficient monitoring of this program being done. G.4.f. Distinguishing Between Subrecipient and Vendor An entity may be a recipient, a subrecipient, or a vendor. Federal awards expended as a recipient or as a subrecipient are subject to audit under Circular A-133. The payments received for goods or services provided as a vendor would not be considered federal awards to the vendor, but would be considered federal expenditures by the agency recording the payment and need to be reported as direct expenditures in the agency’s SEFA reports. Circular A-133 provides specific guidance on determining whether payments constitute a federal award or a payment for goods and services. This determination also helps an agency to correctly record transactions (see Oregon Accounting Manual Chapter G – Schedule of Expenditures of Federal Awards G-3 (OAM) policy and procedure 15.42.00 on accounting for federal grants). The chart below may be useful to determine whether payments constitute a federal award or a payment for goods and services. Federal Award Subrecipient 1. Determines who is eligible to receive what federal financial assistance. 2. Has its performance measured against whether the objectives of the federal program are met. 3. Has responsibility for programmatic decision making. 4. Has responsibility for adherence to applicable federal program compliance requirements. 5. Uses the federal funds to carry out a program of the organization as compared to providing goods or services for a program of the pass-through entity (the State). Payment for Goods and Services Vendor 1. Provides the goods and services within normal business operations. 2. Provides similar goods or services to many different purchasers. 3. Operates in a competitive environment. 4. Provides goods or services that are ancillary to the operation of the federal program. 5. Is not subject to compliance requirements of the federal program. The circular recognizes that not all of the characteristics will be present and that professional judgment should be used in determining whether an entity is a subrecipient or a vendor. In making this determination, the substance of the relationship is more important than the form of the agreement. G.5. Transfers of Federal Assistance Between State Agencies When federal assistance is transferred from one state agency to another, the expenditure should be reported in the SEFA only once for the State of Oregon as an entity. For the most part, distributions from one agency to another should be reported as transfers for SEFA reporting purposes. The receiving agency will record a transfer in, and the sending agency will record a transfer out; these amounts will be equal and offset for the same CFDA number in the agencies’ SEFA reports. Agencies are responsible to coordinate their SEFA reporting with other agencies to ensure that both agencies are reporting transfers for the same amount and with the same CFDA number. The receiving agency will report SEFA expenditures when it expends the federal assistance; this is the case even when the receiving agency budgets the money as other funds (known as “federal funds budgeted as other funds”) since the money originated from a federal source. In a few cases, a state agency will use federal assistance to pay for goods or services obtained from another state agency. If this occurs, the paying agency reports an expenditure in its SEFA report, and the receiving agency will not report the amount in its SEFA report. G.6. SEFA Year End Reporting The Schedule of Expenditures of Federal Awards (SEFA) reports the total expenditures for each federal program. The State Controller's Division of the Department of Administrative Services Chapter G – Schedule of Expenditures of Federal Awards G-4 compiles this information for the State of Oregon based on information provided by state agencies. Each agency receiving any kind of federal assistance is responsible to ensure federal funds are accounted for properly to support accurate reporting in the SEFA. Beginning July 1, 2005, agencies on R*STARS were required to account for federal funds in accordance with OAM 15.42.00 to facilitate the use of electronic reporting of R*STARS data (agencies that interface data to R*STARS were encouraged but not required to use specific grant profiles in R*STARS). Agencies will use standard reports, available on the Datamart Repository, to transmit information for SEFA year end reporting. Each agency is responsible to run reports for their agency, review the reports for accuracy, and transmit the information to SARS after the close of Month 13 by sending a file with results saved (see G.6.g., Using the SEFA Reports). SARS provides a SEFA checklist to help agencies with their review. In addition, agencies receiving any kind of federal assistance need to complete year end SEFA disclosure forms. The information reported by agencies for the SEFA as well as information provided through disclosure forms is transmitted to SARS at year end through a Transmittal of SEFA Disclosures and Agency Certification (see Form H.4). This certification form is signed by the agency’s SEFA contact and the chief fiscal officer or director. For internal control purposes, the SEFA contact and chief fiscal officer/director must be different individuals. The SEFA reports on the Datamart Repository include six individual reports: 1) Expenditures, 2) Revenues, 3) Transfers In, 4) Transfers Out, 5) Subrecipient and 6) SEFA Inflow/(Outflow) report. G.6.a. Expenditures Report This report displays total expenditures of federal awards by CFDA number. Total expenditures result from adding direct expenditures together with amounts passed-through to subrecipients. The total amount reported for "Pass-through to Subrecipients" must equal the detailed information reported on the "Subrecipient" report. In addition, this report displays whether expenditures resulted from a direct award (received by the agency directly from a federal agency) or from an indirect award (received by the agency as a subrecipient from a non-federal entity). G.6.b. Revenues Report This report includes all federal revenues that have been received by agencies, whether received directly from a federal agency or indirectly from another organization. Revenues are displayed by CFDA number and by grantor, with direct awards and indirect awards reported separately. It is important that the source of the award received be considered. Money that originally came from the federal government continues to be federal funds until spent on the actual federal program. Thus, federal awards need to be reported as such even if the awards have passed through numerous different organizations. Federal awards received from another state agency as pass-through should not be recorded as federal revenue; instead, the money should be recorded as a transfer in. G.6.c. Transfers In Report This report displays federal money that was transferred in to one state agency from another state agency. If the source of the money is federal, the transfer should be accounted for and associated with a CFDA number, regardless of whether it is budgeted as a transfer of federal or other funds. Please be sure the sending agency records a transfer out for the same amount and uses the same CFDA number. G.6.d. Transfers Out Report This report displays federal money that was transferred out from one state agency and sent to another state agency. If the source of the money is federal, the transfer should be accounted for and associated with a CFDA number, regardless of whether it is budgeted as a transfer of federal or other funds. Please be sure the receiving agency records a transfer in for the same amount and uses the same CFDA number. Chapter G – Schedule of Expenditures of Federal Awards G-5 G.6.e. Subrecipient Report This report includes federal awards that were distributed (passed through) to a subrecipient organization by CFDA number. This detail report showing “Total Amount Passed Through” must agree to the amount reported in total as “Pass Through to Subrecipients” on the expenditures report. Another state agency is not considered a subrecipient organization; federal awards passed through to another state agency should be recorded as transfers out. G.6.f. SEFA Inflow/(Outflow) Report This report summarizes all previous reports (a. - e.) and provides a net inflow/(outflow) amount sorted by CFDA, grant number, and PCA. This report is a tool for agencies to review their federal data in detail. G.6.g. Using the SEFA Reports At fiscal year end, agencies will use the SEFA reports to transmit SEFA information to SARS. Each agency is responsible to run reports for their agency, review the reports for accuracy, and transmit the information to SARS. After the close of Month 13, agencies will send to SARS a file with results saved. Below are instructions for using the SEFA reports on the Datamart Repository. 1. To access the SEFA reporting queries, open Hyperion Intelligence (formerly Brio). Click Cancel if you get a dialog box to open files or an OCE. 2. Select File > Open from Repository > Select. Select the OCE that connects to the repository. Note: Instructions to set up an OCE, which includes the repository connection along with the regular Datamart are at http://egov.oregon.gov/DAS/SCD/SARS/datamart.shtml 3. In this example, the OCE is called “Repository”. Your OCE name may be different. You should see a screen similar to the following: 4. Select Open. Enter your Datamart login (if needed) and password. You should see a screen similar to the following: Chapter G – Schedule of Expenditures of Federal Awards G-6 If your OCE is set up to go directly to the “YEAREND” directory, you might see something similar to the following: Skip to step 6. 5. Click on the next to “YEAREND”. Your screen should look like the following: next to “Standard Query with Reports”. Your screen should look like the 6. Click on the following (again this may be somewhat different depending on your OCE setup; you may not see anything but the three folders “Data Model”, “Standard Query” and “Standard Query with Reports”): Chapter G – Schedule of Expenditures of Federal Awards G-7 Scroll down until you see the file “SEFA Reports”. Select it and click Open. 7. The SEFA reports query should now be open in Hyperion Intelligence. The opening screen looks like the following and contains helpful federal links at the bottom of the page: 8. Input your Agency, RACF ID and Password in the indicated boxes. You must tab or click between the boxes. Hitting Enter will cause unexpected results. Then, click on the Process button, which processes the queries to populate the SEFA reports. 9. After the queries have processed, simply select from the dropdown box on the initial page to access the reports available in the query file. Click on the name of the report desired. The available reports are listed below. These reports are designed to pull data based on the use of Grant Profiles and the application of standard accounting as outlined in OAM 15.42.00 on Federal Grants. Please note that if your agency is not using the required profiles or is not following the standard accounting treatment, the reports will not be accurate. If data is missing, review your accounting processes related to federal grants and make corrections as needed. a. Expenditures Report: Reports expenditures as direct or distributions to subrecipients and identifies direct and indirect award expenditures. Chapter G – Schedule of Expenditures of Federal Awards G-8 b. Revenues Report: Reports federal revenues by CFDA number and separately identifies direct awards versus indirect awards (received as a subrecipient). c. Transfers In Report: Reports any federal grant monies that have been transferred in to your agency from another agency. d. Transfers Out Report: Reports any federal grant monies that have been transferred out from your agency to another agency. e. Subrecipient Report: Reports distributions to subrecipients by CFDA number. This detail report should match to the amount reported in total as Pass-through to Subrecipients on the Expenditures report. f. SEFA Inflow/(Outflow) Report: Summarizes all inflow and outflow of federal funds, sorted by CFDA number, grant number and Pca. 10. Clicking on the report in the list will take you to the selected report. The example below shows the Expenditures report. Chapter G – Schedule of Expenditures of Federal Awards G-9 Click Either Icon to return to the Main page 11. To return to the main page, click on the arrow or the “home” button as indicated above. 12. To save the file with results, select File > Save Options > Save Query Results With Document. A popup menu will appear, and you need to check all "query results" and "computed columns" boxes, then click ok. Then select File > Save As and select the appropriate directory to save. The file will save results and calculated fields. 13. Review the results in your agency’s SEFA repository reports for accuracy and completeness. Send the file (with results saved) as an attachment in an e-mail to your SARS analyst, along with the Transmittal of SEFA Disclosures and Agency Certification form. G.6.h. Making Corrections to SEFA Information Upon review of the SEFA repository reports, an agency may discover that the information transmitted to SARS through the reports is inaccurate or incomplete. When this occurs, agencies use the Excel “Corrections” spreadsheet, which is sent to agencies in mid-July, to make corrections to information already transmitted to SARS. Indicating the amount originally reported, as well as the corrected amount, assures the intended correction is made. In addition, this process provides documentation of changes to initial data for the Statewide Single Audit. If corrections are needed, indicate the corrections, and return the completed spreadsheet to SARS as an e-mail attachment. G.6.i. Alternative (Manual) SEFA Reporting Process Agencies that interface transactions to R*STARS and are not using the federal grant profiles as well as agencies that are not on R*STARS (such as the Oregon University System) will transmit their SEFA information to SARS at year end using Excel spreadsheets. These spreadsheets will be provided to applicable agencies by SARS. Agencies will complete the spreadsheets and transmit them to SARS as an e-mail attachment. This information will be compiled together with data transmitted by other agencies through the Datamart Repository reports and incorporated into the statewide Schedule of Expenditures of Federal Awards. An agency needs to have approval from SARS in order to use this alternative process. Chapter G – Schedule of Expenditures of Federal Awards G - 10 G.6.j. SEFA Disclosure Forms Agencies that receive federal awards need to complete the year end SEFA disclosure forms and transmit them to SARS by the due date. This information is incorporated into the note disclosures that accompany the Schedule of Expenditures of Federal Awards. See section G.8. for examples of disclosure forms. G.7. Definitions of Relevant Terms Amount Received: The amount of federal funds that one state agency received from another state agency as reported on the Transfers In report. This amount needs to agree with the amount the other agency reported on their Transfers Out report. Amount Sent: The amount of federal funds that one state agency sent to another state agency as reported on the Transfers Out report. This amount needs to agree with the amount the other agency reported on their Transfers In report. Award Contract Number: When no CFDA number exists for a federal program, the award contract number field in R*STARS must be used as an identifying number for SEFA reporting. CFDA Number (Grant Category): Catalog of Federal Domestic Assistance identification number. This is a five-digit number with the first two digits identifying the federal agency and the last three identifying the specific agency program. (A complete list of CFDA numbers and information on each program can be found on the Internet at www.cfda.gov.) Direct Awards: Awards of federal financial assistance received directly from a federal agency. Direct Expenditures: The amount of federal awards expended directly by the agency (e.g., paid to a vendor) in order to carry out a federal program. This amount does not include distributions to subrecipients. Expenditures Total: Total of direct expenditures made to vendors and distributions of funds passedthrough to subrecipient organizations. Federal Award: Federal financial assistance and federal cost-reimbursement contracts that nonfederal entities receive directly from federal awarding agencies or indirectly from pass-through entities. It does not include procurement contracts (under grants or contracts) that the federal government uses to buy goods or services from a state agency in a vendor capacity. Indirect Awards: Awards of federal financial assistance that an agency received as a subrecipient of another organization, which could be another government or non-profit organization. A state agency may receive a portion of a federal grant from some other entity that has contracted with the agency to provide services related to the grant. For example, Harvard University receives a federal grant to study sun exposure. Harvard University then passes through a portion of that federal grant to a state agency to conduct a study of sun exposure in the Northwest. Nonfederal Entity: A state, local government, or non-profit organization. Pass-through Entity: A nonfederal entity that provides a federal award to a subrecipient to carry out a federal program. Pass-Through to Subrecipients: The amount that a state agency passed through to an organization that meets the definition of a subrecipient organization (not a vendor). Chapter G – Schedule of Expenditures of Federal Awards G - 11 Receiving Agency: The agency number of the state agency that received a transfer of federal funds from another state agency. Recipient: A nonfederal entity that expends federal awards received directly from a federal awarding agency to carry out a federal program. Sending Agency: The agency number of the state agency that transferred federal funds to another state agency. State Agencies: See CAFR Contacts list at http://egov.oregon.gov/DAS/SCD/SARS/index.shtml. Subrecipient: A nonfederal entity that expends federal awards received from a pass-through entity to carry out a federal program but does not include an individual who is a beneficiary of such a program. A subrecipient may also be a recipient of other federal awards directly from a federal awarding agency. For purposes of reporting distributions of federal awards in the Oregon SEFA, a subrecipient is not a state agency. Subrecipient Tax ID Number: Tax identification number for the organization receiving the passthrough assistance. This must be a valid Tax Identification Number. Total Amount Passed Through: The total amount passed through to a subrecipient organization. Vendor: A dealer, distributor, merchant or other seller providing goods or services which are required for the conduct of a federal program. These goods or services may be an organization's own or for the use of beneficiaries of the federal program. Chapter G – Schedule of Expenditures of Federal Awards G - 12 G.8. Example SEFA Disclosure Forms Agency No.: Instructions: Your agency’s information on the attached disclosure forms is reviewed by SARS and incorporated into the notes to the Schedule of Expenditures of Federal Awards (SEFA). For the year ended June 30, 2008, please complete the attached disclosure forms that apply to your agency. For any disclosures that do not apply to your agency, check the N/A box below for “not applicable”. Please return your completed SEFA disclosures to SARS by August 29, 2008. If you have any questions, you can reach your SARS analyst at 503-373-7277. DISCLOSURE CHECKLIST N/A 1. Loans and Loan Guarantees 2. Federal Noncash Assistance 1. LOANS AND LOAN GUARANTEES If your agency makes loans with federal funds, please complete the following: Catalog of Federal Domestic Assistance (CFDA) program number: Program title or description: Dollar amount of new loans made (distributed) during the fiscal year: Any interest subsidy, cash, or administrative cost allowance received: Does the program have continuing compliance requirements?* The balance of loans made (distributed) in previous years that are outstanding (not repaid) at year end for which the federal government imposes continuing compliance requirements: The amount of outstanding balance, from the above question, that is included in the SEFA: Yes . No *OMB Circular A-133 does not specifically define “continuing compliance requirements”. The Compliance Supplement often has that information for specific programs. For example, if in a prior year the proceeds of the federal loan were expended to construct a building, and the current year activity consists only of loan repayments and a requirement by the federal lender to submit a report that only details loan repayment information, it may not be necessary to include the prior year’s loan balance. However, if the federal lender requires that, on an on-going basis, a certain percentage of the building is rented to low-income residents, it would likely be necessary to include the prior year’s loan balance in determining the total amount of loans expended. If uncertain, contact the federal awarding agency. Chapter G – Schedule of Expenditures of Federal Awards G - 13 Agency No.: 0 2. FEDERAL NONCASH ASSISTANCE If your agency issues federal noncash assistance in the form of free rent, food commodities, donated property, or donated surplus property, please complete the following for each type of noncash assistance: Catalog of Federal Domestic Assistance (CFDA) program number: Program title or description: Type of Assistance: Inflow: Direct amount of value received during the fiscal year: Indirect amount of value received during the fiscal year: Total (direct plus indirect) amount of value received during the fiscal year: **Pass-through Organization (Non-federal): Pass-through ID: Transfer In: Outflow: Direct amount of value distributed during the fiscal year: Indirect (Subrecipient) amount of value distributed during the fiscal year: Total (direct plus indirect) amount of value distributed during the fiscal year: **Subrecipient Organization: Subrecipient Tax ID: Transfer Out: How was the value determined? Fair market value at time of receipt or; Assessed value provided by the federal agency **If there are multiple organizations, please attach an Excel spreadsheet with amounts listed for each organization and the ID for each organization. Note: If using the SEFA Repository reports for federal reporting, it is not necessary to send in a correction form to include the above federal Noncash Assistance information in the Schedule of Expenditures of Federal Awards. . Chapter G – Schedule of Expenditures of Federal Awards G - 14 This page intentionally left blank. CHAPTER H FORMS H.1. Request to Update CAFR Contact List Purpose of CAFR Contact List: Statewide Accounting and Reporting Services (SARS) maintains a statewide listing of CAFR contacts by agency. This list includes the agency accountant responsible for year end closing and reporting, as well as contact information such as phone, fax, and statewide e-mail address. Also, included are the SARS analyst and SFMS analyst assigned to support each agency. The CAFR contact list facilitates communications between state agencies and SARS during the year and especially during year end closing. This form is also used to obtain the agency’s contact person for SEFA (Schedule of Expenditures of Federal Awards) reporting. Instructions: Please complete the form below and return it to: Department of Administrative Services State Controller’s Division Statewide Accounting and Reporting Services 155 Cottage Street NE, U50 Salem OR 97301-3969 ************************************************************************************************************ Agency Number: _____________________________________________________________ Agency Name: _______________________________________________________________ CAFR Contact Name: _________________________________________________________ Telephone Number: _______________________ FAX Number: _______________________ Connected to State WAN E-mail: Yes No Internet e-mail address (if applicable): ____________________________________________ ************************************************************************************************************ SEFA Contact Name:__________________________________________________________ Telephone Number: _______________________ FAX Number: ________________________ Connected to State WAN E-mail: Yes No Internet e-mail address (if applicable): ____________________________________________ If you have any questions, please call SCD administrative support at (503) 378-3156, extension 273. If you wish to fax the above information, our fax number is (503) 378-3514. Chapter H – Forms H-1 H.2. Suggestions for Improving Year End Closing Department of Administrative Services State Controller’s Division Statewide Accounting and Reporting Services Suggestions for Improving Year End Closing As with many of our business processes, SARS is continually seeking ways to improve the year end closing process. We realize that one of the best approaches to improving the year end closing process is to find ways to make it more efficient, based on input from you. Do you have ideas about how the year end closing process can be improved or streamlined? For example, can the checklists, disclosure forms, or agency guide be made more useful and understandable, or are there transaction codes that need to be added to R*STARS? If you have ideas on how the year end closing process might be improved, we would like to know. Please complete this suggestion form and return it to SARS. Suggestion by: _________________________________________ Agency:____________ Phone: _______________________________________________ Date: ______________ Suggestion(s) for improving year end closing (please be specific): __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ Chapter H – Forms H-2 Statewide Financial Reporting Transmittal of CAFR Disclosures and Agency Certification To: From: Statewide Accounting and Reporting Services (SARS) _______________ Agency No. _______________________________________________ Agency Name For: Fiscal Year Ended June 30, ________ 1. The following checked items are transmitted with this certification: [ ] CAFR General Disclosures [ ] CAFR Debt Disclosures 2. Agency Certification of Accuracy and Completeness I certify that to the best of my knowledge the transmitted information accurately and completely reflects the agency’s financial activities for the fiscal year noted above, and that this information agrees with the ending account balances in the agency’s financial accounting system. In addition, I certify that to the best of my knowledge the agency’s financial activity is accurately and completely reflected in the agency’s financial accounting system in conformity with generally accepted accounting principles and legal requirements. Any differences between the balances reported in the transmitted disclosures and the agency's financial accounting system have been communicated in writing to the agency’s SARS analyst. ____________________________________ CAFR Accountant ____________ Date ____________________________________ Chief Fiscal Officer or Director ____________ Date Chapter H – Forms H-3 Transmittal of SEFA Disclosures and Agency Certification To: From: Agency No. For: Agency Name Statewide Accounting and Reporting Services (SARS) Fiscal Year Ended June 30, 1. The following checked items are transmitted with this certification: SEFA Disclosures Schedule of Expenditures of Federal Awards and Subrecipient Schedules Total Federal Revenues: Total Federal Transfers In: Total Federal Transfers Out: Total Federal Expenditures: Total Distributions to Subrecipients: 2. Agency Certification of Accuracy and Completeness I certify that to the best of my knowledge the transmitted information accurately and completely reflects the agency’s financial activities for the fiscal year noted above, and that this information agrees with the ending account balances in the agency’s financial accounting system. In addition, I certify that to the best of my knowledge the agency’s financial activity is accurately and completely reflected in the agency’s financial accounting system in conformity with generally accepted accounting principles and legal requirements. Any differences between the balances reported in the transmitted information and the agency's financial accounting system have been communicated in writing to the agency’s SARS analyst. SEFA Contact Date Chief Fiscal Officer or Director Date Chapter H – Forms H-4 H.5. Accounting Estimate Worksheet For the Year Ended June 30, ____ Prepared by: _________________________ Purpose: __________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ Account Name: _____________________________________________________________ Prior year balance: Factors affecting current year balance: +/- inflation +/- natural disaster +/- legislation +/- general economic conditions +/- past experiences +/- age of outstanding account balances +/- other factors/trends Current year estimate: $______________ _______________ _______________ _______________ _______________ _______________ _______________ _______________ $______________ T-code used to record entry: _______________ D23 Fund in which entry was recorded: ______________ Chapter H – Forms H-5 CHAPTER I APPENDIX I. GAAP Offset Transactions TABLE OF CONTENTS Capital Asset Transactions Proprietary, Fiduciary & Government-wide Reporting Fund TC 537: Eliminate Excess Asset Value/Record Loss; Record Donated Asset................................. I-1 TC 542: Accumulated Depreciation/Amortization............................................................................. I-2 TC 545: Capital Asset Acquisition/Adjustment; Construction in Progress Adjustment .................... I-3 Receivables Transactions Governmental Funds TC 144: Collection of a Noncurrent Receivable-Loan ...................................................................... I-5 TC 471: Establish/Adjust Noncurrent Receivable-Loans ................................................................. I-5 TC 477: Establish/Adjust Advance To Other Funds/Agencies ......................................................... I-6 TC 478: Adjust Advance To Other Funds/Agencies for Repayment ................................................ I-7 Proprietary & Fiduciary Funds TC 142: Collection of Loan/Note/Mortgage/Contract/Tax/or Other Receivable-Noncurrent............................................................................................. I-8 TC 289: Voucher Payable-Loan Receivable/Payable ...................................................................... I-8 TC 298: Expenditure Transfer Paid to LGIP Receivable/Payable.................................................... I-9 TC 446: Establish/Adjust Advance To Other Funds/Agencies ...................................................... I-10 TC 447: Adjust Advance To Other Funds/Agencies for Repayment ............................................. I-11 TC 461: Establish/Adjust Loans/Notes/Mortgages/Contracts/ State-owned Property/Taxes Receivable-Noncurrent ..................................................... I-12 TC 462: Establish/Adjust Noncurrent Liability or Receivable ......................................................... I-13 TC 463: Charge Miscellaneous Revenue to a Noncurrent Receivable .......................................... I-14 TC 571: Rev/Cash w/Bank - Establish/Adjust Noncurrent Liability & Noncurrent Receivable ....... I-14 Liabilities Transactions (No Bonds/COPS) Governmental Funds TC 482: Establish Advance From Other Funds/Agencies.............................................................. I-16 TC 484: Adjust Advance From Other Funds/Agencies for Repayment.......................................... I-16 Proprietary & Fiduciary Funds TC 448: Establish/Adjust Advance from Other Funds/Agencies .................................................... I-18 TC 449: Adjust Advance from Other Funds/Agencies for Repayment ........................................... I-18 Proprietary, Fiduciary & Government-wide Reporting Fund TC 457: Establish/Adjust Other Noncurrent Liabilities ................................................................... I-20 TC 459: Reduce Capital Lease Liability ........................................................................................ I-20 Bond/COP Transactions Proprietary, Fiduciary & Government-wide Reporting Funds TC 504: To Establish/Adjust a payable for Bonds, COPs, or TANs ............................................... I-21 TC 514: Establish Underwriter’s Discounts/Deferred Charges on Bonds/COP ............................. I-22 TC 516: Write Off Various Bond/COP Costs ................................................................................. I-23 TC 517: Write Off Original Premium on Bonds or COPs................................................................ I-23 TC 520: Amortize Original/Underwriter’s Discounts/Costs of Issuance, Deferred Charges for Bonds or COPs ............................................................................................ I-24 i TC 523: Amortize Original Premium on Bonds or COPs ............................................................... I-25 TC 524: Establish/Adjust Accreted Interest Payable on Bonds/COPs .......................................... I-25 TC 526: Establish/Adjust Arbitrage Rebate Payable .................................................................... I-26 TC 528: Reduce Liability for Principal/Advance Refunding of Bonds/COPs .................................. I-26 TC 558: Expend/Cash w/Bank/Reduce Liability Proprietary/Fiduciary/Govt Wide......................... I-27 Other Miscellaneous Transactions TC 440: Record/Adjust Short-Term Vacation Payable - All Fund Types........................................ I-29 TC 442: Record/Adjust Noncurrent Vacation Payable - Prop/Fid/Gov’t-wide ................................ I-29 TC 487: Amortize Investment Premium/Discount or Adjust Valuation Account for Fair Value - Gov’t/Prop/Fid.......................................................................................... I-30 Governmental Funds TC 503: Record/Adjust Inventory .................................................................................................. I-31 TC 515: Record/Adjust Prepaid Items............................................................................................ I-31 TC 565: Establish/Adjust Cash on Hand ........................................................................................ I-32 TC 781: Expenditure Transfer Out for Prepaid Legal Fees............................................................ I-32 TC 782: Revenue Transfer In for Prepaid Legal Fees ................................................................... I-33 Proprietary & Fiduciary Funds TC 194: Establish/Adjust Cash on Hand ........................................................................................ I-34 TC 500: Record Prepaid Expense/Deferred Charges/Inventories ................................................. I-34 TC 779: Expense Transfer Out for Prepaid Legal Fees ................................................................. I-35 TC 780: Revenue Transfer In for Prepaid Legal Fees ................................................................... I-35 Deferred Revenue Transactions Governmental, Proprietary & Fiduciary Funds TC 164: Receipt of Deferred Revenue-No Document Support ...................................................... I-37 TC 170: Receipt of Deferred Revenue-Document Supported........................................................ I-37 TC 443: Move Deferred Revenue/Cash Out .................................................................................. I-38 TC 444: Move Deferred Revenue/Cash In ..................................................................................... I-39 TC 492: Recognize Earned Portion of Deferred Revenue-No Document Support ........................ I-39 TC 493: Recognize Earned Portion of Deferred Revenue-Document Supported .......................... I-40 Prior Period Adjustments TC 113: Prior Period Adjustment/Revenue .................................................................................... I-41 TC 114: Prior Period Adjustment/Expenditure .............................................................................. I-41 TC 119: Prior Period Adjustment/Expenditure for Distributions to State Agencies ....................... I-42 TC 124: Prior Period Adjustment/Transfers In ............................................................................... I-43 TC 125: Prior Period Adjustment/Transfers Out............................................................................. I-43 Financial Statement Entries TC 906: Estimated Accounts Payable Accrual (for Revenue Refund) ........................................... I-45 TC 908: Reclassify Revenue to Deposit Liability; Record Securities Lending Income................... I-45 TC 909: Reclassify Expenditure to Deposit Liability; Record Securities Lending Expense............ I-46 TC 915: Accrue Due from Other Funds Within Agency.................................................................. I-46 TC 938: Reclassify Expenditure to Deposit Liability for Distributions to State Agencies................ I-47 ii This page intentionally left blank. CAPITAL ASSET TRANSACTIONS TC 537: Eliminate Excess Asset Value/Record Loss; Record Donated Asset Proprietary, Fiduciary and Government-wide Reporting Funds Usage: To remove asset value greater than accumulated depreciation (book value) against Gain/Loss revenue account. Use transaction codes 529-535, 538, 539, 543, 544, 551-553, or 557 to remove the asset balance equal to the accumulated depreciation. If the asset is sold, transaction codes 537 and 149 (Cash Receipts on Sale of Asset) determine the net gain or loss on disposal. The GAAP Revenue Offset eliminates that portion of gain (loss) recorded with T-code 149 that doesn’t represent a true gain or loss. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: At the time the asset is disposed of (sold, scrapped or surplus) Transaction: DR 3018 Invested in Capital Assets DR 3200 GAAP Revenue Offset Requires Comptroller Object 2330 Gain (Loss) on Disposition of Assets 2400 Contributions to Permanent Funds 2550 Capital Contributions CR 3074 Change in Capital Assets CR General Ledger Account Required: 0811 Works of Art and Historical Treasures-no depreciation 0812 Works of Art and Historical Treasures- depreciated 0815 Equipment and Machinery 0816 Motor Vehicles 0817 Data Processing Software 0818 Data Processing Hardware 0840 State Highways 0841 Other Roads 0842 Tunnels and Bridges 0843 Airports 0844 Utility Systems 0845 Docks, Dikes, and Dams 0850 Land 0852 Buildings and Building Improvements 0856 Land Improvements 0861 Construction in Progress 0862 Leasehold Improvements 0863 Capital Leased Property Related Transactions: TC 149: Cash receipts from the sale of capital assets TC 529: Fixed Asset Disposition/Adjustment - Motor Vehicles TC 530: Fixed Asset Disposition/Adjustment - Buildings and Improvements TC 531: Fixed Asset Disposition/Adjustment - Land Improvements TC 532: Fixed Asset Disposition/Adjustment - Data Processing Software TC 533: Fixed Asset Disposition/Adjustment - Equipment and Machinery TC 534: Fixed Asset Disposition/Adjustment - Leasehold Improvements Chapter I – Capital Asset Transactions I-1 TC 535: TC 538: TC 539: TC 543: TC 544: TC 551: TC 552: TC 553: TC 557: Fixed Asset Disposition/Adjustment - Capital Leased Property Fixed Asset Disposition/Adjustment - Data Processing Hardware Fixed Asset Disposition/Adjustment - Works of Art and Historical Treasures Fixed Asset Disposition/Adjustment - State Highways Fixed Asset Disposition/Adjustment - Tunnels and Bridges Fixed Asset Disposition/Adjustment - Airports Fixed Asset Disposition/Adjustment - Utility Systems Fixed Asset Disposition/Adjustment - Docks, Dikes, and Dams Fixed Asset Disposition/Adjustment - Other Roads TC 542: Accumulated Depreciation/Amortization-Proprietary, Fiduciary and Government-wide Reporting Funds Usage: To record depreciation or amortization of capital assets in a proprietary, fiduciary or government-wide reporting fund. This entry records an expense for GAAP purposes with an offset to accumulated depreciation or amortization. This transaction does not affect budgetary expenses (does not appear on non-GAAP operating statements). Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: Monthly, or at least once a year (Month13 is the most appropriate period to record this). Transaction: DR 3600 GAAP Expenditure Offset Requires Comptroller Object (see credit for correct object - shown in italics) DR 3018 Invested in Capital Assets CR 3074 Change in Capital Assets CR Requires Comptroller General Ledger Account below: 0867 Accum Depreciation - Land Improvements (7476 Depreciation Expense) 0868 Accum Amortization - Data Processing Software (7478 Amortization Expense - Software) 0869 Accum Depreciation - Equipment and Machinery (7476 Depreciation Expense) 0870 Accum Amortization - Leasehold Improvements (7475 Amortization of Leasehold Improvements) 0871 Accum Amortization - Capital Leased Property (7477 Amortization of Leased Property) 0872 Accum Depreciation - Motor Vehicles (7476 Depreciation Expense) 0873 Accum Depreciation - Data Processing Hardware (7476 Depreciation Expense) 0875 Accum Depreciation - Buildings and Bldg Improvements (7476 Depreciation Expense) 0876 Accum Depreciation - Art and Historical Treasures (7476 Depreciation Expense) 0880 Accum Depreciation - State Highways (7476 Depreciation Expense) Chapter I – Capital Asset Transactions I-2 0881 0882 0883 0884 0885 Accum Depreciation - Tunnels and Bridges (7476 Depreciation Expense) Accum Depreciation – Airports (7476 Depreciation Expense) Accum Depreciation - Utility Systems (7476 Depreciation Expense) Accum Depreciation - Docks, Dikes, and Dams (7476 Depreciation Expense) Accum Depreciation - Other Roads (7476 Depreciation Expense) Related Transactions: N O N E TC 545: Capital Asset Acquisition and Adjustment; Construction in Progress Adjustment; Capital Asset Impairment - Proprietary, Fiduciary and Governmentwide Reporting Funds Usage: To record the purchase, increase or adjustment of an asset in a proprietary, fiduciary or government-wide reporting fund. Also to capitalize or adjust the balance of Construction in Progress. (Do not use this T-Code to move capitalized Construction in Progress to the appropriate capital asset account; use T-Code 540.) The effect of this entry is to capitalize costs of capital assets or incomplete construction. For GAAP financial statement purposes, the GAAP Expenditure Offset eliminates the capital outlay expenditures or the expenses of capital construction paid during the fiscal year. Use T-Code 545R to record impairment loss. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: Monthly, quarterly, or at least once a year. It is recommended that entries be made quarterly in keeping with the schedule of agency reconciliation of capital asset additions to capital outlay. If there is incomplete construction at the end of the year, there will certainly be an entry in month 13, as information for month 12 will not be available until after close. Transaction: DR 3074 Change in Capital Assets DR Requires Comptroller General Ledger Account-see below: 0811 0812 0815 Works of Art and Historical Treasures - no depreciation Works of Art and Historical Treasures - depreciation (5120/5125 Works of Art & Historical Treasures) Equipment and Machinery (5100/5105 Office Furniture and Fixtures) (5150/5155 Equipment and Machinery) (5200-5205 Telecommunications) (5250/5255 Technical Equipment) (5400/5405 Household and Institutional Equipment) (5450/5455 Industrial and Heavy Equipment) (5500/5505 Aircraft) (5600/5605 Agricultural Equipment and Machinery) I-3 Chapter I – Capital Asset Transactions CR CR (5905 Other Capital Outlay) Motor Vehicles (5170/5175 Motor Vehicles) 0817 Data Processing Software (5300-5305 Data Processing Software) 0818 Data Processing Hardware (5350-5355 Data Processing Hardware) 0840 State Highways (5925 State Highways) 0841 Other Roads (5935 Other Roads) 0842 Tunnels and Bridges (5945 Tunnels and Bridges) 0843 Airports (5955 Airports) 0844 Utility Systems (5965 Utility Systems) 0845 Docks, Dikes, and Dams (5975 Docks, Dikes, and Dams) 0850 Land (5730 Land) 0852 Buildings and Building Improvements (5805 Buildings and Improvements) 0856 Land Improvements (5705 Land Improvement) 0861 Construction in Progress (Expenditure comptroller objects 3111-5999, 6201-7415, 7510 or 7511 could have entries made against them in this T-Code, as varied expenditure objects could be used for recording costs of a state-built project) 0862 Leasehold Improvements (5755 Leasehold Improvements) 0863 Capital Leased Property (5770/5775 Capital Leased Property) 3018 Invested in Capital Assets 3600 GAAP Expenditure Offset Requires Comptroller Object (See Debit for usual object - shown in Italics) (Expenditure comptroller objects 3111-5999, 6201-7415, 7510 or 7511 could have entries made against them in this T-Code, as varied expenditure objects could be used for recording costs of a state-built project) (Comptroller object for Gain or Loss on Capital Asset Impairment is 7510.) 0816 Related Transactions: TC 540: Move Construction in Progress to capital asset account TC 900/901: Capital assets transferred between funds/agencies Chapter I – Capital Asset Transactions I-4 This page intentionally left blank. RECEIVABLES TRANSACTIONS Governmental Funds TC 144: Collection of a Noncurrent Receivable - Loan - Governmental Funds Usage: To record a payment received on a noncurrent loan receivable that was established with TC 471 in a governmental fund. This transaction adjusts both the receivable and the reserve accounts. Loan repayment revenue is reported for budgetary purposes. For financial statement purposes, the GAAP Revenue Offset eliminates the revenue. Affects: Trial Balance, Budgetary and GAAP Operating Statements Record on R*STARS: When loan repayment is received (this is the proper cash receipt transaction code for this type of transaction). Transaction: DR 2998 Reserved for Loans Receivable DR 0065 Unreconciled Deposit DR 3200 GAAP Revenue Offset CR 0931 Loans Receivable CR 3100 Revenue Control - Cash CR 3075 Change in Reserves Requires Comptroller Object: 1101 Housing Division Loan Repayments 1102 Veterans’ Loan Repayments 1103 Senior Citizen Property Tax Repayments 1104 Other Loan Repayments Related Transactions: TC 471: To Establish/Adjust Noncurrent Receivable - Loans in governmental funds. TC 141: Collection of a Noncurrent Receivable - Other/Mortgage/Note/Contract/Tax established with TC 460 in a governmental fund. TC 455: To write off an uncollectible noncurrent loan receivable. An allowance account has already been established. Note that T-codes 471 and 141 are for use in governmental funds only. TC 471: Establish/Adjust Noncurrent Receivable - Loans Usage: To record or adjust a noncurrent loan receivable in a governmental fund. For financial reporting purposes, the GAAP offset eliminates the expenditure that was recorded when the loan was originally disbursed. Use T-code 471R and GL 0936 to record an allowance for uncollectible amounts. Affects: Trial Balance and GAAP Operating Statements Chapter I – Receivables Transactions I-5 Record in R*STARS: The receivable should be recorded when the loan is issued. Allowance for uncollectibles should be recorded at least once a year. Month 13 would be an appropriate period for this. Transaction: DR 3075 Change in Reserves DR Requires Comptroller General Ledger Account: 0931 Loans Receivable 0936 Allowance for Uncollectible-Noncurrent-Loan Receivable CR 2998 Reserved for Loans Receivable CR 3600 GAAP Expenditure Offset Requires Comptroller Object A Comptroller expenditure object within the range of 3111-5999 or 6201-7415 may be used; however, the object used when the loan was originally disbursed should be used here. Please consider using a Loans Made object to disburse the loan. Those Comptroller objects are 6850, 6870, and 6875. Related Transactions: TC 144: Collection on Noncurrent Receivable - Loans TC 455: To Write Off Uncollectible Noncurrent Loan Receivable TC 460: Establish/Adjust a Noncurrent Receivable Other/Mortgage/Note/Contract/Tax TC 467: To Write Off Uncollectible Noncurrent Receivable - Taxes Note that T-codes 471, 144 and 460 are for use in governmental funds only. TC 477: Establish/Adjust Advance To Other Funds/Agencies - Governmental Funds Usage: To establish or adjust a long-term advance receivable to another fund or agency in a governmental fund. Payment of the advance by the agency would be initiated using transaction codes 722/723. The GAAP Expenditure Offset eliminates the expenditure (that was recorded with T-code 722) for financial statement purposes. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: When advance is issued via TC 722. Transaction: DR 0950 Advances To Other Funds/Agencies DR 3075 Change in Reserves Agency General Ledger Account Required: Format: 8 characters XXX Agency owing on Advance XXXX Fund in Agency owing on Advance 0 (zero) Filler CR 3002 Reserved for Advances To Other Funds/Agencies CR 3600 GAAP Expenditure Offset Requires Comptroller Object: Chapter I – Receivables Transactions I-6 6870 6875 Loans Made to State Agencies Loans Made – Other Related Transactions (for governmental funds only): TC 478: Adjust Advance To Other Funds/Agencies for Repayment TC 482/483: Establish/Adjust Advance From Other Funds/Agencies TC 484/485: Adjust Advance From Other Funds/Agencies for Repayment TC 478: Adjust Advance To Other Funds/Agencies for Repayment - Governmental Funds Usage: To adjust a long-term advance to another fund or agency in a governmental fund to reflect a repayment received; original advance was recorded with TC 477. Repayment of advance by the other agency would be initiated using transaction codes 722/723. For financial reporting purposes, the GAAP Revenue Offset eliminates revenue that was initially recorded with T-code 723 when the payment was received. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: When loan repayment is received via TC 723. Transaction: DR 3002 Reserved for Advance To Other Funds/Agencies DR 3200 GAAP Revenue Offset Requires Comptroller Object: 1100 Other Program Loan Repayments 1101 Housing Division Loan Repayments 1102 Veterans’ Loan Repayments 1103 Senior Citizen Property Tax Repayments 1104 Other Loan Repayments (most agencies will use this account) CR 0950 Advances To Other Funds/Agencies CR 3075 Change in Reserves Agency General Ledger Account Required: Format: 8 characters XXX Agency owing on Advance XXXX Fund in Agency owing on Advance 0 (zero) Filler Related Transactions (for governmental funds only): TC 477: Establish or Adjust Advance To Other Funds/Agencies TC 482/483: Establish or Adjust Advance From Other Funds/Agencies TC 484/485: Adjust Advance From Other Funds/Agencies for Repayment Chapter I – Receivables Transactions I-7 Proprietary & Fiduciary Funds TC 142: Collection of Loan/Note/Mortgage/Contract/Tax Receivable - NoncurrentProprietary and Fiduciary Funds Usage: To record a payment received on a noncurrent receivable that was established with a TC 461 in a proprietary or fiduciary fund. This transaction records the receipt of cash and reduces the long-term receivable. For budgetary purposes this transaction records a credit to revenue (loan repayments). For financial statement purposes, the GAAP Revenue Offset eliminates the revenue. Affects: Trial Balance, Budgetary and GAAP Operating Statements Record on R*STARS: When loan repayment is received (this is the proper cash receipt transaction code for this type of transaction). Transaction: DR 0065 Unreconciled Deposit DR 3200 GAAP Revenue Offset Requires Comptroller Object: 1101 Housing Division Loan Repayments 1102 Veterans’ Loan Repayments 1103 Senior Citizen Property Tax Repayments 1104 Other Loan Repayments CR Requires Comptroller General Ledger Account: 0420 Taxes Receivable-Noncurrent 0927 Investment in State Owned Property 0930 Notes Receivable-Noncurrent 0931 Loans Receivable 0932 Contracts Receivable 0933 Mortgage Receivable 0935 Other Receivables – Noncurrent CR 3100 Revenue Control - Cash See account 3200 above for comptroller objects Related Transactions: TC 461: Establish or Adjust Loans/Mortgages/Contracts/SOP/Taxes RecNoncurrent-proprietary and fiduciary funds TC 445: Write off of Uncollectible Noncurrent Receivable-Other/Mtg/Note/Cnt TC 467: Write off of Uncollectible Noncurrent Receivable-Taxes TC 455: Write off of Uncollectible Noncurrent Receivable-Loans TC 289: Voucher Payable-Loan Receivable/Payable - Proprietary and Fiduciary Funds Usage: To set up voucher payable for an expenditure and adjust loan receivable/payable that was not encumbered. Use TC 289R to reduce amount to vendor. Developed to combine several of the General Ledger and Comptroller Objects of TC 457 and TC 461. This T Code creates a warrant. Chapter I – Receivables Transactions I-8 Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: When making a payment on a long term liability or issuing a payment that creates a long term receivable - do not use to reduce balance of Noncurrent receivable for repayments received. Transaction: DR General Ledger Account Required: 0420 Taxes Receivable-Noncurrent 0927 Investment in State Owned Property 0930 Notes Receivable-Noncurrent 0931 Loans Receivable 0932 Contracts Receivable 0933 Mortgage Receivable 0935 Other Receivables – Noncurrent 1577 Trust Funds Payable - Noncurrent 1717 Claims and Judgments Payable 1720 Accounts Payable - Noncurrent 1722 Contracts Payable – Retainage 1725 Legal Reserves 1726 Reported Claims - Risk Management 1727 Legal IBNR (Incurred But Not Reported) 1730 Original/Acquisition Loan Fees 1735 Loans Payable 1740 IBNR Reserves – Risk Management 1745 Lottery Prize Awards Payable 1750 Notes Payable – Noncurrent DR 3501 Expenditure Control-Accrued CR 3600 GAAP Expenditure Offset CR 1211 Vouchers Payable Requires Comptroller Object: Comptroller objects 4000 – 5999, 6093, 6201-7415 or 3263 may be used. Related Transactions: TC 457: Adjust Noncurrent Liabilities in Proprietary, Fiduciary, Government-wide Reporting funds TC 298: Expenditure Transfer Paid to Local Government Investment Pool-Loan Receivable/Payable - Proprietary and Fiduciary Funds Usage: To record an expenditure and adjust loans receivable/payable for a payment made to a local government through the Local Government Investment Pool (LGIP) without having a warrant cut. To be used if transfer to local government is budgeted. Developed to combine several of the General Ledger and Comptroller Objects of TC 457 and TC 461. Affects: Trial Balance and GAAP Operating Statements Chapter I – Receivables Transactions I-9 Record in R*STARS: When making a payment on a long term liability or issuing a payment that creates a long term receivable - do not use to reduce balance of Noncurrent receivable for repayments received. Transaction: DR General Ledger Account Required: 0420 Taxes Receivable-Noncurrent 0927 Investment in State Owned Property 0930 Notes Receivable-Noncurrent 0931 Loans Receivable 0932 Contracts Receivable 0933 Mortgage Receivable 0935 Other Receivables – Noncurrent 1577 Trust Funds Payable - Noncurrent 1717 Claims and Judgments Payable 1720 Accounts Payable - Noncurrent 1722 Contracts Payable – Retainage 1725 Legal Reserves 1726 Reported Claims - Risk Management 1727 Legal IBNR (Incurred But Not Reported) 1730 Original/Acquisition Loan Fees 1735 Loans Payable 1740 IBNR Reserves – Risk Management 1750 Notes Payable – Noncurrent DR 3500 Expenditure Control-Cash CR 3600 GAAP Expenditure Offset CR 0070 Cash on Deposit with Treasurer Requires Comptroller Object: Comptroller objects 3111 – 5999, 6300-6725, 6800, 6805 or 6875 may be used. Related Transactions: TC 457: Adjust Noncurrent Liabilities in Proprietary, Fiduciary, Government-wide Reporting funds TC 446: Establish or Adjust Advance To Other Funds/Agencies - Proprietary and Fiduciary Funds Usage: To establish or adjust an advance to another fund or agency in a proprietary or fiduciary fund. Payment of the advance by the agency would be initiated using transaction codes 722/723. The GAAP Expenditure Offset eliminates the expenditure (that was recorded with T-code 722) for financial statement purposes. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: When advance payment is made using TC 722. Chapter I – Receivables Transactions I - 10 Transaction: DR 0950 Advances To Other Funds/Agencies Agency General Ledger Account Required: Format: 8 characters XXX Agency owing on Advance XXXX Fund in Agency owing on Advance 0 (zero) Filler CR 3600 GAAP Expenditure Offset Requires Comptroller Object: 5450 Industrial and Heavy Equipment 5455 1099 Reportable Services/Industrial & Heavy Equipment 6870 Loans Made to State Agencies 6875 Loans Made - Other Related Transactions (for proprietary & fiduciary funds only): TC 447: Adjust Advance To Other Funds/Agencies for Repayment TC 448: Establish or Adjust Advance From Other Funds/Agencies TC 449: Adjust Advance From Other Funds/Agencies for Repayment TC 447: Adjust Advance To Other Funds/Agencies for Repayment - Proprietary and Fiduciary Funds Usage: To record a payment received on an advance to another fund or agency in a proprietary or fiduciary fund where the original advance was recorded with TC 446. Repayment of the advance by the other agency would be initiated using transaction codes 722/723. The GAAP Revenue Offset eliminates the revenue (recorded with Tcode 723) for financial reporting purposes. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: When loan repayment is received via TC 723. Transaction: DR 3200 GAAP Revenue Offset Requires Comptroller Object: 1101 Housing Division Loan Repayments 1102 Veterans’ Loan Repayments 1103 Senior Citizen Property Tax Repayments 1104 Other Loan Repayments (most agencies will use this account) CR 0950 Advances To Other Funds/Agencies Agency General Ledger Account Required: Format: 8 characters XXX Agency owing on Advance XXXX Fund in Agency owing on Advance 0 (zero) Filler Related Transactions (for proprietary and fiduciary funds only): TC 446: Establish or Adjust Advance To Other Funds/Agencies TC 448: Establish or Adjust Advance From Other Funds/Agencies TC 449: Adjust Advance From Other Funds/Agencies for Repayment Chapter I – Receivables Transactions I - 11 TC 461: Establish or Adjust Loans/Notes/Mortgages/Contracts/State-owned Property/ Taxes Receivable - Noncurrent Usage: To establish or adjust long-term receivables in a proprietary, fiduciary or governmentwide reporting fund. To establish an allowance for estimated uncollectible amounts, use a TC 461R (reversal). For financial reporting purposes, the GAAP Expenditure Offset eliminates the expenditure that was recorded when the receivable was originally created. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: When the receivable is created (whether a sale, a loan made or note given). Allowance for uncollectibles should be recorded at least once a year; month 13 would be an appropriate period for this. Transaction: DR General Ledger Account Required: 0420 Taxes Receivable-Noncurrent 0927 Investment in State Owned Property 0930 Notes Receivable - Noncurrent 0931 Loans Receivable 0932 Contracts Receivable 0933 Mortgage Receivable 0934 Allowance for Uncollectible Rec.-Noncurrent-Cnt/Mtg/Note/Other 0935 Other Receivables - Noncurrent 0936 Allowance for Uncollectible -Noncurrent - Loan Rec. 0937 Allowance for Uncollectible Taxes - Noncurrent CR 3600 GAAP Expenditure Offset Requires Comptroller Object: A Comptroller Expenditure Object within the range of 3111-5999, 6201-7415 or 7479 may be used. However, objects normally used for expenditures related to these long-term receivables are: 6870 Loans Made to State Agencies 6875 Loans Made - Other When recording allowance for uncollectible accounts use 7479 Bad Debt Expense only when there is no revenue associated with the receivable. Use TC 462 to record allowance as a reduction to the associated revenue. Related Transactions: TC 445: Write Off Uncollectible Noncurrent Receivable Other/Note/Mortgage/Contract TC 455: Write Off Uncollectible Noncurrent Receivable - Loans TC 467: Write Off Uncollectible Noncurrent Receivable - Taxes Chapter I – Receivables Transactions I - 12 TC 462: Establish/Adjust Noncurrent Liability or Noncurrent Receivable - Proprietary and Fiduciary Funds Usage: To adjust receivable amounts established with transaction code 461 in a proprietary, fiduciary or government-wide reporting fund (not to reduce them for payments received; use TC 142 for that). The GAAP Revenue Offset eliminates revenue for financial reporting purposes. This transaction is also used to adjust certain liabilities against revenue. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: When adjustment is determined to be needed - do not use to reduce balance of Noncurrent receivable for repayments received. Review general ledger accounts below at least annually to determine need for adjustment. Transaction: DR 3200 GAAP Revenue Offset Requires Comptroller Object: Comptroller objects 0111 - 2600 (revenue objects) may be used. The object used to set up the Original receivable should be used to adjust revenue. CR General Ledger Account Required: 0420 Taxes Receivable-Noncurrent 0927 Investment in State Owned Property 0930 Notes Receivable-Noncurrent 0931 Loans Receivable 0932 Contracts Receivable 0933 Mortgage Receivable 0934 Allowance for Uncollectible Rec.-Noncurrent-Cnt/Mtg/Note/Other 0935 Other Receivables – Noncurrent 0936 Allowance for Uncollectible -Noncurrent - Loan Rec. 0937 Allowance for Uncollectible Taxes - Noncurrent 1280 Lease Purchase Contracts Payable - Current 1281 Obligation Under Capital Lease – Current 1577 Trust Funds Payable - Noncurrent 1717 Claims and Judgments Payable 1720 Accounts Payable - Noncurrent 1722 Contracts Payable – Retainage 1725 Legal Reserves 1726 Reported Claims - Risk Management 1727 Legal IBNR (Incurred But Not Reported) 1730 Original/Acquisition Loan Fees 1735 Loans Payable 1740 IBNR Reserves – Risk Management 1745 Lottery Prize Awards Payable 1750 Notes Payable - Noncurrent Related Transactions: TC 461: Establish or Adjust Loan/Note/Mortgage/Contract Receivable - Noncurrent TC 457: Adjust Noncurrent Liabilities in Proprietary, Fiduciary, Government-wide Reporting funds Chapter I – Receivables Transactions I - 13 TC 463: Charge Miscellaneous Revenue to a Noncurrent Receivable - Proprietary and Fiduciary Funds Usage: To charge miscellaneous revenue to a noncurrent receivable-loan, mortgage, contract, note or other. In this transaction, the GAAP Revenue Offset reports additional revenue for financial statement purposes. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: When adjustment is determined to be needed - do not use to reduce balance of Noncurrent receivable for repayments received. Transaction: DR General Ledger Account Required: 0927 Investment in State Owned Property 0930 Notes Receivable-Noncurrent 0931 Loans Receivable 0932 Contracts Receivable 0933 Mortgage Receivable 0934 Allowance for Uncollectible Rec.-Noncurrent-Cnt/Mtg/Note/Other 0935 Other Receivables - Noncurrent 0936 Allowance for Uncollectible -Noncurrent - Loan Rec. CR 3200 GAAP Revenue Offset Requires Comptroller Object: Revenue Comptroller objects 0111 - 2600 may be used with this T-code. Related Transactions: NONE TC 571: Revenue/Cash w/Bank – Establish/Adjust Noncurrent Liability & Noncurrent Receivable - Proprietary and Fiduciary Funds Usage: To record the receipt of cash in bank and establish a loan payable for proceeds received. Use TC 457 to repay. To record receipt of cash in bank and adjust a noncurrent receivable. Use for Proprietary and Fiduciary funds only. Developed to combine several of the General Ledger and Comptroller Objects of TC 567 and TC 462. This T Code records the receipt of cash in bank. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: When payment is received for a long term receivable that is recorded in cash in bank or to set up a loan payable in cash in bank. For financial statement purposes, the GAAP revenue offset eliminates the revenue. Chapter I – Receivables Transactions I - 14 Transaction: DR 3200 GAAP Revenue Offset DR 0077 Cash - in Bank CR General Ledger Account Required: 0420 Taxes Receivable-Noncurrent 0927 Investment in State Owned Property 0930 Notes Receivable-Noncurrent 0931 Loans Receivable 0932 Contracts Receivable 0933 Mortgage Receivable 0935 Other Receivables - Noncurrent 1280 Lease Purchase Contracts Payable-Current 1281 Obligation Under Capital Lease-Current 1577 Trust Funds Payable-Noncurrent 1717 Claims and Judgments Payable 1720 Accounts Payable-Noncurrent 1722 Contracts Payable-Retainage 1725 Legal Reserves 1726 Reported Claims-Risk Management 1727 Legal IBNR 1730 Original/Acquisition Loan Fees 1735 Loans Payable 1740 IBNR Reserves-Risk Management 1750 Notes Payable-Noncurrent CR 3100 Revenue Control - Cash Requires Comptroller Object: Revenue Comptroller objects 0111 - 2600 may be used with this T-code. Related Transactions: TC 457: Adjust Noncurrent Liabilities in Proprietary, Fiduciary, Government-wide Reporting funds Chapter I – Receivables Transactions I - 15 LIABILITIES TRANSACTIONS (NO BONDS/COPs) Governmental Funds TC 482: Establish Advance From Other Fund/Agency Usage: To record a long-term advance (loan) from another fund or agency in a governmental fund. Receipt of the advance by the agency would be initiated by the advancing agency or fund using transaction codes 722/723. The GAAP Revenue offset eliminates the revenue (recorded with T-code 723) for financial reporting purposes. Balancing T-code 483 establishes the Amount To Be Provided account. When repaid, remove advance using transaction codes 484/485. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: When loan proceeds recorded with TC 723. Transaction: DR 2951 System Clearing General Ledger DR 3200 GAAP Revenue Offset Requires Comptroller Object: 1105 Other Revenue 1600 Loan Proceeds CR 1800 Advances From Other Funds/Agencies CR 3075 Change in Reserves Agency General Ledger Account Required: Format: 8 characters XXX Agency owed on Advance XXXX Fund in Agency owed on Advance 0 (zero) Filler Related Transactions (for governmental funds only): TC 483: Establish the Amount to be Provided account; Balancing T-code which must be used with T-code 482. TC 484/485: Adjust Advance From Other Fund/Agency for Repayment TC 477: Establish Advance To Other Fund/Agency TC 478: Adjust Advance To Other Fund/Agency for Repayment TC 484: Adjust Advance From Other Fund/Agency for Repayment - Governmental Funds Usage: To reduce the outstanding balance of a long-term advance from another fund or agency to reflect a repayment received in a governmental fund. Repayment of advance by the agency would be initiated using transaction codes 722/723. T-code 485 must be used with this transaction to adjust the Amount To Be Provided account. The GAAP Expenditure Offset eliminates the expenditure (loans repaid to state agencies or principal – loans recorded with T-code 722) for financial statement purposes. Chapter I – Liabilities Transactions (No Bonds/COPS) I - 16 Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: When loan repayment is initiated using TC 722. Transaction: DR 1800 Advances From Other Funds/Agencies DR 3075 Change in Reserves Agency General Ledger Account Required: Format: 8 characters XXX Agency owed on Advance XXXX Fund in Agency owed on Advance 0 (zero) Filler CR 2951 System Clearing General Ledger CR 3600 GAAP Expenditure Offset Requires Comptroller Object: 5450 Industrial and Heavy Equipment 5455 1099 Reportable Services/Industrial and Heavy Equipment 6825 Loans Repaid to State Agencies 7200 Principal - Loans Related Transactions (for governmental funds only): TC 485: Adjust the Amount to be Provided account. Must be used with T-code 484. TC 482/483: Establish Advance From Other Fund/Agency TC 477: Establish Advance To Other Fund/Agency TC 478: Adjust Advance From Other Fund/Agency for Repayment Chapter I – Liabilities Transactions (No Bonds/COPS) I - 17 Proprietary and Fiduciary Funds TC 448: Establish or Adjust Advance From Other Fund/Agency Usage: To record a long-term advance (loan) from another fund or agency in a proprietary or fiduciary fund. Receipt of the advance by the agency would be initiated by the advancing agency or fund using transaction codes 722/723. he GAAP Revenue Offset eliminates the revenue (other revenue or loan proceeds recorded with T-code 723) for financial statement purposes. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: When loan proceeds are recorded with TC 723. Transaction: DR 3200 GAAP Revenue Offset Requires Comptroller Object: 1105 Other Revenue 1600 Loan Proceeds CR 1800 Advances From Other Funds/Agencies Agency General Ledger Account Required: Format: 8 characters XXX Agency owed on Advance XXXX Fund in Agency owed on Advance 0 (zero) Filler Related Transactions (for proprietary and fiduciary funds only): TC 449: Adjust Advance From Other Fund/Agency for Repayment TC 446: Establish or Adjust Advance To Other Fund/Agency TC 447: Adjust Advance To Other Fund/Agency for Repayment TC 449: Adjust Advance From Other Fund/Agency for Repayment - Proprietary and Fiduciary Funds Usage: To reduce the outstanding balance of a long-term advance from another fund or agency as a result of a repayment in a proprietary or fiduciary fund. Repayment of advance by the agency would be initiated using transaction codes 722/723. The GAAP Expenditure Offset eliminates the expense (loans repaid to state agencies or principal-loans recorded with T-code 722) for financial statement purposes. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: When loan repayment is initiated using TC 722. Chapter I – Liabilities Transactions (No Bonds/COPS) I - 18 Transaction: DR 1800 Advances From Other Funds/Agencies Agency General Ledger Account Required: Format: 8 characters XXX Agency owed on Advance XXXX Fund in Agency owed on Advance 0 (zero)Filler CR 3600 GAAP Expenditure Offset Requires Comptroller Object: 6825 Loans Repaid to State Agencies 7200 Principal - Loans Related Transactions: TC 448: Establish or Adjust Advance From Other Fund/Agency TC 446: Establish or Adjust Advance To Other Fund/Agency TC 447: Adjust Advance To Other Fund/Agency for Repayment Chapter I – Liabilities Transactions (No Bonds/COPS) I - 19 Proprietary, Fiduciary and Government-wide Reporting Funds TC 457: Establish or Adjust Other Noncurrent Liabilities Usage: To record other liabilities that create an expenditure for repayment in proprietary, fiduciary or government-wide reporting funds. The effect of this transaction is to establish or adjust a liability for GAAP reporting purposes without affecting budgetary expenditures. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: At least once a year; Month 13 is an appropriate period to record this. Transaction: DR 3600 GAAP Expenditure Offset Requires Comptroller Object: A Comptroller expenditure object within the range of 3111-5999 or 6201-7415 may be used with this T-Code. CR Requires Comptroller General Ledger Account: 1577 Trust Funds Payable - Noncurrent 1717 Claims and Judgment Payable 1720 Accounts Payable - Noncurrent 1722 Contracts Payable - Retainage 1725 Legal Reserves 1726 Reported Claims - Risk Management 1727 Legal IBNR 1730 Original/Acquisition Loan Fees 1735 Loans Payable 1740 IBNR Reserves - Risk Management 1745 Lottery Prize Awards Payable 1750 Notes Payable-Noncurrent Related Transactions: N O N E TC 459: Reduce Capital Lease Liability - Proprietary, Fiduciary and Government-wide Reporting Funds Usage: To reduce the lease liability balance when payments are made on a capital lease or installment purchase with transaction code 222 or 225. The GAAP Expenditure Offset in this transaction eliminates the expense (recorded with T-code 222 or 225) for financial statement purposes. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: Preferably at the time payment is made to the lessor. Minimally, at least once a year for the total of the principal paid to the lessor. Chapter I – Liabilities Transactions (No Bonds/COPS) I - 20 Transaction: DR Requires Comptroller General Ledger Account: 1715 Lease-Purchase Contracts Payable-Noncurrent 1716 Obligations under Capital Lease-Noncurrent CR 3600 GAAP Expenditure Offset Requires Comptroller Object: All Capital Outlay objects (5100 - 5975) may be used; should use the same objects used to record payments (T-codes 222 or 225). Related Transactions: TC 466: To record capital leased property and the related liability Chapter I – Liabilities Transactions (No Bonds/COPS) I - 21 This page intentionally left blank. BOND/COP TRANSACTIONS Proprietary, Fiduciary and Government-wide Reporting Funds TC 504: To Establish or Adjust a Payable for Bonds/COPs/TANs Usage: To record the liability associated with issuance of bonds or COPs in a proprietary, fiduciary or government-wide reporting fund (bond or COP revenue proceeds are recorded using transaction codes 190 or 567). Also use to establish the liability for TANs in a governmental fund. The effect of this transaction is to reduce the amount of revenue and to establish Bonds, COP, or TANs payable for GAAP financial statement purposes. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: When bonds, COPs or TANs are sold. Transaction: DR 3200 GAAP Revenue Offset Requires Comptroller Object: 1501 General Obligation Bonds 1503 Revenue Bonds 1504 Tax Exempt Commercial Paper 1505 Proceeds from Refunding Bond/COP Debt 1506 Certificates of Participation 1507 OID - Certificates of Participation 1508 OID - Bonds 1509 OIP - Certificates of Participation 1510 OIP - Bonds 1511 OIP - Tax Anticipation Notes 1512 Appropriation Bonds 1513 OIP- Appropriation Bonds 1605 Tax Anticipation Note Proceeds CR General Ledger Account Required: 1540 Tax Anticipation Notes Payable 1545 Premium on Tax Anticipation Notes 1702 Discount on COPs Sold 1703 Premium on COPs Sold 1704 COPs Payable – Noncurrent 1712 Discount on Bonds Sold 1713 Premium on Bonds Sold 1714 Bonds Payable - Noncurrent Related Transactions: N O N E Chapter I – Bonds/COP Transactions I - 21 TC 514: Establish Underwriter’s Discounts/Deferred Charges on Bonds/COPs Proprietary, Fiduciary and Government-wide Reporting Funds Usage: To record underwriter’s discounts and deferred charges (costs of issuance, remarket fees, bond insurance, etc.) when expenditures (budgetary) are made with transaction codes 222 or 167R (i.e., out of pocket expenses, not paid from the Bond/COP proceeds). Discounts, premiums and deferred charges paid from proceeds should be recorded with TC 511. This transaction allows the costs to be matched with the period in which they are used. Use transaction code 500 for deferred charges other than Bonds/COPs. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: Record underwriter’s discounts or deferred charges at the time they are incurred, and record amortized expense using a TC 520 at least once a year thereafter. Transaction: DR General Ledger Account Required: 0603 Deferred Charges 1701 Underwriter’s Discount - Bonds 1702 Discount on COPs Sold 1703 Premium on COPs Sold 1705 Deferred Loss/Gain on Debt Refunding 1711 Underwriter’s Discount - Bonds 1712 Discount on Bonds Sold 1713 Premium on Bonds Sold CR 3600 GAAP Expenditure Offset Requires Comptroller Object: 4050 Bond Costs 4051 Bond Refunded Debt Payment to Escrow Agent-not from bond proceeds 4055 Certificate of Participation Costs 4056 COP Refunded Debt Payment to Escrow Agent-not from COP proceeds 7050 Refunded Debt Payment to Escrow Agent-from Bond/COP proceeds Related Transactions: TC 511: Establish Original Premium or Underwriter’s Discounts and Deferred Charges for Bonds/COPs TC 516: Write off loss on remaining Discount, Premium, Deferred Charges, or Deferred Loss/Gain on Bonds/COPs TC 520: Amortize Original/Underwriter’s Discounts/Costs of Issuance/Deferred Charges for Bonds/COPs Chapter I – Bonds/COP Transactions I - 22 TC 516: Write Off Various Bond/COP Costs - Proprietary, Fiduciary and Governmentwide Reporting Funds Usage: To write off the loss on Bond/COP remaining original discount, deferred expenses, costs of issuance and underwriter’s discount in a proprietary, fiduciary or governmentwide reporting fund. This transaction should be used only when a bond or COP issue is being called or refunded. Use a TC 520 for normal amortization of the various deferred costs. The effect of this transaction is to reduce the amount of revenue reported for GAAP financial statement purposes and to reduce the amount of deferred charges, underwriters discount, or original issue discount. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: Only when Bond or COP issue(s) are refunded or retired early; record at time of Bond/COP payoff. Transaction: DR 3200 GAAP Revenue Offset Requires Comptroller Object: 2315 Loss on Bond Call - Capitalization Write-off 2316 Loss on COP Call - Capitalization Write-off CR General Ledger Account Required: 0603 Deferred Charges 1701 Underwriter’s Discount - COPs 1702 Discount on COPs Sold 1705 Deferred Loss/Gain on Debt Refunding 1711 Underwriter’s Discount - Bonds 1712 Discount on Bonds Sold Related Transactions: TC 514: Establish Underwriter’s Discounts/Deferred Charges on Bonds/COPs TC 517: Write off Original Premium on Called Bonds/COPs TC 517: Write Off Bond/COP Original Premium - Proprietary, Fiduciary and Governmentwide Reporting funds Usage: This transaction allows the user to write off the loss on Bond/COP remaining original premium in a proprietary, fiduciary or government-wide reporting fund. This transaction should be used only when a bond or COP issue is being called. Use a TC 520 for normal amortization of the original premium. The effect of this transaction is to increase the amount of revenue reported for GAAP financial statement purposes and to reduce the amount of original Bond/COP premium. Affects: Trial Balance and GAAP Operating Statements Chapter I – Bonds/COP Transactions I - 23 Record in R*STARS: Only when Bond or COP issue(s) refunded or retired early; record at time of Bond/COP payoff. Transaction: DR General Ledger Account Required: 1703 Premium on COPs Sold 1713 Premium on Bonds Sold CR 3200 GAAP Revenue Offset Requires Comptroller Object: 2315 Loss on Bond Call - Capitalization Write-off 2316 Loss on COP Call - Capitalization Write-off Related Transactions: TC 511: Establish Underwriter’s Discounts/Premium/Deferred Charges on Bonds/COPs TC 516: Write off discounts and deferred charges when debt is refunded TC 520: Amortize Original/Underwriter’s Discounts/Costs of Issuance/Deferred Charges for Bonds/COPs - Proprietary, Fiduciary and Government-wide Reporting Funds Usage: To record the amortization of costs of issuance, original discount, prepaid expenses, deferred charges or underwriter’s discount for Bonds/COPs in a proprietary, fiduciary or government-wide reporting fund. The GAAP Expenditure Offset records an expense for financial statement purposes. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: At least once a year (Month 13 is an appropriate period). Transaction: DR 3600 GAAP Expenditure Offset Requires Comptroller Object: 7420 Amortization - Deferred Charges 7430 Amortization - Prepaid Expenses 7440 Amortization - Underwriter’s Discount - Bonds 7445 Amortization - Underwriter’s Discount - COPs 7450 Amortization - Discount/Premium on Bonds 7455 Amortization - Discount/Premium on COPs 7460 Amortization - Cost of Issuance on Bonds 7465 Amortization - Cost of Issuance on COPs 7470 Amortization – Deferred Loss/Gain on Refunding CR General Ledger Account Required: 0602 Prepaid Expenses 0603 Deferred Charges 1701 Underwriter’s Discount - COPs 1702 Discount on COPs Sold 1705 Deferred Loss/Gain on Debt Refunding Chapter I – Bonds/COP Transactions I - 24 1711 1712 Underwriter’s Discount - Bonds Discount on Bonds Sold Related Transactions: TC 511: Establish Original Premium, Underwriter’s Discounts and Deferred Charges for Bonds/COPs TC 514: Establish Underwriter’s Discounts/Deferred Charges on Bonds/COPs TC 523: Amortize Original Premium for Bonds/COPs - Proprietary, Fiduciary and Government-wide Reporting Funds Usage: To record the amortization of the original premium for Bonds/COPs in a proprietary, fiduciary or government-wide reporting fund. The GAAP Expenditure Offset records these expenses for financial statement purposes only. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: At least once a year (Month 13 is an appropriate period). Transaction: DR General Ledger Account Required: 1545 Premium on Tax Anticipation Notes 1703 Premium on COPs Sold 1713 Premium on Bonds Sold CR 3600 GAAP Expenditure Offset Requires Comptroller Object: 7450 Amortization - Discount/Premium on Bonds 7455 Amortization - Discount/Premium on COPs Related Transactions: TC 511: Establish Original Premium, Underwriter’s Discounts and Deferred Charges for Bonds/COPs TC 524: Establish or Adjust Accreted Interest Payable on Bonds/COPs - Proprietary, Fiduciary and Government-wide Reporting Funds Usage: To record the accretion (or growth) of the accreted interest associated with deep discount Bonds/COPs to match revenues and expenses. This increases Accreted Interest Payable over the life of the Bonds/COPs. The GAAP Expenditure Offset records the expense for financial statement purposes only. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: At least once a year (Month13 is an appropriate period). Chapter I – Bonds/COP Transactions I - 25 Transaction: DR 3600 GAAP Expenditure Offset Requires Comptroller Object: 7050 Refunded Debt Payment to Escrow Agent from Bond/COP Proceeds 7250 Interest - Bonds 7300 Interest - Certificates of Participation CR 1709 Accreted Interest Payable Related Transactions: N O N E TC 526: Establish or Adjust Arbitrage Rebate Payable on Bonds/COPs - Proprietary, Fiduciary and Government-wide Reporting Funds Usage: To record arbitrage rebate payable for Bonds/COPs in a proprietary, fiduciary or government-wide reporting fund. This reduces interest revenue associated with Bonds/COPs. Use a TC 526R to reduce/liquidate arbitrage payable. The GAAP Revenue Offset records the reduction of revenue for financial statement purposes only. Affects: Trial Balance, GAAP Operating Statements Record in R*STARS: At least once a year (Month13 is an appropriate period). Transaction: DR 3200 GAAP Revenue Offset Requires Comptroller Object: 0800 Interest on Investments 0801 Interest on Program Loans CR 1719 Arbitrage Rebate Payable Related Transactions: N O N E TC 528: Reduce Liability for Principal or Advance Refunding of Bonds/COPs Proprietary, Fiduciary and Government-wide Reporting Funds Usage: To reduce the Bond or COP Payable balances to reflect the payment of principal or an advance refunding in a proprietary, fiduciary or government-wide reporting fund. To record payment to escrow agent for advance refunding or principal payment use transaction code 167R or 568. To produce a warrant, use transaction code 222. Affects: Trial Balance and GAAP Operating Statements Chapter I – Bonds/COP Transactions I - 26 Record in R*STARS: When payment on principal is made or, at a minimum, at the end of each year principal payments are made. Transaction: DR General Ledger Account Required: 1276 Bonds Payable - Current 1279 COP Payable - Current 1540 Tax Anticipation Notes Payable - Current 1704 COPs Payable - Noncurrent 1714 Bonds Payable - Noncurrent CR 3600 GAAP Expenditure Offset Requires Comptroller Object: 4051 Bond Refund Debt Payment – Escrow Agent – Agency Cash 7050 Refunded Debt Payment to Escrow Agent from Bond/COP Proceeds 7100 Principal - Bonds 7150 Principal - Certificates of Participation 7275 Principal – Appropriation Bonds 7410 Principal - Tax Anticipation Notes Related Transactions: N O N E TC 558: Expenditure/Cash w/Bank-Reduce Liability - Proprietary, Fiduciary and Government-wide Reporting Funds Usage: To record expenditure from cash in bank and reduce liability for the amount of principal or advanced refunding for a bond or COP payable in a Proprietary, Fiduciary or the Government Wide Reporting Fund. Developed to combine several of the General Ledger and Comptroller Objects of TC 528 and TC 568. This T Code records the expenditure from cash in bank. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: When payment on principal is made from cash in bank or, at a minimum, at the end of each year principal payments are made. Transaction: DR General Ledger Account Required: 1276 Bonds Payable - Current 1279 COP Payable - Current 1704 COPs Payable - Noncurrent 1714 Bonds Payable - Noncurrent DR 3500 Expenditure Control-Cash CR 3600 GAAP Expenditure Offset CR 0077 Cash-In Bank Requires Comptroller Object: 4051 Bond Refund Debt Payment – Escrow Agent – Agency Cash 7050 Refunded Debt Payment to Escrow Agent from Bond/COP Proceeds 7100 Principal - Bonds Chapter I – Bonds/COP Transactions I - 27 7150 Principal - Certificates of Participation Related Transactions: N O N E Chapter I – Bonds/COP Transactions I - 28 This page intentionally left blank. OTHER MISCELLANEOUS TRANSACTIONS TC 440: Record/Adjust Short-Term Vacation Payable – All Fund Types Usage: To record increase (TC 440) or decrease (TC 440R) in short-term vacation payable in proprietary, fiduciary or government-wide reporting funds. The effect of this entry is an increase or decrease in payroll expense for GAAP financial statement purposes. The effect of this entry will not appear on budgetary operating statements, but will be reflected in GAAP operating statements. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: Record once per year. Month 13 is the most appropriate period to record this, but it can be recorded in month 12 when information is provided by SARS. Transaction: DR 3600 GAAP Expenditure Offset Requires Comptroller Object: 3111 Regular Employees (payroll) CR 1605 Vacation Payable - Current Related Transactions: TC 442: Record/Adjust Noncurrent Vacation Payable - Proprietary, Fiduciary, Government-wide Reporting Funds TC 442: Record/Adjust Noncurrent Vacation Payable - Proprietary, Fiduciary and Government-wide Reporting Funds Usage: To record increase (TC 442) or decrease (TC 442R) in noncurrent vacation payable in proprietary or fiduciary funds or the government-wide reporting fund. The effect of this entry is an increase or decrease in payroll expense for GAAP financial reporting purposes. Thus, the effect of this entry will not appear on budgetary operating statements, but will be reflected in GAAP operating statements. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: Record once per year. Month 13 is the most appropriate period to record this, but it can be recorded in month 12 when information is provided by SARS. Transaction: DR 3600 GAAP Expenditure Offset Requires Comptroller Object: 3111 Regular Employees (payroll) CR 1718 Vacation Payable - Noncurrent Related Transactions: TC 440: Short-Term Vacation Payable for all fund types Chapter I – Other Miscellaneous Transactions I - 29 TC 487: Adjust Valuation Account to Recognize Investments at Fair Value or Amortize Investment Premium/Discount - Governmental, Proprietary and Fiduciary Funds Usage: To adjust the valuation account to recognize investments at fair value. A TC 487R records a decrease in fair value, and a TC 487 records an increase in fair value. The GAAP Revenue Offset records the adjustment for GAAP reporting purposes only. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: Monthly. Transaction: DR General Ledger Account Required: 0245 Investment Valuation Account - Designated 0255 Investment Valuation Account - Other 0261 Premium on Investments 0281 Discount on Investments CR 3200 GAAP Revenue Offset Requires Comptroller Object: 0800 Interest on Investments 0801 Interest on Program Loans 0810 Income From Investments - Treasury 0811 Interest on Program Loans - Treasury 0830 Net Increase (Decrease) in FV of Investments 2345 Amortization of Investment Premium 2346 Amortization of Investment Discount Related Transactions: TC 490: Record purchase of Investments with Cash in Bank TC 491: Record purchase of Investments with Cash at Treasury Chapter I – Other Miscellaneous Transactions I - 30 Governmental Funds TC 503: Record or Adjust Inventories - Governmental Funds Usage: To record or adjust inventory and the related reserve account in a governmental fund. Also records the change in inventory for GAAP reporting purposes. Expenditures (budgetary) are made with transaction codes 222, 225, or 226. Where the asset cost has not expired, this transaction allows the costs to be matched with the period in which they are used. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: At least once a year (month 13 is proper for this). Transaction: DR 3075 Change in Reserves DR General Ledger Account Required: 0600 Inventories-Materials and Supplies 0601 Inventories-Stores for Resale CR 3005 Reserved for Inventories CR 3600 GAAP Expenditure Offset Comptroller Object 7500-Inc/Dcr in Govt Inventories Reserve Related Transactions: TC 500: Record/Adjust Inventory in proprietary and fiduciary funds TC 515: Record/Adjust Prepaid Items - Governmental Funds Usage: To record an asset (prepaid items) when expenditures are made with transaction codes 222, 225, or 226, where the asset cost has not expired. This transaction code is used in governmental funds and allows the costs to be matched with the period in which they are used. Use transaction code 514 for Bond/COP deferred charges. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: Record prepaid expenses at the time they are incurred, and expense or adjust at least once a year thereafter. Transaction: DR 0602 Prepaid Expenses DR 3075 Change in Reserves CR 3001 Reserved -Other CR 3600 GAAP Expenditure Offset Requires Comptroller Object: Chapter I – Other Miscellaneous Transactions I - 31 A Comptroller Expenditure Object within the range of 3111–5999 or 62017415 may be used, but the object used for the original expenditure should be the one used. Related Transactions: TC 500: Record Prepaid Expense - proprietary and fiduciary funds TC 565: Establish or Adjust Cash on Hand Usage: To establish or adjust cash on hand (petty cash) for a governmental fund. A warrant is produced using transaction code 222. The warrant is cashed by the agency for use in a petty cash account. This transaction is used to record the cash on hand and related reserve account. The GAAP Expenditure Offset eliminates the expenditure that was recorded when the warrant was originally produced. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: When the warrant establishing or adjusting the petty cash fund is issued. Transaction: DR 0072 Cash on Hand DR 3075 Change in Reserves CR 2999 Reserved for Revolving Accounts CR 3600 GAAP Expenditure Offset Requires Comptroller Object: Comptroller objects 4001-5999 and 6201-7415 may be used. The object used originally to issue the warrant (usually 4200 Office Supplies) should be used. Related Transactions: TC 194: Establish or Adjust Cash on Hand for proprietary and fiduciary funds TC 781: Expenditure Transfer Out - Prepaid Legal Fees - Governmental Funds Usage: To record the prepayment of legal fees in a governmental fund. T-code 782 must be processed with T-code 781 as a balanced transaction. The GAAP Expenditure Offset eliminates the expenditure/expense for financial reporting purposes. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: Record prepaid expenses at the time they are incurred, and expense at least once a year thereafter. Chapter I – Other Miscellaneous Transactions I - 32 Transaction: DR 3500 Expenditure Control - Cash DR 0602 Prepaid Expenses DR 3075 Change in Reserves CR 0070 Cash on Deposit With Treasurer CR 3001 Reserved - Other CR 3600 GAAP Expenditure Offset Requires Comptroller Object: 4500 Professional Services 4550 Attorney General Legal Fees Related Transactions: TC 782: To record receipt of prepaid legal fees as deferred revenue - governmental funds TC 782: Revenue Transfer In - Prepaid Legal Fees - Governmental Funds Usage: To record the receipt of prepaid legal fees as deferred revenue in a governmental fund. This entry is generated by the paying agency. T-code 782 must be processed with T-code 781 as a balanced transaction. Revenue is recorded for budgetary purposes while the GAAP Revenue Offset eliminates the revenue for financial reporting purposes (since it has not been earned yet). Use T-code 493 to recognize the earned portion. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: Record at the time the prepayment is received. Transaction: DR 0070 Cash on Deposit With Treasurer DR 3200 GAAP Revenue Offset Comptroller Object 0407 Other Charges for Services CR 3100 Revenue Control - Cash CR 1604 Deferred Revenue - Document Supported Related Transactions: TC 781: To record prepayment of legal fees - governmental funds TC 493: To recognize the earned portion of deferred revenue Chapter I – Other Miscellaneous Transactions I - 33 Proprietary and Fiduciary Funds TC 194: Establish or Adjust Cash on Hand Usage: To establish or adjust cash on hand (petty cash) for proprietary or fiduciary funds. A warrant is produced using transaction code 222. The warrant is cashed by the agency for use in a petty cash account. This transaction is used to record the cash on hand. The GAAP Expenditure Offset eliminates the expenditure created when the warrant was produced for financial reporting purposes. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: When the warrant establishing or adjusting the petty cash fund is issued. Transaction: DR 0072 Cash on Hand CR 3600 GAAP Expenditure Offset Requires Comptroller Object: The comptroller object (4001 - 5999; 6201 - 7415) used here should be the object used originally to issue the warrant (usually 4200 Office Supplies) Related Transactions: TC 565: Establish or Adjust Cash on Hand for governmental funds TC 500: Record Prepaid Expense/Deferred Charges/Inventories - Proprietary and Fiduciary Funds Usage: To record an asset (prepaid items, deferred charges or inventory) when expenditures (budgetary) are made with transaction codes 222, 225, or 226, where the asset cost has not expired. This transaction code is used in proprietary or fiduciary funds and allows the costs to be matched with the period in which they are used. Use transaction code 514 for Bond/COP deferred charges. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: At least once a year for inventories (month 13 is proper for this). Record prepaid expenses or deferred charges at the time they are incurred, and expense at least once a year thereafter. Transaction: DR General Ledger Account Required: 0600 Inventories-Materials and Supplies 0601 Inventories-Stores for Resale 0602 Prepaid Expenses 0603 Deferred Charges 0967 Net Pension Asset (DAS only) CR 3600 GAAP Expenditure Offset Requires Comptroller Object: Chapter I – Other Miscellaneous Transactions I - 34 Any Expenditure Object may be used (3111 - 5999; 6201 - 7415), but it should be the one used for the original expenditure. Related Transactions: TC 514: Establish Underwriter’s Discounts/Deferred Charges on Bonds/COPs Proprietary Funds TC 515: Record/Adjust Prepaid Expense - Governmental Funds TC 503: Record/Adjust Inventory - Governmental Funds TC 779: Expense Transfer Out - Prepaid Legal Fees - Proprietary Funds Usage: To record the prepayment of legal fees in a proprietary fund. T-code 780 must be processed with T-code 779 as a balanced transaction. The GAAP Expenditure Offset eliminates the expense for financial reporting purposes. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: Record prepaid expenses at the time they are incurred, and expense at least once a year thereafter. Transaction: DR 3500 Expenditure Control - Cash DR 0602 Prepaid Expenses CR 0070 Cash on Deposit With Treasurer CR 3600 GAAP Expenditure Offset Requires Comptroller Object: 4500 Professional Services 4550 Attorney General Legal Fees Related Transactions: TC 780: To record receipt of prepaid legal fees as deferred revenue - proprietary and fiduciary funds TC 780: Revenue Transfer In - Prepaid Legal Fees - Proprietary Funds Usage: To record the receipt of prepaid legal fees as deferred revenue in a proprietary fund. This entry is generated by the paying agency. T-code 779 must be processed with Tcode 780 as a balanced transaction. Revenue is recorded for budgetary purposes while the GAAP Revenue Offset eliminates the revenue for financial reporting purposes (since it has not been earned yet). Use T-code 493 to recognize the earned portion. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: Record at the time the prepayment is received. Chapter I – Other Miscellaneous Transactions I - 35 Transaction: DR 0070 Cash on Deposit With Treasurer DR 3200 GAAP Revenue Offset Comptroller Object 0407 Other Charges for Services CR 3100 Revenue Control - Cash CR 1604 Deferred Revenue - Document Supported Related Transactions: TC 779: To record prepayment legal fees - proprietary and fiduciary funds TC 493: To recognize the earned portion of deferred revenue Chapter I – Other Miscellaneous Transactions I - 36 This page intentionally left blank. DEFERRED REVENUE TRANSACTIONS Governmental, Proprietary and Fiduciary Funds TC 164: Receipt of Deferred Revenue - No Document Support – Governmental, Proprietary and Fiduciary Funds Usage: When amounts are received by an agency that have not yet been earned (the amount is available, but not measurable) it must be recorded as deferred revenue for GAAP purposes. For budgetary purposes the amount is considered revenue. This transaction allows the user to record the receipt of cash and deferred revenue. The GAAP Revenue Offset eliminates the revenue for GAAP financial reporting purposes. This entry may be used in both governmental and proprietary type funds. Transaction code 492 is used when the deferred revenue has been earned. Affects: Trial Balance, Budgetary Operating Statements, and GAAP Operating Statements Record in R*STARS: When cash is received. Transaction: DR 0065 Unreconciled Deposit DR 3200 GAAP Revenue Offset Requires Comptroller Object: The following groups of Comptroller objects are allowed: 0111 - 1200,1404 - 1405,1501 - 1750, 2000 - 2600 The object reflecting the correct revenue should be selected from the above. CR 1603 Deferred Revenue - Non-Document Supported CR 3100 Revenue Control - Cash See account 3200 for comptroller objects Related Transactions: TC 492: Recognize Earned Portion of Deferred Revenue-No Document Support TC 170: Receipt of Deferred Revenue - Document Supported - Governmental, Proprietary and Fiduciary Funds Usage: This transaction allows the user to record the receipt of cash (the budgetary revenue) and set up a liability for Deferred Revenue. The GAAP Revenue Offset eliminates the revenue for GAAP financial reporting purposes. This entry may be used in both governmental and proprietary type funds. Transaction code 493 is used when the deferred revenue has been earned. Affects: Trial Balance, Budgetary Operating Statements, and GAAP Operating Statements Record in R*STARS: When cash is received. Chapter I – Deferred Revenue Transactions I - 37 Transaction: DR 0065 Unreconciled Deposit DR 3200 GAAP Revenue Offset Requires Comptroller Object: The following groups of Comptroller objects are allowed: 0111 - 1200,1404 - 1405,1501 - 1750, 2000 - 2600 The object reflecting the correct revenue should be selected from the above. CR 1604 Deferred Revenue - Document Supported CR 3100 Revenue Control - Cash See account 3200 for comptroller objects Related Transactions: TC 493: Recognize Earned Portion of Deferred Revenue-Document Supported TC 443: Move Deferred Revenue/Cash Out TC 444: Move Deferred Revenue/Cash In TC 443: Move Deferred Revenue/Cash Out - Governmental, Proprietary and Fiduciary Funds Usage: To move deferred revenue and cash collected which was originally recorded with TC 170 out. It is used as a balanced transaction with TC 444, and may be used within a fund or between funds within an agency. TC 443 should not be used for transactions between agencies. This transaction reports revenue for budgetary purposes while the GAAP Revenue Offset eliminates the revenue for financial reporting purposes. Affects: Trial Balance, Budgetary Operating Statements, and GAAP Operating Statements Record in R*STARS: When it is determined that deferred revenue was recorded incorrectly. Transaction: DR 1604 Deferred Revenue - Document Supported DR 3100 Revenue Control - Cash See account 3200 below for comptroller objects CR 0070 Cash on Deposit with Treasurer CR 3200 GAAP Revenue Offset Requires Comptroller Object: The following groups of Comptroller objects are allowed: 0111 - 1200, 1404 - 1405, 1501 - 1750, 2000 - 2600 The object reflecting the revenue object originally used should be selected from the above. Related Transactions: TC 170: Receipt of Deferred Revenue - Document Supported TC 444: Move Deferred Revenue/Cash In Chapter I – Deferred Revenue Transactions I - 38 TC 444: Move Deferred Revenue / Cash In - Governmental, Proprietary and Fiduciary Funds Usage: To move deferred revenue and cash collected which was originally recorded with TC 170 in. It is used as a balanced transaction with TC 443 (move out), and may be used within a fund or between funds within an agency. It should not be used for transactions between agencies. This transaction reports revenue for budgetary purposes while eliminating it for GAAP reporting purposes. Affects: Trial Balance, Budgetary Operating Statements, and GAAP Operating Statements Record in R*STARS: When it is determined that deferred revenue was recorded incorrectly. Transaction: DR 0070 Cash on Deposit with Treasurer DR 3200 GAAP Revenue Offset Requires Comptroller Object: The following groups of Comptroller objects are allowed: 0111 - 1200, 1404 - 1405, 1501 - 1750, 2000 - 2600 The object reflecting the revenue object originally used should be selected from the above. CR 1604 Deferred Revenue - Document Supported CR 3100 Revenue Control - Cash See account 3200 above for comptroller objects Related Transactions: TC 170: Receipt of Deferred Revenue - Document Supported TC 443: Move Deferred Revenue/Cash Out TC 492: Recognize Earned Portion of Deferred Revenue - No Document Support Governmental, Proprietary and Fiduciary Funds Usage: To recognize the earned (measurable) portion of revenue that was deferred with transaction code 164. The GAAP Revenue Offset reports the additional revenue for financial statement purposes only since it has already been reported for budgetary purposes. The effect of this transaction is to reduce the amount of deferred revenue reported by the amount earned and to record the revenue earned for GAAP financial statement purposes. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: As deferred revenue is earned. Review the balance of deferred revenue for possible earned portions on a regular basis (monthly would be appropriate). Chapter I – Deferred Revenue Transactions I - 39 Transaction: DR 1603 Deferred Revenue - Non-Document Supported CR 3200 GAAP Revenue Offset Requires Comptroller Object: The following groups of Comptroller objects are allowed: 0111 - 1200, 1404 - 1405, 1501 - 1750, 2000 - 2600. The object reflecting the revenue object originally used should be selected from the above. Related Transactions: TC 164: Receipt of Deferred Revenue - No Document Support TC 493: Recognize Earned Portion of Deferred Revenue - Document Supported Governmental, Proprietary and Fiduciary Funds Usage: To recognize the earned (measurable) portion of revenue that was deferred with transaction code 170. The effect of this transaction is to reduce the amount of deferred revenue reported by the amount earned and to record the revenue earned for GAAP financial statement purposes. Affects: Trial Balance, GAAP Operating Statements Record in R*STARS: As deferred revenue is earned. Review the balance of deferred revenue for possible earned portions on a regular basis (monthly would be appropriate). Transaction: DR 1604 Deferred Revenue - Document Supported CR 3200 GAAP Revenue Offset Requires Comptroller Object: The following groups of Comptroller objects are allowed: 0111 - 1200, 1404 -1405, 1501 - 1750, 2000 – 2600. The object reflecting the revenue object originally used should be selected from the above. Related Transactions: TC 170: Receipt of Deferred Revenue - Document Supported TC 443: Move Deferred Revenue/Cash Out TC 444: Move Deferred Revenue/Cash In Chapter I – Deferred Revenue Transactions I - 40 This page intentionally left blank. PRIOR PERIOD ADJUSTMENTS TC 113: Prior Period Adjustment/Revenue Usage: To record revenue which was supposed to be recorded in a prior year, but is being recorded currently only due to an error. Also, use this T-code to record post closing financial statement adjustments and revenue adjustments due to accounting changes. Only use this transaction code if the prior year is closed in R*STARS. The revenue transaction will affect current cash position for control purposes, but for financial statement purposes, the revenue should be recorded as a prior period adjustment. Receipt of the revenue will affect current revenue balances for budgetary reporting and control, but the revenue will be reclassified to a prior period adjustment for GAAP reporting. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: When prior period adjustment to revenue is known. Transaction: DR 3200 GAAP Revenue Offset Requires Comptroller Object: The following groups of Comptroller objects are allowed: 0111 - 1200, 1404 - 1405, 1500 - 1700, 1900, 2000 - 2639, and 2670. CR General Ledger Account Required 3060 Prior Period Adjustment 3062 Prior Year Post Closing Adjustment 3064 Accounting Change Related Transactions: TC 114: Prior Period Adjustment / Expenditure TC 119: Prior Period Adjustment / Expenditure for Distributions to State Agencies TC 114: Prior Period Adjustment/Expenditure Usage: To record an expenditure which was obligated in a prior year, but is only being recorded currently due to an error. Also, use this T-code to record post closing financial statement adjustments and expenditure adjustments due to accounting changes. Only use this transaction code if the prior year is closed in R*STARS. The expenditure transaction will affect current limitation for control purposes, but for financial statement purposes, the expenditure should be recorded as a prior period adjustment. Payment of the expenditure will affect current appropriation balances for budgetary reporting and control, but the expenditure will be reclassified to a prior period adjustment for GAAP reporting. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: When prior period adjustment expenditure is known. Chapter I – Prior Period Adjustments I - 41 Transaction: DR General Ledger Account Required 3060 Prior Period Adjustment 3062 Prior Year Post Closing Adjustment 3064 Accounting Change CR 3600 GAAP Expenditure Offset Requires Comptroller Object: Expenditure comptroller objects 3111 - 5999 or 6201 - 7600 may be used in this T-Code. Related Transactions: TC 113: Prior Period Adjustment/Revenue TC 119: Prior Period Adjustment/Expenditure for Distributions to State Agencies TC 119: Prior Period Adjustment/Expenditure for Distributions to State Agencies (GASB 38) Usage: To record an expenditure (distribution to a state agency) which was obligated in a prior year, but is only being recorded currently due to an error. Also, use this T-code to record post closing financial statement adjustments and expenditure distribution adjustments due to accounting changes. This T-code requires GASB 38 coding. Only use this transaction code if the prior year is closed in R*STARS. The expenditure transaction will affect current limitation for control purposes, but for financial statement purposes, the expenditure should be recorded as a prior period adjustment. Payment of the expenditure will affect current appropriation balances for budgetary reporting and control, but the expenditure will be reclassified to a prior period adjustment for GAAP reporting. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: When prior period adjustment expenditure (distribution to state agency) is known. Transaction: DR General Ledger Account Required 3060 Prior Period Adjustment 3062 Prior Year Post Closing Adjustment 3064 Accounting Change CR 3600 GAAP Expenditure Offset Requires Comptroller Object: Comptroller objects 6000-6200 may be used in this T-Code. G38 Code Required: Format: 8 characters XXX Agency receiving distribution XXXX Fund in Agency receiving distribution 0 (zero) Filler Related Transactions: TC 113: Prior Period Adjustment/Revenue TC 114: Prior Period Adjustment/Expenditure Chapter I – Prior Period Adjustments I - 42 TC 938: Reclassify Expenditure to Deposit Liability for Distributions to State Agencies (GASB 38) TC 124 Prior Period Adjustment/Transfers In Usage: To record a GAAP transfer in which was supposed to be recorded in a prior year, but is being recorded currently only due to an error. Only use this transaction code if the prior year is closed in R*STARS. The transfer transaction will affect current cash position for control purposes, but for financial statement purposes, the transfer in should be recorded as a prior period adjustment. Receipt of the transfer in will affect current revenue balances for budgetary reporting and control, but the transfer in will be reclassified to a prior period adjustment for GAAP reporting. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: When prior period adjustment to transfer in is known. Transaction: DR 3350 GAAP Transfers In Offset Requires Comptroller Object: The following group of Comptroller objects is allowed: 1286-1400. CR General Ledger Account Required 3060 Prior Period Adjustment 3062 Prior Year Post Closing Adjustment 3064 Accounting Change G38 Code Required: Format: 8 characters XXX Agency paying on Transfer XXXX Fund in Agency paying on Transfer 0 (zero) Filler Related Transactions: TC 125: Prior Period Adjustment/Transfers Out TC 125 Prior Period Adjustment/Transfers Out Usage: To record a GAAP transfer out which was supposed to be recorded in a prior year, but is being recorded currently only due to an error. Only use this transaction code if the prior year is closed in R*STARS. The transfer transaction will affect current cash position for control purposes, but for financial statement purposes, the transfer out should be recorded as a prior period adjustment. Receipt of the transfer out will affect current revenue balances for budgetary reporting and control, but the transfer out will be reclassified to a prior period adjustment for GAAP reporting. Affects: Trial Balance and GAAP Operating Statements Chapter I – Prior Period Adjustments I - 43 Record in R*STARS: When prior period adjustment to transfer out is known. Transaction: DR General Ledger Account Required 3060 Prior Period Adjustment 3062 Prior Year Post Closing Adjustment 3064 Accounting Change CR 3750 GAAP Transfers Out Offset Requires Comptroller Object: The following groups of Comptroller objects are allowed: 1401-1403, 1430, 1456, and 1801-1999. G38 Code Required: Format: 8 characters XXX Agency receiving Transfer XXXX Fund in Agency receiving Transfer 0 (zero) Filler Related Transactions: TC 124: Prior Period Adjustment/Transfers In Chapter I – Prior Period Adjustments I - 44 This page intentionally left blank. FINANCIAL STATEMENT ENTRIES TC 906: Estimated Accounts Payable Accrual with Auto-Reverse Usage: To establish or adjust an estimated accounts payable/revenue reduction amount for the month, quarter, or year for financial statement purposes. This will be reversed in the following month with auto-reversing T-code 986. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: When accrued revenue reduction or payable is recorded at a high level. Transaction: DR 3200 GAAP Revenue Offset Requires Comptroller Object: The following groups of Comptroller objects are allowed: 0111 - 1200, 1404 1455, 1457 - 1799, and 2000 - 2600. CR 1215 Accounts Payable Related Transactions: TC 986: Auto-Reverse Accounts Payable Accrual TC 908: Reclassify Revenue to Deposit Liability; Record Securities Lending Income Usage: To reclassify revenue to deposit liability for the month, quarter or year for financial statement purposes. This transaction does not auto reverse in the following month. The GAAP Revenue Offset eliminates revenue for financial reporting purposes only. Use T-code 908R to record securities lending income (comptroller object 0800) for year end financial reporting. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: Securities lending income should be recorded during month 13. Transaction: DR 3200 GAAP Revenue Offset Requires Comptroller Object: The following groups of Comptroller objects are allowed: 0111 - 1200, 1404 1455, 1457 - 1799, and 2000 - 2600. CR 1551 Deposit Liability - Without DF Support Related Transactions: TC 909: Change Expenditure to Deposit Liability; Record Securities Lending Expense-No Auto Reverse Chapter I – Financial Statement Entries I - 45 TC 909: Reclassify Expenditure to Deposit Liability; Record Securities Lending Expense Usage: To reclassify an expenditure to deposit liability for the month, quarter or year for financial statement purposes. This transaction does not auto reverse in the following month. The GAAP Expenditure Offset eliminates expenditures for financial reporting purposes only. Use T-code 909R to record securities lending expenses (comptroller object 4740) for year end financial reporting. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: Securities lending expense should be recorded during month 13. Transaction: DR 1551 Deposit Liability - Without DF Support CR 3600 GAAP Expenditure Offset Requires Comptroller Object: Comptroller objects 3111 - 5999 or 6201 - 7415 may be used in this T-Code. Related Transactions: TC 938: Change Expenditure to Deposit Liability-No Auto Reverse-G38 TC 908: Change Revenue to Deposit Liability; Record Securities Lending Income-No Auto Reverse TC 915: Accrue Due From Other Funds Within Agency Usage: To record due from other funds within an agency. This transaction code must be used with TC 916 as a balanced transaction, and may be used within a fund or between funds within an agency. It should not be used for transactions between agencies. The GAAP Revenue Offset records revenue for financial reporting purposes only. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: When accrued revenue resulting from an interfund transaction within the agency is recorded at a high level. Transaction: DR 0586 Due from Other Funds CR 3200 GAAP Revenue Offset The following groups of Comptroller objects are allowed: 0111 - 1200, 1404 - 1455, 1457 - 1799, and 2000 - 2600. Agency General Ledger Account Required: Format: 8 characters XXX Agency that owes on distribution XXXX Fund in Agency that owes on distribution 0 (zero) Filler Chapter I – Financial Statement Entries I - 46 Related Transactions: TC 916: Accrue Due to Other Fund Within an Agency TC 938: Reclassify Expenditure to Deposit Liability for Distributions to State Agencies (GASB 38) Usage: To reclassify a distribution expenditure to a State Agency to deposit liability for the month, quarter or year for financial statement purposes. This transaction does not auto reverse in the following month. This T-code requires GASB 38 coding. The GAAP Expenditure Offset eliminates expenditures for financial reporting purposes only. This T-code is for distributions to other state agencies. Affects: Trial Balance and GAAP Operating Statements Record in R*STARS: Distribution corrections should be recorded during month 13. Transaction: DR 1551 Deposit Liability - Without DF Support CR 3600 GAAP Expenditure Offset Comptroller objects 6000 - 6200 may be used in this T-Code. G38 Code Required: Format: 8 characters XXX Agency receiving distribution XXXX Fund in Agency receiving distribution 0 (zero) Filler Related Transactions: TC 909: Reclassify Expenditure to Deposit Liability; Record Securities Lending Expense-No Auto Reverse Chapter I – Financial Statement Entries I - 47