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TASSCUBOAccounting Principles Committee

Summer MeetingJuly 17, 2012

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AGENDA

I. Service Center Activity Whitepaper - Elimination of Service Center Activity II. TASSCUBO APC Fund Definitions III. Change due date for SEFA/ARRA Reconciliation to State ComptrollerIV. Due Date for IFRSV. Classification of Nursing Shortage Reduction Funds   

 

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AGENDA

VI. Calculation of Indirect Cost for Athletics NCAA Report

VII. GASB UpdateVIII. NACUBO APC UpdateIX. Nominations and Selection of next APC ChairX. Other Business

   

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Service Center Activity Whitepaper

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AFR Issues – Elimination of Svc Center ActivityWhite paper draft ready for approval Proposes uniform method of accountingBegin by identifying all service department

income generated by internal charges Total income will be the debit on the elimination

entryCorresponding service charges are sorted by

natural classification, and will be the credits on the entry

JE is prepared using natural classification of expense and functionMicrosoft Word

97 - 2003 Document

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SERVICE DEPARTMENTSCREDIT FOR SALES AND SERVICES

FOR THE YEAR ENDED AUGUST 31, 2012         

DESCRIPTION ACCOUNT # INCOME O/CExpense O/C Description

         Mail Service Revolving Fund 18-1773-30 $ 78,950.26 3701 Postal ServicesMail Service Postage Revolving Fund 18-1773-39 $ 347,381.11 3701 Postal ServiceMail Service Envelope Revolving Fund 18-1773-41 $ 594.05 3701 Postal ServicesFacilities Services Clearing Account 18-1775-65 $ 266,851.43 3701 Other IncomeCommunity & Information Prod Fund 18-1800-00 $ 283,067.40 3701 Printing ServicesTransportation Services 18-2500-00 $ 70,435.18 3701 Rental AutoCopy Center 18-2520-00 $ 337,225.70 3701 Printing ServicesComputer Center 18-2530-00 $ 2,875,921.00 3701 Data Processing SvcsPrinting Division 18-2550-00 $ 653,826.97 3701 Printing ServicesWarehouse Center 18-2565-00 $ 343,783.23 3701 Other IncomeCentral Energy Plant 18-2570-00 $ 2,887,850.00 3701 ElectricityNTSD - Telecommunications 18-2610-00 $ 1,739,153.18 3701 TelecommIT - Telecommunication Revolving Fund 18-2610-30 $ 65,446.99 3701 TelecommIT - PC Support Revolving Fund 18-2610-40 $ 22,978.08 3701 Other IncomeStatistical Consulting Lab 18-3040-00 $ 26,230.54 3701 Other Income             $ 9,999,695.12 3701 Sales & Services

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BY OBJECT CODE and Function:

1315 Institutional Support Postal Services $ 426,925.42 1357 Institutional Support Printing Services $ 1,274,120.07 1525 Institutional Support Other Expenses $ 659,843.28 1728 Institutional Support Rental Auto $ 70,435.18 1761 O&M of Plant Electricity $ 2,887,850.00 1780 Institutional Support Telecomm $ 1,804,600.17 1307 Institutional Support Data Processing $ 2,875,921.00

3701 Sales & Services $ 9,999,695.12

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TASSCUBO APC Fund Definitions - Update

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APC Fund Group DefinitionsAPC issued a document in May 2006 on Fund

Group DefinitionsGood document but needs revisingI will send out on Listserv for suggested

changes

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Due Date for SEFA/ARRA Reconciliation to State

Comptroller

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SEFA-ARRA Recon Due DateFor FY 2011 SEFA to ARRA reconciliation was

due to State Comptroller’s Office on November 20

Recon could be cumbersome and sometimes required adjustments to Schedule 1A (SEFA)

This caused problems for AFR consolidations as they were already completed

No change on final date for 2012

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SEFA-ARRA Recon Due DateSept. 18 – Initial Certification

Certifies that agency entered their interagency federal pass-through records (including accruals) into the SEFA Web application

Sept. 19 – Sept. 25 – SEFA Interagency Federal Pass-Through Reconciliation Period

Sept. 26 – Interagency Federal Pass-Through Certification

Nov. 1 – Final Certification

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Nov. 2, 2012 – SEFA/ARRA Reconciliation available onlinePreliminary ARRA Section 1512 report data will

be provided by the federal government and uploaded to the SEFA/ARRA Reconciliation option within the SEFA Web application

Nov. 20, 2012 – SEFA/ARRA Reconciliation Certification DueThis certifies that all ARRA expenditures for the

current fiscal year are accounted for and reconciled to SEFA at the CFDA level

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Date Change for IFRS due to Impact on Source and Uses

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IFRS Date ChangeIntegrated Financial Reporting System

(IFRS) has been due on December 31 to THECB

Sources and Uses Report is due to THECB by December 1

Information in IFRS often requires editing of Sources and Uses, despite reconciliation template provided by THECB

Date for 2012 IFRS has been changed to December 1 (actually December 3rd due to weekend)

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IRFS Date ChangeTHECB Recommendations:

Ensure IFRS reconciles to Sources and Uses by utilization of provided template

Have reports prepared by, or at a minimum certified by, Accounting group

Ensure Comptroller’s guidance is followed annually

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Indirect Cost for Athletics NCAA Report

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IDC for NCAA ReportNCAA requires a very detailed report on

Athletic activity by gender and sportLine 32 asks for Indirect Facilities and

Administrative SupportThere is not a standard method to calculate

the IDC“…support may include an allocation for

institutional administrative cost, facilities and maintenance, grounds and field maintenance, security, risk management, utilities, depreciation, and debt service.”

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IDC for NCAA ReportAt UT-El Paso we include:

Building DepreciationAllocation of utilities that are not already direct

billed to AthleticsGeneral Administration, calculated as a

percentage of total Athletic expensesFirst two elements are straight forward:

Building use for Athletics is analyzed and apportioned if necessary

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IDC for NCAA ReportAdministrative Cost Measure %, which is

reported to LBB, is applied to total Athletic Expenses

ConsiderationsReport is required to be auditedAs IDC counts as support from University,

beware of showing too high of a number

Microsoft Excel Worksheet

Package

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GASB Update

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GASB Update – Statement 64GASB Statement No. 64, Derivative

Instruments: Application of Hedge Accounting Termination Provisions, becomes effective in 2012

Establishes criteria when the effective hedging relationship continues and hedge accounting should continue to be applied after the replacement of a swap counterparty or a swap counterparty’s credit support provider.

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GASB Update – New Statements in Effect in 2013Statement No. 60, Accounting and Financial

Reporting for Service Concession Arrangements, effective 2013, addresses issues related to service concession arrangements (SCAs), which are a type of public-private or public-public partnership. This Statement applies only to those arrangements in which specific criteria determining whether a transferor has control over the facility are met.

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GASB Update – New Statements in Effect in 2013Statement No. 61, The Financial Reporting

Entity: Omnibus – An Amendment of GASB Statements No. 14 and No. 34, effective 2013, modifies certain requirements for inclusion of component units in the financial reporting entity.

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GASB Update – New Statements in Effect in 2013Statement No. 63, Financial Reporting of

Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, effective 2013, provides financial reporting guidance for deferred outflows of resources and deferred inflows of resources.

This Statement will have the largest impact on Higher Education as it will change the presentation of our financial statements.

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NACUBO APC UpdateJ. Carlos Hernandez

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Nominations and Selection of next APC Chair

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APC Chair2 Year TermMeetings should be held quarterlyCurrently, one nominated person:

David Ellis, University of Houston

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Other Issues