Accounting & Reporting Updates

Denise Nguyen

October 23rd, 2015

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• Reminders:Tuition waivers – work with Brian

Myhre/Senior Budget AnalystCorrect monthly error reports SMART checklists:

review and identify errors you can fix throughout the year

track your interagency & interfund

payables/receivables

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Disclosure forms during closing• Misinterpretation of the disclosure forms• All fields in the disclosure forms need to be filled

out. Mark N/A if it does not apply to your college• On the federal pass thru disclosure, make sure

you put the contract #s for each entity • Provide explanations for variances on federal

direct form• Loans disbursed to students are not a pass

through to subrecipient• Incorrect CFDA #s, amounts (affect the SEFA)

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Primary recipient vs. subrecipient• Primary recipient gets awarded directly from a

federal agency: report on the state disclosureform to go on the Schedule of Expenditures of Federal Awards. SAO uses this schedule to determine which programs to audit.

• Subrecipient receives pass-through grant fund from another state agency: this does not get reported on the SEFA or it would be a duplication.

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Examples:College was awarded a grant from a federal agency: report the amount reimbursed on the SEFA/disclosure form.

College received a pass-through funding from the Department of Commerce: use object S to wipe out expense at year end. If the college passes on to another local entity use object SX.

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GASB 68 reporting• DRS prepared the Participating Employer

Financial Information (PEFI): shows the proportionate share percentage for each college.

• OSA: calculated estimated the net pension liability (NPL)

• OFM: calculated the state portion for the CAFR• SBCTC: calculates the proportionate share for

each college for the financial statements. These calculations do not go in to AFRS

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Required calculations:• Net Pension Liability

• Pension Expense

• Deferred outflows: of resources represent a consumption of fund equity that will be reported as an outflow of resources (expenditure/expense) in a future period.

• Deferred inflows: of resources represent an acquisition of fund equity that will be recognized as an inflow of resources (revenue) in a future period. In governmental fund type accounts, a deferred inflow of resources is reported when revenues do not meet the available recognition criteria.

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FYI –• We participated in PRS 1/2/3 and TRS 1/2/3• None of these plans have assets• PRS 1 and TRS 1 are underfunded. Other plans contribute to these

plans to fulfill the underfunded portion• PRS 1 and TRS 1 do not have an amortization schedule. Any

increase/decrease in the proportionate share will be expensed or reduce the liability, respectively.

• Only PRS 2/3 and TRS 2/3 are required to amortize any increase/decrease in the proportionate share.

• All calculations used the Actuary’s numbers to be consistent. OFM chose to use this method as the difference between the Actuary’s numbers and the actual are immaterial.

• Calculations are for FY14 (a year behind). Activity in FY15 will be classified as deferred inflow/outflow.

• Our accounting system does not have the GLs needed for GASB 68. All entries are done and tracked manually for future use