
Funds budgeted for a specific fiscal year must be
expensed in that fiscal year.

Services must be rendered and goods must be
received by August 31.

The Business Office will monitor the total future
travel costs being expensed in the current fiscal year.
If the aggregate cost is significant, a journal entry will
be posted to move the total amount from expense to
prepaid expense for financial reporting purposes.
This journal entry will be reversed in the subsequent
fiscal year, thereby expensing the costs in the
subsequent fiscal year.


The matching principle states that when you
recognize revenue, you should match related
expenses with the revenue.
The accrual accounting method, which is the
method used by the college, is based on this
principle, as it records financial transactions
as they occur, rather than when cash changes
hands.