Accounting & Reporting
Updates
Denise Nguyen
October 23rd, 2015
• Reminders:
Tuition waivers – work with Brian Myhre/Senior
Budget Analyst
Correct 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 disclosure
form 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
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