BAR Update October 2014
Financial Statements
Fixed Assets
 Making a change to FAE Building report (MM5102J) so it will include commodity groups 0501 –
0549. Email went to FSWG and BAR on 10/7/14.
 Other records FAE will ignore – invalid fund, invalid commodity code
 Some updates to equipment commodity groups (useful lives used by FAE) – some of OFM’s
changes were missed over the years –sent email notifying colleges what to expect (on FY15
CR2128). Will also provide info to each college that will likely show this is not material so no
adjustment necessary to the FY14 statements. Still analyzing, but don’t expect it to be material
to any individual colleges’ financial statements.
 In some cases, our equipment commodity group code functions ok, but doesn’t match
OFM. We’re working with ctcLink so these will be converted then. In the meanwhile, there is
no impact to the F/S, so we’re not updating the commodity group code.
 Most significant difference in commodity groups between FAE and SAAM is code 0300. It is best
to avoid use of this code. For the four colleges that have used it (Bellingham, Seattle, Skagit,
South Puget Sound) be aware that those records will be treated as inexhaustible art assets when
we convert to ctcLink.
FAE does not include certain equipment-related commodity groups on the CR2128. If a code is disabled,
you can still enter records, but you get an error message on the CR2111A and it will not include it on the
CR2128. If a commodity group has a useful life of 0, you will get a warning message on the CR2111A and
it will not include it on the CR2128 (equipment only). We’ll include this in the analysis we’ll send to each
college.
Work with pilots on rolling forward net position, comparative statements, changes to notes and MD&A
Still working towards: Service Concession Arrangements, GASB 65 and pensions
Audit Results
 Tacoma had exit conference and audit report is expected any day. Walla Walla and Peninsula
are scheduling exits.
 Exit items we’re aware of so far have been related to internal controls and isolated transactions:
having a designated internal control officer and performing an annual risk assessment, approval
process for user access to HP9000 screens, disabling HP9000 access for former employees,
verifying entries in the FAE system, signatures on appointment letters, an employee
overpayment, calculation of course fees.
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Very late in process, we realized we had not booked a receivable to show the amount the state
owes the colleges for spending from current year operating and capital appropriations that was
not reimbursed to the colleges until July or August. The auditor is not requiring pilot colleges to
make an adjustment for FY13, but all colleges will need to book the receivable for
FY14. Instructions will be coming out soon.
Audit Schedule
 We’ve been working with SAO on timing of the FY14 audits. We have a matrix that shows which
audit team will be assigned to each audit – and when each audit team is available.
 Joann will be contacting colleges as groups, according to which audit team is expected to
perform the audit, to discuss the feasibility of the times proposed.
 Each college will enter into a contract with SAO for audit services. The contract will include a
date by which the college’s financial statements will be ready for audit.
 Auditor wants to increase budget to 350 hours (pilot budget was 300 hours)
Accountability Audits
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Still having discussion with auditors about how much revolving funds are available to pay for
these audits.
Auditors want to audit five colleges before June 30th (but SBCTC doesn’t believe there is that
much revolving fund money available.)
Accreditation
NWCCU letters generally include the following statements:
 “the commission requests that the college address recommendation x in an Ad Hoc report in
Fall/Spring 201x”
 “the Commission determined that recommendation x…is an area where the college does not
meet the Commission’s criteria for accreditation”
 “According to U.S. Department of Education Regulation 34 CFR 602.20 and Commission
Policy…the Commission requires that the College take appropriate action to ensure
Recommendation x id addressed and resolved within the prescribed two-year period.” (For at
least one college, the words “within the proscribed two year period were omitted, but the
regulation showing the two-year period was attached.
FY14 Statements – Progress and Issues
 Cash Flow Statement –NOW ALL COLLEGES’ CASH FLOW STATEMENTS ARE BALANCED!
 This doesn’t mean you get to ignore cash flow – you will need to keep it in balance – and you
may find you need to re-categorize some activity.
 Updates to will begin to trickle out. Last year we kept a cumulative list of changes to the notes
(only). This year we’re keeping a cumulative list of all changes (any changes to the checklist,
spreadsheets, any accounting treatment changes, changes to notes, changes to MD&A).
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All of this will be distributed via the fswg list (not the BAR or BAC lists). We added everyone who
attended a financial statement workshop to this list. If you have others from your college who
you would like to have added, let Joann or Jason know.
If we make changes or discover issues with broader implications than financial statements, we’ll
use the BAR and BAC lists, as usual.
FAM Updates – Progress to Date is minimal
Expect to make changes ranging from
 correcting typos,
 wording clarifications,
 correcting errors in accounting treatment,
 describing differences in accounting treatment between CAFR and college F/S
 ctcLink
Give that Joann’s time is limited – question to BAR - How should we vet any changes or
additions before publishing? Should this differ depending on the type of change?
ctcLink related activity
 working on crosswalk of ctcLink data to AFRS trans codes
 working on design of SBCTC data warehouse so we have access to ctcLink financial data (similar
to FAE data)
 ongoing conversations about grants and contracts, time and effort, etc..
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Printing at SBCTC Bellevue
Will contact some colleges?
Equipment Reserve
Received requests from almost all of the colleges! – Thanks!
Alternate Pay Dates
Submitted request to OFM
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