September 16, 2015
Claire Arnold, CPA
Creating A More Educated Georgia
Fiscal Affairs Accounting
and Reporting Update
1
FY 2015 Financial Engagement Cycle
• Budgetary Basis Compliance Reports (BCRs) submitted and
reviewed
• Annual Financial Reports (AFRs) submitted and reviewed
• DOAA currently is working on completing your fiscal year 2015
engagements
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Where are we now?
2
FY 2015 Financial Engagement Cycle
• Please provide auditor adjustments to USO (Email
Claire.Arnold@usg.edu and Bruce.Jackson@usg.edu)
• Consolidation Process
• Institution confirmation of Surplus and BCR information
Email to be sent September 25:
Surplus by Institution (Excel File)
BCR Reports (Excel Files)
Balance Sheet by Institution
Teaching State Approp by Institution – Parts 1 & 2
Teaching Other by Institution – Parts 1 & 2
SFI by Institution – Parts 1 & 2
Research Consortium – Parts 1 & 2
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BCRs
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FY 2015 Financial Engagement Cycle
BCRs
AFRs
• Please provide auditor adjustments to USO (Email
Claire.Arnold@usg.edu, Ben.riden@usg.edu,
Theresa.Jackson@usg.edu and Brad Freeman@usg.edu)
• Submit updated AFRs to MoveIT application
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Submission to State Accounting Office on October 8, 2015
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FY 2015 Financial Engagement Cycle
AFRs
• Example of AFR changes submission:
Per Original AFR
Per Updated AFR
Change
Page
Statement of Net Position
Current Liabilities - Lease Purchase Obligations
Non Current Liabilities - Lease Purchase Obligations
Net Position - Net Investment in Capital Assets
Net Position - Total Net Position
$16,273,398
$448,903,974
$1,356,356,683
$1,289,189,712
$16,328,967
$448,693,429
$1,356,511,659
$1,289,344,688
$55,569
($210,545)
$154,976
$154,976
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17
17
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Statement of Revenues, Expenses, and Changes in Net Position
Nonoperating Revenues (Expenses) - Interest Expense (capital assets)
Net Position - End of Year
($25,843,264)
$1,289,189,712
($25,688,288)
$1,289,344,688
$154,976
$154,976
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19
($18,581,012)
($25,955,874)
($37,501,287)
$33,619,098
$0
$0
$0
($18,735,987)
($25,800,899)
$0
($2,634,081)
$105,674,412
($37,501,287)
($69,421,233)
($154,975)
$154,975
$37,501,287
($36,253,179)
$105,674,412
($37,501,287)
($69,421,233)
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20
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21
21
21
21
Statement of Cash Flows
CF from Capital and Related Financing Activities - Principal on Capital Debt/Leases
CF from Capital and Related Financing Activities - Interest on Capital Debt/Leases
Reconciliation of Operating Loss to Net Cash - Other Assets
Reconciliation of Operating Loss to Net Cash - Advances (note 7)
Reconciliation of Operating Loss to Net Cash -Deferred Inflows of Resources
Reconciliation of Operating Loss to Net Cash - Deferred Outflows of Resources
Reconciliation of Operating Loss to Net Cash - Net Pension Liability
Date sent to
BOR/Auditors
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Section of Report & Description of Change
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FY 2015 Financial Engagement Cycle
Note 6 - Capital Assets
Updated Text for GSFIC transferred capital additions…..
GSFIC
Insitutional
Allottments on Reimbursement Basis
$93,059,262
$0
$0
$59,288,598
$31,752,785
$2,017,879
Note 8 - Long Term Liabilities (Restated)
Lease Purchase Obligations - Reductions
Lease Purchase Obligations - Ending Balance
Lease Purchase Obligations - Current Portion
Net Pension Liability - Restated Beginning Balance
Net Pension Liability - Additions
Net Pension Liability - Reductions
Total Long Term Obligations - Reductions
Total Long Term Obligations - Ending Balance
Total Long Term Obligations - Current Portion
($18,581,012)
$465,177,372
$16,273,398
$0
$275,455,423
$0
($50,822,986)
$784,449,669
$44,030,037
($18,735,988)
$465,022,396
$16,328,967
$372,212,506
$0
($96,757,083)
($147,735,045)
$784,294,693
$44,085,606
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32
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($154,976)
($154,976)
$55,569
$372,212,506
($275,455,423)
($96,757,083)
($96,912,059)
($154,976)
$55,569
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AFRs
• Example of AFR changes submission:
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FY 2015 Financial Engagement Cycle
• Consolidation Process
• Institution confirmation:
Email to be sent October 5:
Statement of Net Position (SNP)
Statement of Rev, Exp & Changes in Net Position (SRECNP)
Cash Flow Statement
Confirmation of Information or changes must be emailed to
Theresa.Jackson@usg.edu and ben.riden@usg.edu by October 12
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AFRs
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• DOAA is currently conducting fieldwork on the audits
and FDMR engagements
• Exit Conference – Include USO Accounting and
Reporting
• Agreed Upon Procedures (AUP) engagements
postponed until January 2016
• Modifications to the AUP engagements
• Reduce testing to areas of importance – Balance Sheet Support; Bank
Reconciliations, Subsidiary Module reconciliations, SEFA, AFR reflects
accounting records activity, etc.
Creating A More Educated Georgia
FY 2015 Financial Engagement Cycle
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DOAA and USO have identified a few items that need to
be adjusted in the AFR. DOAA has agreed to make the
following changes:
Note 1: Net Position – Unrestricted:
Add final sentence:
Included in the net deficit reported is the College/University’s Net
Pension liability of $__________ which will be funded by
appropriating resources each year as payments come due, rather
than accumulating resources in advance.
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FY 2015 Financial Reporting Changes
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FY 2015 Financial Reporting Changes
Contributions: Per Title 47 of the O.C.G.A., contribution requirements of
active employees and participating employers, as actuarially determined,
are established and may be amended by the TRS Board. Contributions are
expected to finance the costs of benefits earned by employees during the
year, with an additional amount to finance any unfunded accrued liability.
Employees were required to contribute 6.00 % of their annual pay during
fiscal year 2015. The College/University’s contractually required contribution
rate for the year ended June 30, 2015 was 13.15 % of annual
College/University payroll. College/University contributions to TRS were
$XX,XXX for the reporting period (fiscal year ended June 30, 2015) and
$xx,xxx for the measurement period (fiscal year ended June 30, 2014).
Creating A More Educated Georgia
Retirement Plan Note Disclosure Change
(Per AFR email 9/1/2015)
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FY 2015 Financial Reporting Changes
Retirement Plan Required Supplementary Information
Schedule of Contributions will include data for FY 2015, 2014 and 2013.
ABC School District
Required Supplementary Information
Schedule of Contributions
Teachers Retirement System of Georgia
For the Year Ended June 30
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
$ XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
Contribution deficiency (excess)
$ XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
District’s covered-employee
payroll
$ XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
XX,XXX
X.XX%
X.XX%
X.XX%
X.XX%
X.XX%
X.XX%
X.XX%
X.XX%
X.XX%
X.XX%
Contractually required
contribution
Contributions in relation to the
contractually required
contribution
Contributions as a percentage
of covered-employee payroll
Creating A More Educated Georgia
(Dollar amounts in thousands)
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FY 2015 Financial Reporting Changes
• Related party footnote to Capital Lease Liability Table in Capital Lease note
disclosure
• Gain/Loss on Debt Refunding footnote to the Capital Lease Liability Table in the
Capital Lease note disclosure
• MD&A additional verbiage related to Net Pension Restatement of Net Position
• Special Item Transfer note disclosure additional verbiage for P3 assets and capital
lease liability transferred to USO
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Additional Items Identified that were communicated during the USO
Review process:
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FY 2015 Financial Engagement Cycle
• TIGA
Payments and Obligations due October 15
Immigration Reform Act due December 31
• SEFA – Changes Confirmation
• Response to Current Year Findings
Submit Response with Closure Letter documents
Submit to Findings Management System
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Reporting to DOAA
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FY 2015 Financial Engagement Cycle
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Response to Current Year Findings
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FY 2015 Financial Engagement Cycle
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What worked?
What didn’t work?
How can we improve?
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Financial Reporting For FY 2016
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Standardized Chart of Accounts
• Standardized Chart of Accounts verses SHARE Accounts
• Revisions to Chart of Accounts:
Goals:
Information
Institutional Functionality
• Chart of Accounts Committee
Committee Members: Bruce Spratt, Nick Henry, Julie Peterson, Ruth
Berger, Kim Brown, Jeff Hall, Michelle Hamm, budget representatives, and
ITS representatives
• Submit Suggestions to Claire.Arnold@usg.edu by October 16
• Timeframe – December 2 and 3
Creating A More Educated Georgia
Consistency
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December Workshop
Preliminary Topics:
• New Federal Expenditure Requirements/State Purchasing
• New Retiree Health Insurance Accounting Process
• Standardized Chart of Accounts
• Reviewing Audit Results
• oneUSG Update
• Joint Staffing/TRS Eligible Salaries
• GSFIC/MRR/PPV/Capital Improvements – Allowable/Unallowable
and Accounting
• AFR/BCR Improvement Discussion
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Dates: December 1 and 2
Location: Middle Georgia Math Auditorium
Time: Day 1 - 9:30 am to 5:00 pm
Day 2 - 8:30 am to 4:00 pm
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Uniform Federal Grant Guidance
• A-21
• A-50
• A-87
• A-89
• A-102
• A-110
• A-122
• A-133
Title 2 of CFR, Subtitle A, Chapter II, Part 200
UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES,
AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS
“SUPER CIRCULAR”
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Eight different OMB guidance streamlined into one. Eliminates overlapping duplicative
and conflicting guidance.
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Uniform Federal Grant Guidance
• Stronger Oversight
• Improved Business Processes
• Well Trained Workforce
• Targets Risk and Minimize Burden
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Intended Outcomes
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Uniform Federal Grant Guidance
 All awards or funding increments made on or after December
26, 2014 must adhere to the Uniform Guidance.
 Audit requirements are effective for fiscal years beginning on or
after December 26, 2014.
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Effective Dates section 200.110
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Procurement Claw
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Procurement Claw
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Micro Purchases:
• New term for supplies and services purchased, where the aggregate
dollar amount is under $3,000.
• To the extent practical, must be distributed equitably among
qualified suppliers.
• If your college/university considers the price reasonable after price
analysis, the micro-purchase may be awarded without soliciting
competitive quotes.
• Many college/university have procurement policies with a minimum
of $5,000 and will need to lower this minimum to $3,000 to ensure
they meet the requirement.
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Methods of Procurement
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Methods of Procurement
• Existing term for supplies and services purchases, where the
aggregate dollar amount is under $150,000.
• The amount will be adjusted for inflation using the Simplified
Acquisition Threshold.
• Price or rate quotations must be obtained from an adequate
number of qualified sources.
• Must obtain quotes from more than one vendor.
• Quotes can be written, verbal, or internet searches but must be
documented.
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Small Purchases:
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Sealed Bids: (Formal Advertising)Existing term for supplies and
services purchases, where the aggregate dollar amount is over
$150,000.
• Bids are publicly solicited and a firm-fixed-price contract (lump sum
or unit price) is awarded to the responsible bidder whose bid,
conforming with all the material terms and conditions of the
invitation for bids, is the lowest in price.
• Preferred method for construction projects funded with federal
grant funds.
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Methods of Procurement
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Competitive Proposals:
• Existing term for supplies and services purchases, where the
aggregate dollar amount is over $150,000.
• Used when conditions are not appropriate for the use of sealed
bids.
• Conducted when there is more than one source submitting an offer
and either a fixed-price or cost-reimbursement type contract is
awarded.
• New requirement: Non-Federal entities must have a written method
for conducting technical evaluations of the proposals received and
for selecting recipients.
Creating A More Educated Georgia
Methods of Procurement
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Non-Competitive Bids: (Sole Source)
• Existing term for supplies and services purchased, of any dollar
amount
• Can only be used if (one or more, are applicable):
• The item is only available from a single source.
• The public exigency or emergency for the requirement will not
permit a delay resulting from competitive solicitation.
• The federal awarding agency expressly authorizes non-competitive
proposals in response to a written request.
• Competition is deemed inadequate after solicitation from multiple
sources.
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Methods of Procurement
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• 200.319: Contains language that prevents contractors who develop
or draft specifications, requirements, statements of work, and
invitations for bids or requests for proposals from competing for
such procurements.
• 200.319c: Written procedures for procurement transactions are still
required.
• August 2014 FAQ 200.320-6 –Clarifies that the Federal procurement
standards are not required to apply to procurements made (charges
to) the indirect cost pool and apply only to goods or services that
are directly charged to a Federal award
• The non-Federal entity must maintain oversight to ensure that
contractors perform in accordance with the terms, conditions, and
specifications of the contract or purchase order.
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Other Procurement Items to Note
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• All non-Federal entities will need to update their internal
procurement policies to reflect the changes described in the
Uniform Guidance.
• Important that a recipient’s procurement policies identify the five
allowable methods outlined in Section 200.320 (“the claw”).
• Ensure your institution’s current employee conflict of interest
policies include the required language.
• Ensure the mandatory organizational conflict of interest policy is
written, if applicable.
• Review Appendix II to ensure your institution’s contracts include the
required specifications.
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Other Procurement Items to Note
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