COMMUNITY COLLEGE’S
BUDGET AND ACCOUNTING MANUAL
2012 EDITION
Community College Internal Auditor’s Fall Conference
October 4, 2012
Prepared by Heidi E. White, CPA
VAVRINEK, TRINE, DAY & CO., LLP

KEY COMPONENTS TO THE 2012 EDITION

Who is Responsible for Updates and Changes?

Why Did the BAM Change?

What Was Changed?

What was Added

When is it Effective?

RESPONSIBILITY FOR UPDATES & CHANGES

Education Code Section 70901

The Board of Governors of the California
Community Colleges shall provide leadership and direction in the continuing development of the
California Community Colleges . . . .

CA Code of Regulations, Title 5 Section 59011

RESPONSIBILITY FOR UPDATES & CHANGES

College Finance and Facilities Planning Division of the State Chancellor’s Office

Association of Chief Business Officials Board

Fiscal Standards and Accountability Committee

District Personnel

State Chancellor’s Office Personnel

WHY DID THE BAM CHANGE?

WHY DID THE BAM CHANGE?
A.
To Bring Clarity to Accounting Standards
B.
Provide Consistent Direction to District
Personnel
C.
Update Prior Direction to Conform with Current
Accounting Guidance
D.
To Give the Fiscal Standards Committee a
Project to focus on
E.
All of the Above

OVERALL REVISION CONCEPTS
 Provide for a open format for more frequent change in the future
 Each Chapter is a separate document which will allow changes to specific areas rather than wait for another 12 years for an update
 Provide reference materials to allow District staff to research issues and questions

WHAT WAS CHANGED?

Chapter 1 - Introduction

Specific websites for GASB, OMB and the
Chancellor’s Office Guidance was included as a hyperlink to allow access for more review and research by District staff.

Included budgeting and other dates that are important in the financial reporting requirements

Requirements of Accreditation Standard 3 were included

References to the California CCR’s included

WHAT WAS CHANGED?

Chapter 2 – Fund/Structure

References have been removed related to the
General Fixed Asset and General Long Term Debt
Account Groups

Added additional Funds in the Capital Project Fund
Type to reflect the General Obligation Bond Fund
(Fund 43) and Other Capital Project Funds (Fund
4X)

Provides references to possible Unrelated Business
Income within the Enterprise Funds

WHAT WAS CHANGED?

Chapter 3 – Revenue and Financing Sources

References to OMB Circular A-21 “ cost Principles for Education Institutions”

Website reference for the Catalog of Federal
Domestic Assistance (CFDA) numbers

Provides some guidance on the Redevelopment
Funds - - - information is still fluid

New guidance from GASB to recognize Bad Debt as a contra-revenue to student enrollment fees – NOT an operating expense

WHAT WAS CHANGED?

Chapter 3 – Revenue and Financing Sources

References the Student Fee Handbook that is included on the Chancellor’s Office website

Provides guidance for the Student Parking and
Transportation Fees to be accounted for within the
Restricted General sub-fund.

Provides guidance for the Prop 20 Lottery Funds to be included within the Restricted General sub-fund

WHAT WAS CHANGED?

Chapter 4 – Expenditures and Other Outgo

Focus is on Activity Codes as well as Object Codes

Administrative and Support Activities references language for Faculty reased from instruction

Language for Supplies and Operating expenses was clarified for Software and licensing agreements as necessary

Mirrors reference for bad debt to be included as a
Contra Revenue

WHAT WAS CHANGED?

Chapter 4 – Expenditures and Other Outgo

Updated Language for Capital Outlay expenditures to conform to current GASB guidance related to non print media for Libraries and intangible assets such as software and licensing.

Updated threshold for an inventory for equipment purchases.

WHAT WAS CHANGED?

Chapter 5 – The Balance Sheet

Provides greater guidance and information in defining Fund Balance Classifications in accordance with GASB Statement 54 “ Fund
Balance Reporting and Governmental Fund Type
Definition”. This pronouncement requires fund balance designations for external reporting.

NonSpendable Restricted Committed
Assigned Unassigned

WHAT WAS CHANGED?

Chapter 5 – The Balance Sheet

Provides greater guidance and information in defining Fund Balance Classifications in accordance with GASB Statement 54 “ Fund
Balance Reporting and Governmental Fund Type
Definition”. This pronouncement requires fund balance designations for external reporting.

NonSpendable Restricted Committed
Assigned Unassigned

WHAT HAS BEEN ADDED?

Chapter 6 – Governmental Account
And Reporting - - All new information within the Budget and Accounting
Manual

WHAT HAS BEEN ADDED?

Chapter 6 – Describes the GASB Statement 35 reporting model.

By placing this in the Budget and Accounting Manual, the emphasis is that the external reporting of the
Community College Districts under GASB Statement
35 is the responsibility of the District not the external auditors.

The specific guidance includes discussions related to . . . . .

WHAT HAS BEEN ADDED?

Chapter 6 – Describes the GASB Statement 35 reporting model.


Management’s Discussions and Analysis


Introduces the financial statements.
Provides an objective and easily readable narrative of the financial activities, programs and services
Statement of Net Assets

Statement of Revenues, Expenses and
Changes in Net Assets

Statement of Cash Flows

WHAT HAS BEEN ADDED?

Chapter 6 – Describes the GASB Statement 35 reporting model.

Required Supplementary Information

Reconciliations of Governmental (modified accrual) Statements to the Entity-Wide (full accrual) Statements

Typical consolidation and Conversion Entries for financial statement reporting

WHAT HAS BEEN ADDED?

Chapter 7 – Special Accounting Issues

Guidance related to Cash Accounts

Guidance related to Lease Accounting

Designed to be expanded when needed

What other issues might be included here?

WHAT HAS BEEN ADDED?

Subject Index

Glossery

Common Categorical Restricted Programs for both Federal and State

Reference to pertinent Fiscal and Legal
Advisories

New reference to current guidance from the
Governmental Accounting Standards Board

WHEN IS THE BAM EFFECTIVE?

The Board of Governors approved the BAM
July 9, 2012

Effective date Fiscal year 2011/12

Link http://extranet.cccco.edu/portals/1/CFFP/Fiscal_Services/Standards/BAM/bam2012ed/complete
BAM/Budget_and_Accounting_Manual_2012_Edition.pdf

Questions? myarber@cccco.edu

HEIDI WHITE, CPA PARTNER
VAVRINEK, TRINE, DAY & CO., LLP
HWHITE@VTDCPA.COM
(909) 466-4410