Fiscal Year 2007
CAFR Debriefing
1
Summary
 Thank you all for your assistance.
 Vavrinek, Trine, Day & Co., LLP auditors were happy with the yearend schedules, especially when backup documentation was attached.
 Audit was completed 2 weeks earlier than prior year.
 Audit findings:
– Accounts Receivable-System (112100)
 No Aging report supporting the backup documentation
 No internal departmental spreadsheet supporting the GL
balance.
– Credit Balances in Asset Accounts
 Certain asset accounts with credit balances, without proper
documentation. Overall, immaterial, but deficiency in
controls.
2
Frequently Asked Questions
3
Question 1:
Accounts Payable
The ACO posted additional Accounts
Payable for vouchers entered from July 1
through August 31 for services incurred
prior to June 30. Can my department
revise the prior year revenue accruals in
September as a result of the additional AP
posted?
4
Answer 1:
Accounts Payable:
No. You should estimate your future AP
accrual when preparing the Revenue
Accruals. The year-end schedules are due
the 3rd week of July. At that point, estimate
your receivables based on prior year AP
vouchers which are either reimbursable by
3rd parties or other departments which will
be received subsequent to June 30.
5
Question 2:
Accounts Payable
How should I estimate AP as of June 30, for
purposes of revenue accrual and/or year
end encumbrances if the vendor invoices
have not been received prior to the YearEnd Schedules due date?
6
Answer 2:
Accounts Payable
Determine an appropriate valuation based on
that vendor’s invoice history. For example,
estimate based on the average of the past 11
invoices paid, May’s total invoice paid, or
the project manager’s knowledge with the
contract and/or vendor.
7
Question 3:
Accounts Payable
The department does not have sufficient
remaining budget for additional AP
vouchers paid from July 1 through
September 30 for goods/services received
prior to June 30. Therefore, the AP will not
be posted against the prior year’s budget.
8
Answer 3:
Accounts Payable
False. Vouchers paid from July 1 through
September 30 will be posted to the prior fiscal
year, if the goods/services were received prior
to June 30, regardless of remaining
appropriations in the department. Generally
Accepted Accounting Principles requires to post
expenditures in the year incurred.
9
Question 4:
Revenue Accruals
My department has a reimbursable grant
with the State of California. At year-end,
we estimated accounts receivable of $3
million dollars. However, the state notified
us in September that $1 million is not
allowable. Should I revise the year end
schedule?
10
Answer 4:
Revenue Accruals
Yes. Provide a revised year-end
schedule, with a revised Journal Entry
and all supporting documentation. If
the amount is material, the journal will
be posted prior to the final June 30
closing process. If immaterial, the
revision may not be posted.
11
Question 5:
Revenue Accruals
Our department has prepared a clean-up
reconciliation and found additional
billings to other departments for the
previous fiscal year. Can we prepare a
journal in September to bill those
departments as of June 30?
12
Answer 5:
Revenue Accruals
No. Billings should be posted by July 31
for all services provided prior to June 30
to other departments. If needed, estimate
amounts. Period 998 is not a cleanup
period.
13
Question 6:
Account Reclassification
I have reconciled my project cost and/or
expenditures accounts and need to post various
reclassifications as of June 30. Can I prepare
and post the journal at the end of August to clean
up the accounts?
14
Answer 6:
Account Reclassification
No. Period 12 is open through July 31.
Please prepare all clean up entries,
including reclassifications from July 1-July
31. Period 998 is not a clean up period.
Period 998 is only for audit adjustments.
15
Question 7:
Balance Sheet Clean-up
My department is responsible for reconciling
revenues and expenditures. The ACO is
responsible for reconciling all balance sheet
accounts.
16
Answer 7:
Balance Sheet Clean up:
False. Each department is responsible for reconciling
the balance sheet accounts such as assets and
liabilities. To ease the process, consider cleaning up
odd variances in balance sheet accounts (i.e.: credit in
assets and debits in liabilities) throughout the year. At
a minimum, reconcile balance sheet account balances
to supporting documentation such as AR aging reports
and/or internally prepared schedules/spreadsheets on a
quarterly basis.
17
Question 8:
New GASB Pronouncements for 2008:
What new GASB pronouncements will be
implemented in Fiscal Year 2008?
18
Answer 8:
New GASB Pronouncements for 2008:
• GASB 45 – Accounting and Financial
Reporting by Employers for Postemployment
Benefits Other Than Pensions
• GASB 48 – Sales and Pledges of Receivables
and Future Revenues and Intra-Equity
Transfers of Assets and Future Revenues
• GASB 50 – Pension Disclosures – an
amendment of GASB Statements No. 25 and No.
27.
19
Question 9:
Component Units:
We are a component unit. Our independent auditors
prepared various audit adjustments to the Financial
Statements. Should those entries be posted in the
system?
20
Answer 9:
Component Units:
Yes. Please provide a copy of those entries to General
Accounting Reporting Team, attention Dolores Reyna
and/or Frank Leonard. We will help you coordinate
the posting of those entries into the system.
21
Reporting Team
Who to Contact:
Dolores Reyna:
CAFR/Audit questions
New GASB pronouncements
Component Units
Schedule R
Frank Leonard:
Simpler
Year-End Accounts Payable Accrual
Period 998
Financial Highlights (PAFR)
nVision Reports
Schedule I
Sue Warner:
Special Revenue Funds (Flux, Fund Balance, BS Recon)
Due to/from Other Govts (Schedules T-9, V-9, T-12, V-12, B & G)
Statistical Section
Prepaids (Schedule M)
22
Reporting Team
Who to Contact:
Daisy Vergara:
Capital Projects Funds (Flux, Fund Balance, BS Recon)
Deferred Revenue (Schedules S-9, S-12, L-1, L-2)
CAFR Distribution
Management Discussion and Analysis
Fendy Kao:
Internal Service Funds (Flux, Fund Balance, BS Recon)
Due to/from Other Funds (Schedule A)
Advances to/from other Funds
Gladys Smith:
Chart of Accounts
State Controller’s Report
Operating transfers in/out
23
Chart Of Accounts
chartofaccount@co.riverside.ca.us
or
Gladys Smith
gsmith@co.riverside.ca.us
24