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90.20 Fiscal Year-End Cut-Off Procedures |
90.20.05
June 1, 2020 |
Introduction |
This section provides policies and procedures for closing a fiscal year and for the preparation of the state of Washington's Comprehensive Annual Financial Report (CAFR). The cut-off policy provides guidance for all state agencies to review their financial data and make necessary adjustments. The agency review and subsequent adjustments give the State Auditor's Office (SAO) reliable financial data on which to form an opinion and enable timely financial reporting. The closing calendar for fiscal year 2020 is as follows:
State disclosure forms must be completed by the due dates detailed in Subsection 90.40.10, unless alternate dates are approved by the agency’s assigned Office of Financial Management (OFM) Accounting Consultant. Following the close of Phase 2:
A schedule of phase cut-off dates is published annually by OFM as part of the directive implementing these policies. Refer to the AFRS/CAFR Closing Schedule and other year-end closing resources at: http://www.ofm.wa.gov/resources/yearend.asp. |
90.20.10
June 1, 2016 |
Cash cut-off date and policies |
90.20.10.a |
Cash cut-off is the last working (business) day in June. Cash activity occurring after this date is recorded in the ensuing fiscal year. |
90.20.10.b |
Treasury accounts Treasury account cash receipts received by an agency on or before June 30 are recorded in Fiscal Month 12 or 24 as "in-process" cash prior to the June monthly cut-off. If these amounts are not deposited in the State Treasury on or before the OST fiscal year cut-off date (usually June 30), the entry by OST to treasury cash activity will be made in the ensuing period. Refer to Subsection 90.30.20 for illustrative entries. |
Treasury account cash disbursements paid on or before OST's cut-off date are recorded as "in-process" cash prior to the June fiscal month cut-off. Refer to Subsection 90.30.50 for illustrative entries. |
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90.20.10.c | Local accounts Local account cash receipts deposited on or before June 30 are recorded with a debit to GL Code 1110 "Cash in Bank." Local account cash receipts received on or before June 30, but not deposited until after June 30, are recorded as a debit to GL Code 1120 "Undeposited Local Cash." Amounts recorded as GL Code 1120 are reclassified to GL Code 1110 "Cash in Bank" when deposited in the local bank account. Refer to Subsection 90.30.20 for illustrative entries. Local account cash disbursements made on or before June 30 are recorded with a credit to GL Code 1110 "Cash in Bank." Refer to Subsection 90.30.50.a for illustrative entries. |
90.20.15
June 1, 2016 |
Prior period adjustments and corrections |
Prior period adjustments are corrections of errors discovered after a fiscal year has been closed. There are two types of prior period adjustments, material and immaterial. OFM makes the final determination as to whether a prior period adjustment is material or immaterial based on materiality at the reporting unit level or fund statement code level. At the agency level, prior period adjustments that equal or exceed the threshold level computed annually at the roll-up fund level as listed in Subsection 75.30.40 of this manual are to be brought to the attention of the agency’s OFM Accounting Consultant. For purposes of Subsection 75.30.40, the threshold level is the lesser of (a) $1 million or (b) the greater of the following two amounts: five percent of roll-up fund equity or one percent of roll-up fund gross activity (revenues plus expenditures/expenses). This threshold level is intended to identify adjustments for consideration of the cause and if there is a need to modify agency accounting processes so as to avoid similar adjustments in the future. | |
90.20.15.a |
Material prior period adjustments Material prior period adjustments are reported as adjustments to beginning fund equity. If a material prior period adjustment is required, the following source documents are prepared by the agency, and copies are forwarded to the OFM Accounting Consultant assigned to the agency.
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90.20.15.b |
Material prior period adjustments (except for agency fund type accounts and Subsidiary Accounts 997 and 999) are offset to GL Code 9720 "Prior Period Material Corrections (OFM Only)". Refer to Subsection 90.30.30.a for an illustrative entry. |
90.20.15.c |
Material prior period adjustments to Subsidiary Accounts 997 and 999 are offset to GL Code 9910 "Current Period Clearing Account (Subsidiary Accounts Only)." Refer to Subsection 90.30.30.b for an illustrative entry. |
90.20.15.d |
All material prior period adjustments (as reflected on the agency prepared journal voucher) are entered in AFRS by OFM after approval by the OFM Assistant Director, Accounting Division. |
90.20.15.e |
Immaterial prior period adjustments and corrections Except as noted below, immaterial prior period adjustments in governmental fund type accounts are offset by a credit to GL Code 3215 "Immaterial Adjustments to Prior Periods" with Revenue Source Code 0485 "Immaterial Prior Period Adjustments." In proprietary fund type accounts, if the immaterial prior period correction is related to a revenue, it should be adjusted through revenue and, if it is related to an expense, it should be adjusted through expense. Debits to Revenue Source Code 0485 "Immaterial Prior Period Adjustments" are generally not appropriate and require the approval of the agency's OFM Accounting Consultant. Adjustments to clear overliquidated payables or to write down inventory balances should be recorded as expenditures against the applicable expenditure authority code. Refer to Subsection 90.30.35.b for an illustrative entry. Write-offs of accounts receivable balances should be debited to the related allowance for doubtful accounts per Subsection 85.54.55. Absent an allowance account in a governmental fund type account, the adjustment should be debited to the revenue source code that was credited when the receivable was recorded. In a proprietary fund type account, if no allowance account exists, accounts receivable are written off to GL Code 6515 “Bad Debts Expense.” If the write-off involves the receivable of federal or private/local revenues, agencies should contact their assigned OFM Accounting Consultant. If the receivable originated through an offset to expenditures, then the adjustment to write down the receivable should be a reversal of the original entry. If the expenditure occurred in a prior expenditure authority period, and the account involved is appropriated, the expenditure may be a belated claim. Refer to Subsection 85.40.10. If, in the second year of a biennium, a prior period adjustment relates to a biennial expenditure authority that has not lapsed, the prior period adjustment is to be recorded to/against the applicable expenditure authority. Immaterial prior period adjustment resulting in the receipt of cash for the recovery of an expenditure charged against a prior expenditure authority are recorded with a credit to GL Code 3210 "Cash Revenues" using Revenue Source Code 0486 "Recoveries of Prior Expenditure Authority Expenditures." Refer to Subsection 90.30.35.c for an illustrative entry. Revenue Source Code 0486 should only be debited in very limited circumstances and only with prior approval of the agency’s assigned OFM Accounting Consultant. Refer to Subsection 90.20.45 for guidance on immaterial prior period adjustments resulting from overestimating an accrual against a prior expenditure authority. |
90.20.15.f |
Record immaterial prior period adjustments to Subsidiary Accounts 997 and 999 as current period additions and/or deletions. Refer to Subsection 90.30.35.f - h for illustrative entries.
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90.20.15.g |
Adjustments involving beginning cash balances in agency fund type accounts are to be prepared by the administering agency on a journal voucher or equivalent toolbox entry and submitted to the OFM Accounting Consultant for entry. All other prior period adjustments to agency fund type accounts are recorded as current period activity. |
90.20.15.h |
OFM may make adjustments between material and immaterial adjustment classifications based upon review during preparation of the CAFR. Enterprise Reporting (ER) report to use: Accounting/Prior Period Adjustment Activity |
90.20.20
June 1, 2016 |
Revenue recognition |
90.20.20.a | Governmental fund type accounts Revenues in governmental fund type accounts are recognized in the period in which they become both available and objectively measurable as follows: In general, the following revenues are deemed measurable and available at June 30 and are accrued in the concluding fiscal year:
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90.20.20.b | Proprietary and trust fund type accounts Revenues for proprietary and trust fund type accounts are accounted for on a full accrual basis which means that they are recognized in the period when earned. |
90.20.20.c |
Revenue accrual When cash has not been received by June 30 for revenues meeting the appropriate recognition criteria, record the revenue as an accrual (revenue offset by receivable) in Fiscal Month 99 or 25. If the amount is not known but can be reasonably estimated, the estimated revenue should be accrued. Record the liquidation of these accruals (receivable offset by cash) in the ensuing fiscal year when the cash is received. Refer to Subsections 90.30.40.a and b for illustrative entries. |
90.20.20.d |
Revenue accrual estimate adjustments Record over and under accruals of estimated revenue from the prior fiscal year-end as adjustments to revenue in the current period:
Refer to Subsection 90.30.35.d and e for an illustrative entry. |
90.20.20.e | Unavailable revenue – governmental fund type accounts If cash was received or a receivable recorded for revenue which does not meet the revenue recognition criteria for governmental fund type accounts, record the amount in GL Code 5192 “Unavailable Revenues - Short-Term” or GL Code 5292 “Unavailable Revenues - Long-Term” depending upon when the revenue is expected to be recognized. Generally in governmental funds, accrued revenue sources are deemed unavailable if not expected to be collectible within 12 months of fiscal year end. Accordingly, the use of GL Code 5192 is very limited. Refer to Subsection 85.70.40. Balances recorded to GL Code 5292 are recognized as revenue in a future period when they meet the availability recognition criteria. Refer to Subsection 90.30.40.c for an illustrative entry. |
90.20.20.f | Unearned revenue – all accounts If cash was received or a receivable was recorded for revenue for which the earning criteria has not been met in governmental or proprietary fund type accounts, record the amount in GL Code 5190 “Unearned Revenues – Short Term” or GL Code 5290 “Unearned Revenues – Long Term” depending upon when the revenue is expected to be realized. Refer to Subsection 85.70.45. These amounts are recognized as revenue in a future period when they meet the earning criteria. Refer to Subsection 90.30.40.d for an illustrative entry. |
90.20.20.g |
Treasury deposit income The fiscal year-end accrual for treasury deposit income is recorded by OST as Agency 705 Treasurer’s Deposit Income in either Account 076 "Treasury Income Account" or Account 409 "Investment Income Account."
Treasury deposit income for treasury accounts is reported by OST as Agency 705 activity for the concluding fiscal year. OST records the interest as payable in Account 076 by a credit to GL Code 5153 “Due to Other Funds” with the appropriate subsidiary account code. In addition, OST records the interest in the various receiving accounts in Agency 705 by debiting GL Code 1353 "Due from Other Funds" with Subsidiary Account Code 076000, and crediting GL Code 3205 "Accrued Revenues" with Revenue Source Code 0401 "Investment Income."
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90.20.25
June 1, 2016 |
Expenditure/expense recognition |
90.20.25.a |
Governmental fund type accounts
Expenditures in governmental fund type accounts are recognized in the period in which the account liability is incurred; that is, the period in which the goods or services are received. Goods and services must be received by June 30 to be included as an expenditure of the concluding fiscal year. |
90.20.25.b |
Proprietary and trust fund type accounts
In proprietary and trust fund type accounts, expenses are recognized when incurred, if measurable. All goods and services received through June 30 must be recognized in the concluding fiscal year. |
90.20.25.c |
All accounts
Record expenditures/expenses incurred in the concluding fiscal year but paid after June 30, as an accrual (expenditure/expense offset by payable) in Fiscal Month 99 or 25. Record liquidation of the accrual (payable offset by cash) in the ensuing fiscal year when paid. Refer to Subsection 90.30.50 for illustrative entries. If the ensuing year is the second fiscal year of a biennium and the expenditure is charged against a biennial expenditure authority code , then there is an additional entry to reverse the initial accrued expenditure and record a cash expenditure. |
90.20.30
June 1, 2016 |
Expenditure/expense accruals for single year operating expenditure authority - mid-biennium |
90.20.30.a |
Expenditure/expense accruals Record all expenditure/expense accruals charged against single year operating expenditure authority by Phase 1 close of the ensuing year. If the amount of the accrual is known (i.e., the invoice has been received or the amount is otherwise known), record the entry to GL Code 6505 "Accrued Expenditures/Expenses." |
90.20.30.b | Estimates If the amount is not known, but can be reasonably estimated, record the estimate in GL Code 6560 "Estimated Accrued Expenditures/Expenses." Make estimates in accordance with the state's policy for developing accounting estimates. Refer to Subsection 90.20.55. Note: If the actual amount becomes known prior to Phase 2 close, the estimate recorded in GL Code 6560 "Estimated Accrued Expenditures/Expenses" should be reversed and the actual amount should be recorded in GL Code 6505 "Accrued Expenditures/Expenses." All expenditure/expense accruals (GL Codes 6505 and 6560) made during the first fiscal year of a biennium and charged against single year operating expenditure authority will be closed to fund equity during the biennium automated closing process in AFRS. Agencies should monitor the liquidation of estimated accruals at the account/expenditure authority level. While a subsidiary worksheet is the recommended method, agencies may use any reasonable means of documenting the liquidations. Reconcile the unliquidated balances on a timely basis. Retain this subsidiary work sheet or other form of documentation for audit purposes. |
90.20.30.c |
Encumbrances The balance in GL Code 6410 "Encumbrances" related to single year expenditure authority is to be zero at the end of the fiscal year. Goods and services ordered, but not received prior to close of business June 30, are accounted for as expenditures of the ensuing year or in the fiscal period received. Refer to Section 85.30. ER report to use: Accounting/Exceptions/Encumbrances - First Fiscal Year Operating (GL 6410) |
90.20.35
June 1, 2016 |
Expenditure/expense accruals for biennial expenditure authority - mid-biennium |
90.20.35.a |
Expenditure/expense accruals Record all expenditure/expense accruals charged against biennial expenditure authority by Phase 1 close of the ensuing year. Both actual and estimated accruals are to be recorded in GL Code 6505 "Accrued Expenditures/Expenses." Actual accruals are based on an invoice or other information that is otherwise known. |
90.20.35.b | Estimates Estimates are made if an amount is not known, but can be reasonably estimated. Make estimates in accordance with the state's policy for developing accounting estimates. Refer to Subsection 90.20.55. Reverse accrued expenditures/expenses (GL Code 6505) recorded during the first fiscal year of the biennium at the beginning of the second fiscal year of the biennium. After the reversal, payments of the accruals are to be treated the same as other expenditures/expenses of the second fiscal year. |
90.20.35.c |
Encumbrances Goods and services ordered, but not received prior to June 30 of the first fiscal year of the biennium, are recorded as encumbrances in the first fiscal year by debiting GL Code 6410 "Encumbrances" with an offsetting credit to GL Code 9510 "Reserved for Encumbrances." For budgeted accounts, total allotment charges plus these encumbrances cannot exceed the approved spending authority (approved biennial budget). Refer to Section 85.30. ER report to use: Accounting/Exceptions/Encumbrances by Account and Program Additionally, for encumbrances relating to capital appropriations, a sufficient available fund balance must exist or an appropriate budget explanation explaining the difference must be included with fiscal year-end disclosure forms as an attachment to the financial disclosure certification. Refer to Subsection 85.30.10 for further information about encumbrance accounting. A second option for mid-biennium reporting of encumbrances related to biennial expenditure authority is to record them at a summary level by debiting GL Code 9514 "Reserved for Encumbrances for Continuing Operating Expenditure Authority" with an offsetting credit to GL Code 9510 "Reserved for Encumbrances." This entry is reversed at the beginning of the ensuing fiscal year by debiting GL Code 9510 and crediting GL Code 9514. At the time the summary level entry is reversed, the encumbrances need to be recorded in GL Code 6410 against an actual expenditure authority code. Prior to using GL Code 9514, agencies should check with their assigned OFM Accounting Consultant. |
90.20.40
June 1, 2016 |
Expenditure/expense accruals - end of biennium |
90.20.40.a |
Expenditure/expense accruals
Record all expenditure/expense accruals for the concluding fiscal year by Phase 1 close of the ensuing year. If the amount of the accrual is known (i.e., the invoice has been received or the amount is otherwise known), record the entry to GL Code 6505 “Accrued Expenditures/Expenses.” |
90.20.40.b | Estimates
If the amount is not known, but can be reasonably estimated, record the estimate in GL Code 6560 “Estimated Accrued Expenditures/Expenses.” Make estimates in accordance with the state's policy for developing accounting estimates. Refer to Subsection 90.20.55. Note: If the actual amount becomes known prior to Phase 2 close, the estimate recorded in GL Code 6560 "Estimated Accrued Expenditures/Expenses" should be reversed and the actual amount should be recorded in GL Code 6505 "Accrued Expenditures/Expenses." All accrued expenditures/expenses (GL Codes 6505 and 6560) are closed to fund equity during the biennium automated closing process in AFRS. Agencies should monitor the liquidation of estimated accruals at the account/expenditure authority level. While a subsidiary worksheet is the recommended method, agencies may use any reasonable means of documenting the liquidations. Reconcile the unliquidated balances on a timely basis. Retain this subsidiary worksheet or other form of documentation for audit purposes. |
90.20.40.c |
Encumbrances - operating expenditure authority
The balances of GL Codes 6410 "Encumbrances" and 9514 "Reserved for Encumbrances for Continuing Operating Expenditure Authority" are to be zero at the end of the biennium. Goods and services ordered, but not received prior to close of business June 30, are accounted for as expenditures of the ensuing year or in the fiscal period received. Refer to Section 85.30. |
90.20.40.d |
Encumbrances - capital expenditure appropriations
At biennium-end, encumbrances for capital appropriations that are reappropriated in the new biennium are closed to GL Code 9513 "Reserved for Encumbrances for Reappropriated Capital Appropriations" in the concluding biennium provided a sufficient available fund balance exists. These amounts are offset by GL Code 9510 "Reserved for Encumbrances." The entry to close GL Code 6410 "Encumbrances" is reversed at the beginning of the ensuing biennium with the encumbrance charged to the reappropriated appropriation. Refer to Subsection 90.30.60.c for an illustrative entry. |
90.20.45
June 1, 2016 |
Unliquidated estimated accrued expenditures/expenses – immaterial prior period adjustments |
Unliquidated estimated accrued expenditures/expenses from a prior expenditure authority period are adjusted using GL Code 3215 "Immaterial Adjustments to Prior Periods" with Revenue Source Code 0486 "Recoveries of Prior Expenditure Authority Expenditures." The adjustment is made when it is expected that no further payments will be made, normally within 12 months of the end of an expenditure authority period, but no later than two years following the accrual. Refer to Subsection 90.30.35.a for an illustrative entry. |
90.20.47
June 1, 2016 |
Shortages in estimated accrued expenditures/expenses in appropriated accounts – belated claims |
Shortages in estimated accrued expenditures/expenses in appropriated accounts are to be treated as belated claims of the prior expenditure authority period. Belated claims are obligations for goods and services which were received on or before June 30 but were not accrued in the concluding expenditure authority period. Refer to Subsection 90.30.35.b for an illustrative entry. Refer to Subsection 85.40.10 for procedures relating to belated claims. |
90.20.50
June 1, 2019 |
Interagency accruals |
90.20.50.a |
Interagency receivables/payables are required to be in balance at fiscal year-end by Phase 1B close. Agency cooperation is essential to balance interagency receivables and payables at the statewide level. Agencies are to contact the other agencies involved to resolve any differences. If disagreements exist, the OFM Accounting Consultant assigned to each agency should be contacted to resolve the issues. Interagency GL Codes include:
There are several exceptions to the GL codes listed above for recording interagency payables. Refer to Subsection 90.20.50.b for a list of these exceptions. Also, interagency receivable/payables with the State Board for Community and Technical Colleges (SBCTC) and the Community and Technical Colleges (CTCs) require a specific subsidiary GL Code, refer to Subsection 90.20.50.c. In establishing interagency receivables/payables, the accrual should be recorded as of the date goods and services are delivered. Refer to Subsection 90.20.25. A reasonable estimated billing, in lieu of an actual amount, is an acceptable basis for recording the receivable/payable. However, payment should be made after receipt of the actual bill, not on an estimated billing. The type of interagency payment used to liquidate an interagency accrual depends on the cash type of the accounts involved. Payments between treasury and treasury trust accounts are to be made using the most cost effective means available, for example an interagency payment (IAP). Refer to Subsection 85.36.20. Except as noted below, the accrual is deemed liquidated on the date the cash is credited to the receiving agency. If the payment is made by warrant or local fund check, the date recorded on the payment document is considered the date of liquidation. Unless prior arrangements have been made between the billing agency and billed agency, interagency billings for services rendered as of June 30 are to be sent out by vendor agencies no later than the date listed in 90.20.05. If a vendor agency cannot produce actual billings by this date, the agency is to send out estimated billings and follow up with the actual bill as soon as possible. Estimated billings are to be clearly marked as estimates. Actual billings received by customer agencies are to be accrued in GL Code 6505 "Accrued Expenditures/Expenses" by Phase 1 close in the concluding fiscal year, using Fiscal Month 99 or 25. For a biennial expenditure authority at mid-biennium, expenditures related to estimated billings received by customer agencies are accrued in GL Code 6505 "Accrued Expenditures/Expenses" by Phase 1 close in the concluding fiscal year using Fiscal Month 99. At the end of an expenditure authority period, expenditures related to estimated billings received by customer agencies are accrued in GL Code 6560 "Estimated Accrued Expenditures/Expenses" by Phase 1 close in the concluding fiscal year using Fiscal Month 99 or 25. Disputed billings are treated as estimates whether based upon actual invoices or not. Disputed billings are to be paid when resolved. Refer to the list of interagency contacts on OFM’s website at: http://www.ofm.wa.gov/resources/yearend.asp. ER reports to use: Accounting/Interagency & Interfund/Interagency payables and Accounting/Interagency & Interfund/Interagency receivables |
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90.20.50.b |
The following interagency payables should not be recorded using GL Codes 5154 or 5254. Instead the following GL Codes should be used:
Amounts due to or from the following discrete component units are recorded as GL Code 5152 " Due to Other Governments " or GL Code 1352 "Due from Other Governments," as follows:
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90.20.50.c | When recording interagency receivables/payables with the State Board for Community and Technical Colleges (SBCTC) and the Community and Technical Colleges (CTCs), use the following subsidiary GL codes:
* Where xx is the second and third numbers of the 4 digit agency code for the specific community or technical college. Refer to Subsection 75.20.10. |
90.20.55
June 1, 2016 |
Accounting estimates |
90.20.55.a |
An accounting estimate is an approximation of an expenditure/expense, revenue, or other financial statement element. Accounting estimates are included in the state's accounting records because of the following:
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90.20.55.b |
Agencies are responsible for making the accounting estimates to be included in their accounting records. Estimates are based on subjective as well as objective factors. These decisions are normally based on knowledge and experience of past and current events, assumptions about conditions expected to exist, and courses of action expected to be taken. |
90.20.55.c |
Agencies are responsible for establishing a process for preparing accounting estimates. The process normally consists of the following:
Once an agency has determined the accounting estimate, they must record the accounting estimate in accordance with state accounting policies. ER report to use: Accounting/Estimated Accrued Expenditures/Expenses (GL 6560) Review Note: If the actual amount becomes known prior to Phase 2 close, the expenditure estimate recorded in GL Code 6560 “Estimated Accrued Expenditures/Expenses” should be reversed and the actual amount should be recorded in GL Code 6505 “Accrued Expenditures/Expenses.” |
90.20.60
June 1, 2016 |
Interfund accruals |
Interfund receivables and payables, GL Codes 1353 and 5153, 1653 and 5253, 1355 and 5155, and 1350 and 5150, are required to be in balance at the agency level at fiscal year-end. For the University of Washington only, GL Codes 1667, 5167, and 5267 are also required to be in balance at the agency level at fiscal year-end. Interfund accruals should be established when goods and/or services are delivered. When payment of an interfund payable is made by interfund transfer (IFT) or journal voucher (JV), the accrual is considered liquidated on the date that the cash is credited to the receiving fund. If payment is made by warrant or local check, the date recorded on the payment document is considered the date of liquidation. ER reports to use: Accounting/Interagency & Interfund/Interfund Receivables/Payables and Accounting/Interagency & Interfund/Pooled Cash and Investments Due to/Due from Other Funds (GLs 1355 and 5155) |
90.20.62
June 1, 2016 |
Fund balance |
Agencies are responsible for reviewing the fund balance general ledger (GL) codes in AFRS of the governmental fund type accounts to which they post activity and reclassifying as appropriate. Each account is designated a closing GL code within the classifications of: nonspendable, restricted, committed, assigned or unassigned. Refer to Subsection 75.40.20 for a description of these GL codes. A portion of the residual activity balance may be more appropriately reported in a fund balance GL code in a classification other than that of the designated closing code. Refer to Subsection 75.30.50 for the closing GL code for each account. If questions exist regarding fund balance classification, contact your assigned OFM Accounting Consultant. Refer to Subsection 90.30.90 for an illustrative entry. |
90.20.65
June 1, 2016 |
Agency fund type accounts |
Agency fund type accounts are custodial in nature and do not report operations or fund balance. At fiscal year-end, these accounts only report assets and liabilities existing as of June 30. |
90.20.70
June 1, 2016 |
Adjustment and reconciliation activity |
90.20.70.a |
Phase 2 is the final opportunity for state agencies to enter adjustments for the concluding fiscal year before the data is provided to the SAO for final audit and released as the unaudited fiscal year activity. Agencies are to review their data to ensure that assets and liabilities are properly and completely stated, and that revenues and expenditures/ expenses are accurately reflected and recorded in the proper period using the correct coding. GL codes with subsidiary accounts must be reconciled to the subsidiary records. |
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90.20.70.b |
Journal vouchers are used for adjusting entries posted during Phase 2 for Fiscal Month 99 or 25. Journal vouchers must include the biennium and fiscal month to which they pertain. Examples of types of activities to perform and adjustments to make are as follows:
Receivables should be reconciled to subsidiary systems and/or records if applicable. Refer to Subsection 85.54.65.
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90.20.70.c | Federal revenue/expenditure balancing |
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90.20.70.d |
Disclosure form information should be accurately recorded in AFRS State disclosure forms must be completed by the due dates detailed in Subsection 90.40.10. |
90.20.80
June 1, 2016 |
Office of Financial Management analysis and CAFR preparation |
90.20.80.a |
Following the close of Phase 2, OFM analyzes the balances in AFRS and the information collected through the disclosure form application for reasonableness. State agencies are not allowed to make entries into AFRS after Phase 2 close unless approved by OFM. |
90.20.80.b |
OFM prepares the CAFR in accordance with generally accepted accounting principles and works with the State Auditor’s Office (SAO) throughout the CAFR audit. |
90.20.80.c |
Once the SAO issues their opinion on the state’s CAFR, AFRS data is considered final and will be used by the state for all subsequent fiscal year reports. This includes budgetary control reporting and preparation of biennial budget requests. |
90.20.80.d |
Agencies preparing and/or publishing agency financial statements are to use the final audited AFRS data. Refer to Subsection 90.10.60. |
90.20.90
June 1, 2016 |
State Auditor’s Office audit |
90.20.90.a |
During the fiscal year end cut-off process, SAO may recommend material adjustments to agencies' balances. Agencies are to review these recommended adjustments and notify their assigned OFM Accounting Consultant of the adjustments promptly. |
90.20.90.b |
All audit adjustments are recorded on a journal voucher form or equivalent toolbox entry, assigned a current document number by the audited agency, indicating the applicable biennium and fiscal month, and signed by the audited agency's fiscal officer indicating agreement or disagreement. Agencies are to cooperate with and assist the auditor, to ensure the audit adjustment journal voucher is complete and accurately prepared. |
90.20.90.c |
Agencies are to submit SAO audit adjustments to OFM promptly. SAO audit adjustments are to be reviewed by the agency’s assigned OFM Accounting Consultant. If appropriate, OFM will post the recommended adjustments in AFRS. |