COUNTY OF RIVERSIDE OFFICE OF THE AUDITOR-CONTROLLER

1. COUNTY OF RIVERSIDEOFFICE OF THE AUDITOR-CONTROLLER Accounts Payable (AP) Accrual Reggie Arhin April 21, 2005

2. ACCOUNTS PAYABLE (AP) ACCRUAL OVERVIEW • Purpose of AP Accrual • How the process worked in the past • Why we are changing the process • How the new process will work • Questions 1

3. ACCOUNTS PAYABLE (AP) ACCRUAL Purpose of AP Accrual • Expenditure Recognition • Title Transfer/Service Provided 2

4. ACCOUNTS PAYABLE (AP) ACCRUAL How the process worked in previous years • System Accruals during extended period 12 • Schedule H • Supporting documentation 3

5. ACCOUNTS PAYABLE (AP) ACCRUAL Why are we changing the process? • Assure compliance with GAAP • Adjust our process to comply with prior year audit findings • System accruals not properly executed • 30% of Vouchers entered in wrong fiscal year • Issues with Schedule H (incomplete, not submitted, or duplicated) • Earlier FYE close (July 31) • Last day to enter vouchers is July 20 4

6. ACCOUNTS PAYABLE (AP) ACCRUAL How the new process will work • Departments to process invoices as usual • Treat July as if it were a regular month in the fiscal year when entering your voucher. • Input the right invoice date as just presented by Robert Valenson. • ACO will run accrual and reversing entries based on system invoice date. • Each journal line will be populated in the “Journal Line Description” field with the Business Unit and Voucher ID. Example: ACARC_00014531 5

7. ACCOUNTS PAYABLE (AP) ACCRUAL How the new process will work (continued) • ACO will notify Department Representatives about accrual details (via email). • Email provides Journal ID for both accrual and accrual reversal journals. • To receive email, please review contact list (in your handouts) and submit additions to: ACOYearEnd@co.riverside.ca.us • Type AP ACCRUAL on the email subject line 6

8. ACCOUNTS PAYABLE (AP) ACCRUAL How the new process will work (continued) • Public Query allows departments to view accrual details • Query Name: RVGL_AP_ACCRUAL_JOURNALS • Run query: • 1st prompt: Enter journal ID emailed to you by ACO. • 2nd prompt: Enter Business Unit + %. Use capital letters for business unit. Example: ACARC% 7

9. ACCOUNTS PAYABLE (AP) ACCRUAL Benefits To Departments • No Schedule H. • No stamping or separation of documents for “Old Year” or “New Year”. • You can treat July like any other month of the year. • Saves time! 8

10. ACCOUNTS PAYABLE (AP) ACCRUAL Questions • Email address for further communication: ACOYearEnd@co.riverside.ca.us Please type AP ACCRUAL on the email subject line. 9