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Fiscal Year 2007 CAFR Debriefing. Summary. Thank you all for your assistance. Vavrinek, Trine, Day & Co., LLP auditors were happy with the year-end schedules, especially when backup documentation was attached. Audit was completed 2 weeks earlier than prior year. Audit findings:

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  • Thank you all for your assistance.
  • Vavrinek, Trine, Day & Co., LLP auditors were happy with the year-end 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.


accounts payable

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?


accounts payable1

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.


accounts payable2

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 Year-End Schedules due date?



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.



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.


accounts payable3

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.


revenue accruals

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?


revenue accruals1

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.


revenue accruals2

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?



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.


account reclassification

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?


account reclassification1

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.


balance sheet clean up

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.


balance sheet clean up1

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.


new gasb pronouncements for 2008

Question 8:

New GASB Pronouncements for 2008:

What new GASB pronouncements will be implemented in Fiscal Year 2008?


new gasb pronouncements for 20081

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.


component units

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?


component units1

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.


reporting team who to contact
Reporting TeamWho 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)


reporting team who to contact1
Reporting TeamWho 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


chart of accounts
Chart Of Accounts


Gladys Smith