TASSCUBO Accounting Principles Committee Summer Meeting July 17, 2012

AGENDA II. TASSCUBO APC Fund Definitions I. Service Center Activity Whitepaper - Elimination of Service Center Activity  II. TASSCUBO APC Fund Definitions  III. Change due date for SEFA/ARRA Reconciliation to State Comptroller IV. Due Date for IFRS V. Classification of Nursing Shortage Reduction Funds      

AGENDA VI. Calculation of Indirect Cost for Athletics NCAA Report VII. GASB Update VIII. NACUBO APC Update IX. Nominations and Selection of next APC Chair X. Other Business     

Service Center Activity Whitepaper

AFR Issues – Elimination of Svc Center Activity White paper draft ready for approval Proposes uniform method of accounting Begin by identifying all service department income generated by internal charges Total income will be the debit on the elimination entry Corresponding service charges are sorted by natural classification, and will be the credits on the entry JE is prepared using natural classification of expense and function

CREDIT FOR SALES AND SERVICES FOR THE YEAR ENDED AUGUST 31, 2012 SERVICE DEPARTMENTS CREDIT FOR SALES AND SERVICES FOR THE YEAR ENDED AUGUST 31, 2012   DESCRIPTION ACCOUNT # INCOME O/C Expense O/C Description Mail Service Revolving Fund 18-1773-30 $ 78,950.26 3701 Postal Services Mail Service Postage Revolving Fund 18-1773-39 $ 347,381.11 Postal Service Mail Service Envelope Revolving Fund 18-1773-41 $ 594.05 Facilities Services Clearing Account 18-1775-65 $ 266,851.43 Other Income Community & Information Prod Fund 18-1800-00 $ 283,067.40 Printing Services Transportation Services 18-2500-00 $ 70,435.18 Rental Auto Copy Center 18-2520-00 $ 337,225.70 Computer Center 18-2530-00 $ 2,875,921.00 Data Processing Svcs Printing Division 18-2550-00 $ 653,826.97 Warehouse Center 18-2565-00 $ 343,783.23 Central Energy Plant 18-2570-00 $ 2,887,850.00 Electricity NTSD - Telecommunications 18-2610-00 $ 1,739,153.18 Telecomm IT - Telecommunication Revolving Fund 18-2610-30 $ 65,446.99 IT - PC Support Revolving Fund 18-2610-40 $ 22,978.08 Statistical Consulting Lab 18-3040-00 $ 26,230.54 $ 9,999,695.12 Sales & Services

TASSCUBO APC Fund Definitions - Update

APC Fund Group Definitions APC issued a document in May 2006 on Fund Group Definitions Good document but needs revising I will send out on Listserv for suggested changes

Due Date for SEFA/ARRA Reconciliation to State Comptroller

SEFA-ARRA Recon Due Date For FY 2011 SEFA to ARRA reconciliation was due to State Comptroller’s Office on November 20 Recon could be cumbersome and sometimes required adjustments to Schedule 1A (SEFA) This caused problems for AFR consolidations as they were already completed No change on final date for 2012

SEFA-ARRA Recon Due Date Sept. 18 – Initial Certification Certifies that agency entered their interagency federal pass-through records (including accruals) into the SEFA Web application Sept. 19 – Sept. 25 – SEFA Interagency Federal Pass-Through Reconciliation Period Sept. 26 – Interagency Federal Pass-Through Certification Nov. 1 – Final Certification

Nov. 2, 2012 – SEFA/ARRA Reconciliation available online Preliminary ARRA Section 1512 report data will be provided by the federal government and uploaded to the SEFA/ARRA Reconciliation option within the SEFA Web application Nov. 20, 2012 – SEFA/ARRA Reconciliation Certification Due This certifies that all ARRA expenditures for the current fiscal year are accounted for and reconciled to SEFA at the CFDA level

Date Change for IFRS due to Impact on Source and Uses

IFRS Date Change Integrated Financial Reporting System (IFRS) has been due on December 31 to THECB Sources and Uses Report is due to THECB by December 1 Information in IFRS often requires editing of Sources and Uses, despite reconciliation template provided by THECB Date for 2012 IFRS has been changed to December 1 (actually December 3rd due to weekend)

IRFS Date Change THECB Recommendations: Ensure IFRS reconciles to Sources and Uses by utilization of provided template Have reports prepared by, or at a minimum certified by, Accounting group Ensure Comptroller’s guidance is followed annually

Indirect Cost for Athletics NCAA Report

IDC for NCAA Report NCAA requires a very detailed report on Athletic activity by gender and sport Line 32 asks for Indirect Facilities and Administrative Support There is not a standard method to calculate the IDC “…support may include an allocation for institutional administrative cost, facilities and maintenance, grounds and field maintenance, security, risk management, utilities, depreciation, and debt service.”

IDC for NCAA Report At UT-El Paso we include: Building Depreciation Allocation of utilities that are not already direct billed to Athletics General Administration, calculated as a percentage of total Athletic expenses First two elements are straight forward: Building use for Athletics is analyzed and apportioned if necessary

IDC for NCAA Report Administrative Cost Measure %, which is reported to LBB, is applied to total Athletic Expenses Considerations Report is required to be audited As IDC counts as support from University, beware of showing too high of a number

GASB Update

GASB Update – Statement 64 GASB Statement No. 64, Derivative Instruments: Application of Hedge Accounting Termination Provisions, becomes effective in 2012 Establishes criteria when the effective hedging relationship continues and hedge accounting should continue to be applied after the replacement of a swap counterparty or a swap counterparty’s credit support provider.

GASB Update – New Statements in Effect in 2013 Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements, effective 2013, addresses issues related to service concession arrangements (SCAs), which are a type of public-private or public-public partnership. This Statement applies only to those arrangements in which specific criteria determining whether a transferor has control over the facility are met.

GASB Update – New Statements in Effect in 2013 Statement No. 61, The Financial Reporting Entity: Omnibus – An Amendment of GASB Statements No. 14 and No. 34, effective 2013, modifies certain requirements for inclusion of component units in the financial reporting entity.

GASB Update – New Statements in Effect in 2013 Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, effective 2013, provides financial reporting guidance for deferred outflows of resources and deferred inflows of resources. This Statement will have the largest impact on Higher Education as it will change the presentation of our financial statements.

NACUBO APC Update J. Carlos Hernandez

Nominations and Selection of next APC Chair

APC Chair 2 Year Term Meetings should be held quarterly Currently, one nominated person: David Ellis, University of Houston

Other Issues