Auditor-Controller’s Office Presented By: Paul Robles FY 2018 YEAR-END TRAINING Schedules L and S Auditor-Controller’s Office Presented By: Paul Robles 2018 Year End Training – Chapter 8

Deferred Inflows of Resources and Advances From Grantors and Third Parties (Schedule Ls and S-12s) Funds/money received in advance (Schedule L-1 and L-3) Services performed or taxes levied, but resources have not yet been received (Schedule L-2) Aging report (Schedule S-12 Deferred and S-12 Advances) 2018 Year End Training – Chapter 8

Instances To Record Deferred Inflows and Advances (Liability) Schedule L-1 Advances (Deferred Inflows account 2601XX) When cash is received in advance of the earning for a government mandated or voluntary non-exchange transaction (when ONLY timing requirement has not been met but all other eligibility requirements have been met) Schedule L-2 Unavailable (Deferred Inflows account 2601XX) When earned by a Governmental Fund, but not available 2018 Year End Training – Chapter 8

Instances To Record Deferred Inflows and Advances (Liability) Schedule L-3 (Advances liability account 230XXX) When cash is received in advance of the earnings for an exchange transaction or a government mandated or voluntary non-exchange transaction (when eligibility requirements have not been met OTHER THAN time requirements) 2018 Year End Training – Chapter 8

Scenario L-1 The Auditor-Controller’s Office received a federal grant on May 15, 2018 for $325,000 with the only requirement being that it needs to be spent in the next fiscal year. L – 1 Cash received in advance of a non exchange transactions and is applicable to a future reporting 2018 Year End Training – Chapter 8

Schedule L-1 – Deferred Inflow 6 2018 Year End Training – Chapter 8

Schedule L-1 – Journal Entry 7 2018 Year End Training – Chapter 8

Schedule L-1 – Reversal Journal Entry 2018 Year End Training – Chapter 8 8

Schedule L-1 – Supporting Document 2018 Year End Training – Chapter 8 9

Schedule S-12 – Deferred Inflow 2018 Year End Training – Chapter 8 10

Schedule L-2 and the Revenue Recognition Principle Proprietary funds recognize revenue when earned regardless of when cash is received (accrual basis) *Refer to Year-end Closing Manual Chapter 4 Governmental funds should recognize revenue only when the revenue is both measurable and is expected to be received within the “availability period” (modified accrual basis) *Refer to Year-end Closing Manual Chapter 4 2018 Year End Training – Chapter 8

Governmental Funds Revenue Availability Period 60-day Taxes including sales taxes Revenue Availability Period 12-month Expenditure-driven Grant 90-day Normal Cash received outside the availability period will be deferred and recognized on Schedule L-2 for governmental funds only. *Refer to Year-end Closing Manual Chapter 4 2018 Year End Training – Chapter 8

Schedule L-2 and the Revenue Recognition Principle TIP: When filling out your Schedules B – Due from other governments and C – Operating accounts receivable, If your “estimated date of collection” is On or before September 30, credit your revenue account After September 30, credit deferred inflows account and fill out schedule L-2 *Refer to Year-end Closing Manual Chapter 4 2018 Year End Training – Chapter 8

Scenario L-2 The Department of Animal Services provided dog services to the City of Banning. The contract amount was $250,000 and the services were completed on April 25, 2018. Payment is not expected to be received until October 18, 2018. The department used the PeopleSoft billing module for the transaction and to generate the invoice. L – 2 Revenue earned but not available (DI) 2018 Year End Training – Chapter 8

Schedule L 2 – Deferred Inflow 2018 Year End Training – Chapter 8 15

Schedule L-2 – Journal Entry 16 2018 Year End Training – Chapter 8

Schedule L-2 – Reversal Journal Entry 2018 Year End Training – Chapter 8 17

Schedule L-2 – Supporting Document 18 2018 Year End Training – Chapter 8

Schedule S-12 – Deferred Inflow 2018 Year End Training – Chapter 8 19

Scenario L-3 Sheriffs’ Dept. received a federal grant on June 01, 2018 for $400,000 with the requirements being that it needs to be spent by next fiscal year and that it can only be used for the Off Road Vehicle Enforcement Team , $75,000 was used as of June 30, 2018. L – 3 Cash received in advance of a exchange transactions and is applicable to a future reporting 2018 Year End Training – Chapter 8

Schedule L-3 Advances - Others 21 2018 Year End Training – Chapter 8

Schedule L-3 Advances – Journal Entry 2018 Year End Training – Chapter 8 22

Schedule L-3 Advances – Reversal Entry 23 2018 Year End Training – Chapter 8

Schedule L-3 Advances - Support 24 2018 Year End Training – Chapter 8

Schedule S-12 Advances 2018 Year End Training – Chapter 8 25

Question If your department performed services in the fiscal year 17/18 but won’t be paid until September 15, 2018 (which is in the following fiscal year 18/19), what schedule L, if any, should you complete? L-3 L-2 L-1 No schedule L 2018 Year End Training – Chapter 8 26

Answer D. No schedule L No schedule is needed since department will get paid within the revenue availability period, which in this case is 90 days. 2018 Year End Training – Chapter 8 27

Mail Schedule L and S along with Supporting Documents to: ACO Year-End Mail Stop #1050 Questions? Submit them by email to acoyearend@rivco.org 2018 Year End Training – Chapter 8