Accounting & Reporting Update Washington State Board for Community and Technical Colleges June 14, 2019 Truc Le, Grace Jimenez, Cheryl Bivens

Agenda FY19 Yearend Closing FY19 Financial Statements GASB update

FY19 yearend closing Clear SMART 507 by making the appropriate opening entries. Clear SMART 902-Due To Due From (.G:\ABS\AFRS- System Accounting\System Yearend\Year End 19\YE19InteragencyRecPayContactList.pdf ) Test close/open table. Reach out to a peer if you need help or new to this process. SMART is a good tool to monitor your accounting records and test out adjusting entries.

FY19 yearend closing Read through the FY19 System Closing Timeline document https://www.sbctc.edu/resources/documents/colleges- staff/programs-services/accounting/system-closing-process- for-colleges-fy19.pdf Two week SMART adjusting period July 25th – August 9th (ctcLink Period 131) Interagency balance receivable/payable entries (Due To Due From) only after August 9th. Must be balanced by August 16th (ctcLink Period 132) ctcLink Post-AFRS Adjustment Period (moving cash and revenue from 841-285-98499 to PS_Funds (101, 3E0, etc) (ctcLink Period 133)

FY19 yearend closing Items that must meet AFRS’ requirements: COPs: do not net and must match OST for long term and short term. Contact us if you have any new COP. Assets: do not net, do not use R trans codes unless to back out. The GLs in each entry has to balance (see the cheat sheet on our website https://www.sbctc.edu/colleges-staff/programs- services/accounting-business/accounting.aspx) Example: 2210/9850 (all 2210 has to agree with 9850) if you net or mix up different types of entries, they won’t balance.

Two week SMART adjusting period July 25th – August 9th Make appropriate entries to correct any errors (follow SMART instructions in each page) All due to/due from must balance to zero with the correct debit/credit Don’t do reversible entries for immaterial amounts in wrong positions (i.e.: small debit amount in liability GLs). Input manual entries for unearned revenue distribution in SMART115

Two week SMART adjusting period July 25th – August 9th Generally there shouldn’t be any errors in SMART pages. The following pages must be in balance and with correct debit/credit position: SMART202 T Objects SMART302: Operating Transfers - Source 0621/0622 DO NOT net Use R trans codes only to back out an entire entry you had created DO NOT use R trans codes to adjust: you’re not reversing, You’re just adding another entry in the wrong position. SMART303: Intra-fund Transfers - Source 0782 SMART401: Due To/From Funds - GL 1353/1653 and GL 5153/5253 SMART402: Due To/From Indicators to Other Agencies - GL 1354/5154 SMART403: Pooled Cash - GL 1355/5155 SMART404: VPA General Ledgers - GL 1350/5150

Two week SMART adjusting period July 25th – August 9th Generally there shouldn’t be any errors in SMART pages. However, avoid creating reversible entries for immaterial errors in these pages: 503: Asset Ledgers Should be Debits 504: Liability and Receivable Allowance GLs Should be Credits

Interagency balance receivable/payable entries only after August 9th Interagency balance receivable/payable entries only after August 9th. Must be balanced by August 16th After August 9th, only entries for interagency due to/from are allowed. Email Truc every time you make an entry (or she wouldn’t know it’s there to upload to AFRS). NO SMART adjusting otherwise so State Board can start reconciling the system.

FY19 yearend closing Contacts: Grace Jimenez: gjimenez@sbctc.edu 360-704-4378 For questions related to SMART & Financial statements. Truc Le: tle@sbctc.edu 360-704-4379 For questions related to AFRS. John Ginther: jginther@sbctc.edu 360-704-4380 Excess enrollment, Accrued Leave Calculation Worksheet

Reporting changes FS template – Minor changes MD&A – Change to the format of condensed operating data Notes to Financial Statements – Back to basics GASB 68 – Change to contribution calculation GASB 73 – Template change for clarity - pension expense

Reporting timeline FS templates – late August Notes template – September SBRP pension data (OSA) – September Audited OPEB report (OFM/SAO)– September DRS pension data (DRS/SAO) – Prior year available now, FY19 will be in October Waiver Reports from Brian Myhre – mid October Statewide CAFR – goal for FY19 is November 8th

Gasb statements Effective FY19 – GASB 83 Asset Retirement Obligations Currently no material AROs to report Effective FY21 – GASB 87 Leases Although this is a FY21 GASB, we should be ready to start implementation by July 1, 2020

GASB STATEMENT NO. 87 - FPMT Facilities Portfolio Management Tool (FPMT) Office of Financial Management (OFM) received funding in 2019-21 budget to expand functionality of FPMT to meet the GASB 87 lease requirements. OFM is developing project charter and plans to execute contract in July 2019 with scheduled completion in January 2021. OFM is partnering with Statewide Accounting to develop business requirements and project implementation. SBCTC currently reports 75-80 leases in FPMT. FPMT is real-time application available 24/7 and easy to record updates throughout the year. Contact SBCTC Capital department if you need login credentials or other assistance.