USFR Update Cris Cable Accounting Services Division Office of the Auditor General

USFR Online

May 2012 Revisions Thanks to SFAC for their time and input – Accounting Procedures Introduction – Fixed Assets => Property Control – Expenditures – Payroll – Travel – Glossary

Property Control Replaced Fixed Assets Section – Guidance from USFR Memo 196 Capitalization Threshold Stewardship List Requirements Depreciation – Clarified guidance Classification and Valuation Disposals and Transfers More automated procedures

Expenditures Clarified guidance – More automated procedures Guidance from USFR Memos – Memo 248 – Procurement One change to incorporate newer legislation on term of contracts from A.R.S. § K – Memo 253 – Credit Cards and Purchasing Cards

Payroll Clarified guidance – More automated procedures – Prorated payments Removed Federal Savings Bond Withholding account Referenced to IRS for more specific guidance on employee vs. independent contractor

Travel Guidance from USFR Memo 231 – Taxable meal reimbursements – Duty post information Also Revised Travel FAQs on our Web siteTravel FAQs – Added FAQ for meal cost table (from Memo231) – Added FAQ for Student Activities Chaperone Travel within 50 miles

Travel FAQ’s

Glossary Streamlined Clarified guidance – Accuracy/changes in statutes – based on SFAC input

Other USFR Changes Compliance Checklists – Removed checklists from the sections – Added copy of Compliance Questionnaire to USFR and linked from the applicable section’s TOC Chart of Accounts – Changes for GASB 63 (very minor) Terminology changes for proprietary funds – Net Assets is now referred to as Net Position – Some July 2011 changes become effective in 2013

USFR Compliance Questionnaire

What’s next? Auxiliary Operations Webinar (Late Summer) Fiscal Year 2013 Revisions – State and Federal Financial Assistance – Financial Reporting – Audit Requirements – Revised CQ for 2013 audits

What Else? Expenditure Budget Forms (ASAP) – No change to BSL – Increased QTR, TSL, and additional assistance – Reductions for CORL, SCA, JTED, and additional assistance – New K-3 Reading Program and Group B Weight

What Else? Expenditure Budget Forms (ASAP) – CSF Budget-$227 Cash-$232 – Posting a link to ADE’s Web site – Removing ASRS reduction lines? House Bill 2264

ASRS Contribution Changes? House Bill 2264 – Transmitted to Gov on 4/27 If it is signed: 2 step process – Change contribution rates – Payback employees for excess contributions Wait for ASRS list of people NOT to payback before processing payback payments

Step 1 – Change Contribution Rates – Back to 50/50 – For any remaining fiscal year 2012 payrolls % total (10.5% Retirement & 0.24% LTD)

Retirement PensionLong Term Total & Health InsuranceDisability BenefitIncome Plan Employee11.13%0.26%11.390% Employer9.87%0.23%10.100% 21.00%0.49%21.490% Retirement PensionLong Term Total & Health InsuranceDisability BenefitIncome Plan Employee10.50%0.24%10.74% Employer10.50%0.24%10.74% 21.00%0.48%21.48% Contribution Rates Before and After HB 2264 Disclaimer

Step 2 – Payback Employees Calculating Payback – Calculate Retirement and LTD separately – What employees paid vs. what they would have paid – Example

Before and After Comparison Example for an employee with: Annual salary $ 30, RetirementLTD Total Contribution % to Total Annual Salary 47/53 split $ 3, $ $ 3, % 50/50 split 3, , % Difference Supplemental Pay Taxable $ Non-taxable 6.00

Account Coding Supplemental Pay Coded to Objects – 6231 – Retirement portion – 6232 – LTD portion Tax withholdings on 6231 portion only Fund/Program/Function – Allocate to FPF based on each employee’s salary allocation (Preferred method) – Code to FPF for most significant portion of each employee’s salary (Simplified option)