1 COUNTY OF RIVERSIDE OFFICE OF THE AUDITOR-CONTROLLER Accounts Payable (AP) Accrual Reggie Arhin April 21, 2005

12 ACCOUNTS PAYABLE (AP) ACCRUAL OVERVIEW Purpose of AP Accrual How the process worked in the past Why we are changing the process How the new process will work Questions

23 ACCOUNTS PAYABLE (AP) ACCRUAL Purpose of AP Accrual Expenditure Recognition Title Transfer/Service Provided

34 ACCOUNTS PAYABLE (AP) ACCRUAL How the process worked in previous years System Accruals during extended period 12 Schedule H Supporting documentation

45 ACCOUNTS PAYABLE (AP) ACCRUAL Why are we changing the process? Assure compliance with GAAP Adjust our process to comply with prior year audit findings –System accruals not properly executed –30% of Vouchers entered in wrong fiscal year –Issues with Schedule H (incomplete, not submitted, or duplicated) Earlier FYE close (July 31) Last day to enter vouchers is July 20

56 ACCOUNTS PAYABLE (AP) ACCRUAL How the new process will work Departments to process invoices as usual – Treat July as if it were a regular month in the fiscal year when entering your voucher. – Input the right invoice date as just presented by Robert Valenson. ACO will run accrual and reversing entries based on system invoice date. – Each journal line will be populated in the “Journal Line Description” field with the Business Unit and Voucher ID. Example:ACARC_

67 ACCOUNTS PAYABLE (AP) ACCRUAL How the new process will work (continued) ACO will notify Department Representatives about accrual details (via ). – provides Journal ID for both accrual and accrual reversal journals. – To receive , please review contact list (in your handouts) and submit additions to: – Type AP ACCRUAL on the subject line

78 ACCOUNTS PAYABLE (AP) ACCRUAL How the new process will work (continued) Public Query allows departments to view accrual details Query Name:RVGL_AP_ACCRUAL_JOURNALS Run query: – 1 st prompt: Enter journal ID ed to you by ACO. – 2 nd prompt: Enter Business Unit + %. Use capital letters for business unit. Example: ACARC%

89 ACCOUNTS PAYABLE (AP) ACCRUAL Benefits To Departments No Schedule H. No stamping or separation of documents for “Old Year” or “New Year”. You can treat July like any other month of the year. Saves time!

910 ACCOUNTS PAYABLE (AP) ACCRUAL Questions address for further communication: Please type AP ACCRUAL on the subject line.