1. 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

2. 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

3. 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

4. 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

5. 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

6. Schedule L-1 – Deferred Inflow6
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7. Schedule L-1 – Journal Entry7
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8. Schedule L-1 – Reversal Journal Entry
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9. Schedule L-1 – Supporting Document
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10. Schedule S-12 – Deferred Inflow
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11. 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

12. 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

13. 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

14. 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, Payment is not expected to be received until October 18, The department used the PeopleSoft billing module for the transaction and to generate the invoice.
L – 2 Revenue earned but not available (DI)
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15. Schedule L 2 – Deferred Inflow
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16. Schedule L-2 – Journal Entry16
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17. Schedule L-2 – Reversal Journal Entry
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18. Schedule L-2 – Supporting Document18
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19. Schedule S-12 – Deferred Inflow
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20. 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
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21. Schedule L-3 Advances - Others21
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22. Schedule L-3 Advances – Journal Entry
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23. Schedule L-3 Advances – Reversal Entry23
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24. Schedule L-3 Advances - Support24
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25. Schedule S-12 Advances
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26. 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
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27. 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.
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28. Mail Schedule L and S along with Supporting Documents to:
ACO Year-End
Mail Stop #1050
Questions?
Submit them by to
2018 Year End Training – Chapter 8