1. Auditor-Controller’s Office Presented By: Paul Robles
FY 2018 YEAR-END TRAINING
Schedule M
Auditor-Controller’s Office
Presented By: Paul Robles
2018 Year End Training – Chapter 9

2. Schedule M – Prepaid Expenditures
Amount paid for a product or service that has not been fully used up as of fiscal year-end
Insurance premiums paid in advance
Rents that are paid in advance 2
2018 Year End Training – Chapter 9

3. Schedule M – Prepaid Expenditures
Schedule M allocates the total amount paid between current fiscal year expense and amount capitalized for future fiscal year expense
Journal entry is required to capitalize amount of expense not used
Journal entry is also required to reserve an equity amount for the prepaid 3
2018 Year End Training – Chapter 9

4. Scenario
Department XYZ paid 4th Phase Inc. a total of $427,000 on June 27, 2018 for pharmaceuticals for the month of July 2018.
2018 Year End Training – Chapter 9

5. Schedule M - Prepaid Expenditures5
2018 Year End Training – Chapter 9

6. Schedule M – Journal Entry6
2018 Year End Training – Chapter 9

7. Schedule M – Reversal Journal Entry7
2018 Year End Training – Chapter 9

8. Schedule M – Supporting Document8
2018 Year End Training – Chapter 9

9. Question
If we receive an invoice at the end of April and make payment at the beginning of May 2018 for services being provided in June 2018, do we fill out a Schedule M?
2018 Year End Training – Chapter 9

10. Answer
No schedule is needed since the prepayment is made in May for services provided in June, the same fiscal year.
2018 Year End Training – Chapter 9

11. Mail Schedule M and Supporting Documents to:
ACO Year-End
Mail Stop #1050
Questions?
Submit them by to
2018 Year End Training – Chapter 9