1. Payroll Accruals TxEIS Payroll Accruals Region XVIII Information Systems

2. I. Accrue = Accumulate Why do we accrue? 1. From the TEA Accounting Guide: “Expenditures should be recorded and reported in the period in which they are incurred. Therefore, unpaid salaries and related benefits that have been earned but not yet paid should be recorded as accrued expenditures” (liabilities). 2. The process of accruing salaries enables a school district to accurately reflect expenses after each payday. 3. Enables the district to maintain earned but unpaid salary amounts in School YTD for each employee. 4. All businesses and city and state governments accrue pay earned in one fiscal year and not paid until the next fiscal year. 5. Accruing enables districts to fully expense salaries paid out of federal funds by June.

3. II. Calculation Formulas: Standard Pay Rate = Contract Amount ÷ 12 Daily Rate = Contract Amount ÷ Number of Days in Contract Monthly Amount Expensed = Daily Rate X Number of Days Worked Monthly Amount Accrued = Monthly Amount Expensed – Standard Pay Rate -or- Monthly Amount Accrued= Number of Days Worked X (Contract Amount ÷ Number of Days in Contract) – (Contract Amount ÷ 12)

4. Illustration Annual Salary$36,000.00 Months in Contract10 Days Employed187 Standard Pay Rate36000/12$3,000.00 Daily Rate36000/187192.513 ACCRUAL CALENDARSTAFF JOB/PAY DATA>JOB INFO TAB PAYDATE DAYS EARNEDDAILY RATEEXPENSE STANDARD PAY RATEACCRUED LIABILITYSCHOOL YTD ACCRUALNotes Object 61XXObject 2161 8/31/201210X192.513=1925.13-0.00=1925.13 EOY Accruals: Not a Pay Date, No Pay 9/20/201220X192.513=3850.27-3000.00=850.272775.40 10/20/201221X192.513=4042.78-3000.00=1042.783818.18 11/20/201220X192.513=3850.27-3000.00=850.274668.45 12/20/201214X192.513=2695.19-3000.00=(304.81)4363.64 1/20/201320X192.513=3850.27-3000.00=850.275213.90 2/20/201320X192.513=3850.27-3000.00=850.276064.17 3/20/201321X192.513=4042.78-3000.00=1042.787106.95 4/20/201320X192.513=3850.27-3000.00=850.277957.22 5/20/201320X192.513=3850.27-3000.00=850.278807.49 6/20/20131X192.513=192.51-3000.00=(2807.49)6000.00Fully Expensed 7/20/20130X192.513=0.00-3000.00=(3000.00)3000.00No Expense 8/20/20130X192.513=0.00-3000.00=(3000.00)0.00Payoff Date, No Expense Total18736000.00 0.00 Liability (2161) is eliminated.

5. III. Accounts

6. IV. TxEIS End-of-Year (August) Accruals

7. Step 1

8. Step 2

9. Step 5

10. Step 5 (continued)

12. Step 6

13. Step 6 (continued)

15. Step 7

16. Step 8

17. Step 9

18. Step 9 (continued)

19. Step 10

20. Step 10 (continued)

21. Step 11

22. STOP

23. Step 12

24. Step 12 (continued)

25. Step 13

26. Step 14

27. Step 15

28. V. TxEIS Monthly Payroll Accruals

29. Step 1 The Pay Dates must match the Pay Dates Table.

30. Step 2

31. Step 2 (continued)

33. Step 3

34. XI. Balancing Accruals Monthly

35. HRS3050: School YTD Report

36. Finance GL Account Summary: Object 2161

37. XIII. Correcting Accruals

38. 1. Accrual Variance Extract

39. 1. Accrual Variance Extract (continued)

40. 1. Accrual Variance Report (continued)

41. 1. Accrual Variance Extract (continued)

42. 2. Zero School YTD Accruals

43. 2. Zero School YTD Accruals (continued)

45. 3. Special Adjustments

46. Finished!! Questions