1. Accounting & Reporting Updates Denise Nguyen October 23 rd, 2015

2. Reminders : Tuition waivers – work with Brian Myhre/Senior Budget Analyst Correct monthly error reports SMART checklists: review and identify errors you can fix throughout the year track your interagency & interfund payables/receivables 2

3. Disclosure forms during closing Misinterpretation of the disclosure forms All fields in the disclosure forms need to be filled out. Mark N/A if it does not apply to your college On the federal pass thru disclosure, make sure you put the contract #s for each entity Provide explanations for variances on federal direct form Loans disbursed to students are not a pass through to subrecipient Incorrect CFDA #s, amounts (affect the SEFA) 3

4. Primary recipient vs. subrecipient Primary recipient gets awarded directly from a federal agency: report on the state disclosure form to go on the Schedule of Expenditures of Federal Awards. SAO uses this schedule to determine which programs to audit. Subrecipient receives pass-through grant fund from another state agency: this does not get reported on the SEFA or it would be a duplication. 4

5. Examples: College was awarded a grant from a federal agency: report the amount reimbursed on the SEFA/disclosure form. College received a pass-through funding from the Department of Commerce: use object S to wipe out expense at year end. If the college passes on to another local entity use object SX. 5

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7. GASB 68 reporting DRS prepared the Participating Employer Financial Information (PEFI): shows the proportionate share percentage for each college. OSA: calculated estimated the net pension liability (NPL) OFM: calculated the state portion for the CAFR SBCTC: calculates the proportionate share for each college for the financial statements. These calculations do not go in to AFRS 7

8. Required calculations: Net Pension Liability Pension Expense Deferred outflows: of resources represent a consumption of fund equity that will be reported as an outflow of resources (expenditure/expense) in a future period. Deferred inflows: of resources represent an acquisition of fund equity that will be recognized as an inflow of resources (revenue) in a future period. In governmental fund type accounts, a deferred inflow of resources is reported when revenues do not meet the available recognition criteria. 8

9. FYI – We participated in PRS 1/2/3 and TRS 1/2/3 None of these plans have assets PRS 1 and TRS 1 are underfunded. Other plans contribute to these plans to fulfill the underfunded portion PRS 1 and TRS 1 do not have an amortization schedule. Any increase/decrease in the proportionate share will be expensed or reduce the liability, respectively. Only PRS 2/3 and TRS 2/3 are required to amortize any increase/decrease in the proportionate share. All calculations used the Actuary’s numbers to be consistent. OFM chose to use this method as the difference between the Actuary’s numbers and the actual are immaterial. Calculations are for FY14 (a year behind). Activity in FY15 will be classified as deferred inflow/outflow. Our accounting system does not have the GLs needed for GASB 68. All entries are done and tracked manually for future use 9