ENTRIES MADE PRIOR TO CLOSING

ENTRIES MADE PRIOR TO CLOSING There are a few entries that should be done before the end of the fiscal year that will make the closing process a little smoother. Included are some examples for your reference. We will be going over a fund check form. This form can be used on a monthly or quarterly basis to assist you with the clearing of suspense accounts. Illustrated are some common problems and how to make the corrections. 4.1 June 2014

PREPAID EXPENSE Account 9330 - Payments made in advance of the receipt and use of services. STEP 1 Reverse (or adjust) any prior year closing entries using the TRNADJ screen. Insurance premiums paid in the Prior Fiscal Year for the Current Fiscal Year of $1,500 The accrual entry in the Prior Fiscal Year was: Res Goal Func Obj DR Prepaid Expense xxxx 9330 1,500 CR Insurance xxxx xxxx xxxx 5400 1,500 The reversing entry in the Current Fiscal Year is: Res Goal Func Obj DR Insurance xxxx xxxx xxxx 5400 1,500 CR Prepaid Expense xxxx 9330 1,500 STEP 2 Establish Current Fiscal Year accrual. This will be done after June 30. Use the FYTRN screen with 06/30/XX (Current Fiscal Year) date. Insurance premiums paid in the Current Fiscal Year for the Subsequent Fiscal Year of $2,000 Res Goal Func Obj DR Prepaid Expense xxxx 9330 2,000 CR Insurance xxxx xxxx xxxx 5400 2,000 4.2 June 2014

UNEARNED REVENUE Object 9650 Revenue which has been received, but is unearned, as of June 30. Complete the FORM CAT to determine amount of unearned revenue. GASB 65 STEP 1 The use of the term Deferred should be limited to items reported as deferred outflows of resources or deferred inflow of resources. Thus when discussing activity in 9650 we will use the term unearned. Reverse any remaining prior year closing entries. This reversal must be posted with a journal entry (TRNADJ in FIS) before June 30. Please remember to use the correct resource numbers when reversing the prior year s closing entries. Example Title I revenues exceeded expenditures on Form CAT for the Prior Fiscal Year causing the unearned revenue to be recognized in the Current Fiscal Year. The unearned revenue entry in the Prior Fiscal Year was: Res Obj DR All Other Federal Revenue 3010 8290 $3,000 CR Unearned Revenue 3010 9650 $3,000 The reversing entry in the Current Fiscal Year is: Res Obj DR Unearned Revenue 3010 9650 $3,000 CR All Other Federal Revenue 3010 8290 $3,000 STEP 2 Example Establish the Current Fiscal Year closing entry. Use a journal (FYTRN in FIS) with a June 30 date (Current Fiscal Year) to post this entry. Title I revenues exceeded expenditures on Form CAT for the Current Fiscal Year so excess revenue must be deferred to the Subsequent Fiscal Year. Res Obj DR All Other Federal Revenue 3010 8290 $3,500 CR Unearned Revenue 3010 9650 $3,500 4.3 June 2014

ESTABLISHING DUE TO/DUE FROM ACCOUNTS Step 1 Make sure that all expenditures are accounted for in the proper fund. If one fund owes another fund at year-end, establish a due to/due from account. (See Sample 1) Object 9311 - DUE FROM - (Asset) amount due from another district fund. Object 9611 - DUE TO - (Liability) amount due to another district fund. The Due To (9611) in one district fund must equal the Due From (9311) in another district fund or the district general ledger will be out of balance. A tip when establishing Due To/Due From's is to use sub-accounts. Step 2 EC 42603 requires that prior fiscal year due to/due from accounts must be repaid the same fiscal year, or in the following fiscal year if the transfer takes place within the final 120 calendar days of a fiscal year. Account numbers 9311/9611 rolling over into the beginning balances for the subsequent fiscal year will change to 9312/9612. Process an auditor s transfer to clear the current fiscal year 9312/9612 s. (See Sample 2) Object 9312 - DUE FROM - (Asset) amount due from another district fund - PY. Object 9612 - DUE TO - (Liability) amount due to another district fund - PY. 4.4 June 2014

ATTENTION San Diego County Office of Education ACCOUNTING SECTION JOURNAL ENTRY Sample 1 (Posting Document) XYZ School L DOCUMENT # J DATE 06-30-XX DISTRICT NUMBER 02 I N ACCOUNT NUMBER E DEBIT CREDIT REFERENCE FUND-SUB RESRCE-SUB GOAL FUNC-SUB OBJ-SUB SCH LOC COST PJ-YR 1 03-00 XXXX-000 9311-013 31,704.69 CAFE REIMB/JUNE 2 03-00 XXXX-XXX XXXX XXXX 2200 2,614.19 3 03-00 XXXX-XXX XXXX XXXX 2400 22,931.87 4 03-00 XXXX-XXX XXXX XXXX 3202 1,819.42 5 03-00 XXXX-XXX XXXX XXXX 3302 1,423.61 6 03-00 XXXX-XXX XXXX XXXX 3402 2,454.16 7 03-00 XXXX-XXX XXXX XXXX 3502 152.98 8 03-00 XXXX-XXX XXXX XXXX 3602 308.46 9 10 13-00 XXXX-XXX XXXX XXXX 2200 2,614.19 TO REIMB G/F JUNE 11 13-00 XXXX-XXX XXXX XXXX 2400 22,931.87 12 13-00 XXXX-XXX XXXX XXXX 3202 1,819.42 13 13-00 XXXX-XXX XXXX XXXX 3302 1,423.61 14 13-00 XXXX-XXX XXXX XXXX 3402 2,454.16 15 13-00 XXXX-XXX XXXX XXXX 3502 152.98 16 13-00 XXXX-XXX XXXX XXXX 3602 308.46 17 13-00 XXXX-000 9611-003 31,704.69 18 PLEASE NOTE: DO NOT EXCEED 18 LINES PER PAGE. EXPLANATION: ESTABLISH "DUE TO/DUE FROM" FOR FOOD SERVICES JUNE 20XX REIMBURSEMENT COUNTY OFFICE USE ONLY Prepared By: Date: Input date: Approved By: WHITE - SDCOE Form 368 - Financial Acctg. CANARY - SDCOE San Diego County Office of Educ. 03-99 Carbonless Form PINK - School 4.5 June 2014

Sample 2 COUNTY OFFICE USE ONLY ATTENTION San Diego County Office of Education Auditor Date: ACCOUNTING SECTION Entered: Date: (Posting Document) REQUISITION ON COUNTY AUDITOR Office of Educ. Date: PAGE 1 of 1 FOR INTERFUND CASH TRANSFER Reference: A00 COUNTY AUDITOR USE ONLY FUND NO. 83000 10100 ACCOUNT NUMBER DIST. DISTRICT OR DEBIT CREDIT 9110 CASH NO. FUND NAME ORACLE # (No Post FA) Fund-Sub Resrce-Sub Goal Func-Sub Objt-Sub Sch Loc Cst PjYr 02 XYZ 5XXXX 31,704.69 31,704.69 13-00 XXXX-000 9612-003 NOTE: ACCOUNT NUMBERS 9311/9611 ARE USED FOR CLOSING ENTRIES DURING THE CURRENT FISCAL YEAR. BEGINNING BALANCE ACCOUNT NUMBERS FOR THE SUBSEQUENT FISCAL YEAR ARE 9312/9612 RESPECTIVELY. COUNTY AUDITOR USE ONLY FUND NO. 10100 80100 ACCOUNT NUMBER DIST. DISTRICT OR DEBIT 9110 CASH CREDIT NO. FUND NAME ORACLE # (No Post FA) Fund-Sub Resrce-Sub Goal Func-Sub Objt-Sub Sch Loc Cst PjYr 02 XYZ 5XXXX 31,704.69 31,704.69 03-00 XXXX-000 9312-013 EXPLANATION: REF: FD 03-00 FR FD 13-00 Examined, Approved, and Allowed PHONE NUMBER: CLEAR PRIOR YEAR "DUE TO/DUE FROM". REIMBURSE GENERAL FUND FOR CAFETERIS FUND EXPENSES. Date: 7/13/XX BY: BOARD APPROVAL DATE: July 10, 20XX. Deputy Superintendent of Schools Requisition Authorized By: Deputy Auditor and Controller Form 290d - Financial Acctg San Diego County Office of Education 4.6 June 2014

Fund Check XYZ Funds in Use * 03-00, 06-00, 14-00, 25-19, 30-00 Watch for Sub-codes. *Check DDACCT **Check GLTRBL ***Check REVINQ and EXPINQ On-Line ** ** ** ** ** ** ** *** *** Normal Balance Dr Cr Dr Cr Dr/Cr Cr Dr Dr/Cr Dr/Cr Dr/Cr Date Init Fund 9140 9140 9201 9202 9311/9312 9510 9511 9611/9612 9999-7999 9999-8999 Comments 25-19 1 45 03-00 2 2,000 2 1,000 06-00 2 5,000 2 4,500 13-00 3 7,130 3 7,130 1. Collection Advice (INCREC) posted incorrectly. posted Collection Advice (INCREC) to Fund 25-19 as $127 instead of $172 DR 9140 $127 CR 8681 - $127 FA posted Deposit Permit (DPOSIT) to Fund 25-19 DR 9110 $172 CR 9140 - $127 CR 8999 - $45 Use TRNADJ to correct entry. (See sample #1 on next page). 2. Accruals must balance (net to zero). (See sample #2 on next page). 3. Suspense items must be cleared. (See sample #3 on next page). 4.7 June 2014

FUND CHECK CORRECTIONS 1. Use TRNADJ screen to correct collection advice posting: Account DR CR Fund Res Obj 25-19 9999 8999 Revenue Suspense 45 25-19 xxxx 8681 Developer Fees 45 2. To balance accruals, adjust 9202/9511; never change 9201 or 9510: Account DR CR Fund Res Goal Func Obj 03-00 xxxx 8XXX Revenue 1,000 03-00 xxxx 9202 A/R - Collections 1,000 06-00 xxxx 9511 C/L - Payments 500 06-00 xxxx xxxx xxxx 4XXX Books & Supplies 300 06-00 xxxx xxxx xxxx 5XXX Svcs/Oper. Exp. 200 3. Use TRNADJ screen to clear cafeteria suspense and balance accrual: Account DR CR Fund Res Obj 13-00 9999 8999 Revenue Suspense 7,130 13-00 xxxx 9202 A/R-Collections 7,130 4.8 June 2014

Fund Check Funds in Use * Watch for Sub-codes. *Check DDACCT **Check GLTRBL ***Check REVINQ AND EXPINQ On-Line** ** ** ** ** ** ** *** *** Date Init Fund 9140 9201 9202 9311/9312 9510 9511 9611/9612 9999-7999 9999-8999 Comments 4.9 June 2014

CLEARING APPORTIONMENT SUSPENSE Total of Apportionment Auditor Transfer posted by Financial Accounting to suspense through 06/30: Example 1 Posted to Suspense from Feb to June Fund Res Obj DR CR 03-00 Suspense (PY) 9999 8999 $ 51,558 03-00 Cash 0000 9110 $ 51,558 The district completes the following Journal Entries to clear the Apportionment suspense and set up year-end accruals: To adjust within a fund, use TRNADJ in FIS or a JE in PeopleSoft. To move cash between funds 03 & 06 in FIS, use DISTCT. Create an Auditor's Transfer when moving between funds other than 03 & 06. Example 2 Clear Suspense - use current date but no later than 6/30 Fund Res Obj DR CR 03-00 State Aid (PY) 0000 8019 $ 51,558 03-00 Suspense (PY) 9999 8999 $ 51,558 Example 3 Accrue Liability - use 6/30 in FIS or period 998 in PeopleSoft Fund Res Obj DR CR 03-00 State Aid (PY) 0000 8019 $ 48,442 03-00 Current Liabilities - (PY) 0000 9510 $ 48,442 Example 4 Post PY to Suspense Fund Res Obj DR CR 03-00 Suspense (PY) 9999 8999 $ 48,442 03-00 Cash 0000 9110 $ 48,442 4.10 June 2014

County School CY Advance Principal Apportionment Exhibit C Local Educational Agencies Type 2012-13 Adjusted School Total Revenue Limit Net State Aid (0000-8011) 2012-13 Adjusted Local Control Funding Formula Categorical State Aid - (0000-8011/8015) Total Principal Apportionment Education Protection Account (EPA) Entitlement as of 2013-14 Advance (1400-8012) A-2 A-15 B-1 37 XXXXX XXXXXXX XYZ UNIFIE $ 3,000,000 $ 1,000,000 $ 4,000,000 $ 1,500,000 County School Local Educational Agencies Type CY First Principal Apportionment Exhibit C 2012-13 Adjusted School Total Revenue Limit Net State Aid (0000-8011) 2012-13 Adjusted Local Control Funding Formula Categorical State Aid - (0000-8011/8015) Recomputations and Adjustments Total Principal Apportionment Education Protection Account (EPA) Entitlement as of 2013-14 Advance (1400-8012) A-2 A-16 A-27 A-17 A-18 37 XXXXX XXXXXXX XYZ UNIFIE $ 3,500,000 $ 1,000,000 $ (100,000) $ 4,400,000 $ 1,400,000 CY First Principal Prior Year Recomputations and Adjustments CDS LEA Fiscal Year Program Amount XX XXXXX XXXXXXX XYZ PY School Total Revenue Limit $ (100,000) County School Local Educational Agencies Type CY Second Principal Apportionment Exhibit C 2012-13 Adjusted School Total Revenue Limit Net State Aid (0000-8011) 2012-13 Adjusted Local Control Funding Formula Categorical State Aid - (0000-8011/8015) Recomputations and Adjustments Total Principal Apportionment Education Protection Account (EPA) Entitlement as of 2013-14 Advance (1400-8012) A-2 A-16 37 XXXXX XXXXXXX XYZ UNIFIE $ 4,000,000 $ 1,250,000 $ (100,000) $ 5,150,000 $ 1,350,000 4.11 June 2014

Advanced Apportionment Advance 5% 5% 9.00% 9% 9% 9% 9.00% Total XYZ Apportionment July August September October November December January Received State Aid $ 4,000,000 $ 200,000 $ 200,000 $ 360,000 $ 360,000 $ 360,000 $ 360,000 $ 360,000 $ 2,200,000 Gate Suspense * - - - - - - - - Prior Year Suspense * - - - - - - - - - AT CASH $ 4,000,000 $ 200,000 $ 200,000 $ 360,000 $ 360,000 $ 360,000 $ 360,000 $ 360,000 $ 2,200,000 100.00% 100.00% 57.79% 0.00% 0.00% P-1 Apportionment P-1 1/5 ** 1/5 ** 57.79% X 1/5 ** 0% X 1/5 ** Thru XYZ Apportionment February March April May June State Aid $ 4,500,000 $ 460,000 $ 460,000 $ 265,835 $ - $ 3,385,835 Prior Year Suspense * (100,000) (20,000) (20,000) (11,558) - (51,558) Example 1 & 2 AT CASH $ 4,400,000 $ 440,000 $ 440,000 $ 254,277 $ - $ 3,334,277 P-2 Apportionment & Deferrals P-2 142.2% 157.8% XYZ Apportionment July Deferred July P-2 Totals State Aid $ 5,250,000 $ 654,165 $ 1,210,000 $ - $ 5,250,000 Prior Year Suspense * (100,000) (28,442) (20,000) - (100,000) Example 3 & 4 AT CASH $ 5,150,000 $ 625,723 $ 1,190,000 $ - $ 5,150,000 * Financial Accounting will post Prior Year Recomputations and Adjustments to suspense. ** 1/5 recertified apportionment less receipts in Advanced *** The July payment also includes any difference between the P-1 & P-2. 4.12 June 2014