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SACS Minutes, May 2012, Attachment B

This document is Attachment B to the Standardized Account Code Structure (SACS) Forum meeting minutes for May 15, 2012.
Separately reporting charter schools - closing out Fund 09 to Fund 01
Example accounting entries

Following are some examples of closing out Fund 09 to Fund 01 (or Fund 62) for charter schools reporting separately using the standardized account code structure (SACS).

Example 1

On June 30, 2012 a charter school has only a $20,000 ending cash balance in Fund 09, Resource 0000. No accruals are necessary.

July 1, 2012 – restatement entries are recorded to transfer the cash balance from Fund 09 to Fund 01
Type

Account String

Amount

Debit

09-0000-0-0000-0000-9795

$20,000

Credit

09-0000-0-0000-0000-9110

$20,000
Debit

01-0000-0-0000-0000-9110

$20,000

Credit

01-0000-0-0000-0000-9795

$20,000
Example 2

On June 30, 2012 a charter school identifies year-end revenue and expenditure accruals for Fund 09, Resource 0000.

June 30, 2012 – year-end accruals are recorded
Type

Account String

Amount

Debit

09-0000-0-0000-0000-9290

$20,000

Credit

09-0000-0-0000-0000-8590

$20,000
Debit

09-0000-0-0000-0000-5800

$15,000

Credit

09-0000-0-0000-0000-9500

$15,000
June 30, 2012 EFB:
Type

Account String

Amount

Credit

09-0000-0-0000-0000-979Z

$5,000

Account balances that roll to July 1, 2012:
Type

Account String

Amount

Credit

09-0000-0-0000-0000-9791

$5,000
Debit

09-0000-0-0000-0000-9290

$20,000

Credit

09-0000-0-0000-0000-9500

$15,000

Scenario A

Restatement entries are recorded between Fund 09 and Fund 01. Accruals are not reversed in the subsequent year. The revenues and expenditures associated with prior-year accruals are recorded in Fund 01.

a) July 1, 2012 – restatement entries are recorded.

Type

Account String

Amount

Debit

09-0000-0-0000-0000-9795

$5,000

Debit

09-0000-0-0000-0000-9500

$15,000

Credit

09-0000-0-0000-0000-9290

$20,000

Debit

01-0000-0-0000-0000-9290

$20,000

Credit

01-0000-0-0000-0000-9500

$15,000

Credit

01-0000-0-0000-0000-9795

$5,000

b) July 2012 – revenues and expenditures associated with prior-year accruals are recorded in Fund 01.

Type

Account String

Amount

Debit

01-0000-0-0000-0000-9110

$5,000

Debit

01-0000-0-0000-0000-9500

$15,000

Credit

01-0000-0-0000-0000-9290

$20,000

Scenario B

Restatement entries are recorded between Fund 09 and Fund 01. Accruals are reversed in the subsequent year. The revenues and expenditures associated with prior-year accruals are recorded in Fund 01.

a) July 1, 2012 – restatement entries are recorded.

Type

Account String

Amount

Debit

09-0000-0-0000-0000-9795

$5,000

Debit

09-0000-0-0000-0000-9500

$15,000

Credit

09-0000-0-0000-0000-9290

$20,000

Debit

01-0000-0-0000-0000-9290

$20,000

Credit

01-0000-0-0000-0000-9500

$15,000

Credit

01-0000-0-0000-0000-9795

$5,000

b) July 1, 2012 – prior-year accruals are automatically reversed.

Type

Account String

Amount

Debit

09-0000-0-0000-0000-8590

$20,000

Credit

09-0000-0-0000-0000-9290

$20,000

Debit

09-0000-0-0000-0000-9500

$15,000

Credit

09-0000-0-0000-0000-5800

$15,000

c) July 2012 – adjusting entry to reverse the July 1 automatic accrual reversal.

Type

 Account String

Amount

Debit

09-0000-0-0000-0000-9290

$20,000

Credit

09-0000-0-0000-0000-8590

$20,000

Debit

09-0000-0-0000-0000-5800

$15,000

Credit

09-0000-0-0000-0000-9500

$15,000

d) July 2012 – revenues and expenditures associated with prior-year accruals are recorded in Fund 01.

Type

Account String

Amount

Debit

01-0000-0-0000-0000-9110

$5,000

Debit

01-0000-0-0000-0000-9500

$15,000

Credit

01-0000-0-0000-0000-9290

$20,000

Scenario C

Restatement entries are recorded between Fund 09 and Fund 01. Accruals are reversed in the subsequent year. The revenues and expenditures associated with prior-year accruals are recorded in Fund 01. The actual revenue and expenditure amounts differ from the accrued amounts.

Assume the first three entries are the same as in Scenario B, a through c.

d) July 2012 – revenues and expenditures associated with prior-year accruals are recorded in Fund 01. Actual amounts differ from accrued amounts.

Type

Account String

Amount

Debit

01-0000-0-0000-0000-9110

$3,500

Debit

01-0000-0-0000-0000-9500

$15,500

Credit

01-0000-0-0000-0000-9290

$19,000

e) Adjusting entries made to clear variances in revenue and expenditure amounts accrued versus actually processed.

Type

Account String

Amount

Debit

01-0000-0-0000-0000-5800

$500

Credit

01-0000-0-0000-0000-9500

$500

Debit

01-0000-0-0000-0000-8590

$1,000

Credit

01-0000-0-0000-0000-9290

$1,000

Note that the above examples are not all-inclusive and actual entries will vary among charter schools based on several variables, including:

It is also important to note that the appropriate entries must be made in order for all Fund 09 accounts, with the exception of objects 9791, 9793, and 9795, to have a zero balance; otherwise, a fatal technical review exception will be generated in the SACS software. (Beginning 2013–14 objects 9791, 9793, and 9795 are also required to have a zero balance.)

Questions:   Financial Accountability & Information Services | sacsinfo@cde.ca.gov | 916-322-1770
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