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:
- Whether the financial system processes automatic accrual reversals and if so whether those automatic entries can be suspended or overridden to post to the correct fund.
- Whether subsequent payments associated with purchase orders are automatically tied to Fund 09 and if so whether the associated system entries can be overridden or manually entries will be required.
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.)
