SACS Minutes, May 2014, Attachment C

PROPOSED SACS2014ALL SOFTWARE MODIFICATIONS

(INTERIM AND UNAUDITED ACTUAL COMPONENTS)

Revise Supplemental Forms

• Form CAT—Schedule for Categoricals
  • Replace “Deferred Revenue” references with “Unearned Revenue,” due to GASB 63.
  • Remove Line 1b, Restricted Balance Transfers (Object 8997), and renumber lines accordingly in the following worksheets:
  • State and Local — Categoricals Subject to Deferred Revenues
  • State and Local — Categoricals Subject to Restricted Ending Balances
    
    
• Form GANN—Appropriations Limit Calculations
  • Update inflation adjustments on Line D2.
  • Section B, Current Year GANN average daily attendance (ADA)
    Update references and extractions to reflect ADA collected on the redesigned Form A.
  • State Aid Received section
    Replace “Revenue Limit” descriptions with “LCFF,” where appropriate, and delete lines for the following programs that are now obsolete due to Local Control Funding Formula (LCFF):
    • District:  Supplemental Instruction; Community Day School Additional Funding; Regional Occupational Centers and Programs (ROC/P) Apportionment; Charter Schools General Purpose Entitlement; Charter Schools Categorical Block Grant; and Class Size Reduction, Grade 9.  Also removed the now obsolete “County Office Funds Transfer” line, used to add back county office funds transferred.
    • COE:  Supplemental Instruction; Community Day School Additional Funding; ROC/P Apportionment; Charter Schools General Purpose Entitlement; and Charter Schools Categorical Block Grant.  Also removed the now obsolete lines used to reflect funding transferred from districts to county office of educations (COEs):  “Transfers of Special Education Special Day Class” line and “Transfers of County Community Schools” line.

Revised Reports

• Report DTERM—Determination of Major Funds
  • Modify the “Assets” and Liabilities” column extractions, for purposes of calculating major funds.  Due to GASB 65.
    • Expand the “Assets, objects 9100-9399” column to “Assets and Deferred Outflows of Resources, objects 9100-9399 and 9490-9499.”
    • Expand the “Liabilities, objects 9500-9650” column to “Liabilities and Deferred Inflows of Resources, objects 9500-9650 and 9690-9699.”
      
      
• Reports CNVRT/ENTRY/GSA/GSNA—Government-Wide Reports
  Revise as follows, due to GASB 63 and GASB 65:
  
  
• Report ENTRY—Conversion Entries
  • Detail worksheet
    • Entry CE003, Debt Issuance
      • Add new lines for Object 9490, Deferred Outflows of Resources, and Object 9690, Deferred Inflows of Resources, to allow for recognizing the deferred gain or loss on refunding of debt.
      • Modify the default conversion entry to only pull in prepaid insurance costs on debt issuance as prepaid expense.
    • Entry CE006, Earned But Unavailable Revenues and
    • Entry CE007, Elimination of Revenues Relating to Prior Periods
      • Remove line for Object 9650, Deferred Revenue.
      • Add new line for Object 9690, Deferred Inflows of Resources.
      • For Entry CE007 only:  Modify Entry description from “To eliminate certain revenues and deferred revenues. . .” to “To eliminate certain revenues and unavailable revenues . . .”
    • Entry CE013, Amortization
      • Modify Entry description from “To recognize amortization of premiums, discounts, and deferred charges relating to long-term debt” to “To recognize amortization of premiums, discounts, deferred gain or loss on refunding debt, and prepaid insurance costs.”
      • Add new lines for Object 9490, Deferred Outflows of Resources, and Object 9690, Deferred Inflows of Resources, for amortization of deferred gain or loss produced by refunding of debt.
      • Modify line “Debt Services, Other Operating Expenditures” extraction:
        • Replace extraction of Object 5800, Professional/Consulting Services and Operating Expenditures, with Object 5400, Insurance, because only prepaid insurance costs are amortized over the life of the debt.
        • Rename line to “Debt Service, Insurance.”
    • Entry CE014, Incorporation of Assets and Liabilities of Internal Service Funds
      • Rename to “CE014, Incorporation of Assets, Deferred Outflows of Resources, Liabilities, and Deferred Inflows of Resources of Internal Service Funds.”
      • Modify Entry description from “To incorporate assets and liabilities of internal service funds . . .” to “To incorporate assets, deferred outflows of resources, liabilities, and deferred inflows of resources of internal service funds . . .”
      • Add new lines for Object 9490, Deferred Outflows of Resources, and Object 9690, Deferred Inflows of Resources.
  • Beginning Balances worksheet—Modify the “BB001, Capital Assets” and “BB002, Long-Term Liabilities” entries as follows to allow restatement of beginning balances:
    • Entry BB001, Capital Assets
      • Rename to “BB001, Capital Assets and Deferred Outflows of Resources.”
      • Add new line for Object 9490, Deferred Outflows of Resources.
    • Entry BB002, Long-Term Liabilities
      • Modify Entry description from “. . . and deferred charges for debt issuance costs” to “. . . and prepaid debt insurance costs.”
      • Rename to “BB001, Long-Term Liabilities and Deferred Inflows of Resources.”
      • Add new line for Object 9690, Deferred Inflows of Resources.
    • Summary worksheet—Modify accordingly to reflect changes made to the above detail entries.

• Report CNVRT—Government-wide Conversion
  • Fund Consolidation worksheet
    • Add new lines for Object 9490, Deferred Outflows of Resources, and Object 9690, Deferred Inflows of Resources.
    • Expand “Capital Assets and Long-Term Liabilities” column to include Deferred Outflows of Resources and Deferred Inflows of Resources.
  • Conversion worksheet
    • Add new lines for Object 9490, Deferred Outflows of Resources, and Object 9690, Deferred Inflows of Resources.
    • Rename line Object 9650, Deferred Revenue to “Unearned Revenue.”
    • Update the conversion entry numbers to reflect the changes made in Report ENTRY, Detail worksheet.
    • Expand “Governmental Funds, Capital Assets and Long-Term Liabilities” column to include Deferred Outflows of Resources and Deferred Inflows of Resources.
      
      
• Report GSA—Government-wide Statement of Activities and Reconciliation of Fund Statements
  • GSA Reconciliation worksheet
    • Add “(prepaid insurance)” after “Debt issuance costs” to clarify that only prepaid insurance costs with related to issuance of debt are recorded as a deferred charge and amortized over the life of the debt.
    • Add “deferred gain or loss on refunding” after “Amortization of debt issue premium or discount.”
      
      
• Report GSNP—Government-wide Statement of Net Position and Reconciliation of Fund Statements
  • Statement of Net Position worksheet
    • Add Deferred Outflows of Resources under Capital Assets.
    • Add Deferred Inflows of Resources above Net Position.
    • Modify “Deferred Revenue” description to “Unearned Revenue.”
  • GSNP Reconciliation worksheet
    • Deferred recognition of earned but unavailable revenues—Prior to GASB 65, these revenues were recorded as deferred revenues (Object 9650); however, due to the implementation of GASB 65, these revenues are now recorded as deferred inflows of resources (Object 9690). Therefore, modify to extract the amount reported in Object 9690 in ENTRY CE006 and CE007 as reconciling amount.
    • Long-term liabilities—Add deferred gain or loss produced by refunding (from ENTRY CE003 and CE013)