Although non-reporting auxiliaries are not required to enter monthly auxiliary vouchers or complete a Quarterly Variance Analysis report, their financial results are reviewed by Auxiliary Accounting at the end of each fiscal year. Non-reporting auxiliaries are required to be on accrual basis at year-end, i.e. these auxiliaries are required to submit AVs at year-end, if needed, even if not required to during the fiscal year.
Any object level balance sheet variances to prior year greater than $10,000 and 30% (fund balance components are excluded) must be explained. In addition, object level income statement variances to prior year greater than $25,000 and 10%, must be explained. A formatted spreadsheet is provided by Auxiliary Accounting for preparation of the Annual Variance Analysis. Detailed instructions are available on the Auxiliary Accounting web site to assist with completion of this process.
In addition, all balance sheet amounts must be supported by detailed documentation at the object code level as of June 30th each fiscal year to ensure that the new fiscal year begins with accurate balances.
(Note: the supporting balance sheet documentation for non-reporting organizations is the same as for reporting organizations. See "Year End Closing - Balance Sheet Backup" on the Auxiliary Accounting web site for more detailed information regarding this requirement.)
Preparation of the Variance Analysis
At the beginning of each fiscal year, generally in mid-August, Auxiliary Accounting begins the process of reviewing the financial results of all non-reporting auxiliary and service organizations for the prior fiscal year. Balance sheets and income statements are run for each organization, pulling only data from 60-xxx-xx (sub-fund AUXENT), 66-xxx-xx (sub-fund AUXSER), 61-xxx-xx (sub-funds MCLAR, MPPLAN, MSERV, and MLABS), and 63-xxx-xx accounts (sub-fund AUXCOM). An auxiliary consultant highlights variances on the income statement and balance sheet that meet the criteria outlined above. The reports are then e-mailed to the fiscal officer with a request that the variances be explained. Copies of the e-mail and reports are also sent to each Campus Administrator to ensure that they are aware of Auxiliary Accounting's request for information.
Tasks Required of Non-Reporting Auxiliaries:
- Review the highlighted variances on the financial statements and determine the reason each variance occurred.
- Provide adequate explanations by the designated date to the auxiliary consultant who initially sent the reports to you.
Once the requested information has been received in Auxiliary Accounting, it will be reviewed by auxiliary consultants. The fiscal officer will be contacted if information is missing or additional clarification is required.
Provision of Balance Sheet Backup
As part of the fiscal year-end process, Auxiliary Accounting requires that all balance sheet amounts be supported by detailed documentation at the object code level as of June 30th. The listing and supporting documentation should equal balances on the Balance Sheet. Any discrepancies must be explained.
Appropriate supporting detail should be retrieved from internal subordinate systems that are system-generated and support balances. If estimates are the supporting detail, then please provide the criteria and methodology used.
Please see ASOP 44.0 – Balance Sheet Backup for more detail and examples of appropriate supporting documentation.
If adjustments to the following object codes have not been made, then documentation for them should not be included, as they are "system generated”. Also, documentation for Fund Balance items should not be included.
SYSTEM GENERATED OBJECT CODES:
8000 – Cash
8116 – Internal Receivable
8118 – FIS Receivable
8160, 8163 – Bursar Accounts Receivable
86**, 89** - Plant Level Note: Backup for 8950 (allowances) still required
9041 – Invoices Payable—EPIC
9050 – Accrued Payroll
9056 – Accrued Vacation Liability
9058 – Accrued Sick Liability
9060, 9065 – Bursar Payables
9120 – Notes Payable-Lease Purchase
92** – Bond Payable Level
9465 – Bursar-Deferred Income
96** – Notes Payable-Capital Lease
98** – Fund Balances
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