Auxiliary Standard Operating Procedures
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| SUBJECT: |
Balance Sheet Backup for Year-End |
| SOURCE: |
Auxiliary Accounting Department, FMS |
ORIGINAL DATE
OF ISSUE: |
September, 2007 |
DATE OF LAST
REVISION: |
August, 2008 |
| ASOP NO: |
44.0 |
| RATIONALE: |
To outline the requirements of auxiliary and service units for balance sheet backup submitted to Auxiliary Accounting as elements of the year-end closing. |
| ASOP: |
As part of the fiscal year-end Auxiliary Accounting requires that all non-system generated balance sheet amounts be supported by detailed documentation at the object code level. The listing and supporting documentation should equal balances on the balance sheet; if not, any discrepancies must be explained.
Organizations that carry inventory must advise the consultant as to the date of the last physical count.
Supporting detail for all balance sheet object codes must be received by the unit’s auxiliary consultant by July 31st to close the ended fiscal year and begin the next fiscal year effectively.
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 Appendix A for examples of acceptable supporting detail.
If adjustments have not been made on the following by the organizations then documentation for the following object codes 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
Your auxiliary consultant may be contacted with further questions regarding balance sheet backup. |
| DEFINITIONS: |
|
CROSS
REFERENCE: |
See Year-End Closing Process
See Who is my Auxiliary Consultant? |
RESPONSIBLE
ORGANIZATION: |
Financial Management Services |
Appendix A
EXAMPLES OF ACCEPTABLE DETAIL –
ACCOUNTS RECEIVABLE – NON-FIS SUB-SYSTEM
| 8119 Balance as of June 30th: |
$50,000 |
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| Customer Name |
Amount |
Invoice # |
Current |
1-30 days |
31-60 days |
61-90 days |
Over 91 days |
Total |
| Jones |
$15,000 |
AB123 |
$1,000 |
$2,000 |
$4,000 |
$1,000 |
$7,000 |
$15,000 |
| Smith |
$2,000 |
CC899 |
$500 |
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|
$1,500 |
|
$2,000 |
| Brown |
$13,000 |
FB778 |
$10,000 |
|
$1,100 |
$1,900 |
|
$13,000 |
| Williams |
$5,000 |
OU156 |
$250 |
$4,750 |
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$5,000 |
| Green |
$15,000 |
SC462 |
$5,000 |
$3,000 |
$1,000 |
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$6,000 |
$15,000 |
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$50,000 |
|
$16,750 |
$9,750 |
$6,100 |
$4,400 |
$13,000 |
$50,000 |
ACCOUNTS RECEIVABLE – FIS SYSTEM SHOWING UNBILLED ACTIVITY
| 8122 Balance as of June 30th: |
| $25,000 |
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| Customer Name |
Amount |
Date of Service |
| Ball |
$9,000 |
20-Jun |
| Burns |
$4,500 |
25-Jun |
| Freeman |
$6,000 |
26-Jun |
| Short |
$5,500 |
28-Jun |
|
$25,000 |
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INVENTORY
Please provide the last page showing totals from sub-system.
Retain entire report in the departments.
| Valuation Date: |
06/04/2007 |
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| Value of Class is |
$ 2,934.51 |
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| Part Number |
Part Description |
On Hand |
Avg.Cost |
Value |
| 0172630 |
Item 1 |
0.00 |
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| D0101000 |
Item 2 |
1.00 |
10.39 |
10.39 |
| D0110000 |
Item 3 |
0.00 |
115.00 |
0.00 |
| D0110003 |
Item 4 |
7.00 |
6.38 |
44.66 |
| D0110004 |
Item 5 |
143.00 |
7.60 |
1,086.80 |
| D0113200 |
Item 6 |
37.00 |
2.23 |
82.51 |
| D0115000 |
Item 7 |
255.00 |
1.95 |
497.25 |
| D0115001 |
Item 8 |
3.00 |
1.95 |
5.85 |
| D0115002 |
Item 9 |
332.00 |
1.95 |
647.40 |
| D0115003 |
Item 10 |
287.00 |
1.95 |
559.65 |
ALLOWANCE FOR INVENTORY
| Acct 60**** |
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| Inventory (Support required as above) |
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$ 2,934.51 |
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| Allowance 3% |
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$ 88.04 |
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| Resale |
Net Amount |
$ 2,846.47 |
DEFERRED INCOME
| Assumptions: |
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| Organization receives a mandatory student fee for summer term |
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| Fee is earned and recognized over the entire term |
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| Summer term equals 14 weeks |
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| Total mandatory fee received in May: |
$140,000 |
| Earn $10,000/week ($140,000 / 14 weeks) |
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The table below supports a June 30th deferred income balance of $60,000.
| Income and deferred income are calculated as follows: |
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May |
June |
July |
August |
Total |
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(4 weeks) |
(4 weeks) |
(4 weeks) |
(2 weeks) |
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| Income (based on $10,000 / week) |
$40,000 |
$40,000 |
$40,000 |
$20,000 |
$140,000 |
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| Deferred Income Calculation: |
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| Beginning balance |
$140,000 |
$100,000 |
$60,000 |
$20,000 |
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| Less: amount earned |
$40,000 |
$40,000 |
$40,000 |
$20,000 |
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| Ending deferred income balance |
$100,000 |
$60,000 |
$20,000 |
$0 |
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| At the end of the summer term, deferred income balance is zero. |
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| Income of $140,000 was recognized over the four month period. |
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PREPAID EXPENSE
Assumptions:
Purchased 3 year equipment maintenance contract
Original cost: $36,000
Purchased January 1, 2007
Expense $1,000/month ($36,000 / 3 years / 12 months)
The table below supports a June 30, 2007 prepaid expense balance of $30,000.
|
January |
February |
March |
April |
May |
June |
| Expenses: |
$1,000 |
$1,000 |
$1,000 |
$1,000 |
$1,000 |
$1,000 |
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| Prepaid Expense: |
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| Beginning Balance |
$36,000 |
$35,000 |
$34,000 |
$33,000 |
$32,000 |
$31,000 |
| Less: expense incurred |
$1,000 |
$1,000 |
$1,000 |
$1,000 |
$1,000 |
$1,000 |
| Ending Prepaid Expense Balance |
$35,000 |
$34,000 |
$33,000 |
$32,000 |
$31,000 |
$30,000 |
| Example of calculation - |
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| Purchase price: |
$36,000 |
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| Contract period in months: |
36 |
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| Contract start date: |
1-Jan-07 |
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| Months remaining on contract |
30 |
(as of June 30, 2007) |
| Prepaid expense balance |
$30,000 |
(months remaining * $1,000) |
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| The following year the calculation would be as follows: |
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| Months remaining on contract: |
18 |
(as of June 30, 2008) |
| Prepaid expense balance |
$18,000 |
months remaining * $1,000) |
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