Accounts and Reports

GAAP POLICY AND PROCEDURE MANUAL

• Determine nature of any restricted cash.
• Determine categories of credit risk for deposits.
• Determine reporting requirement for Kansas Municipal Investment Pool.
• Determine market value of investments.
• Determine short term vs. long term investments.
• Determine categories of credit risk for investments.
• Determine types of investments authorized by legal or contractual provisions.

• STARS accounts for cash in general ledger account number 1001 - Equity in State Treasurer's Common Cash Fund.
• Not all of the State's cash and investments are recorded in STARS - see conversion issues below.
• Investments are recorded in STARS at amortized cost and converted to fair value for GAAP reporting.
• Investment purchases are recorded in the following expenditure subobject codes:
  

  7010	Principal & Premiums
  7030	Accrued interest purchased
  7280	Investment advances (other than KPERS)
  7230	Investment Advances (KPERS)

• Investment proceeds including earnings are recorded in the following revenue subobject codes:
  

  6130	Investments
  6230	Accrued Interest on investments purchased
  3022	Interest on state agency investments
  3026	Amortization of premiums/discounts on securities purchased
  3030	Gain or loss on investments sold
  3090	Other interest, dividends, premiums and discounts
  3010	Interest on State Treasury deposits
  3011	Interest on State Treasury operating accounts
  3013	Unclaimed property investment earnings
  3014	Interest earnings from Link deposit programs
  3020	Interest on State Treasury Idle funds investments (agency 670 & 671)
  3021	Interest on State Treasury Investments (agency 296 & 670 only)
  3024	Interest on PMIB loans to state agencies (Agency 670 only)
  3027	Interest on State Treasury idle funds from MIP (Agency 671 only)
  3028	Interest on State Treasury idle funds-refund of MIP fee (Agency 671 only)
  6171	KPERS Receivables
  6172	Sale of KPERS securities (fair value)
  6173	Sale of bonds by KPERS (fair value)
  6179	KPERS Investment Clearing
  3051	Interest and dividends from KPERS investments
  3061	Gain or loss on KPERS investments

• Record corrections to cash accounts (the items formerly done on the cash control sheets):
  • Corrections between funds
  • Corrections to cash
• Record cash and investments not in STARS (the items formerly done for the AFR, other than the items on the cash control sheets):
  • Cash in agencies' imprest funds and authorized bank accounts
  • Canteen, benefit and members moneys in agencies' custody
  • Investments owned by other funds
  • Accrued interest purchased on investments is to be recorded with investment amounts per our consultants
• Adjust investments to fair value.
• Footnote disclosure cash vs. investments.

• Categories of Credit Risk of Deposits.
• Nature of Cash Restrictions.
• Definition of cash and cash equivalents.
• Categories of credit risk of investments.
• Investment Policies and related KSA's

• There is no new type of data that must be gathered to prepare the GASB 34 finanicial statements.
• The Division of Accounts and Reports, as noted above prepares the adjustments.
• Information is obtained from the State Treasurer's office, PMIB, KDFA and certain agencies.

• Although all agencies have cash and investments, the only agencies that will be involved in gathering the information for the financial statements are the following:
  • Administration - Division of Accounts and Reports.
  • State Treasurer's Office.
  • Kansas Development Finance Authority.
  • Kansas Public Employees Retirement System.
  • Kansas State University.
  • Emporia State University.
  • University of Kansas.
  • Pooled Money Investment Board.

• Investment income is shown in the fund with the investment balance and then transferred to other funds if required.
• The pooled cash investments gain / loss for fair value is shown in the state general fund.
• Cash and cash equivalents include currency on hand and demand deposits with banks or other financial institutions as well as short-term, highly liquid investments that are both (1) readily convertible to known amounts of cash and (2) so near their maturity that they present insignificant risk of changes in value because of interest rates, specifically overnight repurchase agreements.
• Investments include all investments, except overnight repurchase agreements.
• Investments in STARS are reported at amortized and converted for GAAP reporting to fair value.
• Current investments are those that mature in one year (prior to June 30 of the next year). The rationale being that a current investment should be used to provide for current operations. To further clarify if you have a three year investment that matures before June 30 of the next year, classify it as a current investment. However, if you have a three year investment that doesn't mature until after June 30 of the next year, classify it as a non-current investment.