Accounts and Reports

GAAP POLICY AND PROCEDURE MANUAL

• There are many financial files in STARS. However, only the general ledger file and the operating file will be needed to prepare the financial statement for GASB 34.
• The general ledger file contains assets, liabilities, and fund balance. Additionally, this file generally maintains one revenue and one expenditure account.
• The operating file contains the detail of the revenues and expenditures. These are set up by revenue and expenditure subobject codes.
• The DAFR 8180 report is run at the end of the year. It reports the ending balance for all general ledger accounts.
• Current preparation of the AFR:
  • Information from the general ledger and operating files of STARS were summarized in SAS reports.
  • Totals from the SAS reports were entered into Excel spreadsheets.
  • All adjustments were summarized in the Excel spreadsheets.
  • The Excel spreadsheets were used to produce the final reports for the AFR.

• Determine what information the general ledger records.
• Determine how to summarize the general ledger information.
• Obtain a good understanding of the fund structure and chart of accounts.
• Determine file layouts of STARS information, how to download into Access and import into Excel.
• Work with Pam Karns on what was done to prepare current Annual Financial Report.
• Determine if information for accruals can be obtained from the general ledger (first 2 months receipts/ disbursements for FYE 6-30-98 and 99).

• For all asset and liability accounts - use the general ledger file. We will need ending balances for these accounts, so the summary of all transaction codes will be needed (summary of the current balance and the start of year balance).
• The information from the general ledger file and the operating file will be imported into an Access database.
• For the fund balance beginning of the year - use the information from the general ledger file. We will need the beginning balance for these accounts, so use only the Start of Year amounts. As we make adjustments to beginning fund balance, we will use general ledger account number 3007 for all of the entries. (We will not make entries to 3009 - retained earnings, as all fund balance accounts (3007 and 3009) will be combined for the financial statements.)
• For the revenues and the expenditures - use the information from the operating file, as this is detailed by revenue and expenditure subobject code.
• For the fund balance - end of the year: The unadjusted balance can be obtained from the general ledger file as the Current Balance and the Start of Year Balance. However, we will not be posting a closing entry for all of the adjustments we make. Therefore, we will calculate (in Access or Excel) the adjusted ending fund balance as follows: (1) the beginning balance (from the general ledger file), as adjusted, plus (2) the revenues and expenditures (from the operating file), as adjusted. We can double check this calculated amount to the total of (1) the adjusted assets less (2) the adjusted liabilities.
• When extracting the expenditures for budgetary purposes, we will need to include expenditures and encumbrances (accounts 5001, 5002 and 5003). However, when extracting the expenditures for the modified and full accrual basis statements, we will only need to pull expenditures (account 5001).The ensured integrity of the data was ensured by preparing a report in Access that summarizes the general ledger file by account number for all transaction codes. The totals on this report can then be checked back against the STARS DAFR 8180 report.
• Conversion tables will be set up in Access for the following:
  • Funds
  • General ledger accounts
  • Revenue subobject codes
  • Expense subobject codes
  • Functional classification
• All adjustments will be entered into an Access table. The adjustments will be written in order to build statements from the budgetary basis to the modified accrual basis and full accrual basis. The type of adjustments are as follows:
  • Cash corrections
  • Budgetary cash basis adjustments
  • Modified accrual adjustments
  • Full accrual basis adjustments
• Information in the operating file can be used to determine accounts payable at year-end. See the accounts payable section for further discussion of this topic.
• There are several liability accounts in the general ledger that need to be reviewed (2010, 2012, 2026, 2027, 2043). For the current AFR, these were shown as other financing sources. For the CAFR, these accounts are treated as liability accounts. The Division of Accounts and Reports needs to determine if STARS can be changed so that these accounts are no longer utilized, or if utilized, they represent true liability amounts.
• Outlawed warrants are processed in STARS in either general ledger account 3007 - fund balance or general ledger account 3009 - retained earnings depending on the type of adjustment (rather than reversing the expenditure when the warrant is expired or recognizing a revenue for the warrants expired). Therefore, it will be necessary for financial statement preparation to make a reclass entry for these outlawed warrants. Per K.S.A. 10-812 except as otherwise specifically provided by law, all unpaid cancelled warrants are deposited in Cancelled Warrants Payment Fund (2645) and then on each July 1st any unencumbered balance in excess of $100,000 in that fund is transferred to the State General Fund. In the past, an entry has been made to debit fund balance and credit other financing sources. For GASB 34 reporting, the entry will need to be a debit to fund balance and a credit to other income.