Accounts and Reports

GAAP POLICY AND PROCEDURE MANUAL

• The statement of net assets and the statement of activities should be prepared using the economic resources measurement focus and the accrual basis of accounting. GASB 34 Paragraph 16.
• The financial statements for governmental funds should be presented using the current financial resources measurement focus and the modified accrual basis of accounting. GASB 34Paragraph 79.
• Proprietary fund statements of net assets and revenues, expenses, and changes in fund net assets should be presented using the economic resources measurement focus and the accrual basis of accounting. GASB 34 Paragraph 92.

• General ledger account number 2001 - Unredeemed Warrants.
• General ledger account number 2002 - Vouchers Payable.
• General ledger account number 2010 - Due to other funds or appropriations.
• General ledger account number 2012 - Due to federal government (KPERS only).
• General ledger account number 2026 - Payroll payable (agency fund).
• General ledger account number 2027 - 9 paid 12 Employees payroll payable (agency fund).
• General ledger account number 2043 - Sharp conversion (very small amount).
• STARS remains open through the second Monday in July to process and record vouchers, other pay documents and receipts related to the fiscal year ended on June 30.
• Bills are paid daily.

• Established a reasonable cutoff.
• Determined how to summarize information.
• Record current year automated accounts payable.
    Dr. GLA 5001 Expenditures
      Cr. GLA 2020 Accounts Payable
• Reverse encumbrances for current year accounts payable amounts.
    Dr. GLA 3002 Reserve for encumbrances
      Cr. GLA 5002 Encumbrances
• Reverse prior year accounts payable.
    Dr. 2020 Accounts Payable
      Cr. 5001 Expenditures

• SAS program OFPAYABL will be used to extract information from the operating file data for the 2 months following the end of the fiscal year (July and August). Transactions will be summarized that have a budget fiscal year less than the transaction year. This SAS program creates a comma delimited output file that can then be imported as adjustments into the Access file GAAP. This SAS program records the current year accounts payable and reverses the related encumbrances. The prior year reversals are done from the adjustment file.
• The state has very good controls over encumbrances. Therefore, we will assume that all amounts are properly encumbered. That is why an entry is done to reclassify accounts payables out of encumbrances.
• There are several liability accounts in the general ledger that need to be reviewed (2010, 2012, 2026, 2027, 2043). For the 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, represent true liability accounts.