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 34 Paragraph 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.

• Salaries are expended as paid.
• The universities process their own payroll; the rest of the state's payroll is processed in SHARP.
• SHARP payroll software interfaces with STARS general ledger software.

• Record current year salaries payable
  Dr. GLA 5001 Expenditures
      Cr. GLA 2021 Accrued Gross Payroll Payable
• Reverse prior year salaries payable
  Dr. GLA 2021 Accrued Gross Payroll Payable
      Cr. GLA 5001 Expenditures

• The estimated amount of salaries payable was disclosed in the footnotes as an unrecorded liability in the 99 and prior AFR's.

• Payroll is paid every two weeks.
• The amount of payroll for the universities for a particular payroll can be obtained from DA175.
• The amount of payroll for the rest of the state can be obtained from SHARP.
• SAS program SALRYPAY will be used to compile the payroll information that is available in Sharp to create a comma delimited output file that can then be imported as adjustments into the Access file GAAP for the current year payable.
• The above payroll amounts include benefits. To determine the amount of salaries payable at the end of the year:
  • If an entire pay period ends before the end of the year, but is not paid until after the end of the year, the entire payroll will be accrued.
  • If only a part of a payroll period is unpaid at the end of the year, then only a percentage of the payroll will be included. (Example - if the payroll only includes 3 days in the fiscal year, then 3/10 of the payroll will be accrued).
  • In order to allocate the payroll to the correct agency / fund, payroll services will provide a report for the last payroll paid in the fiscal year that includes the amounts by agency / fund. as a basis to allocate the year-end payroll accrual. This report will be received electronically so the Financial Integrity Team can summarize it as necessary and then import with the rest of the financial statements.
  • Prior year reversals are done from the adjustments file of the prior year.

• See SAS program SALRYPAY
• See Word file Download instructions for data for more detail regarding using the SAS program SALRYPAY.
• See Excel file Comp Absc and Salaries Payable for more detail on salaries payable and compensated absences payable for GAAP. When this information was calculated for the Annual Financial Report the Excel file alslac was used, so refer to it for previous fiscal year detail.