| Subject |
Deferred Revenues |
| Authoritative Literature |
GASB 34 Paragraphs 16, 79, 92 |
| General Description |
- 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.
|
| Current Reporting by STARS |
Deferred revenues is not accounted for in STARS even though general
ledger account 2025 exists. |
Conversion Issues
(Data Needed, Journal Entries Required) |
- Addressed the 1.5 mills levied by each county.
- Address advances received from federal government using information
from the State cash management system.
- Need to determine any other material advances.
- Deferred revenues from Department of Revenue, SRS and Universities:
Modified accrual adjustment
Dr. GLA 1010 Accounts Receivables or 1011 Taxes Receivables
Cr. GLA 2025 Deferred Revenues
Full accrual adjustment
Dr. GLA 4001 Revenues
Cr. GLA 2025 Deferred Revenues
|
| Footnote Disclosure Required |
Accounting policy. |
| Methodology of Gathering Data (including name of State agency and detail
description of data) |
- A portion of the taxes and SRS receivables are considered to be
deferred revenues. Refer to the policy and procedures manual section
on Receivables / Revenues.
- There is a statewide cash management system established to ensure minimal federal funds
on hand. Federal reimbursements are drawn down the same day the state checks or EFT's
are issued. The system monitors when state checks are cleared and calculates interest
on the float. No federal funds are receivable at year-end. Two agencies handle over 90%
of the federal funds:
- SRS - Medicaid providers bill state daily or weekly. Weekly billers bill
through Friday and state issues check the following Friday (estimated at $15 million
per week). Other than this one-week lag, SRS is not aware of any material amounts
of service provided by subrecipient that would be unbilled to the state. This lag
time is what was referred to in prior audit reports as Medicaid IBNR. Aging is the
same as this. Conclusion - no accruals are necessary for SRS federal funds.
- Education - Funds are drawn down the same day the checks are issued. Conclusion
- there are no accounts payable or accounts receivable at year-end.
- Any receivable / deferral related to the 1.5 mills levied by each
county were determined to not be material.
- Amounts reported by the universities.
- No other material advances were identified.
|
| Material State Agencies Affected |
Most state agencies. |
| Policies |
None. |
| Contacts |
Nick Kramer, Department of Revenue
Lisa Hockenberry, Division of Accounts and Reports |
