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Accounting Policy Meeting
Tuesday, June 30, 2020

Agenda

Meeting Handout PDF

Time Topic Speaker
1:00 p.m. Welcome and Introductions Shelly Arnold, financial reporting supervisor, Fiscal Management Division, Texas Comptroller of Public Accounts
1:05 – 1:45 p.m. GASB Updates Michael Hensley, financial reporting analyst, Fiscal Management Division, Texas Comptroller of Public Accounts
1:45 – 2:00 p.m. Year-End Close Process David Tropea, financial reporting analyst, Fiscal Management Division, Texas Comptroller of Public Accounts
2:00 – 2:15 p.m. Note 16 Subsequent Events and Post-Period Subsequent Events Anis Golshan, financial reporting analyst, Fiscal Management Division, Texas Comptroller of Public Accounts
2:15 – 2:30 p.m. Statement of Cash Flows Gaby Needham, financial reporting analyst, Fiscal Management Division, Texas Comptroller of Public Accounts
2:30 – 3:00 p.m. Questions/Adjourn Shelly Arnold, financial reporting supervisor, Fiscal Management Division, Texas Comptroller of Public Accounts

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Registration for Webinar

Register for the June 30 (1:00 p.m CDT) Accounting Policy User Group Meeting at:

https://txcpa.webex.com/txcpa/onstage/g.php?MTID=e93b6a4fad210caf414d41d4e1a74235c

After registering, you will receive a confirmation email containing information about joining the webinar.

Tips to Follow During the Meeting:

  • We highly recommend using Google Chrome as the browser to attend the webinar.
  • If you lose the connection to the webinar while it is in progress, find your registration confirmation email and click the link to join the webinar again. The presentation should resume in progress.
  • If you are using a web browser with multiple tab functionality, open a new window with only a single tab to ensure you do not have multiple sessions open.

To End the Meeting:

At the end of the presentation, the moderator will end the meeting. Close your web browser when the webinar is over.

CPE Credit:

At this time, no CPE Credit will be offered.

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Contacts

If you have questions about the meeting, contact Gaby Needham at (512) 463-3917 or Gabriela.Needham@cpa.texas.gov

Questions and Answers

GASB Updates

Higher education activity must report custodial funds in GAAP Fund 3400 – Education – Custodial Funds (FT22).

The Comptroller’s office is analyzing the appropriate fund type to use and will work with the agencies in July and August 2020.

The checks need to be recorded in another D23 fund in General (FT01) until the proper owner is determined and the correct accounting entries can be made.

The agency may label the fund as suspense fund or the most appropriate title. There is no wrong or right title. For more information see the Suspense Funds (FT09) page on the AFR Reporting Requirements website and the Profile Review for Fund Profile (D23) (FPP A.031) and Deposit of Funds Held in Suspense (FPP D.005).

The agency must use fund 0900 for deposits where final disposition has not yet been determined as outlined by Deposit of Funds Held in Suspense (FPP D.005) — however, the fund must point to FT01 or 05. If any balances are in FT09 during fiscal 2021, correcting entries must be made to classify activity in FT01 or FT05 and all funds (D23s) pointing to FT09 must be made inactive. Furthermore, revenues and/or liabilities must be appropriately recognized as of the fiscal year-end. Accruals with applicable future period reversals may be used based on historical trends when final disposition has not yet been determined. For more information see the Suspense Funds (FT09) page on the AFR Reporting Requirements website and the Deposit of Funds Held in Suspense (FPP D.005).

Funds held for others is inappropriate for governmental fund types. The agency must recognize the revenue or liability in the same manner they would estimate other year-end accruals. Reversing entries are recommended for this type of situation.

To be determined. Guidance will be provided through updates to the AFR Reporting Requirements website and during the August’s APS meeting.

Yes. The agency needs to work with their assigned financial reporting analyst and/or ACO to make modifications to existing fund (D23) profiles in USAS. For more information see Suspense Funds (FT09) page on the AFR Reporting Requirements website and the Profile Review for Fund Profile (D23) (FPP A.031) and Deposit of Funds Held in Suspense (FPP D.005).

The fund must point to FT01 or FT05. If any balances are in FT09 during fiscal 2021, correcting entries must be made to classify activity in FT01 or FT05 and all funds (D23s) pointing to FT09 must be made inactive.

Since the implementation has been postponed to fiscal 2022, the web application should be updated late spring or early summer of 2021.

We expect to finalize the GASB 87 capitalization threshold no later than August 2020.

This calculator tool will be found in the right-hand Tools box in the AFR Reporting Requirements website. The user will input specific facts pertaining to a lease. The tool will then calculate the net present value (NPV) of the lease. If the NPV exceeds the capitalization threshold, the tool then provides the amounts to initially set-up the asset and associated liability. Additionally, the tool provides the monthly amortization of the asset and the allocation of the lease payment between reduction of the lease liability and interest expense.

A unit is a single asset within the lease. For example, assume a 36-month lease of 50 notebook computers, with a monthly payment of $5,000. A “unit” would be one notebook computer with a monthly payment of $100 ($5,000/50).

Fiscal Year-end Close Process

The system clearing GL 9999 should be eliminated at the university system level only.

Note 16: Subsequent Events

Agencies are not required to submit a post-period subsequent events note if there are no items to disclose. However, they are required to use the provided check box in the post-period subsequent events link to indicate that they don’t have anything to disclose. The post-period subsequent events link can be accessed using the Other Notes and Disclosures (ONDSS) web application. The link is positioned in the center of the ONDSS application landing page and in its related banner. The same link can be used to upload the post-period subsequent events note.

If a user already has access to the ONDSS web application, no additional access is required. Now is the time to check that proper security access exists. This can be done by viewing the USAS Titles Profile (D53) screen.

On the D53 screen:

  1. Enter R in the ACTION field.
  2. Enter DRNS in the TABLE ID field.
  3. Enter your User ID and agency number in the KEY field.
    If you enter your User ID without the agency number, USAS automatically appends it to the end of your User ID.
  4. Press Enter.
    Your name appears in the TITLE field if your security access was properly established.

Once security access is granted, USAS requires one overnight cycle to run before you can access ONDSS.

TEXAS  SD53    UNIFORM STATEWIDE ACCOUNTING SYSTEM                   08:49 AM
LINK TO:                        TITLES PROFILE                           PROD

ACTION: R    (A=ADD, C=CHANGE, D=DELETE, N=NEXT, R=RECALL)                     
                                                                                
               TABLE ID: DRNS                                                   
                                                                                
                    KEY: JSMI413111                                             
                                                                                
                  TITLE: SMITH,JOE                                              
   
                                                         STATUS CODE: A         
  EFF START DATE: 07202000   EFF END DATE:      LAST PROC DATE: 07202000        
 Z06 RECORD SUCCESSFULLY RECALLED                                               
 PLEASE ENTER FUNCTION                                                          
 F1-HELP   F3-END   F4-INTERRUPT   F6-PROCESS

Note: In the sample screen above, the KEY field shows an enabled User ID of ‘JSMI413’ with access to agency ‘111’.

If you do not have access, then contact your agency’s security coordinator to request access for each web application you are reporting.

Statement of Cash Flows

Agencies with enterprise funds (FT05) and internal service funds (FT06) must prepare and submit a copy of their Annual Financial Report’s statement of cash flows.

The statement of cash flows applies to funds categorized as enterprise funds (FT05) or internal service funds (FT06).

The statement of cash flows entry applies to the system of institutions of higher education agencies.

USAS interfaces with the ACFR web application, so there is no need to enter the amounts in both places. If an amount needs to be changed in the ACFR web application, an adjustment is required in USAS before certifying the ACFR web application.

Coronavirus Aid, Relief, and Economic Security (CARES) Act

Specific and final guidance may not be available until later this summer or early fall after the Federal Office of Management and Budget (OMB) releases the second part of the 2020 Compliance Supplement.

The OMB issues a Compliance Supplement each summer that provides additional guidance about Single Audit and federal reporting requirements for certain awards. This year, the Compliance Supplement will be issued in two parts; the first part is scheduled to be issued in late July or early August and will focus on guidance for programs other than the CARES Act. The second part is scheduled to be issued in late summer or early fall and will include a more in-depth focus on the CARES Act.

In the meantime, contact your financial reporting analyst with any questions.

The lost revenue needs to be reported in SEFA and the Comptroller’s office will provide more guidance once it is available. Most likely, this will be reported as deferred revenue and will create a reconciling item. This may change depending on the outcome of federal reporting guidance stated in the second part of the 2020 Compliance Supplement, which is scheduled to be released late summer or early fall.

Yes, unspent funds received from the Coronavirus Relief Fund, CFDA 21.019, must be returned to the US Department of Treasury. From the Treasury lDepartment’s June 24, 2020 Coronavirus Relief Fund Frequently Asked Questions: ”If a government has not used funds it has received to cover costs that were incurred by December 30, 2020, as required by the statute, those funds must be returned to the Department of the Treasury.”

Agencies that received CARES Act funding under CFDAs other than 21.019 need to consult the grant agreements from federal awarding agencies to determine the administrative requirements related to unspent funds. In most cases unspent funds must be returned to the federal government.

A webinar is not scheduled at this time. The Comptroller’s office is waiting for additional guidance from the Office of Management and Budget (OMB). The Comptroller’s office will publish additional guidance about financial reporting requirements once more details are confirmed. In the meantime, contact your financial reporting analyst with any questions.

General

The Financial Reporting section will continue to offer these webinars to cover certain topics, but these broad-topic webinars do not replace the specific training offered in person in prior fiscal years. We are looking into the possibility of offering webinars in the future that will replace those in-person trainings, but those courses are not offered at this time. We are currently developing web-based tutorials for completing the SEFA, SPTR, General Revenue and AFR Core topics. These tutorials should be available by Nov 1. In the meantime, agencies may review the guidance listed in the AFR Reporting Requirements website and contact their financial reporting analysts with any questions.

The Comptroller’s office is working on offering continuing professional education credit for future webinars.

The Financial Reporting section records entries for GR Consolidated Agencies (formerly known as Simplified Reporting Agencies). For more information, see the GR Consolidated Agencies Submission Requirements in the AFR Reporting Requirements website and more details will be provided in the upcoming July’s webinar.

The AFR Reporting Requirements website is now updated on a continual basis, instead of an annual release for each reporting period. The 2020 Updates Table located on the AFR Reporting Requirements Home page displays all content changes to the website made since April 1, 2020.

Updates to the AFR exhibit templates have been made. See Templates and Sample Exhibits. Please keep in mind updates are made as needed on a continual basis. Sample exhibits are in the process of being updated to correspond with AFR exhibit templates.

All web applications will be available by September 1. For more information on web applications open for current fiscal year entry see Annual Financial Report Web Applications in the AFR Reporting Requirements website.

The AFR Reporting Requirements website is now updated on a continual basis, instead of an annual release for each reporting period. The 2020 Updates Table located on the AFR Reporting Requirements Home page displays all content changes to the AFR Reporting Requirements website made after April 1, 2020. For more information on web applications, see the Annual Financial Report Web Applications page in the AFR Reporting Requirements website.

Notifications about Fiscal Management’s Accounting Policy Meetings are included in the weekly e-newsletter, FMXtra. You can sign up to receive our weekly e-newsletter by completing the FMXtra Subscription Form. Additionally, if you would like to receive other e-newsletters that detail when important reports are published (such as Post-payment audit reports, Project ONE, Spotlight, Texas Annual Cash Report and Comprehensive Annual Financial Report) subscribe to those here on the Fiscal Management Email Subscriptions page.

Once register to the meeting, there are two reminders sent by Cisco WebEx. The first reminder is sent three days prior to the day of the meeting and the second reminder is sent two hours prior to the start of the meeting. Additionally, we are working on adding more reminders in the weekly FMXtra e-newsletter.

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