Reporting Requirements for Annual Financial Reports of State Agencies and Universities
Capital Assets
Capital Asset Accounting
Reclassifying Expenditures to Capital Assets
If any expenditure related to capital projects needs to be capitalized at fiscal year-end (for example, salaries and wages associated with construction projects or internally developed software costs), process adjusting journal entries to reclassify expenditures to capital assets in the general ledger using the following T-codes.
Business-Type Activities (Fund Type 05) and
Component Units (Fund Type 15)
The GL account number used corresponds with the asset.
| Seq No | Batch Type | Doc Type | Eff Date | Fin Agy | TC | AY | PCA | COBJ | Amount | R | Fund | Input GL |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| To Reduce the Other Expenditure Amounts Recorded | ||||||||||||
| (1) | 5 | U | 0832CY | XXX | 633 | CY | 99999 | XXXX | $ XX.XX | XXXX | 9999 | |
| To Record Amounts in Capital Assets | ||||||||||||
| (2) | 5 | U | 0832CY | XXX | 644 | CY | 99999 | N/A | $ XX.XX | XXXX | XXXX | |
Accounting effect of above entries:
| Debit | Credit | ||
|---|---|---|---|
| (1) | To Reduce the Other Expenditure Amounts Recorded | ||
| 9999 System Clearing | $ XX.XX | ||
| 5600 GAAP Expenditure Offset | $ XX.XX | ||
| (2) | To Record Amounts in Capital Assets | ||
| XXXX General Ledger Account for Asset | $ XX.XX | ||
| 9999 System Clearing | $ XX.XX |
Governmental Activities – Basis Conversion (Fund Type 11)
| Seq No | Batch Type | Doc Type | Eff Date | Fin Agy | TC | AY | PCA | COBJ | Amount | R | Fund | Input GL |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| To Increase Capital Outlay Expenditure in Governmental Funds | ||||||||||||
| (1) | 5 | U | 0832CY | XXX | 632 | CY | 99999 | XXXX* | $ XX.XX | XXXX | 9999 | |
| To Reduce the Other Expenditure Accounts Used in Governmental Funds | ||||||||||||
| (2) | 5 | U | 0832CY | XXX | 633 | CY | 99999 | XXXX | $ XX.XX | XXXX | 9999 | |
| To Record the Capital Asset Amount in BC (FT11) | ||||||||||||
| (3) | 5 | U | 0832CY | XXX | 513 | CY | 99999 | XXXX* | $ XX.XX | XXXX | XXXX | |
| –OR– | ||||||||||||
| (3) | 5 | U | 0832CY | XXX | 534 | CY | 99999 | N/A | $ XX.XX | XXXX | XXXX | |
| To Remove Amounts in Capital Outlays in BC (FT11) | ||||||||||||
| (4) | 5 | U | 0832CY | XXX | 512 | CY | 99999 | XXXX* | $ XX.XX | R | XXXX | 9992 |
Accounting effect of above entries:
| Debit | Credit | ||
|---|---|---|---|
| (1) | To Increase Capital Outlay Expenditure in Governmental Funds | ||
| 5600 GAAP Expenditure Offset | $ XX.XX | ||
| 9999 System Clearing | $ XX.XX | ||
| (2) | To Reduce the Other Expenditure Accounts Used in Governmental Funds | ||
| 9999 System Clearing | $ XX.XX | ||
| 5600 GAAP Expenditure Offset | $ XX.XX | ||
| (3) | To Record the Capital Asset Amount in BC (FT11) | ||
| XXXX General Ledger account for asset | $ XX.XX | ||
| 5650 BC Expenditure Control | $ XX.XX | ||
| –OR– | |||
| (3) | To Record the Capital Asset Amount in BC (FT11) | ||
| XXXX General Ledger account for asset | $ XX.XX | ||
| 9992 BC System Clearing | $ XX.XX | ||
| (4) | To Remove Amounts in Capital Outlays in BC (FT11) | ||
| 9992 BC System Clearing | $ XX.XX | ||
| 5650 BC Expenditure Control | $ XX.XX | ||
| *Use the capital outlay COBJ. | |||
Verify that capital outlay activity in governmental funds and basis conversion funds net to zero at the GAAP source/object level using the FMQuery–SIRS AFR Desk Review and running the DR206 — Review Govt-Wide Basis Conversion report located in the Operating Statement drop-down menu.