Skip to content
Breadcrumbs

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Note: To navigate this guide on a mobile device you must use the Table of Contents.

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Capital Assets

Sale, Disposal or Interagency transfer of Capital Assets
Recording Transfers In of Capital Assets

When transferring capital assets between state agencies, a net increase or decrease is realized — rather than recognizing a gain or loss.

In the entries below, it is important to note there are two “Seq. No. (4).” When figuring the effect of the transfer, the transfer in agency must determine if there is a net increase in the transfer of the asset or a net decrease in the transfer of the asset. This net increase/decrease determines which T-code and COBJ to use for “Seq. No. (4).”

Example of Increase Net Assets Due to Interagency Transfer of Capital Assets Example of Decrease Net Assets Due to Interagency Transfer of Capital Assets
           
Historical Cost 10,000   Historical Cost 10,000  
Less Accumulated Depreciation (7,000)   Less Accumulated Depreciation (7,000)  
Net Book Value   3,000   Net Book Value   3,000  
Less Cash Paid for Transfer In (2,000)   Less Cash Paid for Transfer In (5,000)  
Increase on Transfer In   1,000   Decrease on Transfer In (2,000)  
Treatment of Increase on Transfer of Asset Treatment of Decrease on Transfer of Asset
           
Capital Asset 10,000   Capital Asset 10,000  
Increase Interagency Transfer In     1,000 Decrease Interagency Transfer In   2,000  
Cash Paid from Transfer In**     2,000 Cash Paid from Transfer In**   5,000
Accumulated Depreciation     7,000 Accumulated Depreciation       7,000

Business-Type Activities (Fund Type 05) and
Component Units (Fund Type 15)

  • Use T-code 631 with COBJ 3843 if there is a net increase in interagency transfers.
  • Use T-code 632 with COBJ 7858 if there is a net decrease in interagency transfers.
  • The GL account number used corresponds to the asset (and related depreciation) that is transferred.
Seq No Batch Type Doc Type Eff Date Fin Agy TC AY PCA COBJ Amount R Fund Input GL
To Reverse Transfer Purchase of Capital Assets
(1) 5 U 0832CY XXX 633 CY 99999 7974 $ XX.XX   XXXX 9999
To Record the Accumulated Depreciation Associated with Asset Transferred In
(2) 5 U 0832CY XXX 645 CY 99999 N/A $ XX.XX   XXXX XXXX
To Record the Historical Cost of the Asset Transferred In
(3) 5 U 0832CY XXX 644 CY 99999 N/A $ XX.XX   XXXX XXXX
To Record a Net Increase on the Transfer of Assets
(4) 5 U 0832CY XXX 631 CY 99999 3843 $ XX.XX   XXXX 9999
–OR–
To Record a Net Decrease on the Transfer of Assets
(4) 5 U 0832CY XXX 632 CY 99999 7858 $ XX.XX   XXXX 9999

Accounting effect of above entries:

Debit Credit
(1) To Reverse Transfer Purchase of Capital Assets    
  9999 System Clearing $ XX.XX  
  5600* GAAP Expenditure Offset   $ XX.XX
(2) To Record the Accumulated Depreciation Associated with Asset Transferred In    
  9999 System Clearing $ XX.XX  
  XXXX General Ledger Account for Asset Depreciation   $ XX.XX
(3) To Record the Historical Cost of the Asset Transferred In    
  XXXX General Ledger Account for Asset $ XX.XX  
  9999 System Clearing   $ XX.XX
(4) To Record a Net Increase on the Transfer of Assets    
  9999 System Clearing $ XX.XX  
  5100 GAAP Revenue Offset   $ XX.XX
–OR–
(4) To Record a Net Decrease on the Transfer of Assets    
  5600 GAAP Expenditure Offset $ XX.XX  
  9999 System Clearing   $ XX.XX
*This entry assumes that the original transfer in was recorded to COBJ 7974.

Governmental Activities – Basis Conversion (Fund Type 11)

  • Use T-code 516R with COBJ 3843 if there is a net increase in interagency transfers.
  • Use T-code 517R with COBJ 7858 if there is a net decrease in interagency transfers.
  • The GL account number used corresponds to the asset (and related depreciation) that is transferred.
Seq No Batch Type Doc Type Eff Date Fin Agy TC AY PCA COBJ Amount R Fund Input GL
To Reverse Transfer Purchase of Capital Assets
(1) 5 U 0832CY XXX 517 CY 99999 7974** $ XX.XX   XXXX 9992
To Record the Depreciation Associated with Asset Transferred In
(2) 5 U 0832CY XXX 535 CY 99999 N/A $ XX.XX   XXXX XXXX
To Record the Historical Cost of the Asset Transferred In
(3) 5 U 0832CY XXX 534 CY 99999 N/A $ XX.XX   XXXX XXXX
To Record a Net Increase on the Transfer of Assets
(4) 5 U 0832CY XXX 516 CY 99999 3843 $ XX.XX R XXXX 9992
–OR–
To Record a Net Decrease on the Transfer of Assets
(4) 5 U 0832CY XXX 517 CY 99999 7858 $ XX.XX R XXXX 9992

Accounting effect of above entries:

Debit Credit
(1) To Reverse Purchase of Capital Assets**    
  9992 BC System Clearing $ XX.XX  
  6160* BC Other Financing Uses   $ XX.XX
(2) To Record the Depreciation Associated with Asset Transferred In    
  9992 BC System Clearing $ XX.XX  
  XXXX General Ledger Account for Asset Depreciation   $ XX.XX
(3) To Record the Historical Cost of the Asset Transferred In    
  XXXX General Ledger Account for Asset $ XX.XX  
  9992 BC System Clearing   $ XX.XX
(4) To Record a Net Increase on the Transfer of Assets    
  9992 BC System Clearing $ XX.XX  
  6135 BC Other Financing Sources   $ XX.XX
–OR–
(4) To Record a Net Decrease on the Transfer of Assets    
  6160 BC Other Financing Uses $ XX.XX  
  9992 BC System Clearing   $ XX.XX
*This entry assumes that the original transfer in was recorded to COBJ 7974
**Verify that the Transfer Purchase of Capital Assets activity in governmental funds and basis conversion funds net to zero at the GAAP source/object level using the DR206 — Review Govt-Wide Basis Conversion report located in the FMQuery–SIRS AFR Desk Review menu.