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Reporting Requirements for Annual Financial Reports of State Agencies and Universities

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Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Capital Assets

Leased Property
Recording Capital Asset Leased Property

The following entries for business-type activities record a leased capital asset and the lease obligation. All entries must be completed for leases and the associated capital assets to be recorded correctly.

Business-Type Activities (FT05) and Component Units (FT15)

Seq No Batch Type Doc Type Eff Date Fin Agy TC AY PCA COBJ Amount R Fund Input GL
To Record Non-Current Capital Lease Additions
(1) 5 U 0832CY XXX 645 CY 99999 N/A $ XX.XX   XXXX 1215
To Record Non-Current Capital Lease Reductions
(2) 5 U 0832CY XXX 644 CY 99999 N/A $ XX.XX   XXXX 1215
To Record the Portion of Current Capital Lease Obligation (due within 1 year)
(3) 5 U 0832CY XXX 647 CY 99999 N/A $ XX.XX   XXXX 1125
To Reduce Non-current Capital Lease Obligation by amount of Current Capital Lease Obligation (due within 1 year)
(4) 5 U 0832CY XXX 647 CY 99999 N/A $ XX.XX R XXXX 1215
To Record Unrestricted Net Position
(5) 5 U 0832CY XXX 646 CY 99999 N/A $ XX.XX   XXXX 2950

Accounting effect of above entries:

Debit Credit
* Note: Using T-code 647 generates an automatic reversal in the following fiscal year using T-code 644.
** Note: Using T-code 646 generates an automatic reversal in the following fiscal year using T-code 645.
(1) To Record Non-Current Capital Lease Additions    
  9999 System Clearing $ XX.XX  
  1215 NC Capital Lease Obligations   $ XX.XX
(2) To Record Non-Current Capital Lease Reductions    
  1215 NC Capital Lease Obligations $ XX.XX  
  9999 System Clearing   $ XX.XX
(3) To Record Current Capital Lease Obligation (due within 1 year)    
  9999 System Clearing $ XX.XX  
  1125 CL Capital Lease Obligations*   $ XX.XX
(4) To Reduce Non-current Capital Lease Obligation by amount of Current Capital Lease Obligation (due within 1 year)    
  1215 NC Capital Lease Obligations* $ XX.XX  
  9999 System Clearing   $ XX.XX
(5) To Record Unrestricted Net Position    
  2950 Unrestricted Net Position** $ XX.XX  
  9999 System Clearing   $ XX.XX

Governmental Activities — Basis Conversion (FT11 and FT12)

Use the following COBJs to record leased capital asset entries:

The following entries for governmental activities record a leased capital asset and the lease obligation. All entries must be completed for leases and the associated capital assets to be recorded correctly.

Seq No Batch Type Doc Type Eff Date Fin Agy TC AY PCA COBJ Amount R Fund Input GL
To Record BC NC Capital Lease Additions (non-current) (FT12)
(1) 5 U 0832CY XXX 516 CY 99999 3893 $ XX.XX   XXXX 1715
To Record the Capital Asset and Eliminate Capital Outlay (FT11)
(2) 5 U 0832CY XXX 513 CY 99999 7XXX $ XX.XX   XXXX XXXX
To record the BC NC Capital Lease Reductions (non-current) (FT12)
(3) 5 U 0832CY XXX 503 CY 99999 7XXX $ XX.XX   XXXX 1715
To Record BC CL Capital Lease Obligations (due within 1 year) (FT12)
(4) 5 U 0832CY XXX 537 CY 99999 N/A $ XX.XX   XXXX 1625
To Reduce BC NC Capital Lease by amount of BC CL (due within 1 year) (FT12)
(5) 5 U 0832CY XXX 537 CY 99999 N/A $ XX.XX R XXXX 1715

Accounting effect of above entries:

Debit Credit
* Note: Using T-code 537 generates an automatic reversal in the following fiscal year using T-code 534.
(1) To Record BC NC Capital Lease Additions (non-current) (FT12)    
  6135 BC- Other Financing Sources $ XX.XX  
  1715 BC NC Capital Lease Obligations   $ XX.XX
(2) To Record the Capital Asset and Eliminate Capital Outlay (FT11)    
  XXXX General Ledger Account for Leased Capital Asset $ XX.XX  
  5650 BC Expenditure Control   $ XX.XX
(3) To record the BC NC Capital Lease Reductions (non-current) (FT12)    
  1715 BC NC Capital Lease Obligations $ XX.XX  
  5650 BC Expenditure Control   $ XX.XX
(4) To Record BC CL Capital Lease Obligations (due within 1 year) (FT12)    
  9992 BC System Clearing $ XX.XX  
  1625 BC CL Capital Lease Obligations*   $ XX.XX
(5) To Reduce BC NC Capital Lease by amount of BC CL (due within 1 year) (FT12)    
  1715 BC NC Capital Lease Obligations* $ XX.XX  
  9992 BC System Clearing   $ XX.XX

Verify that capital outlay 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. If DR 206 does not net to zero, check if the following fund financial statement (governmental fund) entries were entered in the initial year of the lease.

Seq No Batch Type Doc Type Eff Date Fin Agy TC AY PCA COBJ Amount R Fund Input GL
To Record Capital Outlay in Expenditures (FT01, FT02, FT03 or FT04)
(1) 5 U 0832CY XXX 632 CY 99999 7XXX $ XX.XX   XXXX 9999
To Record Increase in Obligations under Capital Leases in Other Financing Sources (FT01, FT02, FT03 or FT04)
(2) 5 U 0832CY XXX 657 CY 99999 3893 $ XX.XX   XXXX 9999

Accounting effect of above entries:

Debit Credit
(1) To Record Capital Outlay in Expenditures (FT01, FT02, FT03 or FT04)    
  5600 GAAP Expenditure Offset $ XX.XX  
  9999 System Clearing   $ XX.XX
(2) To Record Increase in Obligations under Capital Leases in Other Financing Sources (FT01, FT02, FT03 or FT04)    
  9999 System Clearing $ XX.XX  
  6035 Other Financing Sources   $ XX.XX