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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

Capital Asset Accounting
Recording Completed Construction Projects

When a construction project is complete, the assets associated with the project are placed into service and depreciation begins. To remove the project from CIP and into the proper asset categories, use the following entries:

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

Seq No Batch Type Doc Type Eff Date Fin Agy TC AY PCA COBJ Amount R Fund Input GL
To Increase the Asset Being Placed into Service
(1) 5 U 0832CY XXX 644 CY 99999 N/A $ XX.XX   XXXX XXXX
To Reduce Construction in Progress
(2) 5 U 0832CY XXX 645 CY 99999 N/A $ XX.XX   XXXX 0380

Accounting effect of above entries:

Debit Credit
(1) To Increase the Asset Being Placed Into Service    
  XXXX General Ledger Account for Asset $ XX.XX  
  9999 System Clearing   $ XX.XX
(2) To Reduce Construction in Progress    
  9999 System Clearing $ XX.XX  
  0380 Construction in Progress   $ 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 the Asset Being Placed into Service
(1) 5 U 0832CY XXX 534 CY 99999 N/A $ XX.XX   XXXX XXXX
To Reduce Construction in Progress
(2) 5 U 0832CY XXX 535 CY 99999 N/A $ XX.XX   XXXX 0680

Accounting effect of above entries:

Debit Credit
(1) To Increase the Asset Being Placed Into Service    
  XXXX General Ledger account for asset $ XX.XX  
  9992 BC System Clearing   $ XX.XX
(2) To Reduce Construction in Progress    
  9992 BC System Clearing $ XX.XX  
  0680 BC Construction in Progress   $ XX.XX

The reclassification of completed CIP must net to zero, having no effect on the operating statement.