Reporting Requirements for Annual Financial Reports of State Agencies and Universities
General Accounting
Modified to Full Accrual Adjustments
Basis Conversion Adjustments
Governmental funds report fund financial statements (FFS) on a modified accrual basis of accounting and government-wide financial statements (GWFS) on a full accrual basis of accounting. Three fund types in USAS are used to compile basis conversion information:
- FT11 — capital asset adjustments
- FT12 — long-term liabilities
- FT21 — other adjustments
These fund types are presented in Exhibit I (Excel) and Exhibit II (Excel) of the AFR. There is a separate column for each fund type listed above. Basis conversion entries are required to convert the modified accrual basis to the full accrual basis. The entries and the accounting effect of these entries are presented below.
Capital Asset Adjustments (Fund Type 11)
In governmental funds, report capital assets at their historical cost and depreciated rather than reporting capital acquisitions as expenditures when incurred, as is done in proprietary funds. Capital assets and the adjustments associated with converting them from modified to full accrual basis are presented below. For more information, see Capital Assets and Working Papers.
Capital Asset Adjustments
| Seq No | Batch Type | Doc Type | Eff Date | TC | AY | PCA | COBJ | Amount | R | Fund | Input GL |
|---|---|---|---|---|---|---|---|---|---|---|---|
| To record a debit to a balance sheet account | |||||||||||
| (1) | 5 | U | XX/XX/CY | 534 | CY | 99999 | NA | XXX.XX | NA | 9998 | XXXX* |
| To record a credit to a balance sheet account | |||||||||||
| (2) | 5 | U | XX/XX/CY | 535 | CY | 99999 | NA | XXX.XX | NA | 9998 | XXXX* |
| To record a debit to a balance sheet account that reverses in the following year | |||||||||||
| (3) | 5 | U | XX/XX/CY | 536 | CY | 99999 | NA | XXX.XX | NA | 9998 | XXXX* |
| To record a credit to a balance sheet account that reverses in the following year | |||||||||||
| (4) | 5 | U | XX/XX/CY | 537 | CY | 99999 | NA | XXX.XX | NA | 9998 | XXXX* |
| To record a decrease in revenue activity | |||||||||||
| (5) | 5 | U | XX/XX/CY | 510 | CY | 99999 | XXXX | XXX.XX | NA | 9998 | XXXX* |
| To record an increase in revenue activity | |||||||||||
| (6) | 5 | U | XX/XX/CY | 511 | CY | 99999 | XXXX | XXX.XX | NA | 9998 | XXXX* |
| To record an increase in expenditure activity | |||||||||||
| (7) | 5 | U | XX/XX/CY | 512 | CY | 99999 | XXXX | XXX.XX | NA | 9998 | XXXX* |
| To record a decrease in expenditure activity | |||||||||||
| (8) | 5 | U | XX/XX/CY | 513 | CY | 99999 | XXXX | XXX.XX | NA | 9998 | XXXX* |
| To record Other Financing Source/Use activity | |||||||||||
| (9) | 5 | U | XX/XX/CY | 516 | CY | 99999 | XXXX | XXX.XX | 9998 | XXXX* | |
| To record Restatement activity (this should not be used frequently) | |||||||||||
| (10) | 5 | U | XX/XX/CY | 518 | CY | 99999 | 3891 | XXX.XX | 9998 | XXXX* | |
| * Agencies must use the Basis Conversion Capital Asset General Ledger Accounts. | |||||||||||
Accounting effect of above entries:
| Debit | Credit | ||
|---|---|---|---|
| (1) | To record a debit to a balance sheet account | ||
| XXXX BC Input GL | $ XX.XX | ||
| 9992 BC System Clearing | $ XX.XX | ||
| (2) | To record a credit to a balance sheet account | ||
| 9992 BC System Clearing | $ XX.XX | ||
| XXXX BC Input GL | $ XX.XX | ||
| (3) | To record a debit to a balance sheet account that reverses in the following year | ||
| XXXX BC Input GL | $ XX.XX | ||
| 9992 BC System Clearing | $ XX.XX | ||
| (4) | To record a credit to a balance sheet account that reverses in the following year | ||
| 9992 BC System Clearing | $ XX.XX | ||
| XXXX BC Input GL | $ XX.XX | ||
| (5) | To record a decrease in revenue activity | ||
| 5150 BC Revenue Control | $ XX.XX | ||
| XXXX BC Input GL | $ XX.XX | ||
| (6) | To record an increase in revenue activity | ||
| XXXX BC Input GL | $ XX.XX | ||
| 5150 BC Revenue Control | $ XX.XX | ||
| (7) | To record an increase in expenditure activity | ||
| 5650 BC Expenditure Control | $ XX.XX | ||
| XXXX BC Input GL | $ XX.XX | ||
| (8) | To record a decrease in expenditure activity | ||
| XXXX BC Input GL | $ XX.XX | ||
| 5650 BC Expenditure Control | $ XX.XX | ||
| (9) | To record Other Financing Source/Use activity | ||
| 6135 BC Other Financing Sources | $ XX.XX | ||
| XXXX BC Input GL | $ XX.XX | ||
| (10) | To record Restatement activity (this should not be used frequently) | ||
| XXXX BC Input GL | $ XX.XX | ||
| 6175 BC Restatements | $ XX.XX | ||
| Note: BC System Clearing GL 9992 cannot have a balance at the D23 agency fund level after the above entries. | |||
Long-Term Liabilities Adjustments (Fund Type 12)
In governmental funds, make entries in USAS to record general long-term liabilities not due and payable in the current period. Long-term liabilities and the adjustments associated with converting them from modified to full accrual basis are presented below. Instructions for completing the long-term liabilities basis conversion entries can be found in Working Papers. For more information, see Note 5 – Long-Term Liabilities and Working Papers.
Long-Term Liabilities Adjustments
| Seq No | Batch Type | Doc Type | Eff Date | TC | AY | PCA | COBJ | Amount | R | Fund | Input GL |
|---|---|---|---|---|---|---|---|---|---|---|---|
| To record a debit to a balance sheet account | |||||||||||
| (1) | 5 | U | XX/XX/CY | 534 | CY | 99999 | NA | XXX.XX | NA | 9997 | XXXX* |
| To record a credit to a balance sheet account | |||||||||||
| (2) | 5 | U | XX/XX/CY | 535 | CY | 99999 | NA | XXX.XX | NA | 9997 | XXXX* |
| To record a debit to a balance sheet account that reverses in the following year | |||||||||||
| (3) | 5 | U | XX/XX/CY | 536 | CY | 99999 | NA | XXX.XX | NA | 9997 | XXXX* |
| To record a credit to a balance sheet account that reverses in the following year | |||||||||||
| (4) | 5 | U | XX/XX/CY | 537 | CY | 99999 | NA | XXX.XX | NA | 9997 | XXXX* |
| To record an increase in expenditure activity | |||||||||||
| (5) | 5 | U | XX/XX/CY | 502 | CY | 99999 | XXXX | XXX.XX | NA | 9997 | XXXX* |
| To record a decrease in expenditure activity | |||||||||||
| (6) | 5 | U | XX/XX/CY | 503 | CY | 99999 | XXXX | XXX.XX | NA | 9997 | XXXX* |
| To record an increase in expenditure activity that reverses in the following year | |||||||||||
| (7) | 5 | U | XX/XX/CY | 504 | CY | 99999 | XXXX | XXX.XX | NA | 9997 | XXXX* |
| To record a decrease in expenditure activity that reverses in the following year | |||||||||||
| (8) | 5 | U | XX/XX/CY | 505 | CY | 99999 | XXXX | XXX.XX | NA | 9997 | XXXX* |
| To record Other Financing Source/Use activity | |||||||||||
| (9) | 5 | U | XX/XX/CY | 516 | CY | 99999 | XXXX | XXX.XX | 9997 | XXXX* | |
| To record Restatement activity (this should not be used frequently) | |||||||||||
| (10) | 5 | U | XX/XX/CY | 518 | CY | 99999 | 3891 | XXX.XX | 9997 | XXXX* | |
| * Agencies must use the Basis Conversion Long-Term Liability General Ledger Accounts. | |||||||||||
Accounting effect of above entries:
| Debit | Credit | ||
|---|---|---|---|
| (1) | To record a debit to a balance sheet account | ||
| XXXX BC Input GL | $ XX.XX | ||
| 9992 BC System Clearing | $ XX.XX | ||
| (2) | To record a credit to a balance sheet account | ||
| 9992 BC System Clearing | $ XX.XX | ||
| XXXX BC Input GL | $ XX.XX | ||
| (3) | To record a debit to a balance sheet account that reverses in the following year | ||
| XXXX BC Input GL | $ XX.XX | ||
| 9992 BC System Clearing | $ XX.XX | ||
| (4) | To record a credit to a balance sheet account that reverses in the following year | ||
| 9992 BC System Clearing | $ XX.XX | ||
| XXXX BC Input GL | $ XX.XX | ||
| (5) | To record an increase in expenditure activity | ||
| 5650 BC Expenditure Control | $ XX.XX | ||
| XXXX BC Input GL | $ XX.XX | ||
| (6) | To record a decrease in expenditure activity | ||
| XXXX BC Input GL | $ XX.XX | ||
| 5650 BC Expenditure Control | $ XX.XX | ||
| (7) | To record an increase in expenditure activity that reverses in the following year | ||
| 5650 BC Expenditure Control | $ XX.XX | ||
| XXXX BC Input GL | $ XX.XX | ||
| (8) | To record a decrease in expenditure activity that reverses in the following year | ||
| XXXX BC Input GL | $ XX.XX | ||
| 5650 BC Expenditure Control | $ XX.XX | ||
| (9) | To record Other Financing Source/Use activity | ||
| 6135 BC Other Financing Sources | $ XX.XX | ||
| XXXX BC Input GL | $ XX.XX | ||
| (10) | To record Restatement activity (this should not be used frequently) | ||
| XXXX BC Input GL | $ XX.XX | ||
| 6175 BC Restatements | $ XX.XX | ||
| Note: BC System Clearing GL 9992 cannot have a balance at the D23 agency fund level after the above entries. | |||
Other Adjustments (Fund Type 21)
Use the Other Adjustments column to reconcile total governmental fund balances to net position of governmental activities in the statement of net position (modified to full accrual basis). Other Adjustments includes but is not limited to adjustments such as unearned revenue and prepaid items.
For balance sheet basis conversion to statement of net position:
- Present increases as a positive amount, normally impacting unrestricted net position.
- Present decreases as a negative amount, normally impacting unearned revenue.
For statement of revenues, expenditures and changes in fund balance basis conversion to statement of activities:
- Present increases as a positive amount, normally impacting revenue.
- Present decreases as a negative amount, possibly impacting revenue.