Reporting Requirements for Annual Financial Reports of State Agencies and Universities
Universities
Leases — Recognitions and Measurements
For Lessors
The following entries record a lease receivable and a deferred inflow of resources for leases other than short-term leases and contracts that transfer ownership. The recorded amounts are based on the Lessor Amortization Example table shown at the end of this section.
| Seq No | Batch Type | Doc Type | Eff Date | Fin Agy | TC | AY | PCA | COBJ | Amount | R | Fund | Input GL |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| To Record Non-Current Lease Receivable | ||||||||||||
| (1) | 5 | U | 0832CY | XXX | 644 | CY | 99999 | N/A | $ 111,304.72 | XXXX | 0479 | |
| To Record Deferred Inflow of Resources | ||||||||||||
| (2) | 5 | U | 0832CY | XXX | 645 | CY | 99999 | N/A | $ 111,304.72 | XXXX | 1146 | |
| To Reclass the Lease Payments | ||||||||||||
| (3) | 5 | U | 0832CY | XXX | 630 | CY | 99999 | 3XXX | $ 21,238.55 | XXXX | 9999 | |
| To Record the Lease Receivable Reduction | ||||||||||||
| (4) | 5 | U | 0832CY | XXX | 645 | CY | 99999 | N/A | $ 21,238.55 | XXXX | 0479 | |
| To Reclass the Lease Payments | ||||||||||||
| (5) | 5 | U | 0832CY | XXX | 630 | CY | 99999 | 3XXX | $ 2,983.52 | XXXX | 9999 | |
| To Record the Interest Revenue | ||||||||||||
| (6) | 5 | U | 0832CY | XXX | 631 | CY | 99999 | 3476 | $ 2,983.52 | XXXX | 9999 | |
| To Adjust for Accrued Interest Receivable | ||||||||||||
| (7) | 5 | U | 0832CY | XXX | 631 | CY | 99999 | 3XXX | $ 222.07 | XXXX | 0201 | |
| To Record the Current Portion of Lease Receivable (due within 1 year) | ||||||||||||
| (8) | 5 | U | 0832CY | XXX | 646 | CY | 99999 | N/A | $ 21,600.67 | XXXX | 0256 | |
| To Reduce Non-Current Lease Receivable by Amount of Current Lease Receivable (due within 1 year) | ||||||||||||
| (9) | 5 | U | 0832CY | XXX | 647 | CY | 99999 | N/A | $ 21,600.67 | XXXX | 0479 | |
| To Record the Lease Revenue | ||||||||||||
| (10) | 5 | U | 0832CY | XXX | 631 | CY | 99999 | 3XXX | $ 22,260.96 | XXXX | 1146 | |
Accounting effect of above entries:
| Debit | Credit | ||
|---|---|---|---|
| (1) | To Record Non-Current Lease Receivable | ||
| 0479 NC Lease Receivable | $ 111,304.72 | ||
| 9999 System Clearing | $ 111,304.72 | ||
| (2) | To Record Deferred Inflow of Resources | ||
| 9999 System Clearing | $ 111,304.72 | ||
| 1146 Deferred Inflow of Resources - Leases | $ 111,304.72 | ||
| (3) | To Reclass the Lease Payments | ||
| 5100 GAAP Revenue Offset* | $ 21,238.55 | ||
| 9999 System Clearing | $ 21,238.55 | ||
| (4) | To Record the Lease Receivable Reduction | ||
| 9999 System Clearing | $ 21,238.55 | ||
| 0479 NC Lease Receivable | $ 21,238.55 | ||
| (5) | To Reclass the Lease Payments | ||
| 5100 GAAP Revenue Offset* | $ 2,983.52 | ||
| 9999 System Clearing | $ 2,983.52 | ||
| (6) | To Record the Interest Revenue | ||
| 9999 System Clearing | $ 2,983.52 | ||
| 5100 GAAP Revenue Offset | $ 2,983.52 | ||
| (7) | To Adjust for Accrued Interest Receivable | ||
| 0201 Other Interest Receivable | $ 222.07 | ||
| 5100 GAAP Revenue Offset | $ 222.07 | ||
| (8) | To Record the Current Portion of Lease Receivable (due within 1 year) | ||
| 0256 CA Lease Receivable | $ 21,600.67 | ||
| 9999 System Clearing | $ 21,600.67 | ||
| (9) | To Reduce Non-Current Lease Receivable by Amount of Current Lease Receivable (due within 1 year) | ||
| 9999 System Clearing | $ 21,600.67 | ||
| 0479 NC Lease Receivable | $ 21,600.67 | ||
| (10) | To Record the Lease Revenue | ||
| 1146 Deferred Inflow of Resources - Leases | $ 22,260.96 | ||
| 5100 GAAP Revenue Offset* | $ 22,260.96 |
*The following list shows some of the COBJs that can be used to reclass the lease payments and to record the lease revenue in suffix number 3, 5, 7 and 10:
- 3315 Oil and Gas Lease Bonus
- 3316 Oil and Gas Lease Rental
- 3330 Hard Mineral – Prospect & Lease
- 3331 Wind/Other Lease Income from School Land
- 3341 Grazing Lease Rental
- 3342 Land Lease
- 3445 Oyster Bed Location Rental
- 3746 Rental of Land/Miscellaneous Land Income
- 3747 Rental – Other
Lessor Amortization Example
- Payment: $ 2,000.00
- Months: 60
- Rate: 3%
- NPV: $111,304.72
| Month/Year | Cash | Interest | Lease Receivable Reduction |
Accrued Interest |
Accrued Interest Accumulation |
Lease Receivable |
Current Receivable |
Non-current Receivable |
Deferred Inflow of Resources – Amortization |
Deferred Inflow of Resources |
|---|---|---|---|---|---|---|---|---|---|---|
| Start Value | $ 0.00 | $ 0.00 | $ 0.00 | $ 0.00 | $ 0.00 | $ 111304.72 | $ 0.00 | $ 0.00 | $ 0.00 | $ 111304.72 |
| September 2021 | $ 2000.00 | $ 260.53 | $ 2000.00 | $ 260.53 | $ 260.53 | $ 109304.72 | $ 21016.47 | $ 88288.24 | $ 1855.08 | $ 109449.64 |
| October 2021 | $ 2000.00 | $ 274.23 | $ 1730.48 | $ 4.71 | $ 265.24 | $ 107574.23 | $ 21068.30 | $ 86505.94 | $ 1855.08 | $ 107594.56 |
| November 2021 | $ 2000.00 | $ 261.14 | $ 1725.91 | $ (12.95) | $ 252.29 | $ 105848.33 | $ 21121.98 | $ 84726.35 | $ 1855.08 | $ 105739.48 |
| December 2021 | $ 2000.00 | $ 265.41 | $ 1739.00 | $ 4.41 | $ 256.70 | $ 104109.32 | $ 21174.06 | $ 82935.27 | $ 1855.08 | $ 103884.40 |
| January 2022 | $ 2000.00 | $ 260.99 | $ 1734.74 | $ (4.27) | $ 252.43 | $ 102374.59 | $ 21228.01 | $ 81146.58 | $ 1855.08 | $ 102029.32 |
| February 2022 | $ 2000.00 | $ 231.74 | $ 1739.16 | $ (29.10) | $ 223.32 | $ 100635.43 | $ 21282.10 | $ 79353.34 | $ 1855.08 | $ 100174.24 |
| March 2022 | $ 2000.00 | $ 252.05 | $ 1768.40 | $ 20.45 | $ 243.77 | $ 98867.03 | $ 21331.07 | $ 77535.96 | $ 1855.08 | $ 98319.16 |
| April 2022 | $ 2000.00 | $ 239.62 | $ 1748.09 | $ (12.29) | $ 231.49 | $ 97118.94 | $ 21385.42 | $ 75733.52 | $ 1855.08 | $ 96464.08 |
| May 2022 | $ 2000.00 | $ 243.11 | $ 1760.53 | $ 3.64 | $ 235.12 | $ 95358.41 | $ 21438.16 | $ 73920.26 | $ 1855.08 | $ 94609.00 |
| June 2022 | $ 2000.00 | $ 230.94 | $ 1757.03 | $ (12.03) | $ 223.10 | $ 93601.38 | $ 21492.78 | $ 72108.60 | $ 1855.08 | $ 92753.92 |
| July 2022 | $ 2000.00 | $ 234.13 | $ 1769.20 | $ 3.33 | $ 226.43 | $ 91832.18 | $ 21545.77 | $ 70286.40 | $ 1855.08 | $ 90898.84 |
| August 2022 | $ 2000.00 | $ 229.63 | $ 1766.02 | $ (4.35) | $ 222.07 | $ 90066.16 | $ 21600.67 | $ 68465.49 | $ 1855.08 | $ 89043.76 |
| Fiscal 2022 Totals | $ 24000.00 | $ 2983.52 | $ 21238.55 | $ 222.07 | N/A | N/A | N/A | N/A | $ 22260.96 | N/A |
| September 2022 | $ 2000.00 | $ 225.10 | $ 1777.92 | $ 3.02 | $ 225.09 | $ 88288.24 | $ 21653.93 | $ 66634.31 | $ 1855.08 | $ 87188.68 |
| October 2022 | $ 2000.00 | $ 220.56 | $ 1782.30 | $ 2.86 | $ 227.96 | $ 86505.94 | $ 21707.33 | $ 64798.61 | $ 1855.08 | $ 85333.60 |
| November 2022 | $ 2000.00 | $ 209.06 | $ 1779.59 | $ (11.35) | $ 216.60 | $ 84726.35 | $ 21762.64 | $ 62963.71 | $ 1855.08 | $ 83478.52 |
| December 2022 | $ 2000.00 | $ 211.46 | $ 1791.09 | $ 2.55 | $ 219.15 | $ 82935.27 | $ 21816.30 | $ 61118.97 | $ 1855.08 | $ 81623.44 |
| January 2023 | $ 2000.00 | $ 206.91 | $ 1788.69 | $ (4.40) | $ 214.75 | $ 81146.58 | $ 21871.88 | $ 59274.70 | $ 1855.08 | $ 79768.36 |
| February 2023 | $ 2000.00 | $ 182.77 | $ 1793.24 | $ (23.99) | $ 190.76 | $ 79353.34 | $ 21927.61 | $ 57425.72 | $ 1855.08 | $ 77913.28 |
| March 2023 | $ 2000.00 | $ 197.70 | $ 1817.38 | $ 15.08 | $ 205.84 | $ 77535.96 | $ 21978.08 | $ 55557.88 | $ 1855.08 | $ 76058.20 |
| April 2023 | $ 2000.00 | $ 186.89 | $ 1802.44 | $ (10.67) | $ 195.17 | $ 75733.52 | $ 22034.08 | $ 53699.44 | $ 1855.08 | $ 74203.12 |
| May 2023 | $ 2000.00 | $ 188.49 | $ 1813.26 | $ 1.75 | $ 196.92 | $ 73920.26 | $ 22088.41 | $ 51831.85 | $ 1855.08 | $ 72348.04 |
| June 2023 | $ 2000.00 | $ 177.96 | $ 1811.66 | $ (10.38) | $ 186.54 | $ 72108.60 | $ 22144.69 | $ 49963.91 | $ 1855.08 | $ 70492.96 |
| July 2023 | $ 2000.00 | $ 179.24 | $ 1822.20 | $ 1.44 | $ 187.97 | $ 70286.40 | $ 22199.29 | $ 48087.11 | $ 1855.08 | $ 68637.88 |
| August 2023 | $ 2000.00 | $ 174.60 | $ 1820.91 | $ (4.49) | $ 183.49 | $ 68465.49 | $ 22255.85 | $ 46209.64 | $ 1855.08 | $ 66782.80 |
| Fiscal 2023 Totals | $ 24000.00 | $ 2360.74 | $ 21600.67 | $ (38.59) | N/A | N/A | N/A | N/A | $ 22260.96 | N/A |