Reporting Requirements for Annual Financial Reports of State Agencies and Universities
Universities
Subscription-Based IT Arrangements (SBITA)
Recognitions and Measurements
The following entries relate to subscription-based information technology arrangements (SBITA) recognition and measurement for arrangements other than short-term contracts.
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Governmental Activities [+]
The following entries for governmental activities record a subscription asset and the subscription obligation. All entries must be completed for subscriptions and the associated intangible right to use assets to be recorded correctly. The recorded amounts are based on the Amortization Schedule 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 Capital Outlay Expenditures at the Inception in Governmental Funds (FT01, FT02, FT03, FT04) | ||||||||||||
| (1) | 5 | U | XXXXCY | XXX | 632 | CY | 99999 | 7329 | $ 27,452,605.07 | XXXX | 9999 | |
| To Record Increase in Subscription Obligations at the Inception in Governmental Funds (FT01, FT02, FT03, FT04) | ||||||||||||
| (2) | 5 | U | XXXXCY | XXX | 657 | CY | 99999 | 3893 | $ 27,452,605.07 | XXXX | 9999 | |
| To Reclass the Subscription Payments to Debt Service Principal and Interest Expenditures in Governmental Funds (FT 01, 02, 03, 04) | ||||||||||||
| (3) | 5 | U | 0832CY | XXX | 633 | CY | 99999 | 7XXX | $ 2,527,318.57 | XXXX | 9999 | |
| To Record Debt Service Interest Expenditures in Governmental Funds (FT01, FT02, FT03, FT04) | ||||||||||||
| (4) | 5 | U | 0832CY | XXX | 632 | CY | 99999 | 7802 | $ 730,490.60 | XXXX | 9999 | |
| To Record Debt Service Principal Expenditures in Governmental Funds (FT01, FT02, FT03, FT04) | ||||||||||||
| (5) | 5 | U | 0832CY | XXX | 632 | CY | 99999 | 7339 | $ 1,796,8727.97 | XXXX | 9999 | |
| To Record the NC Subscription Liability and Reclass the Increase in Subscription Obligations in Basis Conversion Funds (FT12) | ||||||||||||
| (6) | 5 | U | 0832CY | XXX | 516 | CY | 99999 | 3893 | $ 27,452,605.07 | XXXX | 1724 | |
| To Record the Intangible Right-to-Use Subscription Asset and Reclass the Capital Outlay Expenditures in Basis Conversion Funds (FT11) | ||||||||||||
| (7) | 5 | U | 0832CY | XXX | 513 | CY | 99999 | 7329 | $ 27,452,605.07 | XXXX | 0626 | |
| To Reduce the Reduction in Subscription Liability and Reclass the Debt Service Principal Expenditures in Basis Conversion Funds (FT12) | ||||||||||||
| (8) | 5 | U | 0832CY | XXX | 503 | CY | 99999 | 7339 | $ 1,796,827.97 | XXXX | 1724 | |
| To Record the Portion of Current Subscription Liability (due within 1 year) in Basis Conversion Funds (FT12) | ||||||||||||
| (9) | 5 | U | 0832CY | XXX | 537 | CY | 99999 | N/A | $ 2,114,668.00 | XXXX | 1624 | |
| To Reduce Non-Current Subscription Liability by Amount of Current Subscription Liability (due within 1 year) in Basis Conversion Funds (FT12) | ||||||||||||
| (10) | 5 | U | 0832CY | XXX | 537 | CY | 99999 | N/A | $ 2,114,668.00 | R | XXXX | 1724 |
| To Record the Accrued Interest Payable in Basis Conversion Funds (FT12) | ||||||||||||
| (11) | 5 | U | 0832CY | XXX | 503 | CY | 99999 | 7802 | $ 63,260.83 | R | XXXX | 1610 |
| To Record Amortization of the Right to Use Asset in Basis Conversion Funds (FT11) | ||||||||||||
| (12) | 5 | U | 0832CY | XXX | 512 | CY | 99999 | 7885 | $ 2,656,703.76 | XXXX | 0629 | |
Accounting effect of above entries:
| Debit | Credit | ||
|---|---|---|---|
| (1) | To Record Capital Outlay Expenditures at the Inception in Governmental Funds (FT01, FT02, FT03, FT04) | ||
| 5600 GAAP Expenditure Offset | $ 27,452,605.07 | ||
| 9999 System Clearing | $ 27,452,605.07 | ||
| (2) | To Record Increase in Subscription Obligations at the Inception in Governmental Funds (FT 01, 02, 03, 04) | ||
| 9999 System Clearing | $ 27,452,605.07 | ||
| 6035 Other Financing Sources | $ 27,452,605.07 | ||
| (3) | To Reclass the Subscription Payments to Debt Service Principal and Interest Expenditures in Governmental Funds (FT 01, 02, 03, 04) | ||
| 9999 System Clearing | $ 2,527,318.57 | ||
| 5600 GAAP Expenditure Offset** | $ 2,527,318.57 | ||
| (4) | To Record Debt Service Interest Expenditures in Governmental Funds (FT01, FT02, FT03, FT04) | ||
| 5600 GAAP Expenditure Offset | $ 730,490.60 | ||
| 9999 System Clearing | $ 730,490.60 | ||
| (5) | To Record Debt Service Principal Expenditures in Governmental Funds (FT01, FT02, FT03, FT04) | ||
| 5600 GAAP Expenditure Offset | $ 1,796,827.97 | ||
| 9999 System Clearing | $ 1,796,827.97 | ||
| (6) | To Record the NC Subscription Liability and Reclass the Increase in Subscription Obligations in Basis Conversion Funds (FT12) | ||
| 6135 BC – Other Financing Sources | $ 27,452,605.07 | ||
| 1724 BC – NC Right to Use Subscription Obligations | $ 27,452,605.07 | ||
| (7) | To Record the Intangible Right-to-Use Subscription Asset and Reclass the Capital Outlay Expenditures in Basis Conversion Funds (FT11) | ||
| 0626 Intangible Right to Use Subscription Asset* | $ 27,452,605.07 | ||
| 5650 BC – Expenditure Control | $ 27,452,605.07 | ||
| (8) | To Reduce the Reduction in Subscription Liability and Reclass the Debt Service Principal Expenditures in Basis Conversion Funds (FT12) | ||
| 1724 BC – NC Right to Use Subscription Obligations | $ 1,796,827.97 | ||
| 5650 BC – Expenditure Control | $ 1,796,827.97 | ||
| (9) | To Record the Portion of Current Subscription Liability (due within 1 year) in Basis Conversion Funds (FT12) | ||
| 9992 BC – System Clearing | $ 2,114,668.00 | ||
| 1624 BC – CL Right to Use Subscription Obligations | $ 2,114,668.00 | ||
| (10) | To Reduce Non-current Subscription Liability by Amount of Current Subscription Liability (due within 1 year) in Basis Conversion Funds (FT12) | ||
| 1724 BC – NC Right to Use Subscription Obligations | $ 2,114,668.00 | ||
| 9992 BC – System Clearing | $ 2,114,668.00 | ||
| (11) | To Record the Accrued Interest Payable in Basis Conversion Funds (FT12) | ||
| 5650 BC – Expenditure Control | $ 63,260.83 | ||
| 1610 BC – CL Interest Payable | $ 63,260.83 | ||
| (12) | To Record Amortization of the Right to Use Asset in Basis Conversion Funds (FT11) | ||
| 5650 BC – Expenditure Control | $ 2,656,703.76 | ||
| 0629 BC – Right to Use Subscription Asset Amortization* | $ 2,656,703.76 |
*Use the following GLs to record right to use subscription assets in suffix number 7 and related accumulated amortization in suffix number 12:
- 0626 BC Right to Use Asset – Subscription
- 0629 BC Right to Use Asset – Subscription – Amortization
**Use the following COBJs in suffix number 3 to reclass the subscription payments:
- 7243 Educational/Training Services
- 7262 Personal Property – Maintenance and Repair – Computer Software – Expensed
- 7276 Communication Services
- 7380 Intangible Property – Computer Software – Expensed
- 7415 Rental of Computer Software
Amortization Schedule Example
| Year | Month | Cash | Interest Expense | Liability Reduction | Accrued Interest | Cumulative Accrued Interest Liability | Total Liability | ST Subscription Liab. | LT Subscription Liab. | Amortization Expense | Net Asset Balance | Accumulated Amortization | Gross Asset Balance |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | September | 178,719.03 | 65,008.99 | 178,719.03 | 65,008.99 | 65,008.99 | 27,273,886.04 | 1,788,929.70 | 25,484,956.34 | 221,391.98 | 27,231,213.10 | 221,391.98 | 27,452,605.07 |
| 2021 | October | 179,631.79 | 69,215.26 | 112,381.11 | 1,964.59 | 66,973.57 | 27,161,504.93 | 1,850,836.01 | 25,310,668.92 | 221,391.98 | 27,009,821.12 | 442,783.95 | 27,452,605.07 |
| 2021 | November | 179,631.79 | 66,710.37 | 110,425.76 | -2,495.66 | 64,477.91 | 27,051,079.17 | 1,913,047.09 | 25,138,032.08 | 221,391.98 | 26,788,429.14 | 664,175.93 | 27,452,605.07 |
| 2021 | December | 179,631.79 | 68,646.21 | 112,930.50 | 1,944.92 | 66,422.83 | 26,938,148.67 | 1,975,259.45 | 24,962,889.22 | 221,391.98 | 26,567,037.17 | 885,567.91 | 27,452,605.07 |
| 2022 | January | 179,631.79 | 68,363.24 | 110,994.86 | -273.69 | 66,149.15 | 26,827,153.81 | 2,037,787.55 | 24,789,366.26 | 221,391.98 | 26,345,645.19 | 1,106,959.88 | 27,452,605.07 |
| 2022 | February | 231,336.79 | 61,377.52 | 162,982.67 | -6,976.60 | 59,172.54 | 26,664,171.13 | 2,048,769.97 | 24,615,401.16 | 221,391.98 | 26,124,253.22 | 1,328,351.86 | 27,452,605.07 |
| 2022 | March | 231,336.79 | 67,519.74 | 169,972.67 | 6,155.62 | 65,328.16 | 26,494,198.46 | 2,059,275.20 | 24,434,923.27 | 221,391.98 | 25,902,861.24 | 1,549,743.83 | 27,452,605.07 |
| 2022 | April | 232,629.42 | 64,934.58 | 165,123.65 | -2,571.19 | 62,756.97 | 26,329,074.81 | 2,070,344.68 | 24,258,730.13 | 221,391.98 | 25,681,469.26 | 1,771,135.81 | 27,452,605.07 |
| 2022 | May | 232,629.42 | 66,671.51 | 167,708.41 | 1,750.51 | 64,507.48 | 26,161,366.40 | 2,081,272.20 | 24,080,094.20 | 221,391.98 | 25,460,077.29 | 1,992,527.79 | 27,452,605.07 |
| 2022 | June | 234,046.66 | 64,108.50 | 167,388.93 | -2,549.23 | 61,958.25 | 25,993,977.46 | 2,092,433.14 | 23,901,544.32 | 221,391.98 | 25,238,685.31 | 2,213,919.76 | 27,452,605.07 |
| 2022 | July | 234,046.66 | 65,812.17 | 169,951.92 | 1,717.43 | 63,675.68 | 25,824,025.54 | 2,103,450.55 | 23,720,574.99 | 221,391.98 | 25,017,293.33 | 2,435,311.74 | 27,452,605.07 |
| 2022 | August | 234,046.66 | 65,383.34 | 168,248.46 | -414.86 | 63,260.82 | 25,655,777.09 | 2,114,668.00 | 23,541,109.08 | 221,391.98 | 24,795,901.36 | 2,656,703.72 | 27,452,605.07 |
| Totals | 2,527,318.59 | 793,751.43 | 1,796,827.97 | 63,260.83 | 2,656,703.76 |
Business-Type Activities (FT05) and Component Units (FT15) [+]
The following entries for business-type activities record a subscription asset and the subscription obligation. All entries must be completed for subscriptions and the associated intangible right to use assets to be recorded correctly. The recorded amounts are based on the Amortization Schedule 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 Right to Use Subscription Asset at the Inception | ||||||||||||
| (1) | 5 | U | 0832CY | XXX | 644 | CY | 99999 | N/A | $ 27,452,605.07 | XXXX | 0326 | |
| To Record Non-Current Right to Use Subscription Liability at the Inception | ||||||||||||
| (2) | 5 | U | 0832CY | XXX | 645 | CY | 99999 | N/A | $ 27,452,605.07 | XXXX | 1224 | |
| To Reclass the Subscription Payments to Reduce the Subscription Liability and Record the Interest | ||||||||||||
| (3) | 5 | U | 0832CY | XXX | 633 | CY | 99999 | 7XXX | $ 2,527,318.57 | XXXX | 9999 | |
| To Record the Interest Portion of Subscription Payments | ||||||||||||
| (4) | 5 | U | 0832CY | XXX | 632 | CY | 99999 | 7802 | $ 793,751.43 | XXXX | 9999 | |
| To Reduce the Subscription Liability by Principal Portion of Subscription Payments | ||||||||||||
| (5) | 5 | U | 0832CY | XXX | 644 | CY | 99999 | N/A | $ 1,796,8727.97 | XXXX | 1224 | |
| To Record the Accrued Interest Payable | ||||||||||||
| (6) | 5 | U | 0832CY | XXX | 645 | CY | 99999 | N/A | $ 63,260.83 | XXXX | 1110 | |
| To Record the Current Portion of Subscription Obligation (due within 1 year) | ||||||||||||
| (7) | 5 | U | 0832CY | XXX | 647 | CY | 99999 | N/A | $ 2,114,668.00 | XXXX | 1124 | |
| To Reduce Non-Current Subscription Liability by Amount of Current Subscription Liability (due within 1 year) | ||||||||||||
| (8) | 5 | U | 0832CY | XXX | 647 | CY | 99999 | N/A | $ 2,114,668.00 | R | XXXX | 1224 |
| To Record Amortization of the Right to Use Asset | ||||||||||||
| (9) | 5 | U | 0832CY | XXX | 632 | CY | 99999 | 7885 | $ 2,656,703.76 | XXXX | 0329 | |
Accounting effect of above entries:
| Debit | Credit | ||
|---|---|---|---|
| (1) | To Record Non-Current Right to Use Subscription Asset at the Inception | ||
| 0336 Right to Use Subscription Asset* | $ 27,452,605.07 | ||
| 9999 System Clearing | $ 27,452,605.07 | ||
| (2) | To Record Non-Current Right to Use Subscription Liability at the Inception | ||
| 9999 System Clearing | $ 27,452,605.07 | ||
| 1224 NC Right to Use Subscription Obligations | $ 27,452,605.07 | ||
| (3) | To Reclass the Subscription Payments to Reduce the Subscription Liability and Record Interest | ||
| 9999 System Clearing | $ 2,527,318.57 | ||
| 5600 GAAP Expenditure Offset** | $ 2,527,318.57 | ||
| (4) | To Record the Interest Portion of Subscription Payments | ||
| 5600 GAAP Expenditure Offset | $ 793,751.43 | ||
| 9999 System Clearing | $ 793,751.43 | ||
| (5) | To Reduce the Subscription Liability by Principal Portion of Subscription Payments | ||
| 1224 NC Right to Use Subscription Obligations | $ 1,796,827.97 | ||
| 9999 System Clearing | $ 1,796,827.97 | ||
| (6) | To Record the Accrued Interest Payable | ||
| 9999 System Clearing | $ 63,260.83 | ||
| 1110 Interest Payable | $ 63,260.83 | ||
| (7) | To Record the Current Portion of Subscription Obligation (due within 1 year) | ||
| 9999 System Clearing | $ 2,114,668.00 | ||
| 1124 CL Right to Use Subscription Obligations | $ 2,114,668.00 | ||
| (8) | To Reduce Non-current Subscription Obligation by Amount of Current Subscription Obligation (due within 1 year) | ||
| 1224 NC Right to Use Subscription Obligations | $ 2,114,668.00 | ||
| 9999 System Clearing | $ 2,114,668.00 | ||
| (9) | To Record Amortization of the Right to Use Asset | ||
| 5600 GAAP Expenditure Offset | $ 2,656,703.76 | ||
| 0329 Right to Use Asset – Subscription – Amortization* | $ 2,656,703.76 |
*Use the following GLs to record right to use subscription assets in the first suffix and related accumulated amortization in suffix number 9:
- 0326 Right to Use Asset – Subscription
- 0329 Right to Use Asset – Subscription – Amortization
**Use the following COBJ in suffix number 3 to reclass the subscription payments:
- 7243 Educational/Training Services
- 7262 Personal Property – Maintenance and Repair – Computer Software – Expensed
- 7276 Communication Services
- 7380 Intangible Property – Computer Software – Expensed
- 7415 Rental of Computer Software
Amortization Schedule Example
| Year | Month | Cash | Interest Expense | Liability Reduction | Accrued Interest | Cumulative Accrued Interest Liability | Total Liability | ST Subscription Liab. | LT Subscription Liab. | Amortization Expense | Net Asset Balance | Accumulated Amortization | Gross Asset Balance |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | September | 178,719.03 | 65,008.99 | 178,719.03 | 65,008.99 | 65,008.99 | 27,273,886.04 | 1,788,929.70 | 25,484,956.34 | 221,391.98 | 27,231,213.10 | 221,391.98 | 27,452,605.07 |
| 2021 | October | 179,631.79 | 69,215.26 | 112,381.11 | 1,964.59 | 66,973.57 | 27,161,504.93 | 1,850,836.01 | 25,310,668.92 | 221,391.98 | 27,009,821.12 | 442,783.95 | 27,452,605.07 |
| 2021 | November | 179,631.79 | 66,710.37 | 110,425.76 | -2,495.66 | 64,477.91 | 27,051,079.17 | 1,913,047.09 | 25,138,032.08 | 221,391.98 | 26,788,429.14 | 664,175.93 | 27,452,605.07 |
| 2021 | December | 179,631.79 | 68,646.21 | 112,930.50 | 1,944.92 | 66,422.83 | 26,938,148.67 | 1,975,259.45 | 24,962,889.22 | 221,391.98 | 26,567,037.17 | 885,567.91 | 27,452,605.07 |
| 2022 | January | 179,631.79 | 68,363.24 | 110,994.86 | -273.69 | 66,149.15 | 26,827,153.81 | 2,037,787.55 | 24,789,366.26 | 221,391.98 | 26,345,645.19 | 1,106,959.88 | 27,452,605.07 |
| 2022 | February | 231,336.79 | 61,377.52 | 162,982.67 | -6,976.60 | 59,172.54 | 26,664,171.13 | 2,048,769.97 | 24,615,401.16 | 221,391.98 | 26,124,253.22 | 1,328,351.86 | 27,452,605.07 |
| 2022 | March | 231,336.79 | 67,519.74 | 169,972.67 | 6,155.62 | 65,328.16 | 26,494,198.46 | 2,059,275.20 | 24,434,923.27 | 221,391.98 | 25,902,861.24 | 1,549,743.83 | 27,452,605.07 |
| 2022 | April | 232,629.42 | 64,934.58 | 165,123.65 | -2,571.19 | 62,756.97 | 26,329,074.81 | 2,070,344.68 | 24,258,730.13 | 221,391.98 | 25,681,469.26 | 1,771,135.81 | 27,452,605.07 |
| 2022 | May | 232,629.42 | 66,671.51 | 167,708.41 | 1,750.51 | 64,507.48 | 26,161,366.40 | 2,081,272.20 | 24,080,094.20 | 221,391.98 | 25,460,077.29 | 1,992,527.79 | 27,452,605.07 |
| 2022 | June | 234,046.66 | 64,108.50 | 167,388.93 | -2,549.23 | 61,958.25 | 25,993,977.46 | 2,092,433.14 | 23,901,544.32 | 221,391.98 | 25,238,685.31 | 2,213,919.76 | 27,452,605.07 |
| 2022 | July | 234,046.66 | 65,812.17 | 169,951.92 | 1,717.43 | 63,675.68 | 25,824,025.54 | 2,103,450.55 | 23,720,574.99 | 221,391.98 | 25,017,293.33 | 2,435,311.74 | 27,452,605.07 |
| 2022 | August | 234,046.66 | 65,383.34 | 168,248.46 | -414.86 | 63,260.82 | 25,655,777.09 | 2,114,668.00 | 23,541,109.08 | 221,391.98 | 24,795,901.36 | 2,656,703.72 | 27,452,605.07 |
| Totals | 2,527,318.59 | 793,751.43 | 1,796,827.97 | 63,260.83 | 2,656,703.76 |