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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

Resources

Agency Fiscal Year-End USAS Adjustments and AFR Checklist
Step 2 – Review USAS Balances

Review USAS balances and record corrections to ensure that the balances are as accurate as possible.

Order USAS reports or use FMQuery–SIRS to verify balances. See Ordering USAS Financial Reports for information on ordering reports to determine the levels of each, the structure in USAS and to analyze other reports. Perform any necessary corrections (such as expenditure/revenue reclassifications and movement of expenditures/revenues) to the correct fund.

  1. Review USAS security access and begin processing requests, if necessary.
  2. Order the DAFR8580 or use FMQuery–SIRS to verify that:
    1. Appropriated fund 0001 does not report cash in state treasury (CIST). If there is CIST for appropriated fund 0001, make an adjustment to reclassify CIST to:
      • Legislative cash (GL 0048) offset by legislative appropriations (GL 9000) if it belongs in FT01

        –OR–

      • Shared cash (GL 0047) offset by due from agency 902 (GL 0284) if reported in a suspense fund
    2. Components of receivables are reported on separate lines (such as federal, other intergovernmental, interest and dividends, accounts, taxes and other).
    3. Accounts receivable – Other (GL 0238) are only used for immaterial amounts (< 5% of total receivables) unless disclosed in Note 1. Review balances by using FMQuery–SIRS AFR Desk Review and running the DR103 — Review Other Receivables (BS,SNA-8580) report located in the Balance Sheet drop-down menu.
    4. Receivables – Other (GL 0270) is only used for immaterial amounts (< 5% of total receivables) unless disclosed in Note 1. Review balances by using FMQuery–SIRS AFR Desk Review and running the DR103 — Review Other Receivables (BS,SNA-8580) report located in the Balance Sheet drop-down menu.
    5. Report components of payables on separate lines (such as federal, other intergovernmental, interest and dividends, accounts, taxes and other).
    6. Payables – Other (GL 1150 and 1450) are only used for immaterial amounts (< 5% of total payables) unless disclosed in Note 1. Review balances by using FMQuery–SIRS AFR Desk Review and running the DR105 — Review Other Payables (BS,SNA-8580) report located in the Balance Sheet drop-down menu.
    7. Assets – Other (GL 0385 and 0432) are only used for immaterial amounts (<5% of total assets) unless disclosed in Note 1. Review balances by using FMQuery–SIRS AFR Desk Review and running the DR104 — Review Other Assets (BS,SNA-8580) report located in the Balance Sheet drop-down menu.
    8. Do not report funds held for others (GL 1149) in governmental fund types. Review balances by using FMQuery–SIRS AFR Desk Review and running the DR106 — Review Funds Held For Others (BS,SNA-8580) report located in the Balance Sheet drop-down menu.
    9. The general fund is the only fund allowed to report a negative (debit) unassigned fund balance amount.
    10. In all other governmental funds (including GR-Dedicated funds) if the amount of assets to be reported as nonspendable, restricted or committed fund balance exceeds the overall fund balance, report the excess amount as a negative unassigned fund balance. Do not report negative (debit) nonspendable, restricted or committed fund balances.
    11. Do not report a negative assigned fund balance. An assigned fund balance allocation does not, under any circumstance, result in a negative (debit) unassigned fund balance.

      Note: For items #i, #j and #k above, review fund balances using the following FMQuery–SIRS AFR Desk Review and running the reports below located in the Balance Sheet drop-down menu:

      • DR110 — Review Fund Balances at the GAAP Fund Level (BS,SNA-8580)
      • DR111 — Review Fund Balance at the D23 Fund Level (BS,SNA-8580)
    12. Restricted net position must not be negative (must not have a debit balance). Review balances by using the following FMQuery–SIRS AFR Desk Review and running the reports below located in the Balance Sheet drop-down menu:
      • DR108 — Review Restricted Net Assets at the GAAP Fund Level (BS,SNA-8580)
      • DR109 — Review Restricted Net Assets at the D23 Fund Level (BS,SNA-8580)
    13. Order the DAFR8605 or FMQuery–SIRS to verify the appropriate account balances tie to the agency’s fiduciary financial statements to the following fund types:
      • Pension and Other Employee Benefit Trust Funds (FT10)
        Use pension and other employee benefit trust funds to report fiduciary activities for:
        • Pension plans and OPEB plans that are administered through trusts
        • Other employee benefit plans (for which resources are held in a trust and the contributions are irrevocable):
          • Record pension and related fund balances in GL 2401
          • Record OPEB-related fund balances in GL 2402
          • Record trust fund balances (FT10) that are not pension or OPEB in GL 2404
      • External Investment Trust Funds (FT18)
        Use external investment trust funds (EITF) to report fiduciary activities from the external portion of investment pools and individual investment accounts that are held in a trust. Record Investment pool related fund (FT18) balances in GL 2403.
      • Private-Purpose Trust Funds (FT20)
        Use private-purpose trust funds to report fiduciary activities that are not required to be reported in pension and OPEB trust funds (FT10) or external investment trust funds (FT18) and are held in a trust. Record private-purpose trust fund (FT20) balances in GL 2404.
      • Custodial Funds (FT22)
        Use custodial funds to report fiduciary activities that are not required to be reported in the other fiduciary activities fund types:
        • Record other fiduciary-related fund balance in GL 2400
        • Record pool balances not reported as EITF-related in GL 2403

  3. Order the DAFR8590 and DAFR8600 or use FMQuery–SIRS to verify that account balances tie to agency’s financial statements.

    If proprietary funds report an extraordinary gain or loss, research to see if it is for early extinguishment of debt. If so, work with your financial reporting analyst to reclassify it to interest expense.

  4. Order the DAFR8580 or use FMQuery–SIRS to verify that:
    1. There are no CIST balances for appropriated fund 0001 and appropriated fund 0882. Review balances by using FMQuery–SIRS AFR Desk Review and running the DR501 — Review Cash In State Treasury — Suspense Funds report located in the Suspense Funds drop-down menu.
    2. The portion of the fund balances that belongs to other funds are not reported in suspense funds. For more information, see the Common USAS Entries for Suspense Funds page. Review balances by using FMQuery–SIRS AFR Desk Review and running the DR502 — Review Departmental Suspense Fund report located in the Suspense Funds drop-down menu.
    3. The balances in payroll liabilities and funds held for others net to zero for funds 0807, 0942 and 0980. For more information, see the Common USAS Entries for Suspense Funds page Review balances by using FMQuery–SIRS AFR Desk Review and running the DR503 — Review Payroll Liabilities & Funds Held Others report located in the Suspense Funds drop-down menu.
    4. All CIST GL account balances have been eliminated for funds 0899, 0979, 9010, 9011 and 9012. These funds are reported entirely by agency 902, similar to the reporting of activity in GAAP fund 0882. For more information, see the Common USAS Entries for Suspense Funds page. Review balances by using FMQuery–SIRS AFR Desk Review and running the DR504 — Review Cash In State Treasury — Direct Deposit report located in the Suspense Funds drop-down menu.
  5. Order the DAFR8581 or use FMQuery–SIRS to verify that:
    1. All operating statement line items match at the GAAP source/object level in USAS. The Comptroller Object Profile (D10) screen displays the government-wide GAAP source/object level the COBJ rolls to. The GAAP Source/Object Profile (D08) screen provides a description of the GWFS GAAP source/object. Review the roll-up to the government-wide level of all operating statement line items.
    2. Revenue rolling to program revenue (charges for services, operating grants and contributions, and capital grants and contributions) and general revenue (taxes, etc.) are in the correct categories.
    3. The System clearing was eliminated. System clearing GL 9999 and basis conversion GL 9992 must equal zero at the D23 fund level. Review balances by using FMQuery–SIRS AFR Desk Review and running the DR115 — Review System Clearing (formerly CR118) report located in the Balance Sheet drop-down menu.
  6. Order the DAFR8580 or use FMQuery–SIRS to verify that:
    1. Suspense funds do not contain fund balances since any activity must be reclassified to another fund. Review balances by using FMQuery–SIRS AFR Desk Review and running the DR505 — Review Leg Cash and Fund Balance in Suspense Funds (BS,SNA-8580) report located in the Suspense Funds drop-down menu.
  7. Review suspense funds to ensure that all activity nets to $0 at the GAAP source/object level and the GAAP fund level. If activity does not net to zero, research and make appropriate corrections. Review balances by using FMQuery–SIRS AFR Desk Review and running the DR506 — Review OS Activity (formerly CR122) (StmtOfChangesAssetLiab-8600) report located in the Funds drop-down menu.
  8. Order the DAFR8910 or ensure there are no missing AGL numbers (NPs – no posts) on any transaction by using the FMQuery–SIRS USAS Research Tools and running the Interagency/Interfund Activity report located in the General Ledger Reports drop-down menu.
  9. Review negative revenue and expenditure balances using the following FMQuery–SIRS AFR Desk Review and running the reports below located in the Operating Statement drop-down menu:
    • DR201 — Review Negative Revenues – Determine if the negative revenue amounts require reclassification. For reversing entries of prior fiscal year transactions, negative values may be appropriate.
    • DR202 — Review Negative Expenditures – Determine if the negative expenditure amounts require reclassification. For reversing entries of prior fiscal year transactions, negative values may be appropriate.
  10. Ensure there are no back-out not applicable (BONA) revenues or expenditures at the GAAP source/object level and determine if a USAS correction is needed using the following FMQuery–SIRS AFR Desk Review and running the reports below located in the Operating Statement drop-down menu:
    • DR203 — BONA – Governmental Fund Types (formerly CR116)
    • DR204 — BONA – Proprietary Fund Types (formerly CR117)
    • DR205 — BONA – Fiduciary Fund Types (formerly CR124)
  11. Post any necessary expenditure, revenue or transfer corrections by Aug. 31, 20CY.
  12. Ensure petty cash amounts are correctly reported as cash on hand or cash in bank and that balance sheet amounts match the authorized amount of the petty cash fund. Post any petty cash corrections according to Travel Advance Account and Petty Cash Account (APS 010) (FPP A.044) and Accounting for Uncollectible Accounts (APS 027) (FPP C.001).
  13. Ensure the balance in GL 2303 – Non-spendable for loans, contracts and receivables is equal to the total of the balances by using FMQuery–SIRS AFR Desk Review and running the DR114 — Review Fund Balance for Long-Term Receivables (formerly CR106) report located in the Balance Sheet drop-down menu:
    • GL 0306 – NC Interfund Receivable
    • GL 0462 – NC Restricted Loans and Contracts
    • GL 0466 – NC Loans and Contracts
    • GL 0467 – NC Other Receivables
    • GL 0476 – NC Taxes Receivable
    • GL 0477 – NC Federal Receivables
  14. Compare the fund balances on the operating statement to the fund balances in the balance sheet using the CR_111S report included in the AFR Ad Hoc Review Reports transmission. Difference must be zero for each GAAP fund.