Lesson 3: Error Correction

Correction of State Pass-Through Expenditures/Expenses

This section explains entries related to the correction of AGL and COBJ for expenditures (and expenses) and describes entries necessary to correct GAAP and D23 fund.

Correcting Blank/Incorrect Expenditure AGL or COBJ

The process to correct an expenditure AGL or COBJ is similar. However, the procedure is different for the expenditure corrections entered before Aug. 31, 20CY and those entered after Aug. 31, 20CY — because cash transactions cannot be backdated. The following tables illustrate this process in chronological order.

If the entries are recorded before Aug. 31, 20CY:

Note: For expenditure and expense corrections recorded before Aug. 31, 20CY, the AGL number must be input on the lines of entry that include pass-through COBJs unless the original transaction had a pass-through COBJ and a blank AGL. If changing from one pass-through COBJ to another, both lines must have the AGL. If changing from a pass-through COBJ to a non-pass-through COBJ, the AGL must be entered on the first line of entry.

Accounting effect of expenditure entries recorded before Aug. 31, 20CY

If the entries are recorded after Aug. 31, 20CY:

Note: For expenditure and expense corrections recorded after Aug. 31, 20CY, the AGL number must be input on the lines of entry that include pass-through COBJs unless the original transaction had a pass-through COBJ and a blank AGL. If changing from one pass-through COBJ to another, both lines must have the AGL. If changing from a pass-through COBJ to a non-pass-through COBJ, the AGL must be entered on the first line of entry.

Accounting effect of expenditure entries recorded after Aug. 31, 20CY

Note: T-code 467 posts as of the effective date of this transaction and generates a cash entry (T-code 471) that posts on the system management date. If this entry is backdated, the generated entry posts in the next period.

Correcting GAAP and D23 Fund on Pass-Through Expenditures/Expenses

Sometimes at the fiscal year-end, an agency discovers an error in the D23 fund and/or GAAP fund related to a pass-through transaction that was coordinated and in balance with the other agency. No entry is required by the Comptroller’s office if the incorrect D23 fund and the correct D23 fund are both within the same GAAP fund, although the agency may choose to do a correction entry for internal purposes. However, an entry is required if the GAAP fund is incorrect. In both situations, the Comptroller’s office recommends that agencies make the correction within their own agency to avoid having to re-coordinate with the other agency.

If the D23/GAAP fund is the only error, the agency may leave the pass-through due from/due to as is and run the GAAP fund adjustment through other expenditures/other operating expenses using COBJ 7970 outlined as follows:

If the entries are recorded after Aug.31, 20CY between different GAAP funds:

Accounting effect of expenditure entries recorded after Aug. 31, 20CY between different GAAP funds

Next: Correction of State Pass-Through Revenues