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OASIS Issues

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OASIS Issues Updates: BPI Reports and Query Group Why, When, and How to Delete Queries Bob Barton, MBA – PowerPoint PPT presentation

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Title: OASIS Issues


1
OASIS Issues
  • Updates BPI Reports and Query Group
  • Why, When, and How to Delete Queries
  • Bob Barton, MBA

2
Purchasing Department Issues
  • Where Did All My POs Go?
  • Blanket Orders ContractsWhat Now?
  • Mark Seiler, CPM
  • Dirk Buesing, Buyer II

3
General Accounting Division (ACO)
  • Long Term Debt and
  • Capital Lease Obligations
  • James D. Moore
  • Senior Accountant

4
Deferred Revenue Account Analysis Schedule S-9
Presented by Frank Leonard February 22, 2005
4
5
Objectives
Deferred Revenue Account Analysis Schedule S-9
  • To provide departments the opportunity to
    validate the data in deferred revenue accounts
    prior to external auditors review
  • To avoid unnecessary audit findings
  • To ensure proper representation of financial data

5
6
Deferred Revenue
Deferred Revenue Account Analysis Schedule S-9
Deferred revenue arises when a potential revenue
transaction does not meet both the measurable
and available criteria for recognition in the
current period.
6
7
Deferred Revenue Account Analysis Schedule S-9
Criteria for Revenue Recognition
Under Accrual Basis of Accounting (For
Proprietary Funds only - Internal Service Funds,
Enterprise Funds)
  • Revenue must be earned (measurable) before it can
    be recognized. However, cash does not have to be
    received (available) before revenue is recognized.

7
8
Deferred Revenue Account Analysis Schedule S-9
Criteria for Revenue Recognition
Under Modified Accrual Basis of Accounting (For
Governmental Funds only - General Fund, Special
Revenue Funds, Capital Project Funds, and Debt
Service Funds)
  • Revenue must be earned (measurable) and
    available. This means it must be earned and cash
    must be received within 12 months. The revenue
    must also be eligible to recognize revenue.

8
9
Deferred Revenue Account Analysis Schedule S-9
Criteria for Revenue Recognition
Eligible or Eligibility The characteristic that
must exist for a given entity to be considered
qualified or allowed to take legal ownership of
the money received for a particular program.
  • Eligibility requirements
  • Allowable cost restrictions (Expenditure-driven
    / Reimbursements)
  • Time restrictions
  • Contingencies
  • Required characteristics of recipient
  • NOTE Purpose restrictions cannot be used to
    establish eligibility.

9
10
A. Proceeds Received in Advance of Revenue
Entitlement (Unearned)
Deferred Revenue Account Analysis Schedule S-9
Accounting Treatment
1. To receive cash in advance of revenue
recognition Account Debit Credit Cash
(101100) 100 Deferred Revenue (230XXX) 100
2. To recognize revenue once the criteria has
been met Account Debit Credit Deferred
Revenue (230XXX) 100 Revenue (7XXXXX) 100
10
11
Deferred Revenue Account Analysis Schedule S-9
Accounting Treatment
B. Proceeds Received Subsequent to Revenue
Entitlement (Unavailable)
1. Once revenue has been earned by a governmental
fund, a receivable and offsetting deferred
revenue should be entered. If these amounts
remain at year-end, it is considered
Unavailable. These amounts should be identified
using Schedule S-9. Account Debit Credit
Receivable (11XXXX) 100 Deferred
Revenue(230XXX) 100 (continued)
11
12
Deferred Revenue Account Analysis Schedule S-9
Accounting Treatment
B. Proceeds Received Subsequent to Revenue
Entitlement (Unavailable)
2. Once proceeds are received, (available), the
entry should be reversed and the revenue should
be recognized. Delaying the recognition of
revenue until cash is received is a modified
accrual concept for use with governmental funds
only. Account Debit Credit Receivable
(11XXXX) 100 Deferred Revenue(230XXX) 100
To reverse initial entry Cash (101100)
100 Revenue (7XXXXX) 100 To
recognize revenue
13
Start Your Queries!
13
14
Deferred Revenue Account Analysis Schedule S-9
Preparing Account Analysis Schedule S-9
A. To reconcile period 0
  • Run a Summary Trial Balance of Current Year
    Period 0 only. See Query 1
  • Run a Summary Trial Balance of Prior Year
    (periods 0-998). This will give you the
    opportunity to see any adjustments made by ACO in
    period 998 of the prior year.
  • 3. Reconcile period 0 of FY05 to the ending
    balance of FY04 and resolve any discrepancies.

14
15
Query 1(Summary) Sample Fund All Deferred
Revenue
Deferred Revenue Account Analysis Schedule S-9
Fields
Criteria
15
16
Query 1 Sample Fund All Deferred Revenue
Deferred Revenue Account Analysis Schedule S-9
  • First - Run to Excel

Highlight all data and sort the data by Account.
16
17
Deferred Revenue Account Analysis Schedule S-9
Use Query 1 information to fill in the Schedule
S-9 columns (b) through (e)
Is it deferred revenue??
Ask yourself
Is it deferred revenue??
Now is when you should validate the balances in
period 0. Feel free to insert rows to identify
balances that will not be recognized within the
next 12 months.
17
18
Deferred Revenue Account Analysis Schedule S-9
Preparing Account Analysis Schedule S-9
A. To reconcile period 0
  1. Run a Summary Trial Balance of Prior Year
    (periods 0-998). This will give you the
    opportunity to see any adjustments made by ACO in
    period 998 of the prior year.

18
19
Query 1(Summary) Sample Fund All Deferred
Revenue
Deferred Revenue Account Analysis Schedule S-9
Fields
Criteria
Change Fiscal Year to 2004
Change Accounting Period to between 0-998
19
20
Deferred Revenue Account Analysis Schedule S-9
Preparing Account Analysis Schedule S-9
A. To reconcile period 0
  • 3. Reconcile period 0 of FY05 to the ending
    balance of FY04 and resolve any discrepancies.

20
21
Preparing Account Analysis Schedule S-9
Deferred Revenue Account Analysis Schedule S-9
B. Validate Current Year Deferred Revenue
Transactions
  1. If no change to beginning balance, then verify to
    see why it has not been recognized as revenue.
  2. If the ending balance in the deferred revenue is
    positive, then this is a sign of
    over-reclassification. (Hint Liability accounts
    have natural credit balances).
  3. Be sure to research and adjust the balance prior
    to submitting it to the ACO.
  4. Identify when revenue recognition is expected to
    take place in order to enter the amounts
    accurately in columns (k) (l) of the schedule.

21
22
Query 2 (Detail) Sample Fund All Deferred
Revenue
Deferred Revenue Account Analysis Schedule S-9
Fields
Criteria
22
23
Query 2 (Detail) Sample Fund All Deferred
Revenue
Deferred Revenue Account Analysis Schedule S-9
  • First - Run to Excel

Highlight all data and sort the data by Account,
then by date, then by Journal ID.
23
24
Query 2 (Detail) continued Sample Fund All
Deferred Revenue
Deferred Revenue Account Analysis Schedule S-9
With the data still highlighted run a subtotal by
Account.
This information can then be included into
schedule S-9 columns (f) through (l)
24
25
Deferred Revenue Account Analysis Schedule S-9
Use Query 2 information to fill in the Schedule
S-9 columns (f) through (l)
Is it deferred revenue??
Ask yourself
Is it deferred revenue??
Now is when you should validate current year
deferred revenue transactions through period 9.
If balances require reclassification, doing it
now allows the department to avoid unnecessary
auditor review, eliminate findings and better
ensure that financial data is represented
accurately.
25
26
Questions??
Deferred Revenue Account Analysis Schedule S-9
27
ACO Contacts
Deferred Revenue Account Analysis Schedule S-9
  • For questions regarding deferred revenue, please
    contact
  • Frankie Ezzat at micro 5-3851 or
  • Frank Leonard at micro 5-3877

27
28
General Accounting Division (ACO)
  • Year-End Reminders
  • Review ACO Calendar Dates
  • Vi Jackson
  • Principal Accountant
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