2020 YE Training Presentation - 10 30 am to 11 00 am · ò l ð l î ì î ì ó ^ Z µ o Y t } v...

6/4/2020

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Schedule H - Capital Leases

2020 YEAR-END TRAINING 1

AUDITOR-CONTROLLER’S OFFICEPresented By: Caroline Santos

Schedule H – Capital Leases

CAPITAL LEASEA lease that substantially transfers all the risks and benefits of ownership of the property to the lessee.


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Schedule H – Capital Leases CriteriaTitle transfer at the end of the lease termBargain purchase optionLease term is 75% or more of economic life of leased propertyPresent value of lease payments are equal to 90% or more of the fair value of property


Schedule H – Capital Lease Test SheetCapital Lease Test link: http://www.auditorcontroller.org/ReportsPublications.aspx


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Schedule H – Capital Lease Test Sheet


Schedule H – Capital LeasesScenarioThe ACO has two new leases which meet the requirement to be recorded as capital leases.

1) The beginning fiscal year lease principal balance is $1,266,885

2) Additions of $531,754 were made during the fiscal year

3) Principal payments of $214,601 were made during the fiscal year


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Schedule H – Capital Leases


Schedule H – Capital Lease Payment Schedule


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Schedule H – Capital Lease Supporting Document


Schedule H – Capital LeasesQuestionThe ACO has been making a $1,700 monthly payment for 5 copiers. The payments will end in 2 more years at which time the copiers will be owned by the ACO.

What kind of lease agreement do we have?

A. Capital lease

B. Operating lease


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Schedule H – Capital LeasesAnswerCapital Lease.

Reason: Title transfers to ACO at the end of the lease term.


Schedule H – Capital LeasesSubmit Schedule H and Supporting Documents via

email to:

ACO [email protected]

Schedule H is Due August 7, 2020

Questions?Submit them by email to [email protected]


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Schedule Q – Construction In Progress


AUDITOR-CONTROLLER’S OFFICEPresented By: Echel Ybanez

Schedule Q Construction in Progress

Construction In Progress (CIP) is a major class of capital assets, which is used to track costs incurred to construct or develop a tangible or intangible capital asset before it is substantially ready to be placed into service.

Schedule Q is used for capital assets that are still under construction or/and that have been completed as of June 30.

There is no depreciation expense for CIP


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Schedule Q - Construction in Progress


1) 1) Total expense do not match the Actual project cost.

2) 2) Incomplete or missing information

3) 3) Missing supporting documents for closed projects

4) 4) Late submission

Common Issues and Errors:


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Cost to date in PS Asset Management Location


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Schedule Q -Construction in Progress

Supporting Document


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Schedule Q -Construction in

Progress

Supporting Document



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E-mail all of the following:

1. Signed copy of Schedule Q2. Supporting Documents3. Excel version of Schedule Q

Email all documents and files to [email protected]

Questions? Please submit them to:Echel Ybanez ([email protected], 951-955-3556)


Schedules L and S


AUDITOR-CONTROLLER’S OFFICEPresented By: Mary Yip

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Overview•Purpose of Year-end Schedules for:oDeferred Inflows of Resources oAdvances From Grantors and Third Parties

•Scenarios, Schedules & JE Walk Thru

•Commonly Ask Questions

•Checklist For Year-end


Purpose of Year-end Schedules

Deferred Inflows of Resources:Schedule L-1 and L-2Schedule S-12 Deferred Inflows of Resources

Advances From Grantors and Third Parties:Schedule L-3Schedule S-12 Advances


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Deferred Inflows of Resources (Schedule L-1 / L-2)

Time Restriction – 2 Types:

1. When a cash grant is received in advance and all of the eligible requirements have been met except for a time requirement. For example, the grant may be not used until next fiscal year. The grant should be recognized as a Deferred Inflows of Resources. (Schedule L-1)

2. When services are performed or taxes are levied, but revenue is not “available” to cover current year expenditures. (Governmental Funds only, Schedule L-2)


Deferred Inflows of Resources (Schedule L-2)


•60 Days - Taxes

•12 Mons - Expenditure-driven Grants

•90 Days - Other Revenue Streams

Revenue Availability Period

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Scenario for Schedule L-1On June 1, 2020, the Health Department received a$500,000 grant from the State for meeting all of therequirements eligible for the grant. The purpose ofthe grant is for supporting health related programactivities and can only be used in the next fiscalyear. The revenue was recorded at the time ofreceipt.

Debit CreditCash 101100 500,000Revenue 751600 500,000


Schedule L-1 Accrual/Adjusting Entry


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Schedule L-1 Reversal Entry


Schedule L-1


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Schedule S-12


Scenario for Schedule L-2The Department of Animal Services providedservices to the City of Banning on June 2, 2020. Theinvoice was generated in PeopleSoft billing modulefor $25,000. The revenue was recorded at the timewhen invoice was generated. The payment is notexpected by June 30 until October 2, 2020.


Debit CreditDFOG 118601 25,000Revenue 720000 25,000

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Schedule L-2 Adjusting Entry


ACARC



ACARC

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Schedule L-2


Schedule S-12


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Advances from Grantors and Third Parties (Schedule L-3)

When grants are made before the recipient has metall of the eligible requirements. If a governmentreceives $500 grant payment but has not yet met allof the requirements necessary to be eligible for thegrant, it technically owes that grant payment back tothe grantor until it meets the requirements. Therecipient should report Advances from Grantors as aliability until all of the requirements have been met.


Scenario for Schedule L-3


Sheriffs Dept. received a federal grant on June 01,2020 for $400,000. The requirements are theproceed needs to be spent by the end of fiscal year20/21 and it can only be used to fund activitiesrelated to off road vehicles. Only $75,000 was usedas of June 30, 2020. The revenue was recorded at thetime of receipt.

Debit CreditCash 101100 400,000Revenue 767140 400,000

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Schedule L-3 Adjusting Entry


ACARC



ACARC

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Schedule L-3


Schedule S-12


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Commonly Ask QuestionsAre all departments expected to submit Schedule S-12?Yes. If there’s no activity incurred during the year, indicate noactivity or zero balance.

What is the difference between Schedule L and S?Schedule L is used to report the year-end accrual or adjusting entry. Schedule S is used to report the year-to-date balance in G/L. Some accounts might have prior year balance carried forward.

Does ACO validate the account balances? Yes. We validate the account balances to the Year-end schedulesand supporting documents.

How much information should be included in the Description column?The information you provide should be sufficient or helpful foreverybody.


Checklist


Start Early! Reconcile, Reconcile, Reconcile Accounts Must Have a Credit Balance Confirm Data on Year-end Schedules:

- Is it accurate?- Does it tie to the general ledger? - Is all supporting documentation included?

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Schedule L and SSubmit Schedule L and S with Supporting Documents

via email to:

ACO [email protected]

Questions?Submit them by email to [email protected]


QUESTIONS ?If you have any general questions you can type them in the Chat box. Any department specific questions please email them to [email protected]


2020 YE Training Presentation - 10 30 am to 11 00 am · ò l ð l î ì î ì ó ^ Z µ o Y t } v...

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