Community College Internal Auditor’s Fall Conference October 4, 2012 Prepared by Heidi E. White,...
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COMMUNITY COLLEGE’S BUDGET AND ACCOUNTING MANUAL 2012 EDITION Community College Internal Auditor’s Fall Conference October 4, 2012 Prepared by Heidi E. White, CPA VAVRINEK, TRINE, DAY & CO., LLP
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Transcript of Community College Internal Auditor’s Fall Conference October 4, 2012 Prepared by Heidi E. White,...
COMMUNITY COLLEGE’SBUDGET AND ACCOUNTING MANUAL
2012 EDITION
Community College Internal Auditor’s Fall Conference
October 4, 2012
Prepared by Heidi E. White, CPAVAVRINEK, TRINE, DAY & CO., LLP
KEY COMPONENTS TO THE 2012 EDITION
Who is Responsible for Updates and Changes?
Why Did the BAM Change?
What Was Changed?
What was Added
When is it Effective?
RESPONSIBILITY FOR UPDATES & CHANGES
Education Code Section 70901 The Board of Governors of the California
Community Colleges shall provide leadership and direction in the continuing development of the California Community Colleges . . . .
CA Code of Regulations, Title 5 Section 59011
RESPONSIBILITY FOR UPDATES & CHANGES
College Finance and Facilities Planning Division of the State Chancellor’s Office
Association of Chief Business Officials Board Fiscal Standards and Accountability
Committee District Personnel State Chancellor’s Office Personnel
WHY DID THE BAM CHANGE?
THE LAST
UPDATE WAS
2000 !!!!!!!
WHY DID THE BAM CHANGE?
A. To Bring Clarity to Accounting Standards
B. Provide Consistent Direction to District Personnel
C. Update Prior Direction to Conform with Current Accounting Guidance
D. To Give the Fiscal Standards Committee a Project to focus on
E. All of the Above
OVERALL REVISION CONCEPTS
Provide for a open format for more frequent change in the future Each Chapter is a separate document
which will allow changes to specific areas rather than wait for another 12 years for an update
Provide reference materials to allow District staff to research issues and questions
WHAT WAS CHANGED?
Chapter 1 - Introduction Specific websites for GASB, OMB and the
Chancellor’s Office Guidance was included as a hyperlink to allow access for more review and research by District staff.
Included budgeting and other dates that are important in the financial reporting requirements
Requirements of Accreditation Standard 3 were included
References to the California CCR’s included
WHAT WAS CHANGED?
Chapter 2 – Fund/Structure References have been removed related to
the General Fixed Asset and General Long Term Debt Account Groups
Added additional Funds in the Capital Project Fund Type to reflect the General Obligation Bond Fund (Fund 43) and Other Capital Project Funds (Fund 4X)
Provides references to possible Unrelated Business Income within the Enterprise Funds
WHAT WAS CHANGED?
Chapter 3 – Revenue and Financing Sources References to OMB Circular A-21 “cost
Principles for Education Institutions” Website reference for the Catalog of
Federal Domestic Assistance (CFDA) numbers
Provides some guidance on the Redevelopment Funds - - - information is still fluid
New guidance from GASB to recognize Bad Debt as a contra-revenue to student enrollment fees – NOT an operating expense
WHAT WAS CHANGED?
Chapter 3 – Revenue and Financing Sources References the Student Fee Handbook that
is included on the Chancellor’s Office website
Provides guidance for the Student Parking and Transportation Fees to be accounted for within the Restricted General sub-fund.
Provides guidance for the Prop 20 Lottery Funds to be included within the Restricted General sub-fund
WHAT WAS CHANGED?
Chapter 4 – Expenditures and Other Outgo Focus is on Activity Codes as well as Object
Codes Administrative and Support Activities
references language for Faculty reased from instruction
Language for Supplies and Operating expenses was clarified for Software and licensing agreements as necessary
Mirrors reference for bad debt to be included as a Contra Revenue
WHAT WAS CHANGED?
Chapter 4 – Expenditures and Other Outgo Updated Language for Capital Outlay
expenditures to conform to current GASB guidance related to non print media for Libraries and intangible assets such as software and licensing.
Updated threshold for an inventory for equipment purchases.
WHAT WAS CHANGED?
Chapter 5 – The Balance Sheet Provides greater guidance and information
in defining Fund Balance Classifications in accordance with GASB Statement 54 “Fund Balance Reporting and Governmental Fund Type Definition”. This pronouncement requires fund balance designations for external reporting.
NonSpendable Restricted CommittedAssigned Unassigned
WHAT WAS CHANGED?
Chapter 5 – The Balance Sheet Provides greater guidance and information
in defining Fund Balance Classifications in accordance with GASB Statement 54 “Fund Balance Reporting and Governmental Fund Type Definition”. This pronouncement requires fund balance designations for external reporting.
NonSpendable Restricted CommittedAssigned Unassigned
WHAT HAS BEEN ADDED?
Chapter 6 – Governmental Account And Reporting - - All new information within the Budget and Accounting Manual
WHAT HAS BEEN ADDED?
Chapter 6 – Describes the GASB Statement 35 reporting model.
By placing this in the Budget and Accounting Manual, the emphasis is that the external reporting of the Community College Districts under GASB Statement 35 is the responsibility of the District not the external auditors.
The specific guidance includes discussions related to . . . . .
WHAT HAS BEEN ADDED?
Chapter 6 – Describes the GASB Statement 35 reporting model.
Management’s Discussions and Analysis Introduces the financial statements. Provides an objective and easily readable
narrative of the financial activities, programs and services
Statement of Net Assets Statement of Revenues, Expenses and
Changes in Net Assets Statement of Cash Flows
WHAT HAS BEEN ADDED?
Chapter 6 – Describes the GASB Statement 35 reporting model.
Required Supplementary Information Reconciliations of Governmental
(modified accrual) Statements to the Entity-Wide (full accrual) Statements
Typical consolidation and Conversion Entries for financial statement reporting
WHAT HAS BEEN ADDED?
Chapter 7 – Special Accounting Issues Guidance related to Cash Accounts Guidance related to Lease Accounting Designed to be expanded when
needed
What other issues might be included here?
WHAT HAS BEEN ADDED?
Subject Index Glossery Common Categorical Restricted
Programs for both Federal and State
Reference to pertinent Fiscal and Legal Advisories
New reference to current guidance from the Governmental Accounting Standards Board
WHEN IS THE BAM EFFECTIVE?
The Board of Governors approved the BAM July 9, 2012
Effective date Fiscal year 2011/12
Linkhttp://extranet.cccco.edu/portals/1/CFFP/Fiscal_Services/Standards/BAM/bam2012ed/complete BAM/Budget_and_Accounting_Manual_2012_Edition.pdf
Questions? [email protected]
HEIDI WHITE, CPA PARTNER
VAVRINEK, TRINE, DAY & CO., LLP
(909) 466-4410
