2012 edition Community College Internal Auditors Fall Conference October 4 2012 Prepared by Heidi E White CPA VAVRINEK TRINE DAY amp CO LLP Key Components to the 2012 edition Who is Responsible for Updates and Changes ID: 693214
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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., LLPSlide2
Key Components to the 2012 edition
Who is Responsible for Updates and Changes?Why Did the BAM Change?What Was Changed?
What was AddedWhen is it Effective?Slide3
Responsibility for Updates & Changes
Education Code Section 70901The 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 59011Slide4
Responsibility for Updates & Changes
College Finance and Facilities Planning Division of the State Chancellor’s OfficeAssociation of Chief Business Officials BoardFiscal Standards and Accountability CommitteeDistrict PersonnelState Chancellor’s Office PersonnelSlide5
Why did the BAM Change?
THE LAST
UPDATE WAS
2000 !!!!!!!Slide6
Why did the BAM Change?
To Bring Clarity to Accounting StandardsProvide Consistent Direction to District PersonnelUpdate Prior Direction to Conform with Current Accounting Guidance
To Give the Fiscal Standards Committee a Project to focus onAll of the AboveSlide7
Overall revision concepts
Provide for a open format for more frequent change in the futureEach 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 questionsSlide8
What Was Changed?
Chapter 1 - IntroductionSpecific 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 requirementsRequirements of Accreditation Standard 3 were included
References to the California CCR’s includedSlide9
What Was Changed?
Chapter 2 – Fund/StructureReferences have been removed related to the General Fixed Asset and General Long Term Debt Account GroupsAdded 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 FundsSlide10
What Was Changed?
Chapter 3 – Revenue and Financing SourcesReferences 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 fluidNew guidance from GASB to recognize Bad Debt as a contra-revenue to student enrollment fees – NOT an operating expense Slide11
What Was Changed?
Chapter 3 – Revenue and Financing SourcesReferences the Student Fee Handbook that is included on the Chancellor’s Office websiteProvides 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-fundSlide12
What Was Changed?
Chapter 4 – Expenditures and Other OutgoFocus is on Activity Codes as well as Object CodesAdministrative and Support Activities references language for Faculty reased from instructionLanguage 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 RevenueSlide13
What Was Changed?
Chapter 4 – Expenditures and Other OutgoUpdated 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.Slide14
What Was Changed?
Chapter 5 – The Balance SheetProvides 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 Committed Assigned UnassignedSlide15
What Was Changed?
Chapter 5 – The Balance SheetProvides 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 Committed Assigned UnassignedSlide16
What has been added?
Chapter 6 – Governmental Account And Reporting - - All new information within the Budget and Accounting ManualSlide17
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 . . . . . Slide18
What has been added?
Chapter 6 – Describes the GASB Statement 35 reporting model. Management’s Discussions and AnalysisIntroduces the financial statements.Provides an objective and easily readable narrative of the financial activities, programs and services
Statement of Net AssetsStatement of Revenues, Expenses and Changes in Net AssetsStatement of Cash FlowsSlide19
What has been added?
Chapter 6 – Describes the GASB Statement 35 reporting model. Required Supplementary InformationReconciliations of Governmental (modified accrual) Statements to the Entity-Wide (full accrual) StatementsTypical consolidation and Conversion Entries for financial statement reportingSlide20
What has been added?
Chapter 7 – Special Accounting IssuesGuidance related to Cash AccountsGuidance related to Lease AccountingDesigned to be expanded when needed
What other issues might be included here?Slide21
What has been added?
Subject IndexGlosseryCommon Categorical Restricted Programs for both Federal and State Reference to pertinent Fiscal and Legal AdvisoriesNew reference to current guidance from the Governmental Accounting Standards BoardSlide22
When is the bam effective?
The Board of Governors approved the BAM July 9, 2012Effective 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? myarber@cccco.eduSlide23Slide24
Heidi White, CPA PartnerVavrinek, trine, day & co., llp
hwhite@vtdcpa.com(909) 466-4410