[ACFR-contacts-news] FW: ONE MORE ACTION NEEDED: CRF Entries

Wed Aug 11 12:06:22 PDT 2021

Hello ACFR Contacts,

Thank you for all your efforts on recording these entries. If you have entered, but not yet released the entries below reclassifying the CRF transfer in from DAS to federal revenue, and your agency is in balance with DAS for its D23 Fund 6200 on the Statewide Balance Report (https://www.oregon.gov/das/Financial/Acctng/Documents/Interagency%20transfers%20sorted%20by%20transfers%20out-exceptions.pdf), please release the entries.

If you are not in balance, please work with DAS Accounting to resolve the issue.

Thanks,

Rob

From: Acfr-contacts-news [mailto:acfr-contacts-news-bounces at omls.oregon.gov] On Behalf Of HAMILTON Robert W * DAS via Acfr-contacts-news
Sent: Tuesday, August 3, 2021 11:17 AM
To: acfr-contacts-news at omls.oregon.gov
Subject: [ACFR-contacts-news] ONE MORE ACTION NEEDED: CRF Entries
Importance: High

Hello ACFR Contacts,

Thank you for all your work on moving the expenditures reimbursed with CRF to the appropriate D23 funds, resulting in ending fund balance being zero, with current year inflows equaling current year outflows.

There is a final CRF entry that I'm going to need agencies to enter. Before doing so, there are two important items to note:

1.      If you have not moved the expenditures yet as outlined in my July 27 email below, please do so first!

2.      This email applies to both CRF reimbursements from DAS and CRF transfers from DAS pursuant to legislative action, including the Emergency Board

The entry is that all CRF inflows from DAS (D23 Fund 6200) must be reclassified from a transfer in from DAS to federal revenue. This means the inflow will be recorded to:

*        Governmental Funds - Comptroller Object 0300, Federal Revenue

*        Proprietary Funds - Comptroller Object 0370, Federal Grant Subsidy

Meanwhile, DAS will reduce the federal revenue on its side along with the corresponding special payment to state agency. For clarity, this only applies to FY 2021 inflows. Using Agency 919 as an example again, it would decrease Comptroller Object 1306, Transfer in from Dept of Admin Svcs by $6,562.31 and increase Comptroller Object 0300 by the same amount. On its end, DAS would reduce Comptroller Object 0300 and Comptroller Object 6156 Distribution to Real Estate Agency by $6,562.31. This would not apply to inflows received in FY 2021 but were related to an FY 2020 post-close adjustment. For Agency 919, that is the $8,507.26. This is the reason I am requesting that the entries relating to my July 27th email are completed first.

All entries will be made as GAAP Offsets, so as to not affect the budget. However, since this will involve G38 codes, it's important that there is agreement among DAS and the agencies so as to not cause issues with the statewide balance reports, which are currently in balance for CRF. Attached is what DAS has for the FY 2021 amounts that have been distributed to agencies, along with G38 codes. If you disagree, contact DAS Accounting immediately!

To the entries that will generally apply - please enter (leave on hold; do not release) them as soon as possible, no later than the end of this week. Once there is agreement for the SWB, DAS Accounting will coordinate with the receiving agency to release the entries:

*        Receiving agencies

o   TC 124, with Comptroller Object 1306 and GL 3060 for FY 2021 inflows (For Agency 919 this will be $6,562.31)

o   TC 113R, with Comptroller Object 0300 or 0370 (depend on fund type) and GL 3060 for the same amount from TC124.

*        DAS

o   TC 113, with Comptroller Object 0300 and GL 3060 for cumulative FY 2021 amount distributed to other agencies

o   TC 119, with Comptroller Object 6XXX (unique for agency) and GL 3060 for each FY 2021 amount distributed to agencies.

I understand there were some corrections to amounts originally distributed, which will require some Tcode changes to entries, but DAS Accounting is well aware of those, so please work with them on those exceptions.

After these entries are done, the following must be true:

1.      There are no transfers from DAS for CRF at other agencies and GAAP Funds

2.      Beginning and ending equity are unchanged

3.      The SWB for CRF remains in balance.

4.      For SEFA, because the SEFA Repository does not pick up GAAP Offsets, this will continue to show as a transfer in from DAS, which is appropriate.

Finally, if your agency received CRF pursuant to legislative action, and there are CRF amounts that are either (1) unspent and to be returned to DAS or (2) will be spent in FY 2022 in accordance with additional legislative action, please contact me.

Thanks everyone. I'm happy to say that CRF accounting is just about behind us. Thanks for your patience as we needed to work through a variety of things. My intent is to limit CRF post-close adjustments as much as possible so as to not cause issues in FY 2022.

If there are questions, please feel free to contact me.

Rob

From: Acfr-contacts-news [mailto:acfr-contacts-news-bounces at omls.oregon.gov] On Behalf Of HAMILTON Robert W * DAS via Acfr-contacts-news
Sent: Wednesday, July 28, 2021 11:07 AM
To: acfr-contacts-news at omls.oregon.gov<mailto:acfr-contacts-news at omls.oregon.gov>
Subject: [ACFR-contacts-news] FW: ACTION NEEDED: CRF Entries
Importance: High

Good morning everyone,

I just realized I missed attaching the November 3 email that is referenced in the email below. Sorry about that. It's attached now.

Rob

From: Acfr-contacts-news [mailto:acfr-contacts-news-bounces at omls.oregon.gov] On Behalf Of HAMILTON Robert W * DAS via Acfr-contacts-news
Sent: Tuesday, July 27, 2021 3:48 PM
To: acfr-contacts-news at omls.oregon.gov<mailto:acfr-contacts-news at omls.oregon.gov>
Subject: [ACFR-contacts-news] ACTION NEEDED: CRF Entries
Importance: High

Hello ACFR Contacts,

As everyone is working through year-end, there may remain some needed Coronavirus Relief Fund (CRF) entries for those agencies that had a post-close adjustment related to the CRF reimbursement from DAS for FY 2020 expenditures.

If your agency did not receive a post-close adjustment for this, please disregard the rest of this message. If your agency did please keep reading.

Thanks to Caty Karayel at Real Estate Agency (Agency 919) for the ability to use their data as an example, which is as of the Close of Month 12. Here are the pertinent issues from Agency 919:

*        D23 Fund created to account for CRF: 4330

*        GAAP Fund that reports the above D23 Fund: 1104

*        Treasury Fund used by above D23 Fund: 0401

*        D23 Fund that had the original expenditures: 4550

*        GAAP Fund that reports the above D23 Fund: 1104

*        Treasury Fund used by above D23 Fund: 0401

*        Overall CRF Reimbursement for costs incurred from March 1, 2020 through December 31, 2020 - $15,069.57

*        Type of costs that were reimbursed with CRF - Paid sick and paid family and medical leave, so GAAP Object (D08) 3000

*        FY 2020 CRF Post-Close Adjustment, representing the FY 2020 costs that were reimbursed with CRF and recognized in the FY 2020 ACFR - $8,507.26

*        FY 2021 expenses reimbursed with CRF - $6,562.31. This is currently reported in D23 Fund 4330 as Cash in Treasury (GL 0070)

If not yet done, below are the items I need the applicable agencies to complete as soon as possible. Please do them in order:

1.      At a GAAP Fund level, agencies must move any and all expenses for which they received CRF reimbursements into the CRF D23 fund they established. Because cash can be moved after June 30 if the affected D23 Funds are in the same Treasury Fund, Agency, and GAAP Fund, it is possible, and perhaps likely, that the cash can be moved since past direction from me has been for agencies to report CRF activity in the same GAAP Fund as the original expenditure, so it should depend on whether the same Treasury Fund is used. If cash can be moved, do so with Tcode 415 for the CRF D23 Fund and Tcode 416 for the non-CRF D23 Fund. The end result will be there is no cash in the CRF D23 Fund. According to the DAFR 6620 (D23 Within GAAP Fund - GL Account), here's what's things looked like for Agency 919 and their D23 Fund 4330 at the Close of Month 12:

[cid:image001.png at 01D77972.0741E2B0]

NOTE: If the movement of cash does cross GAAP Funds or Treasury Funds, therefore not meeting the exception to the prohibition against backdating balanced transfers, your agency will need to make the Tcode 415/416 entries with a July effective date (FY 2022) and then accrue the activity in FY 2021 with Tcodes 925/926. For more information on this, please consult your SFMS Analyst. SFMS recommends entering the TC 416 entry first to help avoid any insufficient cash errors when moving funds within the same Treasury Fund.

      This is what D23 Fund 4330 looks like in the DAFR 6610 (D23 Fund Within GAAP Fund - Comp obj) at the Close of Month 12:

[cid:image002.png at 01D77975.08E997E0]

This means that Agency 919 should enter a Tcode 415 in D23 Fund 4330 for $6,562.31, with Compt Object 3111. A companion entry of Tcode 416 should be entered in D23 Fund 4550, also for $6,562.31 and Compt Object 3111. After these two Tcode entries, GL 0070 will be $0, GL 3500 will be $15,069.57, Compt Object 3111 will be $15,069.57, and the net change in D23 Fund 4330 (the blue bar above, currently $1,944.95) will be negative $8,507.26. Note: If you look at Agency 919's information on IR Studio today, the agency has already made this entry.

2.      Earlier in the year your SARS analyst gave your agency a post-close adjustment for the FY 2020 CRF reimbursement of agency costs that came in via a transfer from DAS. That post-close entry would have debited transfer in from DAS and credited equity (fund balance or net position, depending upon fund type). In the November 3, 2020 ACFR Contacts News email titled "CRF reimbursement of state agency requests (attached), I directed agencies to move the expenditures to be reimbursed to the newly established CRF D23 Fund. Given the timing, this would have occurred in FY 2021. Further, we did not send a post-close to move expenditures within the GAAP Fund since, at the GAAP Fund level, the amount of the expenditures did not change. However, in order for ending fund balance of the D23 Fund reporting CRF activity to be zero, two additional post-close entries are needed: (1) Use of Tcode 114 in the CRF D23 Fund to remove the expenditure that was recognized in the FY 2020 ACFR and moved over per my direction; and (2) Use of Tcode 114R in the non-CRF D23 Fund to not understate the expenditures in that fund. To be clear, the direction I gave in my November 3, 2020 email was necessary, and remains correct. Now we need to finish things off.

For Agency 919, this is what would occur. (1) Tcode 114 in D23 Fund 4330 for $8,507.26, using Compt Object 3111. (2) Tcode 114R in D23 Fund 4550 also for $8,507.26, using Compt Object 3111. The end result in the Current Year column from the snippet above would be:

[cid:image003.png at 01D782E8.09FA2150]

If your agency has already made these entries, great! Nothing further is needed. However, if these entries have not been made, please do so as soon as possible. Again, the end result in the CRF D23 Fund is no cash and no ending fund balance unless the exception applies as addressed in the November 3 email.

If you have questions, please reach out to your SARS analyst.

Rob

Robert W. Hamilton, CPA
Statewide Accounting and Reporting Services Manager
Chief Financial Office
Department of Administrative Services
Cell: (971) 719-3031
http://www.oregon.gov/DAS/financial/acctng

Data Classification: Level 1 - Published

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