[ACFR-contacts-news] ACTION NEEDED: CRF Entries

Tue Jul 27 15:47:40 PDT 2021

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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