[ACFR-contacts-news] SEFA Corrections for FY 2020 CRF Reimbursements

Tue Sep 7 09:35:18 PDT 2021

Good morning ACFR Contacts,

I hope everyone had a great Labor Day weekend. This email applies only to those that had CRF reimbursements for FY 2020 expenditures. If your agency did not have any, please disregard this email. If your agency did, please keep reading.

As the SARS team is working on compiling information related to the initial draft of the FY 2021 Schedule of Expenditures of Federal Awards (SEFA), which will be submitted to the Audits Division, if your agency has not yet submitted a complete SEFA correction to its SARS analyst related to the FY 2020 CRF reimbursements, please do so no later than COB on Monday, September 13. As you likely recall, last fall your agency was required to submit a SEFA correction for FY 2020 adding the CRF reimbursement because it was not in R*STARS. Since, the reimbursement actually occurred in FY 2021 and the SEFA Repository does not account for GAAP Expenditure Offsets (GL 3600), the FY 2020 reimbursements are included in your agency's SEFA Reports. Therefore, a correction is required. I had held off on sending this email earlier in the year as it was not as time-sensitive as the Month 13 entries or the agency disclosures.

In my ACFR Contacts email last fall noting that an FY 2020 SEFA Correction would be needed, I also stated that an FY 2021 SEFA Correction would be needed to remove those reimbursements, so you may have already submitted your correction forms. If so, no further action is needed, however, please confirm you've submitted complete SEFA corrections.

Fair warning, this email is a bit lengthy, but it is of critical importance as this covers agency accounting records, over which agencies have responsibility. This is also the reason SARS is not making SEFA corrections on behalf of agencies.

If needed, SEFA Corrections Forms can be obtained here: https://www.oregon.gov/das/Financial/Acctng/Documents/SEFA_Corrections_2021_Template.xlsx, or accessed using the "Disclosures" menu on the left side of the SARS homepage, and going to the bottom of the page.

To help illustrate what needs to be done, I've used records from Agency 634 - Parks and Recreation Department.

SEFA Expenditures

Here's what's on the FY 2021 SEFA Expenditures Repository Report for CRF:

[cid:image001.jpg at 01D7A253.6CEB3C60]
$628,015.81 represents the total CRF reimbursements Agency 634 received from DAS, covering both FY 2020 and FY 2021. The FY 2020 portion of those expenditures is $288,542.51, meaning the FY 2021 portion is $339,473.30.

On the SEFA Corrections Form for FY 2020, Agency 634 had the following for expenditures (note: a breakdown by GAAP fund is not necessary and the amounts total to $288,542.51):

[cid:image005.jpg at 01D7A253.6CEB3C60]

For the FY 2021 SEFA Corrections Form, Agency 634 would submit the following, effectively removing the FY 2020 expenditures:

[cid:image008.jpg at 01D7A253.6CEB3C60]

SEFA Revenues

Here's what Agency 634 has for its FY 2021 SEFA Revenues Repository Report:

[cid:image010.jpg at 01D7A253.6CEB3C60]

This is correct. No corrections are needed.

SEFA Transfers In

Here's what Agency 634 has for its FY 2021 SEFA Transfers In Repository Report:

[cid:image015.jpg at 01D7A253.6CEB3C60]

Since the inflow has already been recognized as a revenue (noted above) the agency will need to zero out this transfer in with a SEFA Correction, which will look like the following:

[cid:image016.jpg at 01D7A253.6CEB3C60]

SEFA Inflow/(Outflow) Report

While there are no corrections associated with the Inflow/(Outflow) Report, when one looks at this report, it illustrates the issues:

[cid:image018.jpg at 01D7A253.6CEB3C60]

The corrections listed above will remove the transfers in and reduce the total expenditures. The net effect will be a net inflow/(outflow) of $0.00, which is what is expected. There may be some agencies that received an E-Board allocation to fund certain programs with CRF, and unspent amounts may be reported as a net inflow/(outflow) other than $0.00. However, most agencies only received CRF reimbursements, therefore, a net inflow/(outflow) of $0.00 is what should occur for those agencies after all the corrections.

I hope your found this illustration using Agency 634 helpful. If there are 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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