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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">Hello CAFR Contacts:<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">During the GASB 65 presentation at the year-end training we did not go into much detail about how to record the prepaid debt insurance costs. The guidance stated that prepaid
insurance costs should be reported as an asset rather than as an expense in the period incurred like other debt issuance costs. For DAS issued debt, there has not been any prepaid debt insurance purchased for the last five years, however for debt issued outside
of DAS and/or for prepaid insurance already included with deferred charges as the result of older debt issues, a new compt. object has been established. In addition, two Tcodes were modified to allow the proper reclassification and amortization entries.
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif""><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">The new D10 is: 7468 Amortization of Prepaid Debt Insurance. This new compt. object has been added to Tcodes 514 for recording the initial balance for a new debt issuance and
Tcode 520 to make year-end amortization entries. In this year of implementation, Tcode 474/474R will move the appropriate balance from GL 0603 Deferred Charges to GL 0602 Prepaid Expense.
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">If you have any questions, please contact your SARS analyst.
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">Thank you,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif""><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">Rob<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif""><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:8.0pt;font-family:"Verdana","sans-serif";color:#353535">Robert W. Hamilton, CPA<o:p></o:p></span></b></p>
<p class="MsoNormal"><b><span style="font-size:8.0pt;font-family:"Verdana","sans-serif";color:#353535">Statewide Accounting and Reporting Services Manager</span></b><b><span style="font-family:"Verdana","sans-serif";color:#353535"><o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Verdana","sans-serif";color:#353535">Chief Financial Office</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Verdana","sans-serif";color:#353535">Department of Administrative Services</span><span style="font-size:8.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Verdana","sans-serif"">Phone: (503) 373-0299<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Verdana","sans-serif""><a href="http://oregon.gov/DAS/SCD/SARS"><span style="color:blue">http://oregon.gov/DAS/CFO/SARS</span></a></span><span style="font-size:8.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt"> <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Verdana","sans-serif";color:#353535">Data Classification: Level 1 - Published</span><span style="font-size:8.0pt"><o:p></o:p></span></p>
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