Post Award Accounting at Caltech New Grant Manager Training October 28, 2004.
GA01 Grant Accounting Complete
Transcript of GA01 Grant Accounting Complete
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Grant AccountingTraining Course
State of North Carolina
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North Carolina Accounting System
Grant Accounting
Training Course
Robert L. Powell
State Controller October 28, 2002
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This training was prepared by the Financial Systems Division of theOffice of the State Controller.
ASSISTANT STATE CONTROLLERZeke Partin
NCAS TECHNICAL APPLICATIONSDeborah Smith, Manager
NCAS INFORMATION ACCESSKelly Thomas, Manager
NCAS MODELJim Macaulay, Manager
NCAS SUPPORT SERVICES Annie Thompson, Manager
(919) 875 - HELP
TRAINING AND DOCUMENTATIONWendy AumanSue Crittenden
Sue Rader Terry Senter
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GA: GA01 Grant Accounting
Table of Contents
Office of the State Controller i NCAS Training.2 - October 28, 2002
TABLE OF CONTENTS
Overview & Objectives .................................................................................................. 1
Grant Accounting Business Process Flow .................................................................... 2
Unlocking the Chart of Accounts................................................................................... 3
Account Type/Subtype ........................................................................................... ............................ 5
Statewide Object ................................................................................................................................ 5
The Process ............................................................................................................... 10
Step 1: Record the Grant Award ..................................................................................................... 10
Step 2: Record the Annual Budget.................................................................................................. 14
Step 3: Record the Life-to-Date Budget .......................................................................................... 16
Step 4: Record the Certified and Authorized Budget ...................................................................... 18
X/PTR Reports ............................................................................................................ 19
Prior Year Grant Rollover............................................................................................ 20
The Process (coninued) .............................................................................................. 23
Step 5: Record the Expenditures .................................................................................................... 23
Step 6: Record the Cash Requisition .............................................................................................. 24
Step 7: Record the Receipt of Federal Funds................................................................................. 26
Step 8: Simultaneous Cash Transferal with the Recording of the Receipt of Federal Funds ......... 30
Step 8a: Record the Payable of Federal Funds and the Receivable.............. .............. ............ ............ ......30Step 8a: (continued) Record the Cash Transfer................. .............. ............. ............ .............. .............. .....33Step 8a: (continued) Record the Cash Receipt ............. ............. ............. .............. ............. ............ ...........34Step 8b: Determine if Cash will be Transferred Simultaneously with the Recording of the
Receipt of Federal Funds.............................................................................................................36Step 8B: (continued) Record the Cash Receipt.......... ............ .............. ............. ............ ............. ................37
Reports ....................................................................................................................... 38
BD-701F Report ............................................................................................................................... 38
Federal Cost Report......................................................................................................................... 38
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GA: GA01 Grant Accounting
Overview
Welcome to Grant Accounting. This course covers the business processflow and outlines the accounting processes employed for federal grants.
Audience
Grant Managers (not for agencies that utilize the Cost Allocation Module)
Length
2 hours
Objectives
Upon successful completion of this course, participants will have knowl-edge of:
• Business process overview
• Chart of accounts structure
• Budget authorization
• Budgetary account structure
• NCAS accounting procedures
• Life-to-date grant accounting
• Information access (reports)
Grant Accounting
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GA: GA01 Grant Accounting
1. Record the grant award in the federal budget code in the NorthCarolina Accounting System (NCAS).
2. Record the annual budget in the federal budget code.
3. Record the life-to-date budget in the operating budget code.
4. Record the certified and authorized budgets in the operating budgetcode.
Make adjustments for any remaining balances to reflect theremaining certified budget amount.
5. Record the expenditures in the operating budget code.
6. Record the cash requisition in the operating budget code.
7. Record the federal fund drawdown of cash in the federal budgetcode.
8. Determine if cash will be transferred and the receipt of federal fundswill be recorded simultaneously.
8a. If no, perform the following steps:
- Set up the payable in the federal budget code and receivablein the operating budget code.
- Record the transfer of cash from the federal budget code.
- Record the receipt of cash in the operating budget code.
8b. If yes, perform the following steps:
- Record the transfer of cash from the federal budget code.
- Record the receipt of cash in the operating budget code.
All agencies are required to comply with the policies and procedures ofthis grant model. This will ensure each agency is prepared to meet thestatewide reporting requirements.
Grant AccountingBusiness
Process Flow
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GA: GA01 Grant Accounting
The company acts as an umbrella under which the federal budget codeand the operating budget operate in grant transactions.
In other words, the company acts as the parent company, while the federal
budget code and operating budget code act as its subsidiaries.
The GL company defines the GAAP reporting fund. The four-characterGL company number is comprised of two parts:
XXX = Financial Reporting UnitF = GAAP Fund Type
• The financial reporting unit number is a three-digit identifier.
— The first and second digits are assigned by the OSC.— The third digit allows large agencies to further define their
financial reporting entities.
• The last position of the GL company identifies the GAAP fund type.
— Federal grants generally operate within the following fund
types:
1 = General Fund
2 = Special Revenue Fund
4 = Capital Projects Fund
Unlocking the
Chart of Accounts
COMPANY
FederalFund
OperatingFund
GL Company
X X X F
FinancialReporting Unit
GAAP Fund Type
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GA: GA01 Grant Accounting
In grant accounting, the GL account is used to define the following:
• Grant Awards
• Cash Accounts
• Budgets
• Grant Receipts
• Grant Expenditures
The account is comprised of four parts.
• The account type/subtype defines the category of account (e.g.,asset/current) and the financial and budgetary requirements.
• The statewide object is associated with the account type. It furtherdefines the account (e.g., cash, investments, receivables).
• The agency defined portion provides an additional opportunity foragencies to individually track and record grant programs/projects.
• The grant fiscal year segment records the federal fiscal year in whichthe grant is received.
— The grant fiscal year is mandatory in the federal budget codeand optional in the operating budget code.
GL Account
AccountType/
Subtype
T T 0 A0 0 0 AA Y Y
StatewideObject
AgencyDefined
GrantFiscal
Year
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GA: GA01 Grant Accounting
Account Type/Subtype
The following table lists the account types and their associated subtypes.
Statewide Object
For certain accounts, the fifth and sixth digits are agency-defined digitswhich are used to identify the grant.
• These digits must be used consistently between the operating budget
code and the federal budget code.
— The same number should identify the grant in both budgetcodes.
• The budget must be certified to these six digits of the account.
• If an agency has over 100 grants, an alphanumeric combination isused to maintain the six-digit budget certification level.
Type Description BAL Subtype Description
1 Assets DR 1
2
Current
Non-current
2 Liabilities CR 12
CurrentNon-current
3 Reserves & Fund Equity CR 1234
Contributed CapitalFund BalanceRetained EarningsInvestments in Property
4 Actual Revenues CR 3 Actual
5 Expenditures/Expenses DR 39
ActualInventory Consumption
6 Estimated Revenues DR 358
Authorized Estimated RevenuesLife-to-Date Estimated RevenuesCertified Estimated Revenues
7 Budgeted Expenditure/Espense CR 3589
Authorized Budget RequirementsLife-to-Date Budgeted RequirementsCertified Budgeted RequirementsInventory Consumption
8 Purchase Order Encumbrance DR 39
ActualInventory Consumption
9 Reserved for Suspense Accts Zero
0 AP Encumbrance DR 39
ActualInventory Consumption
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GA: GA01 Grant Accounting
The following accounts represent the federal funds revenues and the federalfunds transfers. They are used in both the federal fund and the operating fund.
7888AA XXX FY Certified Budgeted Federal Fund Transfer/Receipts
7388AA XXX FY Authorized Budgeted Federal Fund Transfer/Receipts
7588AA XXX FY Life-to-Date Estimated Federal Fund Transfer/Receipts
5388AA XXX FY Actual Federal Fund Transfer/Receipts
6521AA XXX FY Life-to-Date Estimated Federal Funds Receipts
6821AA XXX FY Certified Estimated Federal Funds Receipts
6321AA XXX FY Authorized Estimated Federal Funds Receipt
4321AA XXX FY Actual Estimated Federal Funds Receipt
Special accounts exist to set up the grant account. An account also exists tooffset the grant entries
659310 XXX FY Grant Award
659320 Grant Award Offset
KeyAccounts GrantOffset
Federal Fund Transfer/Receipts
Estimated Federal Fund Receipts
GrantAward
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GA: GA01 Grant Accounting
The following are characteristics of the GL center .
• It provides detail relating to the funding source and the program type.
• It provides the separation of the federal budget code and the operatingbudget code.
• The center is associated with the budget code and the performancebudget.
• It provides the association to the Catalog of Federal Domestic Assis-tance number (CFDA).
The GL center is comprised of two parts.
• The budget fund is a purpose/program number mandated by theOffice of State Budget and Management (OSBM).
• The cost center allows the agency to further define responsibilityareas or alternate reporting needs.
— The federal budget code requires the budget fund only.
— The operating budget code requires the budget fund and
leaves the cost center to the discretion of the agency.
The Company Fund Table is used to associate each company, fund num-ber (Positions 1-4 of center), and fiscal year with the following:
Budget codeProgram budget code (or PPPP if unknown)Governmental Accounting Standards Board (GASB) number Old department/division number
GL Center
F F F CF C C CC CC
Fund Cost Center
C
Company Fund Table
Department/Division Number
•• Company AAAA
•• Company/fund/fiscal year combination
• Description field
GASB Number
Program Budget CodeBudget Code
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GA: GA01 Grant Accounting
The fund must be recorded by the OSC in the Company Fund Table inorder to be used by agencies.
The information for each company contained in the Company Fund Tablecan only be referenced in the Master Table List report ( C-U-GL-MAS-TER-TABLE-LIST) in the GLPUBLIC Library in Information Expert (IE).
The Company Center Table is used to associate a center to a Catalog ofFederal Domestic Assistance (CFDA) number. In addition to the CFDAnumber, this table also records the CFDA description and federal partici-pation rate.
Federal and operating budget codes lend support to the Company CenterTable.
For the purposes of this course, the following fictitious grant will be trackedto demonstrate the grant accounting business process flow.
The Division of Aging receives a $100,000 grant from Eldercare CoalitionIII.
• The grant is received in the federal fiscal year ending September2003.
• The Division of Aging charges directly to the FRC29-Eldercare Coali-tion III.
• Participation rates for costs are 75% federally funded and 25% statefunded.
• The Division of Aging receives a federal allotment of $80,000 from thefederal government during the current fiscal year.
• The Division of Aging uses the General Fund as the operating fund.
Company/center combination
Grant reporting information
CFDA Number
• Associated with center
Company Center
Company Center Table
SCENARIO
• $100,00 grant
• FRC29-Eldercare Coalition III
• 75% federally funded25% state funded
• Federal Allotment = $80,000
• Operating Fund = General Fund
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GA: GA01 Grant Accounting
Three company/center combinations are used for this grant example.
• Company 2101 represents the Division of Aging’s General Fund com-pany.
— It is used with both the operating centers and the federal cen-ters.
• In this example, the following structure defines the center:
— Positions 1-4: Budget Fund— Positions 5-8: Responsibility Area— Positions 9-10: Specific Grant
• The company/center combination is associated with values on theCompany Fund Table and the Company Center Table.
— The first digit of the budget code, 1, indicates the use of thegeneral fund as the operating fund.
Company Center
Divisionof Aging
General
2 1 0 1 1 1 0 5 3 0 0 2 91
StateAdministration
Health &Caregiver
Support
EldercareCoalition
III
Company Center
TableCompany Fund
Table
CFDA Number
9 3 0 4 8
Budget Code
1 4 4 1 1
1
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GA: GA01 Grant Accounting
As in the previous company/center combination, the second company/center combination is also associated with values on the Company Fundand Company Center tables.
The Company Center Table defines the CFDA Number.
• The Company Fund Table defines the General Fund Budget Code.
The third company/center is associated with the federal budget code.
• The first digit of the budget code, 3, indicates the budget code is thefederal budget code.
STEP 1: Record the Grant Award
The first step in the business process flow is to record the grant award of$100,000 in the federal budget code.
• $60,000 will be transferred to cover expenditures in center1210710129. $40,000 will be transferred to cover expenditures incenter 1110530029.
Company Center
Divisionof Aging
General
2 1 0 1 2 1 0 7 1 0 1 2 91
CommunityBased Services
S/W Plan& Econ.
Dev. Comm.
EldercareCoalition
III
Company Center
Table
Company Fund
Table
CFDA Number
9 3 0 4 8
Budget Code
1 4 4 1 1
2
Company Center
Divisionof Aging
General
2 1 0 1 1 2 93
EldercareCoalition Project
Care III
Company Center
Table
Company Fund
Table
CFDA Number
9 3 0 4 8
Budget Code
3 4 4 1 1
3
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GA: GA01 Grant Accounting
• The grant is received in the federal fiscal year ending September2003.
• It is recorded in the federal center using the Journal Voucher screensin the Budgetary Control (BC) module of the NCAS.
• The center, 3129, is associated with the federal budget code 34411 on
the Company Fund table.
The document ID is XX15ZZZZZZ where:
XX = Agency Identification Number
15 = Life-to-Date Entry
ZZZZZZ = Agency Defined
The document ID is a unique code identifying each BC document.Because two documents cannot have the same ID, keep a log of documentIDs that you have used.
The third and fourth digits of the document ID are the transaction type.The following are possible transaction types for your grant documents:
NOTE: Keep a record of all your document ID numbers!
1X
(Budgetary Entries)
1112
1415
Certified Budget Entry Authorized Budget Entry
Internal Budget EntryLife-to-Date Entry
2X(Cash Accounting Entries)
21222527
Cash Receipts EntryCash Requisition EntryCash Transfer-In EntryCash Transfer-Out Entry
3X(Other Adjusting Entries)
3133
Correcting/Adjusting EntryThirteenth Month Accrual Entry
MSAS BC JOURNAL VOUCHER ENTRY 211
NEXT FUNCTION: ________ ACTION: ____ =========================================================
ENTER KEY INFORMATION
OPTION: _ DOCUMENT ID:APPLICATION AREA: __
DATE FORMAT: MDY
OPTIONS: (A)DD OR (C)ONTINUE
XX 15 ZZZZZZ
AgencyNumber
Life-to-Date Entry
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GA: GA01 Grant Accounting
The entry is a one-sided entry. A one-sided entry, or data type 1, requiresyou to key one side of the entry. An accounting rule is used to generatethe offsetting entry.
• For a data type 1, the document control total is equal to the sum of theabsolute value of all credits or the sum of the absolute value of alldebits.
• A debit is recorded for $60,000 to the Grant Award for Eldercare Coa-lition III distribution (2101/439310210 03/3129).
— The three italicized digits of the account are agency definedpositions. This is an optional requirement; zeroes must be
used in lieu of the detail.
— In this example, the italicized digits are used to identify theoperating fund to which the grant money will transfer.
* The remaining $40,000 will be recorded to account439310110 03, signifying that $40,000 will transfer to aseparate operating center.
— In the federal center, digits ten and eleven of the account areused to identify the grant’s federal fiscal year.
MSAS BC JOURNAL VOUCHER ENTRY 212
NEXT FUNCTION: ________ ACTION: ____
===============================================================
APP:
DOCUMENT ID:
EFFECTIVE DATE __ __ __ TOTAL COMPANY ID ____ DATA TYPE CODE _ LEVEL OF FUNDS CHK _ UPDATE AFF _ SOURCE GEN CODE _ CLOSED PRD ADJ _ PROJECT COMPANY ____
One-sided entry
OPTIONS: (E)ND, (H)OLD, (K)ILL, OR NEXT LINE ____
1
MSA BC JOURNAL VOUCHER ENTRY 213
NEXT FUNCTION: ________ ACTION: ____
====================== ========
APP:
DOCUMENT ID: TOTAL:
LINE ____ TRANSACTION CODE *
COMP/ACCT/CNTR 2101 439310 210 03 3129 DEBIT/CREDIT AMOUNT 60,000.00 DEBIT/CREDIT CODE Dr DEBIT/CREDIT AMOUNTDEBIT/CREDIT CODEDESCRIPTION ______________________________
____________ _______ ___
GAPROJECT COMP/CODE ____ ______ ACCOUNTING RULE
EFFECTIVE DATE __________ SOURCE CODE __________ LEVEL OF FUNDS CHK _ UPDATE AFF _
OPTIONS: (E)ND, (H)OLD, (K)ILL, OR NEXT LINE ____
Grant Award for EldercareCoalition III
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GA: GA01 Grant Accounting
• Accounting rule GA changes the first two digits of the account from a43 to a 65 in the General Ledger. It also generates the offsettingcredit for $60,000 to the Grant Award Offset distribution (2101/659320/3129).
• A debit is recorded for $40,000 to the Grant Award for Eldercare Coa-lition III distribution (2101/439310110 03/3129).
— The three italicized digits of the account are agency definedpositions. This is an optional requirement; zeroes must beused in lieu of the detail.
— In this example, the italicized digits are used to identify theoperating fund to which the grant money will transfer.
— In the federal fund, digits ten and eleven of the account are
used to identify the grant’s federal fiscal year.
• Accounting rule GA changes the first two digits of the account from a43 to a 65 in the General Ledger. It also generates the offsettingcredit for $40,000 to the Grant Award Offset distribution (2101/659320/3129).
MSA BC JOURNAL VOUCHER ENTRY 213
NEXT FUNCTION: ________ ACTION: ____
====================== ========
APP:
DOCUMENT ID: TOTAL:
LINE ____ TRANSACTION CODE *
COMP/ACCT/CNTR 2101 439310 110 01 3129 DEBIT/CREDIT AMOUNT 40,000.00 DEBIT/CREDIT CODE Dr DEBIT/CREDIT AMOUNTDEBIT/CREDIT CODEDESCRIPTION ______________________________
____________ _______ ___
GAPROJECT COMP/CODE ____ ______ ACCOUNTING RULE
EFFECTIVE DATE __________ SOURCE CODE __________ LEVEL OF FUNDS CHK _ UPDATE AFF _
OPTIONS: (E)ND, (H)OLD, (K)ILL, OR NEXT LINE ____
Grant Award for EldercareCoalition III
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GA: GA01 Grant Accounting
NET EFFECT ON THE GENERAL LEDGER
Automatic Entry Generated by an Accounting Rule
The net effect to the General Ledger is as follows:
If the Grant Award account is invalid or incorrect, the transaction will post
to suspense. See Procedure 11 for more information on correcting sus-
pense entries generated by the grant award entry.
STEP 2: Record the Annual Budget
The second step in the business process flow is to record the annualbudget in the federal budget code.
• The budget for the current state fiscal year is $80,000 for the esti-mated federal receipts.
• This entry records the authorized budget.
• This entry is recorded in the BC module of the NCAS using the Bud-
get Create screens.
KeyedEntry
PostedEntry
Center Description Amount
DR 439310210 03 659310210 03 3129 Grant Award for Eldercare Coalition III $ 60,000
DR 439310110 03 659310110 03 3129 Grant Award for Eldercare Coalition III $ 40,000
CR 659320 3129 Grant Award Offset $100,000
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GA: GA01 Grant Accounting
The document ID is XX12ZZZZZZ where:
XX = Agency Identification Number
12 = Authorized Budget Entry
ZZZZZZ = Agency Defined
• The entry is a two-sided, balanced entry. A two-sided entry, or datatype 2, requires you to key both sides of the entry.
• A debit for $80,000 is recorded to the Authorized Estimated FederalFunds Receipts distribution (2101/432129000 03/3129).
— A default accounting rule changes the first digit of theaccount from a 4 to a 6 in the General Ledger.
• A credit for $80,000 is recorded to the Authorized Federal FundsTransfer/Receipts distribution (2101/538829 XXX 03/3129).
2101/538829210 03/3129 $50,000
2101/538829110 03/3129 $30,000
— A default accounting rule changes the first digit of theaccount from a 5 to a 7 in the General Ledger.
In this example, the italicized digits identify the operating center to which
the grant money will transfer. This is an optional requirement; zeroes must
be used in lieu of detail.
Budget CreateEntry
Document IDXX12ZZZZZZ
Data Type = 2
CR =538829 XXX 03
Authorized Estimated
Federal Funds
Transfer/Receipt
DR =13212900003
Authorized EstimatedFederal Funds
Receipt
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GA: GA01 Grant Accounting
NET EFFECT ON THE GENERAL LEDGER
The net effect to the General Ledger is as follows:
• The following are traits of the Federal Funds Transfer/Receipts Accounts.
— Record the transfer of funds between the federal and theoperating fund.
— Reimburse the operating fund for expenditures intended tobe federally funded.
— Located in the intragovernmental transaction section of theChart of Accounts.
— Offset each other within the same company to achieve azero balance at year-end.
If an account is invalid or incorrect, the transaction will post to suspense.
See Procedure 12 for more information on correcting suspense generated
by the annual budget entry.
STEP 3: Record the Life-to-Date Budget
The third step in the business process flow is to record the life-to-datebudget in the operating budget code.
• The life-to-date budget is set up to record the total grant budget. Theagency will then be able to track the life-to-date budget, the life-to-date expenditures, and the unexpended/unrealized life-to-date bud-get.
• The life-to-date budget is $100,000 for estimated federal receipts.
KeyedEntry
PostedEntry
Center Description Amount
DR 432129000 03 632129000 03 3129 Authorized Estimated Federal Funds Receipts $ 80,000
CR 538829210 03 738829210 03 3129 Authorized Federal Funds Transfer/Receipts $ 50,000
CR 538829110 03 738829110 03 3129 Authorized Federal Funds Transfer/Receipts $ 30,000
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GA: GA01 Grant Accounting
• The document ID is XX15ZZZZZZ where:
XX = Agency Identification Number
15 = Life-to-date Budget Entry
ZZZZZZ = Agency Defined
• The Life-to-Date Estimated Federal Funds Transfers In- Contra-Expenditure distribution (2101/53882900003) is debited for $100,000.The following accounting distributions are entered on the BC Createscreens:
2101/53882900003/1210710129 $60,000
2101/53882900003/1110530029 $40,000
— Accounting rule 75 changes the first two digits of the accountfrom a 53 to a 75 in the General Ledger.
• The Life-to-Date Expenditure- Supplies Expense distribution (2101/5331100003) is credited for $75,000. The following accounting distri-butions are keyed:
2101/53311000003/1210710129 $60,000
2101/53311000003 /1110530029 $15,000
• The Life-to-date Expenditure - Telephone distribution (2101/532811000003) is credited for $25,000. The following accounting dis-tribution is keyed:
2101/53281100003/1110530029 $25,000
— For all credit entries, accounting rule 75 changes the first twodigits of the account from a 53 to a 75 in the General Ledger.
Budget CreateEntry
Document IDXX15ZZZZZZ
Accounting Rule=75(LTD Expenditure)
CR =538829 XXX 03
Authorized Estimated
Federal Funds
Transfer/Receipt
DR =13212900003
Authorized EstimatedFederal Funds
Receipt
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GA: GA01 Grant Accounting
NET EFFECT ON THE GENERAL LEDGER
The net effect to the General Ledger is as follows:
If an account is invalid or incorrect, the transaction will post to suspense.
See Procedure13 for more information on correcting suspense generated
by the life-to-date budget entry.
STEP 4: Record the Certified and Authorized Budget
The fourth step in the business process flow is to record the certified andauthorized budget in the operating budget code. The budget entries are
made in the Budget Preparation System (BPS) and passed to the NCASvia an automated interface.
• The federal budget of the current state fiscal year is $80,000 for theestimated federal receipts.
• The state’s participation rate is 25% for the grant program, totaling$26,667. Therefore, the total federal allotment and state appropria-tion amount is $106,667.00.
• The NCAS automatically posts an authorized budget using the 73 and63 accounts at the same time the certified budget is posted using spe-
cial accounting rules.
KeyedEntry
PostedEntry
Center Description Amount
DR 53882900003 75882900003 1210710129 Life-to-Date Estimated FederalFunds Transfer/Receipts
$ 60,000
DR 53882900003 75882900003 1110530029 Life-to-Date Estimated FederalFunds Transfer/Receipts
$ 40,000
CR 53311000003 75311000003 1210710129 Life-to-Date Expenditure -Supplies Expense
$ 60,000
CR 53311000003 75311000003 1110530029 Life-to-Date Expenditure -Supplies Expense
$ 15,000
CR 53281100003 75281100003 1110530029 Life-to-Date Expenditure -Telephone Expense
$ 25,000
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GA: GA01 Grant Accounting
RMDS Reports
Generated entires should be checked against expected entries. Reportsfrom report series BC 305-1 BRS to BC are used to verify that the entriesextracted from the BPS posted successfully to the NCAS. These reportshave the following functionality.
• BRS to BC Interface - BC Document Detail is used to verify that allbudget transactions extracted from BRS and posted to the BC modulewere processed correctly.
• BRS to BC Interface-Invalid Account Posted Distribution identifiesall BRS transactions that posted to suspense accounts in the BC mod-ule due to an invalid account/center combination for a company.
• BRS to BC Interface - Revisions to the Authorized Budget is usedto verify that all authorized budget transactions extracted from BRSand posted to the BC module were processed correctly.
• BRS to BC Interface - Revisions to the Certified Budget is used toverify that all certified budget transactions extracted from BRS andposted to the BC module were processed correctly.
• BRS to BC Interface - BRS Error Listing identifies all BRS transac-tions that did not post to the BC module because the transaction typedid not equal 11, 12, or 14.
What Certified Entry does the NCAS
automatically generate?
NET EFFECT ON THE GENERAL LEDGER
The net effect to the General Ledger is as follows:
PostedEntry
Center Description Amount
DR 78882900003 1110530029 Certified Estimated Federal FundsTransfers/Receipts
$ 30,000
DR 78882900003 1210710129 Certified Estimated Federal FundsTransfers/Receipts $ 50,000
CR 78311000003 1210710129 Certified Expenditure - SuppliesExpense
$ 66,667
CR 78311000003 1110530029 Certified Expenditure - SuppliesExpense
$ 13,333
CR 78281100003 1110530029 Certified Expenditure - TelephoneExpense
$ 26,667
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GA: GA01 Grant Accounting
What Authorized Entry does the NCAS
automatically generate?
NET EFFECT ON THE GENERAL LEDGER
The net effect to the General Ledger is as follows:
Prior Year Grant Rollover
If the grant is rolled over from previous years and a certified budget exists,
an analysis must be made to determine if an adjustment is needed in theoperating budget code to reflect the remaining certified budget amount forthe current year.
Given a prior certified budget of $90,000 in the operating fund, the follow-ing is an example of the calculation of the required adjustment.
PostedEntry
Center Description Amount
DR 73882900003 1110530029 Authorized Estimated Federal FundsTransfers/Receipts
$ 30,000
DR 73882900003 1210710129 Authorized Estimated Federal FundsTransfers/Receipts
$ 50,000
CR 73311000003 1210710129 Authorized Expenditure -Supplies Expense
$ 66,667
CR 73311000003 1110530029 Authorized Expenditure -Supplies Expense
$ 13,333
CR 73281100003 1110530029 Authorized Expenditure -Telephone Expense
$ 26,667
DR 639100 1000 State Appropriation $ 26,667
Unexpended Balance(FY02) +
Federal Allotment(FY03)
Total Available((FY03) -
Previously Budgeted
Total Adjustment
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GA: GA01 Grant Accounting
ANALYSIS OF FEDERAL FUNDS
An additional entry is needed to reflect the prior certified budgeted amountof $90,000.
• The entry is recorded in the BC module of the NCAS using the BudgetCreate screens.
• The document ID is XX11ZZZZZZ where:
XX = Agency Identification Number
11 = Certified Budget Entries
ZZZZZZ = Agency Defined
• The Certified Estimated Federal Funds Transfers/Receipts - Contra-Expenditure distribution (2101/53882900003) is debited for $15,000.The following accounting distributions are keyed:
2101/53882900003/1110530029 $10,000
2101/53882900003/1210710129 $ 5,000
Accounting DistributionUnexpended
BalanceFY02
FederalAllotment
FY03
TotalAvailablein FY03
LessPreviously
Budget
TotalAdjustment
Required
Comp Account Center
2101 311000003 1210710129 $ 5,000 $ 50,000 $ 55,000 $ 50,000 $ 5,000
2101 311000003 1110530029 10,000 10,000 20,000 20,000 0
2101 281100003 1110530029 10,000 20,000 20,000 20,000 10,000
TOTAL FEDERAL FUNDS $ 25,000 $ 80,000 $105,000 $ 90,000 $ 15,000
Budget CreateEntry
Document IDXX11ZZZZZZ
Accounting Rule= CR= CX
CR =5331100003
Certified Expenditure-Supplies
53281100003LTD Expenditure-
Telephone
DR =53882900003Certified Estimated
Federal FundsTransfers/Receipt
439100Certified Budget Offset
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GA: GA01 Grant Accounting
• The Certified Budget Offset distribution (2101/439100/1000) is deb-ited for $5,000.
• The Certified Expenditure -Supplies distribution (2101/53311000003)is credited for $6,667. The following accounting distributions arekeyed:
2101/53311000003/1210710129 $ 6,6672101/53311000003/1110530029 $ 0
• The Certified Expenditure -Telephone distribution(2101/53281100003/ 1110530029) is credited for $13,333.
— Accounting rule CX changes the first two characters of theaccount from a 53 to 78 in the GL. The same entry is gener-ated for the 73 accounts.
— Accounting rule CR changes the first two characters of theaccount from a 43 to 68 in the GL. The same entry is gener-
ated for the 63 accounts.
NET EFFECT ON THE GENERAL LEDGER
The net effect to the General Ledger is as follows:
KeyedEntry
PostedEntry
Center Description Amount
DR 53882900003 78882900003 1110530029 Certified Estimated Federal Funds
Transfer/Receipts
$ 10,000
DR 53882900003 78882900003 1210710129 Certified Estimated Federal FundsTransfer/Receipts
$ 5,000
CR 53311000003 78311000003 1210710129 Certified Expenditure -Supplies Expense
$ 6,667
CR 53311000003 78311000003 1110530029 Certified Expenditure -Supplies Expense
$ 0
CR 53281100003 78281100003 1110530029 Certified Expenditure -Telephone Expense
$ 13,333
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GA: GA01 Grant Accounting
What Entry does the NCAS
automatically generate?
NET EFFECT ON THE GENERAL LEDGER
The net effect to the General Ledger is as follows:
Step 5: Record the Expenditures
The fifth step in the business process flow is to record the expenditures
in the operating budget code.
The Division of Aging incurs the following expenditures in the operatingbudget code through transactions occurring in the Accounts Payable mod-ule:
• $ 5,000.00 for supplies in center 1210710129• $ 2,000.00 for supplies in center 1110530029• $10,000.00 for telephone expense in center 1110530029.
An accounting rule in Accounts Payable automatically offsets the Cash inthe Disbursing Account (111250).
PostedEntry
Center Description Amount
DR 73882900000 1110530029 Authorized Estimated Federal FundsTransfer/Receipts
$ 10,000
DR 73882900000 1210710129 Authorized Estimated Federal FundsTransfer/Receipts
$ 5,000
CR 73311000000 1210710129 Authorized Expenditure - SuppliesExpense
$ 6,667
CR 73311000000 1110530029 Authorized Expenditure - SuppliesExpense $ 0
CR 73281100000 1110530029 Authorized Expenditure - TelephoneExpense
$ 13,333
DR 639100 1000 Unalloted State Appropriation $ 5,000
Division of Aging
XYZ Company 17,000.00
Seventeen thousand and zero----------------------------- -
2048
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GA: GA01 Grant Accounting
NET EFFECT ON THE GENERAL LEDGER
The net effect to the General Ledger is as follows:
Recording the grant year in the expenditure of the operating fund isoptional.
Step 6: Record the Cash Requisition
The sixth step in the business process flow is to record the cash requisi-tion in the operating budget code.
• The Division of Aging must record the transfer of cash from the allot-ment cash account to the disbursing cash account.
• The entry is recorded in the NCAS as a journal entry.
In the Cash Management System, the request to move funds from the
allotment cash account to the disbursing cash account in budget code
14411 is also required. This has not changed from its previous DAS pro-
cedure.
The document ID is XX22ZZZZZZ where:
XX = Agency Identification Number
22 = Cash Requisition Entry
ZZZZZZ = Agency Defined
PostedEntry
Center Description Amount
DR 53311000003 1210710129 Supplies Expenditure $ 5,000
DR 53311000003 1110530029 Supplies Expenditure $ 2,000
DR 53281100003 1110530029 Telephone Expenditure $ 10,000
CR 111250 1000 Cash in Disbursing Account $ 17,000
MSAS BC JOURNAL VOUCHER ENTRY 211
NEXT FUNCTION: ________ ACTION: ____ =========================================================
ENTER KEY INFORMATION
OPTION: _ DOCUMENT ID:APPLICATION AREA: __
DATE FORMAT: MDY
OPTIONS: (A)DD OR (C)ONTINUE
XX 22 ZZZZZZ
AgencyNumber
Cash Requisition
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GA: GA01 Grant Accounting
The data type code is 1. This requires you to only enter the debit to theDisbursing Cash account. The accounting rule automates the credit to theCash in Allotment Account (111270).
A debit for $17,000 is recorded to the Cash in the Disbursing distribution(2101/111250/1000).
Accounting rule CH automates the credit to the Cash in Allotment distribu-tion (2101/111270/1000).
NET EFFECT ON THE GENERAL LEDGER
The net effect to the General Ledger is as follows:
PostedEntry
Center Description Amount
DR 111250 1000 Cash in Disbursing Account $ 17,000
CR 111270 1000 Cash in Allotment Account $ 17,000
MSAS BC JOURNAL VOUCHER ENTRY 212
NEXT FUNCTION: ________ ACTION: ____
===============================================================
APP:
DOCUMENT ID:
EFFECTIVE DATE __ __ __ TOTAL COMPANY ID ____ DATA TYPE CODE _ LEVEL OF FUNDS CHK _ UPDATE AFF _ SOURCE GEN CODE _ CLOSED PRD ADJ _ PROJECT COMPANY ____
One-sided entry
OPTIONS: (E)ND, (H)OLD, (K)ILL, OR NEXT LINE ____
1
MSA BC JOURNAL VOUCHER ENTRY 213
NEXT FUNCTION: ________ ACTION: ____
====================== ========
APP:
DOCUMENT ID: TOTAL:
LINE ____ TRANSACTION CODE *
COMP/ACCT/CNTR 2101 111250 1000 DEBIT/CREDIT AMOUNT ______________
DEBIT/CREDIT CODE Dr DEBIT/CREDIT AMOUNTDEBIT/CREDIT CODEDESCRIPTION ______________________________ ____________ _______ ___
CHPROJECT COMP/CODE ____ ______ ACCOUNTING RULE
EFFECTIVE DATE __________ SOURCE CODE __________ LEVEL OF FUNDS CHK _ UPDATE AFF _
OPTIONS: (E)ND, (H)OLD, (K)ILL, OR NEXT LINE ____
Cash in Disbursing Account
______________ ______________
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GA: GA01 Grant Accounting
Step 7: Record the Receipt of Federal Funds
Once the participation rates are calculated, the seventh step in the busi-ness process flow is to record the federal funds drawdown of cash inthe federal budget code.
• Division of Aging requests a drawdown of $12,750.00 to cover the
federally funded expenditures incurred in the operating fund.
— 75% of $17,000
• The receipt of federal revenue must be recorded in the federal fundsrevenue account.
• The receipt of cash must be recorded in the federal funds cashaccount.
• The document ID is XX21ZZZZZZ where:
XX = Agency Identification Number
21 = Cash Receipts Entry
ZZZZZZ = Agency Defined
• The data type is 1, signifying one side of the entry is keyed and one isgenerated by an accounting rule.
• A credit for $12,750 is recorded to the Federal Fund Revenues for
Eldercare Coalition III distribution (2101/432129000 03/3129).— Accounting rule CB records the debit to the Budget Code
Cash distribution (2101/111260/3129).
Journal Voucher Entry
Document ID
XX21ZZZZZZ Data Type = 1
CR =432129000 03
Federal Fund Revenues
for Eldercare
Coalition III
AccountingRule = CH
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GA: GA01 Grant Accounting
NET EFFECT ON THE GENERAL LEDGER
(Automatic entry generated by an Accounting Rule)
The net effect to the General Ledger is as follows:
Were Federal Funds over/under estimated
for drawdown?
For the under/over estimated differences in the drawdown and receipt offederal funds, the agency may record a receivable/payable for theamounts owed from/to the federal agency.
If the expenditures are greater than the revenues in the federal fund, theagency would recognize revenue earned at this time.
At month-end, this is an optional entry. It will, however, be performed at
year-end.
KeyedEntry
PostedEntry
Center Description Amount
DR 111260 3129 Budget Code Cash $ 12,750
CR 432129000 03 432129000 03 3129 Federal Fund Revenues forEldercare Coalition III
$ 12,750
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GA: GA01 Grant Accounting
If the drawdown is underestimated by $1,000, the entry to record thereceivable for amounts owed from the federal government is outlined in
the following entry.The document ID is XX31ZZZZZZ where:
XX = Agency Identification Number
31 = Correcting/Adjusting Entry (Month-End Only)
ZZZZZZ = Agency Defined
• The data type is 2, signifying both sides of the entry are keyed.
• A debit for $1,000 is recorded to the Federal Agencies Receivablesdistribution (2101/113420/3129).
• A credit for $1,000 is recorded to the Federal Fund Revenues forEldercare Coalition III distribution (2101/432129000 03/3129).
NET EFFECT ON THE GENERAL LEDGER
The net effect to the General Ledger is as follows:
When the funds are received from the federal agency, the receivable mustbe relieved.
KeyedEntry
PostedEntry
Center Description Amount
DR 113420 113420 3129 Federal Agencies Receivables $ 1,000
CR 432129000 03 432129000 03 3129 Federal Fund Revenues forEldercare Coalition III
$ 1,000
Journal Voucher Entry
Document IDXX31ZZZZZZ
Data Type = 2
CR =432129000 03
Federal Fund Revenues
for Eldercare
Coalition III
DR = 113420Federal Agencies
Receivables
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GA: GA01 Grant Accounting
The entry to record the receivable for amounts owed from the federalagency is outlined in the following information.
• The document ID is XX21ZZZZZZ where:
XX = Agency Identification Number
21 = Cash Receipts Entry
ZZZZZZ = Agency Defined
• The data type is 1, signifying one side of the entry must be keyed.
• A credit for $1,000 is recorded to the Federal Agencies Receivablesdistribution (2101/113420/3129).
— Accounting rule CB records the debit to the Budget CodeCash distribution (2101/111260/3129).
NET EFFECT ON THE GENERAL LEDGER
(Automatic entry generated by an Accounting Rule)
The net effect to the General Ledger is as follows:
Keyed
Entry
Posted
Entry
Center Description Amount
DR 111260 3129 Budget Code Cash Account $ 1,000
CR 113420 113420 3129 Federal Agencies Receivables $ 1,000
Journal Voucher Entry
Document IDXX21ZZZZZZ
Data Type = 1
CR =113420
Federal Agencies
Receivables
AccountingRule = CB
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GA: GA01 Grant Accounting
Step 8: Simultaneous Cash Transferal with the
Recording of the Receipt of Federal Funds
Determine if cash will be transferred and the receipt of federal funds will berecorded (see step 7) simultaneously
STEP 8A: RECORD THE PAYABLE OF FEDERAL FUNDS AND THE RECEIVABLE
If the two will not occur simultaneously, record the payable of federalfunds and the receivable.
• The Division of Aging must setup and transfer the related payable for$12,750.00 due from the federal budget code to the operating budgetcode.
• 75% of $17,000.00
— This covers federally funded expenditures incurred in theoperating fund code.
These entries will not require the generation of a check in the AP system.
Refer to the Cash Management procedures for transfer procedures.
This example demonstrates the steps necessary when a check is notbeing processed. Step 8A is comprised of two entries.
• The first records the payable of federal funds from the federal budget
code to the operating budget code.
• The second records the related receivable in the operating budgetcode from the federal budget code.
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GA: GA01 Grant Accounting
• The document ID is XX31ZZZZZZ where:
XX = Agency Identification Number
31 = Correcting/Adjusting Entries
ZZZZZZ = Agency Defined
• The data type is 2, signifying both sides of the entry are keyed.
• A debit for $12,750 is recorded to the Federal Funds Transfer/Receipts - Eldercare Coalition III distribution (2101/538829 XXX 01/3129).
2101/538829210 01/3129 $ 3,750
2101/538829110 01/3129 $ 9,000
• A credit for $12,750 is recorded to the Federal Funds Payable Clear-ing distribution (2101/211970/3129).
NET EFFECT ON THE GENERAL LEDGER
The net effect to the General Ledger is as foll3ows:
Once this entry is complete, the transfer and receivable must be recordedin the operating budget code.
PostedEntry
Center Description Amount
DR 538829210 03 3129 Federal Funds Transfer/Receipts - Eldercare Coalition III
$ 3,750
DR 538829110 03 3129 Federal Funds Transfer/Receipts - Eldercare Coalition III
$ 9,000
CR 211970 3129 Federal Funds Payable Clearing $12,750
Journal Voucher Entry
Document IDXX31ZZZZZZ
Data Type = 2
CR =211970
Federal Funds
Payroll Clearing
DR =538829 XXX 03Federal Funds
Transfer/Receipts-
Eldercare Coalition III
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GA: GA01 Grant Accounting
• The document ID is XX31ZZZZZZ where:
XX = Agency Identification Number 31 = Correcting/Adjusting Entries
ZZZZZZ = Agency Defined
• The data type is 2, signifying both sides of the entry are keyed.
• A debit for $12,750 is recorded to the Federal Funds ReceivableClearing distribution (2101/113930). The following accounting distri-butions are keyed:
2101/113930/1210710129 $ 3,750
2101/113930/1110530029 $ 9,000
— This is a departure from the normal recording of receivablesin that it needs to be recorded to the detailed center in orderto retrieve balances by grant.
• A credit for $12,750 is recorded to the Federal Funds Transfer/Receipts - Eldercare Coalition III distribution (2101/53882900003).The following accounting distributions are keyed:
2101/53882900003/1210710129 $ 3,750
2101/53882900003/1110530029 $ 9,000
Journal Voucher Entry
Document IDXX31ZZZZZZ
Data Type = 2
CR =628829000 03Federal Funds
Transfer/Receipts
Eldercare Coalition III
DR =113930
Federal Funds
Receivable Clearing
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GA: GA01 Grant Accounting
NET EFFECT ON THE GENERAL LEDGER
The net effect to the General Ledger is as follows:
STEP 8A: (CONTINUED) RECORD THE CASH TRANSFER
The next step in the business process flow records the cash transfer inthe federal budget code. This is necessary to record the transfer of fed-eral funds from the federal budget code to the operating budget code.
• Division of Aging must transfer $12,750 from the federal budget codeto the operating budget code to cover expenditures incurred in theoperating budget code.
• The transfer of cash from the federal budget code to the operatingbudget code in the Cash Management System (CMS) will follow thepreviously used procedures. (Refer to the CMS Manual).
KeyedEntry
PostedEntry
Center Description Amount
DR 113930 113930 1210710129 Federal Funds Receivable Clearing $ 3,750
DR 113930 113930 1110530029 Federal Funds Receivable Clearing $ 9,000
CR 538829000 03 538829000 03 1210710129 Federal Funds Transfer/Receipts -Eldercare Coalition III
$ 3,750
CR 538829000 03 538829000 03 1110530029 Federal Funds Transfer/Receipts -Eldercare Coalition III
$ 9,000
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GA: GA01 Grant Accounting
• The document ID is XX27ZZZZZZ where:
XX = Agency Identification Number
27 = Cash Transfer-Out (Disbursements)
ZZZZZZ = Agency Defined
• The data type is 1, signifying one side of the entry is keyed.
• A debit for $12,750 is recorded to the Federal Funds Payable Clearingdistribution (2101/211970/3129).
— An accounting rule CB generates a credit for $12,750 to theBudget Code Cash distribution (2101/111260/3129).
NET EFFECT ON THE GENERAL LEDGER
(Automatic entry generated by an Accounting Rule)
The net effect to the General Ledger is as follows:
STEP 8A: (CONTINUED) RECORD THE CASH RECEIPT
The next step in the business process flow is to record the cash receipt in the operating budget code.
KeyedEntry
PostedEntry
Center Description Amount
DR 211970 211970 3129 Federal Funds Payable Clearing $ 12,750
CR 111260 3129 Budget Code Cash Account $ 12,750
Journal Voucher Entry
Document IDXX27ZZZZZZ
Data Type = 1
DR =211970
Federal Funds
Payable Clearing
AccountingRule = CB
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GA: GA01 Grant Accounting
• The document ID is XX25ZZZZZZ where:
XX = Agency Identification Number
25 = Cash Transfer-In (Deposits) Entry
ZZZZZZ = Agency Defined
• The data type is 1, signifying one side of the entry is keyed.
• A credit for $12,750 is recorded to the Federal Funds ReceivableClearing distribution (2101/113930). The following accounting distri-butions are keyed:
2101/113930/1210710129 $ 3,750
2101/113930/1110530029 $ 9,000
— Accounting rule CH generates a debit for $12,750 to theCash in Allotment distribution (2101/111270/1000).
NET EFFECT ON THE GENERAL LEDGER
(Automatic entry generated by an Accounting Rule)
The net effect to the General Ledger is as follows:
KeyedEntry
PostedEntry
Center Description Amount
DR 111270 1000 Cash in Allotment $ 12,750
CR 113930 113930 1210710129 Federal Funds Receivable Clearing $ 3,750
CR 113930 113930 1110530029 Federal Funds Receivable Clearing $ 12,750
Journal Voucher Entry
Document IDXX25ZZZZZZ
Data Type = 1
CR =113930
Federal Funds
Receivable Clearing
AccountingRule = CH
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GA: GA01 Grant Accounting
STEP 8B: DETERMINE IF CASH WILL BE TRANSFERRED SIMULTANEOUSLY WITH THE RECORDING OF THE RECEIPT OF FEDERAL FUNDS
Determine if cash will be transferred simultaneously with the recording ofthe receipt of federal funds (see step 7).
If the two will occur simultaneously, the payable and receivable do notrequire recording. This step in the business process flow records thecash transfer in the federal budget code. This is a necessary step inrecording the transfer of federal funds from the federal budget code to theoperating budget code.
• Division of Aging must transfer $12,750 from the federal budget codeto the operating budget code to cover expenditures incurred in theoperating budget code.
• The transfer of cash from the federal budget code to the operating
budget code in the CMS will follow the previously used procedure.
• The document ID is XX27ZZZZZZ where:
XX = Agency Identification Number
27 = Cash Transfer-Out (Disbursements) Entry
ZZZZZZ = Agency Defined
• The data type is 1.• A debit for $12,750 is recorded to the Federal Funds Transfers/
Receipts - Eldercare Coalition III distribution (2101/538829 XXX 03/3129).
2101/538829210 03/3129 $ 3,750
2101/538829110 03/3129 $ 9,000
— Accounting rule CB generates a credit for $12,750 to theBudget Code Cash distribution (2101/111260/3129).
Journal Voucher Entry
Document IDXX27ZZZZZZ
Data Type = 1
DR =538829210 03Federal Funds
Transfer/Receipts
Eldercare Coalition III
AccountingRule = CB
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NET EFFECT ON THE GENERAL LEDGER
(Automatic entry generated by an Accounting Rule)
The net effect to the General Ledger is as follows:
STEP 8B: RECORD THE CASH RECEIPT
As mentioned before, the next step in the business process flow is torecord the cash receipt in the operating budget code.
• The document ID is XX25ZZZZZZ where:
XX = Agency Identification Number
25 = Cash Transfer-In (Deposits) Entry
ZZZZZZ = Agency Defined
• The data type is 1.
Keyed
Entry
Posted
Entry
Center Description Amount
DR 538829210 03 538829210 03 3129 Federal Funds Transfer/Receipts -Eldercare Coalition III
$ 3,750
DR 538829110 03 538829110 03 3129 Federal Funds Transfer/Receipts -Eldercare Coalition III
$ 9,000
CR 111260 3129 Budget Code Cash Account $ 12,750
Journal Voucher
Entry
Document IDXX25ZZZZZZ
Data Type = 1
DR =538829000 03Federal Funds
Transfer/Receipts
Eldercare Coalition III
AccountingRule = CH
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• A credit for $12,750 is recorded to the Federal Funds Transfer/Receipts Eldercare Coalition III distribution (2101/538829000 03).
2101/53882900003/1210710129 $ 3,750
2101/53882900003/1110530029 $ 9,000
(These accounts are treated like revenues)
— Accounting rule CH generates a debit for $12,750 to theCash in Allotment distribution (2101/111270/1000).
NET EFFECT ON THE GENERAL LEDGER
(Automatic entry generated by an Accounting Rule)
The net effect to the General Ledger is as follows:
REPORTS
BD-701F Report
The BD701F provides state fiscal year and life-to-date grant information.
• It is printed on a monthly and on-demand basis.
• It lists all expenditures and revenue accounts within budget codesbeginning with “3”.
Federal Cost Report
The Federal Cost Report provides life-to-date grant information.
• It is printed monthly or on-demand basis.
• It lists all expenditure and revenue accounts within specific budgetcodes.
KeyedEntry
PostedEntry
Center Description Amount
DR 111270 1000 Cash in Allotment $ 12,750
CR 538829000 03 538829000 03 1210710129 Federal Funds Transfer/Receipts -Eldercare Coalition III
$ 3,750
CR 538829000 03 538829000 03 1110530029 Federal Funds Transfer/Receipts -Eldercare Coalition III
$ 9,000