Impact of Conversion Accounting Entries on Weblinks Reports

1

• Impact of Conversion Accounting Entries on
  Weblinks Reports
• Controllers Office
• Wendy Hom, EMF Compliance Manager

2
INTENT

• Meet your Billing/Reporting Service Team Leads
  supporting you
• Walk you through the impact of conversion
  accounting entries on Weblinks report for the 339
  funds
• Walk you through how to clear the overdraft and
  correct the understated Weblinks Fund Summary
  balance
• Answer any questions you have

3
Please say hello
4
Team Resources
5
Team Resources
6
Team Resources
7
Team Resources
8
Team Resources
9
Team Resources
10
History Background

• In the past, we did not have an integrated A/R
  Billing system.
• Now, we do.
• In compliance with
• Governmental Accounting Standards Board (GASB)
  rules around recognition of revenue for all
  expenses on sponsored projects
• Generally Accepted Accounting Principles (GAAP).
• Impacted the way UCSF recognized revenue in
  Weblinks Fund Summary report

11
(No Transcript)
12
IMPACT

• Conversion accounting entries were made to
  support transition to A/R in RAS
• DPA not used Weblinks reports
• Example of Journal ID relevant to this
  presentation 10RASCNV6

13
SAMPLE
14

• To comply with GASB, Revenue/Expense must be in
  balance.
• To that end, revenue was recognized on OD
  cost-reimbursable awards so that when ODs are
  removed, then the revenue and expenses will still
  balance.
• Had we not made entries, removal of OD would have
  DECREASED revenue and revenue/expense would be
  out of balance.

15
SCOPE

• Population 4800 funds converted
• Awards affected only awards identified at
  conversion as cost reimbursable and where
  expenses exceeded revenue as of March 2006
  received a journal entry.
• In some cases, 339 of the 4800 funds 7these
  entries impacted balances showing in Fund
  Summary Weblinks reports.

16
IMPACT ON A FEW AWARDS

• IF expenses exceeded the budget (overspent) as of
  March 2006,
• THEN the Fund Summary balance as of April 2006
  understates the award overdraft balance by the
  amount overspent (budget minus expenses) as of
  March 2006.

17
WALKING THROUGH SCENARIOS
18
SCENARIO 1 Expense gt Budget? No.

• Expense gt Budget?
• 20K gt 50K?
• Nope, there is no OD.
• Conversion journal 10K (20K in expenses less
  10K in revenue)
• All 10K will be invoiced to the sponsor up to
  maximum allowable.
• Reporting impact
• None
• Fund summary in Weblinks report is accurate

19
SCENARIO 2 Expense gt Budget? Yes.

• 60K gt 50K? Yes, there is an OD.
• Conversion journal 10K (60K in expenses less
  50K in revenue)
• Reporting impact
• Award is in expenditure deficit of 10K
• 10K will not be invoiced to the sponsor because
  we have already invoiced to the maximum allowable
  before conversion
• And so the 10K that exceeds the authorized
  budget needs to be removed from this fund
• Weblinks Fund Summary report balance as of April
  06 is overstated by 10K credit
• Need your help!!!
• remove expenditure overdraft or
• appropriation of additional budget from sponsor

20
SCENARIO 3 Expense gt Budget? Yes.

• 60K gt 50K? Yes, there is an OD.
• Conversion journal 20K (60K in expenses less
  40K in revenue)
• Reporting impact
• Award is in expenditure deficit of 10K
• 10K will be invoiced to the sponsor up to
  allowable budget
• The remaining 10K needs to be removed from this
  fund (exceeds authorized budget)
• Weblinks Fund Summary report balance as of April
  06 is overstated by 10K credit
• Need your help!!!
• remove expenditure overdraft or
• appropriation of additional budget from sponsor

21
How to identify OD?

• Reference the amount in OD in the fund summary
  balance on 03/06.
• What is my OD now?
• Use Expenditure Summary or DPA Summary by fund
  Weblinks reports.
• Reminder Total OD includes FA,
• so determine the DC portion of the OD using the
  FA rate (IC rate) on the Fund-FY that will be
  credited.
• Transfer the direct cost portion ONLY of the OD
  using a 545 or 547 online journal.

For more info . . . http//tinyurl.com/nt3jhhttp
//acctg.ucsf.edu/peoplesoft/journals/training/jour
nal_tips/Regular_and_Exception_Cost_Transfers20(3
).pdf
22
Ready for examples on Weblinks?

• Scenario 2

23
Scenario 2
Already invoiced to budget
Award ended
24
Scenario 2
25
Scenario 2
After conv
OD disappeared?
26
More examples on Weblinks?

• Scenario 3

27
Scenario 3
Already invoiced to budget
Award ended
28
Scenario 3
29
Scenario 3
After conv
OD disappeared?
30
Solution
Cost Transfer Only DC
31
How to correct?

• Identify appropriate discretionary fund.
• If fund you are clearing is marked on hold in
  RAS,
• contact your service team accountant
• indicate that you have transferred the entire OD
  
• indicate you are ready for fund to be taken off
  hold to complete related processing.

32
What will EMF do then?

• Service teams review funds to ensure hold can be
  removed
• Service teams notify EMFs data analyst that it
  is OK to remove hold
• Data analyst removes hold
• After RAS nightly batch processes run,
  revenue will be automatically reduced by the
  overdrafted amount. At this time, the revenue
  and the fund summary balance will no longer be
  overstated.

33
TIMELINE

• Sept. 6th - communications sent to control points
  (Deans EVC offices) w/ list of funds to pass
  to relevant department personnel.
• Sept. 26th EMF conf call w/ ctrl pts
• Sept. 30th EMF had a clean-up party to remove
  approx 25 of 339 funds off hold.
• More work to do and need your help. When is a
  reasonable goal we all can commit?
• End of December?
• January close?

34

• How to find out what funds you have on hold?
• Control points or CG managers
• Service team leads or
• I can post list of fund/dep codes w/o OD?
• Post this presentation on website (under
  communications
• Post Sept. 6th EMF communication to control
  points on EMF website

35
http//acctg.ucsf.edu/
36
http//ucsflink.ucsf.edu/
37
Questions?
For more info . . . Wendy Hom 476-8688
38
Resources

• Website
• Call
• Email

For more info . . . Wendy Hom 476-8688
39
Thank you