1.8 Records Maintained To Facilitate Required Reporting
(Last Modified on February 25, 2016)
Due to the conflicting requirements imposed on the USG in conforming to GAAP/GASB principles while maintaining the ability to provide reporting as mandated by the laws of the State of Georgia (BCR) , several different ledgers should be maintained. These ledgers must be able to distinguish between fiscal year and budget period to facilitate correct reporting in the various reporting modes, as discussed in the following sections.
1.8.1 Actuals Ledger
(Last Modified on February 25, 2016)
The actuals ledger reports all “day to day” financial transactions in the general ledger based on the fiscal year and accounting period. Activity for assets, liabilities, net position, revenue and expenditures are included.
Note: The State of Georgia statutory basis of accounting/ BCR activity will be a combination of the Actuals, Detail_En and BCRADJ ledgers for institutions using the GeorgiaFIRST model of the PeopleSoft Financials software. The following types of transactions are not allowable for BCR reporting:
- Depreciation expenses of assets
- Recording compensated absences
- Eliminations of intra-campus sales
- Recording scholarship allowances
1.8.2 Capital Assets with Depreciation
(Last Modified on February 25, 2016)
For GAAP/GASB reporting, a ledger for capital assets with resulting depreciation values must be maintained. This ledger should be updated from a software module containing detailed information about each capital asset and its associated depreciation entries. *
* Note: The ledger for Capital Assets will be the Capital Ledger for institutions using the GeorgiaFIRST model of the PeopleSoft Financials software. The Asset Management module will populate this ledger.
Due to the method for budgeting within the BCR for equipment (capital tems), the ledger for capital assets must provide some offsetting information. For example, purchase of capital equipment in the actuals ledger maintained for the BCR will charge an equipment purchase expense account to support the BCR expense reporting. For GAAP/GASB purposes, this is not an expense, but is the purchase of an asset. When this transaction populates the software module for tracking capital assets, it must generate an entry in the ledger for capital assets to debit the asset account for equipment, and to credit the equipment purchase expense account, which is the same account that was debited in the ledger for BCR transactions.
This means that the ledger for capital assets will not be able to support stand-alone financial reporting. It is only meaningful when combined with the Actuals Ledger.
The Actuals ledger will display the equipment expense as required for the BCR. Combining the Actuals Ledger and the Capitals Ledger will not show any equipment expense, but will properly report the asset “Equipment” as required for GAAP/GASB purposes.
1.8.3 GAAP Ledger for Adjusting Entries
(Last Modified on February 25, 2016)
In addition to the ledgers described above, a third ledger should be maintained for adjusting entries that must be recorded to provide for certain GAAP/GASB reports. The entries to this ledger are those that would interfere with normal business processes if the entries were made to the other two ledgers described above.*
* Note: The ledger for adjusting entries will be the GAAP Ledger for institutions using the GeorgiaFIRST model of the PeopleSoft Financials software.
Examples of entries made to the ledger for adjusting entries are:
- Recording compensated absences
- Eliminating intra campus sales
- Recording scholarship allowances
- Pension and OPEB liabilities
Generally, entries made into the ledger for adjusting entries will be reversed in the next accounting year.
1.8.4 Combinations of Ledgers versus Reporting Requirements
(Last Modified on February 25, 2016)
For Budgetary Compliance Reporting (BCR), only the ledger(s) containing statutory basis of accounting transactions are used . * This reporting is based on budget period along with fiscal year.
* Note: This will be the Actuals, Detail_EN and BCRADJ ledgers for institutions using the GeorgiaFIRST model of the PeopleSoft Financials software.For GAAP based reporting, the Actuals Ledger containing “day to day” financial transactions will be combined with the ledger containing capital assets. * This reporting is based upon fiscal year without regard to budget period.
* Note: This will be a combination of the Actuals and Capital Ledgers for institutions using the GeorgiaFIRST model of the PeopleSoft Financials software.For GASB reporting (at the end of the fiscal year), the Actuals Ledger for “day to day” transactions , the ledger for capital assets, and the ledger for adjusting entries will be combined. * This reporting is based upon fiscal year without regard to budget period.
* Note: This will be a combination of the Actuals, Capital, and GAAP Ledgers for institutions using the GeorgiaFIRST model of the PeopleSoft Financials software.