Schedule H Capital Leases CAPITAL LEASE A lease that substantially - - PDF document

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Schedule H Capital Leases CAPITAL LEASE A lease that substantially - - PDF document

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6/4/2020 Schedule H - Capital Leases AUDITOR-CONTROLLERS OFFICE Presented By: Caroline Santos 1 2020 YEAR-END TRAINING Schedule H Capital Leases CAPITAL LEASE A lease that substantially transfers all the risks and benefits of

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Schedule H - Capital Leases

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AUDITOR-CONTROLLER’S OFFICE Presented By: Caroline Santos

Schedule H – Capital Leases

CAPITAL LEASE A lease that substantially transfers all the risks and benefits of ownership of the property to the lessee.

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Schedule H – Capital Leases Criteria

Title transfer at the end of the lease term Bargain purchase option Lease term is 75% or more of economic life of leased property Present value of lease payments are equal to 90% or more of the fair value of property

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Schedule H – Capital Lease Test Sheet

Capital Lease Test link: http://www.auditorcontroller.org/ReportsPublications.aspx

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Schedule H – Capital Lease Test Sheet

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Schedule H – Capital Leases

Scenario

The ACO has two new leases which meet the requirement to be recorded as capital leases. 1) The beginning fiscal year lease principal balance is $1,266,885 2) Additions of $531,754 were made during the fiscal year 3) Principal payments of $214,601 were made during the fiscal year

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Schedule H – Capital Leases

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Schedule H – Capital Lease Payment Schedule

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Schedule H – Capital Lease Supporting Document

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Schedule H – Capital Leases

Question

The ACO has been making a $1,700 monthly payment for 5 copiers. The payments will end in 2 more years at which time the copiers will be owned by the ACO. What kind of lease agreement do we have?

  • A. Capital lease
  • B. Operating lease

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Schedule H – Capital Leases

Answer

Capital Lease. Reason: Title transfers to ACO at the end of the lease term.

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Schedule H – Capital Leases

Submit Schedule H and Supporting Documents via email to: ACO Year-End acoyearend@rivco.org Schedule H is Due August 7, 2020

Questions? Submit them by email to acoyearend@rivco.org

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Schedule Q – Construction In Progress

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AUDITOR-CONTROLLER’S OFFICE Presented By: Echel Ybanez

Schedule Q Construction in Progress

Construction In Progress (CIP) is a major class of capital assets, which is used to track costs incurred to construct or develop a tangible or intangible capital asset before it is substantially ready to be placed into service. Schedule Q is used for capital assets that are still under construction or/and that have been completed as of June 30. There is no depreciation expense for CIP

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Schedule Q - Construction in Progress

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1) 1) Total expense do not match the Actual project cost. 2) 2) Incomplete or missing information 3) 3) Missing supporting documents for closed projects 4) 4) Late submission

Common Issues and Errors:

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Cost to date in PS Asset Management Location

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Cost to date in PS Asset Management Location

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Cost to date in PS Asset Management Location

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Schedule Q - Construction in Progress Supporting Document

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Schedule Q - Construction in Progress Supporting Document

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E-mail all of the following: 1. Signed copy of Schedule Q 2. Supporting Documents 3. Excel version of Schedule Q Email all documents and files to acoyearend@rivco.org

Questions? Please submit them to: Echel Ybanez (EYbanez@RIVCO.ORG, 951-955-3556)

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Schedules L and S

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AUDITOR-CONTROLLER’S OFFICE Presented By: Mary Yip

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Overview

  • Purpose of Year-end Schedules for:
  • Deferred Inflows of Resources
  • Advances From Grantors and Third Parties
  • Scenarios, Schedules & JE Walk Thru
  • Commonly Ask Questions
  • Checklist For Year-end

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Purpose of Year-end Schedules

Deferred Inflows of Resources:

  • Schedule L-1 and L-2
  • Schedule S-12 Deferred Inflows of Resources

Advances From Grantors and Third Parties:

  • Schedule L-3
  • Schedule S-12 Advances

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Deferred Inflows of Resources (Schedule L-1 / L-2)

Time Restriction – 2 Types: 1. When a cash grant is received in advance and all of the eligible requirements have been met except for a time

  • requirement. For example, the grant may be not used until

next fiscal year. The grant should be recognized as a Deferred Inflows of Resources. (Schedule L-1) 2. When services are performed or taxes are levied, but revenue is not “available” to cover current year

  • expenditures. (Governmental Funds only, Schedule L-2)

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Deferred Inflows of Resources (Schedule L-2)

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  • 60 Days - Taxes
  • 12 Mons - Expenditure-driven Grants
  • 90 Days - Other Revenue Streams

Revenue Availability Period

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Scenario for Schedule L-1

On June 1, 2020, the Health Department received a $500,000 grant from the State for meeting all of the requirements eligible for the grant. The purpose of the grant is for supporting health related program activities and can only be used in the next fiscal

  • year. The revenue was recorded at the time of

receipt. Debit Credit Cash 101100 500,000 Revenue 751600 500,000

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Schedule L-1 Accrual/Adjusting Entry

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Schedule L-1 Reversal Entry

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Schedule L-1

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Schedule S-12

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Scenario for Schedule L-2

The Department

  • f

Animal Services provided services to the City of Banning on June 2, 2020. The invoice was generated in PeopleSoft billing module for $25,000. The revenue was recorded at the time when invoice was generated. The payment is not expected by June 30 until October 2, 2020.

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Debit Credit DFOG 118601 25,000 Revenue 720000 25,000

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Schedule L-2 Adjusting Entry

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ACARC

Schedule L-2 Reversal Entry

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ACARC

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Schedule L-2

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Schedule S-12

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Advances from Grantors and Third Parties (Schedule L-3)

When grants are made before the recipient has met all of the eligible requirements. If a government receives $500 grant payment but has not yet met all

  • f the requirements necessary to be eligible for the

grant, it technically owes that grant payment back to the grantor until it meets the requirements. The recipient should report Advances from Grantors as a liability until all of the requirements have been met.

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Scenario for Schedule L-3

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Sheriffs Dept. received a federal grant on June 01, 2020 for $400,000. The requirements are the proceed needs to be spent by the end of fiscal year 20/21 and it can only be used to fund activities related to off road vehicles. Only $75,000 was used as of June 30, 2020. The revenue was recorded at the time of receipt. Debit Credit Cash 101100 400,000 Revenue 767140 400,000

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Schedule L-3 Adjusting Entry

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ACARC

Schedule L-3 Reversal Entry

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ACARC

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Schedule L-3

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Schedule S-12

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Commonly Ask Questions

Are all departments expected to submit Schedule S-12?

  • Yes. If there’s no activity incurred during the year, indicate no

activity or zero balance. What is the difference between Schedule L and S? Schedule L is used to report the year-end accrual or adjusting

  • entry. Schedule S is used to report the year-to-date balance in

G/L. Some accounts might have prior year balance carried forward. Does ACO validate the account balances?

  • Yes. We validate the account balances to the Year-end schedules

and supporting documents. How much information should be included in the Description column? The information you provide should be sufficient or helpful for everybody.

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Checklist

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 Start Early!  Reconcile, Reconcile, Reconcile  Accounts Must Have a Credit Balance  Confirm Data on Year-end Schedules:

  • Is it accurate?
  • Does it tie to the general ledger?
  • Is all supporting documentation included?
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Schedule L and S

Submit Schedule L and S with Supporting Documents via email to:

ACO Year-End acoyearend@rivco.org

Questions? Submit them by email to acoyearend@rivco.org

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QUESTIONS ?

If you have any general questions you can type them in the Chat box. Any department specific questions please email them to acoyearend@RIVCO.ORG

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