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Beginning Balances
Step 1:
Step 2:
Link the trial balance beginning balance columns to the governmental fund statements for all the other accounts.
Step 3:
In Trial Balance Tab, there are yellow highlighted boxes. In these yellow boxes, prior year ending balances from the
district wide statements should be entered. Remember: prior year’s ending balance = current year’s beginning balance.
Notice there is a difference between the deferred revenue balance on the fund basis statements and the deferred
revenue balance on the entity-wide statements in the prior year audit report. (You can also find this difference on the
reconciliation.) You must make a conversion entry to remove fund basis revenues recognized in the current year that
are prior year entity-wide revenues.
The amount you enter for beginning NET POSITION must be adjusted by this amount or your trial balance will not
balance for the first two columns.
Conversion Entry (A)
To record deferred property tax revenues as revenues on the entity-wide statements.
Action Needed: Revenues of the current year should be recognized in the entity-wide statement
of net assets regardless of whether they are available.
Conversion Entry:
dr. Deferred revenue 2,790,
cr. GENERAL REVENUE-PROPERTY TAXES 2,790,
Where do the Numbers Come From?
The amount of deferred revenue reported for property taxes in the liability section of the fund statement balance
sheet OR the portion of property tax receivable (net of any allowance) that is not expected to be collected with 60
days of year end.
Conversion Entry - Deferred
Action Needed: Revenues already recorded in the entity-wide statement last year should
not be recorded in the entity-wide statements again this year.
Because this entry involves revenues that were from a prior period, NET ASSETS will be part of the entry.
Conversion Entry:
dr. GENERAL REVENUE - PROPERTY TAXES
dr. CHARGES FOR SERVICES - FOOD SERVICE
dr. UNRESTRICTED GRANTS AND CONTRIBUTIONS
cr. NET POSITION
Where do the Numbers Come From?
To remove revenues recorded in the funds this year that were already recorded in the entity-
wide statements in the prior year because they were deferred in the prior year.
This is a reversal of the prior year conversion entry made to recognize revenues in the
entity-wide statement that were deferred in the funds due to the availability restriction. Most
counties will have property tax, food service, eRate and Medicaid.
Conversion Entry (C)
Elimination of Interfund Balances
Action Needed: All interfund balances within governmental activities must be eliminated to avoid double-counting on the entity-wide statements.
Conversion Entry:
dr. Due to other funds $ 134,
cr. Due from other funds $ 134,
Where do the Numbers Come From?
BALANCE SHEET - GOVERNMENTAL FUNDS
(partial)
General Special Debt Bond Permanent Capital Current Revenue Service Construction Improvement Projects Total Expense Fund Fund Fund Fund Fund Governmental ASSETS Cash and cash equivalents $ 14,418,996 $ 1,618,673 $ 2,462,528 $ 12,191,001 $ 1,206,706 $ - $ 31,897, Investments - - - - - - - Deposit with Workers' Comp. Commission 495,197 - - - - - 495, Taxes receivable, net 757,100 - 69,875 - - - 826, Food service receivable, net - 198,508 - - - - 198, Other receivables 134,798 338,598 - - - 134,348 607, Due from other governments: State aid receivable 486,210 - - - - - 486, PEIA allocation receivable 1,423,746 - - - - - 1,423, Reimbursements receivable - SBA 4,405,191 4,405, Due from other funds 134,348 - - - - - 134, Total assets $ 17,850,395 $ 2,155,779 $ 2,532,403 $ 12,191,001 $ 1,206,706 $ 4,539,539 $ 40,475,
LIABILITIES AND FUND BALANCES
Liabilities: Salaries payable and related payroll liabilities $ 3,699,620 $ - $ - $ - $ - $ - $ 3,699, Workers' compensation payable 626,994 - - - - - 626, PEIA premiums payable 1,746,444 1,746, Accounts payable 165,682 113,396 235,432 1,064,250 1,578, Deferred revenue - 2,123 - - - - 2, Due to other funds - - - - - 134,348 134, Total liabilities 6,238,740 115,519 - 235,432 - 1,198,598 7,788,
Conversion Entry (E), (W)
To record capital asset additions, accumulated depreciation, and depr expense for current year.
Action Needed: Capital asset additions and related accumulated depreciation for current year must be recorded on the Statement of Net Position. Depreciation Expense must be recorded by function on the Statement of Activities.
Conversion Entry (E):
dr. LAND - dr. CONSTRUCTION IN PROCESS 9,802, dr. BUILDINGS & IMPROVEMENTS 1,411,679 12,818, dr. FURNITURE & EQUIPMENT 809, dr. VEHICLES 795, Cr. Expenditures - Student transportation 795, Cr. Expenditures - Food services 105,572 12,818, Cr. Expenditures - Capital Outlay 11,917, dr. Expenditures - Instruction 1,355, dr. Expenditures - Instructional staff 1, dr. Expenditures - Central administration 14, dr. Expenditures - School administration 31,007 2,168, dr. Expenditures - Business 6, dr. Expenditures - Operation and maintenance 56, dr. Expenditures - Student transportation 580, dr. Expenditures - Food services 123, cr. ACCUMULATED DEPRECIATION-BUILDINGS & IMPROVEMENTS 1,339, cr. ACCUMULATED DEPRECIATION-FURNITURE & EQUIPMENT 214,259 2,168, cr. ACCUMULATED DEPRECIATION-VEHICLES 615,
To record the additions and accumulated depreciation for the current year.
Conversion Entry (W):
dr. Expenditures - Capital outlay 1,145, Cr. Expenditures - Instruction 647, Cr. Expenditures - Students 46, Cr. Expenditures - Instructional staff 51, Cr. Expenditures - Central administration 36, Cr. Expenditures - School administration 56, Cr. Expenditures - Business 17, Cr. Expenditures - Operation and Maintenance 111, Cr. Expenditures - Student transportation 105, Cr. Expenditures - Food services 66, Cr. Expenditures - Community services 6,
To allocate the additional capital outlay to the various functions - auditor-proposed entry.
Where do the Numbers Come From?
Current Year Reports from WVEIS Fixed Asset Module: Capital Asset Additions by Category Depreciation Expense by Category
Other Reports: Depreciation Allocation Report/Excel Workbook Capital Asset Additions by Category- Buildings less CIP PY placed in service See Schedule below
Conversion Entry (E)
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS
(partial) General Special Debt Bond Permanent Capital Current Special Service Construction Improvement Projects Total Expense Revenue Fund Fund Fund Fund Governmental Revenues:
Property taxes $ 28,737,348 $ - $ 3,293,413 $ - $ - $ - $ 32,030, Other Local sources 1,559,711 1,095,925 105,799 300,325 38,464 - 3,100, State sources 52,962,517 5,537,589 - - - 4,314,510 62,814, Federal sources 1,791,109 12,764,825 - - - - 14,555, Miscellaneous sources 221,859 - - - 668,350 - 890, Total revenues 85,272,544 19,398,339 3,399,212 300,325 706,814 4,314,510 113,391,
Expenditures:
Instruction 48,594,009 8,602,046 - - 15,996 - 57,212, Supporting services: Students 3,762,333 369,800 - - - - 4,132, Instructional staff 1,621,636 2,887,009 - - - - 4,508, Central administration 2,911,530 339,341 - - - - 3,250, School administration 4,960,539 2,003 - - - - 4,962, Business 1,492,920 16,738 - - - - 1,509, Operation and maintenance of facilities 9,619,159 190,280 - - 59,940 - 9,869, Student transportation 8,668,888 662,606 - - - - 9,331, Food services 1,337 5,918,926 - - - - 5,920, Community services 520,137 12,794 - - - - 532, Capital outlay 426,046 124,785 - 3,038,041 1,006,320 6,177,282 10,772, Debt service: Principal retirement - - 2,520,000 - 76,923 - 2,596, Interest and fiscal charges - - 342,894 - - - 342, Total expenditures 82,578,534 19,126,328 2,862,894 3,038,041 1,159,179 6,177,282 114,942,
Conversion Entry (E), (W)
Sample County Schedule prepared by auditors Amount in Amount to Capital Outlay adjust to Capital Assets purchased from the following functions during the fiscal year: per fin stmt other functions
Expenditures - Student transportation 795, Expenditures - Food services 105, Expenditures - Capital Outlay 11,917,957 10,772,474 1,145, 12,818,
Client was able to directly identify and allocate all but 1.2MM of capital additions for the year. Client allocated remaining additions to programs based on expenditures by program as a percentage of total. Not considered significant given amount of allocation involved and impact on line item, by program.
Conversion Entry (F)
To record capital asset deletions and remove related accumulated depreciation for current year.
Action Needed: Capital asset disposals and related accumulated depreciation for current year must be recorded on the Statement of Net Assets. Losses should not be reported as direct expenses of specific functions, but should instead be included as part of the general government function. If such amounts are insignificant, the adjustment could be made to the current year's depreciation expense for the items.
Conversion Entry:
dr. ACCUMULATED DEPRECIATION-BUILDINGS & IMPROVEMENTS 291, dr. ACCUMULATED DEPRECIATION-FURNITURE & EQUIPMENT 98, dr. ACCUMULATED DEPRECIATION-VEHICLES 106, dr. Expenditures- Instruction 339, cr. BUILDINGS & IMPROVEMENTS 605, cr. FURNITURE & EQUIPMENT 119, cr. VEHICLES 111,
Where do the Numbers Come From?
Current Year Reports from WVEIS Fixed Asset Module:
- Capital Asset Listing by Category for retirements/disposals
- Accumulated Depreciation by Category for retired/disposed assets
Conversion Entry (F)
Information for Notes to the Financial Statements
Beginning Balance Additions Disposals
Ending Balance Capital assets, non-depreciable: Land $ 1,518,770 $ 53,280 $ - $1,572, Construction in process 5,980,915 3,250,170 (5,980,915) 3,250, Total non-depreciable capital assets 7,499,685 3,303,450 (5,980,915) 4,822,
Capital assets, depreciable: Buildings and improvements 94,143,592 7,914,726 (605,028) 101,453, Furniture and equipment 2,455,603 313,922 (119,726) 2,649, Vehicles 8,554,564 355,501 (111,121) 8,798, Total depreciable capital assets 105,153,759 8,584,149 (835,875) 112,902,
Less accumulated depreciation for: Buildings and improvements (21,447,845) (1,205,547) 291,204 (22,362,188) Furniture and equipment (1,534,288) (203,927) 98,951 (1,639,264) Vehicles (4,656,665) (597,247) 106,675 (5,147,237) Total accumulated depreciation (27,638,798) (2,006,721) 496,830 (29,148,689) Total depreciable capital assets, net 77,514,961 6,577,428 (339,045) 83,753, Total capital assets, net $85,014,646 $ 9,880,878 $ (6,319,960) $88,575,
Conversion Entry (H)
To record a gain on the sale of assets
Action Needed: Capital asset disposals and related accumulated depreciation for current year must be
recorded on the Statement of Net Position. Gains on such disposals should be reported as general revenues.
Governmental funds typically report whatever proceeds they receive in connection with the disposal of
capital assets as an other financing source (if material) or an other revenue (if immaterial). This amount
must be removed. The difference is reported as a gain or loss.
Conversion Entry:
dr. ACCUMULATED DEPRECIATION 104,
dr. Other Financing Sources-Proceeds from the disposal of real or personal property 16,
cr. Furniture & Equipment 86,
cr. GAIN- SALE OF CAPITAL ASSETS 16,
Where do the Numbers Come From?
Current Year Reports from WVEIS Fixed Asset Module:
1. Capital Asset Listing by Category for retirements/disposals
2. Accumulated Depreciation by Category for retired/disposed assets
3. Proceeds received from sale of asset.
NOTE: On the revenue allocation tab in the conversion template, code the revenue received and recorded in WVEIS from the proceeds
of the sale as "T" for transfer so it will not be allocated by the spreadsheet formulas in the revenue allocation tab - we are allocating it to
the gain line with this entry. Allowing it to flow through the revenue allocation tab would allocate it twice.
Conversion Entry (I, J, K, L)
Record the increases and decreases to compensated absences in the entity-wide statements
Action Needed: Record compensated absences earned and used to each expenditure function and effect the liability account
To record the beginning balances: (prior year entries I, K)
NOT NEEDED - Implementation Year Only
Conversion Entry (J):
dr. Expenditures - Instruction $ 377,
dr. Expenditures - Support services-student 24,
dr. Expenditures - Support services-instructional staff 22,
dr. Expenditures - Central administration 10,
dr. Expenditures - School administration 34,
dr. Expenditures - Business services 7,
dr. Expenditures - Operation and maintenance 32,
dr. Expenditures - Student transportation 44,
dr. Expenditures - Food services 21,
dr. Expenditures - Community services -
cr. COMPENSATED ABSENCES $ 573,
To record Accrued Sick Leave - prior year entry L - not needed this year. The liability will be part of the fund basis statements so no conversion entry is necessary.
Conversion Entries (M, N, O, P)
Convert debt principal payments to reduction of liability
Action Needed: Debt principal payments are recorded as expenditures in the governmental funds but should be shown as a reduction of the
liability in the entity-wide statements.
To record the beginning balances: (prior year entries M, O)
NOT NEEDED
Conversion Entries (N P):
dr. BONDS PAYABLE $ 2,520,
cr. Expenditures-Debt service-principal retirement $ 2,520,
dr. CAPITAL LEASE PAYABLE $ 76,
cr. Expenditures-Debt service-principal retirement $ 76,
Where do the Numbers Come From?
Long-term debt table
Bonds payable
Balance, Beginning
of Year Restatement Additions Deductions
Balance,
End of Year
Amounts due within
one year
Amounts due past
one year
General obligation debt 10,550,000 - - 2,520,000 8,030,000 2,600,000 5,430,
Compensated absences 175,448 - 573,976 - 749,424 - 749,
Capital lease payable 769,231 - - 76,923 692,308 76,923 615,
Long-term liabilities 14,883,382 7,113,568 573,976 2,596,923 19,974,003 13,179,194 6,794,
Conversion Entry (Q)
Record interest due but not paid as of June 30 - beginning balance
Action Needed: Interest that has accumulated on debt but has not been paid as of June 30 must be accrued in the entity-wide statements to comply with full accrual
accounting. Interest is recorded only when paid in the governmental funds.
Conversion Entry:
NOT NEEDED - Implementation Year Only
To record the beginning balance in accrued interest payable.
Conversion Entry (T)
Revenue Allocation to Functions Action Needed: The fund statements show revenues by source but the entity-wide statements need to have revenues by function.
- dr. Revenues - property taxes $ 32,030, Conversion Entry:
- dr. Revenues-other local sources 3,100,
- dr. Revenues - state sources 62,814,
- dr. Revenues - Federal sources 14,555,
- dr. Revenues-miscellaneous sources 890,
- cr. GENERAL REVENUE-PROPERTY TAXES 32,028,
- cr. GENERAL REVENUE-UNRESTRICTED STATE AID 52,778,
- cr. GENERAL REVENUE-UNRESTRICTED INVESTMENT EARNINGS 946,
- cr. GENERAL REVENUE-UNRESTRICTED GRANTS & CONTRIBUTIONS 1,181,
- cr. CHARGES FOR SERVICES-INSTRUCTION 317,
- cr. CHARGES FOR SERVICES-STUDENTS 83,
- cr. CHARGES FOR SERVICES-INSTRUCTIONAL STAFF 25,
- cr. CHARGES FOR SERVICES-DISTRICT ADMININSTRATION 15,
- cr. CHARGES FOR SERVICES-SCHOOL ADMINISTRATION 23,
- cr. CHARGES FOR SERVICES-BUSINESS SERVICES 7,
- cr. CHARGES FOR SERVICES-OPERATIONS & MAINTENANCE 46,
- cr. CHARGES FOR SERVICES-STUDENT TRANSPORTATION 43,
- cr. OPERATING GRANTS & CONTRIBUTIONS-INSTRUCTION 12,131,
- cr. OPERATING GRANTS & CONTRIBUTIONS-STUDENTS 518,
- cr. OPERATING GRANTS & CONTRIBUTIONS-INSTRUCTIONAL STAFF 354,
- cr. OPERATING GRANTS & CONTRIBUTIONS-DISTRICT ADMININSTRATION 412,
- cr. OPERATING GRANTS & CONTRIBUTIONS-SCHOOL ADMINISTRATION 46,
- cr. OPERATING GRANTS & CONTRIBUTIONS-BUSINESS SERVICES 12,
- cr. OPERATING GRANTS & CONTRIBUTIONS-OPERATIONS & MAINTENANCE 157,
- cr. OPERATING GRANTS & CONTRIBUTIONS-STUDENT TRANSPORTATION 141,
- cr. OPERATING GRANTS & CONTRIBUTIONS-FOOD SERVICES 5,869,
- cr. CAPITAL GRANTS & CONTRIBUTIONS-INSTRUCTION 3,161, cr. OPERATING GRANTS & CONTRIBUTIONS-COMMUNITY SERVICES -
- cr. CAPITAL GRANTS & CONTRIBUTIONS-STUDENTS 217,
- cr. CAPITAL GRANTS & CONTRIBUTIONS-INSTRUCTIONAL STAFF 237,
- cr. CAPITAL GRANTS & CONTRIBUTIONS-DISTRICT ADMININSTRATION 171,
- cr. CAPITAL GRANTS & CONTRIBUTIONS-SCHOOL ADMINISTRATION 263,
- cr. CAPITAL GRANTS & CONTRIBUTIONS-BUSINESS SERVICES 79,
- cr. CAPITAL GRANTS & CONTRIBUTIONS-OPERATIONS & MAINTENANCE 718,
- cr. CAPITAL GRANTS & CONTRIBUTIONS-STUDENT TRANSPORTATION 1,098,
- cr. CAPITAL GRANTS & CONTRIBUTIONS-COMMUNITY SERVICES 300,
Where do the Numbers Come From?
Revenue Check This sheet computes the allocation percentages for revenues not directly identified. This sheet also shows check figures for each revenue category and links to the DW Statement of Activities.
Expense Charges for Services Operating Grants and Contributions Capital Grants and Contributions % from Directly Directly Directly Stmt of Act Identified Allocated Total Identified Allocated Total Identified Allocated Total Total Instruction 61.54% 36,055 281,842 317,897 11,631,609 500,078 12,131,687 - 3,161,455 3,161,455 15,611, Supporting Services Students 4.24% 63,726 19,418 83,144 484,477 34,455 518,932 - 217,819 217,819 819, Instructional Staff 4.62% 4,748 21,159 25,907 317,245 37,542 354,787 - 237,340 237,340 618, District Administration 3.34% - 15,297 15,297 385,354 27,141 412,495 - 171,584 171,584 599, School Administration 5.13% - 23,494 23,494 5,230 41,687 46,917 - 263,540 263,540 333, Business 1.55% - 7,099 7,099 - 12,595 12,595 - 79,627 79,627 99, Operation and Maintenance 10.19% - 46,668 46,668 75,000 82,805 157,805 195,000 523,484 718,484 922, Student Transportation 9.39% - 43,005 43,005 65,103 76,304 141,407 616,024 482,386 1,098,410 1,282, Food Services 0.00% - - - 5,869,561 - 5,869,561 - - - 5,869, Community Services 0.00% - - - - - - - - - - Interest on Long Term Debt 0.00% - - - - - - 300,325 - 300,325 300, Total 100.00% 104,529 457,982 562,511 18,833,579 812,607 19,646,186 1,111,349 5,137,235 6,248,584 26,457,
General Revenues Property taxes 32,028, Unrestricted state aid 52,778, Unrestricted investment earnings 946, Unrestricted grants and contributions 1,181, Gain on sale of capital assets - Transfers In 3,159, Transfers out (3,159,039)
Total Revenues Allocated 113,391,
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
General Special Debt Bond Permanent Capital Current Special Service Construction Improvement Projects Total Expense Revenue Fund Fund Fund Fund Governmental Revenues:
Property taxes 28,737,348 - 3,293,413 - - - 32,030, Other Local sources 1,559,711 1,095,925 105,799 300,325 38,464 - 3,100, State sources 52,962,517 5,537,589 - - - 4,314,510 62,814, Federal sources 1,791,109 12,764,825 - - - - 14,555, Miscellaneous sources 221,859 - - - 668,350 - 890, Total revenues 85,272,544 19,398,339 3,399,212 300,325 706,814 4,314,510 113,391,
