10501     ENTRY NO. 1     [CLAIM FILED FOR REVOLVING FUND ADVANCE]
(Revised 5/87)

Nature of Transaction:

A special claim is filed with the State Controller's Office against an appropriation for an initial revolving fund advance or an augmentation of an existing revolving fund.

Journal Entry for General Ledger Accounts:
Debit:
1130 Revolving Fund Cash
Credit:
3020 Claims Filed

Source:
Document:
Claim Schedule. This type of claim will not be entered in the Claims Filed Register but will be journalized separately.

Explanation:
This entry is made to record (1) initial revolving fund advances from an appropriation and (2) augmentations of an existing revolving fund.

When the Claim Schedule, Std. Form 218, is prepared, a Remittance Advice, Std. Form 404, also will be prepared and submitted to the State Controller's Office in the same manner as for claims to reimburse the revolving fund. (See SAM Section 8170.)

By statute, revolving fund advances must be returned to the appropriation from which drawn upon expiration of the period of availability of the appropriation. In lieu of physically returning a revolving fund and withdrawing a new advance at the end of each fiscal year, agencies may request the State Controller's Office to apply the existing revolving fund as an increase in the balance of the appropriation from which it was drawn and as a withdrawal from the appropriation of the new fiscal year. Requests for such transfers are submitted to the State Controller's Office on a "Request for Revolving Fund Advance" form prescribed and supplied by that office.

10502     ENTRY NO. 2  [ALLOTMENTS ARE ENCUMBERED]
(Revised 5/87)

Nature of Transaction:
Materials, supplies and equipment are ordered, capital outlay projects are authorized, services are contracted for or estimated, and employment of personnel is provided for by extending authorized positions or establishing positions. As a consequence, budget allotments are encumbered for the estimated amount of these future expenditures.

Journal Entry for General Ledger Accounts:
Debit:
6150 Encumbrances
Credit:
5350 Reserve for Encumbrances

Source:
Documents:
Purchase Estimates
Printing Requisition—Invoices
Payroll Estimates
Leases
Standard Agreements
Lag Encumbrances
Sub-purchase Orders
Public Works Project Authorization and Transfer Requests
Sundry Encumbrance Documents
Register:
Estimates Register or Journal Entry made from tape of batch control sheets which were prepared to control postings to the Allotment-Expenditure Ledger.

Explanation:
The recordation of encumbrance documents is the initial step in the accounting of expenditures. As encumbrance documents are recorded, the unencumbered balances of allotments are reduced. In this way budgeted funds are "earmarked" for payment of proposed expenditures and control over these expenditures is exercised by agency executive officers.

Note:
The purchase estimate, while not considered a legal obligation, is used as a source document for recording encumbrances. Adjustments to amounts encumbered by purchase estimates may be made as necessary to account for differences between the purchase estimate and the Purchase Order issued by the Office of Procurement, Department of General Services. Claims arising from purchase estimate encumbrances will be paid by the State Controller only if the Purchase Order is issued and dated prior to the date the appropriation availability ceases.

ESTIMATE REGISTER

10503     ENTRY NO. 3 [CLAIMS ARE FILED]
(Revised 5/87

Nature of Transaction:
Claims are filed with the State Controller's Office for payment.

Journal Entry for General Ledger Accounts:
Debit:
3410 Revenue Collected in Advance a/

5350 Reserve for Encumbrances b/

8000 Revenue c/

9000 Appropriation Expenditures d/

9893 Prior-Year Appropriation Adjustments e/

Credit:
3020 Claims Filed f/
6150 Encumbrances b/

a/ amount of claims filed for refunds of revenue collected in advance.
b/ amount of encumbrances liquidated by claims filed.
c/ amount of claims filed for refunds of revenue.
d/ amount of claims filed against appropriations currently available for encumbrance.
e/ amount of claims filed against prior-year appropriations that are no longer available for encumbrance.
f/ total amount of claims filed less claim corrections as recorded in the Claims Filed Register.

Source:
Documents:
Schedule of Bills Filed
Notice of Claim Corrections
Register:
Claims Filed Register
Explanation:
The amount of claims filed less claim corrections received is summarized in this entry. From this summary (1) expenditures and refunds of revenue with the accompanying liability for claims filed are recorded and (2) currently outstanding encumbrances are liquidated.

CLAIM FILES REGISTER

10504     ENTRY NO. 4 [PAYROLLS ARE PAID]
(Revised 5/87)

Source:
Documents:
Notice of State Payroll Revolving Fund Transfer, Form CD–62. (Transfers coded type 1, 7, and 9 are transfers to the State Payroll Revolving Fund.  Transfers coded type 3, 4, 5, 6, and 8 are transfers from the State Payroll Revolving Fund. See Section 8590 for additional explanation.)
Controller's Register of Accounts Receivable.  (These Controller's registers list overpayments reported to or by the State Controller's Office and will be covered by transfers type 5 when the overpayments are recovered.)
Register:
Payroll Expenditure Register

Explanation:
Under the uniform state payroll system, agency payrolls are prepared by the State Controller's Office and salary warrants are drawn on the State Payroll Revolving Fund. The State Controller's Office transfers from the agency's appropriation and/or fund the gross amount of each such payroll plus the amount of related state contributions for employees' retirement, OASDI, health and dental benefits, and returns by transfer to the agency's appropriation and/or fund any amounts remaining in the State Payroll Revolving Fund as a result of warrants voided or redeposited and overpayments recovered. These transfers, supported by payroll warrant register forms, are recorded by the agency in a Payroll Expenditure Register, the net total of which represent payroll expenditures to be recorded in the agency accounts. See Sections 8590 and 8593 for additional explanation.

PAYROLL EXPENDITURE REGISTER

(1) The debt to Account No. 1311 in this register is the gross amount of the overpayment as recorded from the Controller's accounts receivable register.

(2) The credit to Account No. 1311 is the gross amount of the overpayment recovered and returned to the agency appropriation by transfer.  The debit to Account No. 1311 for the same overpayment would have been recorded in the Payroll Expenditure Register for the month in which the State Controller's Office prepared an accounts receivable register covering the overpayment.

(3) Except at the close of the fiscal year, the transfer covering the main regular monthly payroll for a given monthly pay period is recorded in the Payroll Expenditure Register for that month even though the transfer may be dated in the following month.  Payroll transfers dated in July covering payrolls for services rendered in June must be recorded in the Payroll Expenditure Register for July.

10505     ENTRY NO. 5 [CLAIMS ARE PAID]
(Revised 5/87)

Nature of Transaction:

Notices of Claims Paid, Form CD–102, are received from the State Controller's Office for warrants issued in payment of claims. The warrants are either (1) centrally mailed to payees by the State Controller's Office or (2) delivered for distribution to payees to the agency that submitted the claim schedule. (This entry is made as a transaction of the month in which the Controller's Warrants were issued as indicated on Form CD–102.) See 10515 for entry to record settlement of "NO WARRANT" claims.

Journal Entry for General Ledger Accounts:
Debit:
3020 Claims Filed
Credit:
1140 Cash in State Treasury

Source:
Document:
Notice of Claims Paid, Form CD–102

Register:
None. Use an adding machine tape of Forms CD–102

Explanation:
This entry is made at the close of each month to record Notices of Claims Paid, Form CD–102, received from the State Controller's Office. The total of warrants issued as shown on each Form CD–102 is checked with the amount of the claim filed. Inclusive warrant numbers or warrant dates are entered on agency copies of Schedule of Bills Filed, Form 210. The Forms CD–102 are filed and monthly an adding machine tape of the CD–102's dated in that month is used as the basis for the entry to the general ledger accounts.

10506     ENTRY NO. 6 [INVOICES ARE PREPARED]
(Revised 5/87)

Nature of Transaction:

Agency prepares invoices for abatements and for reimbursements, revenue, and other income.

Journal Entry for General Ledger Accounts:
Debit:
1311 Accounts Receivable—Abatements a/
1312 Accounts Receivable—Reimbursements b/
1313 Accounts Receivable—Revenue c/
1319 Accounts Receivable—Other d/
Credit:
1600 Provision for Deferred Receivables e/
8100 Reimbursements f/
9000 Appropriation Expenditures g/
9893 Prior-Year Appropriation Adjustments h/
 
a/ amount of expenditure abatements billed and all sales tax billed regardless of type of transaction. (See SAM Section 10220 for definition of an abatement.)
b/ amount of reimbursements billed.
c/ amount of revenue items billed.
d/ amount of Accounts Receivable—Other billed.
e/ amount of items billed in "c" and "d" plus (1) the amount of any reimbursement items billed which, according to law, must be credited to an appropriation current at the time of collection or at the time cash is ordered into the treasury and (2) any other receivables for which a reserve is deemed appropriate.
f/ amount of current year reimbursement items billed, excluding any amounts of reimbursements which according to law must be credited to an appropriation current at the time of collection or at the time cash is ordered into the treasury.
g/ amount of current year appropriation expenditure abatement items billed and all sales tax billed regardless of type of transaction.
h/ amount of abatement and reimbursement items billed that are applicable to prior fiscal year appropriations no longer available for encumbrance.

Source:
Document:Agency invoice Register:Invoice Register

Explanation:

This entry is used to record the billing for unpaid abatements, reimbursements, revenue, and other income items. In most cases revenue and abatement items are collected when due and normally require no billings. When Accounts Receivable—Revenue and Accounts Receivable—Other are billed, they are credited to a reserve account until collected and cleared as revenue. In contrast to this procedure, abatements are applied as decreases of expenditures and most types of reimbursements are applied as income when billed. Certain types of reimbursements are fully reserved with final accounting to be made either at the time of collection or at the time remittances are ordered into the treasury, depending upon the specific law governing the transaction. The bills are recorded in the Invoice Register as of the date they are prepared.

Abatements and reimbursements that have been accrued previously as receivables but not billed will not be included in this entry when billed. However, Accounts No. 1311, 1312, 1600, and 9893 will be adjusted for the difference between the amounts billed and the amounts previously accrued.

INVOICE REGISTER

10507     ENTRY NO. 7 [CASH IS RECEIVED]
(Revised 5/87)

Nature of Transaction:

General Cash is received by the agency for deposit in the agency's general checking account maintained with the State Treasurer. Such receipts consist of abatements, reimbursements and revenue not previously billed; collections applicable to accounts receivable for items previously billed; and items whose identity or accounting cannot readily be determined.

Journal Entry for General Ledger Accounts:
Debit:
1110 General Cash a/
1316 Accounts Receivable—Cash Shortages b/
1600 Provision for Deferred Receivables c/
Credit:
1311 Accounts Receivable—Abatements d/
1312 Accounts Receivable—Reimbursements e/
1313 Accounts Receivable—Revenue f/
1315 Accounts Receivable—Dishonored Checks g/
1316 Accounts Receivable—Cash Shortages h/
1319 Accounts Receivable—Other i/
3110 Due to Other Funds or Appropriations j/
3410 Revenue Collected in Advance k/
3420 Reimbursements Collected in Advance 1/
3710 Cash Overages m/
3730 Uncleared Collections n/
8000 Revenue o/
8100 Reimbursements p/
9000 Appropriation Expenditures a/
9892 Prior-Year Revenue Adjustments a/
9893 Prior-Year Appropriation Adjustments s/
 
a/ total cash received for deposit in the General Cash account.
b/ amount of cash shortages occurring during the month for which cashiers are held accountable.
c/ amount of cash received applicable to receivables accounted during the year on a fully-reserved basis and applied when collected to the appropriate revenue account.
d/ amount of cash receipts applicable to expenditure abatements receivables (excluding collections from  employees for salary overpayments).
e/ amount of cash receipts applicable to reimbursement receivables.
f/ amount of cash receipts applicable to revenue receivables.
g/ amount of cash received in payment of dishonored checks (unless alternate procedure is used).
h/ amount of cash received from cashiers in payment of cash shortages.
i/ amount of cash received in payment of other accounts receivable.
j/ amount of cash received applicable to revenue collected for other funds earned in the current fiscal year plus cash received applicable to revenue collected for other funds but not identifiable to the fiscal year in which it was earned.
k/ amount of cash received which will be accounted as revenue of a succeeding fiscal year.
1/ amount of cash received which will be accounted as a reimbursement to a current or subsequent fiscal year's appropriation when earned.
m/ amount of cash received representing cash overages.
n/ amount of cash received for items whose identity or accounting cannot be readily determined; amount of cash received applicable to reimbursements (billed or unbilled) which, according to law, can be applied only at the time the cash is ordered into the treasury; or salary overpayments collected from employees by the agency.
o/ amount of cash received applicable to revenue earned in the current fiscal year plus cash received applicable to revenue but not identifiable to the fiscal year in which it was earned.
p/ amount of cash received applicable to (1) billed reimbursements which, according to law, can be applied only at the time cash is received and (2) all unbilled reimbursements except those applicable to prior fiscal years and those that can be applied only at the time cash is ordered into the treasury.
q/ amount of cash receipts applicable to current year expenditure abatements not billed or accrued previously.
r/ amount of cash received applicable to revenue (except reimbursements) which was identified as being earned as of the preceding June 30.
s/ amount of cash received in excess of amounts accrued in prior fiscal years as expenditure abatements or reimbursements. If the amount of cash received is less than amounts accrued in prior fiscal years, Account No. 9893 will be debited.

Source:
Document:
General Cash Receipt
Register:
General Cash Receipts Register

Explanation:
The recordation of cash receipts deposited in the general cash account is illustrated in this entry. The General Cash Receipts Register will show both the date of receipt and the date of deposit of all cash receipts. All cash collections must be deposited in approved depositories (see SAM Section 8031) and are later either (1) refunded if determined to be unacceptable or (2) remitted to the State Treasury at least once each month. Current collections are used also to satisfy bank demands for reimbursement for dishonored checks until ultimate collection is made from the drawers or relief from accountability is granted by the State Board of Control.
Accounts Receivable—Revenue and Accounts Receivable—Other items are deferred when recorded. They must, therefore, be applied as revenue when collected.

Reimbursements may be of one of the following categories depending upon specific laws governing the accounting of such transactions: (1) receipts which accrue to the year in which the transaction occurred, (2) receipts which accrue to the year in which cash is collected by the agency, and (3) receipts which accrue to the year in which cash is ordered into the treasury. Transactions in the third category, when collected are credited to a suspense account (Uncleared Collections) pending receipt of notice from the State Controller's Office that cash has been ordered into the treasury (see SAM Section 10510). Items in category 1 (if not billed or accrued previously) and in category 2 are applied at the time cash is collected by the agency.

GENERAL CASH RECEIPT'S REGISTER ILLUSTRATION

10508     ENTRY NO. 8 [UNCLEARED COLLECTIONS ARE APPLIED]
(Revised 5/87)

Nature of Transaction:

Uncleared collections (other than those applied through the Controller's Receipts Register in Entry No. 12) and cash overages are applied.

Journal Entry for General Ledger Accounts:
Debit:
1600 Provision for Deferred Receivable a/
3710 Cash Overages b/
3730 Uncleared Collections c/
Credit:
1311 Accounts Receivable—Abatements d/
1312 Accounts Receivable—Reimbursements e/
1313 Accounts Receivable—Revenue f/
1315 Accounts Receivable—Dishonored Checks g/
1316 Accounts Receivable—Cash Shortages h/
1319 Accounts Receivable—Other i/
3110 Due to Other Funds or Appropriations j/
3410 Revenue Collected in Advance k/
3420 Reimbursements Collected in Advance 1/
8000 Revenue m/
8100 Reimbursements n/
9000 Appropriation Expenditures o/
9892 Prior-Year Revenue Adjustments p/
9893 Prior-Year Appropriation Adjustments q/
 
a/ amount of collections now applied to receivables accounted during the year on a fully-reserved basis and applied when collected to the appropriate revenue account.
b/ amount of cash accounted previously as cash overages, now applied as revenue, less any amounts cleared from the uncleared collections account to the cash overages account.
c/ amount of cash receipts accounted previously as uncleared collections, now applied to appropriate accounts.
d/ amount of collections now applied to expenditure abatement receivables (excluding collections from employees for salary overpayments).
e/ amount of collections now applied to reimbursement receivables.
f/ amount of collections now applied to revenue receivables.
g/ amount of collections now applied in payment of dishonored checks.
h/ amount of collections now applied in payment of cash shortages.
i/ amount of collections now applied to other accounts receivable.
j/ amount of collections now applied as revenue collected for other funds earned in the current fiscal year plus collections now applied as revenue collected for other funds but not identifiable to the fiscal year in which they were earned.
k/ amount of collections now applied to revenue of the succeeding fiscal year.
1/ amount of collections now applied as a reimbursement to a current or subsequent fiscal year's appropriation.
m/ amount of collections now applied as revenue earned in the current fiscal year plus collections now applied as revenue but not identifiable to the fiscal year in which they were earned.
n/ amount of collections now applied as current year reimbursements that were not billed previously or were deferred when billed because, according to law, they are to be applied to the year in which they are collected by the agency.
o/ amount of collections now applied as abatements to current year appropriation expenditures.
p/ amount of collections now applied to revenue (except reimbursements) which was identified as being earned as of the preceding June 30.
q/ amount of collections now applied in excess of amounts accrued in prior fiscal years as expenditure abatements or reimbursements. If the amount of cash cleared is less than amounts accrued in prior fiscal years, Account No. 9893 will be debited.

Source:
Documents:
Licenses, permits, or other documents evidencing revenue, reimbursements, and abatements earned.
Register:
Clearance Register

Explanation:
Cash receipts which could not be identified, or for which accounting treatment could not be determined, at time of collection are applied to appropriate accounts by this entry. Varying circumstances determine the clearance of each transaction, but as each item or group of items is cleared it is entered in the Clearance Register and applied to appropriate accounts.
Cash overages also are cleared in this register. These items should be cleared as revenue at least once each quarter.

CLEARANCE REGISTER

10509     ENTRY NO. 9  [ACCOUNTS RECEIVABLE ARE WRITTEN OFF]
(Revised 06/08)

Nature of Transaction:
Accounts receivable are written off upon receipt of an approved Application for Discharge from Accountability Form, STD. 27 from the State Controller's Office (SCO).  Accounts receivable of less than $250.00 can be written off if the CVCGCB has provided blanket authority to the department.  (See SAM Section 8776.6).
Cash shortages may be written off without approval in certain instances. (See SAM Section 8072).

Journal Entry for General Ledger Accounts:
Debit:

1600 Provision for Deferred Receivables a/
3730 Uncleared Collections b/
8000 Revenue c/
8100 Reimbursements d/
9000 Appropriation Expenditures e/
9892 Prior Year Revenue Adjustments f/
9893 Prior-Year Appropriations Adjustments g/
Credit:

1311 Accounts Receivable-Abatements h/

1312 Accounts Receivable-Reimbursements i/

1313 Accounts Receivable-Revenue j/

1315 Accounts Receivable-Dishonored Checks k/

1316 Accounts Receivable-Cash Shortages l/

1319 Accounts Receivable-Other m/

a/ amount of accounts receivable for deferred revenue, deferred reimbursements, or other deferred accounts receivable.
b/ amount of accounts receivable for dishonored checks or identified cash shortages applicable to reimbursements which according to law augment the appropriation current at the time of their being ordered into the Treasury.
c/ amount of accounts receivable for dishonored checks or identified cash shortages applicable to revenue and all accounts receivable for unidentified cash shortages.
d/ amount of accounts receivable for reimbursements, dishonored checks, or identified cash shortages, applicable to current fiscal year appropriation reimbursements.
e/ amount of accounts receivable for abatements, dishonored checks, or identified cash shortages, applicable to current fiscal year appropriation expenditures.
f/ amount of accounts receivable which relate to dishonored checks or identified cash shortages applicable to revenue which was identified as being earned as of the preceding June 30.

g/ amount of accounts receivable for abatements, reimbursements, dishonored checks, or identified cash shortages, applicable to prior years appropriations but not yet reverted.

h/ amount of Accounts Receivable-Abatements.

i/ amount of Accounts Receivable-Reimbursements.

j/ amount of Accounts Receivable-Revenue.

k/ amount of Accounts Receivable-Dishonored Checks.

l/ amount of Accounts Receivable-Cash Shortages.

m/ amount of accounts receivable for abatements, reimbursements, dishonored checks, or identified cash shortages, applicable to reverted appropriations or other accounts receivable not otherwise classified.

Source
Document:
Approved Application for Discharge from Accountability or blanket authority (SAM Section 8776.6), or a cash shortage report (SAM Section 8072, number 1).

Explanation:
Government Code (GC) Section 13941 provides that under certain conditions state departments may file applications with the SCO for discharge from accountability for the collection of taxes, licenses, fees, or other money due and payable to the state.  However, departments will not file an application with the SCO until they have attempted collection through the offset claim procedures detailed in SAM Sections 8790.1-8790.8.  All applications filed with the SCO must state the offset steps undertaken. 

In addition, GC Section 13943.2 provides that upon authorization of the CVCGCB, departments are not required to collect taxes, license, fees, or money owed to the state if the amount to be collected is two hundred fifty dollars ($250.00) or less and the amount owed to the state is uncollectible or does not justify the cost of collection. 
For receivables that are not a result of a cash shortage, this entry shows the possible adjustments made to agency accounts to write off those accounts receivable.

For revenue, reimbursement, or abatement receivables that are a result of a cash shortage, this entry shows the possible adjustments made to agency accounts.  If amounts in excess of actual cash collections for revenue, reimbursement, or abatement transactions have been remitted to the State Treasury, it will be necessary for the agency to short the next remittance to the Treasury for such amounts included in this entry.
Deficiencies in an established fund balance (e.g., revolving fund, depositors' trust fund, or uncleared collections) are not written off by this entry.  (SAM Section 8072).

10510     ENTRY NO. 10 [GENERAL CASH IS DISBURSED]
(Revised 2/99)

Nature of Transactions:
Cash is disbursed from the agency's General Cash account as refunds to payers, as remittances to the State Treasury, or to banks for dishonored checks.

Journal Entry for General Ledger Accounts:
Debit:
1150 Cash in Transit to State Treasury a/
1315 Accounts Receivable—Dishonored Checks b/
3730 Uncleared Collections c/
8000 Revenue d/
9892 Prior Year Revenue Adjustments e/
Credit:
1110 General Cash f/
 
a/ = amount of general cash remitted for deposit in the State Treasury.
b/ = payments to banks for dishonored checks.
c/ = amount of suspense items refunded to payers and/or any unclaimed moneys in the General Cash account remitted to the State Treasury for deposit in the Special Deposit Fund.
d/ = amount of revenue refunded to payers.
e/ = amount of prior year revenue refunded to payers.
f/ = total cash disbursements.

Source:
Document:
General Cash Check
Register:
General Cash Disbursement Register

Explanation:
All general cash disbursements are made by check. General cash disbursements by coin or currency are not permitted. Refunds to payers because of denied applications or for other reasons are made daily or as refunds are determined and approved. Remittances to the State Treasury of revenue, expenditure abatements, and reimbursements are made at least once each month or more frequently if volume warrants or special regulations require. All checks for remittance to the treasury are made payable to the State Treasurer. (See SAM Section 8091 for remittance procedure.)
State agencies are notified by banks whenever checks are dishonored. Upon notice that a check has been dishonored, the agency reimburses the bank with a check drawn upon the agency General Cash account. Accounts Receivable—Dishonored Checks is debited at the time this check is drawn. When another check or legal tender is substituted by the drawer, General Cash is debited and Accounts Receivable—Dishonored Checks is credited.  (See Entry No. 11 for alternate procedure.)

Dishonored checks relating to revolving fund or agency trust transactions are cleared with checks drawn against the respective revolving fund or agency trust accounts.  In such cases, the revolving fund receivable or depositor's account will be debited instead of Accounts Receivable—Dishonored Checks.

Transfer of Unclaimed Checks to the State Treasury:
If a general cash check dated before January 1, 1998 is (1) returned in the mail and the agency is unable to locate the payee, or (2) is outstanding for two years, the check is canceled in the General Cash Disbursements Register by recording the amount of the check as a debit to General Cash and a credit to Uncleared Collections.  A check is drawn payable to the State Treasurer to remit this amount to the Special Deposit Fund Unclaimed Trust Account.  (See SAM Section 18424.5).  The amount of this check is recorded as a debit to Uncleared Collections and a credit to General Cash.

10511     ENTRY NO. 11 [ALTERNATE ENTRY FOR DISHONORED CHECKS]
(Revised 5/87)

Nature of Transaction:
Cash is disbursed from the agency's General Cash account to reimburse banks for dishonored checks. (This alternate procedure is to be used by agencies that desire to charge dishonored checks to revenue accounts previously credited.)

Journal Entry for General Ledger Accounts:
Debit:
1315 Accounts Receivable—Dishonored Checks a/
3110 Due to Other Funds or Appropriations b/
8000 Revenue c/
8100 Reimbursements d/
Credit:
1110 General Cash e/
1600 Provision for Deferred Receivable f/
 
a/ total amount of dishonored checks purchased.
b/ amount of dishonored checks previously accounted as revenue collected for other funds.
c/ amount of dishonored checks previously accounted as revenue.
d/ amount of dishonored checks applicable to reimbursements that are not to be accounted as reimbursements until collected or until ordered into the State Treasury.
e/ total amount of dishonored checks purchased.
f/ amount of dishonored checks that will not be credited to income accounts until collected and the receivables for which must be fully reserved (b+c+d).

Source:
Document:
Bank debit notice of dishonored checks
Register:
General Cash Disbursements Register

Explanation:
This entry shows the alternate procedure for recording dishonored checks to that shown in Entry No. 10. It would actually be made as a part of Entry No. 10, and the explanation pertaining to General Cash disbursements under that entry applies. This entry directly adjusts the accounts affected by dishonored check transactions. When the dishonored check is redeposited or a replacement check is received:
* increase the cash and revenue accounts, and
* decrease the receivable and provision accounts.
At year-end, accrue the amount of dishonored checks expected to be collected in the next fiscal year. (For a similar accounting entry, see Adjusting Entry No. A–9.)

10512     ENTRY NO. 12 [CONTROLLER'S RECEIPT IS RECEIVED]
(Revised 5/87)

Nature of Transaction:
Controller's receipt (the certification copy of Controller's Remittance Advice Form CA21) ordering cash into the State Treasury is received by the agency. (This entry is made in the agency accounts as a transaction of the month indicated by the date of the Controller's receipt.)
Journal Entry for General Ledger Accounts:
Debit:
1140 Cash in State Treasury a/
Credit:
1150 Cash in Transit to State Treasury b/
Note 1:  The following entry is made when the agency receives the certification copy of Controller's Remittance Advice, Form CA21, for salary overpayments ordered into the State Treasury to the credit of the State Payroll Revolving Fund.
Debit:
3730 Uncleared Collections c/
Credit:
1150 Cash in Transit to State Treasury d/
Note 2: The following entry is also made for the amount of reimbursements included in "c" which, according to law, must be applied to the appropriation current at the time moneys are ordered into the State Treasury.
Debit:
3730 Uncleared Collections e/
Credit:
8100 Reimbursements e/
 
a/ amount credited to funds other than the State Payroll Revolving Fund.
b/ total amount of cash in transit credited to treasury funds by the State Controller's Office.
c/ amount of salary overpayments collected from employees and remitted by the agency to the credit of the State Payroll Revolving Fund. (See Section 8593.2 for explanation of such transactions.)
d/ Same as "c/".
e/ amount now applied reimbursements.

Source:
Document:
Controller's receipt (Certification copy of Controller's Remittance Advice Form CA21)

Register:
Controller's Receipts Register (if volume justifies)

Explanation:
This entry is made to clear the Cash in Transit to State Treasury account and to liquidate the Uncleared Collections Account when the agency receives the Controller's certification of cash ordered into the State Treasury. Cash in Transit to State Treasury may be comprised of (1) amounts pertaining to an agency operating fund and/or (2) amounts representing salary overpayments being remitted to the State Payroll Revolving Fund. Uncleared Collections may be comprised of (1) Reimbursements and/or amounts representing salary overpayments being remitted to the State Payroll Revolving Fund.

Included in this entry also is the application of reimbursements of the type that, according to law, must be credited to the appropriation current at the time moneys are ordered into the State Treasury.

When Controller's receipts are received by the agency, corresponding remittance advices are removed from the uncleared file, compared with the receipts to note any differences, and then discarded. The Controller's receipted copy is the only copy filed in the cleared file.

CONTROLLER'S RECEIPTS REGISTER

10513     ENTRY NO. 13 [CASH IS RECEIVED THAT IS NOT EXPECTED TO BE DEPOSITED]
(Revised 5/87)

Nature of Transaction:

Cash is received that is not expected to be deposited.

Journal Entry for General Ledger Accounts:
Debit:
1190 Cash on Hand

Credit:
3730 Uncleared Collections

Source:
Document:
Cash Receipt
Register:
Cash on Hand Register

Explanation:
When cash or checks are received that (1) normally will be returned to payers without being deposited, such as bid deposits, or (2) are payments of smaller amounts than are due the State which if deposited would prejudice the State's right to make further collections, they are retained in agency custody as cash on hand until their final disposition is determined. These items subsequently will be either (1) returned to the payers or (2) applied and deposited in the General Cash account.
Agencies will maintain a register of such items received, on which subsequently will be noted the date on which each item is returned or deposited. The open items in this register will be proved or reconciled monthly to the amount of such cash on hand and to the balance of Account No. 1190.
When these items are returned to the payers or deposited the above entry is reversed. When these items are deposited in the General Cash account, the amount is recorded in the General Cash Receipts Register and included in Entry No. 7.

10514     ENTRY NO. 14 [ADVANCE IS MADE TO A SERVICE AGENCY] 
(Revised 2/99)

Nature of Transaction:

A transfer is received from the State Controller's Office for an amount advanced from the agency's appropriation or fund to a service agency. (This entry is recorded as a transaction of the month indicated by the date of the Controller's Reserved Appropriation Advance.)

Journal Entry for General Ledger Accounts:
Debit:
1730 Prepayments to Other Funds or Appropriations
Credit:
1140 Cash in State Treasury

Source:

Document:
Controller's Reserved Appropriation Advance
Register:
Controller's Transfer Register (if volume warrants)

Explanation:
This entry is made to record the amount advanced from the agency's appropriation or fund to a service agency or fund such as the Service Revolving Fund.  This entry will not be used to record advances to the Water Resources Revolving Fund, the State Highway Account, State Transportation Fund, or the Architecture Revolving Fund.  Advances to these funds will be recorded as shown in Entry No. 17.

Note:  This entry would be reversed for any portion of the advance returned from the service agency or fund.

10515     ENTRY NO. 15 ["NO WARRANT" CLAIMS ARE SETTLED]
(Revised 2/99)

Nature of Transaction:
"NO WARRANT" claims are settled. (This entry will be accounted as a transaction of the month indicated by the date of the Controller's No-Warrant Transaction.)

Journal Entry for General Ledger Accounts:
Debit:
3020 Claims Filed
Credit:
1140 Cash in State Treasury

Source:
Document:
Controller's No-Warrant Transaction
Register:
Controller's Transfer Register (if volume justifies use of registers)

Explanation:
This entry records the settlement of "NO WARRANT" claims.

10516     ENTRY NO. 16 [STATE CONTROLLER'S JOURNAL ENTRY IS RECEIVED FOR SERVICES FROM STATE PRINTING]
(Revised 5/87)

Nature of Transaction:
A State Controller's Journal Entry is received for services from the Office of State Printing. This entry is recorded as a transaction of the date of the Controller's document.

Journal Entry for General Ledger Accounts:
Debit:
5350 Reserve for Encumbrances
9000 Appropriation Expenditures (or other appropriate expenditure account)
Credit:
1730 Prepayment to Other Funds or Appropriations
6150 Encumbrances

Source:
Document:
Controller's Journal Entry supported by copies of Std. Form 67 and journal entry request.
Register:
Controller's Journal Entry Register (if volume warrants)

Explanation:

This entry is made to record the Controller's Journal Entry for payment to the Office of State Printing for printing services and/or supplies received. Agencies will have previously received copies of Printing Requisition–Invoice, Std. Form 67, and the Office of State Printing's journal entry request. (See SAM Sections 8472.1–8472.41.)

The entries would be reversed for State Controller's Journal Entries that reverse previous journal entries.

10517     ENTRY NO. 17 [ADVANCE IS MADE TO A CONSTRUCTION AGENCY]
(Revised 5/87)

Nature of Transaction:

A Controller's Transfer is received relating to a Public Works Project Authorization and Transfer Request or other document authorizing work to be performed for the agency by the (1) Office of The State Architect, (2) Department of Transportation, or (3) Department of Water Resources. (This entry is made as of the month indicated by the date of the Controller's Transfer.)

Journal Entry for General Ledger Accounts:
Debit:
1730 Prepayments to Other Funds or Appropriations a/
5350 Reserve for Encumbrances b/
9000 Appropriation Expenditures c/
9893 Prior-Year Appropriation Adjustments d/
Credit:
1140 Cash in State Treasury a/
and
5330 Reserve for Prepaid Items e/

6150 Encumbrances b/
 
a/ amount transferred to the respective funds or appropriations.
b/ amount of encumbrance liquidated by the transfer.
c/ amount chargeable to appropriations currently available for encumbrance.
d/ amount chargeable to prior-year appropriations no longer available for encumbrance but not yet reverted.
e/ total amount of transfers.

Source:
Document:
Controller's Transfer supported by an approved transfer request.
Register:
Controller's Transfer Register (if volume justifies.)

Explanation:
Upon receipt of an approved transfer request, the State Controller's Office transfers the estimated amount of the project cost to the fund under control of the agency doing the work. At this time the transaction is recorded as an appropriation expenditure and also as a fully-reserved prepayment.
The transfer will be accounted as an expenditure of the fiscal year in which the Controller's Transfer is dated, unless the transfer request was approved and encumbered prior to the June 30 on which the availability of the appropriation for encumbrance expired but the transfer is made in the following fiscal year.

10518     ENTRY NO. 18 [EXPENDITURES FOR PROJECT PREPAYMENTS ARE REPORTED BY A CONSTRUCTION AGENCY]
(Revised 5/87)

Nature of Transaction:

Reports of expenditures made during the fiscal year from project advances on projects not yet completed are received from the Department of Transportation or Department of Water Resources.

Journal Entry for General Ledger Accounts:
Debit:
2350 Construction Work in Progress a/
5330 Reserve for Prepaid Items b/
Credit:
1730 Prepayments to Other Funds or Appropriation b/
5200 Investment in General Fixed Assets a/
 
a/ amount of expenditures on projects that will be capitalized in the property accounts when completed.
b/ amount of expenditures made during the period of the report, both for projects that will be capitalized upon completion and other work that will not be capitalized.

Source:
Document:
Reports of expenditures by construction agencies.

Explanation:
When construction agencies report to client agencies the expenditures made from prepayments, the prepayment account and the contra reserve are reduced by the amount of such expenditures, thereby reducing the prepayment account to the amount still unexpended by the construction agency. If the expenditures are for a project that will be capitalized in the property records, the amount of such expenditures on uncompleted projects also will be debited to Account No. 2350 and credited to Account No. 5200. No entry to the expenditure accounts is required since the total amount advanced will have been accounted as an expenditure.

10519     ENTRY NO. 19 [A PROJECT IS COMPLETED BY A CONSTRUCTION AGENCY]
(Revised 5/87)

Nature of Transaction:

The Office of the State Architect, Department of Transportation, or the Department of Water Resources reports a project completed, and the State Controller's Office returns by transfer the unexpended portion of prepayments to the agency's appropriation. (This entry is made as a transaction of the month indicated by the date of the Controller's Transfer.)

Journal Entry for General Ledger Accounts:
Debit:
1140 Cash in State Treasury a/
2331 Improvements Other than Buildings b/
2341 Equipment c/
5330 Reserve for Prepaid Items d/

Credit:

1730 Prepayments to Other Funds or Appropriation d/
2350 Construction Work in Progress e/
5200 Investment in General Fixed Assets f/
9000 Appropriation Expenditures g/
9891 Refunds to Reverted Appropriations h/
9893 Prior-Year Appropriation Adjustments i/
 
a/ amount of prepayments unexpended and now returned.
b/ total cost of improvements other than buildings now being capitalized, including preliminary planning costs as reported by the Office of the State Architect whether or not paid from an appropriation made to the agency.
c/ total cost of any equipment included in the project now being capitalized.
d/ amount of prepayments still outstanding on the agency's books for the particular project now completed.
e/ amount previously accounted in this account and as a reduction of prepayments for the particular project now completed.
f/ amount of the difference between the amount previously accounted as Construction Work in Progress and the amount capitalized (b+c-e).
g/ amount of "a" that is applicable to an appropriation still available for encumbrance.
h/ amount of "a" that is applicable to an appropriation that has reverted.
i/ amount of "a" that is applicable to an appropriation no longer available for encumbrance but not yet reverted.

Source:
Document:
Controller's Transfer supported by a project completion report.

Explanation:
After a project is completed a report is issued by the construction agency and any unexpended balance in the project prepayment is returned to the client agency's appropriation. Concurrently the cost of the project now completed, including preliminary planning costs, if a capital improvement as distinguished from a maintenance or repair project, is entered in the fixed asset accounts. The project completion report relating to such projects will be analyzed as to the amounts of (1) equipment and (2) improvements other than buildings included in the project. (See SAM Section 8613.)

10520     ENTRY NO. 20 [FIXED ASSETS ARE ACQUIRED]
(Revised 5/87)

Nature of Transaction:

Fixed assets (other than that obtained through project prepayments to the Office of the State Architect, the Department of Transportation, or the Department of Water Resources) are acquired.

Journal Entry for General Ledger Accounts:

Debit:
2310 Land
2331 Improvements Other than Buildings
2341 Equipment
2410 Intangible Assets
Credit:
5200 Investment in General Fixed Assets

Source:
Documents:
Claim Schedule
Receipt, letter, or other document evidencing acquisition by gift.
Duplicate copy of Property Record Card, Std. Form 153a.
Transfer of Location of Equipment, Std. Form 158 (for transfers from other agencies).
Work Order, Std. Form 103, or similar form for items manufactured locally.
Livestock Inventories Report

Explanation:
Fixed assets, as defined in SAM Section 8602, are recorded at cost or appraised value in the property accounts. This is to establish accountability for such assets and to fix responsibility for their custody.
Fixed assets may be acquired either by (1) purchase, (2) gift, (3) transfer from other state agencies, (4) construction or development by the departments, or (5) construction under the supervision of the Office of the State Architect, the Department of Transportation, or the Department of Water Resources from funds advanced by the agency. (For the recordation of acquisitions of the latter type, see Entries No. 18 and 19.) Bases of valuation for recordation in the property accounts of property recorded through the entry are as follows:
Purchase: Net cost (after cash discounts) plus sales tax.
Gift: Appraised value at time of acquisition.
Transfer Between Agencies:
Value at which the property is accounted in the books of the transferor agency, if between agencies supported from the same fund. (See SAM Section 8633 if transaction is between funds.) (Transfer between organizational units of an agency supported from the same fund are recorded only in the Property Ledger location unit sub-control records.)

Construction by the Agency:
Actual cost of labor, materials, and equipment items as shown on the work order or similar form.

10521     ENTRY NO. 21 [FIXED ASSETS ARE WRITTEN OFF]
(Revised 5/87)

Nature of Transaction:

Fixed Assets are written off.

Journal Entry for General Ledger Accounts:
Debit:
5200 Investment in General Fixed Assets
Credit:
2310 Land
2331 Improvements Other than Buildings
2341 Equipment
2410 Intangible Assets

Source:
Documents:
Property Survey Report Transfer of Location of Equipment Livestock Inventories Report

Explanation:
Entries are made in the fixed assets accounts in the month in which property is disposed of. Except for lost, stolen or destroyed property, approved property survey reports must be on file before property may be disposed of or entries made in the property accounts. (See SAM Section 8640, for detailed instructions regarding the disposal of state property.)

10522     ENTRY NO. 22 [FIXED ASSET IS ACQUIRED BY INSTALLMENT PURCHASE OR CAPITAL LEASE CONTRACT]
(Revised 5/87)

Nature of Transaction:

Fixed asset is acquired by an installment purchase or capital lease (lease-purchase) contract. (See SAM Section 8632.)

Journal Entry for General Ledger Accounts:
Debit:
23XX–24XX Fixed Asset a/
2920 Amount to be Provided for Other Long-Term Debt b/
Credit:
4210 Installment Contracts Payable b/
4220 Lease-Purchase Contracts b/
5200 Investment in General Fixed Assets c/
 
a/ Specific asset type; general ledger accounts 2300 through 2410 recorded at lesser of fair value or present value of the minimum contract payments.
b/ Same amount as "a/" less any amount paid at inception of contract.
c/ Offset to Fixed Asset account.

Source:

Document:
Capital lease or installment purchase contract.

Explanation:
When a lease contract which is essentially an installment purchase, or an actual installment purchase contract is executed, an asset is recorded in the General Fixed Asset Account Group. Since there is also a long-term commitment to make the lease or installment payments, a liability is also recorded in the General Long-Term Debt Account Group. (See SAM Section 8632.)

Note:
This entry would normally be included in Entry No. 20. It is shown here separately for clarity.

10523     ENTRY NO. 23 [CLAIM IS FILED FOR PAYMENT ON INSTALLMENT PURCHASE OR CAPITAL LEASE CONTRACT]
(Revised 9/90)

Nature of Transaction:

Claim is filed for payment on installment purchase or capital lease (lease-purchase) contract.

Journal Entry for General Ledger Accounts:
Debit:
4210 Installment Contracts Payable a/
4220 Lease-Purchase Contracts a/
9000 Appropriation Expenditures b/
Credit:
2920 Amount to be Provided for Other Long-Term Debt a/
3020 Claims Filed b/
 
a/ Amount of payment made on contract excluding any interest, maintenance or other operating costs.
b/ Total amount of claim.

Source:
Document:
Claim Schedule
Explanation:
At the time an installment purchase or capital lease (lease-purchase) contract is executed an asset is recorded in the General Fixed Asset Account Group for the "principal" amount of the contract along with a long-term liability (see Standard Entry No. 22.). As claims are filed for contract payments, the total amount of the claim is charged to expenditures. However, the liability is reduced only for the amount of the payment applicable to the principal, excluding any interest, maintenance, or other operating costs.
Note:
This entry would normally be included in Entry No. 3. It is shown here separately for clarity.

10525    ENTRY NO. 25 [REVENUES COLLECTED IN ADVANCE ARE APPLIED]
(Revised 5/87)

Nature of Transaction:

Revenues collected in advance in a prior fiscal year are credited to the revenue accounts of the fiscal year to which they apply.

Journal Entry for General Ledger Accounts:
Debit:
3410 Revenue Collected in Advance
Credit:
8000 Revenue

Source:
Analysis of June 30 balance of Account No. 3410.

Explanation:
This entry dated July 1 credits to the current fiscal year revenue accounts amounts applicable to those accounts that were received and cleared in the prior fiscal year as revenue collected in advance but that will be earned in the current fiscal year.
If such receipts or any portion thereof were remitted and ordered into the State Treasury during the prior fiscal year as revenue collected in advance, the State Controller's Office will be requested by memorandum to make a similar entry. The memorandum will show the subsidiary accounts to be credited and will cite the Controller's Remittance Advices on which the amounts were remitted.

10526     ENTRY NO. 26 [REIMBURSEMENTS COLLECTED IN ADVANCE ARE APPLIED]
(Revised 5/87)

Nature of Transaction:

Reimbursements collected in advance are credited to the reimbursement accounts of the fiscal year to which they apply.

Journal Entry for General Ledger Accounts:
Debit:
3420 Reimbursements Collected in Advance
Credit:
8100 Reimbursements

Source:
Analysis of balance of Account No. 3420 throughout the year and at June 30.

Explanation:
This entry credits to the appropriate fiscal year reimbursement amounts applicable to those accounts that were previously received and cleared as reimbursements collected in advance.

If such receipts or any portion thereof were remitted and ordered into the State Treasury as reimbursements collected in advance, the State Controller's Office will be requested by memorandum to make a similar entry. The memorandum will show the subsidiary accounts to be credited and will cite the Controller's Remittance Advices on which the amounts were remitted.

10527     ENTRY NO. 27 [DEPOSIT IS TRANSFERRED TO THE CONDEMNATION DEPOSITS FUND]
(Revised 5/87)

Nature of Transaction:

Money is transferred to the Condemnation Deposits Fund as a deposit in condemnation proceedings for acquisition of real property. (This entry is made as a transaction of the month indicated by the date of the Controller's Transfer.)

Journal Entry for General Ledger Accounts:
Debit:
2730 Deposits in Condemnation Proceedings
9000 Appropriation Expenditures
Credit:
1140 Cash in State Treasury
5390 Other Reserves

Source:
Document:
Controller's Transfer
Register:
Controller's Transfer Register (if volume justifies).

Explanation:
Agencies engaged in condemnation proceedings are required by the court to deposit a sum of money in the Condemnation Deposit Fund. The amount is determined by the court. Such deposits are retained in the Condemnation Deposit Fund until the court orders payment to the grantor. In some instances the court may order an advance payment. However, usually the entire deposit remains in the Condemnation Deposits Fund until final settlement is determined by the court.

10528     ENTRY NO. 28 [CLAIM IS FILED IN SETTLEMENT OF A CONDEMNATION DEPOSIT]
(Revised 5/87)

Nature of Transaction:

A claim is filed against the agency's fund and appropriation in settlement of a condemnation proceeding for acquisition of real property.

Journal Entry for General Ledger Accounts:
Debit:
1400 Due from Other Funds or Appropriations a/
2310 Land b/
2331 Improvements Other than Buildings c/
5390 Other Reserves a/
9000 Appropriation Expenditures d/
Credit:
2730 Deposits in Condemnation Proceedings a/
3020 Claims Filed e/
5200 Investment in General Fixed Assets e/
 
a/ amount deposited in the Condemnation Deposits Fund for the case now being settled.
b/ amount of settlement for land acquired.
c/ amount of settlement for improvements acquired.
d/ excess of amount of settlement over amount of the deposit (if amount of judgment is less than the amount of the deposit, this entry will be the reverse of that shown).
e/ amount of claim filed settlement (b+c).

Source:
Document:
Claim Schedule
Register:
Claims Filed Register

Explanation:
In settlement of some condemnation proceedings payment is made to the grantor from the agency's fund and appropriation prior to return of the deposit from the Condemnation Deposits Fund. In these cases, at the time of filing the claim the State Controller's Officer is requested to transfer the amount of the deposit back to the agency's fund and appropriation, and the amount of the deposit is transferred from Account No. 2730 to Account No. 1400. At this time the actual cost of the fixed assets are recorded in the General Ledger fixed asset accounts. Since the amount deposited was recorded as an appropriation expenditure, only the difference between the amount of the deposit and the amount of the final settlement now is recorded as an appropriation expenditure or abatement.
If a claim for settlement has been filed on or before June 30 but the deposit has not been returned by that date, the amount to be returned will be reported to the State Controller's Office as an abatement accrual.

10529     ENTRY NO. 29 [CONDEMNATION DEPOSIT IS RETURNED]
(Revised 5/87)

Nature of Transaction:

A deposit in the Condemnation Deposits Fund is returned to the agency's fund and appropriation after the agency has made payment to the grantor from funds under its own control. (This entry is made as a transaction of the month indicated by the date of the Controller's Transfer.)

Journal Entry for General Ledger Accounts:
Debit:
1140 Cash in State Treasury

Credit:
1400 Due from Other Funds or Appropriations

Source:
Document:
Controller's Transfer
Register:
Controller's Transfer Register (if volume justifies).

Explanation:
When payment is made to the grantor in a condemnation proceeding by a warrant drawn on the agency's fund and appropriation, the State Treasurer will release the deposit in the Condemnation Deposits Fund. Upon request of the agency, the State Controller's Office will transfer the amount of the deposit back to the agency's fund and appropriation.

10530     ENTRY NO. 30 [PAYMENT IS MADE FROM THE CONDEMNATION DEPOSITS FUND]
(Revised 5/87)

Nature of Transaction:

The State Treasurer files a claim against the Condemnation Deposits Fund to make payments directly to the grantor upon settlement of a condemnation proceeding. (This entry shows the recording of the transaction in the accounts of the fund from which the deposit was originally made.)

Journal Entry for General Ledger Accounts:
Debit:
1400 Due from Other Funds or Appropriations a/
2310 Land b/
2331 Improvements Other than Buildings c/
5390 Other Reserves d/
Credit:
2730 Deposits in Condemnation Proceedings d/
5200 Investment in General Fixed Assets e/
9000 Appropriation Expenditures a/

a/ excess of amount of deposit over amount of settlement.
b/ amount of settlement for land acquired.
c/ amount of settlement for improvements acquired.
d/ amount deposited in the Condemnation Deposits Fund for the case now being settled.
e/ amount of fixed assets acquired (b+c).

Source:
Document:
Copy of State Treasurer's Claim Schedule.

Explanation:
This entry is made in lieu of Entry No. 28 when payment is made to the grantor by a warrant drawn on the Condemnation Deposits Fund.
If the amount of the settlement is more than the amount of the original deposit, an additional deposit will be made and recorded by Entry No. 27. If the amount of the settlement is less than the original deposit, upon request of the agency the State Controller's Office will transfer the excess amount to the agency's fund and appropriation. The Controller's Transfer is recorded by Entry No. 29.

10530     ENTRY NO. 30 [PAYMENT IS MADE FROM THE CONDEMNATION DEPOSITS FUND]
(Revised 5/87)

Nature of Transaction:

The State Treasurer files a claim against the Condemnation Deposits Fund to make payments directly to the grantor upon settlement of a condemnation proceeding. (This entry shows the recording of the transaction in the accounts of the fund from which the deposit was originally made.)

Journal Entry for General Ledger Accounts:
Debit:
1400 Due from Other Funds or Appropriations a/
2310 Land b/
2331 Improvements Other than Buildings c/
5390 Other Reserves d/
Credit:
2730 Deposits in Condemnation Proceedings d/
5200 Investment in General Fixed Assets e/
9000 Appropriation Expenditures a/

a/ excess of amount of deposit over amount of settlement.
b/ amount of settlement for land acquired.
c/ amount of settlement for improvements acquired.
d/ amount deposited in the Condemnation Deposits Fund for the case now being settled.
e/ amount of fixed assets acquired (b+c).

Source:
Document:
Copy of State Treasurer's Claim Schedule.

Explanation:
This entry is made in lieu of Entry No. 28 when payment is made to the grantor by a warrant drawn on the Condemnation Deposits Fund.
If the amount of the settlement is more than the amount of the original deposit, an additional deposit will be made and recorded by Entry No. 27. If the amount of the settlement is less than the original deposit, upon request of the agency the State Controller's Office will transfer the excess amount to the agency's fund and appropriation. The Controller's Transfer is recorded by Entry No. 29.

10531     ENTRY NO. 31 [SURPLUS CASH IS TRANSFERRED TO THE SURPLUS MONEY INVESTMENT FUND]
(Revised 5/87)

Nature of Transaction:
Surplus cash is transferred to the Surplus Money Investment Fund.
Journal Entry for General Ledger Accounts:
Debit:
1210 Deposits in Surplus Money Investment Fund.
Credit:
1140 Cash in State Treasury
Source:
Document:
Controller's Transfer
Explanation:
Government Code Sections 16470 through 16476 provide for the transfer of surplus cash in certain funds to the Surplus Money Investment Fund for investment by the State Treasurer. Agencies that maintain the Cash in State Treasury account for such funds are furnished copies of the Controller's Transfer when cash is transferred to or returned From the Surplus Money Investment Fund.
When cash is returned From the Surplus Money Investment Fund the reverse of the above the entry is made.
These entries are recorded as transactions of the month indicated by the date of the Controller' s Transfer.

10532     ENTRY NO. 32 [INTEREST IS RECEIVED FROM THE SURPLUS MONEY INVESTMENT FUND AND CONDEMNATION DEPOSITS FUND]
(Revised 6/04)

Nature of Transaction:

Interest earnings on investments of the Surplus Money Investment Fund and the Condemnation Deposits Fund are transferred from those funds to the agency's fund.
Journal Entry for General Ledger Accounts:
Debit:
1140 Cash in State Treasury a/
Credit:
1410.0681 Due from Surplus Money Investment Fund b/
1410.0910 Due from Condemnation Deposits Fund b/
8000 Revenue c/
 
a/ amount of interest transferred
b/ amount of interest transferred in July
c/ amount of interest transferred in January, April, and October
Source:
Document:
Controller's Notice of Transfer
Explanation:
Interest on investments of the Surplus Money Investment Fund and the Condemnation Deposits Fund is apportioned quarterly to other funds by the SCO.  The administering agency for funds receiving such interest will receive the Controller's Notice of Transfer in the month following the end of the quarter.

The July transfer is accounted for differently because the interest was accrued as of June 30 (see SAM Section 10605).

10533     ENTRY NO. 33 [INVESTMENTS ARE PURCHASED]
(Revised 5/87)

Nature of Transaction:
Investments are purchased.
Journal Entry for General Ledger Accounts:
Debit:
1320 Accrued Interest Receivable a/
2011 Investment in Securities at Cost b/
2012 Investment in Securities c/
2013 Premium on Securities d/
2021 Investment in Common Stock e/
2022 Investment in Preferred Stock f/
Credit:
1140 Cash in State Treasury g/

2014 Discount on Securities h/

a/ amount of accrued interest purchased on investments acquired between interest dates.
b/ cost investment in debt securities.
c/ face value of investment in debt securities.
d/ amount of premium paid on investments purchased.
e/ cost of investment in common stocks.
f/ cost of investment in preferred stocks.
g/ amount expended for investments purchased.
h/ amount of discount on investments purchased.

Source:
Document:
Detail Sheet supporting Claim Schedule prepared by State Treasurer's Office.

Explanation:
Investments are purchased and held by the State Treasurer. The source of this entry is a copy of the State Treasurer's Claim Schedule. The entry is made as of the month indicated by the detail sheet supporting the Claim Schedule.

10534     ENTRY NO. 34 [INVESTMENTS MATURE OR ARE SOLD]
(Revised 5/87)

Nature of Transaction:
Investments mature or are sold. (This entry is made as a transaction of the month indicated by the date of the Controller's Receipt.)

Journal Entry for General Ledger Accounts:
Debit:
1140 Cash in State Treasury a/

2014 Discount on Securities b/

Credit:
2011 Investment in Securities at Cost c/
2012 Investment in Securities d/
2013 Premium on Securities e/
2021 Investment in Common Stock f/
2022 Investment in Preferred Stock g/
8000 Revenues h/

a/ proceeds from sale or maturity deposited in the appropriate fund in the Treasury.
b/ unaccumulated discount on investments sold before maturity.
c/ cost of investment in debt securities matured or sold.
d/ face value of investment in debt securities matured or sold.
e/ unamortized premium on investments sold before maturity.
f/ cost of common stocks sold.
g/ cost of preferred stocks sold.
h/ (1) amount of accrued interest sold plus or minus the difference between the amount received and the book value plus accrued interest sold, or (2) gain or loss on the sale of stocks. This net entry would result in a debit to the general ledger Revenue account if the result of the sale was a loss greater than the amount of accrued interest sold or a loss on the sale of stocks.

Source:
Document:
Controller's Receipt and Controller's Journal Entry.

Explanation:
The Controller's Receipt shows the amount of proceeds from investment sales or maturities ordered into the State Treasury. At the same time, the Controller's Office prepares a Journal Entry, a copy of which is sent to the agency, showing any premium or discount to be written off and/or accrued interest sold.

10535      ENTRY NO. 35 [INTEREST IS RECEIVED ON INVESTMENT SECURITIES]
(Revised 5/87)

Nature of Transaction:

Interest is received on investment securities and premium and discount on investments are amortized or accumulated. (This entry is made as a transaction of the month indicated by the date of the Controller's Receipt.)

Journal Entry for General Ledger Accounts:
Debit:
1140 Cash in State Treasury a/
2014 Discount on Securities b/
Credit:
1313 Accounts Receivable Revenue   c/
1320 Accrued Interest Receivable   d/
2013 Premium on Securities   e/
8000 Revenue   f/
 
a/ Amount of interest received and deposited in the appropriate fund in the Treasury.
b/ Amount of discount accumulation since the last accumulation of discount, either at the time of receipt of interest or accrual of interest as of June 30.
c/ Amount of interest accrued at June 30 now liquidated.
d/ Amount of accrued interest purchased collected at first interest date, exclusive of accrued interest purchased accounted through Account No. 1313 as a result of Entry No. A–5.
e/ Amount of premium amortization since the last amortization of premium, either at the time of receipt of interest or accrual of interest as of June 30.
f/ Amount of interest earned that was not accrued previously.

Source:
Document—Controller's Receipt

Explanation:
This entry is used to record the interest earnings, amortization of premium, and accumulation of discount on investment securities. The State Controller will show the amounts of premium being amortized or discount being accumulated and the amount of interest received.  The "interest method" for amortization of premium and discount is used to yield an equal periodic rate of interest.

10536     ENTRY NO. 36 [ACCOUNTS RECEIVABLE ARE SOLD]
(Revised 5/87)

Nature of Transaction:

Agency receives cash payment for the sale of accounts receivables.

Journal Entry for General Ledger Accounts:
Debit:
1110 General Cash a/
1600 Provision for Deferred Receivables b/
8100 Reimbursements c/
9000 Appropriation Expenditures d/
9893 Prior Year Appropriation Adjustments e/
Credit:

1311 Accounts Receivable —Abatements   f/
1312 Accounts Receivable —Reimbursements   g/
1313 Accounts Receivable —Revenue   h/
1314 Accounts Receivable —Operating Revenues   h/
1315 Accounts Receivable —Dishonored Checks   i/
1319 Accounts Receivable —Other   i/
8000 Revenue   j/
9892 Prior-Year Revenue Adjustments   k/
 
a/ Total cash received for deposit in the General Cash Account.
b/ Invoice amounts of accounts receivables accounted for during the year on a fully reserved basis.
c/ The amount that represents the difference between the amount of current year invoiced Accounts Receivable–Reimbursements sold and the amount received from the sale of the Accounts Receivable–Reimbursements.
d/ The amount that represents the difference between the amount of current year invoiced Accounts Receivable–Abatements and the amount received from the sale of the Accounts Receivable–Abatements.
e/ The amount that represents the difference between the amount of prior year invoiced Accounts Receivable–Reimbursements and Abatements and the amount received from the sale of those accounts receivable.
f/ Invoice amount of Accounts Receivable–Abatements that have been sold and payment has been received.
g/ Invoice amount of Accounts Receivable–Reimbursements that have been sold and payment has been received.
h/ Invoice amount of Accounts Receivable–Revenue that have been sold and payment has been received.
i/ Invoice amount of Accounts Receivable–Other that have been sold and payment has been received.
j/ Amount of current year revenue received as a result of the sale of Accounts Receivable–Revenue.
k/ Amount of prior year revenue received as a result of the sale of Accounts Receivable–Revenue.

Source:
Document—General Cash Receipt

Register—General Cash Receipts Register

Explanation:
Agencies are authorized to sell their accounts receivable to private persons or entities.  Sales of this nature will result in the receipt of payment in amounts less than the invoiced accounts receivable amount.  This entry will remove the accounts receivable at it's full invoiced amount and adjust the income/expenditure accounts to reflect the appropriate net amounts received.

10600     ENTRY NO. A–1 [GENERAL CASH IS ADJUSTED FOR UNDEPOSITED RECEIPTS]
(Revised 5/95)

Nature of Transaction:

The General Cash account is adjusted for undeposited receipts as of June 30 so that the agency accounts will show the actual amount of general cash in agency accounts with the State Treasurer as of that date. (This entry is made as of June 30 and reversed as of July l.)

Journal Entry for General Ledger Accounts:
Debit:
1190 Cash on Hand
Credit:
1110 General Cash
 
Source:
Analysis of General Cash Receipts Register at June 30.

Explanation:
During the fiscal year Account No. 1110, General Cash, shows all cash receipts deposited and to be deposited in the General Cash account. This adjusting entry is made in the General Ledger as of June 30 each year to reduce, for year-end statement purposes, the balance of the General Cash account to the cash (including deposits in transit) in the agency account with the State Treasurer.
The General Cash Receipts Register will be analyzed to determine the amount of general cash received by June 30 but not deposited as of that date.

10601     ENTRY NO. A–2 [REVOLVING FUND CASH IS ADJUSTED TO ITS ACTUAL CASH BALANCE]
(Revised 5/95)

Nature of Transaction:

The Revolving Fund Cash account is adjusted as of June 30 for unreimbursed expenditures therefrom and undeposited receipts and undeposited warrants for reimbursement of the revolving fund, so that the agency accounts will show the actual amount of revolving fund cash in agency accounts with the State Treasurer at that date. (This entry is made as of June 30 and reversed as of July 1.)

Journal Entry for General Ledger Accounts:
Debit:
1190 Cash on Hand a/
1319 Accounts Receivable—Other b/
1710 Expense Advances c/
2600 Other Deferred Charges d/
3010 Accounts Payable e/
3020 Claims Filed f/
Credit:
1130 Revolving Fund Cash   g/
3010 Accounts Payable   h/
 
a/ Amount of cash in subrevolving funds, undeposited cash receipts, and undeposited warrants for reimbursement of revolving fund. Undeposited warrants include warrants dated on or before June 30 but not received or deposited until July.
b/ Amount advanced to other funds by revolving fund.
c/ Amount advanced to employees for travel and salary expenses.
d/ Revolving fund expenditures not scheduled for reimbursement by June 30 resulting from payment of deferred charges chargeable to the new fiscal year.  Payments made for deferred charges should only be made after the Budget Act for the subsequent fiscal year is enacted.
e/ Revolving fund expenditures not scheduled for reimbursement by June 30 but applicable to an appropriation then current.
f/ Claims filed on or before June 30 to reimburse the revolving fund but not paid by that date.
g/ Amount required to reduce the revolving fund account to the cash it contains.
h/ Amount payable to other funds for revolving funds advanced.
Source:

Analysis and Reconciliation of Revolving Fund Accountability as of June 30.  For preparation instructions see SAM Section 7965.

Explanation:
During the fiscal year Account No. 1130, Revolving Fund Cash, is accounted on an imprest basis. To the extent that such revolving fund accounts consist of items other than cash, the procedure has the effect of overstating cash in the agency's statements. Adjusting entries must therefore be made in the General Ledger as of June 30 each year to the accounts of each fund affected to reduce, for year-end statement purposes, the balance of the Revolving Fund Cash account to the cash in the agency account with the State Treasurer.

10602     ENTRY NO. A–3 [ACCOUNTS RECEIVABLE ABATEMENTS AND REIMBURSEMENTS ARE ACCRUED]
(Revised 2/99)

Nature of Transaction:
Accounts receivable abatements, reimbursements, and revenue are recorded for the fiscal year just ended. This entry is dated and posted as of June 30.

Journal Entry for General Ledger Accounts:

 Debit:

 1311 Accounts Receivable?Abatements   a/
 1312 Accounts Receivable?Reimbursements  b/
 1313 Accounts Receivable?Revenue   c/
 1410 Due From Other Funds    d/
 1420 Due From Other Appropriations   e/
 1510 Due From Federal Government   f/
 1540 Due From School Districts    g/
 1590 Due From Other Governmental Entities  h/

  Credit:

  1600 Provision for Deferred Receivables*  i/
  8100 Reimbursements     j/
  9000 Appropriation Expenditures   k/

 *NOTE:  Those revenue receivables accrued in this entry and deemed to be collectable during the ensuing fiscal year will be included in the A-9, revenue accrual, entry.  See SAM Section 10610.

a/ Amount of abatement receivables due from private entities at June 30 that were not billed or recorded prior to July 1 that are deemed to be collectable during the ensuing fiscal year.
b/ Amount of reimbursement receivables due from private entities at June 30 that were not billed or recorded prior to July 1 that are deemed to be collectable during the ensuing fiscal year.
c/ Amount of revenue receivables due from private entities at June 30 that were not billed or recorded prior to July 1.
d/ Amount of abatement, reimbursement, and revenue receivables due from other funds at June 30 that were not billed or recorded prior to July 1.  The abatement and reimbursement receivables are deemed to be collectable during the ensuing fiscal year.
e/ Amount of abatement, reimbursement, and revenue receivables due from other appropriations within the same fund at June 30 that were not billed or recorded prior to July 1.  The abatement and reimbursement receivables are deemed to be collectable during the ensuing fiscal year.
f/ Amount of abatement and revenue receivables due from the federal government at June 30 that were not billed or recorded prior to July 1.  The abatement receivables are deemed to be collectable during the ensuing fiscal year.
g/ Amount of abatement, reimbursement, and revenue receivables due from school districts at June 30 that were not billed or recorded prior to July 1.  The abatement and reimbursement receivables are deemed to be collectable during the ensuing fiscal year.
h/ Amount of abatement, reimbursement, and revenue receivables due from other governmental entities at June 30 that were not billed or recorded prior to July 1.  The abatement and reimbursement receivables are deemed to be collectable during the ensuing fiscal year.
i/ Total amount of revenue receivables in a through h.
j/ Total amount of reimbursement receivables in a through h, excluding f.
k/ Total amount of abatement receivables in a through h.

Source:

Detail list of all abatement, reimbursement and revenue receivables at June 30 as estimated or not billed prior to actually closing the books.  The list should contain name and address, invoice or encumbrance number, or other reference, date, and amount.

Explanation:

This entry is made to accrue the receivables that had not been otherwise recorded on June 30.  The list supporting this entry will contain adequate references and will be retained by the agency for audit purposes.

The abatement and reimbursement amounts accrued in this entry will be posted to the applicable Allotment-Expenditure Ledger accounts.

Also see SAM Section 10506.

10603     ENTRY NO. A–4 [ACCOUNTS RECEIVABLE ABATEMENTS AND REIMBURSEMENTS AND CERTAIN COLLECTIONS ARE ADJUSTED WHEN AN APPROPRIATION REVERTS]
(Renumbered 5/95)

Nature of Transaction:
Accounts receivable and certain collections are adjusted for the following when an appropriation reverts:
1. Abatements and reimbursements not collected before revision, and
2. Amounts collected before reversion but credited by the State Treasury after reversion.
(This entry is made as a transaction of the month indicated by the date of the Controller's Journal Entry reverting the appropriation.)

Journal Entry for General Ledger Account:
Debit:
1319 Accounts Receivable—Other a/
9893 Prior Year Appropriation Adjustments b/

Credit:

1311 Accounts Receivable—Abatements   c/
1312 Accounts Receivable—Reimbursements   d/
1600 Provision for Deferred Receivables   e/
9891 Refunds to Reverted Appropriations   f/
 
a/ c + d
b/ e + f
c/ Amount of abatements not collected before reversion. (Includes both accrued and reserved receivables.)
d/ Amount of reimbursements not collected before reversion. (Includes both accrued and reserved receivables.)
e/ The amount of accrued abatements or reimbursements not collected before reversion.
f/ Amount collected prior to reversion but not ordered into the State Treasury until after reversion.

Source:
Analysis of accounts receivable and recent collections applicable to reverted appropriations.

Explanation:
Abatement and reimbursement receivables are no longer such after the appropriation reverts. Therefore, at the time the appropriation reverts (usually as of June 30) the agency must reclassify the receivables.
Abatement and reimbursement collections ordered into the State Treasury after the appropriation reverts will be credited to a Refunds to Reverted Appropriations account by the State Controller's Office.

10604     ENTRY NO. A–5 [ACCOUNTS RECEIVABLE REVENUE ARE ACCRUED FOR INTEREST EARNINGS ON INVESTMENTS]
(Renumbered 5/95)

Nature of Transaction:
Accounts receivable for interest earnings on investments are accrued as of June 30 with appropriate adjustment of accrued interest purchased, premium, and discount accounts. This entry is dated and posted as of June 30.

Journal Entry for General Ledger Account:
Debit:
1313 Accounts Receivable—Revenue a/
2014 Discount on Securities b/
Credit:
1320 Accrued Interest Receivable   c/
2013 Premium on Securities   d/
8000 Revenue   e/
 
a/ Amount of interest accrued since the last interest date.
b/ Amount of discount accumulation since the last interest date.
c/ Amount of accrued interest not yet collected.
d/ Amount of premium amortization since the last interest date.
e/ Amount of interest earned.

Source:
Document—Controller's Journal Entry.

Explanation:
The State Controller's Office will accrue interest earned but not yet received at June 30 and will send the agency a copy of its Journal Entry showing all amounts to be included in this entry.

10605     ENTRY NO. A–6 [RECEIVABLES DUE FROM SURPLUS MONEY INVESTMENT FUND AND CONDEMNATION DEPOSITS FUND ARE ACCRUED FOR INTEREST EARNINGS]
(Revised 6/04)

Nature of Transaction:
Receivables due from the Surplus Money Investment Fund and the Condemnation Deposits Fund are accrued for interest earnings as of June 30.

Journal Entry for General Ledger Account:
Debit:
1410.0681 Due from Surplus Money Investment Fund
1410.0910 Due from Condemnation Deposits Fund
Credit:
8000 Revenue

Source:
The SCO's View Direct on-line system allows agencies to view the interest earned as of June 30 and tranferred in July.
Document—Controller's Notice of Transfer issued in July.

Explanation:
The quarterly transfer of interest earned on money in the Surplus Money Investment Fund and the Condemnation Deposits Fund must be recorded as an accrual as of June 30.

10606      ENTRY NO. A–7 [FIXED ASSET ACCOUNTS ARE ADJUSTED FOR UNSOLD SURVEYED EQUIPMENT]
(Renumbered 5/95)

Nature of Transaction:

Fixed asset accounts are adjusted for unsold surveyed equipment and its estimated sales value is recorded to give effect to such uncompleted equipment transactions in final year-end statements and reports of funds where receipts of such transactions are abated to an appropriation specific in amount. This entry is made as of June 30 and is semi-reversed as of July l. (See Entry No. A–7R.)

Journal Entry for General Ledger Account:
Debit:
2740 Inventory of Surveyed Equipment a/
5200 Investment in General Fixed Assets b/
Credit:
2341 Equipment   b/
9000 Appropriation Expenditures   a/
 
a/ Estimated amount to be received from sale of surveyed equipment that was budgeted to be traded-in.
b/ Book value of above equipment.

Source:
Detailed list of equipment items supporting this entry. This list will be retained by the agency as an accounting document for audit purposes.

Explanation:
This entry is made only for those items of equipment that were budgeted to be traded-in during the fiscal year and have been surveyed but are still on hand pending sale in lieu of trade-in. The purpose of this entry is to accrue the estimated sales value of surveyed equipment as an abatement to the appropriation expenditure account of the fiscal year just ended and to write-off such equipment from the fixed asset accounts.

10607 ENTRY NO. A–7R [ENTRY A–7 IS SEMI-REVERSED]
(Renumbered 5/95)

Nature of Transaction:

Entry No. A–7 is semi-reversed as of July 1.

Journal Entry for General Ledger Account:

Debit:
2341	Equipment		a/
9893	Prior Year Appropriation Adjustments		b/
	Credit:
	2740	Inventory of Surveyed Equipment	b/
	5200	Investment in General Fixed Assets	a/

Source:
Entry No. A–7.

Explanation:
Entry No. A–7 is semi-reversed as of July 1, in the accounts of the new fiscal year, so that when the transaction is completed in the new fiscal year it may be processed normally.

10608 ENTRY NO. A–8 [ACCOUNTS PAYABLE ARE ACCRUED]
(Revised 12/07)

Nature of Transaction:

The A-8 entry accrues expenditures for valid encumbrances (commitments) and obligations for the fiscal year just ended. This entry is dated and posted as of June 30.

Journal Entry for General Ledger Account (GLA):

Debit:
5350	Reserve for Encumbrances		a/
9000	Appropriation Expenditures		b/
9893	Prior Year Appropriation Adjustments		c/
	Credit:
	3010	Accounts Payable	d/
	3114	Due to Other Funds	e/
	3115	Due to Other Appropriations, Within the Same Fund	f/
	3210	Due to Federal Government	g/
	3220	Due to Local Government	h/
	3290	Due to Other Governmental Entities	i/
	6150	Encumbrances	a/

In addition, if any encumbrances will be funded by a reimbursement, the reimbursement may be accrued in one asset account, Accounts Receivable - Reimbursements, GLA 1312. (See SAM Section 7952.)

Source:

Encumbrance documents (e.g., contracts, purchase orders, purchase estimates, Public Works Project Authorization and Transfer Requests, etc.).

Explanation:
This entry is made to accrue the amounts for (1) valid encumbrances (goods/services not received/performed as of June 30), and (2) obligations (goods/services received/performed as of June 30 but not yet scheduled for payment).

To determine the amounts for valid encumbrances and obligations, all unliquidated encumbrances are reviewed to identify whether they are valid encumbrances or obligations of the year just ended, as defined by the Victim Compensation and Government Claims Board Rule 610 and described in SAM Section 8340.

Contracts and purchase orders will be analyzed to determine that the amounts approximate the actual expenditures that will be incurred. Amounts will be adjusted at this time if appropriate, e.g., purchase estimates adjusted to amounts of related purchase orders, contract balances liquidated when final payment has been made on a contract, etc.

For multi-year agreements, departments must determine by June 30 the amount to encumber against the first fiscal year, in accordance with the budget plan when the agreement was issued. Any amounts not encumbered and not accrued to an appropriation during the period of encumbrance availability shall be paid from an appropriation that is available for encumbrance.

Many support and local assistance encumbrances remaining at year-end should be liquidated within a few months of the new fiscal year. Capital outlay encumbrances generally require more time to liquidate. Departments are instructed to closely monitor encumbrances to effect prompt delivery of requested goods or services and to ensure timely disencumbrances in instances where it is determined the goods or services will not be received/performed or will cost less than originally estimated.

Even though the unencumbered balance is not formally reverted in the appropriation accounts of the State Controller's Office, the remaining two years prior to actual reversion are strictly for the liquidation of encumbrances accrued as of the last date the appropriation was available for encumbrance and the payment of obligations, which are chargeable only to a prior year appropriation.

Any obligations that were not previously encumbered will be accrued. Any obligations of prior fiscal year appropriations that have not yet reverted will be accrued to the applicable fiscal year. In addition, any obligations of reverted appropriations will be accrued to a like appropriation of the fiscal year just ended. These procedures permit all valid obligations of state funds to be reflected in year-end financial statements.

Once the encumbrances and obligations have been determined, these amounts are recorded as (1) expenditures in the applicable appropriation accounts and (2) liabilities in the accounts which identify to whom the amount is due (as detailed in the above journal entry).

Accrual entry amounts will, at a minimum, be supported by the following: vendor name, document number or other reference (contract number, purchase order number, etc.), and entry date. Departments must retain supporting documentation and reports for audit purposes.

10609     ENTRY NO. A-8R [ENTRY A-8 IS SEMI-REVERSED]
(Revised 10/99)

Nature of Transaction:

Entry No. A-8 is semi-reversed as of July 1.

Journal Entry for General Ledger Accounts:
Debit:
3010 Accounts Payable a/
6150 Encumbrances b/
Credit:
5350 Reserve for Encumbrances   b/
9000 Appropriation Expenditures   c/
9893 Prior Year Appropriation Adjustments   d/
 
a/ Amount credited to Accounts Payable in entry A-8.
b/ Amount of expenditures accrued in Entry A-8 applicable to continuing appropriations still available for encumbrance in the new fiscal year, plus the adjustment amount of any other encumbrances applicable to those appropriations that were liquidated in Entry A-8 but are valid encumbrances of the new fiscal year.
c/ Amount of expenditures accrued in Entry A-8 applicable to continuing appropriations still available for encumbrance in the new fiscal year.
d/ Amount of expenditures accrued in Entry A-8 applicable to appropriations no longer available for encumbrance in the new fiscal year but not yet reverted.
Source:
List of valid obligations supporting Entry A-8.
Explanation:
This entry reverses the accounts payable accrued in Entry A-8 so that: (l) expenditures from continuing appropriations may be recorded in the same manner as other current expenditures; and (2) expenditures from appropriations no longer available for encumbrance may be posted to the Prior-Year Appropriation Adjustments accounts on a claims filed basis without adjusting for each transaction wherein the amount paid differs from the amount accrued at June 30.
The amounts recorded in this entry also will be posted to the applicable Allotment-Expenditure Ledger accounts or Prior Year Appropriation Adjustments Ledger accounts.

10610     ENTRY NO. A–9 [REVENUE IS ACCRUED]
(Revised 10/99)

Nature of Transaction:
Revenue earned as of June 30 but not received is accrued.
Journal Entry for General Ledger Account:
Debit:
1600 Provision for Deferred Receivables a/

Credit:
3110 Due to Other Funds or Appropriations   c/
8000 Revenue   b/
    
a/ Amount required to adjust this account balance for the amount of revenue earned but not received as of June  30 for fully deferred receivables that are estimated to be collectible within the ensuing fiscal year.
b/ The amount of adjustment in "a" applicable to Revenue.
c/ The amount of adjustment in "a" applicable to Due to Other Funds or Appropriations.

Source:
Documents—Worksheet showing computations of amounts of accounts receivable that probably will not be collected during the ensuing fiscal year.  See Explanation.

Explanation:
Throughout the fiscal year, some accounts have been maintained on a fully deferred basis.  On June 30, revenue related to these accounts is accrued by adjusting the Provision for Deferred Receivables in the manner stated in "a".  Revenue earned in this fiscal year is assumed to be collectible within the ensuing fiscal year unless information exists to the contrary.  Therefore, a worksheet showing the computations of amounts of accounts receivable that probably will not be collected during the ensuing fiscal year will be prepared.  This uncollectible amount will not be accrued as revenue.  All other revenue earned in this fiscal year will be included in this entry.
This accrual entry is partially reversed as of July 1 (see Entry No. A–9R).

10611     ENTRY NO. A–9R [ENTRY A–9 IS SEMI-REVERSED]
(Revised 2/99)

Nature of Transaction:
As of July 1 the previous fiscal year's revenue accruals are partially reversed.

Journal Entry for General Ledger Account:
Debit:
9892 Prior Year Revenue Adjustments a/
Credit:
1600 Provision for Deferred Receivables   a/
 
a/ b + c in Entry A–9.

Source:
Same as Entry No. A–9.

Explanation:
Entry A–9 is partially reversed as of July l by this entry so that accounts receivable collections (except those related to abatements, non-deferred appropriation reimbursements, and certain deferred appropriation reimbursements) can be credited to a nominal account when received.  (Nominal accounts will not be credited for collections of certain deferred appropriation reimbursements until they are ordered into the State Treasury.)

The Prior Year Revenue Adjustment Account is used to permit a comparison of revenue collected during the fiscal year following the date of Entry No. A–9 with amounts accrued in Entry A–9.

10612     ENTRY NO. A–10 [REVENUE IS ADJUSTED FOR DISHONORED CHECKS]
(Renumbered 5/95)

Nature of Transaction:
Revenue accounts are adjusted for dishonored checks outstanding at June 30. (Except that revenue accounts are not adjusted for dishonored checks estimated to be collectible in the coming fiscal year.)
This entry is required as of June 30 only for those agencies that do not adjust their revenue accounts as dishonored checks are redeemed from banks. This entry is made as of June 30 and is not reversed as of July 1.

Journal Entry for General Ledger Accounts:
Debit:
3110 Due to Other Funds or Appropriations a/
3410 Revenue Collected in Advance b/
3420 Reimbursements Collected in Advance c/
3730 Uncleared Collections d/
8000 Revenue e/
8100 Reimbursements f/
9000 Appropriation Expenditures g/
9891 Refunds to Reverted Appropriations h/
9892 Prior Year Revenue Adjustments i/
9893 Prior Year Appropriation Adjustments j/
Credit:
1600 Provision for Deferred Receivables   k/
 
a/ Amount of dishonored checks held by feeder funds on revenue items collected for other funds or appropriations where the items were not identified as being earned as of the preceding June 30.
b/ Amount of dishonored checks on revenue collected in advance.
c/ Amount of dishonored checks on reimbursements collected in advance.
d/ Amount of dishonored checks on deferred reimbursement items that are still credited to uncleared collections pending their being ordered into the treasury.
e/ Amount of dishonored checks on revenue items not identified as being earned as of the preceding June 30.
f/ Amount of dishonored checks on deferred reimbursement items that have already been credited as reimbursements.
g/