COUNTY OF RIVERSIDE OFFICE OF THE AUDITORCONTROLLER Accounts

COUNTY OF RIVERSIDE OFFICE OF THE AUDITOR-CONTROLLER Accounts Payable (AP) Accrual Reggie Arhin April 21, 2005 1

ACCOUNTS PAYABLE (AP) ACCRUAL OVERVIEW l l l Purpose of AP Accrual How the process worked in the past Why we are changing the process How the new process will work Questions 1 2

ACCOUNTS PAYABLE (AP) ACCRUAL Purpose of AP Accrual l Expenditure Recognition l Title Transfer/Service Provided 2 3

ACCOUNTS PAYABLE (AP) ACCRUAL How the process worked in previous years System Accruals during extended period 12 l Schedule H l Supporting documentation l 3 4

ACCOUNTS PAYABLE (AP) ACCRUAL Why are we changing the process? Assure compliance with GAAP l Adjust our process to comply with prior year audit findings – System accruals not properly executed – 30% of Vouchers entered in wrong fiscal year – Issues with Schedule H (incomplete, not submitted, or duplicated) l Earlier FYE close (July 31) l Last day to enter vouchers is July 20 l 4 5

ACCOUNTS PAYABLE (AP) ACCRUAL How the new process will work Departments to process invoices as usual – Treat July as if it were a regular month in the fiscal year when entering your voucher. – Input the right invoice date as just presented by Robert Valenson. l ACO will run accrual and reversing entries based on system invoice date. l – Each journal line will be populated in the “Journal Line Description” field with the Business Unit and Voucher ID. Example: ACARC_00014531 5 6

ACCOUNTS PAYABLE (AP) ACCRUAL How the new process will work (continued) l ACO will notify Department Representatives about accrual details (via email). – Email provides Journal ID for both accrual and accrual reversal journals. – To receive email, please review contact list (in your handouts) and submit additions to: ACOYear. End@co. riverside. ca. us – Type AP ACCRUAL on the email subject line 6 7

ACCOUNTS PAYABLE (AP) ACCRUAL How the new process will work (continued) Public Query allows departments to view accrual details l Query Name: RVGL_AP_ACCRUAL_JOURNALS l Run query: – 1 st prompt: Enter journal ID emailed to you by ACO. – 2 nd prompt: Enter Business Unit + %. Use capital letters for business unit. Example: ACARC% l 7 8

ACCOUNTS PAYABLE (AP) ACCRUAL Benefits To Departments l No Schedule H. l No stamping or separation of documents for “Old Year” or “New Year”. l You can treat July like any other month of the year. l Saves time! 8 9

ACCOUNTS PAYABLE (AP) ACCRUAL Questions l Email address for further communication: ACOYear. End@co. riverside. ca. us Please type AP ACCRUAL on the email subject line. 9 10