EIS Fiscal Yearend Closing Procedures and Updates May

EIS Fiscal Year-end Closing Procedures and Updates May 14, 2009

Disclaimer • These are generic procedures intended for use by ITC’s in creating their own local procedures. Districts should use the procedures provided to them by their ITC. 2

Overview w New Capital Assets EMIS Requirement w New EISEMS Program w EIS fiscal yearend closing procedure 3

New Capital Assets EMIS Requirement w New reporting requirement for Period H (July) n Open July 2 – Sept. 25 w Total Original Costs by Asset Class w Total Depreciation by Asset Class w Presented same as in notes to GAAP financial statements 4

A Balance at 6/30/08 C B Additions Reductions A+B-C Balance at 6/30/09 Governmental Activities Nondepreciable Capital Assets Land $568, 026 Construction in Progress Total Nondepreciable Capital Assets ❶ $ 0 $ 568, 026 0 2, 567, 899 568, 026 2, 567, 899 0 3, 135, 925 298, 799 175, 745 0 17, 014, 793 886, 154 276, 124 42, 478 (69, 454) 249, 148 2, 023, 796 181, 110 (199, 314) 2, 005, 592 19, 613, 512 1, 285, 487 (268, 768) 20, 630, 231 Depreciable Capital Assets Land Improvements Buildings and Building Improvements 474, 544 0 Furniture, Fixtures, and Equipment Vehicles Total Depreciable Capital Assets ❷ 17, 900, 947 Less Accumulated Depreciation Land Improvements Buildings and Building Improvements Furniture, Fixtures, and Equipment Vehicles Total Accumulated Depreciation ❸ Depreciable Capital Assets, Net ❹ = ❷+ (20, 291) (14, 669) 0 (34, 960) (3, 816, 987) (180, 484) 0 (3, 997, 471) (201, 807) (12, 868) 65, 968 (148, 707) (1, 082, 903) (143, 775) 199, 314 (1, 027, 364) (5, 121, 988) (351, 796) 265, 282 (5, 208, 502) 14, 491, 524 933, 691 (3, 486) 15, 421, 729 $15, 059, 550 $3, 501, 590 ($3, 486) $18, 557, 654 ❸ Governmental Activities Capital Assets, Net ❶+❹ 5

EMIS Fields Required w Capital Assets Code (QC 971) n n Specifies which row of statement One record reported for each code (row) with non-zero amounts w Old Balance (QC 972) w Additions (QC 973) w Deductions (QC 974) 6

Capital Assets Codes w NDC Capital Assets not being depreciated, Construction in Progress w NDL Capital Assets not being depreciated, Land w DBI Depreciable Capital Assets, Buildings and Building Improvements w DBK Depreciable Capital Assets, Books w DFE Depreciable Capital Assets, Furniture, Fixtures and Equipment w DIN Depreciable Capital Assets, Infrastructure w DLI Depreciable Capital Assets, Land Improvements w DVE Depreciable Capital Assets, Vehicles 7

Capital Assets Codes (Cont. ) w LBI Accumulated Depreciation, Buildings and Building Improvements w LBK Accumulated Depreciation, Books w LFE Accumulated Depreciation, Furniture, Fixtures and Equipment w LIN Accumulated Depreciation, Infrastructure w LLI Accumulated Depreciation, Land Improvements w LVE Accumulated Depreciation, Vehicles w See EMIS Guide, Ch. 4 for definitions of each category 8

New EISEMS Program and. COM Procedure w EISEMS. COM procedure n n Prompts for Entity ID’s to include or exclude Runs EIS 103 for Original Cost amounts Runs EIS 104 for Depreciation amounts Compiles results into EISEMS. SEQ file Ch. 5 EMIS Sequential file with Capital Assets info l Load into EMIS in normal manner l n Generates summary report l Similar to sample on slide 5 9

EISEMS Functionality w Governmental assets only n n Fund type = “G” From EISMNT/FNDSCN for “current fund” w Excluded/Error if no or invalid Asset Class w For Asset Class 01 xx n Uses “Depreciation Method” to determine Code 10

EISEMS Asset Class Mappings w w w w 01 xx 02 xx 03 xx 04 xx 05 xx 06 xx 08 xx = = = = NDL if Depreciation Method = N DLI, LLI Land Improvements DBI, LBI Buildings/Improvements DFE, LFE Furniture/Fixtures/Equip. DVE, LVE Vehicles DIN, LIN Infrastructure DBK, LBK Books NDC Construction in Progress 11

EIS Items to Check w “Land” items have Deprec. Method = “N” w Fund types all entered and accurate n EISMNT/FNDSCN w Capitalized items all have accurate “Class” n n n EISSCN/ITMSCN screen 1 Check with EISRPT/EIS 304 Recommend sorting by AC, IC 12

EIS Fiscal Year-End Closing Procedure w Finish all current year processing. Items received prior to June 30 th (2009) should be added to EIS for FY 2009, Any items received after June 30 th can be added to the EIS pending file for FY 2010. w NOTE: If the depreciation data has been changed so that it is necessary to completely recalculate the life-to-date (LTD) depreciation from the beginning for a number of items, you may need to run the program EISDEPR. However, if you have been tracking depreciation on some of these tags for some time, then this program might cause problems. 13

EIS Fiscal Year-End Closing Procedure w Districts with a Life Limit specified for the capitalization criteria may choose to run an EIS 304 Brief Asset Listing to verify all items meeting the dollar capitalization criteria also have a valid Life Limit and are on file as capitalized assets. w In EIS 304, select non-capitalized items and choose to select only items with an original cost equal or higher than the capitalization threshold. Items not meeting both of the capitalization limits will not be capitalized; therefore, this will produce a listing of any items that currently are not capitalized that most likely should be. Enter capitalization option: (C, N, B, ? ) <B> _ N Include or Exclude Lot Items by Quantity? (I, E, N, ? ): <N> _ Enter selection option (1 -9, *, ? ): <*> _ Do you wish to select items by original cost? (Y, N, ? ) <N> _ Y Enter original cost: <. 00> ____. __ 1000 14

Fiscal Year-End Closing Procedure w When all items have been entered, run the recommended list of reports (this includes all necessary GAAP schedules). w All recommended FYE reports are explained in the upcoming slides. 15

Fiscal Year-End Closing Procedure w EIS 101 – Schedule of Fixed Assets by Source…. . provides a summary of the original cost of capitalized items by their source or the fund the items were originally charged to when purchased. n n Source means “the fund the items were originally charged to when purchased”. EIS 101 uses the PO information from the acquisition record (ACQTRN) to identify the source fund used in purchasing the items. Output file: EIS 101. TXT w EIS 102 – Schedule of Fixed Assets by Function and Class…. produces a schedule of fixed assets by function and class. Can be generated by function and class, class or a summary by function and class. Creates a summary and detail report n n The Book Value on the report is the Original Cost minus the Total Deprecia Output files: EIS 102 S. TXT and EIS 102 D. TXT 16

EIS 103 w Contains “changes” in capital asset balances during the current fiscal year w The EIS 103 creates three reports as listed below: n n The EIS 103 S is a summary report listing the beginning balance, acquisitions, dispositions, transfers in, transfers out, adjustments, and the ending balance in separate columns horizontally across the report. EIS 103 D is a detailed schedule of changes. This report lists any individual tag numbers that may have incurred acquisitions, dispositions, transfers, or adjustments. EIS 103 E is an error report. The summary and detail reports will page break on each fund type: fiduciary, governmental, proprietary, and undefined. w The GAAP flag must be set to “Y” to be able to generate this report. w For FYE, it is recommend to generate the report 3 different ways (AC, FC & FD). 17 w Specific entities can be included or excluded (i. e. NOGAAP)

EIS GAAP Reports w Totals by Fund Type on the EIS 101, EIS 102, and EIS 103 should match when balancing out for the fiscal year-end. n Any errors reported on the EIS 103 E report should be resolved prior to closing the fiscal year. 19

EIS 104 w Contains changes in depreciation of fixed assets during the fiscal year w The EIS 104 creates two reports as listed below: n n n EIS 104 S is a summary report listing the beginning depreciation, continuing items, acquisitions, dispositions, transfers, adjustments and ending depreciation balance in separate columns horizontally across the report. The following equation is used in determining the ending depreciation EIS 104 D is a detailed schedule of changes. This report lists any individual tags numbers that may have incurred acquisitions, dispositions, transfers or adjustments Reports will page break on each fund type: fiduciary, governmental, proprietary and undefined w The GAAP flag must be set to “Y” in order to generate a valid report. w For FYE, it is recommended to generate the report 3 different ways (AC, FC & FD) 20 w May be used as a depreciation balancing tool with the EIS 305.

Suggested Non-GAAP Reports w EIS 303 – Inventory Master Listing…. . includes all data on file for items; VERY LARGE report – it can produce a complete listing of all items or of specified subsets (i. e. generate a report of just depreciation information for all items); don’t recommend printing out a hard copy of the report. w EIS 304 – Brief Asset Listing…. . a one line per item listing of all items on file or subsets; The following EIS 304 reports are recommended…they include capitalized items only and Status Codes of “A, N, EH, and EN” (with the exception of the disposition report). n Brief Asset Listing by fund n Brief Asset Listing by function n Brief Asset Listing by asset class n Acquisitions for current fiscal year n Dispositions for current fiscal year 22

Suggested Non-GAAP Reports w EIS 305 – Book Value (Depreciation) Report…. . shows depreciation information listing original cost, salvage value, book value, % of depreciation, and last year of useful life. n The date 06/xxxx (where xxxx is FY being closed) is used for the reporting date. The following EIS 3045 reports are recommended…they include capitalized items only and Status Codes of “A, N, EH, and EN” (with the exception of the disposition report). n Book Value Report by function n Book Value Report by class n Depreciation for current FY dispositions by function n Depreciation for current FY dispositions by class 23

Suggested Non-GAAP Reports w EIS 401 – Insurance Values Report…. . lists insurable values and replacement cost information for items; insurable values listed reflect the insurance classifications assigned to the item categories in EISMNT/CATSCN; Recommended if the district maintains current replacement cost and/or insurable values on the inventory item records. w EIS 801 – Audit Report…. . tracks changes made to the EIS files n For FYE, select the Official Option and keep on file for the auditors used for an official audit trail 24

Fiscal Year-End Closing Procedure w After checking EIS 103/EIS 104, run the EISEMS program (if on GAAP) n EISEMS. SEQ file needs submitted via EMIS (period H) w Make a copy of the EIS files and other appropriate files. w Run EISCLS n n n Creates EISCLS. TXT which includes ending balances by Fund, Function and Asset Class. (These are the beginning balances for the next year) Creates an EISDEP. TXT which is a summary report of the current year’s depreciation posted by fund. Advances EIS last FY closed flag in EISMNT/DATSCN by one year Adds one year’s worth of depreciation to LTD depreciation field Updates beginning balance fields for new FY w Once EISCLS is complete, they may start entering inventory for the new fiscal year. 25

Fiscal Year-End Closing Procedure n If not on GAAP, ITC needs to assist in helping the district start up on GAAP by running EISGAAP. l EISGAAP: run only once and at the beginning of the GAAP startup year. l Sets GAAP flag in EISMNT/DATSCN to “Y” l Creates beginning information fields for each asset (EISITM. IDX) l Generates a beginning balance report for the GAAP startup year w Once EISGAAP is complete, they may start entering inventory for the new fiscal year. 26

Questions? 27