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GOVERNMENT-WIDE REPORTING

The third option on the Reports menu is Government-wide Reporting, which contains four submenu options: CNVRT, ENTRY, GSA, and GSNP. These include the conversion entries and worksheets necessary to convert from individual governmental funds to government wide activities, and to prepare the Statement of Activities and Statement of Net Position required by GASB statements 34 and 63.

Government wide conversion entries and reports should be prepared only after the funds are closed. Fund accounting must be correct for conversion entries to work properly. Conversion entries are not designed to correct accounting errors within the funds.

The following paragraphs describe the government-wide reporting options and functionality in their recommended processing sequence.

NOTE: Certain worksheets must be saved, closed, and reopened in order for related worksheets to extract linked data properly. This guide indicates where this is so. If subsequent changes are made to worksheets prepared early in the recommended processing sequence, worksheets prepared later in the recommended processing sequence must be opened and saved.

Specialized Function Codes and Definitions Used in Conversion Entries and Government Wide Reporting

Certain specialized function codes and account descriptions are used for automation of conversion entries and government wide reporting. These specialized codes and account descriptions have no application outside of the software and should not be used for any other purpose. LEAs should continue to use the standard account codes as defined in the CSAM in their daily accounting.

Where specialized function codes appear in conversion entries, they are italicized to highlight their specialized use.

  • Functions 1000–1999 are summarized to Function 1000, Instruction.
  • Function 2420 is summarized to Function 2420, Instructional Library, Media and Technology.
  • Function 2700 is summarized to Function 2700, School Site Administration.
  • Functions 2100–2999 except 2420 and 2700 are summarized to Function 2100, Instructional Supervision and Administration.
  • Function 3600 is summarized to Function 3600, Home to School Transportation.
  • Function 3700 is summarized to Function 3700, Food Services.
  • Functions 3000–3999 except 3600 and 3700 are summarized to Function 3900, All Other Pupil Services.
  • Functions 4000–4999 are summarized to Function 4000, Ancillary Services.
  • Functions 5000–5999 are summarized to Function 5000, Community Services.
  • Functions 6000–6999 are summarized to Function 6000, Enterprise Activities.
  • Function 7700 is summarized to Function 7700, Centralized Data Processing.
  • Functions 7000–7999, except 7700, are summarized to Function 7200, All Other General Administration.
  • Function 8500 is summarized to Function 8500, Facilities Acquisition and Construction.
  • Functions 8000–8999 except 8500 are summarized to Function 8100, Plant Services.
  • Function 9100, objects 7431 through 7439, except 7434 and 7438, are summarized to Function 9101, Debt Service Principal.
  • Function 9100, objects 7434 and 7438, are summarized to Function 9102, Debt Service Interest.
  • Function 9100, objects 5800 and 7699, are summarized to Function 9103, Debt Service Issue Costs and Discounts.
  • Function 9200, objects 7110 through 7299, are summarized to Function 9200, Transfers Between Agencies.
  • Function 9300, objects 7611–7629, are summarized to Function 9300, Interfund Transfers.
  • Function 9300, objects 1000–7999, except 5800, 7110–7199, 7611–7629, 7431–7439 and 7699, are summarized to Function 9000, Other Outgo.
  • Function 0000, Object 6900, is summarized to Function 0000, Depreciation (Unallocated).
  • Function 0000, Object 6910, is summarized to Function 0000, Amortization (Unallocated).

Overview of Conversion Entries (Menu Option ENTRY)

The Conversion Entries workbook comprises five worksheets. To access these worksheets, on the Reports menu, click on Government-wide Reporting, then double click on Conversion Entries, and then select each worksheet by its tab.

  • Begin Balance (Beginning Balance): This worksheet is used to include the July 1 beginning balances of Capital Assets, Deferred Outflows of Resources, Long term Liabilities, and Deferred Inflows of Resources relating to governmental activities in the government wide consolidation. A detailed discussion of the beginning balance entry is provided below. The beginning balance entry is extracted automatically to the Fund Consolidation worksheet (see below).

This entry is required each year at least until such time as CDE collects government-wide data from all LEAs and can preload prior year balances into the software.

  • Detail (Conversion Entry Detail): This worksheet is used for development of supporting detail, or workpapers, for each of the possible conversion entries. To the extent possible, general ledger (GL) data is extracted and a proposed default conversion entry is provided based on assumptions defined for each entry. User adjustments are allowed for most default entries. Where GL data is not extracted and a default entry is not provided, user input is required to create the entry. A detailed discussion of each conversion entry is provided below.

When the ENTRY workbook is saved, closed, and reopened, conversion entries from the Detail worksheet post automatically to the Conversion Entry Summary worksheet (see below).

  • CE001 Data by Fnc: This worksheet displays the data extracted for the first conversion entry, CE001, summarized and sorted by function. This worksheet is provided for user reference and analysis. No key entry is required or permitted. A detailed discussion of Conversion Entry CE001 is provided below.

  • CE001 Data by Obj: This worksheet displays the data extracted for the first conversion entry, CE001, summarized and sorted by object. This worksheet is provided for user reference and analysis. No key entry is required or permitted. A detailed discussion of Conversion Entry CE001 is provided below.

  • Summary (Conversion Entry Summary): This worksheet summarizes the conversion entries developed in the Conversion Entry Detail worksheet and presents them in standard journal entry format. When the ENTRY workbook is saved, closed, and reopened, all data in this worksheet is extracted from the Conversion Entry Detail worksheet. No key entry is required or permitted. Entries in the Conversion Entry Summary post automatically to the Conversion Worksheet (see below).

Detailed Instructions for Beginning Balance Entry (ENTRY: Begin Balance)

Entry: Beginning Balance

The purpose of this entry is to include in the government-wide statements the LEA’s beginning balances for capital assets, accumulated depreciation/amortization, deferred outflows of resources, long-term liabilities, and deferred inflows of resources relating to governmental activities as of July 1 of the year for which the LEA is reporting. Balances in these accounts relating to business-type activities are already reported in proprietary funds and are not included in this entry. Current liabilities already reported in governmental funds are not included in this entry.

Capital Assets and Accumulated Depreciation/Amortization. The appropriate conversion entry is to debit capital asset accounts and credit accumulated depreciation/amortization accounts for the July 1 balances of capital assets and accumulated depreciation/amortization.

Deferred Outflows of Resources – pensions only. The appropriate conversion entry is to debit deferred outflows of resources for the July 1 balances of deferred outflows of resources relating to pensions.

Deferred Outflows of Resources – OPEB only. The appropriate conversion entry is to debit deferred outflows of resources for the July 1 balances of deferred outflows of resources relating to pensions.

Deferred Outflows of Resources – other. The appropriate conversion entry is to debit deferred outflows of resources for the July 1 balances of deferred outflows of resources relating to governmental activities (excluding pensions and OPEB), that are not already reported in governmental funds. Unamortized deferred losses on debt refundings from prior years are included in this account.

Long-term Liabilities. The appropriate conversion entry is to debit prepaid expense for unamortized debt issue costs for prepaid debt insurance, credit liability accounts for the July 1 balances of long-term liabilities, and debit or credit liability accounts for unamortized debt issue discount or premium. Accreted interest on deep-discount or capital appreciation bonds as of July 1 is included in the beginning balance of the bonds.

Deferred Inflows of Resources – pensions only. The appropriate conversion entry is to credit deferred inflows of resources for the July 1 balances of deferred inflows of resources relating to pensions.

Deferred Inflows of Resources – OPEB Only. The appropriate conversion entry is to credit deferred inflows of resources for the July 1 balances of deferred inflows of resources relating to OPEB.

Deferred Inflows of Resources – other. The appropriate conversion entry is to credit deferred inflows of resources for the July 1 balances of deferred inflows of resources relating to governmental activities (excluding pensions and OPEB), that are not already reported in governmental funds. Unamortized deferred gains on debt refundings from prior years are included in this account.

No data is extracted for this entry.

The software will automatically calculate and post the net of the debits and credits to beginning net position.

The purpose of conversion entries is to consolidate governmental fund data and convert it from the current financial resources measurement focus and the modified accrual basis of accounting to the economic resources measurement focus and the accrual basis of accounting.

In the consolidation and conversion process, the fund, resource, and goal identities of transactions are largely ignored. Generally, only function (for expenditures) and object (for revenues, assets, and liabilities) remain meaningful. Resource codes are used only where it is necessary to distinguish program revenues from general revenues. In this case resource range 2000–9999 is used to distinguish program revenues, and resource range 0000–1999 is used to distinguish general revenues.

Government wide conversion entries and reports should be prepared only after fund accounting is complete and the funds are closed. Fund accounting must be correct for conversion entries to work properly. Conversion entries are not designed to correct accounting errors within the funds.

To the extent possible, general ledger (GL) data is extracted and a proposed default conversion entry is provided based on assumptions defined for each entry. User adjustments are allowed for most default entries. Where it is not possible to extract GL data and provide a default entry, user input is required to create the entry.

For each entry, data extracted from the GL is displayed in the Extracted Data column. The proposed default conversion entry is displayed in the Default Conversion of Extracted Data column. In most entries, users may adjust the proposed default conversion entry in the User Adjustments column. The Default Conversion of Extracted Data column and the User Adjustments column are combined and displayed in the final Conversion Entry column. User input is allowed only in the User Adjustments column; all other columns are locked.

An “unbalanced” message will display for any entry in which debits do not equal credits in the final Conversion Entry column. For example, occasionally a default conversion entry will be out of balance due to rounding of extracted data. The user must then adjust for the rounding difference in the User Adjustment column to eliminate the unbalanced condition in the final conversion entry.

The software contains twenty seven defined conversion entries. It is likely that most LEAs will not need all twenty seven of the conversion entries.

Entry CE001: Capital Outlay Expenditures

The purpose of this entry is to eliminate amounts reported as capital outlay expenditures in governmental funds for acquisition or construction of capital assets, and to instead report these amounts as increases to capital asset accounts on the statement of net position.

In the governmental funds, capital outlay expenditures were debits to assorted functions. To eliminate the expenditures, the functions in which they were reported must be credited, and capital asset accounts must be debited.

Data relating to capital outlay expenditures is extracted from governmental funds 01 through 57, objects 6000–6999, all functions, plus Function 8500, objects 1000–5999 and 7000–7999.

Because of the large volume of GL data extracted for this entry, the extracted data is displayed in two separate worksheets rather than in the Extracted Data column. In the worksheet titled CE001 Data by Fnc, the extracted data is sorted, subtotaled, and displayed by function. In the worksheet titled CE001 Data by Obj, the extracted data is sorted, subtotaled, and displayed by object. The extracted data is provided for user review and analysis. No key entry is required or permitted.

The default conversion entry uses the following assumptions:

  • Object 9410 is debited for expenditures reported in Object 6100.
  • Object 9420 is debited for expenditures reported in Object 6170.
  • Object 9430 is debited for expenditures reported in Object 6200 plus expenditures reported in Function 8500, objects 1000–5999 and 7000–7999.
  • Object 9440 is debited for expenditures reported in objects 6300, 6400, and 6500.
  • Object 9460 is debited for expenditures reported in Object 6600.
  • The functions to which capital outlay expenditures were charged in the funds are credited.

Users may adjust the proposed default conversion entry in the User Adjustments column.

Example: A typical example of a user adjustment to the default conversion entry would be to capitalize as Work in Progress, rather than as Buildings, any expenditures relating to buildings that were not actually completed as of the end of the period. The default entry debits the capital asset account for Buildings for all expenditures for buildings and improvements. The user would adjust the default entry by crediting Buildings and debiting Work in Progress instead.

NOTE: Function 8500 is locked to prevent user adjustments because residual costs in Function 8500 are not allowed. Function 8500 does not appear on the statement of activities because project costs are normally capitalized and reported on the statement of net position. If a user has properly reported capitalizable project costs in Function 8500 in the funds but wishes to expense certain costs in the year incurred rather than depreciating them over time, the user would adjust the default entry by crediting Buildings and debiting the appropriate function (typically the function that will utilize the asset(s) being expensed).

It is not uncommon for Entry CE001 to be out of balance due to rounding of the extracted data. In that event, an “unbalanced” message will display. The user must adjust for the rounding difference in the User Adjustment column to eliminate the unbalanced condition in the final conversion entry.

Entry CE002: Debt Service Expenditures

The purpose of this entry is to eliminate amounts reported as debt service expenditures in governmental funds for repayment of the principal portion of long term debt, and instead report decreases to long term liability accounts on the statement of net position.

In the governmental funds, debt service expenditures were debits to the Debt Service function. To eliminate the expenditures, the Debt Service function must be credited, and long term liability accounts must be debited.

Data relating to debt service expenditures is extracted from governmental funds 01 through 57, objects 7432, 7433, 7435, 7436, and 7439, Function 9100.

The default conversion entry uses the following assumptions:

  • Object 9662 is debited for expenditures reported in Object 7432.
  • Object 9661 is debited for expenditures reported in Object 7433.
  • Object 9669 is debited for expenditures reported in objects 7435, 7436, and 7439.

Users may adjust the proposed default conversion entry in the User Adjustments column. Example: A typical example of a user adjustment to the default conversion entry would be to correct the long-term debt account that should be reduced as a result of debt service expenditures. The default entry debits Other General Long-Term Debt for any expenditures recorded in Object 7439, Other Debt Service - Principal. The user might adjust the default entry by crediting Other General Long-Term Debt and debiting Leases Payable instead.

Entry CE003: Debt Issuance

The purpose of this entry is to eliminate amounts reported in governmental funds as Other Financing Sources for proceeds of long term debt; amounts reported as Other Financing Sources or Uses for issuance premium or discount; and amounts reported as expenditures for debt issue costs for prepaid debt insurance, and instead report liabilities, prepaid expenses, and deferred outflows of resources or deferred inflows of resources relating to gain or loss on debt refunding, on the statement of net position.

Proceeds of long term debt: In the governmental funds, debt proceeds were reported as credits to Other Financing Sources. To eliminate them, Other Financing Sources must be debited and a long-term liability account must be credited instead.

Debt issuance discount: If the debt was issued at a discount, in the governmental funds the issue discount was reported as a debit to Other Financing Uses. To eliminate it, Other Financing Uses must be credited and the related long-term liability account must be debited instead.

Debt issuance premium: If the debt was issued at a premium, in the governmental funds the issue premium was reported as a credit to Other Financing Sources. To eliminate it, Other Financing Sources must be debited and the related liability account must be credited instead.

Debt issue costs (for prepaid debt insurance only): In the governmental funds, debt issue costs were reported as debits to the Debt Service function. To eliminate the portion of issue costs for prepaid insurance, the Debt Service function must be credited and the prepaid expense account must be debited instead.

Data relating to debt issuance is extracted from governmental funds 01 through 57, objects 5400, 5450, and 7699, Function 9100; and objects 8931, 8951, 8961, 8971, 8972, 8973, and 8979.

The default conversion entry uses the following assumptions:

  • Object 9330 is debited for issue costs reported in objects 5400 and 5450.
  • Object 9669 is credited for proceeds reported in objects 8931 and 8961 and for premium reported in Object 8979.
  • Object 9669 is debited for issue discount reported in Object 7699.
  • Object 9661 is credited for proceeds reported in Object 8951.
  • Object 9666 is credited for proceeds reported in Object 8971.
  • Object 9667 is credited for proceeds reported in Object 8972.
  • Object 9668 is credited for proceeds reported in Object 8973.

Users may adjust the proposed default conversion entry in the User Adjustments column. Examples: A typical example of a user adjustment to the default conversion entry would be to correct the long-term debt account to which the issue premium or discount applies. The default entry debits or credits Other General Long-Term Debt for issue premium or discount. The user might adjust the default entry by debiting or crediting Other General Long-Term Debt, and debiting or crediting General Obligation Bonds Payable instead.

Another example of a user adjustment to the default conversion entry would be if the LEA had issued new debt to refund previously issued debt. The LEA would need to adjust the default entry to report a deferred gain or loss for the difference between the reacquisition price of the refunded debt and the net carrying value of the refunded debt. The user would either debit deferred outflows of resources and credit the related liability (if the reacquisition price of the refunded debt was greater than the net carrying value of the refunded debt), or credit deferred inflows of resources and debit the related liability (if the reacquisition price of the refunded debt was less than the net carrying value of the refunded debt).

Entry CE004: Donated and Contributed Capital Assets

The purpose of this entry is to recognize donated or contributed capital assets. These are not reported in governmental funds because they do not involve inflows or outflows of current financial resources, but they should be reported in the government wide statement of net position at their market value on the date of donation or contribution.

No data is extracted for this entry.

The appropriate conversion entry is to debit a capital asset account and credit general revenue or program revenue. Users may input the necessary amounts in the User Adjustments column.

Entry CE005: Disposal of Capital Assets

The purpose of this entry is to reflect disposals of capital assets in the government wide statement of net position, and to report only any gain or loss from such disposals in the government wide statement of activities.

Disposals may occur through sale, trade in, or scrap. In the governmental funds, any proceeds from disposals of capital assets were reported as credits to revenue or Other Financing Sources. To adjust or eliminate them, revenue or Other Financing Sources must be debited, a capital asset account must be credited, and accumulated depreciation must be debited.

Losses on disposals of capital assets should be reported in the General Administration function, not in the function that utilized the asset. However, insignificant losses can be adjusted through the current year depreciation expense instead.

Data potentially relating to proceeds from the disposal of capital assets is extracted from governmental funds 01 through 57, objects 8631 and 8953. The extracted data is displayed, but no default conversion entry is provided because user analysis is required.

The appropriate conversion entry is to eliminate the carrying value of the capital asset that was disposed of by debiting accumulated depreciation and crediting the capital asset account. Any gain is reported as income. Any loss is reported in the General Administration function. It will usually be necessary to adjust or eliminate amounts reported in the funds as proceeds from the disposal. Users may input the necessary amounts in the User Adjustments column.

Entry CE006: Earned but Unavailable Revenues

The purpose of this entry is to recognize revenues that were earned in the current period, but that were not recognized in governmental funds because they were not “available” for purposes of the modified accrual basis of accounting. No data is extracted for this entry.

In the governmental funds, earned but unavailable revenue is accrued as a receivable and the unavailable portion is deferred until the period in which it becomes available. The appropriate conversion entry is to debit deferred inflows of resources and credit either program revenue or general revenue. Users may input the necessary amounts in the User Adjustments column.

Note that for LEAs, earned but unavailable revenues are rare. A unique example was that portion of the 2001 Special Education Mandate Settlement that LEAs were legally guaranteed to receive, but in increments over a ten-year period. Traditional mandate reimbursements are not recorded as receivables in governmental funds, so are not included in this entry.

Entry CE007: Elimination of Revenues Relating to Prior Periods

The purpose of this entry is to eliminate certain revenues and unavailable revenues that were recognized in the government-wide statements in a prior period, but that were reported in governmental funds in the current period. No data is extracted for this entry.

In the governmental funds, previously unavailable revenue that becomes available in the current period is recognized as revenue. Previously unavailable revenue that remains unavailable continues to be reported as deferred inflows of resources. The appropriate conversion entry is to debit either revenue or deferred inflows of resources and credit net position. Users may input the necessary revenue and deferred inflows of resources amounts in the User Adjustments column. The software will automatically calculate and post the balance to Object 979Z, Net Position.

Entry CE008: Liability for Unmatured Interest on Long Term Debt

The purpose of this entry is to recognize unmatured interest on long term debt. Unmatured interest on long-term debt is not recognized in governmental funds until the period when it is due.

No data is extracted for this entry.

The appropriate conversion entry is to debit the debt service function and credit either accounts payable or, in the case of deep-discount or capital appreciation bonds, the debt itself. Users may input the necessary amounts in the User Adjustments column.

Entry CE009: Liability for Compensated Absences

The purpose of this entry is to recognize the change in liabilities for compensated absences. Liabilities for compensated absences are accrued in governmental funds only to the extent of amounts that have come due as of June 30, because the remainder is not normally expected to be liquidated with current financial resources.

No data is extracted for this entry.

The appropriate conversion entry is to debit (for increases) or credit (for decreases) the applicable functions, and debit or credit Object 9665, Compensated Absences, for the net change. Users may input the necessary amounts in the User Adjustments column.

Entry CE010: Expenditures Relating to Prior Periods

The purpose of this entry is to eliminate expenditures reported in governmental funds that related to a prior period, that were not recognized in governmental funds in the prior period under the modified accrual basis of accounting because they did not involve the use of current financial resources. Typical examples are interest on long term debt that matured and was paid in the current period, payments on structured legal settlements or revenue repayment plans, and payments on retirement incentives financed over time.

No data is extracted for this entry.

The appropriate conversion entry is to debit long term debt or net position, as appropriate, and credit the functions in which the expenditures were reported. Users may input the necessary amounts in the User Adjustments column.

Entry CE011: Adjustments to Work in Progress

The purpose of this entry is to adjust the Work in Progress account for previously capitalized costs of projects that were still in progress at the end of the prior fiscal year but have since been completed; or, more rarely, to write off previously capitalized costs of projects that will not be completed.

No data is extracted for this entry.

The appropriate conversion entry for projects that have been completed is to debit capital asset accounts and credit the Work in Progress account. The appropriate conversion entry for projects that will not be completed is to debit the General Administration function (where project planning costs would have been reported had they not been capitalized) and credit the Work in Progress account. Users may input the necessary amounts in the User Adjustments column.

Entry CE012: Depreciation

The purpose of this entry is to recognize the current year expense for depreciation of capital assets used in governmental activities, and to adjust the related contra-asset accounts for accumulated depreciation. Very rarely, this entry would also be used to recognize the permanent impairment of capital assets.

No data is extracted for this entry.

The appropriate conversion entry is to debit each function in which depreciation was incurred or in which permanent impairment should be recognized, and credit accumulated depreciation. Users may input the necessary amounts in the User Adjustments column.

If amounts recognized for permanent impairments are significant, it may be appropriate to manually reclassify them from an expense of a function to a special or extraordinary item on the statement of activities.

Entry CE013: Amortization

The purpose of this entry is to recognize the current year amortization of debt issue premiums or discounts, deferred gain or loss on debt refunding, and debt issue costs for prepaid debt insurance relating to past issuance of long term debt.

No data is extracted for this entry.

The appropriate conversion entry for amortization of premiums is to debit the long term liability and credit the Debt Service function. The appropriate conversion entry for amortization of discounts is to debit the Debt Service function and credit the long-term liability. The appropriate conversion entry for amortization of a deferred loss on debt is to debit the Debt Service function and credit deferred outflows of resources. The appropriate conversion entry for amortization of a deferred gain on debt refunding is to debit deferred inflows of resources and credit the Debt Service function. The appropriate conversion entry for amortization of debt issue costs for prepaid debt insurance is to debit the Debt Service function and credit the prepaid expense account. Users may input the necessary amounts in the User Adjustments column.

Entry CE014: Incorporation of Assets, Deferred Outflows of Resources, Liabilities, and Deferred Inflows of Resources of Internal Service Funds

The purpose of this entry is to incorporate the assets, deferred outflows of resources, liabilities, and deferred inflows of resources of internal service funds with the assets, deferred outflows of resources, liabilities, and deferred inflows of resources of governmental funds for government wide reporting. Internal service funds are presumed to primarily benefit governmental activities, so their assets, deferred outflows of resources, liabilities, and deferred inflows of resources are reported in the governmental activities column on the government-wide statements.

Internal service fund assets, deferred inflows of resources, liabilities, and deferred outflows of resources are extracted from funds 66 through 68, objects 9110–9499 and objects 9500–9699.

The default conversion entry is:

  • Debit objects 9110–9489 for assets.
  • Debit Object 9490 for deferred outflows of resources - other.
  • Credit objects 9500–9689 for liabilities.
  • Credit Object 9690 for deferred inflows of resources - other.
  • Debit or credit Net Position for the difference.

User adjustments to this default conversion entry are allowed only to enter deferred outflows of resources relating to pensions and OPEB, and deferred inflows of resources relating to pensions and OPEB, to distinguish them from deferred outflows and inflows of resources not relating to pensions and OPEB.

NOTE: Any current year change in net position for internal service funds must be accounted for in Entry CE015, Entry CE016, or both.

Entry CE015: Elimination of Internal Service Funds Profit or Loss Generated Within the LEA

The purpose of this entry is to eliminate any profit or loss in internal service funds resulting from internal activity within the LEA. Internal service funds are presumed to operate on a break even basis for the benefit of the participating governmental activities or functions. To eliminate any redundancy in reporting government-wide revenues and expenditures, any profit or loss from internal service fund operations within the LEA needs to be allocated back to the functions that were overcharged or undercharged for the services provided. This is done using a look back approach based on the proportionate participation of each function.

As an example, assume that an internal service fund provided liability insurance coverage to the following participating (benefiting) functions:

Participating Function Proportionate Participation
General Administration 75%
Pupil Transportation 15%
Food Services 10%
Total 100%

Assume that the internal service fund generated a profit from internal activities of $1,000. Using a look back approach, the costs reported for the participating functions should be reduced as follows:

Participating Function Proportionate Reduction of Costs
General Administration 75% x $1,000 = $750
Pupil Transportation 15% x $1,000 = $150
Food Services 10% x $1,000 = $100
Total 100% x $1,000 = $1,000

No data is extracted for this entry.

The appropriate conversion entry is to debit or credit expenditures in the participating functions, and debit or credit net position for the total. Users may input the necessary amounts in the User Adjustments column. The software will automatically calculate and post the balance to Object 979Z, Net Position.

NOTE:Any current year change in net position for internal service funds must be accounted for in Entry CE015, Entry CE016, or both.

Entry CE016: Incorporation of Internal Service Fund External Activities and Interfund Transfers

The purpose of this entry is to include that portion of internal service fund revenues, expenditures, and profit or loss generated by transactions with parties outside the LEA, plus any interfund transfers within the LEA. Internal service funds are presumed to primarily benefit governmental activities, so any profits or losses from activities outside the LEA are reported in the governmental activities column on the government-wide statements.

Data relating to interfund transfers of internal service funds is extracted from internal service funds 66 through 68, Object 7619, Function 9300, and Object 8919.

The default conversion entry for interfund transfers is:

  • Debit Object 7619, Function 9300 for interfund transfers out.
  • Credit Object 8919 for interfund transfers in.
  • Debit or credit Net Position for the difference.

The appropriate conversion entry for revenues, expenditures, and net profit generated by parties outside the LEA is to debit expenditures and credit either program revenues or general revenues for the appropriate amounts. Users may input the necessary amounts in the User Adjustments column. The software will automatically calculate and post the balance to Object 979Z, Net Position.

NOTE: Any current year change in net position for internal service funds must be accounted for in Entry CE015, Entry CE016, or both.

Entry CE017: Reclassification of Interfund Transfers Involving Fiduciary Funds

NOTE: Entry CE017 must be completed if applicable, and the ENTRY workbook saved, closed, and reopened, before preparing Entry CE019.

The purpose of this entry is to reclassify interfund transfers involving fiduciary funds as transactions with external parties, rather than as internal transactions. Due to the nature of fiduciary funds, interfund transfers between governmental funds and fiduciary funds are not appropriate.

Interfund transfers out are debits and interfund transfers in are credits. To reclassify those involving fiduciary funds, Other Outgo Interfund Transfers must be credited and Other Outgo All Other Transfers Out must be debited. Other Sources Interfund Transfers must be debited and Other Transfers In From All Others must be credited.

Data potentially relating to interfund transfers involving fiduciary funds is extracted from all funds, Object 7619, Function 9300, and Object 8919. Data for the Governmental, Proprietary, and Fiduciary Fund categories is displayed separately. Within the Proprietary Funds category, the enterprise and internal service fund types are displayed separately.

The default conversion entry uses the following assumptions:

  • In the Governmental Funds section, Object 7619, Other Outgo Interfund Transfers is credited and Object 7299, Other Outgo All Other Transfers Out is debited for the amount reported in the Fiduciary Fund section, Object 8919.
  • In the Governmental Funds section, Object 8919, Other Authorized Interfund Transfers In is debited and Object 8799, Other Transfers In From All Others is credited for the amount reported in the Fiduciary Funds section, Object 7619.
  • Corresponding entries are made in the Fiduciary Funds section.
  • If no amounts are extracted in the Fiduciary Funds section, no entry is necessary.

Users may adjust the proposed default conversion entry in the User Adjustments column in the Governmental Funds and Proprietary Funds sections. The default conversion in the Fiduciary Funds section may not be adjusted.

Entry CE018: Reclassification of Interfund Balances Involving Fiduciary Funds

NOTE: Entry CE018 must be completed if applicable, and the ENTRY workbook saved, closed, and reopened, before preparing Entry CE020. The purpose of this entry is to reclassify interfund balances involving fiduciary funds as balances due to or from external parties. Due to the nature of fiduciary funds, interfund balances between governmental funds and fiduciary funds may not be appropriate.

Interfund receivables are debits and interfund payables are credits. To reclassify those involving fiduciary funds, Due From Other Funds must be credited and Accounts Receivable debited, and Due To Other Funds must be debited and Accounts Payable credited.

Data relating to interfund balances is extracted from all funds, objects 9310 and 9610. Data for the Governmental, Proprietary, and Fiduciary Fund categories is displayed separately. Within the Proprietary Funds category, the enterprise and internal service fund types are displayed separately.

The default conversion entry uses the following assumptions:

  • In the Governmental Funds section, Object 9310 is credited and Object 9200 is debited for the amount reported in the Fiduciary Fund section, Object 9610.
  • In the Governmental Funds section, Object 9610 is debited and Object 9500 is credited for the amount reported in the Fiduciary Funds section, Object 9310.
  • Corresponding entries are made in the Fiduciary Funds section.
  • If no amounts are extracted in the Fiduciary Funds section, no entry is necessary.

Users may adjust the proposed default conversion entry in the User Adjustments column in the Governmental Funds and Proprietary Funds sections. The default conversion in the Fiduciary Funds section may not be adjusted.

Entry CE019: Elimination of Internal Transfers

The purpose of this entry is to eliminate interfund transfers among the governmental and internal service funds consolidated in the government wide statements to eliminate the “grossing up” effect of the LEA’s transactions with itself. Interfund transactions between governmental or internal service funds and enterprise funds should not be eliminated.

Interfund transfers in are credits and interfund transfers out are debits. To eliminate them, interfund transfers in must be debited and interfund transfers out must be credited.

Data relating to interfund transfers is extracted from all funds, objects 7611–7619, Function 9300, net of Conversion Entry CE017; and objects 8911–8919, net of Conversion Entry CE017. Data for the Governmental, Proprietary, and Fiduciary Fund categories is displayed separately. Within the Proprietary Funds category, the enterprise and internal service fund types are displayed separately.

The default conversion entry uses the following assumptions:

  • In the Governmental and Internal Service Funds sections, objects 7611–7615 are credited and objects 8911–8916 are debited for the amounts extracted.
  • In the Governmental Funds section, objects 7616 and 7619 are credited for the amounts extracted minus the amounts extracted in the Enterprise Funds section, objects 8916 and 8919.
  • In the Governmental Funds section, Object 8919 is debited for the amount extracted minus the amount extracted in the Enterprise Funds section, Object 7619.

User adjustments to this default conversion entry are allowed in the Governmental and Internal Service Funds sections.

Entry CE020: Elimination of Internal Balances

NOTE: Entry CE018 must be completed if applicable, and the ENTRY workbook saved, closed, and reopened, before preparing Entry CE020.

The purpose of this entry is to eliminate interfund balances among the governmental and internal service funds consolidated in the government wide statements, to eliminate the “grossing up” effect of the LEA’s balances to and from itself. Interfund balances between governmental or internal service funds and enterprise funds should not be eliminated.

Balances due from other funds are debits and balances due to other funds are credits. To eliminate them, Due From Other Funds must be credited and Due To Other Funds must be debited.

Data relating to interfund balances is extracted from all funds, objects 9310 and 9610 net of Conversion Entry CE018, and is displayed separately for each category of funds (Governmental Funds, Proprietary Funds, and Fiduciary Funds).

The default conversion entry uses the following assumptions:

  • In the Governmental Funds section, Object 9310 is credited for the amount extracted minus the amount extracted in the Proprietary Funds section, Object 9610.
  • In the Governmental Funds section, Object 9610 is debited for the amount extracted minus the amount extracted in the Proprietary Funds section, Object 9310 net of CE017.

User adjustments to this default conversion entry are not allowed.

Entry CE021: Total/Net Other Postemployment Benefits (OPEB) Liability and OPEB Expense

The purpose of this entry is to adjust for the change in total/net OPEB liability not accrued in governmental funds because they are not normally expected to be liquidated with current financial resources, and to recognize OPEB expense, deferred outflows of resources relating to OPEB, and deferred inflows of resources relating to OPEB.

No data is extracted for this entry.

The appropriate conversion entry is to debit OPEB expenses by function for the period; and to debit or credit deferred outflows of resources, deferred inflows of resource, and total/net OPEB liability to adjust for the changes in the balances of these OPEB accounts since the prior period. Expenses by function should be reported in proportion to the LEA’s OPEB expenditures by function. The proportion of the LEA’s OPEB expenditures can be derived from the data extracted in conversion entry CE026.

NOTE: For LEAs that self-insure for OPEB, since the self-insurance fund is reported on the accrual basis, any total/net OPEB liability, OPEB expense, deferred outflows of resources relating to OPEB, and deferred inflows of resources relating to OPEB will have already been accrued and this conversion entry will not be necessary.

Entry CE022: Other Liabilities Not Normally Liquidated With Current Financial Resources

The purpose of this entry is to accrue expenses and liabilities for obligations incurred during the year that will not be liquidated with current financial resources (other than obligations for compensated absences, long-term debt, OPEB, and pensions, which are addressed in separate conversion entries). Examples include special termination benefits such as retirement incentives financed over time, structured legal settlements, and revenue overpayments that will be repaid over several years.

No data is extracted for this entry.

The appropriate conversion entry is to debit the functions or revenue accounts in which the obligations were incurred, and credit Object 9669, Other General Long Term Debt. Users may input the necessary amounts in the User Adjustments column.

Entry CE023: Employer’s Net Pension Liability and Pension Expense

The purpose of this entry is to adjust for the LEA’s share of the change in net pension liabilities, not accrued in governmental funds because they are not normally expected to be liquidated with current financial resources, and to recognize the LEA’s share of pension expense, deferred outflows of resources relating to pensions, and deferred inflows of resources relating to pensions, as reported by the pension plan(s).

No data is extracted for this entry.

The appropriate conversion entry is to debit expenses by function for the LEA’s share of pension expense for the period; and to debit or credit deferred outflows of resources, deferred inflows of resources, and net pension liability to adjust for the LEA’s share of the changes in the balances of these pension plan accounts since the prior period. Expenses by function should be reported in proportion to the LEA’s employer contributions to pensions by function. The proportion of the LEA’s contributions can be derived from the data extracted in conversion entry CE024.

Entry CE024: Employer Pension Contributions Made Subsequent to Measurement Date

The purpose of this entry is to adjust for employer pension contributions made by the LEA subsequent to the pension plan measurement date.

In the governmental funds, employer pension contributions were debits to assorted functions. To eliminate the expenditures, the functions in which they were reported must be credited, and Deferred Outflows of Resources must be debited.

Data relating to employer pension contributions is extracted from governmental funds 01 through 57, objects 3100–3299, all functions (except Function 8500). Data relating to the on-behalf contributions made by the state to the state teachers’ retirement system is not extracted.

Users may adjust the proposed default conversion entry in the User Adjustments column.

An example of a user adjustment to the default conversion entry would be if any amount of the LEA’s contributions subsequent to the pension plan measurement date were to satisfy a contribution receivable recognized by the pension plan prior to the end of the current measurement period. For California LEAs, it is unlikely that this adjustment will be needed.

Entry CE025: State’s Share of Pension Expense – Special Funding Situation

The purpose of this entry is to record pension expense for State support of pensions in a “special funding situation” as defined in Governmental Accounting Standards Board (GASB) Statement 68. Pension expense is recognized for the portion of the State’s proportionate share of collective pension expense that is associated with the LEA, net of the state’s on-behalf contribution already recognized in the LEA’s governmental funds pursuant to GASB Statement 85. Revenue is recognized in an amount equal to the net pension expense stated above.

No data is extracted for this entry.

The appropriate conversion entry is to debit expenses by function and credit program revenue. Expenses by function should be reported in proportion to the LEA’s employer contributions to pensions by function. The proportion of the LEA’s contributions can be derived from the data extracted in conversion entry CE024. Users may input the necessary amounts in the User Adjustments column.

Entry CE026: Employer OPEB Expenditures Made Subsequent to Measurement Date

The purpose of this entry is to adjust for employer OPEB expenditures made by the LEA subsequent to the total/net OPEB liability measurement date and before the end of the reporting period.

In the governmental funds, employer OPEB expenditures were debits to assorted functions. To eliminate the expenditures, the functions in which they were reported must be credited, and Deferred Outflows of Resources relating to OPEB must be debited.

Data relating to employer OPEB expenditures is extracted from governmental funds 01 through 57, objects 3700–3799, all functions (except Function 8500).

Users may adjust the proposed default conversion entry in the User Adjustments column.

Entry CE027: Amortization of Lease Assets

The purpose of this entry is to recognize the current year expense for amortization of lease assets used in governmental activities, and to adjust the related contra-asset accounts for accumulated amortization.

No data is extracted for this entry.

The appropriate conversion entry is to debit each function in which amortization was incurred or in which permanent impairment should be recognized, and credit accumulated amortization. Users may input the necessary amounts in the User Adjustments column.

Government Wide Conversion (Menu Option CNVRT)

The Government wide Conversion workbook comprises four worksheets. To access these worksheets, on the Reports menu, click on Government-wide Reporting, then double click on Government wide Conversion, and then select each worksheet by its tab.

  • Fund Consolidation: This worksheet consolidates the assets, deferred outflows of resources, liabilities, deferred inflows of resources, general revenues and program revenues, expenditures, and other financing sources and uses of governmental funds, plus the beginning balances of capital assets, deferred outflows of resources, long term liabilities, and deferred inflows of resources from Beginning Balance entry, into one trial balance.

    The extraction criteria for each row are displayed in the Resource, Function, and Object columns. All data in this worksheet is extracted from GL fund data or Beginning Balance entry. No key entry is required or permitted. The consolidated trial balance data posts automatically to the Conversion Worksheet (see below).

  • Conversion Worksheet: This worksheet combines the consolidated trial balances of governmental funds, capital assets, deferred outflows of resources, long term liabilities, and deferred inflows of resources as presented in the Fund Consolidation with the conversion entries developed in the Conversion Entry Detail worksheet, to produce the figures to be reported on the Statement of Net Position and the Statement of Activities.

    All data in this worksheet is linked from the Fund Consolidation or extracted from the Conversion Entry Summary. Amounts displayed in the Entry Amounts column can be traced to the conversion entries cited in the Entry Numbers column. No key entry is required or permitted except in the Other Worksheet Adjustments column (see below).

    The user should review the Conversion Worksheet carefully. In particular, the user should ensure that no data exists in shaded cells, as these will not pull to the government-wide statements.

    Conversion Worksheet totals post automatically to the Statement of Activities and the Statement of Net Position (see below).

    Cautionary notes regarding the Other Worksheet Adjustments column: This column is provided as a temporary workaround to allow the user to make any entry or adjustment, not provided for in Conversion Entries CE001 through CE027, necessary to convert the governmental fund data from the current financial resources measurement focus and the modified accrual basis of accounting to the economic resources measurement focus and the accrual basis of accounting; or to eliminate redundancy resulting from interfund activity within consolidated governmental funds. This column should not be used to correct accounting errors in the funds.

    Any use of the Other Worksheet Adjustments column should be reported to CDE for consideration as a change order to the conversion entries.

    Amounts entered into the Other Worksheet Adjustments column pull through to the government-wide statements, but do not pull through to the reconciliations of the government-wide statements to the governmental fund statements (see below).

  • Program Revenue Detail: This worksheet identifies the program revenues by function to be reported on the statement of activities in the Charges for Services, Operating Grants and Contributions, and Capital Grants and Contributions columns for governmental activities and for business-type activities.

Program revenue data is extracted from GL data, conversion entries, and the conversion worksheet. The extraction of program revenue uses the criteria displayed in the resource and object columns on the Conversion Worksheet. In extracting program revenues, contributions and transfers in objects 8091–8096, 8098–8099, and 8980–8998 are ignored.

Program revenues are initially identified to the functions that generated them using the methodology and default assumptions described below. Users may adjust the default identification of revenues to functions if the default does not accurately represent the functions that generated the revenues.

The Program Revenue Detail worksheet is divided into six sections:

  • Charges for Services: Governmental Activities
  • Operating Grants and Contributions: Governmental Activities
  • Capital Grants and Contributions: Governmental Activities
  • Charges for Services: Business-type Activities
  • Operating Grants and Contributions: Business-type Activities
  • Capital Grants and Contributions: Business-type Activities

Generally, the governmental activities and business-type activities sections function similarly. Program revenues to be reported as Charges for Services or Operating Grants and Contributions are initially allocated to functions based on the pattern of expenditures by function within each resource in which program revenues occur. In governmental activities, program revenues to be reported as Capital Grants and Contributions are initially allocated to the Instruction function. In business type activities, program revenues to be reported as Capital Grants and Contributions are initially allocated to the Enterprise function.

In the sections for Charges for Services and Operating Grants and Contributions, program revenues extracted from GL data are displayed by resource at the left. To the right, five rows of information are displayed for each resource:

  • The Expenditures by Function row displays expenditures extracted from GL data for that resource, by function.
  • The Percentage of Total row expresses the expenditures by function as percentages of the total expenditures in the resource.
  • The Default Revenues by Function row calculates the initial allocation of program revenues to functions by multiplying the program revenue for the resource by the percentage in the Percentage of Total row.
  • The User Adjustments row allows the user to adjust the identification of program revenues by function if the default does not accurately represent the function(s) that generated the revenues. For example, a grant might have expenditures in several functions, but the user may feel that the grant revenue was actually generated by only one of these functions. The user would enter an adjustment to decrease the revenue identified to the inappropriate functions, and increase the amount of revenue identified to the appropriate function.
  • The Adjusted Revenues by Function row sums the amounts in the Default Revenues by Function and User Adjustments rows.

The sections for Capital Grants and Contributions function similarly to the preceding sections, except:

  • The Expenditures by Function row is not used.
  • The Percentage of Total row is not used.
  • The Default Revenues by Function row initially allocates all of the program revenue to the Instruction function for governmental activities, and to the Enterprise function for business type activities.
  • The User Adjustments row allows the user to adjust the identification of program revenues by function if the default does not accurately represent the function(s) that generated the revenues. For example, a capital grant to build a school should be reported as program revenue of the Instruction function, but a capital grant to build a library should be reported as program revenue of the Library function.
  • The Adjusted Revenues by Function row sums the amounts in the Default Revenues by Function and User Adjustments rows.

Users may adjust the default identification of program revenues by function in the User Adjustments rows. All other rows are locked.

At the bottom of the sections for governmental activities, three final rows are displayed:

  • The Subtotal by Function row displays Adjusted Revenue by Function subtotals for each column.
  • The User Identification of Conversion Entries, Adjustments, and Rounding Differences by Function row allows the user to manually attribute to functions any program revenue amounts from conversion entries; from worksheet adjustments affecting program revenues; or from rounding differences between the program revenues by function on this worksheet and the program revenues reported on the Conversion Worksheet. If any of these amounts exist, the combined amount will display in the Total column and an “unbalanced” message will display to the left. The user must distribute the amount from the Total column among the appropriate functions.
  • The Adjusted [type of program revenue] by Function row sums the amounts in the preceding two rows for each column. If the Total column does not agree to the Conversion Worksheet, an “unbalanced” message will display to the left.

At the bottom of the sections for business-type activities, only one final row is displayed:

  • The Adjusted [type of program revenue] by Function row displays Adjusted Revenue by Function totals for each column.

User adjustments are required to clear any of the following conditions:

  • If program revenues exist in a resource but there were no expenditures in that resource to use as a basis for allocation of revenues by function, the message, “Default not possible; user adjustment required” will display on the Default Revenues by Function row. The user must manually identify the function(s) that generated the program revenue, and enter the appropriate amounts of the program revenue in the columns for the appropriate functions.
  • If program revenue is initially identified on the Default Revenue by Function row to Function 8500, Facilities Acquisition and Construction, an adjustment will automatically be entered in the Function 8500 column on the User Adjustments row to clear it. The message, “Unbalanced; user adjustment required” will display on the Adjusted Revenues by Function row. The user must enter an offsetting adjustment in another more appropriate function. Program revenues cannot be reported for Function 8500 because the Facilities Acquisition and Construction function does not appear on the Statement of Activities.
  • If there is any discrepancy, due to rounding or unbalanced user adjustments, between the Adjusted Revenues by Function for each resource displayed in the Total column at the right, and the program revenues for each resource displayed in the Program Revenues by Resource column at the left, the message, “Unbalanced; user adjustment required” will display on the Adjusted Revenues by Function row. The user must enter an adjustment in the User Adjustments row to balance the revenues by function to the total program revenues.

  • If conversion entries or manual worksheet adjustments involving program revenues exist, or if there is any discrepancy due to rounding between total program revenues by function for all resources and total program revenues on the conversion worksheet, the user must identify the functions that are affected and distribute the amount from the Total column among the appropriate columns for the functions.

    The user must clear all Unbalanced and User Adjustment Required conditions in order for amounts to pull through correctly to the government-wide statements.

    When the CNVRT workbook is saved, closed, and reopened, the Program Revenue Detail worksheet totals post automatically to the Program Revenue Summary (below).

  • Program Revenue Summary: This worksheet summarizes and displays by resource the program revenues to be reported by function on the statement of activities. When the CNVRT workbook is saved, closed, and reopened, all data is extracted from the Adjusted Revenues by Function rows from the Program Revenue Detail worksheet. User adjustment is not allowed. Any “unbalanced” messages in the Program Revenue Summary must be cleared in the Program Revenue Detail. Program Revenue Summary totals post automatically to the Statement of Activities (see below).

Government Wide Statement of Net Position (Report GSNP)

The Government-wide Statement of Net Position workbook comprises two worksheets. To access these worksheets, on the Reports menu, click on Government wide Reporting, then double click on Government-wide Statement of Net Position, and then select each worksheet by its tab.

  • Statement of Net Position: This is the Statement of Net Position required by GASB statements 34 and 63. All data is extracted, either from the Statement of Net Position column of the Conversion Worksheet (for governmental activities) or from GL data (for business type activities), except for the following two items for which key entry is required:

  • Identification of long term liabilities due within one year and due in more than one year. An “unbalanced” message will display until these amounts are entered.

  • Identification of net investment invested in capital assets; restricted for capital projects; restricted for debt service; restricted for educational programs; restricted for other purposes (expendable and nonexpendable); and unrestricted. An “unbalanced” message will display until these amounts are entered.

  • GSNP Reconciliation: This is the required reconciliation between the governmental fund balances reported on the fund statements and the net position reported on the government-wide statement of net position. All data is extracted from GL data or conversion entries. No key entry is required or permitted.

The user should review the reconciliation to ensure that “Total fund balances, governmental funds” ties to the governmental fund balances and that “Total net position, governmental activities” ties to the statement of net position. It may be necessary to manually adjust for minor differences due to rounding before including the reconciliation in the final financial statements.

Note that in the Statement of Net Position, the Governmental Activities column includes the assets, deferred outflows of resources, liabilities, and deferred inflows of resources of internal service funds, which are non governmental funds. Therefore, assets, deferred outflows of resources, liabilities, and deferred inflows of resources displayed as reconciling items on the GSNP Reconciliation will differ in amount from the assets, deferred outflows of resources, liabilities, and deferred inflows of resources reported on the Statement of Net Position by any amounts relating to internal service funds.

NOTE: Amounts entered manually in the Other Worksheet Adjustments column of the Conversion Worksheet do not pull through to this reconciliation, and require manual adjustment.

Government Wide Statement of Activities (Report GSA)

The Government-wide Statement of Activities workbook comprises two worksheets. To access these worksheets, on the Reports menu, click on Government wide Reporting, double click on Government wide Statement of Activities, and then select each worksheet by its tab.

  • Statement of Activities: This is the Statement of Activities required by GASB Statement 34. All data is extracted from the Statement of Activities column of the Conversion Worksheet, the Program Revenue Summary, or GL data. No key entry is required or permitted.

  • GSA Reconciliation: This is the required reconciliation between the change in fund balances reported on the governmental fund statements and the change in net position reported on the government-wide statement of activities. All data is extracted from GL data or conversion entries. No key entry is required; key entry is permitted only to enter the description of expenditures relating to prior periods.

The user should review the reconciliation to ensure that “Total change in fund balances, governmental funds” ties to the changes in governmental fund balances and that “Changes in net position of governmental activities” ties to the statement of activities. It may be necessary to manually adjust for minor differences due to rounding before including the reconciliation in the final financial statements.

NOTE: Amounts entered manually in the Other Worksheet Adjustments column of the Conversion Worksheet do not pull through to this reconciliation and require manual adjustment.

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