USFR Update

1. USFR Update Cris Cable Accounting Services Division Office of the Auditor General

2. USFR Online http://www.azauditor.gov/manuals_schooldistrict.htm

3. May 2012 Revisions Thanks to SFAC for their time and input • Accounting Procedures Introduction • Fixed Assets => Property Control • Expenditures • Payroll • Travel • Glossary

4. Property Control Replaced Fixed Assets Section • Guidance from USFR Memo 196 • Capitalization Threshold • Stewardship List Requirements • Depreciation • Clarified guidance • Classification and Valuation • Disposals and Transfers • More automated procedures

5. Expenditures • Clarified guidance • More automated procedures • Guidance from USFR Memos • Memo 248 – Procurement • One change to incorporate newer legislation on term of contracts from A.R.S. §15-213.K • Memo 253 – Credit Cards and Purchasing Cards

6. Payroll • Clarified guidance • More automated procedures • Prorated payments • Removed Federal Savings Bond Withholding account • Referenced to IRS for more specific guidance on employee vs. independent contractor

7. Travel • Guidance from USFR Memo 231 • Taxable meal reimbursements • Duty post information • Also Revised Travel FAQs on our Web site • Added FAQ for meal cost table (from Memo231) • Added FAQ for Student Activities Chaperone Travel within 50 miles

8. Travel FAQ’s

9. Glossary • Streamlined • Clarified guidance • Accuracy/changes in statutes • based on SFAC input

10. Other USFR Changes • Compliance Checklists • Removed checklists from the sections • Added copy of Compliance Questionnaire to USFR and linked from the applicable section’s TOC • Chart of Accounts • Changes for GASB 63 (very minor) • Terminology changes for proprietary funds • Net Assets is now referred to as Net Position • Some July 2011 changes become effective in 2013

11. USFR Compliance Questionnaire

12. What’s next? • Auxiliary Operations Webinar (Late Summer) • Fiscal Year 2013 Revisions • State and Federal Financial Assistance • Financial Reporting • Audit Requirements • Revised CQ for 2013 audits

13. What Else? • Expenditure Budget Forms (ASAP) • No change to BSL • Increased QTR, TSL, and additional assistance • Reductions for CORL, SCA, JTED, and additional assistance • New K-3 Reading Program and Group B Weight

14. What Else? • Expenditure Budget Forms (ASAP) • CSF • Budget-$227 • Cash-$232 • Posting a link to ADE’s Web site • Removing ASRS reduction lines? • House Bill 2264

15. ASRS Contribution Changes? • House Bill 2264 – Transmitted to Gov on 4/27 If it is signed: • 2 step process • Change contribution rates • Payback employees for excess contributions Wait for ASRS list of people NOT to payback before processing payback payments

16. Step 1 – Change Contribution Rates • Back to 50/50 • For any remaining fiscal year 2012 payrolls 10.745% total (10.5% Retirement & 0.24% LTD)

17. Contribution Rates Before and After HB 2264 Disclaimer

18. Step 2 – Payback Employees Calculating Payback • Calculate Retirement and LTD separately • What employees paid vs. what they would have paid • Example

19. Before and After Comparison

20. Account Coding • Supplemental Pay • Coded to Objects • 6231 – Retirement portion • 6232 – LTD portion • Tax withholdings on 6231 portion only • Fund/Program/Function • Allocate to FPF based on each employee’s salary allocation (Preferred method) • Code to FPF for most significant portion of each employee’s salary (Simplified option)