YEAR-END REPORT NO. 1, REPORT OF ACCRUALS TO CONTROLLER'S ACCOUNTS - 7952
The Year-End Report No. 1, Report of Accruals to Controller’s Accounts, provides the State Controller’s Office (SCO) with accrual amounts reflected in the agency/department's records but not posted in the accounts maintained by the SCO as of June 30. The SCO uses the accruals to prepare the state's consolidated financial reports.
Report No. 1 consists of the forms below and is used to report accruals to the following accounts:
- Form 571A – Assets
- Form 571B – Liabilities
- Form 571A/B
1) Asset and liability accounts not preprinted on Forms 571A and 571B.
2) Accrual accounts that require more than one subsidiary number (e.g., Due From Other Funds). - Form 571C – Provided by the SCO and preprinted with the agency/department's appropriation expenditure, reimbursement, transfer, and revenue accounts.
- Form 571D – Appropriation expenditure, reimbursement, transfer, and revenue accounts not preprinted on Form 571C.
The Report No. 2, Accrual Worksheet, shown in the 7953 Illustration contains the accrual amounts necessary to complete the Report No. 1. However, the debits and credits shown in the Net Total Accruals Per Agency column will be reversed when reported on
Report No. 1. See 7952 Illustration 3 and 7953 Illustration.
At year-end, agencies/departments identify the amount of obligations and the amount of encumbrances as of June 30. Obligations are amounts for goods and services received that have not been scheduled for payment as of June 30. Encumbrances represent commitments for goods and services that will be received in the following year(s). Encumbrances must be reported to the applicable liability account (e.g., Accounts Payable, Due To Other Funds, etc.) based on the supplier type. Record encumbrance amount as a credit in the Encumbrances column for the corresponding liability account. See 7952 Illustration 2.
Reimbursements funding encumbrances must be reported in the applicable receivable account (e.g., Due From Other Funds). Record the reimbursement for encumbrances as a debit in the Encumbrances column for the respective receivable account on
Report No. 1. See 7952 Illustration 1.
A sample of Report No. 1, Forms 571A, 571B, 571 A/B, and 571C is shown in the 7952 Illustrations.