RECORDING ACCRUALS – INCOME AND TRANSFERS - 8217

(New: 10/2020)

New section and renumbered from sections 8290, et seq.

 

In addition to the revenue accruals described in SAM section 8210, the following accruals should be recorded.

 

Interest on Investments

 

Interest earned as of June 30 on investments will be recorded in accounts receivable and accrued as revenue as of that date. Interest earned by funds not used in their entirety by one agency/department will be recorded only by the State Controller’s Office. Agency/departments that use funds in their entirety will record interest earned by such funds in the manner prescribed in SAM section 8284.

 

Interest on Loans

 

Interest earned as of June 30, but not received on loans to other funds, other governmental and external entities will be recorded in accounts receivable and will be accrued as of that date. For inter-fund loans, the agency/department recording the interest revenue will inform the borrowing agency/department of the amount it is to accrue as an expense of the fiscal year just ended.

 

Interfund Transfers

 

Amounts transferable as of June 30 and revenue that can be accrued as of June 30 but will be transferred to other funds when collected will be accrued to Account 6xxxxxx-Transfers (Legacy Account 9811 and 9812). Operating Transfers Out is the transferor fund and Operating Transfers In, by transferee fund.

 

Accrual Reversal in the New Year

 

As of July 1 each year, amounts accrued as of June 30 will be reversed as follows:

1. The full deferral will be re-established on accounts receivable adjusted in accordance with SAM section 8296, Year-End Procedures.
2. The net offsetting amount required in this reversing entry will be applied to Account 4180100- Prior Year Revenue Adjustments (Legacy Account 9892). See SAM section 10611, Entry A-9R, Entry A-9 Is Semi-Reversed.