USFR Update

Cris CableAccounting Services DivisionOffice of the Auditor General

USFR Online

http://www.azauditor.gov/manuals_schooldistrict.htm

May 2012 Revisions

Thanks to SFAC for their time and input–Accounting Procedures Introduction– Fixed Assets => Property Control– Expenditures–Payroll– Travel–Glossary

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

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

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

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

Travel FAQ’s

Glossary

• Streamlined • Clarified guidance – Accuracy/changes in statutes– based on SFAC input

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

USFRComplianceQuestionnaire

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

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

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

ASRS Contribution Changes?

• House Bill 2264 – Transmitted to Gov on 4/27If 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

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)

Retirement Pension Long TermTotal

& Health Insurance DisabilityBenefit Income Plan

Employee 11.13% 0.26% 11.390%Employer 9.87% 0.23% 10.100%

21.00% 0.49% 21.490%

Retirement Pension Long Term

Total& Health Insurance Disability

Benefit Income PlanEmployee 10.50% 0.24% 10.74%Employer 10.50% 0.24% 10.74%

21.00% 0.48% 21.48%

Contribution Rates Before and After HB 2264

Disclaimer

Step 2 – Payback Employees

Calculating Payback – Calculate Retirement and LTD separately– What employees paid vs. what they would

have paid– Example

Before and After ComparisonExample for an employee with: Annual salary $ 30,000.00

Retirement LTD Total Contribution

% to Total Annual Salary

47/53 split $ 3,339.00 $ 78.00 $ 3,417.00 11.390%50/50 split 3,150.00 72.00 3,222.00 10.74%Difference 189.00 6.00 195.00 Supplemental PayTaxable $ 189.00 Non-taxable 6.00

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)