CAI Financial Reports - CAI User Documentation Sitesharepoint.gocai.com/Content/Financial Reporting Explanations.pdf · November 2013 Financial Report Explanations Page 1 of 37 CAI

November 2013 Financial Report Explanations Page 1 of 37

CAI Financial Reports

Financial Report Explanations

The intent of this document is to provide a brief description of some (not all) of the reports available in CAI’s Financial Software and how they can be used by county officials to demonstrate operational and fiscal accountability.

We appreciate the input from our users in helping to prioritize and aid in the development of all of our programs. If you have any questions, please feel free to contact the help desk.

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A fundamental characteristic of governmental accounting is the concept of the fund as the basic unit of financial accountability. The Governmental Accounting Standards Board (GASB) has identified accountability as the primary objective of financial reporting. Accountability consists of two components – operational accountability and fiscal accountability. Financial reports and statements help counties demonstrate operational accountability. Fiscal accountability is defined by the GASB as the responsibility of governments to justify that their actions in the current period have complied with public decisions concerning the raising and spending of public monies in the short term, usually one year. Fund accounting helps counties demonstrate fiscal accountability.

Helpful Accounting Terminology

Revenue ~ Government revenue includes all amounts of money (i.e. taxes and/or fees) received from sources outside the government entity. Note: When tax revenue comes into the county, accounts receivable is debited (increased) and revenue is credited (increased).

General Fund Expenditures ~ Expenditures include salaries and wages, supplies, utilities, transportation, advertising, insurance repairs and maintenance, other services and charges, capital asset acquisitions, and certain types of debt service payments.

General Fund Assets ~ Assets include cash, investments, receivables, amounts due from other funds and other governments, supplies inventory, prepaid items, and advances from other funds. Receivables may include property taxes, accounts, and interest receivables.

General Fund Liabilities ~ Liabilities include accounts payable, accrued payroll and employee benefits, accrued interest, amounts due to other funds and other governments, and claims and judgments payable. Other liabilities may include deferred revenues, advances from other funds, and matured principal and interest on general long-term debt.

Fund Balance ~ The difference between assets and liabilities in the governmental funds is reported as fund balance. Fund balance is divided into reserved and unreserved components, with unreserved representing amounts considered available for spending. Common examples of reserved fund balances include reserves for inventories, prepaid, and encumbrances.


Click on the links below to take you to a detailed description of each report.

REVENUE REPORTS

2012 Monthly Revenue by Fund (FN307) Revenue by Quarter (FN608)

2012 Quarterly Revenue by Fund (FN308) Revenue Cash Report (FN570)

5 Year Revenue Summary (FN301) Operation in Taxes (FN505)

5 Year Revenue by Fund (FN300)

BUDGET REPORTS

Remaining Budget Analysis (FN521) Budget Comparison Summary (FN711)

Budget Worksheet (FN705) Summary Budget Worksheet Exp (FN778Sum)

Budget Statistics Summary (FN773) Detailed Budget Worksheet Exp (FN778Det)

Over Budget Expenditure Report (FN503OB) Budget Worksheet Expense (FN778)

Budget Variance (Rev & Exp) (FN302) Budget Worksheet Revenue (FN779)

Budget Totals by Fund & Account (FN004ACT)


CASH REPORTS

Treasurer/Auditor Joint Quarterly (FN810) Cash Source Summary (FN558)

Remaining Cash Report (FN863W) Statement of Cash (TRB826 Treasurer Rpt)

Monthly Cash Flow by Fund (FN865) Operation in Funds (FN801)

Cash Liabilities (FN861)

EXPENSE REPORTS

Expense Activity Summary (FN503) Operation in Expenses (FN520)

Expense Activity Detail (FN504) Operation in Warrants (FN572)

2012 Monthly Expense by Fund (FN309) Warrant Register (FN856)

Trial Balance Consolidated (FN501Y) Expense Activity Over Budget (FN503OB)


Revenue Reports

Government revenue includes all amounts of money (i.e. taxes and/or fees) received from sources outside the government entity.

Revenue Monthly by Fund (FN307)

Report includes revenue from taxes collected as well as standard revenue broken out by fund/month for a fiscal year. Note: Balances include adjustment journal entries.


Revenue Quarterly by Fund (FN308)

Report includes revenue from taxes collected as well as standard revenue broken out by fund/quarter for a fiscal year. Note: Balances include adjustment journal entries.


5 Year Revenue Summary (FN301)

Top level report that displays five year revenue trending by account. Note: This report has an option to include revenue from trust funds if you choose.


5 Year Revenue by Fund (FN300)

Five year revenue trending by fund/account. Note: This report has an option to include revenue from trust funds if you choose.


Revenue by Quarter (FN608)

Report includes standard revenue (non tax related revenue) sub-totaled by fund/account and quarter for a fiscal year.


Revenue/Cash Report (FN570)

The Revenue Cash Report displays the accrued revenue (tax charge/billed taxes), receivables (taxes collected), revenue-cash (standard non tax revenue that does not have a receivable tied to it) and the grand total cash received. Note: Accrued revenue is not revenue we have received it is revenue we have billed out (i.e. property taxes) but possibly not received yet.


Operation in Taxes (FN505)

Report displays all tax related totals by receivable account. Note: The ending balance is the difference between the tax charge and the revenue that has been collected (the amount of property tax that still needs to be collected).

a. Beginning Balance - Beginning balance amount carried over from the prior year.

b. Tax Charge - Billed tax amount

c. Cancellations - Tax cancellations

d. Collections - Revenue received

e. Ending Balance - Amount left to collect based off of the tax charge. Beginning Balance + Tax Charge –

Cancellations - Collections


Budget Reports

Detailed Remaining Budget Analysis (FN521)

Budget to actual comparison – displays the original budget, budget changes and the final approved budget amount. Expenses display paid and unpaid claims percent of budget used and the budget remaining.


Budget Worksheet Expenses (FN705)

Compares current budget to the prior two fiscal years budget and actuals by fund, department, account and sub account.


Budget Statistics Summary (FN773)

Top level by fund comparison of revenue and expenses that displays budget, revenue, expense, percent of budget received (revenue), percent of budget used (expense) and available cash remaining. Note: Report only includes funds that are marked to be budgeted.


Budget Variance (FN302)

The variance report is by fund, department, account and subaccount and displays where each fund and department stands on their revenue and expenses as compared to the budget. The report displays the budget, actual (revenue or expense), tax adjustments, the amount over or under the budget, percent of revenue budget received or percent of expense budget used.


Budget Totals by Fund and Account (FN004Act)

Budget listing by fund and account that displays all three budget amounts (Department Requested, Budget Officer, Approved) Note: Can be run for both expense and revenue budgets.


Budget Comparison Summary (FN711)

The budget comparison report is very useful during the budget creation process. At a glance you can compare the prior year’s budget to your current budget and quickly see what the percent of change is. The report provides a way to quickly identify accounts that have a drastic change from the prior year. Note: Can be run for both expense and revenue budgets.


Budget Worksheet Summary (FN778SUM)

High level budget by fund, department and account classification. This report allows you to compare three years of budget and expenses to the budget you are creating. This report is very useful during the budget creation process.


Budget Worksheet Detail (FN778DET)

Detailed budget by fund, department, account classification, account and subaccount. This report allows you to compare three years of budget and expenses to the budget you are creating. This report is very useful during the budget creation process.


Budget Worksheet Expenses (FN778)

Detailed budget by fund, department, account classification, account and subaccount. This report allows you to compare three years of budget and expenses to the budget you are creating. This report is very useful during the budget creation process.


Budget Worksheet Revenues (FN779)

Detailed budget by fund, department, account and subaccount. This report allows you to compare three years of budget and revenue received to the budget you are creating. This report is very useful during the budget creation process.


Cash Reports

Treasurer/Auditor Joint Quarterly Report (FN810)

Top level by fund revenue cash report. Includes revenue received - disbursements paid out - outstanding warrants = available cash. Note: Available cash should match the Operation in Funds.


Remaining Cash Analysis (FN863W)

Top level by fund cash report. Displays current cash balance – warrants that have been written = Remaining Cash. Note: Available cash should match the Operation in Funds..


Monthly Cash Flow by Fund (FN865)

Top level by fund and monthly cash flow report. Income (by type) – Expenses (by classification) = Displays current cash balance.

a. Taxes - all general ledger accounts that are flagged as tax accounts

b. Revenues – all revenue accounts

c. Total Income – taxes + revenues

d. Payroll – Expense accounts with a salary budget category

e. Benefits – Expense accounts with a benefits budget category

f. Other Expenditures – Expense accounts with a other expenses or capital budget categories

g. Total Expenditures – Payroll + Benefits + other expenses

h. Monthly Balance – Income - expenses


Cash Liabilities Report (FN861)

The Cash Liabilities Report shows the Cash Balance which includes all warrants issued. Note: For check counties when a check is issued the amount is automatically deducted from the cash balance so there is no need to account for outstanding checks in your Available Cash Balance they have already been deducted.

a. Cash Balance = 100 Cash Account b. Accounts Payable GL Control = 205 Liability Account c. Payroll Accounts Payable = Total Unprocessed Payroll Warrants d. Warrant Payable GL Control = 200 Liability Account e. Outstanding Warrants = Total of Outstanding Warrants from the Payment Table f. Available Cash Balance = Cash – Accounts Payable – Warrants Payable

This is a critical report that is used to make sure that all of the accounts and their offsets are in balance. The ending cash balance should match the Joint Quarterly Report (FN810), Remaining Cash (FN836W), Cash Liabilities (FN836), Budget Statistics Summary (FN773),


Cash Source Report (FN558)

The Cash Source Report shows the total Revenue/Cash received broken down by amounts hitting the receivable accounts (i.e. property tax payments) and then all other revenue. The total of these two amounts is the Total Revenue/Cash Received. The total column includes any increase or decrease journal entries. Note: This report should equal the AC Listing Summary Report (FN805S)


Statement of Cash (TRB826)

The Statement of Cash compares the cash in the treasurer’s bank accounts to the total cash in the clerk’s general ledger 100 cash account. If the Clerk and Treasurer have processed all their JE’s and AC’s and redeemed warrants these amounts should match. Note: These amounts should also match the ending balance on the Operation in Funds Report. If this report is not in balance you should not close your fiscal year.


Operation in Funds - Summary (FN801)

The Operation in Funds takes the beginning balance plus any received revenue plus or minus adjustments minus checks issued to get the Total Available Cash. The report displays the following fields

a. Beginning Balance b. Amount Received/Revenue AC’d by Treasurer

Amount Received should equal the Cash Receipts Grand Total on the Cash Source Report and the Revenue/Cash Report Amount Received + Journal Increase should match the total amount of Receipts and Transfers on the Joint Quarterly Report

(FN810) c. Adjustments (Journal Entries Increase & Decrease) d. Amount Disbursed (total redeemed warrants)

Amount Disbursed + Journal Decrease should equal Disbursements and Transfers on the Joint Quarterly Report (FN810)

e. Ending Cash Balance (Current Available Cash) This takes the beginning balance plus any received revenue minus adjustments and redeemed warrants to get your Total

Available Cash Ending Balance should equal the Available Cash Balance on the Cash Liabilities Report Ending Balance should match the Total of Accounts and Total of Funds on the Statement of Treasurer’s Cash Report Ending Balance should match the Ending Balance on the Joint Quarterly Report


Expense Reports

Expenditure Activity Summary (FN503)

Detailed budget/expenditure report. Displays the approved budget – expenses = remaining budget with the percent of budget used.


Over Budget Expenditure Report (FN503OB)

Detailed budget/expenditure report that only displays accounts that are over budget. Original Budget – Current Expenses = Budget Remaining.

Note: This report page breaks on each Fund and Department, it was designed to be printed out and distributed to each department head. Displays the approved budget – expenses = remaining budget with the percent of budget used.


Expenditure Activity Detail (FN504)

Detailed expense report by fund, department, account and subaccount. Displays vendor paid, payment description, invoice #, warrant #, payment date and payment amount


Monthly Expenses by Fund (FN309)

Top level expense report by fund and month. Displays the total expenses for each month of the fiscal year.


Operation in Expenses (FN520)

Top level expense report by fund and account classification. Displays the current year budget and expenses and two prior year expenses and the percent of current budget used. Approved budget – Current Expenses = Remaining Budget


Operation in Warrants (FN572)

Top level warrant report by fund that breaks down the warrants into their status.

a. Outstanding Warrants – Prior years outstanding warrants. Matches the Warrant Register-Outstanding Warrants (FN856)

b. Warrants Issues – Total of the warrants issued. Matches the Warrant Register-Warrants Issued (FN856)

c. Warrants Cancelled – Warrants that were cancelled, voided or stop payment. Matches the Warrant Register-Stop Payments,

Voided, Cancelled Warrants (FN856)

d. Warrants Paid – Redeemed warrants. Matches the Amount disbursed – Direct Deposit Amount on the Operation in Funds

(FN801), Warrant Register-Redeemed Warrants (FN856)

e. Outstanding Warrants – Current year outstanding warrants. Matches the Outstanding Warrants on the Cash Liabilities

(FN861), Outstanding Warrants on the Joint Quarterly Report (FN810), Warrants Payable on the Remaining Cash Analysis

(FN863W), Warrant Register-Outstanding Warrants (FN856)


Warrant Register (FN856)

The warrant register report is based on the status of the warrant. Warrants can be summarized by Warrants Issued, Redeemed Warrants, Outstanding Warrants, Voided Warrants, Cancelled Warrants, Stop Payment and Unclaimed Property warrants for a date range.


Trial Balance Consolidated (FN501Y)

Assets:

Cash = 100 Account (debit – credit); Petty Cash = 102 Account (debit – credit) Taxes Receivable = GL Accounts with the Receivable Flag selected (debit – credit) Accounts Receivable = 150 or 153 Accounts (debit – credit) Other Assets = Accounts that are a GL Account Type and Asset Account Classification – Accounts 151 through 199 (debit – credit) Liabilities & Fund Balance: Warrants Payable = 200 Account (credit – debit) Accounts Payable = 205 Account (credit – debit) Other Payables = Liability Accounts that aren’t accounts 200 or 205 (credit – debit) Fund Balance = Accounts that are a GL Account Type and Fund Balance Account Classification (credit – debit) Revenue Over Expense = Revenues – Expenses – Remittances Expense Over Revenue = Revenues – Expenses – Remittances Operations:

Revenue = All Revenue Account Types (credit – debit) Expenses = All Expense Account Types (debit – credit)

Remittances/Payments = Includes warrant check correction journal entries, or history records that are remittance, payroll, warrant redemption or claim types (debit – credit)

Revenue Over Expenses = Revenues – Expenses – Remittances Expense Over Revenue = Revenues – Expenses – Remittances


Documents

CAI Financial Reports - CAI User Documentation Sitesharepoint.gocai.com/Content/Financial Reporting Explanations.pdf · November 2013 Financial Report Explanations Page 1 of 37 CAI