GAAP Forms - OSF Form D-1 Instructions
Some state agencies receive assistance from the Federal Government in grants and entitlements to support specific programs. Federal funds may be used for:
Amounts that your agency receives from the Federal Government are grant and/or entitlement revenues. Amounts that your agency distributes to other state agencies or non-state parties, are grant and/or entitlement expenditures. Special stimulus funds may also be received and expended through the American Recovery and Reinvestment Act (ARRA) of 2009.
Only PRIMARY recipients (see key terms in Part III) of grant/entitlement funds within state government will report amounts in this conversion package. If your agency receives federal grant funds from another state agency or a non-state agency, you are a subrecipient. If you are a subrecipient receiving federal grant funds from another state agency, you should not report the receipt of the federal funds in this conversion package. Doing so would result in the revenue being reported twice. If you are a subrecipient receiving federal grant funds from a non-state agency (i.e., the primary recipient is not within state government), you should report the receipt of the federal funds in this conversion package.
The Federal Government funds state agency programs in different ways:
Individual state agencies may:
GAAP requires the state's financial statements to report:
A. Complete the Accounts Payable and Encumbrance Conversion Package before you work on the Federal Grant/Entitlement Receivables and Deferred Revenue Conversion Package. Some of the information classified as accounts payable will affect the amounts included in this conversion package
B. Carefully read the key terms in Part III.
C. Do not report any Medicaid, Title XIX amounts in this conversion package.
D. The Grant/Entitlement Receivables and Deferred Revenue Summary form (summary) should reflect amounts as of close of business on June 30.
E. Round all dollar amounts to the nearest whole dollar.
F. All working papers are subject to audit by the State Auditor & Inspector (SA&I). The agency is required to keep a copy of the completed summary form and all associated working papers for three years after the completion of the SA&I audit.
G. The person who completes and signs the summary form should keep a copy. A financial reporting analyst will contact this person if there are any questions.
H. If needed, call your agency’s financial reporting analyst for guidance.
I. Return the completed summary form to OSF no later than the due date shown on the form. If you can return it earlier, please do so. Mail should be sent to the Office of State Finance, 3812 N. Santa Fe Ave., Suite 290, Oklahoma City, OK 73118. Completed summaries may also be emailed to your financial reporting analyst.
J. If the summary form does not apply to your agency, check the box in the upper left portion of the summary, complete item (2) and return it to OSF.
A. Basis of Accounting for Grant/Entitlement Revenue The modified accrual basis of accounting deter-mines when to recognize revenue, receivables, and deferred revenue in the financial statements. The modified accrual basis of accounting recognizes revenue when it is both measurable and available.
B. Grant A contribution or gift of cash or other assets from the Federal Government to be used or expended for a specified purpose, activity, or facility.
Capital Grant Grant restricted by the Federal Government for the purchase and/or construction of fixed assets.
Operating Grant Grant restricted to operating purposes or that may be used for either capital or operating purposes at the discretion of the grantee.
C. Entitlement An entitlement consists of cash or other assets that the Federal Government contributes to the state. Entitlement programs base awards on allocation formulas contained in applicable laws. Entitlement programs award specific amounts for particular accounting periods and impose few real restrictions. Once the state receives an entitlement award, only the state's failure to follow prescribed regulations will cause loss of the funds.
D. CFDA Number The Catalog of Federal Domestic Assistance (CFDA) includes a specific reference number for most federal programs. Each program included in the catalog is assigned a five-digit pro-gram identification number: the first two digits identify the federal department or agency that administers the program, and the last three numbers are assigned in numerical sequence. Funds received under the American Reinvestment and Recovery Act (ARRA) of 2009 should have the prefix “ARRA-“ placed in front of each related CFDA # when reporting. ARRA funds should be reported separately from other grants even if they repeat a CFDA number.
E. Primary Recipient The agency that initially receives funds from the Federal Government and who is accountable to the Federal Government for the funds.
F. "Passed-Through" Funds "Passed-through" funds are distributed from the primary recipient to other state or non-state organizations (end recipients) in the form of a grant/entitlement (not a payment for goods or services).
G. Grant/Entitlement Revenue Grant/Entitlement Revenues are amounts that the state receives from the Federal Government. Depending on the type of grant, revenue may have accrued for which the agency has not yet received the cash. Amounts that your agency receives from other state funds or agencies are NOT considered grant/entitlement revenues for the purposes of this package. However, amounts that your agency receives from a non-state entity would be considered grant/entitlement revenues.
H. Grant/Entitlement Receivables Grant/Entitlement Receivables can be defined as revenue that is measurable and available, but the actual cash payment has not been received at June 30. A grant/entitlement receivable is often accrued when an allowable grant/entitlement expenditure is incurred.
I. Deferred Revenue Deferred Revenue is recorded for grant funds on hand that have not been earned because grant requirements have not been satisfied. This would apply to certain cash advance and letter-of-credit grants at June 30.
A. Preparation of the Data Prior to completing the Grant/Entitlement Receivables and Deferred Revenue Summary Form, list by CFDA number the federal grant/entitlement revenue your agency receives (remembering to list each CFDA received under the ARRA separately). Do not include any Medicaid, Title XIX funds, or grants received from another state agency. Do not include amounts related to unperformed contracts for goods or services. Only report grant and entitlement receivables where contract eligibility requirements (incurrence of allowable costs) have been met.
Form D-2 is included in this package to assist you in computing your agency's grant receivables and deferred revenue. It is optional and need not be returned to OSF. If you choose to use the form, please retain it with your records and any other documents that support your calculations.
1. Complete the Accounts Payable and Encumbrance Conversion Package, and determine the payables related to each grant. Some payables represent expenditures that will be paid or reimbursed with federal grant funds. These payables would also be recorded as grant/entitlement receivable if:
2. Determine the grants and entitlements by CFDA number that are classified as reimbursement-type grants, grants using cash advances and letters of credit, or entitlements.
3. Determine specific grant requirements that must be satisfied before revenue may be recognized.
4. Review the key terms section of this conversion package carefully before you attempt to complete the forms.
5. The following information will help you determine the amounts of grant/entitlement receivables and deferred revenue to report in this conversion package:
a. GRANT/ENTITLEMENT RECEIVABLES
Reimbursement-Type Grants Report grant receivables at June 30 if your agency:
i. Incurred direct/indirect grant costs during the fiscal year. That is, your agency either
ii. Met all related grant requirements (such as matching requirements), and
iii. Will receive the related reimbursement from the Federal Government after June 30.
Grants Using Cash Advances and Letters of Credit Report grant receivables at June 30 if your agency:
i. Incurred direct/indirect grant costs during the fiscal year. That is, your agency either:
ii. Met all related grant requirements (such as matching requirements), and
iii. Will receive the related cash or reimbursement from the Federal Government after June 30.
Entitlements Report entitlement receivables at June 30 if:
i. The entitlement is for a period that began during the fiscal year ended June 30, such as the federal fiscal year, and
ii. You will receive the related cash after June 30.
b. DEFERRED REVENUE
Report deferred revenue if you have drawn down or received grant cash at June 30 that represents neither cash expenditures nor accounts payable. Do not record deferred revenue for entitlement or reimbursement grants.
B. Completing the Grant/Entitlement Receivables and Deferred Revenue Summary Form
Please note that the Accounts Payable and Encumbrance Conversion Package should be completed before the Federal Grant/Entitlement Receivables and Deferred Revenue Conversion Package. (See A.1.)
1. Enter the agency CAFR code, name, and funds/accounts to be included on the summary.
2. Provide the name, title, phone number and date for each person who completes and approves this summary form. The finance officer or executive director should approve and sign the form before sending it to OSF. Keep a copy of the form. When submitting the form via email it should come from the address of the approving officer. This will act as an implicit electronic signature verifying the form has been reviewed and approved for validity, accuracy and completeness.
3. Enter the CFDA number of the federal program. If the ARRA was the funding source, report this amount separately from other sources with the same CFDA # using the “ARRA-“prefix. Do not include any Medicaid, Title XIX funds in this conversion package, or grants received from another state agency.
4. If this program has a receivable, enter the amount due from the federal government as of June 30. Take into consideration amounts entered on the Accounts Payable Summary Form. (See A.1.) However, do not include any amount that you have reported as an encumbrance on the Accounts Payable and Encumbrance Summary Form.
5. If this program has deferred revenue, enter the amount received from the federal government, but not spent at June 30. Again, take into consideration amounts entered on the Accounts Payable and Encumbrance Summary Form. If it has been reported as a payable, it is not deferred revenue.
6. Total the amounts entered as receivables in column (4), and put this total in blank (6).
7. Total the amounts entered as deferred revenue in column (5), and put this total in blank (7).
8. Provide comments or explanations as needed.
C. Working Papers
The agency should keep any documents that support data on the summary. For example, agencies should thoroughly document:
In addition, you should retain: