GAAP Forms - OSF Form Z-1 Instructions

Z. SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS CONVERSION PACKAGE

• OSF Form Z-1: Schedule of Expenditure of Federal Awards (.xls, 124.5 KB)

I. PURPOSE AND OBJECTIVES

The Single Audit Act of 1984, Public Law 98-502, the Single Audit Act Amendments of 1996, Public Law 104-156 and OMB Circular A-133 (as amended) require state and local governmental units to prepare the Schedule of Expenditures of Federal Awards (SEFA) showing the total expenditures for each federal assistance program and other cost reimbursement contracts.  Special stimulus funds received and disbursed under the American Reinvestment and Recovery Act (ARRA) of 2009 must also show total expenditures related to each unique ARRA program.       

OSF and the SA&I have developed procedures for agencies that satisfy the requirements set forth in OMB Circular A-133.  Conversion Package Z was designed for agencies to provide federal information by CFDA code and ARRA CFDA code (1) to OSF for the compilation of the SEFA and (2) to SA&I for the Single Audit compliance.  OSF Package Z requires that agencies:
 

• provide cash totals of the federal receipts and disbursements as well as program income and matching contributions.
• adjust cash totals to modified accrual amounts.

PRIMARY RECIPIENTS, SUBRECIPIENTS of grant/entitlement funds as well as agencies who receive funds under COST REIMBURSEMENT CONTRACTS or ARRA (see key terms in Part III) within state government will report amounts in this conversion package.      

The State receives federal funding for state agency programs in different ways:

• Some grants provide funds on a cost-reimbursement basis; agencies incur costs and then bill the grantor for reimbursement.
• Some programs provide for advance payments or permit agencies to draw against letters of credit as they incur eligible expenditures.
• Some programs provide noncash benefits such as food stamps, commodities and surplus property.
• Entitlement programs award specific amounts for particular accounting periods.
• The State may have entered into Cost Reimbursement Contracts to provide work to the federal government as subcontractors.
• Special stimulus funds provided through the ARRA for various programs

Individual state agencies may:

• Distribute funds to other state agencies.
• Distribute funds to non-state organizations such as municipalities, counties, nonprofit organizations.
• Expend grant/entitlement program funds directly for benefits to individuals or supplies, etc. or pay indirect costs.  

OMB Circular A-133 requires the state to report:

• Federal programs by Federal agency.
• For Federal awards received as a subrecipient, the name of the pass-through entity.
• Total Federal awards expended for each Federal Program and the CFDA number or other identifying number when the CFDA information is not available.
• The CFDA number and “ARRA-“prefix for expenditures of ARRA funds

II. AGENCY ACTION REQUIRED

A. Complete the Accounts Payable and Encumbrance Conversion Package (Package I) and the Federal Grant/Entitlement Receivables and Deferred Revenue Summary Conversion Package (Package D) before you work on the Schedule of Expenditures of Federal Awards Conversion Package.  Some of the information classified as accounts payable and federal receivables will affect the amounts included in this conversion package.

B. Carefully read the key terms in Part III.

C. The Schedule of Expenditures of Federal Awards Worksheet form (worksheet) should reflect amounts for the year ended June 30.

D. Round all dollar amounts to the nearest whole dollar.

E. 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 forms and all associated working papers for three years after the completion of the SA&I audit.

F. 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.

G. If needed, call your agency’s financial reporting analyst for guidance.

H. 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.

I. 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.

III. KEY TERMS

A. Basis of Accounting for the Schedule of Expenditures of Federal Awards  The modified accrual basis of accounting determines when to recognize revenue and expenditures in the financial statements.  The modified accrual basis of accounting recognizes revenue when it is both measurable and available and recognizes expenditures when transactions are expected to be paid with current spendable resources.

B. DUNS Number  is a unique 9-digit identification number provided by the commercial company Dun & Bradstreet.  DUNS is an acronym for Data Universal Numbering System.  For all fiscal periods that ended in 2005, the Federal Office of Management and Budget (OMB) required the reporting of DUNS numbers on all SF-SAC submissions reporting expenditures of direct Federal Awards.  It is possible to have more than one DUNS number for your agency.  Additional information on DUNS numbers can be found over the Internet at http://www.grants.gov/RequestaDUNS.

C. 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.

D. 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.

E. Cost Reimbursement Contract  Contracts with the federal government on which the basis for payment is reimbursement of cost rather than a set fee.  This would not include a payment for goods or services received in a vendor relationship.

F. 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.

G. OSF Tracking Number   The number assigned by the Office of State Finance to federal programs for which a CFDA number could not be determined.

H. Primary Recipient  The agency that initially receives funds from the Federal Government and who is accountable to the Federal Government for the funds.

I. Program Income  Program income is revenue earned on federal funds.  Interest income, rebates and cash received for federal property are examples of program income.

J. Subrecipient  An agency that receives funds from a primary recipient (state or non-state) rather than directly from the federal government.

K. "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).

L. Federal Receipts  Funds received from federal sources as described in Part I.

M. Federal Disbursements  Payments of federal funds made to vendors, subrecipients, contractors, employees etc. for allowable costs related to the program or contract.

N. Matching Contributions  Federal programs often have matching requirements for the State to “match” the federal funds received with state funds.  Payments of state funds made to vendors, contractors, employees etc. for the State’s share of approved programs are considered matching contributions.

O. ARRA In fiscal 2009 congress passed the American Reinvestment and Recovery Act of 2009.  This act was designed to provide governments with immediate funds targeted to specific programs in an effort to mitigate sudden and severe economic challenges.
 

IV. SPECIFIC INSTRUCTIONS

A. Preparation of the Data  Prior to completing the Schedule of Expenditures of Federal Awards Form:

1. Complete the Accounts Payable and Encumbrance Conversion Package and the Grant/Entitlement Receivables and Deferred Revenue Summary.  Determine the payables, receivables and deferred revenue related to each grant.  If ARRA funds were received or disbursed, they should be reported separately, even if they have the same CFDA # as another program.  Some payables represent expenditures that will be paid or reimbursed with federal grant funds.  These payables could also be recorded as grant/entitlement receivable.

2. Determine all grants, entitlements and contracts open during the fiscal year.  Determine if ARRA funds were received or disbursed.

3. Review the key terms section of this conversion package carefully before you attempt to complete the forms.

B. Completing the Schedule of Expenditure of Federal Awards Conversion Package   (make additional copies of Package Z, pages Z.2, Z.3 and Z.4 as needed)

Please note that the Accounts Payable and Encumbrance Conversion Package (Package I) and the Grant/Entitlement Receivable and Deferred Revenue Summary Conversion Package (Package D) should be completed before the Schedule of Expenditure of Federal Awards Conversion Package.  (See II.A.)

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.  Before signing, circle –yes- or –no- to the question regarding ARRA funds.  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 for validity, accuracy and completeness.

2.1 List all of the 9-digit DUNS numbers that are associated with the Primary Recipient Grants received by your agency.  Every agency that receives direct federal awards should have at least one DUNS number.  DUNS numbers are required when applying to the Federal Government for federal grant awards.  

Complete lines 3 through 10 for each federal program that your agency participates in as a primary recipient.  (Make additional copies of page Z.2 as needed.)

3. Enter the CFDA number or OSF tracking number and the official program title for each federal program or contract open during the year.

4. Enter the name of the federal grantor agency of the federal program and indicate status: N - New, C - Continuing or T - Terminated.

4.1 Place a check mark in this box if the CFDA number being reported was received as part of the ARRA stimulus package.  Only include spending from ARRA funds under this CFDA number.  Complete a separate grant line for all other non-ARRA activity for the same CFDA number.  Agencies that received regular grant funds and ARRA funds for the same CFDA # should report 2 lines for each CFDA #.

5. Summarized data should be presented on this line.  The summarized data should be compiled by CFDA number and reported to OSF in summary form.  Detailed data should be maintained for both receipts and disbursements to support amounts submitted.  Detail of federal revenues should include amounts received from the federal government in treasury funds, agency special accounts, noncash receipts and program income.  Detail of federal expenditures should include direct expenditures from treasury funds, agency special accounts, payroll, allocated costs, indirect costs, noncash distributions and expenditures of program income.  Enter cash basis numbers as follows:

a)  Enter the beginning federal cash balance in the beginning of the year column.

b)  Enter the total cash basis revenue for the program.  Direct federal cash receipts as reported in the OSF monthly SEFA Revenue Report should be adjusted for corrections, agency special ac-count receipts, noncash receipts or other adjustments.  This amount should not include matching funds.

c)  Enter the total cash basis expenditures for the program.  The expenditures reported on the OSF monthly SEFA Expenditure Report should be adjusted for corrections, payroll, allocated costs, in-direct costs, agency special account expenditures, program income expended and other adjustments.  These expenditures should not include amounts paid from matching funds.

d)  Enter in the end of year column, the federal cash balance as of June 30.  This balance should be the beginning of year balance plus federal revenue less federal expenditures.

e)  Enter in the matching contributions column the total expenditures from matching funds.

Enter accrual adjustments from Conversion Packages D and I on lines 6 through 9.  Please note that these receivables and payables should agree with amounts reported on Conversion Packages D and I.  If these amounts differ, please provide information about the differences.  Amounts could be different because of payables or receivables from other state agencies charged to federal programs.  These payables/receivables would be shown on Package Z as a current account payable/receivable, however, payables/receivables to/from other state agencies are not included on Package D or I.

6. Enter the federal receivable (line 4) from the prior year Conversion Package D.  If adjustments are made, provide an explanation.

7. Enter the federal payable (line 11) from the prior year Conversion Package I.  If adjustments are made, provide an explanation.

8. Enter the federal receivable (line 4) from the current year Conversion Package D.  If adjustments are made, provide an explanation.

9. Enter the federal payable (line 11) from the current year Conversion Package I.  If adjustments are made, provide an explanation.

10. Total lines 5 through 9.

Complete lines 11 through 18 for each federal program that your agency participates in as a subrecipient.  (Make additional copies of page Z.3 as needed.)

11. Enter the CFDA number or OSF tracking number and the official program title for each federal program or contract open during the year.

12. Enter the name of the nonfederal source that provides the federal funds.   Respond yes if you receive the funds on a reimbursement basis 100% of the time, if not answer no.

12.1 Place a check mark in this box if the CFDA number being reported was received as part of the ARRA stimulus package.  Only include spending from ARRA funds under this CFDA number.  Complete a separate grant line for all other non-ARRA activity for the same CFDA number.  Agencies that received regular grant funds and ARRA funds for the same CFDA # should report 2 lines for each CFDA #.

13. Summarized data should be presented on this line.  The summarized data should be compiled by CFDA number and reported to OSF in summary form.  Detailed data should be maintained for both receipts and disbursements to support amounts submitted.  Detail of federal revenues should include amounts received from the federal government in treasury funds, agency special accounts, noncash receipts and program income.  Detail of federal expenditures should include direct expenditures from treasury funds, agency special accounts, payroll, allocated costs, indirect costs, noncash distributions and expenditures of program income.  Enter cash basis numbers as follows:

a)  Enter the beginning federal cash balance in the beginning of the year column.

b)  Enter the total cash basis revenue for the program.  Cash received from grantor as reported in the OSF monthly SEFA Revenue Report should be adjusted for corrections, agency special account receipts, noncash receipts or other adjustments.  This amount should not include matching funds.

c)  Enter the total cash basis expenditures for the program.  The expenditures reported on the OSF monthly SEFA Expenditure Report should be adjusted for corrections, payroll, allocated costs, in-direct costs, agency special account expenditures, program income expended and other adjustments.  These expenditures should not include amounts paid from matching funds.

d)  Enter in the end of year column, the federal cash balance as of June 30.  This balance should be the beginning of year balance plus federal revenue less federal expenditures.

e)  Enter in the matching contributions column the total expenditures from matching funds.

Enter accrual adjustments from Conversion Packages D and I on lines 14 through 17.  Please note that these receivables and payables should agree with amounts reported on Conversion Packages D and I.  If these amounts differ, please provide information about the differences.  Amount could be different because of payables or receivables from other state agencies charged to federal programs.  These payables/receivables would be shown on Package Z as a current account payable/receivable, however, payables/receivables to/from other state agencies are not included on Package D or I.

14. Enter the federal receivable (line 4) from the prior year Conversion Package D.  If adjustments are made, provide an explanation.

15. Enter the federal payable (line 11) from the prior year Conversion Package I.  If adjustments are made, provide an explanation.

16. Enter the federal receivable (line 4) from the current year Conversion Package D.  If adjustments are made, provide an explanation.

17. Enter the federal payable (line 11) from the current year Conversion Package I.  If adjustments are made, provide an explanation.

18. Total lines 13 through 17.

Complete lines 19 through 26 for each cost reimbursement contract (see key terms) your agency participates in.  (Make additional copies of page Z.4 as needed.)

19. Enter the CFDA number or OSF tracking number and the official program title for each federal program or contract open during the year.

20. Enter the name of the federal grantor agency of the federal program and indicate status: N - New, C - Continuing or T - Terminated.

20.1 Place a check mark in this box if the CFDA number being reported was received as part of the ARRA stimulus package.  Only include spending from ARRA funds under this CFDA number.  Complete a separate grant line for all other non-ARRA activity for the same CFDA number.  Agencies that received regular grant funds and ARRA funds for the same CFDA # should report 2 lines for each CFDA #.

21. Summarized data should be presented on this form.  The summarized data should be compiled by CFDA number and reported to OSF in summary form.  Detail data should be maintained for both receipts and disbursements to support amounts submitted.  Detail of federal revenues should include amounts received from the federal government in treasury funds, agency special accounts, noncash receipts and program income.  Detail of federal expenditures should include direct expenditures from treasury funds, agency special accounts, payroll, allocated costs, indirect costs, noncash distributions and expenditures of program income.  Enter cash basis numbers as follows:

a)  Enter the beginning federal cash balance in the beginning of the year column.

b)  Enter the total cash basis revenue for the program.  Direct federal cash receipts as reported in the OSF monthly SEFA Revenue Report should be adjusted for corrections, agency special account receipts or other adjustments.  This amount should not include matching funds.

c)  Enter the total cash basis expenditures for the program.  The expenditures reported on the OSF monthly SEFA Expenditure Report should be adjusted for corrections, payroll, allocated costs, in-direct costs, agency special account expenditures, program income expended and other adjustments.  These expenditures should not include amounts paid from matching funds.

d)  Enter in the end of year column, the federal cash balance as of June 30.  This balance should be the beginning of year balance plus federal revenue less federal expenditures.

e)  Enter in the matching contributions column the total expenditures from matching funds.

Enter accrual adjustments from Conversion Packages D and I on lines 22 through 25.  Please note that these receivables and payables should agree with amounts reported on Conversion Packages D and I.  If these amounts differ, please provide information about the differences.  Amounts could be different because of payables or receivables from other state agencies charged to federal programs.  These payables/receivables would be shown on Package Z as a current account payable/receivable, however, payables/receivables to/from other state agencies are not included on Package D or I.

22. Enter the federal receivable (line 4) from the prior year Conversion Package D.  If adjustments are made, provide an explanation.

23. Enter the federal payable (line 11) from the prior year Conversion Package I.  If adjustments are made, provide an explanation.

24. Enter the federal receivable (line 4) from the current year Conversion Package D.  If adjustments are made, provide an explanation.

25. Enter the federal payable (line 11) from the current year Conversion Package I.  If adjustments are made, provide an explanation.

26. Total lines 21 through 25.

C. Working Papers

The agency should keep any documents that support data on the summary.  For example, agencies should thoroughly document:

• How you computed each amount.
• The source(s) of data for each amount.
  

In addition, you should retain:

• Copies of grant reports you file with grantors.
• Treasurer's receipts with related documentation.
• Copies of the letter and Schedule of Federal
• Financial Assistance sent to the SA&I.
• Correspondence or other documents relating to:
  • Grant/entitlement awards
  • Cash advances on grants
  • Letter of credit draws
  • Receipt of grantor reimbursement payments
  • Cost reimbursement contracts.