ACCRUAL DEFINITIONS

ITEM

NO. DESCRIPTION

1. Accounts Receivable. Amounts due from private persons or organizations for goods and services furnished by the State by June 30, with collection to be realized after June 30. If collection is not expected during the next fiscal year, contact State Accounting for further instructions.

2. Interagency Accounts Receivable. Do not report this year. State Accounting

will get directly from the P9 transactions in NIS.

3. Loans Receivable. Amounts loaned to individuals or organizations. Please indicate the amount due within the next year and the amount due past the next year. If collection of any loans is questionable, contact State Accounting for further instructions.

4. Inventories. An asset account reflecting the cost of goods held for resale or for use in operations, but not including office supplies or equipment.

5. Prepaid Items. Payment for regularly recurring cost of operations in advance of the receipt of goods or services. Examples of prepaid items include prepayments for insurance, rent, postage, etc.

6. Long-Term and Other Payables. An obligation for goods or services received prior to June 30 which will have a balance remaining to be paid after June 30. Examples include long-term construction and retainage payables and all accounts payable which will not be captured within NIS by using a P9 transaction. Generally these payables would be to outside vendors. IBT payables are generated through Item No. 2, so they do not need to be listed on these forms.

7. Contingent Liabilities. According to GASB Statement 10, a reportable liability has been incurred if 1) it is probable that an asset has been impaired or a liability has been incurred at the date of the financial statements and 2) the amount of the loss can be reasonably estimated. If both of these conditions are met, the liability should be reported under item 6.

If an event has occurred which may result in a claim against the State and it does not meet both of these conditions, it is a contingent liability and should be reported here as it may require footnote disclosure.

Grants and Entitlements.

8. Intergovernmental Payable. Amount of unexpended federal cash on hand which was received either directly or indirectly (pass through from other State agencies) which would be due back to the Federal Government if the grant were to cease at June 30. Do not include activity in the Federal Letter of Credit Fund (NIS Fund 40000).

9. Intergovernmental Receivable. Amount of federal reimbursements due for cash disbursed on federal programs and federal entitlements due.