March 31 Accruals

Guidelines from MASBO Finance Committee

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Revenue Accounts

1. Provincial Government Grants - NO adjustments required for bi-monthly payments from Schools Finance Branch.  Accrue monies receivable if material for Vocational Equipment and Environmental Assistance Program grants.
   
   
2. Special Levy - Accrue 1/2 of spring portion of Division's Special Requirement.
   
   
3. Transfer Fees - Recognize 7/10 of the annual transfer fee income to March 31st. Remainder should be set up as Deferred Revenue.
   
   
4. Residual Fee Income - Recognize 7/10 of the years expected fee income if not billed as at March 31st.  Any monies received for the period April to June should be deferred revenue.
   
   
5. Non-Resident Fees (VISA, Foreign Students, etc.) - Recognize 7/10 of the year's expected fee income. Difference should be set up as an Account Receivable or Deferred Revenue.
   
   
6. Payroll Tax Revenue (General Support Grant) - Recognize appropriate amount to March 31st.
   
   
7. Interest and Other Revenues (Secondments, Misc. Billings) - If material, accrue these revenues to March 31st.

Expense Accounts

1. Teacher's Salaries - Ensure that 7/10's of the annual forecasted Teacher salaries are reported as an expense as at March 31st.  Set up appropriate Account Payable.
   
   
2. Other Salaries - Accrue where necessary all other salary costs to March 31st including shared service (i.e. March earnings not paid until April).
   
   
3. Employee Benefits - Accrue appropriate amount of employer benefit costs for ALL salaries.
   
   
4. Payroll Tax - Accrue this expense to match the salary accrual.
   
   
5. Worker's Compensation - Accrue appropriate amount to March 31st.
   
   
6. Vacation Payable - Set up appropriate balance as at March 31st. If balance at year-end hasn't increased materially over the past few years, take 9/12 of the Y/E balance and set up at March 31st.
   
   
7. Insurance - Show 9/12 of annual cost of HED/MAST plan with difference set up as a prepaid expense.  Adjust other insurance accounts for vehicles, etc. as appropriate as an Account Payable or prepaid.
   
   
8. MAST Fees - Report 9/12 of annual fees as at March 31st. Remainder to be Prepaid Expense.
   
   
9. Trade Payables for All Schools/Departments including Utilities - If payables are normally paid 30 days after month-end, accrue April's payments as a March account payable.  Keeping the Accounts Payable file open in April until nearly all March invoices are paid would also be acceptable.
   
   
10. Property Taxes/Local Improvements - Accrue 1/4 of 2006's estimated property tax bill to March 31st.
    
    
11. Loan Interest Expense/Legal/Annual Audit Fees, etc. - Accrue expenses to March 31st set up as an A/P.