Page 7 - Fiscal Year End 2020 Procedures and Cutoff Dates for Client Agencies FINAL

U.S. Department of Agriculture

C. Accrual

The recording of a known expense for a current accounting period in which the cash outlay will
happen in a future accounting period is known as an accrual. The accrual can be for an
estimated amount. The accrual will be reversed in a subsequent period when the cash outlay
will occur. The concept of an accrual can also apply to revenue recognition. Accrual
Accounting is imperative to accurately reflect expenses and revenues on the Financial
Statements. Please be sure to review the Open Obligation Status (Aging Report) Report and
request accruals as needed by September 14 to be included in FY 2020 activity.

D. Document Reorganization/Cost Transfers

A Document Reorganization in Pegasys will allow users to change document level accounting
information throughout an entire spending chain. Document Reorganizations are typically
used when corrections are needed to change accounting dimensions such as an Organization
Code or Sub Object Class (SOC) code across an entire chain of an obligation. A cost transfer
will move the expense from the incorrect accounting dimension to the correct one. Because
the Cost Transfer (ET) only references the Payment Authorization, this adjusting entry must be
completed after disbursement has occurred. These changes in accounting dimensions should
be submitted to ESB by September 14 to be included in FY 2020 activity.

E. Check Deposits

All revenue or expense refund checks to be deposited into your account or returned to
Treasury should be sent to ESB by September 21 to be included in FY 2020 activity.

F. Billings

All billing related items for Accounts Receivable or Interagency/Reimbursable agreement
billings should be sent to ESB by September 14 to be included in FY 2020 activity. Any billing
received after the September 14 due date will be accrued in FY 2020.

G. Signature of Authority Letters

The signature of authority identifies certain individuals that have the authorization to sign
specific documents on behalf of the agency. This signature of authority letter gives the
signature authority of approving Obligations, Receiving Reports, Payment Document,
Transmittals, Personnel transactions, Cost Transfers, Travel Vouchers, etc.

Office of the Chief Financial Officer | FMLOB Provider | Pegasys Financial Services

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