ENTRY NO. A–11, ADJUST INCOME FOR CASH SHORTAGES - 10613

Purpose: To adjust income accounts for cash shortages outstanding as of June 30. This entry is semi-reversed as of July 1.

For all cash shortages, agencies/departments must adjust the revenue account and establish a temporary reserve item as of June 30. Agencies/Departments will make appropriate adjustments to the remittance of June receipts to the State Treasury. The adjustment is for the amounts remitted previously which remain outstanding as cash shortages in agency/department accounts as of June 30.

References: SAM Sections 8070, 8072, and 8210

Record Adjustment to Revenue Accounts for Cash Shortages Outstanding as of June 30.

Note:

1. Cash shortages on revenue items collected for other funds or appropriations where the items were not identified as being earned as of the preceding June 30. Credit Prior-Year Revenue Adjustments in semi-reversal if the cashier's shortages relate to revenue identifiable on collection to the fiscal year in which it was earned.
2. Cash shortages on unearned revenue. Credit Revenue or Due to Other Funds on Appropriations in semi-reversal.
3. Cash shortages on unearned reimbursements. Credit Reimbursements in semi-reversal for amount applicable to current year appropriation.
4. Cash shortages on deferred reimbursement items that are still credited to uncleared collections pending their being ordered into the treasury.
5. Cash shortages on revenue items not identified as being earned as of the preceding June 30. Credit Prior Year Revenue Adjustments in semi-reversal if the cashier’s shortages related to revenue identifiable on collection to the fiscal year in which it was earned. Account No.4xxxxxx (Legacy Account No. 8000), General Revenue will be debited for all cash shortages that cannot clearly be attributed to abatement, reimbursement, or other identifiable revenue items.
6. Cash shortages on current-year reimbursement items that have already been credited to reimbursements. Credit Prior-Year Appropriation Adjustments in semi-reversal for amount applicable to appropriations no longer available for encumbrance.
7. Cash shortages on abatements to current-year expenditure items. Credit Prior-Year Appropriation Adjustments in semi-reversal for amount applicable to appropriations no longer available for encumbrance.
8. Cash shortages applicable to revenue (except appropriation reimbursements) which was identified as being earned as of the preceding June 30.
9. Cash shortages on abatements and reimbursements of prior fiscal year appropriations. Credit Prior-Year Revenue Adjustments in semi-reversal for amount related to appropriation that reverted as of the June 30 date that Entry No. A–11 was made.
10. Total amount of cash shortages outstanding as of June 30. (Balance of Account No. 1200200, Account Receivable-Cash Shortages (Legacy Account No. 1316).)