YEAR-END REPORTING - 17130

Agencies/Departments maintain their Federal Trust Fund accounts on a modified accrual basis throughout the year. Under the modified accrual basis of accounting, expenditures are accounted for in the period in which goods and services are received and the liability is incurred. For information on the basis of accounting, see SAM Section 7440.

Agencies/Departments shall record the following as of June 30:

• Accrue expenditures for all valid obligations incurred as of June 30 but not yet paid. Liabilities may be incurred at any time throughout the year; however, accruals are posted only at year-end.
• Accrue accounts receivable if they have been earned and are expected to be collected within one year after the end of the current fiscal year.

The accrual process aligns the cash basis accounts of the State Controller’s Office with an agency/department's accounts.

General instructions in SAM covering the state's fiscal procedures are applicable to the Federal Trust Fund.