IMPORTANT NOTICE
New Information Regarding the
Grant/Entitlement Revenues Closing Package
Based on recent discussions with
the staff of the Governmental Accounting Standards Board, the Comptroller
General’s Office has determined that all
Federal grants include the reimbursement eligibility requirement unless the
grant has an indefinite time period during which the funds may be spent. That is, for purposes of the
Grant/Entitlement Revenues Closing Package, all Federal grants are considered reimbursement basis grants. Expenditures, therefore, must be incurred
prior to recognizing revenue or reporting a grant receivable. This is contrary to the grant example
provided in the April 30/May 2 agency training sessions and contrary to the
memorandum issued April 26 on the subject of “Policy Statement—Accounting for
Grants.” (The training session example did not include the
reimbursement eligibility requirement.) Please disregard the training session grant
example. A new example that
encompasses the new information has been included in the Grant/Entitlement
Revenues Closing Package instructions. The
revised Grant/Entitlement Revenues Closing Package instructions supersede the
April 26 policy memorandum.
Additionally, during the April
30/May 2 training sessions, it was also announced that the Grants Analysis
Worksheet would no longer be required.
Because all Federal grants are considered reimbursement basis grants for
closing package purposes, the Grants
Analysis Worksheet is still required.
Due to the changes required by GASB Statement 33 and the
confusion related to the classification of Federal grants (all reimbursement
basis), it is extremely important that you read the Grant/Entitlement Revenues
Closing Package instructions in their entirety to ensure that you properly
complete the closing package.
****The
new grant revenue object codes are unaffected by these closing package changes.****