MEMORANDUM NO. SAD 04-23
 

TO:	Business Managers
FROM:	John Barfield Assistant State Controller
SUBJECT:	Year End Close Package for June 30, 2004

The year end close package for June 30, 2004 is on the Office of the State Controller’s website at the following address: http://www.osc.state.nc.us/sigdocs/sig_docs/sigDocumentation.html#Year-End_Close_Package. The files are available for downloading as indicated in the instructions on our web page. There are several changes to the year end requirements for the Comprehensive Annual Financial Report (CAFR) for this year, so please read and follow the memo and instructions carefully.

The year end close package consists of the following:

Attachment 1  Community College Instructions and Review Checklist

Attachment 2  Letter of Representation (several changes for 2004)

Attachment 3  College Proforma Statements and CAFR Year End Worksheets

Attachment 4  Single Audit Reporting Package

Attachment 5  Foundation Conversion Template  (New; separate due date of Sept. 15, 2004)    

One complete copy of the required year end CAFR package is due to the OSC by August 31, 2004 in accordance with G.S. 143-20.1. Colleges must prepare their financial statement Exhibits A and B using the proforma financial statements referenced in Attachment 3 above. These proforma statements as well as all the required CAFR worksheets are included in the same Excel workbook file. The OSC is requesting that the community colleges e-mail by August 31, 2004 the Excel workbook file containing their financial statements and CAFR worksheets to the OSC. This file should be e-mailed to both Michelle Lassiter and Helen Vozzo at these addresses: mlassite@mail.osc.state.nc.us and hvozzo@mail.osc.state.nc.us. The colleges are not required to submit this information in hard copy form. Only the letter of representation is still required to be mailed to the OSC by August 31, 2004.

New for year end 2004, the Foundation Conversion Template (Attachment 5) is required only for colleges that have foundations and similarly affiliated organizations that will be reported for the first time this year end as discretely presented component units of the college. The due date for submission of the completed Foundation Conversion Template (a separate Excel file)  is September 15, 2004.  The OSC requires that the colleges e-mail by September 15, 2004 the Foundation Conversion Template separately from the CAFR package file to both Michelle Lassiter and Helen Vozzo at the e-mail addresses provided above. The Foundation Conversion Template is required in electronic form only and colleges should not submit any foundation information in hard copy form. 

Please take note of the following important changes to the letter of representation.  In place of the disclosure about the statement of cash flows being publicly available by September 15, all colleges must include the following disclosure:

“Using the prescribed proforma documents, the formal financial statements, the formal notes to the financial statements, the management’s discussion and analysis, and required supplementary information prepared in accordance with GAAP will be made available to the State Auditor by September 30, 2004.”

(Note: colleges are not required to submit a copy of their formal financial statements, formal notes to the financial statements, or formal management’s discussion and analysis to the OSC, but they are required to have this information complete and made available to the State Auditor by September 30, 2004 and to disclose this in their letter of representation submitted to the OSC.)

As in the past, colleges are required to prepare the statement of cash flows using the direct method, but are not required to submit the statement of cash flows as part of the year end CAFR package. There is a direct method cash flow template available on  the OSC website at this address http://www.osc.state.nc.us/financial/34gasb/34gasb.html.
Any modifications to the cash flow template that a college may need are the responsibility of the college.

For colleges that have foundations and similarly affiliated organizations that will be reported as discretely presented component units of the college, the following new disclosure must be included in the letter of representation:

“As required, a completed foundation conversion template that converts private foundations from the FASB format to the State CAFR format will be submitted to the Office of the State Controller by September 15, 2004.”

Colleges must use the new format in the letter of representation for year end 2004; submitting the letter of representation in the old format will cause a delay in processing the year end package and could result in the package being late.

Attachment 4 of the year end close package is the Single Audit Reporting Package.  The Single Audit Reporting Package should be submitted separately to the Office of the State Controller per the instructions by August 31, 2004.  Do not include this package with your year end CAFR package.

The community colleges’ timely completion of the accrual process, financial statements, CAFR worksheets  and, if applicable the Foundation Conversion Template, will significantly improve the Office of the State Controller’s ability to prepare the 2004 CAFR for the State of North Carolina.

If you have any questions or concerns regarding these year end procedures, please contact Helen Vozzo at (919) 981-5483 or e-mail hvozzo@mail.osc.state.nc.us. Your cooperation and timeliness are greatly appreciated.  Thank you.

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