FIS BULLETIN Number 26

Announcements | Calendar | Status | T&T-Q&A | Training | Inside Peek | Odds & Ends

November 30, 1998

IMPORTANT ANNOUNCEMENTS

GENERAL: SCHEDULED FIS BANNER DOWNTIMES - Campus Winter Closure Schedule will be posted to fis_user e-mail list in early December.

OTHER FIS / BANNER ITEMS: None.

CALENDAR OF FIS / BANNER EVENTS

The Monthly Interface Schedule is now available on the web at: http://www.uscc.edu/finaff/fis/fisInterface.htm

FIS STATUS

FIS UPGRADE: FIS and CATS ADS staff are about ankle-deep into planning and testing for the FIS Upgrade to Banner 3.1 scheduled for late 1999. We have a functioning upgraded test database and have begun pointing and clicking our way around the new GUI (Graphical User Interface) forms. Pretty nifty stuff! Currently, we are focusing on orienting ourselves to the new client-server technology and GUI forms, analyzing and testing the completely revamped Security module, and preliminary testing on the new Fixed Asset module. We plan to host a demo of FIS 3.1 for FIS users early next year.

TIPS & TRICKS / QUESTIONS & ANSWERS

TIPS & TRICKS: None

QUESTIONS & ANSWERS: None

FIS TRAINING SCHEDULE

Please visit the FIS Training Web Page for complete info: ../fisSchedule.htm

Questions or problems regarding Banner FIS can be directed to:
Acquisitions, Accounts Payable - Karsen Jones (kjones@cats)
Ledgers, Closing, Other - Monique Leduc (mleduc@cats)
Banner Security, Approvals - Beverly Jaeger (bjaeger@cats)
FIS Training Content, Schedule - Nancy Miller (njmiller@cats)

INSIDER'S PEEK AT FIS

BANNERSLUG'S 90 SECOND ACCOUNTING LESSON

INSTALLMENT 5 (Final)

LESSON #5: A Slug can't Crawl through a Loophole.

Just when you thought all the accounting principles you just learned were cast in stone, you find out that plaster of paris was developed for a reason. Like other professions, it’s difficult to pin down the people in the Land of Accounting ("…it depends"). That being said we present to you the reason why: the last accounting principal, the Modifying Principle (or more popularly described as the Loophole Principle), and its various subprinciples.

MODIFYING PRINCIPLE ("Loophole" Principle):

a. MATERIALITY ("Big Fish in a Small Pond" SubPrinciple):
The fundamental accounting principles explained above must be followed without exception for each transaction when the amount is material in relationship to the overall financial effect. Example: The Central California Writing Project not accruing $9,000 in expenditures in a timely manner when its total expenditures exclusive of the accrual are $173,000 might result in the reader of the program’s financial statements being misled as to the true financial condition of the program, particularly if the program was budgeted to spend $173,000. On the other hand, University Extension (UNEX) not recording in a timely manner $9,000 in refunds when total revenues for professional programs are about $19 million would probably not have much impact on the reader of UNEX’s financial statement.

b. CONSERVATISM ("Ever the Pessimist" SubPrinciple):
Where one or more accounting or measurement alternatives is permissible for a transaction, the one having the least favorable immediate effect on net income or the fund balance usually should be selected. Example: The Bookstore has in its stock of inventory a line of somewhat less than popular "Slug" pens. The original cost to Bookstore a year ago was $3.50 each with a retail price of $6.99. Now, the pens are marked down to a clearance sale price of $1.99. According to the rule that inventory be valued at the lower of cost or fair market value (a rule having its roots in the conservatism subprinciple), the pens should be reflected on the campus’ financial records at $1.99 (fair market value) each, not $3.50 (cost). Accordingly, in lowering the value of the "Slug" pen inventory on the campus’ general ledger, a loss (or from the campus perspective, an additional expense) would also have to be recorded on the operating ledger (The monk says, "Remember, this is double-entry accounting").

c. INDUSTRY PECULIARITIES ("Diversity in Accounting" SubPrinciple):
The unique characteristics of an industry may require the use of special accounting approaches and measurement procedures in order to produce realistic financial reporting. Example: Since the primary objectives of not-for-profit organizations, such as colleges and universities, is to serve rather than to generate profits, accounting for not-for-profit organizations must be oriented towards accounting for resources received and used, not for the determination of net income. This kind of accounting, fund accounting, is different than accounting for profit-oriented business organizations. Even more specialized principles and procedures apply to the different types of not-for-profit organizations.

Now that you’ve completed the five-part series on Accounting Principles, you too can become an accountant. As you’ve just seen, it’s so easy, you can learn the rest of the details in your spare time. Because you’ve made it through the "introductory" five lessons, you automatically qualify for this special, limited time offer to purchase the entire "So You Want to be an Accountant" training course. Only 3,245 easy lessons on 764 cassette tapes. In no time at all, you’ll be ready to become a full-fledged citizen of the Land of Accounting. Act now!

ODDS AND ENDS

None

Contributors: Monique Leduc, Kirk Lew
Your comments and suggestions are always welcome. Please direct them to the Editors, Monique Leduc (mleduc@cats) or Kirk Lew (kllew@cats).

Financial Affairs | Accounting Offices | Campus Controller | FIS

Comments to: controller@ucsc.edu - Maintained by FIS, Updated