CRWRC field financial accounting requires the use of
1. A cash basis accounting system (revenues are reported when cash is received, expenses are reported when cash is paid).
2. Summarized monthly reports for the field
3. Monthly reports submitted from the field to the Home Office that summarizes income and expenses and clearly identifies the Home Office account number related to the income or expense.
4. Monthly reports are due the 15th day after the end of the previous month.
a. January reports due February 15
b. February reports due March 15
c. Etc.
5. A twelve-month fiscal year ending June 30.
CRWRC uses an almost pure form of cash basis accounting on its field. Under the cash basis system, revenues are recorded as such when cash is received, and expenses are recorded when cash is disbursed. There is no attempt to allocate transaction recognition to periods other than when cash "changes hands." As such, the field should not generally record any prepaid assets, payables or receivables.
In addition, long-lived assets, like vehicles and computer equipment, are not shown as assets (i.e. capitalized) but as expenses in the period in which cash is disbursed for them. Funds are defined as cash, and the term "fund balance" is simply a reference to the total balance of all the field’s cash holdings.
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For Your Consideration
- Are receivables, prepaid assets, or payables currently maintained on your field records? (See glossary for definition of these key terms).
- If yes, what can be done to eliminate receivables, prepaid assets, and payables in order to comply with CRWRC field reporting requirements? (Please contact the Home Office Accountant if you need help in this area)
The need for timely information requires that each field summarize financial activity monthly for field use. Monthly reports are useful as a means to control resources and as an aid in evaluating programs.
The field may modify the chart of accounts and monthly field reports to accommodate greater financial detail; however, the chart of accounts and monthly field reports must have the capacity to summarize into the standard chart of accounts established by the Home Office.
