Journals Through Certification:
Project Step:
Journal #/ Type
A. Initiation of New Capital Project
B. Determine Project Details
None required.
B1
Budget Journals
B2
Manual Journals
Created By:
Purpose
Entry
School/Center
To budget and certify
the feasibility study.
Dr. 030-0300-1-000000-4821-8123-0000
25,000.00 The Feasibility Study follows the same procedures as the main certification.
Treasurer's Office
Dr. 030-0300-0-000010-CPTA-8123-0000
25,000.00
Treasurer's Office
Cr. 030-0300-0-000010-4821-8123-0000
25,000.00
FRES
Dr. 030-0300-0-000010-1917-8123-0000
24,375.00
FRES
Dr. 030-0300-0-000010-1941-8123-0000
625.00
FRES
Comptrollers Office
Amount in Example
Notes
See Section D.
Cr. 030-0300-0-000010-1990-8123-0000
To fund and record expenditure Dr. 030-0300-1-000000-4821-8123-0000
for the feasibility study.
Cr. 030-0300-0-000010-4821-8123-0000
25,000.00
25,000.00
25,000.00 Concept certifying that money is approved. Comptrollers Office will create the journal entry
upon receipt of the Funding Certification. The Treasurer's Office will issue a certification on the
funding and submit this to the Comptroller's Office.
FRES
Payables
Dr. 030-0300-0-000010-1917-8123-0000
Dr. 030-0300-0-000010-1941-8123-0000
24,375.00 Once the project commences, FRES would process the expense to appropriate object codes in
625.00 the 10 fund.
Dr. 030-0300-1-000000-4821-8123-0000
75,000.00
None required.
C. Approval of New Capital Project
D. Establishment of Project Budget
& Certification of Funding Sources
D1
D2
Budget Journal
School/Center
School/Center
g
Operating Fund as a funding
source, where a capital
funding transfer was
previously planned.
Cr. 030-0300-1-000000-4821-8999-0000
Dr. 030-0345-2-010302-4821-8123-0000
To budget the use of a General
Operating Fund as a funding
source, where there was no
previous capital commitment
in the operating budget.
Cr. 030-0345-2-010302-4300-4567-0000
Object 4821 is the Capital Funding Transfer. Typically, funds would have been identified for a
capital funding transfer as part of the School or Center's original budget for the fiscal year. If the
program value for this project was already known at that time, then no other entry may be
75,000.00 needed now. However, if the original budget used a generic Program value , like 8999 (if the
Schools didn't budget to capital program before), then this reallocation is necessary to move the
budget to the correct Program value.
200,000.00
In this example, the Capital Funding Transfer was not previously planned, and
previously unbudgeted revenue will provide resources for this project. In other
situations, previously budgeted expenditures might have been reduced.
200,000.00
Note that any appropriate organization in any appropriate school or center may agree to
fund the project. In this case, Organization 0345 is one of the school's clinical practices.
Project Step:
Journal #/ Type
Created By:
D3
School/Center
Purpose
Entry
Dr. 031-0300-0-651234-4812-8123-0000
Amount in Example
Notes
3,000,000.00
To budget the use of a Capital
Gift Fund as a funding source.
Object 4812 is the Capital Restriction Reclassification. For capital gifts restricted by the
donor for a specific project, funds will be reclassified as the project proceeds and the
donor's restriction is met.
Budget Journal
Cr. 031-0300-0-651234-4400-8123-0000
D4
Treasurer's Office
To liquidate the investment in Dr. 000-0001-0-020000-1710-0000-0000
a quasi-endowment fund to be
used as a funding source.
3,000,000.00 Budgeting the gift income is only appropriate in the year in which you expect it. If you
already received it in a previous year, or expect to receive it in a future year, then this
can be a one-sided entry.
Notice that this is the only budget entry which is made to Net Asset Class 1, which is
Temporarily Restricted.
4,000,000.00 Upon request, the Treasurer will arrange to liquidate an investment so the proceeds can
be used to fund a capital project. This entry removes the investment in AIF and replaces
it with cash.
Manual Journal
D5
School/Center
Budget Journal
D6
School/Center
Manual Journal
D7
School/Center
Budget Journal
D8
School/Center
Budget Journal
D9
Provost's Office
Manual Journal
D10
School/Center
Budget Journal
D11
School/Center
Budget Journal
D12
Facilities Services
Budget Journal
RFDF / FRF
D13
School/Center
Budget Journal
Risk Management
Cr. 030-0320-1-461234-1710-4567-0000
To budget the use of the cash Dr. 030-0320-1-461234-4821-8123-0000
proceeds from the liquidation
for a capital funding transfer.
Cr. 030-0320-1-461234-1710-4567-0000
To withdraw balances from the Dr. 030-0300-2-000013-4839-4567-1234
bank and put them in the
General Unrestricted Fund.
Cr. 030-0300-1-000000-4839-4567-1234
To budget the use of the bank Dr. 030-0300-1-000000-4821-8123-1234
proceeds
pro
ceeds for a capital funding
transfer.
Cr. 030-0300-1-000000-4839-4567-1234
To budget the use of a grant or Dr. 030-0320-4-512345-4821-8123-5678
contract for a capital funding
transfer.
Cr. 030-0320-4-512345-4600-4567-5678
To make the RFDF award.
Dr. 000-0003-2-000003-4825-4567-0000
Research Facility
Development Fund.
Cr. 030-0320-2-000003-4820-4567-5678
To budget the use of the RFDF Dr. 030-0320-2-000003-4821-8123-5678
Award for a capital funding
transfer.
Cr. 030-0320-2-000003-4820-4567-5678
Dr. 030-0300-2-000005-4821-8123-1234
To budget the use of the
school's own Renewal and
Replacement reserves for a
capital funding transfer.
Dr. 960-9600-2-000005-4821-8123-2001
To budget the award of
resources from the University's
Facilities Renewal Program for
a capital funding transfer.
Cr. 960-9600-2-000005-4821-7800-2001
To budget the use of insurance Dr. 030-0300-2-000009-4821-8123-1234
proceeds as a capital funding
transfer.
Cr. 030-0300-2-000009-5322-8999-1234
4,000,000.00
4,000,000.00 We don't normally budget liquidations.
4,000,000.00
500,000.00
The Capital Program, 8123, cannot be used on the withdrawal entry because it is not the
capital funding entry. In this case, the school established the Center Reference to
500,000.00 document the relationship with the project and has been using it as it banked funds in
anticipation of this project.
500,000.00
Nottiice th
thatt the
th 000000 fund
f d is
i the
th official
ffi i l funding
f di source, nott the
th bank.
b k The
Th school
h l is
i
using the Center Reference to document the relationship with the project, and to
500,000.00 distinguish these funds from the ones it budgeted in entry D1.
6,000,000.00 If the grant's revenue and expense had previously been budgeted, then this would be a
reallocation.
6,000,000.00
70,000.00 A similar process is used for University Research Foundation (URF) and any other
awards from the Other Unrestricted Funds fund group.
70,000.00
70,000.00 If the award was made in a previous fiscal year, this could be a one-sided budget
journal.
70,000.00
80,000.00 No credit is shown since we're assuming the reserves were moved here in a prior year,
and the transfer wasn't previously budgeted.
90,000.00
This credit is shown since we're assuming the planned level of awards was budgeted in
the original budget, but to a generic program.
90,000.00
100,000.00 This may happen before the proceeds are actually received only with the written
authorization of the Risk Management office.
100,000.00
Project Step:
Journal #/ Type
Created By:
Purpose
D14
Treasurer's Office
Dr. 030-0300-0-000010-CPTA-8123-0000
To certify the amount the
Capital Project is authorized to
spend.
To budget the project's receipt Cr. 030-0300-0-000010-4821-8123-0000
of currently available funding
sources.
Cr. 030-0300-0-000010-4812-8123-0000
To budget the project's
maximum level of internal
financing expected.
Cr. 030-0300-0-000010-2780-8123-0000
Budget Journal
D15
Treasurer's Office
Budget Journal
D16
Mass Allocation
Budget Journal
Treasurer's Office
Entry
Amount in Example
Notes
15,225,000.00
CPTA stands for Capital Project Treasurer's Authorization. This is posted in a separate
budget called the "Special Budget", and not in the Original or Operating Budgets.
11,115,000.00 Each of these lines is for the total amount of all the funding sources that use the
particular object code.
3,000,000.00
Debit is budgeted at a higher level.
1,110,000.00
Note that the CPTA amount is not necessarily equal to the sum of the budgeted 4821,
4812, and 2780 amounts. The 2780 amount is the maximum anticipated internal
financing, but the plan may call for it to be replaced by other sources (like donor
payments on capital gift funds) during the life of the project.
Journals During Project:
Project Step
Journal#/Type
Created By
Purpose
Entry
E. Following Receipt of Certification
Notification
E1
Facilities Services
To budget the project
expenditures.
Dr. 030-0300-0-000010-1911-8123-0000
Dr. 030-0300-0-000010-1912-8123-0000
Dr. 030-0300-0-000010-1913-8123-0000
Dr. 030-0300-0-000010-1914-8123-0000
Dr. 030-0300-0-000010-1920-8123-0000
Dr. 030-0300-0-000010-1921-8123-0000
Dr. 030-0300-0-000010-1923-8123-0000
Dr. 030-0300-0-000010-1926-8123-0000
Dr. 030-0300-0-000010-1927-8123-0000
Dr. 030-0300-0-000010-1928-8123-0000
Dr. 030-0300-0-000010-1929-8123-0000
Dr. 030-0300-0-000010-1930--8123-0000
Dr. 030-0300-0-000010-1932-8123-0000
Dr. 030-0300-0-000010-1936-8123-0000
Dr. 030-0300-0-000010-1937-8123-0000
Dr. 030-0300-0-000010-1938-8123-0000
Dr. 030-0300-0-000010-1950-8123-0000
Dr. 030-0300-0-000010-1952--8123-0000
Dr. 030-0300-0-000010-1960-8123-0000
Dr. 030-0300-0-000010-1963-8123-0000
Dr. 030-0300-0-000010-1962-8123-0000
Cr. 030-0300-0-000010-1990-8123-0000
Dr. 030-0300-1-000000-4821-8123-0000
Dr. 030-0345-2-010302-4821-8123-0000
Dr 030-0320-1-461234-4821-8123-0000
Dr.
Dr. 030-0300-1-000000-4821-8123-1234
Dr. 030-0320-2-000003-4821-8123-5678
Dr. 030-0300-2-000005-4821-8123-1234
Dr. 960-9600-2-000005-4821-8123-0003
Dr. 030-0300-2-000009-4821-8123-1234
Cr: 030-0300-0-000010-4821-8123-0000
Budget Journal
E2
Manual Journal
Comptroller's Office To record funding for the
project
Manual Journal
Amount in Example
5,000.00
30,000.00
75,000.00
250,000.00
9,000,000.00
750,000.00
750,000.00
100,000.00
120,000.00
16,834.00
25,000.00
1,380,000.00
69,000.00
150,000.00
157,500.00
5,000.00
200,000.00
200,000.00
250,000.00
338,333.00
1,353,333.00
15,225,000.00
100,000.00
200,000.00
4,000,000.00
500,000.00
70,000.00
80,000.00
90,000.00
100,000.00
5,140,000.00
Notes
See sample Project Budget for details.
Note that the Comptroller's Office doesn't make any entries to fund the project from a
Grant, Capita
Grant
Capitall Gift Fun
Fund
d, or Interim Internal Capita
Capitall proj
project
ect financ
financing
ing at thi
thiss ti
time
me. See
section H for those entries.
Project Step
Journal#/Type
Created By
Purpose
Entry
E3
Manual Journal
E4
Facilities Services
To charge the project
management fee.
To charge the project
expenditures as they occur.
Dr. 030-0300-0-000010-1941-8123-0000
Cr. 960-9608-1-000000-5503-7831-3002
Dr. 030-0300-0-000010-1912-8123-0000
Dr. 030-0300-0-000010-1913-8123-0000
Dr. 030-0300-0-000010-1914-8123-0000
Dr. 030-0300-0-000010-1920-8123-0000
Facilities Services
Purchase Orders and
Payments of Invoices
E5
E6
F. Substitutions
Facilities Services
Spreadsheet
F1
School/Center
Dr: 000-0004-0-000010-1966-8123-0000
Cr. 000-0004-0-000010-4821-8123-0000
Dr. 000-0004-1-000000-4821-8123-0000
Cr. 000-0004-1-000000-5603-8999-0000
Dr. 031-0300-0-651234-4812-8123-0000
To budget the funding sources
when substituting one
available resource for another
available resource.
Cr. 031-0300-0-651234-4400-8123-0000
Cr. 030-0300-1-000000-4821-8123-0000
Notes
84,583.25
84,583.25
30,000.00
75,000.00 Where possible, all project expenditures should be initiated using a Penn purchase
250,000.00 order. In situations where a purchase order cannot be used, payments of invoices may
2,000,000.00 be made through BEN Financials. In no situations should a capital project expenditure
be made through another accounting system with the charge then transferred into a
... etc, as they are spent. capital project.
Dr. 030-0300-0-000010-4828-8123-0000
Cr. 030-0300-0-000010-1990-8123-0000
To Expense the noncapitalizable expeditures in the Dr. 030-0300-1-000000-5408-8123-0000
project on a monthly basis
Cr. 030-0300-1-000000-5408-8123-0000
Comptroller's Office To capitalize the interest
expense associated with the
project during construction.
Budget Journal
Amount in Example
Any cost processed through object codes 1914,1927,1929,1936,1938,1940,1941,1953,1960,1961,1962,1963,1964 & 1965 will be expensed at the end of the month through Mass Allocation entries.
12,000.00
12,000.00 All capitalized interest is booked to Org 0004 to the appropriate capital project program
12,000.00 on a quarterly basis. Reductions in external interest expense are aggregated in program
12,000.00 8999 CAP PROJ TBD.
100,000.00
In this example, another capital gift has been received. (If a different kind of funding
source were being substituted, we would have used 4821 instead of 4812). In this case,
we are budgeting the new gift revenue (in object 4400) because it will be booked this
100,000.00 year. If the gift had come in last year, we would omitted that line.
100,000.00
'These new funds will rep
replace
lace the General Operating Fund money the School originally
used for the project. '0' Fund has now a $100,000 surplus available and can be saved.
F2
Budget Journal
F3
Treasurer's Office
Budget Journal
F3
Treasurer's Office
Budget Journal
F4
Dr. 030-0300-1-612345-4821-8123-0000
School/Center
To budget the funding sources
when substituting another
source for internal financing.
Dr. 030-0300-0-000010-4821-8123-0000
To budget the project when
substituting one funding
source for another.
Cr. 030-0300-0-000010-4812-8123-0000
To budget the project when
substituting one funding
source for another.
Treasurer's Office
To budget the project when
substituting another source for
Budget Journal
internal financing.
F5
Comptroller's Office To record the substitution
Manual Journal, perhaps with
when one available funding
Custom Process
source replaces another.
Mass Allocation
F6
Manual Journal
Dr. 030-0300-0-000010-4821-8123-0000
Cr. 030-0300-0-000010-4812-8123-0000
Dr. 030-0300-0-000010-2780-8123-0000
Cr. 030-0300-0-000010-4821-8123-0000
Dr. 031-0300-1-651234-4812-8123-0000
Cr. 030-0300-0-000010-4812-8123-0000
Dr. 030-0300-0-000010-4821-8123-0000
Cr: 030-0300-1-000000-4821-8123-0000
Dr. 030-0300-1-612345-4821-8123-0000
Comptroller's Office To record the substitution
when the new source replaces
internal financing.
Cr: 030-0300-0-000010-4821-8123-0000
g
1,110,000.00
In this example, payments have also been received for operating gift pledges from
previous years. We couldn't certify these as a funding source when they were only
pledges in an operating gift account, but now that the cash is here we can substitute for
the plant advance.
100,000.00
This entry is only necessary if one of the funding sources uses 4821 and the other uses
100,000.00 4812. If both funding sources use the same object code, there is nothing to change here.
The debit and credit would be reversed if a capital gift fund was being replaced by
another source.
100,000.00
This entry is only necessary if one of the funding sources uses 4821 and the other uses
100,000.00 4812. If both funding sources use the same object code, there is nothing to change here.
The debit and credit would be reversed if a capital gift fund was being replaced by
another source.
1,110,000.00 This entry could contain a 4812 instead of the 4821 if the new funding source was a
capital gift fund.
1,110,000.00
100,000.00
100,000.00 Note that the 4812 entries are done automatically by the Custom Process, so only the
4821s would actually be done manually. If the new funding source were not a Capital
100,000.00 Gift Fund, then the 4812s would be replaced by 4821s, and all the entries would be
100,000.00 done manually.
1,140,000.00 The internal capital loans (if it had already been needed) goes away by itself at month
end when the mass allocation runs. The only reason to do it now is if we can't wait until
1,140,000.00 month end to see it.
This entry could contain a 4812 instead of the 4821 if the new funding source was a
capital gift fund.
F7
Mass Allocation
Comptroller's Office To record the substitution
when internal financing
replaces another source
Dr. 030-0300-0-000010-4821-8123-0000
200,000.00
Cr. 030-0345-2-010302-4821-8123-0000
'This entry could contain a 4812 instead of the 4821 if the old funding source was a
200,000.00 capital gift fund.
Project Step
Journal#/Type
Created By
Purpose
Entry
G. Additional Certifications
G1
School/Center
To budget additional funding
sources.
Dr. 030-0300-2-000004-4821-8123-5678
Budget Journal
G2
Budget Journal
G3
Budget Journal
G4
Budget Journal
G5
H. Monthly Processing
Manual Journal
H1
Manual Journal
H2
H3
Mass Allocation
Cr:.030-0300-2-000004-4910-4567-5678
Treasurer's Office
Dr.030-0300-0-000010-CPTA-8123-0000
To increase the authorized
amount of project expenditures
Treasurer's Office
To budget the certification of
Cr.030-0300-0-000010-4821-8123-0000
additional project funding
sources
Facilities Services
Dr. 030-0300-0-000010-1933-8123-0000
To budget the additional
project expenditures.
Cr. 030-0300-0-000010-1990-8123-0000
Comptroller's Office To record additional funding Dr. 030-0300-2-000004-4821-8123-5678
for the project
Cr. 030-0300-0-000010-4821-8123-0000
Comptroller's Office To record funding for the
Dr. 030-0300-4-512345-4821-8123-0000
project from a Grant or
Cr. 030-0300-0-000010-4821-8123-0000
Contracts.
Comptroller's Office To record funding for the
project from a Capital Gift
Fund.
Dr. 031-0300-0-651234-4812-8123-0000
Comptroller's Office
Dr. 000-0004-1-000000-2780-8123-0000
To record internal financing
required based on net cash
position of the fund and
program
Cr. 030-0300-0-000010-4812-8123-0000
Cr. 030-0300-0-000010-2780-8123-0000
OR
Dr. 030-0300-0-000010-2780-8123-0000
Cr. 000-0004-1-000000-2780-8123-0000
Amount in Example
Notes
750,000.00
In this example, the rights to produce a robot invented at the Research Institute are
750,000.00 licensed. The School uses their share of the royalties to upgrade one of the planned
classrooms in the new building into a robotics lab for undergraduate teaching and
research.
750,000.00
This entry is made to the Special al Budget, not the Original or Operating Budgets.
This entry would use object 4812 if the additional funding source was a Capital Gift
750,000.00 Fund, or object 2780 if the additional funding source was an internal capital project
loan.
750,000.00
This assumes a single contract to a Robotics Lab Specialist that includes design and
750,000.00 installation.
750,000.00
750,000.00
j
p
p
p
g q
6,000,000.00 each award. This entry is done based on what is spent and the cash received. ORS will
send an email to Comptroller's Office after verifying the Invoices indicating how much
6,000,000.00 should be allocated to the 5xxxxx fund. The Comptroller's Office then creates the
manual journal. NOTE: The School/Center is responsible for ensuring Research
Services, FRES and the Comptroller's Office understand grant requirements for
reimbursement.
p
p
p
3,000,000.00 of the donor restriction, as project expenditures occur and as funding is available in the
Temporarily Restricted net asset class in the capital project’s program value. The
3,000,000.00 School/Center is responsible for contacting the Treasurer’s Office if gifts to the capital
gift fund are being credited to a generic Program value, like 8999, and need to be
moved to th
thee spec
specific
ific cap
capital
ital project program value
200,000.00
If a project needs cash, the first pair of entries will give it the interim internal capital
project loan it needs. If this project goes according to plan, $200,000 will be needed at
the end of the project.
200,000.00
2,695,416.75 If the project has more cash than it immediately needs, the second pair of entries will
take it away by recording a "loan" to General University for the project funding in
2,695,416.75 excess of expenditures. For many projects, including this one, this will happen at the
beginning of the project.
The cash position of each project is reevaluated each month.
Journal At Year-End/Project-End
Project Step
Journal#/Type
Created By
I. Beginning of Year Processing
I1
Treasurer's Office
Manual Journal
Purpose
Entry
Amount in Example
To record interest expense Dr. 030-0300-1-000000-INTF-8999-0000
incurred or earned on interim Cr. 030-0300-0-000010-INTF-8123-0000
internal capital project loans. Dr. 000-0004-1-000000-5604-8123-0000
Cr. 030-0300-1-000000-5604-8123-0000
OR
Dr. 030-0300-0-000010-INTF-8123-0000
Cr. 030-0300-1-000000-INTF-8999-0000
Dr. 030-0300-1-000000-5604-8123-0000
Cr. 000-0004-1-000000-5604-8123-0000
I2
Treasurer's Office
Manual Journal
To record repayment of
interest for long term internal
capital project loans.
Dr. 030-0300-1-000000-5604-8123-0000
Cr. 000-0004-1-000000-5604-8123-0000
Purpose
I3
Manual Journal
J. Completion of the Project
J1
Manual Journal
Treasurer's Office
Notes
22,808.00 The first set of four entries credits accumulated interest for the project to the General
22,808.00 Operating Fund; the second set of four entries charges interest earned from the project
22,808.00 to the General Unrestricted Fund.
22,808.00
For projects that were active during the prior fiscal year, these entries will be posted
immediately after the prior fiscal year is finally closed. For projects that are closed
during a fiscal year, payments on both interim and long term internal capital project
1,500.00 loans (if any) will be due at the beginning of the next year.
1,500.00
1,500.00
1,500.00
In this example project, the $22,808 in interest earnings would have happened at the
very beginning of the project. The $1,500 in interest charges would have been incurred
at the very end of the project. During most of the project, no significant interest would
have been incurred or earned.
11,000.00 Once projects are closed, payments on any long term internal capital project loans will
be due at the beginning of the next year and annually thereafter until repaid. In this
11,000.00 example, we're assuming $200,000 @5.5% for 7 years.
Notes
Dr.030-0300-1-000000-2780-8123-0000
To record repayment of
principal for long term internal
capital project loans.
Cr: 000-0004-1-000000-2780-8123-0000
24,193.00
Comptroller's Office To capitalize the construction. Dr. 030-0300-1-000000-1879-9567-0000
Dr 030-0300-1-000000-1870-9567-0000
Dr.
Dr. 030-0300-1-000000-1871-9567-0000
Cr. 030-0300-1-000000-4828-9567-0000
Dr. 030-0300-0-000010-4828-8123-0000
Cr. 030-0300-0-000010-1990-8123-0000
14,700,000.00
300,000.00
1,000,000.00
16,000,000.00
16,000,000.00
16,000,000.00
Dr. 030-0300-1-000000-1879-9567-0000
Cr. 030-0300-1-000000-4828-9567-0000
Dr. 000-0004-0-000010-4828-8123-0000
Cr. 000-0004-0-000010-1990-8123-0000
24,193.00
Note that the interest and principal are booked separately, and not as a single payment
of $35,193. The relative amounts of interest and principal will change each year.
Object code 1879 is th
thee Bu
Building
ilding an
and
d Fixed Clear
Clearing
ing Account; 1870 is th
thee Furn
Furniture
iture
and Fixtures Clearing Account and 1871 is the Computer Equipment Clearing Account.
Object code 4828 is the Capital Project Closeout. The 18xx and 4828 objects are
include in TEXP.
52,000.00
52,000.00 Close out of capitalized interest
52,000.00
52,000.00
Project Step
Journal#/Type
Created By
J2
Comptroller's Office
Manual Journal
J3
To return any unexpended
funding from the Capital
Project Fund to the funding
source(s).
p
Comptroller's Office balances from Schools/Centers
to General University ORG
0033.
L1
Treasurer's Office
Manual Journal
K1.
To record interest on ICPL
balances in OBJ 278X
Dr. 030-0300-1-000000-5604-8123-0000
Manual Journa
Journall
Cr. 000-0004-1-000000-5604-8123-0000
L2
Manual Journal
Treasurer's Office
Amount in Example
Notes
Not applicable in this
example.
This is not necessary or appropriate with capital gift funds or grants, because these
sources fund projects only as spending occurs.
Cr. 030-0300-1-000000-4821-8123-0000
Manual Journal
J4
L. Interim Interest on ICPL (Internal
Capital Project Loans)
Entry
Dr. 030-0300-0-000010-4821-8123-0000
Dr. 000-0033-1-000000-1879-0000-0000
Cr. 000-0033-1-000000-4828-0000-0000
Dr. 030-0300-1-000000-4828-9567-0000
Cr. 030-0300-1-000000-1879-9567-0000
Dr. 000-0033-1-000000-1870-0000-0000
Dr. 000-0033-1-000000-1871-0000-0000
Cr. 000-0033-1-000000-4826-0000-0000
Dr. 030-0300-1-000000-4826-9567-0000
Cr. 030-0300-1-000000-1870-9567-0000
Cr. 030-0300-1-000000-1871-9567-0000
Comptroller's Office
Dr. 030-0300-0-000010-2780-8123-0000
To move the internal financing Cr. 030-0300-1-000000-2780-8123-0000
Dr. 030-0300-1-000000-4828-8123-0000
balance from the Capital
Cr. 030-0300-0-000010-4828-8123-0000
Project Fund to the General
Unrestricted Fund (000000)
Treasurer's Office
To record the expiration of the Dr. 031-0300-0-651234-4812-8123-0000
donor restriction.
Cr. 030-0300-1-000000-4812-8123-0000
Mass Allocation
K. Payments of Capital Gift Pledges
After Closeout.
Purpose
To record interest on ICPL
balances in OBJ 278X
Dr. 000-0004-1-000000-4780-8123-0000
Cr. 030-0300-1-000000-4780-8123-0000
14,752,000.00
14,752,000.00
14,752,000.00
14,752,000.00
300,000.00
1,000,000.00
1,300,000.00
1,300,000.00
300,000.00
1,000,000.00
200,000
200,000
200,000
200,000
Sweep of building and Fixed activity. Sweeps are done in the ADJ period, as part of
the 13th month close.
Sweep of moveable equipment activity
Object code 2780 is used for Borrowing: Construction Loans. and then offset it with
object code 4828 to prevent an unwanted cash effect in the General Unrestricted Fund
(Fund 000000).
Not applicable in this
example.
2,352.85
To record interest due on deficit balances in the 000010. Deficit balances (credit
balance in obj 278
278x)
x) occur w
when
hen expenses exceeds th
thee proj
project's
ect's funding . Th
Thee 278
278x
x
2,352.85 balance is charged the monthly TIFB rates. Interest is calculated on current balances
and recorded in the following FY.
892.16
To record interest earned on surplus balances in the 000010. Surplus balance (debit
892.16 balance in obj 278x) occurs when funding exceeds current project expenses. The 278x
balance earns the monthly TIFE rates. Interest calculated on current balances and
recorded in the following FY.
Project Step
Journal#/Type
Created By
Purpose
Entry
M. Debt Service on approved ICPL
(Internal Capital Project Loans)
M1
Treasurer's Office
To record scheduled debt
service on ICPL
Dr. 030-0300-1-000000-2783-8123-0000
Amount in Example
Manual Journal
M2
Treasurer's Office
To record scheduled debt
service on ICPL
Cr. 000-0004-1-000000-2783-8123-0000
Dr. 030-0300-1-000000-5604-8123-0000
Manual Journal
Cr. 000-0004-1-000000-5604-8123-0000
Notes
24,192.88
24,192.88
ICPL are typically 7 years for renovation and 20 years for new construction at the
current Municipal Bond Rate at the project's close-out. This example assumes a
$200,000 ICPL @ 5.5% for 7yrs.
At the project's close-out a debt service schedule is forwarded to the schools for
signatures. Payment are recorded in the following fiscal year. Example project closed
in March of FY2010, the first debt service payment is due, July of FY2011.
8,200.32
The first recording of interest payments on debt service is a blended rate of interim
interest (the interest calculation on loan balances in the 000010 for current FY) plus the
8,200.32 remaining month in the current FY at the Municipal Bond Rate. In this example, let's
assume the project closed in March 31st 2010, the interest would be 9 months of
interim interest + 3 month of Municipal Bond Rate interest