| VOLUME: I |
POLICIES RELATED TO ACCOUNTING ADMINISTRATION |
| SUBJECT: |
Historical Data Only in the Official Accounting Records |
| SOURCE: |
Cost Accounting Standards (CAS) 9905.501, Consistency in estimating, accumulating and reporting costs by educational institution, CAS 9905.502, Consistency in allocating costs incurred for the same purpose by educational institutions, and Chief Accountant. |
| DATE ISSUED: |
July, 1996 |
| POLICY NO.: |
I-380 |
| RATIONALE: |
The information recorded into the Financial Information Systems (FIS) should be the most accurate reflection of what the costs and revenues are. The basis for the capital assets should be historical. The replacement value of capital assets should be recorded separately and opportunity costs should not be recorded as part of the official accounting records. |
| POLICY: |
All transactions, either cash or accrual basis, should be recorded at historical costs. |
| DEFINITIONS: |
Historical cost is the net cash paid for an expenditure or the capitalized value of an asset.
Estimated transaction is an accounting transaction which is probably going to take place and the dollar amount of the transaction can be reasonably estimated.
Accrual document is a document used to record an accounting transaction that does not affect cash. |
| PROCEDURE REFERENCE: |
The dollars that are recorded into the FIS should have source documents that verify the accuracy of the amount entered into the FIS. There should not be any additional amounts added to the historical costs. |
| CROSS REFERENCE: |
Auxiliary Standard Operating Procedures (ASOP) is a manual prepared by auxiliary accounting in FMS which describes and records different types of accruals. See Accounting Administration Policy I-400, Formula for Setting Recharge Center Rates and Policy I-410, Recharge Center Transfers. |
| RESPONSIBLE ORGANIZATION: |
Financial Management Support |
