Foundation Reconciliation
This option calculates the retirement benefit amount paid for employees by state foundation funds using employee SERS and STRS Board Share deductions from the OH Retirement Deductions table and creates a batch journal entry to correct the foundation table.
Menu Path: Fund Accounting > State > State > OH Foundation Reconciliation
Procedural Overview
After the user accepts the screen input, the following process is done twice, once for SERS deduction codes and once for STRS deduction codes:
The program sums the records from the detail distribution table, detdist, for the displayed deduction codes and selected pay dates(s). The entered foundation amount is subtracted from the corresponding detail distribution summed amount. If the result equals zero, no journal entries are made.
If the result is negative, the amount is distributed on a ratio matching that of the original distributions. Journal entries are created for debiting the expenditure accounts and crediting the foundation account in the balance sheet.
If the result is positive, the amount is distributed on a ratio matching that of the original distributions. Journal entries are created for crediting the expenditure accounts and debiting the foundation account in the balance sheet.
Example of a positive result:
Payroll Expenditure account 1 | $ 500.00 |
Payroll Expenditure account 2 | $ 800.00 |
Payroll Expenditure account 3 | $ 200.00 |
Payroll summed amount | $1,500.00 |
Foundation entered amount | ( - ) $1,000.00 |
Result $ 500.00 |
Three journal entries are made using the following calculation to credit the original distribution:
Each expenditure account is divided by the summed payroll amount multiplied by the result
Payroll Expenditure account 1 $ 500.00 | $500.00 / $1,500.00 * $500.00 = $166.67 | |
Payroll Expenditure account 2 $ 800.00 | $800.00 / $1,500.00 * $500.00 = $266.67 | |
Payroll Expenditure account 3 $ 200.00 | $200.00 / $1,500.00 * $500.00 = $ 66.67 | |
Payroll summed amount $ 500.00 | Foundation entered amount - $1,000.00 | |
Result $ (500.00) |
Three journal entries are made using the following calculation to debit the original distribution:
Multiply the result by the negative one.
Each expenditure account is divided by the summed payroll amount multiplied by the result:
$500.00 / $1,500.00 * $500.00 = $166.67
$800.00 / $1,500.00 * $500.00 = $266.67
$200.00 / $1,500.00 * $500.00 = $ 66.67
If the sum of the total payroll amount and the total calculated foundation amount does not equal the input screen's foundation amount, an adjustment is made to the last record processed. End of calculation processing.
The district is to use the standard Batch Journal Entry option to review and post the entries made by the above process.
Generating Foundation Reconciliation Journal Entry
Select Fund Accounting > State > State > OH Foundation Reconciliation to display the Foundation Reconciliation page.
Complete the fields as needed in both the Journal Entry Information and Foundation Information sections. For details, refer to the Fields section below.
Click OK.
In the Print window, specify how you want to generate the report, and then click OK. The report's default file name is foundation.rpt.
Fields
Depending on a Fund Accounting Profile setup flag, the fields displayed will be different. If the Fund Accounting Profile is not set up to auto-assign journal entry numbers, then the Journal Entry Information Box prompts will include a Journal Entry Number field to be entered by the user. If the Fund Accounting system is set up to auto-assign journal entry numbers then the field will not be shown and the journal entry number will be auto-assigned.
Journal Entry Information Section
Field | Description |
|---|---|
Year | Drop-down selection of year for the journal entry. This defaults based on the Journal Entry Information set in the Fund Accounting profile. |
Period | Period of the fiscal year for the journal entry. This defaults based on the Journal Entry Information set in the Fund Accounting profile. |
Journal Entry Number | Number identifying the journal entry the calculation will be located. |
Control Number | Unique identifier for a control group. |
Description | Journal entry description. Character/25 This defaults to the year and month (YYMM) of the calculation followed by FOUNDRECON |
Foundation Information Section
The STRS and SERS deduction codes used to calculate the amounts paid by the payroll process are display-only fields.
Field | Description |
|---|---|
Pay Ending Date(s) | The pay ending dates to be included for the month being processed. To enter multiple dates, use a colon (:). For example, 03/27/2023 : 04/28/2023 |
Check Issue Date(s) | The check issue dates to be included. To enter multiple dates, use a colon (:). For example, 03/27/2023 : 04/28/2023 Voided checks are not included if they were voided in the current month. If a check from the previous month is voided in the current month, the check amount is subtracted. |
SERS Foundation Amount | SERS foundation amount for the month being processed. |
SERS Offset Account | SERS offset account. This is verified using the account reference table. |
STRS Foundation Amount | STRS foundation amount allocated for month being processed. |
STRS Offset Account | STRS offset account. This is verified using the account reference table. |
