See OUS journal entry legend for a listing of the journal entries organized by Elimination, Reclassification and Presentation and a Trial Balance showing which entries impact each caption on the financial statements.

Introduction

With the inception of GASBs 34 and 35 in fiscal year 2002, the OUS financial statements changed from a reporting by fund type to a consolidation of fund types. The GASB standards moved governmental reporting a large step closer to the reporting format of traditional, classified financial statements. Banner activity, GASB reporting requirements and State of Oregon reporting requirements combine to make three of the four different types of Hyperion entries needed to create the OUS consolidated reports. The different types of entries can be summarized as the following:

Elimination

Elimination of transactions that resulted in overstating revenue and expense in two or more fund types, institutions or financial statements (1). Elimination entries are never entered into Banner FIS, and the Banner FIS fund balance and the reported fund balance remain in agreement.

Reclassification

Moving account balances from one financial statement caption to another. Reclassification entries are never entered into Banner FIS, and the Banner FIS fund balance and the reported fund balance remain in agreement.

Presentation

Entries for financial reporting purposes only. Presentation entries are never entered into Banner FIS, but may need to be reversed in Hyperion in the subsequent year, and may change reported fund balance which would differ from Banner FIS fund balance.

 

Adjustments/Corrections

One-time entries to correct items found after the close of period 14. Adjustments/corrections may require a Banner FIS entry, may need to be reversed in Hyperion in the subsequent year, and may change reported fund balance which would differ from Banner FIS fund balance.

When a Hyperion entry needs to be recorded in Banner:

  • DO NOT change beginning fund balance
  • NO NOT use E & F accounts UNLESS it is an adjustment to capital assets and is needed to keep the journals in balance
  • DO match the Hyperion entry as closely as possible (account, program, fund)

No

Hyperion entry not to be recorded in Banner due to:

 

 

Timing difference - transaction already recorded in Banner through normal processing (i.e. payroll, accounts payable)

Maybe

Hyperion entry may be recorded in Banner at university discretion:

 

 

Self correcting by next year end - accounts reconciled, reviewed, balanced as part of the closing process (i.e. SELP loan principal adjustments, capital lease principal corrections)

 

 

**This will cause certain accounts to be misstated (not agree with the Hyperion statements) throughout the year, until year end work is performed.**

Yes

Hyperion entry required to be adjusted in Banner:

 

 

Errors or adjustments that will not be self corrected due to normal processing or year end close work (i.e. capital asset adjustments)

Consolidated statements (need for Elimination entries)

Consolidated statements combine several reporting entities to create a single reporting entity (OUS). Accounting activity is combined and transactions that are accounted for in multiple fund types, institutions and financial statements (1) are eliminated. This leaves unduplicated activity for the institutions and Chancellor’s Office to create the OUS consolidated financial statements. See the Eliminations listing for types of entries made in Hyperion to create the OUS consolidated financial statements.

Classified statements (need for Reclassification entries)

The classified financial statement format was not required when the Banner FIS chart of accounts was developed in1996. Many reclassification entries are needed to convert the Banner FIS account format into the classified reporting required by GASB 34 and 35. The largest group of Hyperion entries made for each year end consolidation relate to reclassifications between the reporting captions. All of the activity related to these entries is accounted for within Banner FIS but the account activity may not be initially populated in the required reporting caption. A large number of reclassifications are captured in the Hyperion crosswalk from Banner but the account code structure does not allow for the crosswalk to handle every instance. See the Reclassifications listing for types of entries made in Hyperion to create the OUS consolidated financial statements.

Other reporting requirements (need for Presentation entries)

Several factors require Hyperion presentation entries on the OUS financials. Examples include off balance sheet financial balances and financial activity not currently recorded in Banner FIS that GASB requires for the financial statements to be in accordance with generally accepted accounting principles. GASB requires presentation of activities or eliminations that will never be included in Banner. Other presentation entries are required for the presentation of a cash flow statement which is required by GASB 34 and 35. See the Presentation listing for types of entries made in Hyperion to create the OUS consolidated financial statements.

Need for Adjustment/Correction entries

Under ideal circumstances we should not need to make Hyperion adjusting and correcting entries. Hyperion adjustments or corrections are limited to material activities relating to errors discovered after the close of period 14 that need to be recorded in the fiscal year end financial statements.

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(1) Balance sheet activity that is initially accounted for in the operating statement for budgetary purposes i.e. debt issuances, principal payments, and capitalized fixed assets.

Last Updated: 10/19/07