Revenue and expenses of federal financial aid programs are recorded in the legal-basis books. A GAAP adjustment is necessary to reclassify revenues and expenses of federal financial aid programs in agency fund net position category to grants refundable at June 30, CY. Refer to Chapter 4 for more discussion on the GAAP Accounts Receivable treatment to recognize the reserve allowance for student loans receivable. In FY20CY, a campus received financial aid contribution from the Perkins Loan program amounting to $150,000. The grant was used to pay student loans of $100,000, and interest on student loan of $50,000. Derived GAAP Entry (Period 1-12) Class Fund (CSU Account Account Name (Net Position) Program Fund) Amount 892 Agency Funds- – 722004 Supplies and services 05 403 $100,000 Grants Refundable 892 Agency Funds- – 711102 Short-term Investment 90 403 $50,000 Grants Refundable Federal financial aid grants, 892 Agency Funds- – 723007 50 403 ($150,000) noncapital Grants Refundable Journal Accounting records derived from legal for recording of funds received and expended in Description relation to the Perkins Loan Program. Manual GAAP Entry (Period 998) Class Fund (CSU Account Account Name (Net Position) Program Fund) Amount Federal financial aid 892 Agency Funds- – 723007 50 403 $150,000 grants, noncapital Grants Refundable 892 Agency Funds- – 722004 Supplies and services 05 403 ($100,000) Grants Refundable 892 Agency Funds- – 712203 Grants refundable 90 403 ($50,000) Grants Refundable Journal To reclassify revenue and expenses in agency fund to grants refundable at 6/30/CY. Description CSU
Revenue and expenses of federal financial aid programs are recorded in the legal-basis books. A GAAP adjustment is necessary to reclassify revenues and expenses of federal financial aid programs in agency fund net position category to grants refundable at June 30, CY. Refer to Chapter 4 Accounts Receivable for more discussion on the GAAP treatment to recognize the reserve allowance for student loans receivable. In FY20CY, a campus received financial aid contribution from the Perkins Loan program amounting to $150,000. The grant was used to pay student loans of $100,000, and interest on student loan of $50,000. Derived GAAP Entry (Period 1-12) Account Account Name Fund (Net Position) Program Class (CSU Fund) Amount 722004 Supplies and services 892 – Agency Funds- Grants Refundable 05 403 $100,000 711102 Short-term Investment 892 – Agency Funds- Grants Refundable 90 403 $50,000 723007 Federal financial aid grants, noncapital 892 – Agency Funds- Grants Refundable 50 403 ($150,000) Journal Description Accounting records derived from legal for recording of funds received and expended in relation to the Perkins Loan Program. Manual GAAP Entry (Period 998) Account Account Name Fund (Net Position) Program Class (CSU Fund) Amount 723007 Federal financial aid grants, noncapital 892 – Agency Funds- Grants Refundable 50 403 $150,000 722004 Supplies and services 892 – Agency Funds- Grants Refundable 05 403 ($100,000) 712203 Grants refundable 892 – Agency Funds- Grants Refundable 90 403 ($50,000) Journal Description To reclassify revenue and expenses in agency fund to grants refundable at 6/30/CY. CSU
CH_04.03.08_Grants_Refundable_FINAL.docx