Lawrence Berkeley National Laboratory masthead LBNL Home A-Z Index U.S. Department of Energy logo Phone Book Jobs Search

RPM

REQUIREMENTS AND POLICIES MANUAL

Search the RPM
 
Home

Accruals

    Title:

    Accruals

    Publication date:

    9/22/2016

    Effective date:

    12/31/2011

    BRIEF

    Policy Summary

    This policy describes the requirements for accounting for liabilities at Berkeley Lab to ensure adherence to DOE liability accounting requirements.

    Who Should Read This Policy

    This policy applies to all employees who establish, monitor, or report on liabilities at Berkeley Lab.

    To Read the Full Policy, Go To:

    The POLICY tab on this wiki page

    Contact Information

    Disbursement Services Manager

    Title:

    Accruals

    Publication date:

    9/22/2016

    Effective date:

    12/31/2011

    POLICY

    A. Purpose

    This policy describes the requirements for accounting for liabilities at Berkeley Lab to ensure adherence to DOE liability accounting requirements.

    B. Persons Affected

    This policy applies to all employees who establish, monitor, or report on liabilities at Berkeley Lab.

    C. Exceptions

    Not applicable

    D. Policy Statement

    Berkeley Lab accounts for liabilities in compliance with DOE Management Handbook, Chapter 11.

    An accrual is an accounting transaction to record costs in Berkeley Lab's financial management system for labor, procurements, and travel where the benefit is received (goods received, services performed) during the current fiscal period, prior to payment being made or the certification of an invoice. Accruals ensure that costs are recorded in the period in which the costs are incurred.

    From a funds control perspective, Berkeley Lab has a comprehensive system that provides division personnel with information on project funds, costs, encumbrances, and pre-encumbrances. Division focus on both uncosted and unencumbered balances decreases the need for certain monthly accruals as unaccrued costs related to goods received or services performed are included in encumbrance balances.

    The following table lists the primary categories of accruals and the related frequency:

    Accrual Category

    Description

    Frequency

    Performed by

    Division Accrual

    Procurement- or travel-related accruals not captured in the unposted Accounts Payable (A/P) accrual, receipt accrual, or travel accrual, subject to materiality considerations

    Year-end, although monthly accruals can be made when certain conditions are met (see below)

    Initiated by Resource Analyst and processed by Controller's Office staff

    Payroll Accrual

    Costs related to bi-weekly and monthly payroll

    Month-end

    System generated

    Receipt Accrual

    Goods procured through Berkeley Lab's procurement channels when the good has been received during the fiscal period, through the Laboratory's Receiving Department

    Month-end

    Controller's Office staff

    Service Accrual

    Services procured through Berkeley Lab's procurement channels when the service has been performed during the fiscal period, subject to materiality considerations

    Month-end

    Initiated by Resource Analyst and processed by Controller's Office staff

    Travel Accrual

    Outstanding airfare for reservations placed through the corporate travel agent and related lodging and meals (per diem) for travel during the fiscal period

    Year-end

    Controller's Office staff

    Unposted Voucher Accrual

    Goods and services procured through Berkeley Lab's procurement channels when the invoice for the good/service has been received and scanned into Berkeley Lab's Accounts Payable system during the fiscal period but has not been paid (i.e., not certified)

    Month-end

    Controller's Office staff


    Note: Terms of "year-end" and "month-end" refer to the fiscal-period end, not the calendar-month end.

    Service and division accruals are subject to materiality considerations. A transaction is considered material if there is substantial likelihood that omission of the accrual would affect or influence financial management decisions (e.g., to encumber additional funds).

    Division accruals are predominantly a year-end activity except in the following instances:

    All accrual transactions must have appropriate supporting documentation.

    For division and service accruals, documentation will include:

    • A detail of the amount accrued
    • An explanation of how the amount was determined
    • Identification of who provided information for the accrual
    • Supplier documentation, if available
    • Proper approval by an individual with designated financial approver authority (resource adjustment/accrual approval authority)

    Division and service accrual supporting documentation will be stored in a central repository (e.g., a shared drive, such as Google Drive) based on direction from Field Operations management.

    E. Roles and Responsibilities

    Role

    Responsibility

    Division: Individual Requesting Accrual

    • Once the need for an accrual is identified, makes a timely request to the Resource Analyst to initiate an accrual transaction

    Field Operations: Accrual Preparer/Resource analyst

    • Is knowledgeable about accrual requirements and policy and is proficient in using Berkeley Lab tools to process accrual transactions
    • Through the cost review and analysis process, identifies needed, material accruals
    • Ensures that accruals meet Accrual policy guidelines for preparation and documentation

    Division/Field Operations: Accrual Approver

    • Ensures that the accrual meets policy criteria prior to approval
    • Approves transactions in a timely manner

    Controller's Office/Disbursements Accounting

    • Ensures Berkeley Lab's financial policies are up to date and comply with DOE Financial Management Handbook requirements and generally accepted accounting principles, making modifications as appropriate
    • Primarily responsible for financial statement reporting, with inputs from divisions as needed
    • Processes accruals as identified in the table shown in Section D.1 above

    F. Definitions/Acronyms

    Term

    Definition

    Encumbrance

    An amount (full cost) for which there is a legal obligation to spend in the future

    Liability

    A present obligation arising from past events that will result in future transfer of assets (cash)

    Project/Activity

    An identification number used to accumulate, manage, and report costs associated with individually funded activities at Berkeley Lab

    G. Recordkeeping Requirements

    Documentation supporting accruals must be retained as described in this policy. Documentation is subject to audit and must be retained per Berkeley Lab archiving policies, the National Archives and Records Administration, and Contract 31.

    H. Implementing Documents

    None

    I. Contact Information

    Disbursement Services Manager

    J. Revision History

    Date

    Revision

    By whom

    Revision Description

    Section(s) affected

    Change Type

    1/2/2012

    1

    M. Mock

    Re-format for wiki

    All

    Minor

    2/10/2015

    1.1

    J. Wick

    Minor clarifications of policy

    All

    Minor

    5/8/2015

    1.2

    J. Wick

    Minor clarification; remove quarterly travel accrual for consistency

    D.2.2

    Minor

    9/22/16

    1.3

    M. Beedle

    Minor clarifications of policy

    All

    Minor

    DOCUMENT INFORMATION

    Title:

    Accruals

    Document number

    11.01.004.000

    Revision number

    1.3

    Publication date:

    9/22/2016

    Effective date:

    12/31/2011

    Next review date:

    2/10/2018

    Policy Area:

    Accounting

    RPM Section (home)

    Financial Management

    RPM Section (cross-reference)

    11.14

    Functional Division

    OCFO

    Prior reference information (optional)

    RPM Chapter 11, Section 11.14

    Source Requirements Documents

    DOE Accounting Handbook, Chapter 11, Liabilities

    Implementing Documents

    None

    • No labels

    Adaptavist ThemeBuilder EngineAtlassian Confluence