Wake Forest University also uses the accrual method according to GAAP now.
There is a reason for this -- see http://www.accountingfoundation.org/gaap and
here's the snippet:GAAP & Not-for-ProfitsNot-for-profit organizations often
find that there are many advantages to using GAAP—especially those seeking
to expand their capacity to provide services. Not-for-profit financial
statements that follow GAAP also promote understandability from a user
perspective, and are commonly understood by lenders, donors, grantors,
rating agencies, accrediting bodies, and regulators.
Lauren
--
Lauren Corbett
Director of Resource Services, Z. Smith Reynolds Library
Wake Forest University
336-758-6136
ISNI: 0000 0003 5170 369X
On Wed, Nov 18, 2015 at 4:45 PM, <acqnet-l_at_lists.ibiblio.org> wrote:
> Hi all.
>
> I'm curious to know what the point is of said "general accounting
> practice"? Can anyone explain the reasoning for keeping the accounts this
> way, besides creating, " a lot of extra record-keeping!"?
>
> Does it save money in each fiscal year doing this "general accounting
> practice"? Or is it a more accurate picture of what is truly spent within a
> fiscal year by keeping the books in this manner?
>
> Thank you.
> -Carol Kornhauser
>
> On Wed, Nov 18, 2015 at 2:35 PM, <acqnet-l_at_lists.ibiblio.org> wrote:
>
>> This happened to us at the College of Charleston probably 15 years ago.
>> It creates a lot of extra record-keeping! We are happy to answer any
>> questions you might have. I have a fantastic accounting assistant, Salter
>> Scharstein. Katina Strauch
>>
>>
>>
>> *From:* ACQNET-L [mailto:acqnet-l-bounces_at_lists.ibiblio.org] *On Behalf
>> Of *acqnet-l_at_lists.ibiblio.org
>> *Sent:* Wednesday, November 18, 2015 10:27 AM
>> *To:* acqnet-l_at_lists.ibiblio.org
>> *Subject:* [ACQNET-L] Invoice payment -- "general accounting practice"
>>
>>
>>
>> Hi all,
>>
>>
>>
>> I am hoping to find out if your institution’s Accounting Office is doing
>> something similar to what our College’s Financial Services Office calls
>> “general accounting practice.” Recently, we were informed by our Financial
>> Services Office that payments for renewals/subscriptions will come out of
>> our budget matching exactly when the subscription term takes place. Our
>> fiscal year starts June 1 and ends May 31 the following year.
>>
>>
>>
>> Say we just a renewal invoice for database subscription for 01/01/2016 –
>> 12/31/2016 that is billed at 1200.00 for the renewal. Our Accounts Payable
>> is now splitting the $1200 into two fiscal year because the subscription
>> period falls into two separate fiscal years. So this is what they are
>> doing now – they split the total into two amounts by charging five months
>> of the subscription (Jan. 1 – May 31, 2016), $500 against current fiscal
>> year budget. And holding $700.00 to be put against next fiscal year which
>> it starts on June 1, 2016. They would still pay the whole bill in full
>> $1200 to the vendor/provider. So basically at the Library we have to
>> invoice $500 for current fiscal year in our ILS and set a reminder to
>> invoice the other $700 when new fiscal year starts in June. We’ve never
>> had to invoice this way for the past 12 years since I’ve been here until
>> very recently. The Accountant in our Financial Services Dept. called this
>> as a “General Accounting Practice.” I was wondering how general this
>> practice really is as she calls it and if any other institution’s
>> Accounting Office/Dept. is doing something similar? I guess I’m looking
>> for endorsement to this “general accounting practice” to lower my blood
>> pressure … sigh!
>>
>>
>>
>> Thanks in advance for any information you are willing to share!
>>
>>
>>
>> Best,
>>
>> Dung-Lan
>>
>>
>>
>> *********************************************
>>
>> Dung-Lan Chen
>>
>> Bibliographic Services/Acquisitions Librarian
>>
>> Lucy Scribner Library
>>
>> Skidmore College
>>
>> 815 N. Broadway
>>
>> Saratoga Springs, NY 12866
>>
>> Voicemail: 518-580-5511
>>
>> Fax: 518-580-5541
>>
>> Email: duchen_at_skidmore.edu
>>
>> *********************************************
>>
>>
>>
>> _______________________________________________
>> ACQNET-L mailing list
>> ACQNET-L_at_lists.ibiblio.org
>> http://lists.ibiblio.org/mailman/listinfo/acqnet-l
>>
>>
>
>
> --
>
> *Carol Kornhauser*
>
> *Acquisitions Coordinator*
>
> *Shadek-Fackenthal Library*
>
> carol.kornhauser_at_fandm.edu
>
> *p. *717-291-3841 | *f. *717-358-4436
>
> *USPS Mailing Address*
> *Franklin & Marshall College*
> *Library Acquisitions*
>
> P.O. Box 3003
>
> *Lancaster, PA 17604-3003*
>
> *FedEx/UPS/Airborne/DHL Mailing Address*
>
> *Franklin & Marshall College *
> Library Acquisitions
>
> 415 Harrisburg Avenue
>
> *Lancaster, PA 17603-2615*
>
>
> .לִמְנוֹת יָמֵינוּ, כֵּן הוֹדַע; וְנָבִא, לְבַב חָכְמָה
>
> So teach us to number our days, that we may get us a heart of wisdom.
>
>
>
>
>
> _______________________________________________
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> ACQNET-L_at_lists.ibiblio.org
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>
>
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Received on Thu Nov 19 2015 - 12:11:03 EST