1. Period End Accruals ARC Service Conference June 1, 2009

2. What is an Expense Accrual? Merriam-Webster’s Dictionary defines accrual as:  the action or process of accruing (noun)  something that accrues or has accrued (noun)  relating to or being a method of accounting that recognizes income when earned and expenses when incurred regardless of when cash is received or disbursed (adjective)

3. In Layman’s terms an accrual can be explained as:  Amounts owed to a vendor for goods ordered and received, or for services rendered, that have not been billed. So, what exactly does that mean?

4.  Interim unaudited financial statements, without notes, are required on a quarterly basis.  OMB Bulletin 06-03 lists major agency components that are required to prepare financial statements, and establishes minimum requirements for audits of Federal financial statements.  Audit firms have focused more on interim accruals for goods/services. Why are expense accruals important?

5.  Determine a threshold  Review open obligations report  Identify goods/services that have been received but not billed  Submit accrual information to ARC for processing  Once accruals have been posted, review your open obligations report and verify for accuracy What should the Agency do to facilitate the accrual process?