Long Term Notes Payable, State Trust Fund Loans and Long Term Bonds Payable
Once the district has resolved any debt schedule errors and long-term debt errors related to notes, state trust fund loans and bonds payable should disappear. Verify that the district has entered the ending balance for long term notes (08B-842100-002), state trust fund loans (08B-842200-002) and bonds payable (08B-842300-002) into the Annual Report.
Capital Leases Payable
Verify that all new capital leases have been properly reported as revenue source 878 (Capital Lease Proceeds) with the expenditure for the equipment, vehicle, electrical, etc. reported in the proper capital outlay function. Revenues 878 must equal expenditures. Review the guidelines for capital lease transactions provided under the WUFAR Accounting Issues and Coding Examples.
Capital lease payments should be reported in function 281000 object 678 (Capital Lease Payments) within the funds, not as a capital outlay expense.
Once you agree with the amounts reported for all source 878 (Capital Lease Proceeds) and all objects 678 (Capital Lease Principal), review the expected ending balance in the second column. Change the reported ending balance in the last column by clicking on the account number 08B-842600-002.
To report the cancellation of a capital lease, report a capital lease payment in function 281000 object 678 in the amount of the canceled lease balance. Report a revenue 969 "Other adjustments" for the same amount.