Fiscal Year-End Reporting of Inventories, Accounts Receivable and Unearned Revenues

The Financial Services Office is responsible for gathering information on the inventories, accounts receivable and unearned revenues or prepaid expenses throughout the University of Arizona for accurate reporting in the annual financial statements. Units that maintain balances in any of these categories are required to provide valuations with complete supporting documentation to the Financial Services Office.

Accounts Receivable are amounts due to the University from non-UA sources as of June 30, 2014. These receivables must be recorded on the University financial statements. Amounts due from other units within the University are not reported in the financial statements.

Inventories to be reported in the University’s financial statements include:

  1. Merchandise for resale.
  2. New materials or component parts used in manufacturing or assembly of items for resale.
  3. Work in process or construction or assembly consisting of materials and labor incorporated therein.
  4. Contracts in process, whether of scientific, engineering or consulting nature other than sponsored projects.

Capital equipment items, which are identified with the University A-Tag, should not be included in these inventories.

Unearned Revenues are defined as cash received on or before June 30, 2014 but not yet earned as revenue. This means that the cash received is a pre-payment for services to be performed on or after July 1, 2014.

If your department has inventories, receivables or unearned revenues, it is your responsibility to ensure that these items are properly reported to the Financial Services Office by July 3, 2014. A department representative should attend the annual presentation "Year-End Reporting: A/R, Inventory, Unearned Revenue, Prepaid Expenses & Deposits" scheduled for May 21, 2014 from 1 – 3 pm, in the Rincon Room, Student Union Memorial Center.

Please submit your registration for the AR Training through the FSO Training Request Form. If you have any questions concerning the training, please contact FSO Financial Management – Operating Funds team at 621-3220.