ctcLink Accounting Manual | 10.30.45.2 Liability Accounts
10.30.45.2 Liability Accounts
2022-06-30
Account Type: 2000000-2999999 Liabilities
- 2000000 – Liabilities Budgetary
Account Classification: 2000000-2099999 Current Liabilities
Current or short-term liabilities generally are those expected to be paid within twelve months.
- 2000002 – Current Liabilities Budgetary
2000003 – Accounts Payable Budgetary
Sub-Class: 2000000-2000999 Accounts Payable General
| Account | Account Type | Description |
|---|---|---|
| 2000004 | Accounts Payable General Budgetary | |
| 2000010 | Accounts Payable Liability Short-Term | The account is used to record general short-term liabilities expected to be paid within twelve months. |
| 2000015 | Student Financial Refunds Payable - Short-Term | The account originates from the Student Financials module to record refunds due to students to be paid out of the Accounts Payable module in Finance. |
| 2000020 | Expenses Module Control Liability | |
| 2000030 | Student Liability Short-Term | The account is used to record general short-term liabilities expected to be paid within twelve months. |
| 2000040 | Financial Aid Refund Processor Liability |
Sub-Class: 2001000-2001999 Other Accounts Payable Liabilities
| Account | Account Type | Description |
|---|---|---|
| 2001004 | Other Accounts Payable Liabilities Budgetary | |
| 2001010 | Installment-Purchase Contracts Payable Short-Term | The balance of this account represents the current portion payable by June 30th of the present value of total future payments on installment-purchase contracts. |
| 2001020 | Lease-to-Own Agreement Payable - Short-Term | The balance of this account represents the current portions of the present value of total future stipulated payments on lease-to-own agreements. |
| 2001030 | Lease Obligation Contra | |
| 2001040 | Lease Interest Contra | |
| 2001050 | Liability-Cancelled Checks Short-Term | This account is used to record liabilities arising from the cancellation of warrants or checks. |
| 2001060 | Loans Payable Short-Term | This account is used to reflect the balances of any other outstanding short-term loans payable authorized by statute to meet current obligations. |
| 2001070 | Other Liabilities Short-Term | The account is used to record general short-term liabilities that do not meet the definition for all other short-term liabilities. |
| 2001079 | Other Liabilities Clearing | |
| 2001080 | Escheatment Liability | The account is used to record the liability for assets (stale-dated checks, etc.) the college is preparing to remit to the state. |
| 2001090 | Purchase Order/Accounts Payable Receipt Accrual | |
| 2001100 | Building/Innovation Fee Short-Term | The account is used to record the amounts due to the State Treasurer for building and innovation fees. This account should only be used in Fund 841 (790). |
2010003 – Accrued Liabilities Budgetary
Sub-Class: 2010000-2010999 Accrued Liabilities General
| Account | Account Type | Description |
|---|---|---|
| 2010004 | Accrued Liabilities General Budgetary | |
| 2010010 | Student Insurance Payable | The account is used to record the balance payable to the insurance company for the amounts collected from students for insurance. This may include medical insurance for international students or liability coverage for student practicum. |
| 2010020 | Interest Payable Short-Term | The balance of this account represents the amount of interest owed on accounts and contracts payable due in less than one year. |
| 2010030 | Retainage Payable Short-Term | This account represents the percentage of the total contract price that is not yet paid pending final inspections or the lapse of a specified time period. |
| 2010040 | Construction Contracts Payable Short-Term | The balance of this account represents amounts due with a year on contracts for the construction of buildings and other improvements. |
| 2010060 | Department of Revenue Sales Tax Payable | The balance of this account represents sales taxes collected but not yet remitted to the Department of Revenue. This account is to be used in lieu of account 2012050 (Due To Other State Agencies) and is not to be accompanied by an entry in the subsidiary account field. |
| 2010070 | Department of Revenue Use Tax Payable | This account represents use taxes collected but not yet remitted to the Department of Revenue. This account is to be used in lieu of account 2012050 (Due To Other State Agencies) and is not to be accompanied by an entry in the subsidiary account field. |
| 2010080 | Unrelated Business Income Tax Payable | This account represents the amounts due to the Federal government for Unrelated Business Income Tax. See Section 70.xxx for additional information. |
| 2010085 | 1099 Withholding Payable | The account is used to amounts due to the Federal government for taxes withheld from vendors who meet the requirements for withholding. See Section 70.xxx for additional information. |
| 2010090 | Leasehold Excise Tax | This account represents leasehold excise taxes due to the Department of Revenue when the college leases state owned property to a private party. This account is to be used in lieu of account 2012050 (Due To Other State Agencies) and is not to be accompanied by an entry in the subsidiary account field. |
| 2010100 | City/County Tax | This account represents taxes due to the Department of Revenue for city and county portions of the sales and use tax. This account is to be used in lieu of account 2012050 (Due To Other State Agencies) and is not to be accompanied by an entry in the subsidiary account field. |
Sub-Class: 2011000-2011999 Payroll Liabilities/HCM Payables
2011004 – Payroll Liabilities/HCM Payables Budgetary
In Legacy (FMS/PPMS) virtually all salary and benefits liabilities were recorded using a single liability. In part, this worked well since all payroll liabilities were moved to the Central Payroll account (managed originally by CIS and then SBCTC) and benefit liabilities were moved to Fund 790 with separate Prg-Orgs (Class-Dept) for each vendor. Since payroll is not configured in the same manner in ctcLink, some accounts are no longer used and others have been added to be able to distinguish the vendor liabilities; employer (ER) and employee (ER) liability portions; regular pay and prepaid (PP) liabilities for faculty who make that election. To provide more detail and allow for an easier reconciliation of payroll liabilities more than 130 payroll liability accounts exist. As noted above, all Legacy payroll entries were ‘automatically’ made in each chartstring with an expense/cash entry and a cash/net pay liability entry in the Central Payroll fund and cash/vendor liability in Fund 790. As in Legacy, the month-end and year-end payroll entries (expenditures and liabilities) are accrued back to the period in which the expenses were incurred.
| Account | Account Type | Description |
|---|---|---|
| 2011010 | Accrued Salaries and Fringe Benefits Payable – Short-Term (monthly) | The balance of this account represents salaries and fringe benefits earned but not paid. This account is used for during conversion but is not used in the payroll process in ctcLink. |
| 2011015 | Payroll Net Pay Liability | This account used to record salaries earned but not paid for the colleges and the State Board. |
| 2011020 | WAPAY Payroll Net Pay Liability | This account is used in Central Payroll to record the payroll net pay liabilities transferred from the college and State Board to Central Payroll (i.e. BU WAPAY). |
| 2011025 | Federal Income Taxes | This account used to record federal income taxes due to the IRS. |
| 2011027 | State Income Tax - EE | This account used to record the employee income taxes due to the revenue departments of those states that require income tax withholding when an employee lives in that state but works for an employer in Washington (i.e Oregon, Arizona…). |
| 2011028 | State Income Tax -ER | This account used to record the employer income taxes due to the revenue departments of those states that require income tax withholding when an employee lives in that state but works for an employer in Washington (i.e Oregon, Arizona…). |
| 2011030 | OASI -ER | This account used to record the employer portion of Old-Age Survivors Insurance due to the federal Social Security Administration. |
| 2011035 | OASI -EE | This account used to record the employee portion of Old-Age Survivors Insurance due to the federal Social Security Administration. |
| 2011040 | Medicare -ER | This account used to record the employer portion of Medicare due to the federal Social Security Administration. |
| 2011045 | Medicare -EE | This account used to record the employee portion of Medicare due to the federal Social Security Administration. |
| 2011050 – 2011075 | Credit Union Deductions | These accounts record the liability for employee deductions sent to the credit unions. Since ctcLink has the ability for multiple depository accounts these accounts are not necessary. Upon conversion to ctcLink these deductions are stopped and employees asked to set up a second bank account. |
| 2011080 – 2011699 | Other Employee Deductions/Agency Contributions | These accounts record the various employer and/employee payroll related liabilities ranging from retirement to garnishments, some mandatory and some voluntary deductions. See 10.20.45.2 Liability Account Types & Classifications for a complete list of accounts used. |
| 2011655 | Due to Deceased Employee's Estate | This account used to record the amount owed to the estate of an employee who passed away while still employed. |
| 2011705 | Unemployment Tax - ER | This account used to record the employer amount due to the state Employment Security Department for employee’s working in Washington. |
Sub-Class: 2012000-2012999 Due-To College or Other State Agency
| Account | Account Type | Description |
|---|---|---|
| 2012004 | Due-To Fund, College, State or Other Government Agency Budgetary | |
| 2012010 | Due to Other Funds – Vendor Payment Advance – Short-Term | This account was used in Legacy and was converted from GL5150. Immediately after go-live, the college should have eliminated all entries that used 1000070/2012010 (in state funds) and the 1010140/1000070 offset (in fund 841). The balance of this account represented the vendor payment advance due from other funds within a college. This account should be accompanied by a valid fund code in the subsidiary chartfield. Within a college, all Accounts 1010140 and 2012010 must be equal. |
| 2012020 | Due to Federal Government – Short-Term | The balance of this account represents obligations due to federal agencies. |
| 2012030 | Due To Other Governments – Short Term | The balance of this account represents obligations due to countries, municipalities, school districts, other local units of governments, Indian tribes and other states. |
| 2012040 | Due to Other Funds – Internal, Short-Term | The balance of this account represents amounts due to other funds within the college. This account is to be accompanied by a valid fund code in the subsidiary field. Within a college, all accounts 2012040 and 1010170 must equal each other. |
| 2012050 | Due to Other State Agencies – Short-Term | This account represents amounts due to other state agencies. This account is to be accompanied by a valid state agency code in the subsidiary field. Statewide, all Accounts 2012050 and 1010180 must be in balance by the end of the fiscal year; therefore, every effort should be made to communicate with the other state agencies involved. |
| 2012060 | Due to Other Funds – Pooled Cash – Short-Term (only in Fund 841) | This account was used in Legacy and was converted. Immediately after go-live, the college should have eliminated all entries that used 1000070/2012060 and the offset 1010190/1000070. The balance of this account represents amounts of cash, summarized by fund, within a college used in FMS. Surplus cash balances from all funds were pooled for the purpose of making investments. Within an agency, all Account 1010190 and 2012060 must equal each other. |
2020003 – Compensated Absences Budgetary
The following 3 accounts are only used at the end of the year to accrue the leave liabilities on the books as of June 30. These amounts are truly estimated as it is not known how much leave an employee might take or if the employee ends employment and amounts for payable leave time are cashed out.
| Account | Account Type | Description |
|---|---|---|
| 2020010 | Accrued Vacation Leave Payable - Short-Term | The balance of this account represents the current portion of salaries and associated payroll related payments for the amount of vacation leave owed but not paid. |
| 2020020 | Accrued Sick Leave Payable - Short-Term | This account represents salaries and associated payroll related payments for the estimated amount of accumulated sick leave that is probable the college will cash out. |
| 2020030 | Accrued Compensatory Time Payable - Short-Term | The balance of this account represents salaries and associated payroll related payments for the amount of compensatory time owed but not paid at the end of the fiscal year. |
| Account | Account Type | Description |
|---|---|---|
| 2030003 | Deposits Payable Budgetary | |
| 2030010 | Deposits Payable - Short-Term | This account is to be used to record the amounts payable for deposits made by students or contractors. |
| Account | Account Type | Description |
|---|---|---|
| 2040003 | Unearned Revenue Budgetary | |
| 2040010 | Unearned Revenue - Short-Term | This account represents amounts for which the revenue/asset recognition criteria have been met but for which the earnings process is not complete. Included is all summer and fall tuition revenue received on or before June 30th. This cross-walks to 5199 in AFRS for funds 790 and 840. All other funds cross-walk to 5190. |
| Account | Account Type | Description |
|---|---|---|
| 2050003 | Current Portion, Long Term Debt Budgetary | |
| 2050010 | Certificate of Participation Through Office of the State Treasurer - Short-Term | Used to record the portion of the certificates of participation payable issued through the OST for qualifying asset purchases under RCW 39.94 that are maturing within one year. At the end of each fiscal year, the college should reclassify the amount due within 12 months from long-term to short-term based upon statements provided by OST. |
| 2050103 | Current Portion, Long Term Leases Budgetary | |
| 2050100 | Right-to-Use Lease Liability - Short-Term | Used to record the current portion of the present value of total future payments of the right to use another entity’s asset, other than subscription-based information technology. |
| 2050200 | Subscription Information Technology (SBITA) Liability ST | The balance of this account represents the current portion of the present value of total future payments of the right to use another entity’s subscription-based information technology asset. |
Account Classification: 2100000-2199999 Non-Current Liabilities
Non-current liabilities/obligations generally are those not expected to be paid within the next twelve months. Long-term obligations resulting from activities in enterprise, internal service, and custodial funds are accounted for in the funds themselves. Long-term obligations in general, special revenue and capital projects, are accounted for in the General Long-Term Obligations Subsidiary Accounts.
| Account | Account Type | Description |
|---|---|---|
| 2100002 | Non-Current Liabilities Budgetary | |
| 2100003 | Compensated Absences Long-Term Budgetary | |
| 2100010 | Vacation Leave Payable Long-Term | This account is used to record the non-current portion of salaries and associated payroll payments for the amount of employee vacation leave owed but not paid. |
| 2100020 | Accrued Sick Leave Payable Long-Term | This account represents the non-current portion of salaries and associated payroll related payments for the estimated amount of accumulated sick leave likely the college will cash out in future years. |
| 2140200 | SBITA Liability LT | The balance of this account represent the long-term portion of the present value of total future payments of the right to use another entity’s subscription-based information technology asset. |
| 2020030 | Accrued Compensatory Time Payable Long-Term | The balance of this account represents the non-current portion of salaries and associated payroll related payments for the amount of compensatory time owed but not paid at the end of the fiscal year. |
| Account | Account Type | Description |
|---|---|---|
| 2120003 | Unamortized Premium Budgetary | |
| 2120010 | Unamortized Premiums Certificates of Participation Sold | This account is used to record the original issue premium (OIP) on the sale of a COP that remains to be amortized over the remaining life of the COP. This account is used when the OIP is material in proprietary and trust funds as well as for government-wide reporting (which use the economic resources measurement focus and accrual basis of accounting). Governmental funds (which use the modified accrual, current financial resources basis of accounting) record OIP to account 4040110 "Original Issue Premium - COPs." |
| Account | Account Type | Description |
|---|---|---|
| 2130003 | Long-Term Debt/Liabilities Budgetary | |
| 2130010 | Due to Fed Government Long-Term | This account is used to record long-term obligations due to federal agencies. These are rare in the college system. |
| 2130020 | Due to Other Governments Long-Term | Use this account represents long-term obligations due to counties, municipalities, school districts, other local units of government, Indian tribes and other states. |
| 2130030 | Due to Other Funds Long-Term | Long-term amounts due to other funds within a college should use this account. This account is to be accompanied by a valid fund code in the subsidiary chartfield. Within a college, the total of 1100030 debits should equal 2130030 credits. These entries do not occur frequently. |
| 2130040 | Certificates of Participation Payable Long-Term | The balance of this account represents the long-term portions of the certificate of participation payable issued through the Office of State Treasurer for qualifying asset purchases under chapter 39.94 RCW. |
| 2130050 | Other Obligations Long-Term | The long-term portions of other long-term obligations not related to the acquisition of capital assets. |
| 2130100 | Deposits Payable | The balance of this account represents long-term amounts payable for deposits made by customers or contractors. |
| Account | Account Type | Description |
|---|---|---|
| 2140010 | Lease-to-Own Payable Agreements Long-Term | This account is used to record the long-term portions of the present value of total future stipulated payments on lease-to-own agreements. |
| 2140100 | Installment Purchase Contracts Payable Long-Term | This account is used to record the long-term portion of the present value of total future payments of the right to use another entity’s asset, other than subscription-based information technology. |
Account Classification: 2200000-2299999 Deferred Inflows of Resources
Non-current liabilities/obligations generally are those not expected to be paid within the next twelve months. Long-term obligations resulting from activities in enterprise, internal service, and custodial funds are accounted for in the funds themselves. Long-term obligations in general, special revenue and capital projects, are accounted for in the General Long-Term Obligations Subsidiary Accounts.
- 2200002 – Deferred Inflows of Resources Budgetary
| Account | Account Type | Description |
|---|---|---|
| 2200002 | Deferred Inflows of Resources Budgetary | |
| 2200010 | Deferred Inflows on COP Refund | The remaining difference (credit balance) between the proceeds of the refunding (new) COP and net carrying value of the refunded (old) COP. The deferred charge is amortized using 5070030 in proprietary accounts and 5070080 in the General Long-Term Obligations Subsidiary. |
| 2200100 | Deferred Inflows on Right-to-Use Asset | The balance in this account represents deferred inflows of resources related to future lease payments for state assets leased to individuals or organizations external to the state. |
| Account | Account Type | Description |
|---|---|---|
| 8008160 | Federal Student Loans Contra (Used with 10110xx) | This account is an offset to amounts recorded to accounts 1011030, 1011040, 1011050 and 1011070. These amounts are not reported to AFRS and are used for federal reporting only. |
| 8008163 | Federal Student Interest Contra (Used with 10110xx) | This account is an offset to amounts recorded to accounts 1011060 and 1011080 only. These amounts are not reported to AFRS and are used for federal reporting only. |
