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Prepaid Expense Roll forward

This workbook provides the format for a common analytical review procedure, the comparison of current year and prior year account balances, to allow for quick, efficient analysis of prepaid expenses for fund and government wide financial statements.

Entering Data

The workbook provides input worksheets for several common types of prepaid expenses. Each input worksheet allows the user to input the beginning of the year balance, additions (additional prepayments made during the year), amortization/usage (previous prepayments used during the year), and the actual “paid to” date for multiple items. The workbook also includes an “Other” worksheet to accommodate any types of prepaid expenses not associated with a particular input worksheet. Based on these inputs, each worksheet will calculate the current year-end balance for each item and the total balance for all items in the worksheet. Also, for comparative purposes, users can enter the year-end prepaid balances for an additional three prior years.
The information from each input worksheet is summarized on the Summary worksheet. This provides a quick glance of the company’s prepaid expenses in the same format as the input worksheets, including the year-end balance for all prepaid expenses. There is also a separate section in the Summary worksheet to enter total current assets for the current year and the four previous fiscal year ends.
Notes: Amounts entered in the “Expenditure Amortization” column should be entered as negative amounts. Also, non-shaded cells are intended for manual input, but cells that are not intended for manual inputs (such as cells that have formulas) have been shaded yellow to differentiate them from the input cells. If a particular year of data will not be entered, leave all the input cells blank for that year. If a particular year has a zero balance and that year is to be included in the workbook results, please enter a zero in any of the input rows for that year. (The formulas in the Analysis worksheet will not calculate for a particular year if all the input cells for that year are blank.) Also, do not change the number of rows within the list of prepaid expenses on the Input Sheet because doing so may compromise the accuracy of the calculations.
Based on the data entered into the Input Worksheet, the workbook automatically calculates up to five years of analytical information and presents the results in the Analysis worksheet, including a comparison of the expecting remaining life of each type of prepaid expense to the actual average remaining life based on the paid-to dates of each prepaid item. There is no need to input any data into the Analysis worksheet.

Updating Data

Use the workbook to carry forward the data from year to year to develop a historical summary for comparison purposes. As each year passes, the data entered should be “rolled forward” so that it always covers the most recent 5-year period. This can be accomplished by clicking the Roll forward to next year button. This function deletes the data from the oldest year (Five Years Ago) and moves the other years of data back one year for each input worksheet. Thus, the user will only have to fill in the “additions” and “amortization” data for the new Current Year.  Please note that when the worksheet is "rolled forward" the line item captions describing the individual prepaid expenses on each input worksheet will not be deleted. (However, when the Clear worksheets button is clicked, any modified line item captions will be deleted.)  Each input worksheet includes a Clear worksheets button that will clear all inputs for that particular worksheet. However, all inputs for the entire workbook can be cleared by selecting the Clear worksheets button on the Summary worksheet.  See the section “General Workpaper Functionality and Tips for Entering Data” for further information concerning the effects of roll forward and clear workbook functionality.