Transcript Year-End Closing of the Books

Year-End Closing of the Books
2011-2012
Overview of Closing:
- Why?
• GAAP – Generally Accepted Accounting Principles.
• End of the business cycle:
– State sessions ends in June.
– UO activity begins with summer school (excluding law).
• Federal (GASB) & State (OUS) requirements.
– OUS has a number of mandated deadlines.
• Snapshot in time.
– YTD Activity is used to monitor, project, budget, compare
and contrast with other funds, institutions, etc…
– YTD balances are used for performance evaluations, system
audits, anomalies, etc…
Overview of Closing:
- Why?
• Annual reporting – Internal & external.
– Rolled into OUS and State financial statements.
– Used by DHHS and other Federal agencies, State Board of
Higher Education, Bonding Services, etc…
• Auditors –
– Test for accuracy, consistency & reliability of systems,
including our policies & procedures. Help us establish best
practices.
– Includes: DHHS, Naval Research, NCAA, Clifton Larson
Allen(financial statement & A-133), Secretary of State, etc…
• OUS Financial Statements:
http://www.ous.edu/dept/cont-div/accounting-reporting/annualfinreport
Overview of Closing
- When?
Activity that takes place between:
July 1, 2011 and June 30, 2012
• Including accruals thru July 23, 2012.
• Transactions must be recorded in the fiscal year that a
majority of the event takes place, not when it is
processed.
• This applies to all funds in FIS regardless of the
funding source.
Overview of Closing
- What?
• Close fiscal period 12.
– Our goal is to have all June transactions recorded in FP-12.
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Open accrual period (fiscal period 14).
Departments have one week for adjustments.
BAO/BRP/SPS have one week for adjustments.
Close fiscal period 14 (FY-12).
OUS extracts our data & populates the HFM System.
UO reports any FY-12 transactions to OUS through
the date financial statements are released.
FY-13 Balances
• FY-13 balances will only include FY-13
transactions until fiscal period 14 is
opened.
• When fiscal period 14 is opened, beginning
balances in FY-13 (FP-00) are populated
with FY-12 FP-12 ending balances.
• Each entry posted to FY-12 during FP-14
has a mirror entry in FY-13 (FP-00).
Balance Sheet Account Codes
A = Assets
B = Liabilities
C = Income Statement Totals
D = Fund Balance
E = Fund Additions
F = Fund Deletions
Income/Expense Accounts are rolled up to Fund
Balance at Fiscal Year-End.
Balance Sheet/Income Stmt.
FGITBAL
Balance Sheet
C0010
C2010
C1010
C5010
FWIBUDG
Income Stmt
0XXXX
1XXXX
2XXXX8XXXX
9XXXX
Revenue
Labor
General
Expense
Transfers
Subsidiary Ledgers
• The FIS general ledger is the official source of
financial information for the UO.
• Provide a greater amount of detailed information.
• FIS Examples – Operating ledger, Student A/R,
Grants, Fixed Assets, Accounts Payable, etc…
• Departmental shadow systems can be used as a
subsidiary ledger. They can be useful in
providing information for accounting and
reporting to departmental staff. These subsidiary
ledgers must be reconciled to Banner FIS.
Dates to Remember:
• June 7 June Regular Payroll Deadline
• June 22 Contact BAO for help accruing department
non-student accounts receivable
• June 29 Last day to submit Student Receivables
• June 29 Last day to Deposit Cash by 3:00 p.m.
• June 30 Item(s) must be received by this
day to pay with 11-12 funds
• July 3
Last day to Submit Payroll Form (PAA)
for 11-12.
Dates to Remember:
• July 6 Last day to submit Service Department
Upload JVs, “Z” documents through
AppWorx, for Period 12
• July 6 Last day to direct input Inter-Institutional JVs
(Charts B-K) for Period 12
• July 9 Last day to submit Budget changes for Period 12
• July 9 Last day to input an invoice for Fiscal Period 12
• July 9 Last day to input JVs for Period 12
• July 9 Period 12 Close
***(Above items must have a June transaction date)
Dates to Remember:
• July 10 Availability of Fiscal Period 12 Reports
• July 10 Last day to direct input Inter-Institutional
JVs (Charts B-K) for Period 14
• July 16 Last day to input JVs for Period 14
• July 16 Last day to input Budget Changes for
Period 14
• July 16 Last day to pay an invoice for 11-12
Period 14
Dates to Remember:
• July 20 Last day to Submit IIJVs to BAO for
Period 14
• July 20 Detail and aging reports due for all
non-SIS accounts receivable
• July 23 Last day to Submit AP Reports
• July 23 Period 14 Close (FY12)
• July 24 Availability of Fiscal Period 14
Reports
Year End Accruals
Prepaid Expense - A5901
Expenditures must be charged to the fiscal year in which goods are received
or the majority of the services are performed.
Example JV’s as follows:
To record expenditure as a prepaid expense in FY12:
Debit
Department Fund
A5901 - Prepaid Expense
Credit Department Index
Expense Account Code - ex.
24505 Performance Fees
To record the reversal in FY13:
Debit
Department Index
Expense Account Code - ex. 24505
Performance Fees
Credit Department Fund
A5901 - Prepaid Expense
Year End Accruals
Prepaid Revenue - B5901
Revenue must be credited to the fiscal year that the goods or majority of the services
are provided.
Example JV’s as follows:
To record revenue as a prepaid revenue in FY12:
Debit
Department Index
Credit
Department Fund
Prepaid Revenue
To record the reversal in FY13:
Debit
Department Fund
Credit
Department Index
Revenue Account Code - ex. 01102 Nonresident
Undergrad Tuition
B5901 - Accrued Undistr Income
B5901 - Accrued Undistr Income
Revenue Account Code - ex. 01102 Nonresident
Undergrad Tuition
Non-SIS Accounts Receivable
• Each department must submit a detail and aging
report of their non-SIS accounts.
• These reports must be reconciled to banner as of
period 14 (use FGITBAL).
• Includes service departments, auxiliaries, and
designated operations accounts receivables from
entities that are external to OUS institutions.
• All internal transactions need to be posted before
the close of FP-14.
Dating FIS Documents
• Documents entered
between July 1 and
July 16 for fiscal
year - 12, you will
need to change the
transaction date to
June 30, 2012.
This includes:
• Budget Changes
• Invoices
• JVs
• Travel
Reimbursements
Encumbrances
• All open encumbrances (except zero
balance items) will be rolled into fiscal
year 13 Banner FIS operating ledger.
• Liquidate any encumbrances that you do
not want to roll into fiscal year 13 before
the close of fiscal period 12 (July 9th).
Expenditure Cut-Off Guidelines
• Expenditures must be charged to the fiscal year
in which goods are received or services are
performed.
• For goods and services received by June 30 for
which vendor invoices have not been received as
of July 23, fill out an A/P Report and forward it
to BAO Financial Services.
• http://ba.uoregon.edu/sites/ba/files/forms/yearend
ap.pdf
Service Centers
• Service Center Compliance
• 5 yr. Plan (CAMP).
• See BAO Website for Detailed Instructions.
http://ba.uoregon.edu/staff/service-centers
Reporting Property Not Owned
by the UO
• Leased Asset Schedule for Year-End
Reporting.
• Leased Property (LE/LP).
• Loaned Property (LN).
• Adequate Insurance Coverage.
• FWIFLST – Banner Form to Check for
Completeness of Inventory Records.
Real Property
• Capitalization of construction in progress
(CIP) expenses.
• Conversion of completed projects into the
Banner FIS real property records.
• Componentization of specified buildings
used for research.
BAO Help
• Accounting and Financial Management Contacts
http://ba.uoregon.edu/staff/actg-and-finl-mgmt-contacts
• Accounts Payable (6-3143)
http://ba.uoregon.edu/staff/ap-invoice-payment
• Travel (6-3158)
http://ba.uoregon.edu/staff/travel
Year End COB Deadlines 2011-2012
• http://ba.uoregon.edu/staff/year-end-deadlines-12
Other Links
• http://ba.uoregon.edu/staff/year-end-close
• http://ba.uoregon.edu/staff/year-end-departmental-instructions-12
Closing Remarks