Transcript Year-End Closing of the Books

Year-End Closing of the Books
2013-2014
Overview of Closing:
Why?
• GAAP – Generally Accepted Accounting Principles
• End of the business cycle:
• State sessions end in June
• UO activity begins with summer session (excluding Law)
• Federal (GASB) & State (OUS) requirements
• OUS has a number of mandated deadlines
• Snapshot in time
• YTD activity (FWIBUDG) and year-end balances (FGITBAL)
are used to monitor, project, budget, evaluate performance,
perform system audits, analyze anomalies, audit, compare and
contrast with other years/funds/institutions etc…
Why?
Overview of Closing:
• Annual reporting – internal & external
• Rolled into OUS and State financial statements
• Used by stakeholders such as general public, federal agencies,
SBHE, federal F&A rate setters, accrediting agencies, NCAA,
creditors and bond services, etc…
• Auditors – internal & external
• Test for accuracy, consistency, & reliability of systems including
our policies & procedures
• Help us establish best practices
• Includes: OUS Internal Audit, DHHS, Naval Research, NCAA,
Clifton Larson Allen (financial statement & A-133), Secretary of
State, etc…
• Establish beginning balances for FY15
What?
Overview of Closing
Recording activity that takes place between:
July 1, 2013 and June 30, 2014
• Transactions must be recorded in the fiscal year that the
event takes place, not when it is processed
• Includes accruals posted by July 22, 2014
• Applies to all funds in FIS regardless of the source
What?
Overview of Closing
• Close fiscal period 12 and open fiscal period 14
• Fiscal period 12:
• Record June and remaining FY14 activity
• Fiscal period 14:
• Review and post necessary corrections/accruals
• Departments have first week
• BAO/BRP/SPS have additional week
• Close fiscal period 14 (FY14)
• OUS extracts our data & populates the HFM System
• UO reports any FY14 transactions to OUS through the
date financial statements are issued in November
Balance Sheet Account Codes
(FGITBAL – General Ledger)
A = Assets
B = Liabilities
C = Control Accounts (Income Statement Totals)
D = Fund Balance
E = Fund Additions
F = Fund Deletions
When FP12 is closed and FP14 is opened, actual
income/expense account balances from FY14
FP12 are closed into FY15 fund balance.
Income Stmt/Balance Sheet
FWIBUDG
FGITBAL
Revenue
Income Stmt
0XXXX
Balance Sheet
C0010
Labor
General
Expense
Transfers
1XXXX
2XXXX8XXXX
9XXXX
C2010
C1010
Fund Bal
C5010
D0010
FY15 Beginning Balances
• Before period 14 is opened, FY15 balances only
include FY15 transactions
• When period 14 is opened, FY14 period 12
ending balances become FY15 beginning
balances (recorded in FP00)
• Then, each entry posted to FY14 during period14
has a mirror entry in FY15 FP00
Subsidiary Ledgers
• Provide a greater amount of detailed information
• FIS Examples – Student A/R, Grants Billing
Module, Fixed Asset System, Accounts Payable
• Complimentary (shadow) systems are often used
by departments as subsidiary ledgers (examples –
QuickBooks, Excel, Access)
• Subsidiary ledgers must be reconciled to
Banner FIS
• The FIS general ledger is the official source of
financial information for the UO
Subsidiary Ledger
General ledger account codes require supporting
detail schedules reconciled to Banner FIS.
Commonly used accounts include:
A3103 – Misc A/R
A3106 – Sundry Receivable
A3702 – AR from Affiliated Foundation
A4002 – Organized Storeroom Inventories
A5030 – Misc Prepaid Expense
A5901 – Prepaid Expense Year End Accrual
B0101 – Year End A/P Accrual
B0190 – Received Items Payable
B5802 – Misc Undistributed Income
B5901 – Accrued Undistributed Income
Dates to Remember:
• June 6 June regular payroll deadline
• June 17 Contact BAO for help accruing department
non-student accounts receivable
• June 30 Last day to submit student receivables
• June 30 Last day to deposit cash by 3:00 p.m.
• June 30 Goods and services must be received by this
date to pay with FY14 funds
• July 2
Last day to submit payroll form (PAA)
for FY14
• July 7
Last day to direct input Inter-Institutional JVs
(Charts B-K) for Period 12
**(Items input in July require a 30-JUN-2014 transaction date)**
Dates to Remember:
• July 7 Last day to submit upload JVs for period 12
(Z documents through AppWorx)
• July 8 Last day to liquidate encumbrances that shouldn’t
roll to FY15
• July 8 Last day to submit budget changes for Period 12
• July 8 Last day to input an invoice for Period 12
• July 8 Last day to input JVs for Period 12
• July 8 Period 12 Close (5:00 p.m.)
• July 9 Period 12 reports are available
**(Items input in July require a 30-JUN-2014 transaction date)**
Dates to Remember:
• July 8 Last day to direct input Inter-Institutional
JVs (Charts B-K) for Period 14
• July 15 Last day to input JVs for Period 14
• July 15 Last day to input budget changes for Period 14
• July 15 Last day to input an invoice for Period 14
• July 15 Campus lock out (5:00 p.m.)
For assistance with FY14 transactions after the lock-out,
contact BAO General Accounting
**(Items input in July require a 30-JUN-2014 transaction date)**
Dates to Remember:
• July 16 Detail and aging reports due for all
non-SIS accounts receivable
• July 18 Last day to submit IIJVs to BAO
• July 22 Last day to submit year-end AP Reports
• July 22 Period 14 Close (FY14)
• July 23 Period 14 reports are available
**(Items input in July require a 30-JUN-2014 transaction date)**
Expenditure Cut-Off Guidelines
• According to Generally Accepted Accounting
Principles (GAAP), accrual accounting requires
expenditures to be charged to the fiscal year and
period in which goods are received or services are
performed, regardless of when budget or cash is
available.
• For goods and services received by June 30 for
which vendor invoices have not been received as of
July 22, fill out an AP Report and forward it to BAO
Financial Services
• http://ba.uoregon.edu/sites/ba/files/forms/yearendap.
pdf
Year End Accruals
Prepaid Expense - A5901
Expenses for future fiscal years that are paid prior to June 30, 2014 should be
coded to A5901. Post a reversing journal voucher with a transaction date in the
future fiscal year and period that the goods or services will be received. This
journal voucher may be processed at the same time, if the future period is open.
For amounts posted as expense in FY14, that should be prepaid expenses for future years:
Debit
Department Index
A5901 - Prepaid Expense
Credit
Department Index
Expense Account Code - ex. 39515 Out-St Travel
To remove the prepaid and recognize the expense in the future year:
Debit
Department Index
Expense Account Code - ex. 39515 Out-St Travel
Credit
Department Index
A5901 - Prepaid Expense
Year End Accruals
Accrued Income - B5901
Revenue must be credited to the fiscal year that the goods or services will be
provided. Revenue for future fiscal years that is received prior to June 30, 2014
should be coded to B5901. Post a reversing journal voucher with a transaction
date in the future fiscal year and period that the goods or services will be
provided. This journal voucher may be processed at the same time, if the future
period is open.
For amounts posted as revenue in FY14, that should be prepaid revenue for future years:
Debit
Department Index
Revenue Account Code - ex. 01102 Nonresident
Undergrad Tuition
Credit
Department Index
B5901 - Accrued Undistr Income
To remove the prepaid and recognize the revenue in the future year:
Debit
Department Index
B5901 - Accrued Undistr Income
Credit
Department Index
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 all receivables from entities that are
external to OUS institutions
Non-SIS Accounts Receivable
Dating FIS Documents
• After June 30th, any
document input for
FY14 must have the
transaction date
changed to
30-JUN-2014
This includes:
• Budget changes
• Invoices
• JVs
• Travel
reimbursements
Encumbrances
• All open encumbrances (except zero balance
items) will be rolled into FY15 Banner FIS
operating ledger
• Liquidate any encumbrances that you do not want
to roll into FY15 before the close of period 12
(July 8th)
Late FY14 and Subsequent Event
Reporting
Report FY14 activity and subsequent events to
BAO Financial Services as follows:
• July 16 - 22 – for posting into Banner FIS during
lock-out
• July 23 - September – to be included in OUS
Financial Statements
• October - November – to be included in State of
Oregon Financial Statements
Reporting Property Not Owned by
the UO
• To provide required information for leased asset
year-end reporting
• To provide adequate insurance coverage
• FWIFLST – Banner query form to review
inventory records
• Leased Property (LE/LP)
• Loaned Property (LN)
Real Property
• Performed in conjunction with BAO and Capital
Construction Department
• Capitalization of construction in progress (CIP)
expenses
• Conversion of completed projects into the Banner
FIS real property records
• Componentization of specified buildings used
extensively for research
FY15
• Governance change
• UO will be separate entity with different tax
identification number
• Adopting all FY14 policies
• IIJVs will no longer be utilized
• Internal revenue account codes will be only for UO
departments
• Moving away from Oregon State Treasury
• Facilities and administrative rate proposal
• Additional Cognos IDR reporting available
BAO Financial Services Contacts
• Accounting and Financial Management Contacts
http://ba.uoregon.edu/staff/actg-and-finl-mgmt-contacts
• Cost Accounting, Financial Analysis, and Reporting
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
Useful Links
Year End COB Instructions and Deadlines 2013-2014
http://ba.uoregon.edu/staff/year-end-close
OUS Financial Statements
http://www.ous.edu/dept/cont-div/accounting-reporting/annualfinreport
Closing Remarks