Transcript Finances overview Autumn 2010 - University of Gloucestershire

University of Gloucestershire
Year End Financial Processes
Year ended 31 July 2012
Kate Walton - Financial Controller
Sarah Wightman - Procurement & Contracts Manager
Abi Aversa - Management Information Accountant
1
Accounts for year ended 31 July
2012 (2011/12)
• Overriding requirement to reflect a ‘True and
Fair’ view
• Council make certain statements (pledges) in
the accounts setting out their responsibilities
• VC and Chair of Council sign ‘agreement’
• Rely on representations from Director of
Finance, Internal and External Audit.
2
Council confirms it has ensured that:
• Accounting policies are applied consistently
• Judgements and estimates are reasonable and
prudent
• Accounting policies have been followed, with
any material departures being disclosed and
explained
• Accounts prepared on a ‘going concern’ basis
3
Council has taken reasonable steps to:
• Ensure funds used for purposes they were
given
• Ensure that appropriate financial and
management controls in place to safeguard
funds
• Safeguard assets and prevent and detect fraud
• Secure economical, efficient and effective
management of University resources and
expenditure
4
True and Fair View
• No legal definition – but a judgement
• Set out appropriate Accounting Policies
(approved by F&GP and Audit Committee)
• Compliance with Accounting Policies will
usually result in ‘True and Fair’ view
5
Recognition of Expenditure
• Expenditure is recognised in the year to which it relates
Extract from Year End Guidance Notes:
• Normal accounting rules require that goods and
services received on or before 31st July 2012 count as
expenditure within the current financial year. As part of
preparing the annual accounts for the University, it is
incumbent upon all staff to ensure that normal
accounting rules are followed wherever possible.
It is an area to which the external auditors pay
particularly close attention during their audit of the
University’s accounts.
6
Action for Buyers on Current Outstanding Orders
• Run the 'My Open Purchase Order' report in Agresso
• Review the reported orders in detail and depending
on the circumstances, take the following actions:
• where the order is legitimately outstanding, no
action is required, or
• where goods or services on the order have been
received, enter the details on a GRN, or
• if the whole order features goods or services that
have not been received and are no longer
required, close the order, or
7
Action for Buyers on Current Outstanding Orders cont
• where the order is partially complete in that it has
a number of lines, some already received and
some not received, proceed as follows:
– where the items not received are still required
and that part of the order is legitimately
outstanding, no action required, or
– where the items not received are no longer
required, close the line item and close the
order
• where the order is completely or partially
outstanding on Agresso yet the supplier's invoice
has already been processed please contact your
accountant who will arrange to take the
appropriate action.
8
Current Year Expenditure on Goods and Services
For expenditure to be recognised in the current financial year
1.
2.
3.
4.
5.
Raise the order as normal, and
The goods and services must be ordered for delivery within
the current financial year, and
The goods and services must be physically delivered into
the care of the University on or before the 31 July, and
The delivery of the goods and services must be recorded by
way of GRN on Agresso no later than 31st July, and
The GRN raised on Agresso must display a delivery date of
on or before the 31 July
9
Forms for use at Year End
Expenditure
• Form ACCRUEXP Accrued Expenditure for
items which have been received but for which
payment has not been made before 31st July
• Form PREPAYEXP Prepaid Expenditure for
goods or services paid for during the year but
will not be received until after 31st July 2012
10
Some Expenditure Examples:
1. Annual contract; paid Quarterly (May, Aug,
Nov, Feb) (1 qtr 11/12; next 3 qtrs 12/13)
2. Large delivery 30 July; paid 30 Aug
3. Annual contract: paid 100% in advance in
May (3 months 11/12; 9 months 12/13)
4. Large delivery 15 Aug; paid in advance on 15
July
5. Large delivery 15 Aug; paid 30 Aug
11
1. Annual contract; paid Quarterly (May, Aug,
Nov, Feb) (1 qtr 11/12; next 3 qtrs 12/13)
• 1st qtr paid in May therefore already
recognised in 11/12
• Subsequent costs relate to 12/13, and not yet
paid, so no further action required
• Amounts should only be GRNd when next
payment due
• EG – rental for gas cylinders
12
2. Large delivery 30 July; paid 30 Aug
• Delivery within Financial Year, therefore costs
to be reflected in 11/12
• Order already raised + GRN on 30 July
• Cost should be automatically ‘Accrued’ by F&P
• If not, would need to complete
Form ACCRUEXP to bring costs into correct
year
• EG - PC’s or other equipment
13
FORM: ACCRUEXP
UNIVERSITY OF GLOUCESTERSHIRE
ACCEXP
Prepared By
Abi Aversa
Date
Authorised
By
CREDITORS & ACCRUALS 2011/2012 - ACCRUED EXPENDITURE
Date
Internal Reference No.*
UIL-PEXP001
Journal Number (F&P)
This form should be used where items or services have been received in 2011/2012 but where no invoice was received/payment made until after the year end.
GRN No or
Reference
Supplier Name
Date
Account Code Credit/De Purchase
bit
Order
Number
Cost
Centre
Project
Category 3 Work Order Category 5 Category 6 Category 7 Tax Code Tax System
Value £
Verified by
F&P
1
111111 Dawsons
31/07/12
3021
D
60700
UIL
UIL
UIL
JF10E
5,000.00
2
222222 WH Smith
31/07/12
3021
D
60900
UIL
UIL
UIL
JF10E
10,000.00
3
31/07/12
Dawsons
31/07/12
9510
C
60700
UIL
UIL
UIL
(5,000.00)
2 222222
WH Smith
31/07/12
9510
C
60900
UIL
UIL
UIL
(10,000.00)
31/07/12
Ready to
Post
D
1 111111
3
F&P Use Only
F & P Comment
C
-
* Please assign a unique reference number to each Form, which should follow on from the last in number sequence. See guidance sheet for further information.
14
Prepayments
• Where a service (for up to 5 years) is ordered and
paid for in the current financial year, an accounting
adjustment is required to allocate the costs to the
relevant future years
• To allocate the costs to future years contact your
Faculty or Central Services Accountant who will make
the necessary adjustment
15
3. Annual contract: paid 100% in advance in
May (3 months 11/12; 9 months 12/13)
• Full payment of £12,000 in May, therefore
already in 11/12 actuals
• Only ¼ relates to 11/12 – i.e £3,000
• Need to ‘Pre-Pay’ £9000 into 12/13 using
Form PREPAYEXP
• EG – software licences
16
4. Large delivery 15 Aug; paid in
advance on 15 July
• Cost incurred in earlier year, but activity
correctly falls into following year
• Order in July; Pay in July; received Aug
• Need to complete Form PREPAYEXP
• E.g: hire of Racecourse venue for graduation.
Usually pay in May, for ceremony in
November.
17
FORM: PREPAYEXP
UNIVERSITY OF GLOUCESTERSHIRE
PREPAYEXP
Prepared By
DEBTORS & PREPAYMENTS 2011/2012 - PREPAID EXPENDITURE
Abi Aversa
Date
Authorised By
Date
Internal Reference No.*
Journal Number (F&P)
This form should be used where services or items (not included in any stock count) have been invoiced/paid for in 2011/2012 but the items/service will not be utilised/received
until the next financial year (2012/2013).
Purchase Invoice Supplier Name
Number
Date
9999999 Adobe
31/07/12
3002
C
60509
UII
UII
UII
(9,000.00)
31/07/12
3150
C
70000
PAA
CENT
PAAXAY12
(50,000.00)
1
2
22222 Racecourse Hire
3
Nominal Credit/D Purchase Cost Centre
Code ebit
Order
Number
31/07/12
C
Project
Category 3 Work Order Category 5 Category 6 Category 7
Tax Code Tax System
Value £
Verified by
F&P
1 9999999
Adobe
31/07/12 9615
D
60509
UII
UII
UII
9,000.00
2 22222
Racecourse Hire
31/07/12 9615
D
70000
PAA
CENT
PAAXAY12
50,000.00
31/07/12
D
3
F&P Use Only
F & P Comment
Ready to Post
-
* Please assign a unique reference number to each Form, which should follow on from the last in number sequence. See guidance sheet for further information.
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Expenditure on Goods and Services
against Next Year's Budget
1. Raise the order as normal, and
2. The goods and services must be ordered for
delivery in the next financial year, and
3. The GRN must be raised for a delivery date on or
after 1 August
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5. Large delivery 15 Aug; paid 30 Aug
• Order in July; GRN Aug; Payment Aug
• Costs properly fall into following year (12/13)
therefore NO action required
No accrual
No pre-payment
20
Recognition of Income
• Income is recognised in the year to which it
relates
• Normal accounting rules require that where work has
been carried out on or before 31st July 2012 the income
generated will be included within the current financial
year.
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Forms for use at Year End
Income
• Form ACCRUINC Accrued Income for sales
invoices not issued before 31st July for work
completed in 2011/2012
• Form DEFINC Deferred Income for income
received in 2011/2012 but which all or part
relates to the next (2012/2013) financial year
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Some Income Examples:
1. Project completed July 2012; invoiced August
2. Project all invoiced in 11/12 but half work
carried out 12/13
23
1. Project carried out over the 6 months ending July
2012 and sales invoice raised in August
• Invoice raised in August, therefore not
included in 2011/12 actuals
• All of project undertaken in 2011/12 so
income actually earned in that year
• Need to complete Form ACCRUINC to include
income in correct year 2011/12
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FORM: ACCRUINC
UNIVERSITY OF GLOUCESTERSHIRE
ACCRUINC
Prepared By
DEBTORS & PREPAYMENTS 2011/2012 - ACCRUED INCOME
Abi Aversa
Date
Authorised By
Date
Internal Reference No.*
Journal Number (F&P)
This form should be used to account for late sales invoices, where income relating to 2011/2012 is stil to be invoiced to/received from the external source.
Reference
Number
1
Customer Name
Defra
Date
31/07/12
Nominal
Code
1510
Credit/D Purchase Cost Centre Project
ebit
Order
Number
C
CCRU
CM05
Category 3 Work Order Category 5 Category 6 Category 7 Tax Code Tax System Value £
Verified by
F&P
CCRU
(15,000.00)
CCRU
15,000.00
2
31/07/12
C
3
31/07/12
C
31/07/12 9610
D
2
31/07/12
D
-
3
31/07/12
D
-
1
Defra
CCRU
CM05
F&P Use Only
F & P Comment
* Please assign a unique reference number to each Form, which should follow on from the last in number sequence. See guidance sheet for further information.
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Ready to Post
2. Project carried out over 6 months starting May
2012; sales invoice raised in July (paid in August)
• Invoice raised for £20,000 in July covering whole
project, therefore already included in 2011/12
actuals
• Second half of project undertaken in 2012/13 so
£10,000 of income earned in 2011/12 and
£10,000 earned in 2012/13
• Need to complete Form DEFINC to defer forward
£10,000 of income for 2012/13
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FORM: DEFINC
UNIVERSITY OF GLOUCESTERSHIRE
DEFINC
Prepared By
CREDITORS & ACCRUALS 2011/2012 - DEFERRED INCOME
Abi Aversa
Date
Authorised
By
Date
Internal Reference No.*
Journal Number (F&P)
This form should be used where income has been received in 2011/2012 but which all or part relates to the next financial year (2012/2013). That part that relates to the next
financial year should be deferred forward.
GRN No or
Reference
Supplier Name
Date
Account Code Credit/ Purchase
Debit
Order
Number
Cost
Centre
Project
1
Gloucestershire City Council
31/07/12
1611
D
CTS
XXAGA
2
Academy of Finance
31/07/12
1433
D
CKO
XXAGA
3
31/07/12
D
4
31/07/12
D
Category 3 Work Order Category 5 Category 6 Category 7 Tax Code Tax System
TADS
SELF
KILPPAF
Value £
Verified by
F&P
F&P Use Only
F & P Comment
Ready to Post
10,000.00
2012/13
30,000.00
1
Gloucestershire City Council
31/07/12
9520
C
CTS
XXAGA
TADS
(10,000.00)
2
Academy of Finance
31/07/12
9520
C
CKO
XXAGA
KILPPAF
(30,000.00)
3
31/07/12
C
-
4
31/07/12
C
-
* Please assign a unique reference number to each Form, which should follow on from the last in number sequence. See guidance sheet for further information.
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Other Procedures
• Stock Take
•
•
•
Departments holding consumable stocks or goods for resale must undertake a
supervised physical count on 31 July
Details to be included as on year end guidance
All stock sheets to be returned to Kate Walton in F&P by 3 August
• Inventories
•
Inventory forms confirming inventory updates to be returned to Victoria Watt in
F&P by 31 August. Due to the reorganisation this year, it is essential that all
inventories are reviewed before the year end Form INV
• Purchase Cards
•
•
•
Statements will be sent out by 30 July
Transaction logs need to be returned to Amanda Evans in F&P by 7 August
Any purchases relating to 2012/13 to be notified to Faculty Accountant by 8
August
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Other Procedures cont
• Personal Expenses
•
All personal expenses not submitted by 15 July should be notified to your Faculty
Accountant by 3 August to be included in accruals Form ACCRUEXP
• Petty Cash
•
Petty Cash should be counted and the Cash form completed and returned to Kate
Walton in F&P by 3 August Form CASH
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FORM: INV
University of Gloucestershire
Audit 2012 – Guidance to end of year processes
FORM INV
INVENTORY CONFIRMATION SHEET
Confirmation statement
Response
All items purchased during the year have been added to the
Faculty/Department inventory, held on the Z drive
Yes/No
All items disposed of during the year have been noted as such
Yes/No
Date inventory last updated
Signed:
Date:
Print Name:
Please ensure that inventory is maintained throughout the year as and when items are
purchased or disposed.
st
The Inventory Confirmation Sheet should be returned by the 31 August to Finance & Planning
(Victoria Watt, Finance & Planning, Waterworth Building, Park Campus).
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FORM: CASH
University of Gloucestershire
Audit 2012 – Guidance to end of year processes
FORM CASH
PETTY CASH COUNT
ST
FINANCIAL YEAR ENDED 31 JULY 2012
COUNT FOR DEPARTMENT:……………………………………………………………………………………
COINS
£
1P
2P
5P
10P
50P
100P
NOTES
£5.00
£10.00
£20.00
£50.00
TOTAL CASH
UNRECORDED VOUCHERS
TOTAL CASH BOX
REIMBURSEMENT REQUEST
TOTAL FLOAT
Checked by:
Date:
Approved by
Date:
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Finance & Planning Contacts
Assistance with forms or other queries around the end-of-year processes can be obtained in
the first instance from the appropriate Faculty or Central Services Accountants:
Faculty Accountants:
Ahmed Ginwalla
Faculty Accountant, Oxstalls
5139
Rashieda Hosein
Faculty Accountant, The Park
4357
Central Services Accountants:
Rachel Davidson and
Tom Walker
Central Services Accountants,
Waterworth Building, The Park
4243
4387
Helen Wiseman
Faculty Accountant, FCH
4943
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Finance & Planning Contacts
Please send completed accruals and
prepayment forms and refer any general
queries to:
Purchase Card Statements should be
returned to:
Abi Aversa
Management Information Accountant,
Waterworth Building, The Park
Tel: 4386
Amanda Evans
Deputy Payments Manager,
Waterworth Building, The Park
Tel: 4228
Inventory Confirmation Sheets should be
sent to:
Stock sheets and Petty Cash forms should be
returned to:
Victoria Watt
Principal Accountant,
Waterworth Building, The Park
Tel: 4384
Kate Walton
Financial Controller
Waterworth Building, The Park
Tel: 4237
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Further Information and a copy of the
presentation is available on the intranet at:
http://resources.glos.ac.uk/departments/
financeplanning/financeacc/audit/index.cfm
Any Questions
34