YEAR END CLOSE FY2013
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Presented by Financial Accounting & Analysis [FA&A] Team from Business Affairs
Charlotte RooksKim Jenkins
OREGON STATE UNVERSITY
Why does OSU do Y-E Accruals?
University system is under a “modified accrual basis of accounting” Cash basis throughout the year Accrue and make adjustments at year-end
Accrue revenues and expenses connected with external entities only
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Year End Accruals - ReceivablesAn asset on the balance sheetRevenue earned but not received by the close of the fiscal year
Records income in the current year
DeadlinesSIS A/R - 6/21 @ 5pm to Student Accounts in Business Affairs and 6/27 @ 5pm for direct entry by units
Non-SIS A/R - JVs due 7/8 @ 10am for period 12 entry and 7/18 @ noon for period 14
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Year End Accruals – Undistributed (Unearned) Income
A liability on the balance sheetCash received in advance for goods or services not provided by June 28 (Review 2013 deposits)
Removes income from the current yearDo not accrue for grants or contracts
Deadlines 7/8 @ 10am for period 12 entry and 7/18 @ 12pm for period 14 entry of JVs
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Year End Accruals – Accounts Payable
A liability on the balance sheetExpenses incurred for goods or services received in FY13 but not paid for in FY13
Accrue, if greater than $500Records expense in the correct fiscal year
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Year End Accruals – Accounts Payable (cont.)
Carefully follow instructions for the Year-End A/P Accrual spreadsheetDo not change column widths or any formatting
Caution: Do not process invoices with June date and include on Accrual Spreadsheet!-This would result in double counting
DeadlineOn or before July 17 @ 5pm, submit electronic Excel file to [email protected]
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Year End Accruals – Prepaid Expense
An asset on the balance sheet Cash payments made in advance for goods or services not received by June 30 - includes FY14 Travel
Only record those >$500Removes expense from current fiscal year
DeadlineReconciliation spreadsheets due 7/19 @ 5pm
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Accrual JV hintsQuick way to find the Fund of an Index
Go to FGIBDST in Banner and type index in index field to show FOAPAL elements
Remember: the index is merely a shortcut and is not a FOAPAL element
JV Text and Description Should say “FY13 Accrual”, then “FY14 Reverse Accrual” Add the same text to the description on all JV lines
All accruals must be reversed with a July FY14 transaction date Tip: Do both accrual and reversal JV at the same time. Use the Reverse Function in FGAJVCD
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Accrual Reversals (cont.)Using the reverse function in FGAJVCD:
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Enter the original JV# that you want reversed in the Copy From field. Do not enter anything in the Copy To field – Banner will generate a new JV#. Check the Reverse JV box and the Copy Text box. If you Copy Text, change your dates and text to show the reversal in FY14. Change the Transaction Date to July. Review step-by-step instructions posted on our YEC website.
Accrual Reversals (cont)
Departments are responsible for reversing:Receivables (Non-SIS)Undistributed (Unearned) IncomePrepaid Expenses
Business Affairs is responsible for reversing:Accounts Payable OSU Foundation ReceivableGrants and Contracts Accruals
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Accrual Reversals (cont.)
Reversal JVs must have the following:July date – we suggest July 1stRule code 3JV1The exact same entries as the accrual with a change in the debit and credit. Do not add new entries.
In the Document Reference Field, enter the original accrual JV#
Begin text with “FY14 Reverse Accrual of J05xxxxx …”
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Fund Balances
Determining the Fund Balance Fund Balance = Assets – Liabilities Axxxx accounts – Bxxxx accounts
Cash
+ Receivables
+ Prepaid Expenses
- Accounts Payable
- Unearned Income
= Fund Balance
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Reconcile Designated Operation (05xxxx), Service Center (09xxxx), and Auxiliary (1xxxxx) Funds
Make sure all accruals are recorded for the fund with a transaction date on or before June 30th
See FIS 1403 policies If a fund balance is negative, funding is needed from
another source and a JV must be processed following instructions found in the FIS policies.
Ensure the working capital balance requirements are met for Service Centers.
When an auxiliary has more than one fund, all 1xxxxx funds for that unit are rolled together to determine the fund balance.
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Reconcile Gift Funds
Gift Funds (Mxxxxx, and some FAxxxx) Gifts must not be spent before cash is received Cash [Account code A0901] must be positive when FY13 is closed
Monitor cash balances through year-end close using FGITBSRoJVs processed in July with June transaction dates affect FY13 cash balances
oInvoices processed in July with June transaction dates do not affect FY13 cash balances
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Reconcile Gift Funds (cont.)
If a gift fund does have a negative cash balance at year-end, move non-payroll expenses via JV to an appropriate funding source.
DeadlineJuly 15th @ 5pm to bring the fund into a positive balance.
After July 15th, expenses will be moved by OPAA to the departmental general fund index to bring cash to zero. These JVs cannot be reversed in a subsequent year.
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Reconcile OSU Foundation Funds
OSU Foundation reimbursement funds – FSxxxx, FExxxx, 438xxx, & Gift Plant funds Requests for reimbursement from OSUF need to be made
through the OSUF Reimbursement System by Thursday, June 27th @ 8pm for expenses incurred to date and to cover current cash deficits
All FY13 OSUF reimbursement system transactions must be processed by Thursday, July 18th @ Noon
Do not process accruals for the reimbursements on these funds – Business Affairs will process the receivable accrual centrally after July 19th.
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Reconcile Advance Funds
See FIS 407-07 for Departmental Advances and FIS 407-08 for Travel Advances
Make every effort to collect and settle advance funds before the end of FY13
Review your Business Center Advance Fund 00116X
Reconcile remaining balances for advances
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Reconciliation Tips / TricksReview Fund Reconciliation ResponsibilitiesoMonthly or Quarterly reviews should be done throughout the year
oView balances in FGITBSR or Data WarehouseoMake sure of the following:
Transactions are in correct fund and/or accountDebit or Credit Balance is correct (Axxxx = D, Bxxxx = C)
“Old” balances are resolved
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Reconciliation Tips / Tricks (cont.)Reconciliation Required for:
A3150 Department Advances A3151 Travel Advances A3802 A/R Rec Year End Accruals A4xxx Inventory A5901 Prepaid Expense Year End Accrual B5901 Accrued Undistributed Income All other Axxxx & Bxxxx accounts that have a balance at Year
End [Except for A0901 Cash on Hand and B0100 Invoices Payable]
Send Reconciliation Spreadsheets no later than July 19 th @ 5pm to [email protected]
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Journal Voucher Reminders
In JulyPeriod 14 (FY13) and Period 01 (FY14) are open concurrently, until Period 14 closes on Monday, July 22nd
Watch JV transaction and deadline dates carefully
During this period, it is important to begin text with “FYxx” because the JV approvers are not mind readers
Use normal rule codes such as 3JV1, 3BCx or 3GNT as appropriate
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Journal Vouchers Reminders (cont.)
Redistributions or correctionsDo all corrections in current fiscal year, Period 12Any prior year redistributions in FY14 will be reviewed for effect on financial statements. These must receive approval from the Assistant Director for FA&A and may be disapproved
No retroactive redistributions will be allowed which are between Program Codes or funding sources (Fund Types).
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Journal Vouchers - IIJVsDeadlinesSubmit paperwork to FA&A, Business Affairs by July 3rd @ noon for Period 12
IIJV paperwork for Period 14 should be submitted by July 9th @ noon
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Budget Journal Vouchers
FY13 departmental budget change JVs (1xGF, 1xGP and 1xAS rule codes) processed after June 30th need to use June transaction dateComplete and approve by Monday, July 8 at 12pm, noon
Only SWPS administrative budget offices are allowed to process FY13 budget adjustments between July 9th-18th @ noon (Period 14)
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Purchase OrdersPlan ahead for major expenditures Watch P.O. deadlinesPeriod 01 for FY14 opens Friday, June 14th for PO’s Only
Open purchase orders will be rolled into Period 01, FY14 July 17th @ 5pm Verify purchase orders are “open” – run FGROPNE Open PO’s for which final payment has already occurred
should be liquidated by JV
For more information on monitoring PO’s:
http://oregonstate.edu/fa/businessaffairs/bcr#trainfaa
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40199 Construction In ProgressAll 40199 account code balances must be zero at year-endProcess a JV to move all expenses from 40199 to 401xx or A80xx per policy, if equipment is:oCompleted and ready for use – list “in use” date in text
and follow instructions in Property Manual Exhibit #1oStill a Work-in-Progress – JV text must state
“Work-in-Progress = Y” If the 40199 expense represents an installment or prepayment, move all expenses from 40199 to A5901 Prepaid Expense – must be reversed in FY14
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Cash ReceiptsDo not accumulate receipts for one final deposit! All checks and cash should be deposited within one business day of receipt.
DeadlinesDepositing all cash - Monday, June 24th @ 4pmBulk Coin deposits - Thursday, June 27th @ NoonDeposits for cash received after June 24th ONLY -
Friday, June 28th @ Noon
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Petty CashFY13 expenses using Petty Cash must be reimbursed in
FY13 Petty Cash funds should be kept reconciled at all times Reimbursements must be processed at least quarterly See FIS 1402-10 for responsibilities
Deadlines
June 28th - Physically count cash being held as Petty Cash or in vault fund Dual custody count Someone other than the person who has physical custody of
the funds must verify the count
Reconciliation due to Cashier’s Office by July 19th @ 5pm
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PayrollProcess all labor redistributions for payroll posted through
May at the beginning of June when PYAREDS opens. An extra payroll posting for redistributions will be on June 14th.
DeadlinesBusiness Center HR/Payroll staff must have paperwork
affecting June pay entered by Friday, June 14th, 5pmAll final FY13 Labor Distribution corrections must be
entered in PYAREDS by Friday, June 28th, 12pm
Note: Prior year retroactive payroll redistributions submitted in FY14 will only be approved by OPAA when Program Codes or funding sources are not affected
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Direct Pay Invoices
Vendors such as Office Max, OSU Beaver Store, VWR, and Fisher ScientificExpenditures are charged directly to departmental accounts via an “ICxxxxxx” invoice
Vendor sets its own billing cycle
DeadlineFY13 purchases must be completed by Friday, June 14th to ensure posting in FY13
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Pcard Distribution
FA&A will stop loading Pcard transactions on June 26th @ 10am – all transactions in the Pcard module will be FY13 transactions that will need to be distributed
Deadline Pcard module processing is Friday, July 5th @ 5pm
FY14 transactions will begin loading again after Period 12 is closed on July 8th.
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Travel
Reimbursement requests for travel taken through June 30th must be submitted by Monday, July 9th @ 10am to be included in the FY13 Accounting Records – Ensure that the transaction has a June date in Banner
Final June airfare files will be reviewed by Business Affairs and only June travel dates will be posted to FY13 Airfare for travel dates July and later will be posted as July,
Period 1 FY14 transactions
Any expenses for FY13 travel that have not posted by Wednesday, July 17th should be put on the accrual spreadsheet
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Invoices
Period 12: July 1-8, for all funds Goods or services received on or prior to June 30thoProcess the invoice in FY13 using a June transaction date
oDocuments must be completed and all documents/image files to the Final Approval Unit by Monday, July 8th @ 10am. Business Centers must complete final approvals by Monday, July 8th @ Noon.
Queues must be completely cleared of all FY13 documents.
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Invoices (cont.)Period 14: July 12th for Fixed Assets
Using 4xxxx Account Codes or 8xxxxx Plant Funds Goods or services received on or prior to June 30th
that must be capitalized Process the invoice in FY13 using a June transaction date Have all documents/image files to the Final Approval Unit
Deadline Friday, July 12th @ 5pm
Necessary to allow Facilities and Fixed Assets sufficient processing time for capitalization and reconciliation.
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Invoices (cont.)
Period 14: July 9-17, for all funds Goods or services received on or prior to June 30
Continue processing each invoice in FY13 by using a June transaction date.
Caution: Period 01 FY14 is open at this time – watch dates! All invoices must be entered and completed, with the documents or
images to the Final Approval Unit by Tuesday, July 16th, 5pm
Final Approval must be completed by Wednesday, July 17th, 12pm, noon.
Queues must be completely cleared of all FY13 invoices.
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Invoices (cont.)Reminder:
Do not prepay for supplies, services, memberships, or subscriptions that begin on or after July 1, 2013.
Hold these invoices and process in Period 01, FY14 - July 1st or later
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Deadlines & Instructions
Chronological list of deadlines and instructions can be found on our YEC website:http://oregonstate.edu/fa/businessaffairs/analysisreporting/yearend.phpPay close attention to the Major Deadlines for year-end close
OSU Foundation - http://www.osufoundation.org/
Office of Budget and Fiscal Planning - http://oregonstate.edu/budget/
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Contact Information
General YEC Questions
Charlotte Rooks, 7-5422
Kim Jenkins, 7-3792
Stephanie Smith, 7-1825
Angelica Smith, 7-6047
Mark Fryman, 7-0624
A/P-POs-EncumbrancesRaeLee Aguilar, 7-0635PcardsRose Hamilton, 7-0650
Fixed Assets
Janna Storm, 7-4084AutopaysSiora Arce, 7-0637
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E-MAIL [email protected]@[email protected]@[email protected]
Grants, Gift, and Foundation FundsOPAA, 7-4711
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