Year End Close FY2013

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OREGON STATE UNVERSITY. Year End Close FY2013. Presented by Financial Accounting & Analysis [FA&A] Team from Business Affairs Charlotte Rooks Kim Jenkins. Why does OSU do Y-E Accruals?. University system is under a modified accrual basis of accounting Cash basis throughout the year - PowerPoint PPT Presentation


<p>Year End Close FY2005</p> <p>Year End Close FY20131Presented by Financial Accounting &amp; Analysis [FA&amp;A] Team from Business Affairs</p> <p>Charlotte RooksKim JenkinsOREGON STATE UNVERSITY1Welcome to year end close 2013. Introductions. Today, we will discuss year-end close procedures and their deadlines. The accounting work we do is the basis for OSUs financial statements so it is critical to represent all expenses and revenues accurately in the year in which they occur. OSUs financials feed into the financials for OUS which then become a part of the financials for all state agencies within Oregon. The state financial statements are put together by the Department of Administrative Services (DAS).</p> <p>Talk about and show: Major Deadlines, Y-E Instructions, and Financial Statements.Why does OSU do Y-E Accruals?University system is under a modified accrual basis of accountingCash basis throughout the yearAccrue and make adjustments at year-end</p> <p>Accrue revenues and expenses connected with external entities only</p> <p>2</p> <p>2During the year we account for revenues and expenses as they occur on a modified accrual basis. For accuracy of the financial statements at the end of the year, we must use a full accrual basis where we move the revenues and expenses into the fiscal year where the event occurs. We this for items greater than the materiality threshold of $500.</p> <p>Cash is deposited to the Treasury at the end of business on the last working day of June. This year that will be the 28th. Year End Accruals - ReceivablesAn asset on the balance sheetRevenue earned but not received by the close of the fiscal yearRecords income in the current year</p> <p>DeadlinesSIS A/R- 6/21 @ 5pm to Student Accounts in Business Affairs and 6/27 @ 5pm for direct entry by unitsNon-SIS A/R - JVs due 7/8 @ 10am for period 12 entry and 7/18 @ noon for period 1433To ensure the accuracy of the assets on the balance sheet we accrue Accounts Receivable such as either student AR or non-student AR (external customers we have delivered goods or services to by the close of the fiscal year (June 30th) but have not received the revenue. An Accounts Receivable accrual is booked in our accounting system to ensure that revenues are recorded in the year in which they were earned.</p> <p>SIS = Student Information SystemYear End Accruals Undistributed (Unearned) IncomeA 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</p> <p>Deadlines 7/8 @ 10am for period 12 entry and 7/18 @ 12pm for period 14 entry of JVs44Here we basically have the reverse of what we just discussed. Undistributed or unearned income is a balance sheet liability representing cash received in advance of earning the revenue. An example is a room rental deposit received for an event that occurs after June 30th.Year End Accruals Accounts PayableA liability on the balance sheetExpenses incurred for goods or services received in FY13 but not paid for in FY13Accrue, if greater than $500Records expense in the correct fiscal year5</p> <p>5Accounts payable are a liability on the balance sheet. If you have received goods or services and the invoice was not paid until after June 28th, accounts payable is booked in the accounting system to ensure that expenses are recorded in the year in which they occurred.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</p> <p>DeadlineOn or before July 17 @ 5pm, submit electronic Excel file to</p> <p>66Year End Accruals Prepaid ExpenseAn asset on the balance sheet Cash payments made in advance for goods or services not received by June 30 - includes FY14 TravelOnly record those &gt;$500Removes expense from current fiscal year</p> <p>DeadlineReconciliation spreadsheets due 7/19 @ 5pm77Prepaid expenses are a balance sheet asset and represent payments for goods or services that have not been received by June 30th. For financial statement purposes, expenses are recorded only after an activity actually happens. Examples of prepaid expenses are registrations for conferences occurring after June 30th or airline tickets and hotel deposits paid for travel that happens after June 30th.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 elementsRemember: the index is merely a shortcut and is not a FOAPAL elementJV Text and DescriptionShould say FY13 Accrual, then FY14 Reverse AccrualAdd the same text to the description on all JV linesAll accruals must be reversed with a July FY14 transaction dateTip: Do both accrual and reversal JV at the same time.Use the Reverse Function in FGAJVCD</p> <p>8FOAPAL = Fund, Org, Account, Program, Activity, and Location8Accrual Reversals (cont.)Using the reverse function in FGAJVCD:9</p> <p>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.9Accrual Reversals (cont)Departments are responsible for reversing:Receivables (Non-SIS)Undistributed (Unearned) IncomePrepaid Expenses </p> <p>Business Affairs is responsible for reversing:Accounts Payable OSU Foundation ReceivableGrants and Contracts Accruals10Accounts Payable &amp; OSUF Receivable handled by Financial Accounting &amp; Analysis. OPAA-Office of Post Award Administration does the Grant and Contract Accruals.10Accrual 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 1111Fund BalancesDetermining the Fund Balance Fund Balance = Assets LiabilitiesAxxxx accounts Bxxxx accountsCash+ Receivables+ Prepaid Expenses- Accounts Payable- Unearned Income= Fund Balance12</p> <p>Besides the equation noted above, you could use FGITBSR or the Balance Report in Data Warehouse under the General Ledger. Remember, Data Warehouse is not real time as it only posts once each night.12Reconcile Designated Operation (05xxxx), Service Center (09xxxx), and Auxiliary (1xxxxx) FundsMake sure all accruals are recorded for the fund with a transaction date on or before June 30thSee FIS 1403 policiesIf 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.13There should be no negative fund balances when we close period 14. Be especially aware of designated ops (05xxxx), Service Center (09xxxx), and/or Auxiliary (1xxxxx) fund balances. Check the balances for all of the funds where you are the responsible unit.</p> <p>Working capital = current assets minus current liabilities. It does not include fixed assets or depreciation.</p> <p>An example when an auxiliary has more than one fund UHDS has 8 funds such as 103001 Orchard Court Housing or 101008 Resident Hall Major Project Fund. Individually one of these might be a negative balance; however, added together they could likely be positive.</p> <p>Only source of funding for negative auxiliary fund balance is a loan from another Auxiliary Fund.13Reconcile Gift FundsGift Funds (Mxxxxx, and some FAxxxx)Gifts must not be spent before cash is receivedCash [Account code A0901] must be positive when FY13 is closedMonitor cash balances through year-end close using FGITBSRJVs processed in July with June transaction dates affect FY13 cash balancesInvoices processed in July with June transaction dates do not affect FY13 cash balances14Are you responsible for gift funds?14Reconcile 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.</p> <p>15</p> <p>15Reconcile OSU Foundation FundsOSU Foundation reimbursement funds FSxxxx, FExxxx, 438xxx, &amp; Gift Plant fundsRequests 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 deficitsAll FY13 OSUF reimbursement system transactions must be processed by Thursday, July 18th @ NoonDo not process accruals for the reimbursements on these funds Business Affairs will process the receivable accrual centrally after July 19th.1616Reconcile Advance FundsSee FIS 407-07 for Departmental Advances and FIS 407-08 for Travel AdvancesMake every effort to collect and settle advance funds before the end of FY13Review your Business Center Advance Fund 00116X Reconcile remaining balances for advances17Departmental Advances should be settled by the 15th of the month following the completion of the approved use. Advances are intended to be used within 90 days of receipt.</p> <p>Travel Advances should be settled within 45 days of the completion of the trip.17Reconciliation Tips / TricksReview Fund Reconciliation ResponsibilitiesMonthly or Quarterly reviews should be done throughout the yearView balances in FGITBSR or Data WarehouseMake sure of the following:Transactions are in correct fund and/or accountDebit or Credit Balance is correct (Axxxx = D, Bxxxx = C)Old balances are resolved18</p> <p>18Reconciliation Tips / Tricks (cont.)Reconciliation Required for:A3150 Department AdvancesA3151 Travel AdvancesA3802 A/R Rec Year End AccrualsA4xxx InventoryA5901 Prepaid Expense Year End AccrualB5901 Accrued Undistributed IncomeAll other Axxxx &amp; Bxxxx accounts that have a balance at Year End [Except for A0901 Cash on Hand and B0100 Invoices Payable]</p> <p>Send Reconciliation Spreadsheets no later than July 19th @ 5pm to BAFF.Accounting@oregonstate.edu19Journal Voucher RemindersIn JulyPeriod 14 (FY13) and Period 01 (FY14) are open concurrently, until Period 14 closes on Monday, July 22ndWatch JV transaction and deadline dates carefullyDuring this period, it is important to begin text with FYxx because the JV approvers are not mind readersUse normal rule codes such as 3JV1, 3BCx or 3GNT as appropriate</p> <p>2020Journal 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&amp;A and may be disapprovedNo retroactive redistributions will be allowed which are between Program Codes or funding sources (Fund Types). 2121Journal Vouchers - IIJVsDeadlinesSubmit paperwork to FA&amp;A, Business Affairs by July 3rd @ noon for Period 12IIJV paperwork for Period 14 should be submitted by July 9th @ noon</p> <p>22</p> <p>IIJVs = Inter-Institutional transactions between OSU and other OUS institutes. These take longer processing time since they need to go through OUSs Banner system before routing to the targeted university.22Budget Journal VouchersFY13 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</p> <p>OnlySWPS administrative budget offices are allowed to process FY13 budget adjustments between July 9th-18th @ noon (Period 14)2323Purchase OrdersPlan ahead for major expendituresWatch P.O. deadlinesPeriod 01 for FY14 opens Friday, June 14th for POs Only</p> <p>Open purchase orders will be rolled into Period 01, FY14 July 17th @ 5pmVerify purchase orders are open run FGROPNEOpen POs for which final payment has already occurred should be liquidated by JV</p> <p>For more information on monitoring POs:</p> <p>24Period 01 for FY14 is open for Purchase Orders only. Watch your transaction date when entering a PO for FY14.Take time to review your open purchase orders if you have not already done so. You can run FGROPNE (the open encumbrance report) by putting your ONID ID in the User ID field to give you a report on open POs under your user name.2440199 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:Completed and ready for use list in use date in text and follow instructions in Property Manual Exhibit #1Still a Work-in-Progress JV text must state Work-in-Progress = YIf the 40199 expense represents an installment or prepayment, move all expenses from 40199 to A5901 Prepaid Expense must be reversed in FY1425When 40199 expenses are transferred to 401xx or A80xx, a new asset record is created in the Fixed Asset Module. Creating a new asset requires extra processing in the Fixed Asset Module Please clear all 40199 balances as soon as possible.</p> <p>25Cash 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</p> <p> 26</p> <p>26Cash in the bank at the Treasury is measured at the end of business on June 28th. If you have cash that is not deposited it will not be accounted for correctly in the financial statements. Petty CashFY13 expenses using Petty Cash must be reimbursed in FY13Petty Cash funds should be kept reconciled at all timesReimbursements must be processed at least quarterlySee FIS 1402-10 for responsibilitiesDeadlinesJune 28th - Physically count cash being held as Petty Cash or in vault fundDual custody countSomeone other than the person who has physical custody of the funds must verify the count</p> <p>Reconciliation due to Cashiers Office by July 19th @ 5pm2727Dual custody means at least two people are present and vouch for the count. Remember: the count should be performed by someone other than the person who has physical custody of the funds. Be sure to document and reconcile any receipts that have not been reimbursed.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 Cen...</p>