Higher Education 2012 Closing Process Training

1. Higher Education 2012Closing Process Training

2. Agenda • Introductions • Single Audit / CAFR Update • Single Audit • Closing Process • New GASB’s • Deloitte

3. Financial Accounting & Reporting Section Staff Jeff Perkins Chris Sforza, CPA Jane Shinn Sheila Straley Kay Walden Connie Byrne, CPA Susannah Carpenter, CPA Jordan Clay Betsy Frame Becky Hayes, CPA

4. FY 2011 Update • Issued CAFR on 2/15/12 • Still expect to receive Certificate of • Achievement in Financial Reporting • Issued Single Audit on 3/31/12 at • 6:00 p.m. on Saturday

5. The CAFR combines 75 unaudited and 29 audited agencies. • Agencies struggle to submit financial information: • 15 of 29 audited agencies did not meet the final audit deadline • 1 final was received after Dec. 31 FY 2011 Update

6. Why do institutions struggle? • Lack of understanding of importance by management • Turnover within institution • Missing information from 3rd party • Disagreement with the financial statement auditor FY 2011 Update

7. CAFR for Fiscal Year 2011 • Almost 500 journal entries • 100+ Work papers • 8 Full-time employees • 2 Part-time employees

8. 2011 SINGLE AUDIT • 59 Findings – up 4 from 2010 • 26 repeat findings • 55 are program audit findings • increase of 5 from 2010 • 20 Higher Education

9. Single Audit Team Contact Information OMB A-133 Shelley Norton, Senior Manager—Ernst & Young Phone: 357-5973 Email: shelley.norton@ey.com Betty Rowe, Senior—Ernst & Young Phone: 357-5985 Email: betty.rowe@ey.com Chris Deweese, Member—Suttle & Stalnaker Phone: 720-3107 Email: cdeweese@suttlecpas.com

10. Statewide Audit Findings • 1512 Reporting • Subrecipient Monitoring • FFATA - Transparency

11. Single Audit

12. Form 5A - SEFA Checklist • Now required with export submission • Will be enforced • Problems will be sent back to preparer and • supervisor who signed form SEFA Check List Revised

13. SEFA Check List Revised

14. Form 5B Revised

15. Form 5C Revised

16. Reconciliation Total from SEFA Software - Transfers from Forms Actual Disbursements

17. Form 6 – Prior Year Findings Update monthly Send to Connie.S.Byrne@wv.gov Form 6

18. eZ-Audit Form 6

19. Prior Year Findings BADResponse: “The department agrees.” Form 6

20. Prior Year Findings GOODResponse: “The Fund continues to monitor the status of subrecipient audit reports and provide technical assistance to ensure that management and the governing body of the subrecipients understand the importance of filing timely audit reports. This issue will be resolved by October 31, 2012” Form 6

21. SEFA Software

22. Web link to Federal Grant Access Database Program at - http://www.wvfinance.state.wv.us/grants.htm SEFA Software

23. Have a New Computer? YES • Print the Program Installation Instructions • Download the Federal Grant Information which • consists of: • Grant Reporting Installation Program • FARS Data Tables • Grantor Data Tables SEFA Software

24. Are you using the same computer from last year? • Download will overwrite prior year data files • Maintain a copy of last year’s information by: • Copying existing SEFA folder to new path: • From C:\Program Files\SEFA • To C:\Program Files\FY 2011 SEFA SEFA Software

25. Computer Used Last Year (cont.) ?? New Computer ?? Federal Grant software must be downloaded to C:\Program Files\SEFA FARS and Grantor Data Tables must be downloaded to C:\Program Files\SEFA\Import: FARS Data Table Grantor Data Table SEFA Software

26. Federal Reporting • Software Issues • New “Program” or “CFDA” SEFA Software

27. Federal Reporting • Software Issues (cont.) • Always select an Account Number • Always select a Federal Grantor SEFA Software

28. Federal Reporting • Software Issues (cont.) • Don’t enter information into Account • TRANSFERS XX (FARS use only) • Windows 7 users should be able to download SEFA Software

29. Federal Reporting • Information Issues • Documentation for beginning balance changes • Documentation for reconciling items over $25,000 SEFA Software

30. Federal Reporting • Information Issues (cont.) • Documentation for negative disbursements and • receipts • Balance to WVFIMS as of 6/30 • Do not include 13th month • Do not duplicate CFDA #’s in the same account SEFA Software

31. Clean Up Items • CFDA Numbers: • Delete from program number field • Delete numbers containing ALLzeros • Delete unused programs SEFA Software

32. Due Date August 31, 2012 SEFA Software

33. Submit supporting documentation and export data via Email to: Connie.S.Byrne@wv.gov or Mail with supporting documentation to: FARS Building 17, 3rd Floor 2101 Washington Street, East Charleston, WV 25305 SEFA Software

34. AGENCY’S RESPONSIBILITY Leave Information July 6, 2012 SEFA Software Aug. 31, 2012 Draft Financials Sept. 14, 2012 Final Financials Oct. 15, 2012

35. Procedures Forms will be on the following website by July 1, 2012 http://www.wvfinance.state.wv.us/farsforms.htm

36. Procedures and Submissions • Download Excel Forms • Call if trouble downloading • Forms due with Draft/Final Audit

37. Procedures and Submissions READ CLOSING BOOK INSTRUCTIONS (Included on bottom of forms)

38. Procedures and Submissions E-mail completed forms which do not require supporting documentation to: Sheila.K.Straley@wv.gov

39. Procedures and Submissions Mail completed forms along with supporting documentation to: FARS Building 17, 3rd Floor 2101 Washington Street, East Charleston, WV 25305

40. Audit Notification Form • Included in Closing Forms or can be downloaded • separately from the FARS website • Fill out and send to FARS any time audit work or review will be • performed by independent, federal, or other auditors/reviewers • (not legislative audit) Audit Notification

41. Subsequent Events • Significant Items: • Legal Issues • Bond Issues • Contact FARS to discuss subsequent events that occur after agency financial statements are issued but before CAFR is issued.

42. Repurchase Agreements • Note Disclosure • Required Information • Type of Investment • Value of Investment • Credit Rating

43. Leave Warehouse

44. Leave Balance Information • Required Employee Information: • Name • Social Security Number • Service Information (years & months) • Retirement Plan • Balance of Annual Leave at 6/30/12 • Balance of Sick Leave at 6/30/12 (in hours -2 decimals)

45. Leave Balance Information (cont.) • List employees in alphabetical order • Due July 6, 2012

46. Debt Disclosure • The note disclosure should include the following statement if a refunding occurred during the current fiscal year: • “The refunding resulted in an economic gain (or loss) of $_______.” • All gains (losses) should be reported

47. Opening Balance Reports Cash with Treasurer Revenues • Investments • with IMB and/or BTI Expenses

48. Where is your money on WVFIMS opening balance report?

49. Opening Balance Reports • Reconcile your statements to the opening balance • reports for the following : • Cash with Treasurer • Investments with BTI • Investments with IMB • Use Forms 8, 8.1, 9, and 9.1

50. Opening Balance Reports • VERIFY, Approve, and Return to FARS • Balances are as of June 30, 2012 • do not include current year 13th month • SHARE WITH YOUR AUDITORS