Preparing for Fiscal Year End Processing 2014

1. Preparing for Fiscal Year End Processing 2014 Kathy Pelletier MUNIS Implementation Consultant Tyler Technologies - MUNIS Division k (

2. Important Information/Documents for Fiscal Year End Processing • Unaudited AFR due to KDE by July 25th • KDE Document: Fiscal Year End Processing (BGL-2) • This document is subject to change. It is recommended that you check often on KDE’s website to make sure you have the most recent document • KDE Newsletters: The newsletters contain information about changes to Year End, Chart of Accounts, AFR submission, etc. • AFR & Year End FAQ’s: KDE’s website • On Behalf Payment Info: On behalf entries must be made on the unaudited AFR. Info can be found on KDE’s website.

3. Chart of Accounts Changes effective FY 2014 • Funds • 410 – Delete (no longer valid; must use 400) • 6X – Change name to “Fiduciary Fund – Agency Funds” • 7X – Change name to “Fiduciary Fund – Pension, Investment, and Private-Purpose Trust Funds” • Functions • 2420 – Change the name to “School Based Decision Making” • 5200 – Change the name to “Fund Transfers Out” • Objects • 0633 – Delete (Per SCN, group sales are not allowed) • 0639 – Delete (Per SCN, “other” is not allowed) • 0738 – Delete (instruction descriptor should be identified through function, not object) • 0925 Bond Discounts – Add

4. Chart of Accounts Changes effective FY 2014 (Cont’d) • Revenues • 1627 – Delete (Per SCN, use 1624 instead) • 1628 – Delete (Per SCN, this program no longer exists) • 1632 – Delete (Per SCN, employee purchases are not allowed) • 1634 – Delete (Per SCN, use 1614 instead) • 17XX – Change the name to “District Activity Funds” • 1720 – Change the name to “Bookstore Sales” to correspond to descriptions • 4800 - Change the name to “Federal Reimbursements In Lieu of Taxes”

5. Prior to Year End Closing • Create journal numbers for the new fiscal year • If you use the Accounts Receivable and/or General Billings module, add charge codes for the new year

6. Review Projects in Fund 2 • Run Project Budget Report for Active/Inactive/Closed. • Before projects can be set to closed, make sure revenue and expenditures must net to zero • Make journal entries to clean up projects

7. Check Balance Sheet Balance • The balance on the balance sheet should equal the total on the Project Budget Report • Compare Year-to-Date Total on Project Budget Report (if Project to Date) has a different total

10. Review Purchase Orders • Run Purchase Orders by GL Account • Review purchase orders and cancel PO’s you do not need (you should do this now and several times throughout year end) • Identify outdated purchase orders by going into Purchase Order Change Orders • In Fiscal Yr/Period, enter <2014 and in Status field, select each status except zero • Use “Close PO” button to close these

12. Review & Reconcile Balance Sheets • Review your balance sheets for each fund

13. Review Balance Sheet • Do any of your balance sheets show “Unassigned Fund Balance? • Does Fund 51 show a balance in Restricted or Unrestricted Net Assets? • Do you show Deferred Revenue or Accounts Receivable for Fund 2? • Does Fund 2 balance reconcile with PBR?

14. Review Balance Sheet (cont’d) • Are your Accounts Payable and other Payable balances correct for all funds? • Do Purchase Obligations match your outstanding purchase orders for each fund?

15. Enter Current Fiscal Year Invoices on Hand • If you have invoices that will not be paid until July but are for purchases made for FY 2014, these need to be entered in period 12 FY 2014 • Cash Disbursements will be run for 2015 period 1 (DO NOT RUN CASH DISBURSEMENTS FOR 2014 PERIOD 12)

16. Run GL Tables Validation • Run FULL GL Tables Validation • This should be done monthly throughout the year • If you have errors, review the error document on the MUNIS website • If you have questions concerning how to correct the error, contact Tyler/MUNIS

17. Run Utilities • No user in system • Make sure you have a good backup • Review reports generated

18. G/L Memo Balance • This utility compares the memo balance value to the sum of all activity on the account including transactions yet to be posted. It will compare and correct last year, current year, and next year totals. • To run utility: • From menu, select Admin, Diagnostic Tools, G/L Memo Balance

19. GL Encumbrance Utility • This utility identifies Purchase Orders with invalid or incorrect amounts and recalculates the correct encumbrance balance on each general ledger account • To run utility: • Select Admin, Diangnostic Tools, GL Encumbrance

20. Utilities for Requisitions • GL Requisition Amount – this utility recalculates and corrects the requisition balance on general ledger accounts (This is also accessed under Diagnostic Tools)

21. Open Periods • Close and reconcile open periods by running month end processing for periods 1 through 11

22. Check Fund Transfers • Insure that Transfer Ins equal Transfer Outs

23. July 1 • Set default Year and Period • 2015 01 • Update “Set Holding Year Open Flag”

24. After July 1

25. After July 1 • Review open purchase orders • Enter remaining invoices for 2014 • Remember post invoices to 2014-12 and run cash disbursements for 2015-01 • Review open invoices • Run Invoice History by GL Account

26. After July 1 • Review unposted journals • General journals • Budget amendments • Current year requisitions • Current year purchase orders • Invoices • Misc cash and general billing • Payroll processing and vendor payrolls • Cash disbursements

27. After July 1 • Close and reconcile open periods (1 thru 12) • Run Full Tables Validation – resolve any errors • Prove encumbrances/Run utilities

28. RUN YEAR END CLOSE IN TRAIN!!!!!!!!

29. Year End Processing (Live) • Halt all system processing • lockmunis in Cloud Admin • Perform Year End Backup • Year End Backup is in Cloud Admin • Produce end of year reports • Project Budget Report • Payroll Deduction Register • Month End Trial Balance

30. Year End Processing • Close current fiscal year – what happens? • Outstanding encumbrances for open purchase orders are liquidated • Unassigned Fund Balance(8770) is reserved for the amount of outstanding purchase orders • Expenditure Control and Revenue Control are moved to Unassigned Fund Balance Review YEC Journals

31. Year End Processing • Produce Year End Trail Balance – (P)reclosing • Open new fiscal year • Produce Year End Trail Balance – (F)inal • Produce Budget Completion Journal • Verify budget preparation year • Run Budget Completion Journal – Selective account inclusion must be checked on fund 2 projection and must only include 2015 projects

32. Year End Processing • Perform a Year End Backup • Resume MUNIS processing • lockmunis

33. Posting Last Year Adjustments • Enter Accounts Receivable and additional Accounts Payable • Enter other GASB entries (committed, restricted, assigned, etc) • Enter Accounts Receivable and Deferred Revenue for Fund 2 • Run Project Budget Report A|I|C • Report Options Field 12 with Totals, no page break

34. Fund 2 Deferred Revenue & Accounts Receivable • If a grant has $10,000 in revenues but only $8000 in expenditures, a deferred revenue entry will be made • Debit grant revenue account for $2,000 • Credit deferred revenue (20-7481) for $2,000 • If a grant has $15,000 in revenues and $18,000 in expenditures and the district is due to receive $3,000 more, an accounts receivable entry is made • Debit accounts receivable (20-6153) for $3,000 • Credit grant revenue account for $3,000 FUND 2 BALANCES MUST BE ZERO!!

35. Posting Last Year Adjustments (Cont’d) • Reserve fund balance for site based carry forward: • Debit Unassigned Fund Balance (8770) • Credit Committed-Site Base Carry Forward(8752) • Fund 310 and 320 – To restrict balances for even numbered years, 8770 will be moved to Restricted-Other(8737)

36. Posting Last Year Adjustments (Cont’d) • Fund 360 – if there is a balance in 8770, move to Restricted-Future Construction(8735) • Fund 51 – move 8770 to Restricted-Net Assets (5X-8739) or Unrestricted Net Assets (5X-8712) Post Last Year Adjustments

37. Produce AFR • Annual Financial Report (AFR) must be created and sent to KDE through web application • Create AFR Including Account Detail and not Including Account Detail • 4 files (2 balance sheet files, 2 AFR files)

38. Submitting AFR • KDE has edit checks when your submit. Some items may prevent it from being submitted: • Carefully review fund transfers to insure that transfer ins match transfer outs • Make sure you have made the on-behalf entries (including Technology On-behalf • Review any document or correspondence that KDE has sent to insure you do not miss something

39. New Year Processing • Reverse Fund 2 Deferred Revenue and Accounts Receivable entries – 2015-01 • Reverse Accounts Receivable and Accounts Payable entries

40. Move Fund Balances to Beginning Balance • Fund 1 – 8770 and 8752 must be moved to beginning balance (110-0999U) • Fund 2 – no entry should be made since Fund 2 is zero • Fund 360 – No entry will be made • Fund 51 – move from 51-8739 or 51-8712 to beginning balance (510-0999R or 510-0999U)

41. New Year Processing (Cont’d) • Adjust budget for beginning balance • Budget Site Based Carry Forward for new year

42. After Audit • All audit adjustments will be posted to 2014 period 13 • Once all audit adjustments are made, AFR is created again and sent to KDE through the web application (including detail and not including detail) – November 2014 • Auditor & Finance Officer should make sure AFR matches audit

43. QUESTIONS?

44. kathy@kpcky.com (859)771-2520 Kathy Pelletier