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Year End Close FY2010

Year End Close FY2010. Financial Statements and Deadlines for Year End Close State of Oregon Oregon University System – OUS Oregon State University Foundations [fundraising efforts]. The big picture.

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Year End Close FY2010

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  1. Year End Close FY2010

  2. Financial Statements and Deadlines for Year End Close • State of Oregon • Oregon University System – OUS • Oregon State University • Foundations [fundraising efforts] The big picture

  3. Revenues and expenditures must be accounted for in the correct fiscal year to ensure the accuracy of financial statements 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 The big picture (cont.)

  4. Receivables • An asset on the balance sheet • Revenue earned but not received by the close of the fiscal year • Records income in the current year Deadlines • SIS A/R - 6/23 @ 5pm to BAFF • SIS A/R - 6/30 @ 12pm for Dept direct entry • Non-SIS A/R - 7/8 @ 5pm by JV • Non-SIS A/R - 7/22 @ 5pm for Reconciliations Year End Accruals

  5. Undistributed (unearned) Income • A liability on the balance sheet • Cash received in advance for goods or services not provided by June 30 (Review 2010 deposits) • Removes income from the current year • Do not accrue for grant contracts Year End Accruals

  6. Accounts Payable • A liability on the balance sheet • Expenses incurred for goods or services received, but not paid for, in FY10 • Accrue only if >$500 • Records expense in the correct fiscal year Year End Accruals

  7. Accounts Payable, (cont.) • Follow instructions for A/P Accrual spreadsheet carefully • Do not change column widths or formatting • Deliver electronic copy to accounts.payable@oregonstate.edu no later than Monday, July 19 @ 5pm • Caution: do not process invoices with June date and include on Accrual Spreadsheet! – this would result in double counting Year end accruals

  8. Prepaid expense • An asset on the balance sheet • Cash payments made in advance for goods or services not received by June 30 - includes FY11 Travel • Only record those >$500 • Removes expense from current fiscal year • Deadline for Reconciliations: 7/22 @ 5pm Year End Accruals

  9. Quick way to find the Fund of an Index • Go to FGIBDST in Banner • Type index in index field to show FOAPAL elements • Index is a shortcut and is not a FOAPAL element JV Text and Description • should say “FY10 Accrual”, then “FY11 Reverse Accrual” • Add the same to the description on all JV lines accrual JV hints

  10. All accruals must be reversed with a July FY11 transaction date • Tip: Do both accrual and reversal JV at the same time. • Use the Reverse Function in FGAJVCD Departments are responsible for reversing: • Receivables [non-SIS] • Undistributed (unearned) income • Prepaid expenses Accounts Payable will reverse payable accruals placed on spreadsheets Accrual reversals

  11. Reversal JV’s must have the following: • July date • Rule code 3JV1 • Reverse the exact entries, only change debit and credit. Do not add anything. • In Doc. Reference field, place the original accrual JV number • Start text with “FY11 Reverse Accrual of…” Accrual reversals (cont.)

  12. To use the reverse function in FGAJVCD: Accrual reversals (cont.) Step-by-Step directions are posted on our YEC website.

  13. Determining the Fund Balance • Fund Balance = Assets – Liabilities • Axxxx accounts – Bxxxx accounts • Cash • + Receivables • + Prepaid Expenses • - Accounts Payable • - Unearned Income • = Fund Balance Fund balances

  14. Fund balances shown do not change during the fiscal year, so either hand calculate or use the screens below to find true current balance • Banner screen FGITBSR • Fund balance report in Data Warehouse under General Ledger, Admin Reports • (do not use “balance sheet” report in DW for this purpose) Fund balances (cont.)

  15. Self-support operations must have positive fund balances. These include: • Designated Operations (05xxxx funds) • Service Center (09xxxx funds) • Auxiliary (1xxxxx funds) Fund Balances (cont.)

  16. Gift Funds (Mxxxxx, and some FAxxxx) • Gifts should not be spent before cash is received • Monitor cash balances through year end close using FGITBSR • JV’s processed in July with June transaction dates affect FY10 cash balances • Invoices processed in July with June transaction dates do not affect FY10 cash balances • Cash [Account code A0901] must be positive when FY10 is closed Reconcile Gift funds

  17. Gift Funds, (cont.) • If gift fund has a negative cash balance at year end - • Move non-payrollexpenses via JV to an appropriate funding source by July 15th to bring the fund into a positive balance. • After July 16th, expenses will be moved by OPAA to the departmental general fund index to bring cash to zero. • These JV’s can not be reversed in a subsequent year. Reconcile gift funds (cont.)

  18. Make sure all accruals are recorded for the fund with transaction date of June 30th • See FIS 1403-03 • If fund balance is negative, funding is needed from another source and process a JV Debit Departmental index- account code 24901 Credit Designated Operating index- account code 09398 Reconcile designated operation funds

  19. Make sure all accruals are recorded for the fund with transaction date of June 30th • Calculate the working capital balance. Working capital does not include fixed assets or depreciation. See FIS 1403-04. • Process JV to eliminate negative balance Debit Departmental index - account code 24902 Credit Service Center index - account code 09398 Reconcile Service Center Funds

  20. Calculate the working capital balance. Working capital does not include fixed assets or depreciation. See FIS 1403-05. • When an auxiliary has more than one fund, all 1xxxxx funds for that unit are rolled together for this determination • If balance is negative – funding is necessary • Only source of funding for negative balance is a loan from another Auxiliary Fund Reconcile Auxiliary Funds

  21. OSU Foundation reimbursement funds – FSxxxx, FExxxx, 438xxx, & Plant funds • Requests for reimbursement from OSUF need to be made through reimbursement system by Tuesday, June 29 [8pm] for expenses incurred to date and to cover current cash deficit • All FY10 transactions in the reimbursement system must be processed by July 20th [5pm] • Do not process accruals for the reimbursements on these funds – Business Affairs will process the receivable accrual centrally after July 20th. Reconcile OSU Foundation funds

  22. Review FIS-Ex003-18 and FIS-Ex003-19 for Fund Reconciliation Responsibilities • Monthly or Quarterly reviews should be done throughout the year • View balances in FGITBSR or Data Warehouse • Make sure of the following: • Debit or Credit Balance is correct (Axxxx = D, Bxxxx = C) • Transactions are in correct fund and/or account • “Old” balances are resolved Reconciliation Tips / Tricks

  23. Reconciliation Required for: • A5901- Prepaid Expense Year End Accrual • A3802- A/R Rec Year End Accruals • A4xxx- Inventory • 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 to Charlotte.Rooks@oregonstate.edu by July 22 @ 5pm Reconciliation Tips / Tricks (cont.)

  24. Remember in July • Period 14 (FY10) and Period 01 (FY11) are open concurrently • Watch JV transaction dates carefully • Very important: begin text with “FYxx” because the JV approvers are not mind readers • Use normal rule codes such as 3JV1, 3BCx or 3GNT as appropriate Journal vouchers

  25. Inter-institutional JV for FY10 • Submit to Business Affairs by Friday, July 9, noon JV’s (non-budget) can be processed after June 30 with a June transaction date • Period 12 deadline – Thurs., July 8, 5pm • Period 14 deadline – Thurs., July 22, noon Journal vouchers (cont.)

  26. Redistributions or corrections • Do all corrections in current fiscal year (period 12) • Any prior year redistributions in FY11 will be reviewed for effect on financial statements and may be disapproved • No retroactive redistributions will be allowed which affect Program Codes or are between funding sources (Fund types). Journal Vouchers (cont.)

  27. All 40199 account codes must have a zero balance at year end • Process a JV to move all expenses from 40199 to 401xx or A80xx if equipment is: • Completed and ready for use – list “in use” date in text • Still 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 FY11 40199 – Construction in progress

  28. When 40199 expenses are transferred to 401xx or A80xx, a new asset record is created in the Fixed Asset Module • JV text must include all elements necessary to create a new asset record – See PRO-Ex1 • Creating a new asset requires extra processing in the Fixed Asset Module – Please clear all 40199 balances as soon as possible 40199 – Construction in progress

  29. FY10 departmental budget change JVs (1xGF and 1xAS rule codes) processed after June 30 need to use June transaction date • Complete and approve by Friday, July 9, 5pm Only SWPS administrative budget offices are allowed to process FY10 budget adjustments between July 13 and July 22 Budget Journal Vouchers

  30. Deadline for depositing all cash: Friday, June 25 @ 5pm Deadline for cash received after June 25th ONLY: Wednesday, June 30 @ 12pm, noon Please do not accumulate receipts for one final deposit! All checks and cash should be deposited within one business day of receipt. Deadline for bulk coin deposits: Tuesday, June 29 @ 12pm, noon Cash receipts

  31. June 30th - 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 Expenses using petty cash must be reimbursed in FY10 Deadline: Reconciliation due in Business Affairs 7/22 @ 5pm Petty cash

  32. Plan ahead for major expenditures • Watch P.O. deadlines Period 01 for FY11 opened Wednesday, June 16 for Purchase Orders Only Open purchase orders will be rolled into Period 01, FY11 July 20th @ 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 Purchase Orders

  33. Manual encumbrances (“E” documents) must be correct by June 25, 5pm • Any remaining encumbrances after June 25 will roll into the FY11 accounting records. These are difficult to delete after the roll • Call Diane McGill 737-6047 with questions Deadline for liquidation JV’s - July 8th @ 5pm Manual encumbrances

  34. Period 12: July 1-8, for all funds • Goods or services received on or prior to June 30 • Process the invoice in FY10 using a June transaction • Have all documents/image files to the Final Approval Dept • Deadline Thursday, July 8 @ 5pm All approvals by departments and Business Centers (including final approvals) must be completed by Friday, July 9, noon. Queues must be clean. invoices

  35. Period 14: July 13-15, for all funds • Goods or services received on or prior to June 30 • Continue processing each invoice in FY10 by using a June transaction date. • Caution: Period 01 FY11 is open at this time – watch dates! • All documents or images must be in the Accounts Payable Office by Thursday, July 15 [12pm] Final Approval by Departments or Business Centers must be completed by Monday, July 19 at 5pm. Invoices (cont.)

  36. Reminder: Do not prepay for supplies, services, memberships, or subscriptions that begin on or after July 1, 2010. Hold these invoices and process in Period 01, FY11 - July 1st or later Invoices (cont.)

  37. Direct Pay Vendors such as Office Max, OSU Bookstore, VWR, and Fisher Scientific • Expenditures are charged directly to departmental accounts via an “ICxxxxxx” invoice • Vendor sets its own billing cycle • FY10 purchases should have been completed by Friday, June 18th @ 5pm Direct Pay invoices

  38. A/P will stop loading Pcard transactions on June 26 – all transactions in the Pcard module will be FY10 transactions that need to be distributed to departments Deadline for processing through the Pcard module is Thursday, July 8th @ 5pm Pcard Distribution

  39. Reimbursements for travel taken through June 30 must be included in the FY10 Accounting Records TRES requests should be submitted to Accounts Payable by Thursday, July 8th @ noon • Ensure transaction is June dated in Banner Final June airfare files will be reviewed by Accts Payable and only June travel dates will be posted to FY10 • Airfare for travel dates July and later will be posted as July, Period 1 FY11 transactions Any expenses for FY10 travel that have not posted by Thursday, July 15, noon should be put on the accrual spreadsheet travel

  40. All FY10 Labor Distribution Changes • Must be submitted to Central Payroll by Thursday, June 24th • Must be entered in PYAREDS by Wednesday, June 30 [12pm] Prior year retroactive payroll redistributions submitted in FY11 will only be approved by OPAA when Program Codes or funding sources are not affected payroll

  41. Please pay close attention to the major deadlines for year-end close Chronological list of deadlines and instructions can be found at – http://oregonstate.edu/fa/businessaffairs/analysisreporting/yearend.php Major Deadlines

  42. Year End Close - http://oregonstate.edu/fa/businessaffairs/analysisreporting/yearend.php OSU Foundation – http://www.osufoundation.org/ Budget Office -http://oregonstate.edu/budget/budgetforms&instructions.htm Web sites for instructions

  43. E-MAIL ADDRESSES Budget.Office@oregonstate.edu Cashiers.office@oregonstate.edu Accounts.payable@oregonstate.edu Paymaster@oregonstate.edu Contacts

  44. General Questions Financial Accounting and Analysis Charlotte Rooks 737-5422 Treasure Hunt 737-9370 Diane McGill 737-6047 Stephanie Smith 737-1825 Mark Fryman 737-0624 Fixed Assets Janna Storm 737-4084 Accounts Payable & Travel Paul Marinello 737-0637 A/P 737-4262 Autopays Bezu Abebe 737-0635 Pcards Rose Hamilton 737-0650 Grants, Gift, and Foundation Funds OPAA 737-4711 contacts

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