Fiscal Year End 2019

1. Fiscal Year End 2019 The Office of Budget & Finance July 25, 2019

2. Agenda • Accounting and Financial Reporting • Cash Management • Account Reconciliation and Certifications • Purchasing • Payment Services • Payroll and Data Management • Budget and Resource Planning • Internal Audit

3. Accounting and Financial Reporting Greg Argueta Assistant Vice President

4. Timeline

5. General Reminders • Deadline for journals affecting State-funded cost centers is August 15th • No grants endingAugust 31stor sooner should be assigned to pay for fall tuition • Inventory Adjustments • Inventory balances are due to Accounting no later than September4th • Please contact Briana Powell at Briana.Powell@utdallas.edu or at ext. 6741 with questions • All IDTs, budget entries, spreadsheet journals, and accruals due September 4th - (Submitted and approved) • Preliminary close will begin September 5thand end on September 10th

6. General Reminders • Receivables and Revenue • Receivable and deferred revenue balances are due to Accounting no later than September 4th • Forms should be submitted for invoices created outside of the accounting system or services provided but not yet invoiced • Main Menu > Employee Self-Service > Forms > Certificate of Receivables • The Account Reconciliation Application is updated daily – start cost center review on September 5thto ensure material adjustments are communicated to Accounting by September 12th • Please contact Greg Argueta at greg.argueta@utdallas.edu or at ext. 2679 with questions • Final year-end close will occur on September 13th • Account reconciliation for period 12 starts September 16th

7. Cash Management Karol Miller Treasury Manager

8. Petty Cash Funds & Change Funds Due by August 23rd • Reimbursement - All FY19 petty cash expenses must be reimbursed through UTD Accounts Payable. • Reconciliation - All funds must be reconciled and fund amounts must be verified for year-end. • Re-authorization - All funds must be re-authorized for the next fiscal year. Funds that are dormant will be closed. Use Electronic Forms!!!!!! • Reconciliation • Re-authorization for FY20 • Instructions are attached to the forms. • Please email FMS-Treasury@utdallas.edu with any questions.

9. For more information, view the Treasury section on the FMS web page: https://www.utdallas.edu/finance/fms/accepting-payments/ Scroll down to Year-End Verification:

10. Account Reconciliation and Year-End Certification Jennifer Mayes Financial Compliance Manager

11. Account Reconciliation • Period 12reconciliation will be available on September 16thand the completion due date is September 27th • All cost centers should be reconciled and approved by this date • If you do not believe the cost centers in your area will be reconciled and approved by this date, please inform your Fiscal Officer • In addition, please contact Financial Compliance (fincompliance@utdallas.edu)

12. Year-End Certification Letter of Representation Fiscal Year 2019 My area is responsible for reconciliation of all cost centers listed. All cost centers have been reconciled with exceptions noted. Funds were used in accordance with any restrictions. Transactions were appropriate, allowable and properly recorded. Reconciling items have been resolved or have been noted. I or my delegate have reviewed and approved all reconciliations. Segregation of duties have been maintained. Any internal control weaknesses have been reported. To my knowledge, there are no omissions or misstatements. To my knowledge, there has been no fraud. Those authorized to execute contracts comply with ethics certification.

13. Year-End Certification - LORs Letters of Representation will be available in PeopleSoft. The completion due date for cost center owners is September 27th Administrative Support Personnel (ASPs) will have access to CC Owner LORs! Email fincompliance@utdallas.edu to request ASP access.

14. Year-End Certification - Timing • Cost center owners and/or their Administrative Support Personnel should ensure all cost centers are reconciled and approved prior to completing the Letter of Representation (LOR) certification. • Cost center owners should complete their LOR certification as soon as all reconciliations are complete, and bySeptember 27that the latest. • Deans and Division Heads should wait for all cost center owners to complete certification before completing their overall certification. • Timing to complete LORs is tight. Please complete the cost center owner LOR on or before the due date to give your Dean or VP time to complete their LOR.

15. Year-End Certification - Timing Cost Center Owner LOR Dean or VP LOR Monthly Reconciliations Completed in ARA President, Finance & Audit LOR Sep P Oct P Nov P Dec P Jan P Feb P Mar P Apr P May P Jun P Jul P Aug P UT Dallas Financial Statements UT System Financial Statements Chancellor, Controller & Chief Audit Exec Cert.

16. Purchasing Lori Matthews Director of Purchasing

17. Purchasing Using FY20 Budgets You can begin purchasing using your FY20 funds August 1st Do not purchase items that must be received and paid for prior toSeptember 1st

18. Requisitions Exceeding $50,000 Deadline:August 1st Requests in amounts exceeding $50,000 using FY19 funds that are not legitimate sole source/emergency or available through an appropriate Group Purchasing Contract should be sent to the Purchasing Office no later than August 1st to ensure use of your FY19 funds These requests must be competitively bid by the Purchasing Office as required by state law Please contact purchasing@utdallas.edufor more information

19. Other Deadlines • August 23 nd: Last day for non-catalog orders (under $50,000) – must be approved by cost center manager/alternate • August 23 nd : Last day to request drop of PO encumbrancethat should no longer exist • August 23 nd : Last day for catalog purchases – must be approved by cost center manager/alternate • eProcurement goes down at 3PM – all non-approved FY19 orders will be cancelled

20. Payment Services Jené Janich Director Accounts Payable, Travel and One Card

21. The BIG DAY is August 23 • August 23rd: • One Card deadline to charge against FY19 • Request for Check must be fully approved • Vendor Invoices to Payment Services • Employee Travel Vouchers must be fully approved • Employee Reimbursements must be fully approved Email onecard@utdallas.edu Email travel@utdallas.edu

22. Accounts Payable Accruals • Accruals Due September 4th • Accruals account for goods or services costing $5,000 or more and received by 8/31 which are not yet recorded. Costs incurred for $5,000 or more should be submitted including: • Estimated Travel • Estimated Services • Estimated Reimbursement • Do not send airfare Contact:accountspayable@utdallas.edu

23. Payroll and Data Management Rohan Nilekani Interim Director of Payroll Services

24. Payroll Deadlines • Monthly Payroll Time & Labor and ePAR - August 21st • Semi-Monthly Payroll • September 3rd payday: Time & Labor and ePAR- August 27th • September 16th payday: Time & Labor and ePAR- August 30th

25. Payroll Deadlines • FY20 New Data • All new hire employees submitted via ePAR • Spreadsheet Submissions – SentAugust 9th • Cell Phone Verification Spreadsheet due August 23rd • Supplement Verification Spreadsheet due August 23rd • Funding should follow FY20 budget – generally no E&G sources

26. Payroll Deadlines • All absences for the fiscal year should be fully submitted and approved by 5:00pm on August 30th • Human Resources will be automatically approving all Saved and/or Submitted time

27. FY19 Payroll Update • Query for accessing FY20 approved Budget Workbook payroll data will be made available to departments by September 6th • Department corrections for payroll data(ePAR) as well as approved changes for FY20 will be due bySeptember 16th

28. Budget and Resource Planning Amber Andrews Sr. Financial Analyst

29. Budget Timeline • August 1st • Turn off pre-encumbrances for vacant positions • Load FY20 budgets including gift cost centers • Gift cost centers • Budget Office sent out templates last weekto Fiscal Officers • Please return completed templates today, July 25th • State funds reorganization • Includes state funds except for funds 217x, 218x, 24xx, or 2900 • Budget Office has provided a cost center crosswalk

30. Budget Timeline • August 21st • Deadline to zero out all payroll for clearing cost centers (fund 3399) • Deadline for FY19 Payroll reallocations • Processed via ePAR; ePAR should be in Budget Office’s queue by deadline • C&G FY19 expenses pending a project number should be reallocated to a non-state cost center • Note: Reallocations for FY19 expenses will not be processed in FY20 except for C&G cost centers (non-state cost centers only)

31. Budget Timeline • September 3rd • Turn onpre-encumbrances • Salary encumbrances will be left on • Budget checking will be left on • Budgets will be adjusted to include 8/31 fund balances for self-funded cost centers and core cost centers tagged to roll forward • Budget will be added for FY19 POs rolling forward to FY20

32. Budget Timeline • Payroll encumbrances • Positions will be encumbered or pre-encumbered as the Payroll Office loads funding data • Please do not check your positions until the load is completed • Budget for FY20 POs • Budgeted amounts will be available August 1st • Budget for fund balances will be loaded shortly after September 3rdor after the final payroll has been posted

33. Budget Timeline • September 4th • Deadline for FY19 Budget transfers/journals • Budget transfers for FY19 created September 1st through 4thshould be dated 8/31/19 • Budget transfers created for FY20 should be dated 9/1/19 • Do not submit FY20 budget transfers into workflow prior to September 1st • Please make sure nobudget deficits or fund balance deficitsexist in cost centers

34. Year-end Carry Forward • Which funds are included? • General guidelines; exceptions may be granted on a case by case basis

35. Year-end Carry Forward • Budget Office will send Fiscal Officers a cost center listing to validate cost centers tagged to be rolled forward by August 15th • Budget for 8/31 fund balances will be loaded in FY20 for cost centers tagged to roll forward on September 3rdor after the final payroll has been posted • Do not process budget journals to adjust FY20 fund balances to avoid duplication or incorrect budget balances • After the month of August has been closed (mid-late September) • FY20 fund balance budgets will be adjusted • Accounting Office will finalize FY19 returns • Budget Office begins preparing division return reports

36. Year-end Carry Forward • Budget Office will send Fiscal Officers their respective area’s FY19 return reports late September/early October for review and to confirm or update the return cost center(s) • School/Division return transfers will be processed soon after • Sample return calculation • Note: • Surplus and deficit balances are netted together • Net balances that end in a deficit balance are posted as well

37. Follow-Up • If you have questions, please contact the Budget Office at budget@utdallas.edu • For questions or concerns specific to this year’s process, please contact Eva Burnett or Orkun Toros

38. Audit and Consulting Services Melissa Carley Staff Auditor III Chris Robinette IT Staff Auditor II

39. What Does Audit and Consulting Services Do?

40. What Does Audit and Consulting Services REALLY Do? Assurance Advice Insight to UT Dallas the UT System Board of Regents the Citizens of Texas to ensure there are processes in place to protect UT Dallas and the achievement of our Strategic Plan

41. Who Are We? UTD Audit Committee, UT System, Board of Regents EXTERNAL AUDIT REGULATORS Department Heads, Deans, Executive Management

42. How Do We Add Value to UTD? Trusted Advisor and Consultant Provide Assurance • Audits that provide assurance to executive management • Audits that improve operations, internal controls, and minimize risks • Based on a risk assessment of University operations

43. What Do You Think Are Some of the Highest Risks?

44. What General Areas Will We Audit in FY20? • Risk-Based Audits University-wide • Gifts • Travel • Labs • One Cards • Payroll • Keys/Cards • Research • eProcurement • Conflicts of Interest and Commitment • Risk-Based Audits in General Areas • Academic Affairs • Student Affairs • Tuition and Fees • Research • Information Security • Information Technology • Decentralized Computing • Schools, Departments, and Centers For a complete listing of the Audit Plan and Audit Reports, go to: www.utdallas.edu/audit/audit-reports-and-plans/

45. What Is Fraud? • Dishonest, illegal, or fraudulent act involving UT Dallas property • Fiscal irregularities • Forgery or alteration of: checks, drafts, promissory notes, and securities; employee benefit or salary related items such as time cards, billings, claims, surrenders, assignments, or changes in beneficiary; medical related items such as reports, charts, prescriptions, x-rays, billings, or claims • Forgery or alteration by employees, of student related items such as grades, transcripts, loans, or fee or tuition documents • Misappropriation of funds, securities, supplies, or any other asset • Illegal or fraudulent handling or reporting of money transactions • Acceptance or solicitation of any gift, favor, or service that might reasonably tend to influence the employee in the discharge of his or her official duties • Destruction or disappearance of records, furniture, fixtures, or equipment where theft is suspected UT System Policy UTS118, Dishonest of Fraudulent Activities Association of Certified Fraud Examiners 2018 Global Study on Occupational Fraud and Abuse

46. What Auditors Look for During Audits? • Tips/Personal Issues • Living beyond one’s means • Financial difficulties • Personal problems • “Wheeler Dealer” attitude • Conflicts of interest • Vendor Relationships • Commitment • Personal/Family/Friend businesses • Excessive control issues, unwillingness to share duties • Specific Areas of Risk and Lack of Controls • One Cards • Separation of Duties • Receipting and Billing (Cash, Checks, Credit Cards) • Reasonableness of Expenses • Business Reimbursements and Travel • Payroll Red Flags of Fraud

47. What Can YOU Do to Help Prevent Fraud? • Reconcile Cost Centers • Do a Thorough Review of Purchases • Segregate Duties • Make Sure No One Employee Performs All Duties • Conduct Periodic Inventories of Property • Report Fraud • Do Background Checks • Verify Hourly Employee Time • Have Policies and Procedures in Place • Question unusual transactions

48. What to do if you suspect fraudor other unethical behavior • Call Audit and Consulting Services at 972-883-4876 • Call the Hotline 1-888-228-7707 • Call the State Auditor’s Office hotline at 1-800-TX-Audit • Call University Police at 972-883-2222 for thefts

49. Questions?

50. Year-End Resources Visit the Office of Budget and Finance page for up-to-date announcements and information regarding year-end! (Including this presentation!) http://www.utdallas.edu/finance/afr