GUS Cloud &year end update

1. GUS Cloud &year end update Expenses Module/policy changes and important fy19 dates

2. Today’s topics • Gus cloud expenses module • Terminology refresher • Enhanced expenses work area • Policy and procedure updates • New business office check printing procedures • Taxability issues – expense reimbursements • Year end fy19 • Reviewing cost center balances • Due dates • Foundation year end presentation

3. Expense Module terminology Expense template – grouping of expense types. Expense template, travel template, and split-fund template Expense type – classification of expense transaction that determines the account code used in the funding string. Expense report delegate – person who processed the transaction on behalf of the expense report owner. Expense Report – grouping of expense reimbursement and/or procurement card transactions. Provides high level information. Expense item – single expense reimbursement or procurement card transaction. Provides detailed information. Expense report owner – employee who is being reimbursed, or whose name is on the pcard.

4. new expenses work area Enhanced work area new itemization See the updated Expenses Job Aids! https://www.pittstate.edu/office/business-office/gus-finance-and-procurement-training-materials.html

5. Policy and procedure updates • Check Printing – for increased efficiency, we will no longer process all checks on a daily basis • State payments – Monday, Wednesday, Friday • Local payments – Tuesday, Thursday • Imprest – as needed • Employee reimbursements – reimbursements to employees over 60 days old are taxable • Business office is working on an official policy • Please submit reimbursements within 30 days of when the expense occurs • Travel Reminder – If claiming M&IE reimbursement, an agenda must be provided

6. Reviewing cost center balances

7. Reviewing cost center balances • As year end approaches, please monitor cost center balances and correct any negative balances • Try to mitigate negative grant balances

8. Reviewing cost center balances • Use dashboard reports to look for incorrect fund-cost center combinations that may be causing negative balances

9. Reviewing cost center balances • CC Bal – department report • Cc bal- department report by fund category

10. Reviewing cost center balances • Dashboard reports can be sent to my email! See the NEW Job Aid! Scheduling Departmental Cost Center Balance Reports https://www.pittstate.edu/office/business-office/gus-finance-and-procurement-training-materials.html

11. Year end processing dates – Business Office Note that GUS Cloud transactions must be Workflow Approved by 12:00pm on the above date. If the transaction has been submitted but is not fully approved, it will not make it in FY19. If a transaction should not be paid until FY20, please do not submit it until 07/01/2019.

12. Year end processing dates – Cashier’s office

13. Year end processing dates – Purchasing Office Note that GUS Cloud requisitions and purchase orders must be Workflow Approved by 12:00pm on the above date. If the transaction has been submitted but is not fully approved, it will not make it in FY19. If a transaction should not be paid until FY20, please do not submit it until 07/01/2019.

14. Foundation year end

15. Year end processing dates – Foundation Note that GUS Cloud transactions must be Workflow Approved by 12:00pm on the above date. *Deposits- FY is determined by when the revenue was earned. Important to take checks, cash and credit card to the Office of Advancement Services ASAP.

16. Foundation – Funds and Spending • PSU Foundation, Inc. is an IRS 501 (c) (3) charitable organization • The Foundation is the only entity that can issue a qualified charitable gift acknowledgement for donations in support of PSU which would be recognized by the IRS • Funds held in Foundation funds are the result of charitable gifts or fundraising activities • Must adhere to University policies and IRS regulations; i.e. Travel, IRS guidelines for gifts, prizes or awards, etc. • It DOES matter and is important how Foundation funds are spent • Expenditures are reviewed quarterly by the Finance Committee • KS Board of Regent auditors will audit every 5 years for all prior 5 fiscal years; descriptions and explanations are vital • Transparency to our donors

17. Foundation – Fund Descriptions • Foundation Funds • 412U – Annual Budgeted Allocated Funds – Funds will lapse at Fiscal Year End • 432u – Expendable Funds (Current Gifts or Endowment Earnings) – Funds can be spent • 442p – Permanent Endowment – Funds can not be spent • 442U – Quasi Endowment – Funds can be spent (some stipulations may apply) • Funds must first be transferred to Fund 432U in order to be spent • 443u – Residual Endowments Earnings (Accumulated Endowment Earnings ) – Funds can not be spent All Funds except Fund 412U will roll to the next FY

18. FOUNDATION – Cost Center Balances

19. Foundation – FY19 Accruals • Foundation uses accrual basis method vs. University uses cash basis method • Accrual basis – revenue is recorded when earned and expenses are recorded when consumed • ALL transactions posting in July as FY20 but are identified as FY19 transactions will be accrued • Accruals are posted by Journals and have the descriptions “Accrue FY19…” in Jun-19 and “Rev FY20…” in Jul-19 • The original posting of the transaction in July-19 along with the journal “Rev FY20….” will net to $0 • The journal posting to June-19 will reflect the actual amount of the transaction in the appropriate fiscal year

20. Foundation – Cost Center Balances 07/01/19 until FY19 Close • WARNING!!!! Proceed With Caution • Cost Center balances will not be correct for Foundation funds if pulling a July-19 Cost Center Balance report beginning 07/01/2019 until FY19 has been closed; 07/19/2019 anticipated closing of FY19. • Why? • Accruals are being backed out of July-19 and posted back to June-19 - Deposits and Expenditures • Earnings will be backdated to 06/30/2019 • Once all accruals are completed and earnings posted, closing entries will be done and balances rolled forward • How to find your balance during the interim time: • Take Jun-19 Cash Balance + Jul-19 Revenue – Jul-19 Expense = Actual Balance at that time

21. Foundation – Annual Earnings • Endowment Earnings • Must wait for all 06/30/2019 investment statements to be received; typically received by 07/15 • Earnings will be backdated and posted as 06/30/2019 transactions • All earnings are posted to the Fund 443U; some special stipulations may apply ( i.e. % to Corpus ] • Spending Policy approved annually by the Investment Committee and Executive Board • Spending policy amount will be transferred out of Fund 443U and received in Fund 432U

22. Foundation – Annual Audit • The Foundation is required to have an annual audit each year by an external Audit firm • Items audited: • Financial Statements at 06/30/2019 • Gift agreements along with expenditures to ensure that they meet the donor’s intent • Adequate supporting documentation [i.e. itemized receipts, invoices, travel forms ] • Each transaction tells a story and should be able to answer “Who, What, When, Where, and Why” • Policy compliance • Internal controls • Proper approvals have been completed • Compliance with FASB (Financial Accounting Standards Board) • Different from University which is under GASB [Governmental Accounting Standards Board]

23. Foundation – Annual Audit (cont’d) • Audit begins 09/03/2019 by the external Audit firm • Audit report issued no later than 10/01/2019 per State of Kansas requirement • Audit report is also used by KS Board of Regents, Standard & Poors, and many others • The Foundation has received a clean audit opinion (a.k.a unqualified opinion) for many years • VERY IMPORTANT for continued fundraising efforts by PSU as The Foundation has shown trustworthiness to their donors Thank you for all your assistance in helping The Foundation attain and continue to receive a clean audit! #teamwork #oneforallandallforone

24. Gus cloud & year end update Wrap up and questions

25. Contact information • Business office • Barbara winter (bwinter@pittstate.edu) Ext. 4152 • Kortney bevins (kbevins@pittstate.edu) ext. 4448 • Rachel Cameron (rcameron@pittstate.edu) ext. 4150 • Christina davis (cdavis@pittstate.edu) ext. 4159 • Teresa kolarik (tkolarik@pittstate.edu) ext. 4151 • Brighid Dawson (bdawson@pittstate.edu) ext. 4158 • Purchasing office • Jim hughes (jhughes@pittstate.edu) ext. 4154 • Brad stefanoni (bstefanoni@pittstate.edu) ext. 4169 • Barbara Jemison (bjemison@pittstate.edu) ext. 4167 • Cashier’s office • Don hartshorn (dhartshorn@pittstate.edu) ext. 4153 • Lyndy little (llittle@pittstate.edu) ext. 4161. • Foundation • Shari Brogan (sbrogan@pittstate.edu) ext. 4936 • Kindrao’connor (koconnor@pittstate.edu) ext. 4760 Don’t forget to watch Yammer for important updates and reminders as we approach year end, and check out our redesigned Business Office website.