Year-End Closing of the Books - PowerPoint Presentation

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Year-EndClosing of the BooksFY 2018

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Overview of Closing

Why do we close?

GAAP – Generally Accepted Accounting Principles

End of the business cycle:

State sessions end in June

UO activity begins with summer session (excluding Law)

Federal (GASB) & State requirements

UO mandated deadlines in order to meet required State deadlines

Snapshot in time

YTD activity (FWIBUDG) and year-end balances (FGITBAL) are used to

monitor, project, budget, evaluate performance, perform system audits, analyze anomalies, audit, compare and contrast with other years/funds/institutions etc…

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Annual reporting – internal & external

UO issues annual audited financial statements

Used

by stakeholders such as general public, federal agencies,

UO Board of Trustees, HECC, federal F&A rate setters, accrediting agencies, NCAA, creditors and bond services, etc…Rolled into State of Oregon financial statementsAuditors – internal & externalTest for accuracy, consistency, completeness, cutoff, & reliability of systems including our policies & proceduresHelp us establish best practicesIncludes: UO Internal Audit, DHHS, Naval Research, NCAA, Moss Adams (financial statement & Single Audit), Secretary of State, etc…

Overview of Closing

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Recording activity that takes place between:

July 1, 2017 and June 30, 2018

Transactions must be recorded in the fiscal year that the

event

takes place, regardless of when budget or cash is availableIncludes accruals posted by July 17, 2018Applies to all funds regardless of the source

Overview of Closing

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Fiscal period 12

Record

June and remaining

FY18 activity

Fiscal period 14 (opens after closing fiscal period 12)Review and post necessary corrections/accrualsDepartments have one week BAO/BRP/SPS have additional timeBAO CAFAR/Accounting team Extracts data for reportsAnalyzes transactions for correctness

Records system-wide accruals

Accumulates and records remaining FY18 transactions

Issues audited financial statements

Closes fiscal period 14

Overview of Closing

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Balance Sheet Account Codes(FGITBAL – General Ledger)

A = Assets

B = Liabilities

C = Control Accounts (Operating Ledger Totals)

D = Fund BalanceE = Fund AdditionsF = Fund DeletionsWhen FP12 is closed, FP14 opens and FY18 FP12 operating ledger balances are summarized and become part of FY19 beginning fund balance.

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Operating and General Ledgers

Operating Ledger

General Ledger

FWIBUDG

FGITBAL

Revenue

0xxxx

C0010

Labor

1xxxx

C2010

General Expense

2xxxx-8xxxx

C1010

Transfers

9xxxx

C5010

Fund Balance

D0010

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FY19 Beginning Balances

Currently FY19 balances only include FY19 transactions.

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FY19 Beginning Balances

When fiscal period 12 closes, the ending

balances

are summarized and posted to FY19 general ledger

Recorded in fiscal period 00 (beginning balance)Document type YEOB, numbered GLRL18xxDuring fiscal period 14 each entry posted has a corresponding general ledger entry in FY19 fiscal period 00Identifiable by its June transaction date

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Subsidiary Ledgers

Provide a greater amount of detailed information for general ledger account balances

FIS Examples – Student A/R, Grants Billing Module, Fixed Asset System, Accounts Payable

Complimentary (shadow) systems are often used by departments as subsidiary ledgers (examples – QuickBooks, Excel, Access)

Subsidiary ledgers must be reconciled to Banner FISThe FIS general ledger is the official source of financial information for the UO

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Subsidiary Ledgers

General ledger account codes require supporting detail schedules reconciled to Banner FIS. Commonly used accounts include:

Account Code

Account Code Title

Account CodeAccount Code TitleA3103Misc Accounts ReceivableB0190Received Items Payable

A3106

Sundry Receivable

B5120

Prepaid Tuition & FeesA3702AR from Affiliated FoundationB5802Unearned Revenue

A4002

Organized Storeroom Inventories

B5817

Unredeemed Gift Cards/Certificates

A5019

Prepaid Services & Supplies

B5801

Undistributed Revenue

A5020

Prepaid Travel

A5021

Prepaid Subscriptions/Memberships

A5022

Prepaid Capital

Assets

A5023

Prepaid Software Expenditures

A5030

Prepaid Miscellaneous Expense

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Non-SIS Accounts Receivable

Each department must submit a detail and aging report of their non-SIS accounts by July 18th

http://pages.uoregon.edu/baoforms/bao_drupal_6/sites/ba.uoregon.edu/files/forms/yearendar.xlsx

These reports must be reconciled to Banner as of fiscal period 14 (generally use FGITBAL)

Includes all receivables from entities that are external to UO

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Non-SIS Accounts Receivable

Account Code

Account Code

TitleA3101Misc Advances Receivable-Non SISA3103Misc A/RA3106Sundry ReceivableA3109NIBL-Non SISA3110Travel Advance Receivable – Non-SIS

A3130

Restoration Fund

Receivable

A3131Catering Accounts ReceivableA3132

Setup/Tech Accounts Receivable

A3133

Child Care Accounts Receivable

A3134

USDA

Accounts Receivable

A3135

Season

Ticket Accounts Receivable

A3702

AR from Affiliated Foundation

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Non-SIS Accounts Receivable

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Cut-Off Guidelines & Accruals

According to

GAAP,

accrual accounting

requires:Expenses to be recorded in the fiscal year and fiscal period in which the goods or services are received, regardless of when payment is made.PayablesPrepaid ExpenseRevenue to be recorded in the fiscal year and fiscal period in which the goods or services are provided, regardless of when payment is received.Accounts ReceivableUnearned Revenue

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Unearned and Undistributed Revenue

Unearned Revenue -

Payments received for goods or services which have not yet been provided.

Revenue applicable to

future fiscal years that is received prior to June 30, 2018 should be coded to unearned revenue account code (B5802). Post a reversing journal voucher with a transaction date in the future fiscal year and fiscal period that the goods or services will be provided. This journal voucher may be processed at the same time, if the future fiscal period is open.

Undistributed Revenue -

Revenue earned for goods or services and not yet distributed.

Undistributed

revenue (B5801) should be cleared to zero by year-end close.

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Unearned Revenue Accruals

To deposit payment through TWADEPO when it is received:

Debit

(CASH, CHEK, CARD, or BANK depending how revenue was received)Credit (MISC) Department Index           Unearned Revenue Account Code (B5XXX)To remove the unearned revenue and recognize revenue in the future year:Debit       Department Index           Unearned Revenue Account Code (B5XXX

)

Credit     

Department

Index           Revenue Account Code

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Unearned & Undistributed Revenue Account Codes

Account Code

Account Code Title

Unearned Revenue

B5120Prepaid Tuition & FeesB5802Unearned RevenueB5816Athletics Prepaid RevenueB5817Unredeemed Gift Cards/CertificatesUndistributed Revenue

B5801

Undistributed Revenue

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Payable AccrualsFor invoices paid with an FY19 transaction date

for goods or services that were provided by June 30

th

, input a JV to record the payable in FY18.

To record the payable and expense in FY18:Debit       Department Index            Expense Account CodeCredit      Department Index            Received Items Payable B0190To reverse the accrual in FY19:Debit       Department Index            Received Items Payable B0190Credit      Department Index            Expense Account Code

* After July 17

th

(dept. lockout), please contact BAO Financial Services for processing

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Payable AccrualsFor goods or services received by June 30th

for which vendor invoices have

not

been received as of July 18

th, fill out an AP Report and forward it to BAO Financial Services along with backup.http://ba.uoregon.edu/sites/ba/files/forms/yearendap.pdf

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Prepaid Expense Accruals

Prepaid Expense:

Expenses of

$5,000 or more

for goods or services that will be entirely or partially received in future fiscal years should be allocated to a prepaid expense account code. Post a reversing journal voucher with a transaction date in the future fiscal year and fiscal period that the goods or services will be received. This journal voucher may be processed at the same time,if the future period is open.For amounts posted as expense in FY18, that should be prepaid expenses for future years:Debit       Department Index            Prepaid Expense (A5013 – A5030)Credit      Department Index            Expense Account CodeTo remove the prepaid and recognize the expense in the future year:

Debit       Department Index            Expense Account Code

Credit      Department Index            Prepaid Expense (A5013 – A5030)

*** Tax reportable expenses must first be coded to an expense account code when processing an invoice.

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Common Prepaid Expense Account Codes

Account Code

Account Code Title

A5019

Prepaid Services & SuppliesA5020Prepaid TravelA5021Prepaid Subscriptions/MembershipsA5022Prepaid Capital AssetsA5023Prepaid Software Expenditures

A5030

Prepaid Miscellaneous Expense

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Departmental Deposits in TransitPlease record a departmental deposit in transit for payments you have received in June, but cannot deposit with the Cashiers Office by June 30,

2018.

To record the deposit in transit by JV with a June

2018

date:Debit Dept. Index A0951 Cash-Department Deposit In TransitCredit Dept. Index Revenue, Unearned Revenue, Accounts Receivable, etc.To make the physical deposit with UO Cashiers using Banner form TWADEPO as soon as possible after June 30, 2018:Debit CASH, CHEK, or CARD depending on how the payment was receivedCredit Dept. Index A0951 Cash-Department Deposit In Transit

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Internal

Sales, Transfers, and Moving Transactions

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Dates to Remember:

June 8

June regular payroll deadline

June 16 Contact BAO for help accruing department non-student accounts receivableJune 27 Last day to submit wire transfer to AP by 10:00amJune 29 Last day to submit student receivablesJune 29 Last day to deposit cash by 3:00pmJune 30 Goods and services must be received by this date to pay with FY18 funds

**(Items input in July require a 30-JUN-2018 transaction date)**

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Dates to Remember:

July

9

Last day to submit upload JVs for fiscal period 12

(Z documents through AppWorx)July 10 Last day to liquidate encumbrances that shouldn’t roll to FY18July 10 Last day to submit budget changes for fiscal period 12July 10 Last day to input an invoice for fiscal period 12July 10 Last day to input JVs for fiscal period 12July 10 Period 12 Close (5:00pm)

July

11

Period

12 reports are available

**(Items input in July require a 30-JUN-2018 transaction date)**

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Dates to Remember:

July 17

Last day to input JVs for fiscal period 14

July 17

Last day to input budget changes for fiscal period 14 July 17 Last day to input an invoice for fiscal period 14 July 17 Departmental lock-out (5:00pm)July 18 Detail and aging reports due for all non-SIS accounts receivable

For assistance with FY18 transactions after the lock-out, contact

BAO Accounting.

**(Items input in July require a

30-JUN-2018 transaction

date)**

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Dating FIS Documents

After June 30

th

, any document input for FY18 must have the transaction date changed to

30-JUN-2018This includes:Budget changesInvoicesJVs

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EncumbrancesAll open encumbrances (except zero balance items) will be rolled into FY19 Banner FIS operating ledger

Liquidate and close any encumbrances that you do not want to roll into FY19 before the close of fiscal period 12 (July 10th)

http://pages.uoregon.edu/baoforms/bao_drupal_6/sites/ba.uoregon.edu/files/yearendencumbranceproceduresflowchart.pdf

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Late FY18 and Subsequent Event Reporting

Report all FY18 activity and subsequent events to BAO Financial Services as follows:

July 18 to 31 – for posting into Banner FIS during lock-out

August through October – reviewed on a case by case basis for inclusion in the financial statements

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Reporting Property Not Owned by the UO

To provide required information for leased asset year-end reporting

To provide adequate insurance coverage

FWIFLST – Banner query form to review inventory records

Leased Property (Acquisition codes LE/LP)Rented Property (Acquisition code RT)Loaned Property (Acquisition code LN)

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Real Property

Performed in conjunction with BAO Property Control and Campus Planning and Facilities Management

Capitalization of construction in progress (CIP) expenses

BAO moves debt from plant funds to operating

fundsConversion of completed projects into the Banner FIS real property recordsComponentization of specified buildings used extensively for research

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FY18 EventsConcur

Blended OPE

Duck Depot

Base year for Facility & Administrative (F&A) rate

New IT account codes

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Looking ahead to FY19 Banner 9Streamlining chart of account requests

F&A Proposal

Knight Campus construction

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BAO Financial ServicesBusiness Affairs - http://ba.uoregon.edu/content/contacts

General Accounting, CAFAR, and Property Control –

http://ba.uoregon.edu/content/accounting-and-financial-management-contacts

Travel (6-3158) - http://ba.uoregon.edu/content/travel-office-contacts Accounts Payable (6-3143) - http://ba.uoregon.edu/content/ap-invoice-payment

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Useful Links

Year End COB Instructions and Deadlines FY18

http://ba.uoregon.edu/content/year-end-close

UO Financial Statements

http://ba.uoregon.edu/content/financial-reportsUO Formshttps://forms.uoregon.edu/