Year-End Closing of the Books - PowerPoint Presentation

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Year-EndClosing of the BooksFY 2016

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Overview of Closing

Why?

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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Why?

Annual reporting – internal & external

Rolled into State of Oregon financial statements

Used by stakeholders such as general public, federal agencies, HECC, federal F&A rate setters, accrediting agencies, NCAA, creditors and bond services, etc…

Auditors – 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 & A-133), Secretary of State, etc…

Overview of Closing

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What?

Recording activity that takes place between:

July 1, 2015 and June 30, 2016

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 18, 2016Applies to all funds in FIS regardless of the source

Overview of Closing

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What?

Close fiscal period 12 and open fiscal period 14

Fiscal period 12:

Record June and remaining FY16 activity

Fiscal period 14: Review and post necessary corrections/accrualsDepartments have first week BAO/BRP/SPS have additional timeCAFAR team extracts data and populates reporting systemClose fiscal period 14 (FY16)

BAO collects all

FY16

transactions through the date financial statements are issued in November to report subsequent events

Overview of Closing

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Balance Sheet Account Codes(FGITBAL – General Ledger)

A = Assets

B = Liabilities

C = Control Accounts (Income Statement Totals)

D = Fund BalanceE = Fund AdditionsF = Fund DeletionsWhen FP12 is closed and FP14 is opened, actual income/expense account balances from FY16 FP12 are closed into FY17 fund balance.

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Income Statement/Balance Sheet

FWIBUDG

FGITBAL

Income Statement

Balance Sheet

Revenue

0XXXX

C0010

Labor

1XXXX

C2010

General Expense

2XXXX-8XXXX

C1010

Transfers

9XXXX

C5010

Fund Bal

D0010

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FY17 Beginning Balances

Before period 14 is opened, FY17 balances only include FY17 transactions

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FY17 Beginning Balances

When period 14 is opened,

FY16

period 12 ending balances become

FY17 beginning balances (recorded in period 00)Document type YEOB, numbered GLRL16XXThen, each entry posted to FY16 during period 14 has a mirror entry in FY17 period 00

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Subsidiary Ledgers

Provide a greater amount of detailed information

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 Receivable

B0190

Received

Items Payable

A3106

Sundry Receivable

B5120

Prepaid Tuition & Fees

A3702

AR from Affiliated Foundation

B5802

Unearned 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 19th

These reports must be reconciled to Banner as of 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 SIS

A3110

Travel Advance

Receivable – Non-SIS

A3130

Restoration Fund

Receivable

A3131

Catering

Accounts Receivable

A3132

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

University of Oregon

Non-Student Accounts Receivable Aging

As

of June 30,

2016

Department:

 

 

Fund:

 

 

Acct Code:

 

 

Prepared by:

 

 

Approved by:

 

 

 

 

 

Date Submitted:

 

 

 

 

 

 

 

 

Due

Description of

Current

Year

1-2 Years

2-3 Years

3-4 Years

4-5 Years

5 Years or

Total*

From

Charge

FY16

FY15

FY14

FY13

FY12

 

Older

 

 

 

 

 

 

 

 

0

 

 

 

 

 

 

 

 

0

 

 

 

 

 

 

 

 

0

 

 

 

 

 

 

 

 

0

 

 

 

 

 

 

 

 

0

 

 

 

 

 

 

 

 

0

 

 

 

 

 

 

 

 

0

 

 

 

 

 

 

 

 

0

 

 

 

 

 

 

 

 

0

 

 

 

 

 

 

 

 

0

 

 

 

 

 

 

 

 

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0

 

 

 

 

 

 

 

 

0

 

 

 

 

 

 

 

 

0

 

 

 

 

 

 

 

 

 

 

Total

0

0

0

0

0

0

0

*

Totals must reconcile

to the General Ledger by fund and account

Banner FGITBAL Balance:

0

0

0

0

0

0

List indexes associated with this

reconciliation:

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Cut-Off Guidelines & Accruals

According to Generally Accepted Accounting Principles (GAAP), accrual accounting

requires:

E

xpenditures to be recorded in the fiscal year and period in which the goods or services are received, regardless of when payment is made.Revenue to be recorded in the fiscal year and period in which the goods or services are provided, regardless of when payment is received.Accounts ReceivableUnearned RevenuePayablesPrepaid Expense

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Unearned and Undistributed Revenue Accruals

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, 2016 should be coded to unearned revenue account code (B5802). Post a reversing journal voucher with a transaction date in the future fiscal year and period that the goods or services will be provided. This journal voucher may be processed at the same time, if the future 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 Revenue

B5817

Unredeemed Gift Cards/Certificates

Undistributed Revenue

B5801

Undistributed Revenue

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Payable AccrualsFor goods or services received by June 30th

for

which

vendor invoices have

not been received as of July 18th, 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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Payable AccrualsFor invoices paid with an FY17 transaction date

for goods or services that were provided by June 30

th

, input a JV to record the payable in FY16.

To record the payable and expense in FY16:Debit       Department Index            Expense Account CodeCredit      Department Index            Received Items Payable B0190To reverse the accrual in FY17:Debit       Department Index            Received Items Payable B0190

Credit      Department Index            

Expense Account Code

* After July 18

th

(dept. lockout), please provide the information to BAO Financial Services

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Prepaid Expense Accruals

Prepaid Expense:

Expenses for future fiscal years that are paid prior to June 30, 2016 should be

coded to a prepaid expense account code. Post a reversing journal voucher with a

transaction date in the future fiscal year and 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 FY16, that should be prepaid expenses for future years:Debit       Department Index            Prepaid Expense (A5013 – A5030)Credit      Department Index            Expense Account Code

To 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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Prepaid Expense Account Codes

Account Code

Account Code Title

A5013

Prepaid Worker’s Comp InsuranceA5019Prepaid Services & SuppliesA5020Prepaid TravelA5021Prepaid Subscriptions/Memberships

A5022

Prepaid

Capital Assets

A5023

Prepaid 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, 2016.

To record the deposit in transit by JV with a June 2016 date:

Debit Dept. Index A0951 Cash-Department Deposit In Transit

Credit 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, 2016:Debit CASH, CHEK, or CARD depending on how the payment was receivedCredit Dept. Index A0951 Cash-Department Deposit In Transit

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Dates to Remember:

June 8

June regular payroll deadline

June 17

Contact BAO for help accruing department non-student accounts receivableJune 28 Last day to submit wire transfer to APJune 30 Last day to submit student receivablesJune 30 Last day to deposit cash by 3:00pmJune 30 Goods and services must be received by this date to pay with FY16 funds

July 5

Last day to submit payroll form (PAA)

for FY16

**(Items input in July require a 30-JUN-2016 transaction date)**

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Dates to Remember:

July 8

Last day to submit upload JVs for period 12 (

Z

documents through AppWorx)July 11 Last day to liquidate encumbrances that shouldn’t roll to FY17July 11 Last day to submit budget changes for period 12July 11 Last day to input an invoice for period 12July 11 Last day to input JVs for period 12

July 11 Period 12 Close (5:00pm)

July

12

Period

12 reports are

available

**(Items input in July require a 30-JUN-2016 transaction date)**

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Dates to Remember:

July 18

Last day to input JVs for period 14

July 18

Last day to input budget changes for period 14 July 18 Last day to input an invoice for period 14 July 18 Campus lock-out (5:00pm)July 19 Detail and aging reports due for all non-SIS accounts receivable

For assistance with FY16 transactions after the lock-out, contact

BAO General Accounting.

**(Items input in July require a

30-JUN-2016 transaction

date)**

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Dating FIS Documents

After June 30

th

, any document input for FY16 must have the transaction date changed to

30-JUN-2016This includes:Budget changesInvoicesJVsTravel reimbursements

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EncumbrancesAll open encumbrances (except zero balance items) will be rolled into FY17 Banner FIS operating ledger

Liquidate and close any encumbrances that you do not want to roll into FY17 before the close of period 12 (July 11th)

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Late FY16 and Subsequent Event Reporting

Report FY16 activity and subsequent events to BAO Financial Services as follows:

July 19 to 31 – for posting into Banner FIS during lock-out

August – to be included in UO Financial Statements

September to October – late reporting

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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, Design & Construction

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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FY16 Accomplishments

UO’s second revenue bond sale

Facilities and administrative rate proposal in negotiations

Expanded

Cognos IDR reportingUniversity of Oregon account code reference webpage is online https://fpm.uoregon.edu/accountcodes

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Looking ahead to FY17 BAO moving to Thompson University Center

Continuing to update adopted policies

Fleet copier lease rollout

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

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Useful Links

Year End COB Instructions and Deadlines FY16

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

UO Financial Statements

http://ba.uoregon.edu/staff/financial-reports

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