Agenda Introduction Brian Fahnestock Fiscal Close Overview Victor Cesario Fiscal Closing Transactions Victor Cesario APDisbursements amp Travel Tanya Harris Encumbrances amp Purchasing Melissa Lee ID: 816774
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Slide1
Fiscal Close Workshop 2019
Slide2Agenda
Introduction
– Brian FahnestockFiscal Close Overview –Victor CesarioFiscal Closing Transactions – Victor CesarioAP/Disbursements & Travel – Tanya HarrisEncumbrances & Purchasing – Melissa LeePayroll – Ashley PennyContracts & Grants – Beata NajmanDecision Support – Kevin ChungQuestions
2
Slide3What is Fiscal Close?
Fiscal Close is the process of:
Ensuring that our financial data is accurate for the ending fiscal year; Organizing the campus financial records for inspection by auditors; Creating our yearly financial statements which are then consolidated with the other UC campuses into system-wide statements and reports for the Regents and the public.3
Slide4UC Annual Financial Report
4
Slide5Highlights for 2018-19 close
Many key dates this year will be on Wednesdays again instead of Fridays (e.g. Period 12 close, final close).
Only Income on Control Accounts need to be budgetedThe Account Global can now be used to close multiple accounts at once5
Slide6Responsibilities
Departments
and their coordinating points are responsible for seeing that all income and expense is recorded accurately and that all accounts close in a solvent condition.The Accounting Office is responsible for consolidating data, preparing year end reports and statements for the Office of the President, and producing the final ledger. There are over 130 close steps this year from UCOP.
6
Slide7July 5
– Recharges (IB, SB, and Feeders) completeJuly 10 – PrelimJuly 17 – Interim – Period 12 will close in KFS, and certain non-final docs will be
canceled
(GEC, BA, BAT,
YEDA, AVs).
Key Dates
July 31
– Final
August 7
– July FY20 will close
7
Slide8Fiscal Close
What to Expect
8
Slide9What You Need to Know to Close the Year
June
28 – Deposits: Medical Center CRJune 28 1pm - COD and CCR for Campus CashiersJuly 3rd 5pm– Last day CBSO Invoices for FY 19
June
28
– Last day to initiate any KFS Maintenance
Changes (Resumes July 18
th
)
July 1-July 17
Accounting Reviewer
Bypass
(BA
, BAT,
GEC & DI
documents ONLY
)
Fiscal Officer still required to approve GEC & DI
July 1
-July 17
Action List Reminder/Daily E-mail
9
Slide10Use the Account Global to close multiple Accounts
10
See the Account Global Guide for more information.
Slide11What You Need to Know to Close the Year
July
10 – Last day for the following documents for Fiscal Period 12:Advanced Deposit (AD)Distribution of Income and Expense (DI)11
Slide12What You Need to Know to Close the Year
July
17 – Last Day for Fiscal Period 12 FINAL KFS initiated documents:AVBAs & BATsGECsYEDAs
(Available
July
11
– July
17)
12
Slide13Credit Balances on Expense Objects
Beginning now,
departments should start reviewing their Object Codes for any Credit Balances.Using the Object Code Balance Report and selecting Credits Only, you will be able to return a list of all Credit Objects.Departments cannot close the Fiscal Year with a Credit Balance in an Object Code for Year-To-Date (Non-C&G) accounts.13
Slide14Accruals & Deferrals
Quick Guide to Processing Accruals & Deferrals
(Year to Date Funds)Fiscal Close 2018-1914
Slide15Why Accruals & Deferrals?
In accordance with
UCOP Accounting Policies & Procedures, financial activity must be recorded in the Fiscal Year that relates, corresponds, or supports that activity.15
Slide16Recording Accruals & Deferrals
KFS Document available July 11 = YEDA
(Year End Department Accrual/Deferral)Minimum amount ≥ $10,000(Expenses per Invoice)Minimum amount ≥ $5,000(Capitalized Equipment)Minimum amount ≥ $35,000(Plant - Capitalized Construction costs)16
Slide17What is an Accrual?
Income
Income earned for the previous Fiscal Year but not posted until the new Fiscal Year.ExpenseExpenses for activity incurred in the previous Fiscal Year but not posted until the new Fiscal Year.RechargeEE type expenses for activity incurred in June but will not be recharged until July. Exceptional circumstances must exist such as expiring funds.
17
Slide18Income Accrual
Income
submitted for services rendered in FY 18-19 but payment outstanding or received after check deposit deadline18
Slide19Expense Accrual
PO#xx-xxxx, Inv#1xxxxxVendor: ANTEATER DELICIOUS FOOD
Goods Received:
6/30/19
Contact: Anteater
After
July
11
th
19
Slide20Recharge Accrual (YERA)
Available only the first 2 days of
YExx documents. (7/11-12)Recharge Accruals are only allowed if special circumstances exist such as FY (June) expiring funds.Both departments (sides of the transaction) must agree prior to the initiation of the YERA.Document will not be finalized by Accounting until the FO’s accept the FYI route log/workflow nodes.Budget documents must be processed if applicable.https://accounting.uci.edu/fiscalclose/yera.html
20
Slide21YERA Route Log/Workflow
Documents will not be finalized by Accounting until the FO’s accept the FYI in their Action list for this document.
21
Slide22What is a Deferral?
Income
Income that you received in the previous Fiscal Year but relates/corresponds/supports activity that will not happen until the new Fiscal Year.ExpenseExpenses that you paid for in this Fiscal Year but relates/corresponds/supports activity that will not happen until the new Fiscal Year.
22
Slide23Income Deferral
Event: Summer Pre-Med Program - revenue received in May 2019 but event expenses will not be recorded until September
2019.
Event: MOCA course revenue received in Jan-June
2019,
but expense will not be recorded until September-November
2019.
Department Contact: Anteater
23
Slide24Expense Deferral
Defer CMSF Lab Expenses for Summer Session I 2019 to FY 2019-2020.
Revenue for
SS2019
will post FY
2019-2020
24
Slide25Appropriating/Budgeting Income
Control Accounts (UC # # # # #) vs. Operating Accounts
25
Slide26Control Accounts Income Variances
Control Account Income Variances
must be allocated26
Slide27Control Account Income Object Variances
$0 Income
Variance by Chart, Control Account & Object Only the whole variance for the Chart, Control Account & Object needs to be addressed, regardless of Sub-Accounts, Sub-Objects, and Project Code
27
Slide28Control Account Income Object Variances
$0
Variance by Chart, Control Account & Object
28
Slide29Operating Accounts Income Variances
No Action Required
for Income Variances in Operating Accounts29
Slide30New Fiscal Year
What to Expect
30
Slide31New Fiscal Year
July 1 (KFS Transactions)
Carry Forward Balances = EXPENSE: Budget minus Actuals INCOME: Actuals minus Budget Goes to Expense Object Code 0008 Consolidation Code UNAL Fiscal Period BB vs. CB31
Slide32Intercampus Expense Transfers
(ICT Document)
June 28, 4pmDue in General Accounting32
Slide33UC Campus Tab
33
Slide34AP/Disbursements
Travel
Tanya Harris34
Slide35Invoices Deadlines
Invoices must be submitted to Accounts Payable no later than
July 8th 4pm.Email Invoices to accounts-payable@uci.eduInvoices for FY 2018-19 that are not processed by July 8th must be accrued by the department if the expense is greater than $10K.
35
Slide36Invoices Tips
When sending invoices to AP to pay please ensure the PO has enough
money, is open and valid.Invoices must be submitted to Accounts Payable no later than July 8th. Email to accounts-payable@uci.edu
36
Slide37TEM and DV
All TEM and DV documents need to be submitted, scanned and approved by Travel Accounting by 4 p.m. on
June 21st to be recorded as expenses for 2018-19.Continue to initiate your documents after June 21st. Travel Accounting will make every effort to approve your documents by the June 28th deadline.37
Slide38TEM and DV Cont’d
Anything approved after June
28th will be posted in the next fiscal year.Anything with a travel end date older than six months will need exceptional approval. Any travel with an end date older than a year cannot be processedFor Travel Fiscal Close Questions contact travel-accounting@uci.edu 38
Slide39Upload Scanned Documents
Fastest and most reliable way to attach supporting documents to your reimbursement
You cannot upload files until the KFS document has been saved or submitted.Make sure that sensitive or personal data is redacted. Files cannot be deleted, and no redaction can delay approvals.You can Scan or take a photo to upload.39
Slide40Encumbrances & Purchasing
Melissa Lee
40
Slide41Encumbrances
Encumbrances are established by
Purchase OrdersTravel AuthorizationsPre-Encumbrance DocumentsDepartments are responsible for closing out leftover Encumbrance balancesOpen Encumbrance= PO/TA is open with a balanceLeftover Encumbrance= No more activity is expectedReference Document Number is the PO # or Trip #41
Slide4242
Encumbrance Information
Slide4343
Encumbrance Lookup in KFS
Slide44Encumbrance Report
44
Slide45Encumbrance Report
45
Slide46Encumbrance Carry Forward
Encumbrance Carry Forward
before 7/17/19:External Encumbrance (EX) = Carry ForwardPurchase OrdersCost Share Encumbrance (CE) = Carry ForwardAn encumbrance related to a cost-share account
Internal Encumbrance (IE) = Carry Forward
Travel
Authorizations
Pre-Encumbrance (PE) = No Carry Forward
46
Slide47Closing a PO Encumbrance
Perform a Custom Document Search for Purchase Order (PO)
The Reference Document Number is the PO#Open the latest PO/PO AmendFiscal Officers & Contract Managers can select the “Close Order” button to close/clear out the encumbranceContract Managers can select “Void Order” button for POs with no activity47
Slide48Closing a TA Encumbrance
Perform a Custom Document Search for Travel Authorization (TA)
The Reference Document Number is the Trip Number #Open the latest TA/TA AmendArrangers & Initiators can select the “Close Trip” button to close/clear out the encumbranceFor TAs with Cash Advances, Travel Accounting will close the TA when it is expensed out48
Slide49Purchasing Deadlines
Please see the 2018-19 Fiscal Year-End Close Information & Dates email, for full deadlines & details
Special Purchasing Deadlines:Last Day to submit FY 2018/19 High Value PO & PO Amends to Central Purchasing: June 7Last Day to submit a PO Close request to Central Purchasing: June 24Last
Day to close
fulfilled
Low Value
POs:
June
28
All PO & PO
Amends must be final on
June
28
to post to the
2018-19
Fiscal
Year
Submit Early! Department & central approvals take time
49
Slide50Purchasing Deadlines
Special PALCard Deadlines:
Last PALCard Feed from US Bank for FY 18/19: July 3Last Day to review/finalize ALL pending PCDOs: July 10All PCDOs enroute in the system will auto-approve at 8:00pm on July 10, no matter the create date.
Any corrections after must be done via GEC by
July 17
for 2018-19
Fiscal
Year
Submit early to allow adequate time for department and central approvals
PCDOs for FY 19/20 will not be created until after Period 12 close
50
Slide51Purchasing/AP Corrections
Do not Accrue Encumbrances
Only Accrue/Defer Payments (PREQ or CM) that hit the wrong fiscal year via the YEDA Include the payment reference document in ExplanationAll docs now accept PDF, CSV, and XLS (Excel) files in Notes and Attachments tabGeneral Error Correction = July 17 deadline Documents posted to July cannot ‘post back’ to JuneWill receive an “Invalid future Accounting Period” errorAbsolutely no corrections to fiscal year funds can be made after Period 12 Closes, no matter the age of the original ledger post
51
Slide52Purchasing/AP Corrections
Check the Fiscal Year when looking up entries!
New Year = change the Fiscal Year in KFS Ledger LookupsCheck the Selected Posting Period of the GECGEC will default to June, but can easily be changed to July52
Slide53Payroll
2018-19 Fiscal Closing Dates
Ashley Penny53
Slide54June Bi-Weekly (B1) Payroll Time Reporting
D
eadlineJune 20th Pay hours and leave usage for 6/2/19 – 6/15/19 (biweekly)
54
Slide55June Bi-Weekly (B1)
Payroll Cycle
CutoffJune 20th First deadline for:Payroll Expense Transfers Late/Reduce PayAdditional Pay transactionsPay Cycle “B1” and Pay Period End date “061519”
55
Slide56June Monthly Payroll Time Reporting
Deadline
June 24th May 2019 leave usage (monthly)
56
Slide57June Monthly
Payroll Cycle
CutoffJune 25th – June Monthly payroll cycle cutoffSecond deadline for: Payroll Expense Transfers Late/Reduce PayAdditional Pay transactionsPay Cycle “MO” and Pay Period End date “063019”
57
Slide58June Bi-Weekly (B2) Payroll Time Reporting
D
eadlineJuly 3rd Pay hours and leave usage for 6/16/19 – 6/29/19 (biweekly)
58
Slide59June Bi-Weekly (B2)
Payroll Cycle
CutoffJuly 3rd Third deadline for:Payroll Expense Transfers Late/Reduce PayAdditional Pay transactionsZ payments (School of Medicine)
Pay Cycle “B2” and Pay Period End date “062919”
59
Slide60Payroll Expense Distribution Ledgers for June Payroll
July 5
th –PPP5302 payroll ledgers Available in Electronic Document Library (EDL)60
Slide61Special (XX)
Payroll Cycle
CutoffJuly 9th –Final deadline for Payroll Expense Transfers i. Use Pay Cycle “XX” and Pay Period End date “070119
”
***No Late/Reduce or Additional pay transaction. They will be Deleted!***
61
Slide62Payroll Expense Distribution Ledgers for June/July
July 10
th – PPP5302 payroll ledgers available in Electronic Document Library (EDL)62
Slide63Accruals for Transferring Payroll Already
P
aid in 2018-19 Fiscal YearWork with Central Payroll – payroll@uci.edu (GEC-R accrual)Departments process Payroll Expense transferProvide Post Authorization Notification (PAN) to Central PayrollBenefits must move with salaryOnly exception is Contract and Grant funds
63
Slide64Contracts & Grants
Beata Najman
64
Slide65Departmental
Responsibilities
Review accounts in overdraftClear all overdrafts in awards not expected to receive additional fundsEmail fund accountant at C&G Accounting and request closing awards with a zero balanceDo not process any accruals and/or deferrals for C&G fundsNew Report in Decision SupportC&G Overdrafts by Org ID
Closing Steps for Contracts and Grants
Slide66GEC
Routing and Processing Deadline
All GECs involving C&G funds and processed after 120 days from the expense posting date require C&G Compliance review and approval. July 17th is the final date for all FY2019 GECs. If C&G review and approval is required, they need to be fully approved by department before 4 pm. Late GECs processed without proper departmental approvals will not be finalized by C&G Compliance until these approvals are recorded in KFS, and may miss the fiscal close deadline.
Closing Steps for Contracts and Grants
Slide67Private Contracts
ONLY
Fund Range 57100-59993Overdrafts not cleared on June ledger will be zeroed out by Accounting so that the fiscal year can be closed. These entries will reverse on the July ledger, and the overdraft will be reinstated.Closing Steps for Contracts and Grants
Slide68Closing Steps for Contracts and Grants
RAS
DefinitionA request for authorization to spend funds in support of a sponsored project in advance of receiving a notice of an award from a sponsor and/or finalizing the award.RAS Purpose
Allows the setup of a fund and account without an award in place
Allows expenses to be posted to the appropriate expense account
Prevents unnecessary cost
transfers
http://www.research.uci.edu/sponsored-projects/contracts-grants-admin/pre-award-admin/pre-award-spending.html
Request for Approval to Spend Funds (RAS)
Slide69Closing Steps for Contracts and Grants
Request a RAS when:
New award is experiencing processing delays and essential expenses need to be incurred before the award is received and/or finalized allowing fund setup Additional funds are expected under a different award number which is experiencing processing delays
Request
a RAS ONLY
when:
UCI received a firm commitment by an authorized representative of the sponsor;
and
other departmental funds are available to cover monetary risk.
When to Request a RAS?
Slide70Do NOT request a RAS when:
You need to clear an overdraft
When the fund/account has already been establishedClosing Steps for Contracts and Grants
Slide71C&G Accounting – Additional
Responsibilities:
Indirect cost recovery reconciliationSTIP review and posting (applicable if required for an award)Refunds to the Federal government of unexpended fund balancesFinal closing entries and approvals, including GECs over 120 days
Final intercampus transfers and Treasurer Financial Journals
Corrections to invalid transactions
Special reporting to the Budget Office
Reviews of overhead calculation and final accounting data
Reviews of contract and grant activity for income accruals and deferrals, including GASB 65 for contracts and grants.
Closing Steps for Contracts and Grants
Slide72Decision Support
Kevin Chung
72
Slide73Contracts & Grants Overdraft Report
73
Slide74Decision Support Tools
Toggle
Encumbrances in ReportsDWQuery Ad-Hoc QueryOrganization Account StatusYou can query by the highest orgGroups Account Balances by Income and ExpensesEnsure that your Income categories for Control Accounts Budget and Actuals align so the variance is zero.Toggle to see Control Accounts OnlyObject Code Balance Report (FS0219)Shows Expense Object Codes that have credit balances74
Slide75Pre-Run Reports
Reports being pre-run and saved:
Ledger Reconciliation Account SummaryAccount TransactionsFund SummaryGeneral Ledger Posting on Sundays Starting July 07-July 28Reports generated for July 1 – July 17
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Slide76Questions?
Online Resources
Workshop slides available online later this week.Check the “KFS News and Announcements” Portlet on ZotPortal for deadlines.More information is available on the Accounting and Fiscal Services website:www.accounting.uci.edu/fiscalclose/76
Slide77Thank You!
www.accounting.uci.edu/fiscalclose/
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