Jennifer Edmonds Why YearEnd Closing is Important Each year the University is required to issue a report on its financial condition for use by a broad audience These financial statements must be produced in compliance with Generally Accepted Accounting Principles GAAP ID: 240604
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Slide1
Fiscal 2014 Year-End Closing Updates
Jennifer EdmondsSlide2
Why Year-End Closing is Important
Each
year, the University is required to issue a report on its financial condition for use by a broad
audience.
These financial statements must be produced in compliance with “Generally Accepted Accounting Principles” (GAAP
).
To accomplish this, we
convert from a modified cash basis to accrual basis by processing
“accruals”
and
“
prepaids
” for expenses and “receivables”
and
“deferred revenue” for revenues
.
The FAS Office of Finance and affiliated tubs do this at a high level on the quarters during the fiscal year. At year-end we involve all FAS departments.Slide3
Closings - Reviews
In addition to complying with GAAP, we expect departments to do a careful review of transactions to ensure they are charged to the correct fund and those charges are in accordance to fund terms.
The use of object code is also very important and we rely on correct usage for University and FAS-wide financial reporting.
We also rely on departments to carefully review their budget to actual results during the closings to be sure they agree and understand their variances.
A close review of funds should be done to be sure restricted funds are utilized according to plan and before the use of unrestricted funds if possible.Slide4
Closing Documents on the WebsiteSlide5
What’s new in FY14?
Started the process earlier - held two brown bag sessions on year-end
c
losings this week to get depts. preparing for fiscal year-end.
If adjusting an entry for an equipment purchase (using a 68xx object code) must use the new AP Adjustment process which follows AP deadlines.
Oracle Assets is live for two FAS Tubs and goes live for remainder of FAS on 7/1/14.
Reminder that accrual/prepaid threshold is $10,000.
External Auditors, PWC arrive on campus 8/18 – end of Sept., requests for information/documentation may come during that time. Depts. need to have someone available to pull documentation.Slide6
FAS Journal & Accrual Deadlines and HDW Availability
FAS Office of Finance Deadline
Central Deadline
Depts submit to finjrnl@fas.harvard.edu
Depts post directly to Oracle
1st Close
Wednesday, July
2,
noon
Thursday,
July
3,
2 p.m.
2nd Close
Thursday, July
10,
noon
Friday, July
11,
2 p.m.
AP Accruals to Dunn@fas.harvard.edu or cbenoit@fas.harvard.edu
Thursday, July
17,
10 a.m.
n/a
3rd Close
Thursday, July
17,
noon
Friday, July
18,
2 p.m.
4th Close (FAS tubs only - no depts)
Wednesday, July
23,
5 p.m.
n/a
Fourth close journals require prior approval by Jennifer Edmonds at jenniferedmonds@fas.harvard.edu