Year-End Closing of the Books - PowerPoint Presentation

Slide1

Year-EndClosing of the BooksFY 2017Slide2

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… Slide3

Annual reporting – internal & external

UO issues annual audited 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…

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 ClosingSlide4

Recording activity that takes place between:

July 1, 2016 and June 30, 2017

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, 2017Applies to all funds regardless of the source

Overview of ClosingSlide5

Fiscal period 12

Record

June and remaining FY17

activity

Fiscal period 14 (opens after closing period 12)Review and post necessary corrections/accrualsDepartments have first 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 FY17 transactions

Issues audited financial statements

Close fiscal period 14

Overview of ClosingSlide6

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, income/expense account balances from FY17 FP12 are closed into FY18 fund balance. Slide7

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

D0010Slide8
Slide9
Slide10

FY18 Beginning Balances

Before period 14 is opened, FY18 balances only include FY18 transactionsSlide11

FY18 Beginning Balances

When period

14 is opened,

FY17 period

12 ending balances are posted as FY18 beginning balances Recorded in period 00Document type YEOB, numbered GLRL17XXThen, each entry posted to FY17 during period 14 has a mirror entry in FY18 period 00Identifiable by its June transaction dateSlide12
Slide13

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 UOSlide14

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 FoundationB5802

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 ExpenseSlide15

Non-SIS Accounts Receivable

Each department must submit a detail and aging report of their non-SIS accounts by July 19th

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 UOSlide16

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

ReceivableA3131Catering 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 FoundationSlide17

Non-SIS Accounts Receivable

University of Oregon

Non-Student Accounts Receivable Aging

As

of June 30,

2017

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

FY17

FY16

FY15

FY14

FY13

Older

0

0

0

0

0

0

0

0

0

0

0

0

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:Slide18
Slide19

Cut-Off Guidelines & Accruals

According to

GAAP,

accrual accounting

requires:Expenses to be recorded in the fiscal year and 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 period in which the goods or services are provided, regardless of when payment is received.Accounts ReceivableUnearned RevenueSlide20

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, 2017 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.Slide21

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 CodeSlide22

Unearned & Undistributed Revenue Account Codes

Account Code

Account Code Title

Unearned Revenue

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

B5801

Undistributed RevenueSlide23

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.pdfSlide24

Payable AccrualsFor invoices paid with an FY18 transaction date

for goods or services that were provided by June 30

th

, input a JV to record the payable in FY17.

To record the payable and expense in FY17:Debit       Department Index            Expense Account CodeCredit      Department Index            Received Items Payable B0190To reverse the accrual in FY18:Debit       Department Index            Received Items Payable B0190Credit      Department Index            Expense Account Code

* After July 18

th

(dept. lockout), please provide the information to BAO Financial ServicesSlide25

Prepaid Expense Accruals

Prepaid Expense:

Expenses for future fiscal years that are paid prior to June 30, 2017 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 FY17, 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.Slide26

Common Prepaid Expense Account Codes

Account Code

Account Code Title

A5019

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

A5030

Prepaid Miscellaneous ExpenseSlide27

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,

2017.

To record the deposit in transit by JV with a June

2017

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, 2017:Debit CASH, CHEK, or CARD depending on how the payment was receivedCredit Dept. Index A0951 Cash-Department Deposit In Transit Slide28
Slide29

Dates to Remember:

June 8

June regular payroll deadline

June 16

Contact BAO for help accruing department non-student accounts receivableJune 28 Last day to submit wire transfer to AP by 10:00amJune 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 FY17 funds

**(Items input in July require a 30-JUN-2017 transaction date)**Slide30

Dates to Remember:

July 10

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 FY18July 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 12July 11 Period 12 Close (5:00pm)

July

12

Period

12 reports are available

**(Items input in July require a 30-JUN-2017 transaction date)**Slide31

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 Departmental lock-out (5:00pm)July 19 Detail and aging reports due for all non-SIS accounts receivableFor assistance with FY17 transactions after the lock-out, contact

BAO Accounting.

**(Items input in July require a

30-JUN-2017 transaction

date)**Slide32

Dating FIS Documents

After June 30

th

, any document input for FY17 must have the transaction date changed to

30-JUN-2017This includes:Budget changesInvoicesJVsTravel reimbursementsSlide33

EncumbrancesAll open encumbrances (except zero balance items) will be rolled into FY18 Banner FIS operating ledger

Liquidate and close any encumbrances that you do not want to roll into FY18 before the close of period 12 (July 11th)

http://pages.uoregon.edu/baoforms/bao_drupal_6/sites/ba.uoregon.edu/files/yearendencumbranceproceduresflowchart.pdfSlide34

Late FY17 and Subsequent Event Reporting

Report FY17 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 reportingSlide35

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)Slide36

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 researchCapitalized interest calculation and entrySlide37

FY17 Accomplishments

BAO and BRP moved to Thompson’s University Center

Fleet copier program roll-outSlide38

Looking ahead to FY18 BAO Travel rolling-out Concur

Banner 9

Streamlining chart of account requests

Blended

OPEDuck DepotBase year for Facility & Administrative (F&A) rateSlide39

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-paymentSlide40

Useful Links

Year End COB Instructions and Deadlines FY17

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

UO Financial Statements

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