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Planning for SuccessEnd of Year Forum
Council Chambers Thursday, November 4th 2010
Welcome End-of-Year Process Facts in Brief Purchasing Accounts Payable End-of-Year Hot Topics Key Contacts Questions
Agenda
END OF YEAR
MYSTERY
O F
• Approval by UNSW Council• Issue Audit Opinion
End-of-Year ProcessOct - Dec
Jan - MarMar
Apr - May
• Submission to Minister & the Audit Office
• Final Audit
• End of Year Forum
• Interim Audit
• Audit Management Letter issued by the Audit Office
Feedback
Planning
Execution
Sign-off
Facts in Brief
28
Number of Controlled Entities
Facts in Brief
Plan for supply requirements now
Raise PO’s now – before invoices arrive
Receipt now for items already received
Cancel PO’s not required
Reference PO numbers on invoices
Report exceptions and issues now
Purchasing unavailable 15th Dec – 10th Jan
All receipting to be done in 2010
Ask for help - Contact: [email protected]
Purchasing : Simple Steps to Simple End of Year
Schedule suppliers to deliver before UNSW shut down
Receipt before end of year
Purchase Orders should be receipted when goods are received and checked as being acceptable
Do not receipt where there is a deposit/up-front payment for goods prior to UNSW receiving them
Receipting Guidelineshttp://www.fin.unsw.edu.au/OurServices/FinancialOperations_Purchasing_Guidelines.html#2
Purchasing : Simple Steps to Simple End of Year
2010 Q1 & Q2 Open PO exceptions already reported to local Buyers to investigate and act
Reviewing uncommitted budgets with Finance Managers
Open PO reports will be provided to Finance Managers directly week of 15th November
Buyers encouraged to continuously review Open PO encumbrances and act now
Discussing supply schedule and shut down periods directly with key suppliers
Purchasing EOY: How We Are Supporting You
Invoices
Cutoff date is Thursday , 16th December.
Invoices received by this date will be guaranteed to be included in the last payment run on Tuesday, 21st December. These invoices will be included in your 2010 budget.
Invoices received after this date will be included in the first payment run in 2011 (Monday, 10th January 2011).
Accounts Payable
Employee and Student Payments
Cutoff date for entry into NS Financials Expenses is Friday, 10th December.
Cutoff date for approval in NS Financials Expenses is Tuesday, 14th December.
Paperwork must be forwarded to AP by Thursday 16th December in order for payment to meet the last payment run deadline (Tuesday, 21st December).
The Expenses module will re-open on Monday, 10th January 2011.
Accounts Payable
Petty Cash
Confirmation Reconciliation Statements issued Friday, 26th November to petty cash custodians.
Reconciliations must be returned by Monday, 6th December.
Accounts Payable
Travel
◦ Travel AllowancesTravel Allowances are processed through the Expenses module in NS Financials. Do not send Travel Allowance requests forms (TR2) to Accounts Payable.
The cutoff date is the same as the Expenses module. Entry into the Expense module closes Friday, 10th December. Approval in Expenses module closes Tuesday, 14th December.
Accounts Payable
Travel
◦ Travel Cash AdvancesCutoff date is Thursday , 16th December.
Travel Cash Advance requests (TR3) received by this date will be guaranteed to be included in the last payment run on Tuesday, 21st December. These advances will be included in your 2010 budget.
Travel Cash Advance requests (TR3) received after this date will be included in the first payment run in 2011 (Monday, 10th January 2011).
Accounts Payable
Non-travel cash advances
Cutoff date is Thursday , 16th December.
Non-travel Cash Advance requests must be received in AP by Thursday, 16th December to be included in the last payment run on Tuesday, 21st December. These advances will be included in your 2010 budget.
Requests after this date will be included in the first payment run in 2011 (Monday, 10th January 2011).
Accounts Payable
Settlement of Advances
Overdue settlement of travel and non-travel advances needs to be addressed with employees as soon as possible.
If advances are not settled, UNSW will be liable for Fringe Benefits Tax (FBT). This will be charged to the Dept/Project.
Accounts Payable
Credit Card ◦ Use of Card
Can be used throughout the Christmas New year period in accordance with card policy.
◦ Reconciliation
Transactions made during the shutdown period will be available to reconcile on Wednesday, 5th January 2011. Reconcilers have until Thursday, 6th January 2011 to reconcile. Unreconciled transactions remaining after this date will be processed with a 2011 budget date.
Accounts Payable
How can you help AP to help you?Don’t leave things to the last minute.
Look-out for invoices in trays etc. Ensure that all receipting of PO’s is done.
Match Exceptions - respond to AP emails/phone calls
Ask your colleagues to claim their expense reimbursement now. Don’t save-up receipts and claim just before the cutoff date.
Employees who are planning to travel in December and January and require allowances /advances – get requests in early.
Accounts Payable
Standard of Communication – General Accepted Accounting Principle!
End-of-Year Hot Topics
Accrual Accounting
End-of-Year Hot Topics – Cash Accounting
Cash Accounting: Transactions are recorded when and only when
cash is received or paid out
End-of-Year Hot Topics – Accrual Accounting
What is Accrual Accounting?
Transactions are recorded when they take place Regardless of whether cash is involved Matching expenses incurred to revenue earned
Non-Cash revenue and expenses must be adjusted by means of:
Prepaid expenses Accrued revenue Prepaid revenue Accrued expenses
Definition: Expenses which are paid in advance related to the following accounting period
Example: Insurance is paid in December 2010 for the following 12
months. Prepaid amount is for the period Jan-Dec 2011
Accounting treatment:Reduce insurance expense and create an asset - Prepaid Expense
Other Examples: prepayment of rent, subscriptions, down payment of goods purchased, license fees
End-of-Year Hot Topics – Prepaid Expenses
Definition: Revenue which has been earned but has not been received yet
Example: University performed consulting work in December 2010 but
haven’t invoiced other party
Accounting treatment:Increase revenue and create an asset - Accrued Revenue
Other Examples: consultancy fees not received, commission earned not received
End-of-Year Hot Topics – Accrued Revenue
Definition: Expense that is already incurred but is not paid forExample: Electricity has been used for the period Oct-Dec 2010 but has
not been billed until January
Accounting treatment:Increase Electricity expense for 3 month to create a liability to pay - Accrued Expenses
Other Examples: rent payable, contractor salary payable, telecommunication, audit fees, goods received not invoiced
End-of-Year Hot Topics – Accrued Expenses
Definition: Revenue which is received in cash but relates to the next year and is not earned yet
Example: University received prepayment for a conference to be held in
February 2011
Accounting treatment:Decrease revenue and create a liability - Prepaid Revenue
Other Examples: deposit taken for future work, advanced collection from building rentals
End-of-Year Hot Topics – Prepaid Revenue
When raising charges for internal trading, the income and expense account must match i.e. offset against each other to zero
The following sample of internal trading accounts are currently in use:
End-of-Year Hot Topics – internal accounts
All journals are to be approved by your supervisor
Supporting documentation is to be attached to all journals (e.g. invoice)
Finance Managers will be collating information required by the Audit Office of audit samples for review
End-of-Year Hot Topics – approval of journals
The Audit Office
Corporate Finance
Finance Managers
Schools/ Units
Finance Managers
End-of-Year Hot Topics - Audit Request Process
Adequate internal controls
Compliance with law and regulations
Availability of proper financial records
End-of-Year Hot Topics - Management Representation Letter
Corporate Finance is Here to Support You
Name Position Phone Email
Catherine Yeung Director 52165 [email protected]
Andreas Haufe Deputy Director 53494 [email protected]
Anne Harvey Group Tax Manager 51635 [email protected]
Achamma Kurlekar Group Reporting Manager – Fixed Assets 52075 [email protected]
Fitri Sukarti Group Reporting Manager – Financial Assets and Employee Cost
51729 [email protected]
John McNally Group Consolidation Manager 58151 [email protected]
Kenny Parajes Group Reporting Manager – Teaching Revenue
53612 [email protected]
Vicky Tzouvaras Senior Research Accountant 58157 [email protected]
Wayne Wang Group Reporting Manager – Non-Teaching Revenue & Major Grants
53241 [email protected]
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