Year-End Closing of the Books2010-2011

Overview of Closing: - Why?

• GAAP – Generally Accepted Accounting Principles.• End of the business cycle:

– State sessions ends in June.– UO activity begins with summer school (excluding law).

• Federal (GASB) & State (OUS) requirements.– OUS has a number of mandated deadlines.

• Snapshot in time. – YTD Activity is used to monitor, project, budget, compare

and contrast with other funds, institutions, etc… – YTD balances are used for performance evaluations, system

audits, anomalies, etc…

Overview of Closing:- Why?• Annual reporting – Internal & external.

– Rolled into OUS and State financial statements.

– Used by DHHS and other Federal agencies, State Board of Higher Education, Bonding Services, etc…

• Auditors – – Test for accuracy, consistency & reliability of systems, including

our policies & procedures. Help us establish best practices.– Includes: DHHS, Naval Research, NCAA, Moss Adams

(financial statement & A-133), Secretary of State, etc…

• OUS Financial Statements: http://www.ous.edu/dept/cont-div/accounting-reporting/annualfinreport

Overview of Closing

- When?

July 1, 2010 through June 30, 2011

• Including accruals thru July 26, 2011.

• Recorded in the fiscal year that a majority of the event takes place, not when the transaction is processed.

• All funds types are treated the same.

Overview of Closing

- What?

• Close fiscal period 12.– Our goal should be to have our June transactions in FP-12.

• Open accrual period 14.

• Departments have one week for adjustments.

• BAO/BRP/ORM have one week for adjustments.

• OUS extracts our data & populates the HFM System.

• UO reports any FY-11 transactions to OUS through the date financial statements are released.

FY-12 Balances

• FY-12 balances will only include FY-12 transactions until fiscal period 14 is opened.

• When fiscal period 14 is opened, beginning balances in FY-12 (FP-00) are populated with FY-11 FP-12 ending balances.

• Each entry posted to FY-11 during FP-14 has a mirror entry in FY-12 (FP-00).

Balance Sheet Account Codes

A = AssetsB = LiabilitiesC = Income Statement TotalsD = Fund BalanceE = Fund AdditionsF = Fund Deletions

Income/Expense Accounts are rolled up to Fund Balance at Fiscal Year-End.

Balance Sheet/Income Stmt.

FGITBAL FWIBUDG

Balance Sheet Income Stmt

C0010 0XXXX Revenue

C2010 1XXXX Labor

C1010 2XXXX-8XXXX

General Expense

C5010 9XXXX Transfers

Subsidiary Ledgers• The FIS general ledger is the official source of

financial information for the UO.• Provide a greater amount of detailed information.• FIS – Operating ledger, Student A/R, Grants,

Fixed Assets, Accounts Payable, etc… • Departmental shadow systems may not be

subsidiary ledgers. They can be useful in providing information for accounting and reporting to department staff. But it needs to be reconciled to Banner FIS.

Dates to Remember:

• June 7 June Regular Payroll Deadline• June 23 Contact BAO for help accruing department

non-student accounts receivable• June 30 Last day to submit Student Receivables• June 30 Last day to Deposit Cash by 3:00 p.m.• June 30 Item(s) must be received by this day to pay with 10-11 funds • July 5 Last day to submit Service Dept. “interface/AppWorx” JVs for Period 12

Dates to Remember:

• July 6 Last day to Submit Payroll Form (PAA) for 10-11.

• July 6 Last day to direct input Inter-Institutional JVs (Charts B-K) for Period 12

• July 8 Last day to submit Budget changes for Period 12• July 8 Last day to input an invoice for Fiscal Period 12• July 8 Last day to input JVs for Period 12

• July 8 Period 12 Close

***(Above items must have a June transaction date)

Dates to Remember:

• July 9 Availability of Fiscal Period 12 Reports• July 11 Last day to direct input Inter-Institutional

JVs (Charts B-K) for Period 14• 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 pay an invoice for

10-11, Fiscal Period 14

Dates to Remember:

• July 21 Last day to Submit IIJVs to BAO for Period 14

• July 26 Detail and aging reports due for all

non-SIS accounts receivable.• July 26 Last day to Submit AP Reports. • July 26 Period 14 Close (FY11)• July 27 Availability of Fiscal Period 14

Reports

Year End AccrualsPrepaid Expense - A5901

Expenditures must be charged to the fiscal year in which goods are received

or the majority of the services are performed.

Example JV’s as follows:

To record expenditure as a prepaid expense in FY11:

Debit       Department Fund             A5901 - Prepaid Expense

Credit      Department Index            Expense Account Code - ex. 24505  Performance Fees

To record the reversal in FY11:

Debit       Department Index             Expense Account Code - ex. 24505 Performance Fees

Credit      Department Fund             A5901 - Prepaid Expense

Year End Accruals

Prepaid Revenue - B5901 

Revenue must be credited to the fiscal year that the goods or majority of the services

are provided.

Example JV’s as follows:

To record revenue as a prepaid revenue in FY11:

Debit       Department Index         Revenue Account Code - ex. 01102 Nonresident Undergrad Tuition

Credit      Department Fund            B5901 - Accrued Undistr Income

Prepaid Revenue

To record the reversal in FY11:

Debit       Department Fund            B5901 - Accrued Undistr Income

Credit      Department Index           Revenue Account Code - ex. 01102 Nonresident Undergrad Tuition

Non-SIS Accounts Receivable

• Each department must submit a detail and aging report of their non-SIS accounts.

• These reports must be reconciled to banner as of period 14. (FGITBAL)

• Includes service departments, auxiliaries, and designated operations accounts receivables from entities that are external to OUS and the member institutions.

• Same process applies for internal transactions.

Dating FIS Documents

• Documents entered between July 1 and

July 18 for fiscal year - 11, you will need to change the

Transaction Date to June 30.

This includes:• Budget Changes• Invoices• JVs• Travel

Reimbursements

Encumbrances

• In prior fiscal years the BAO only rolled restricted fund related encumbrances. Beginning fiscal year 11 all encumbrances will be rolled into the fiscal year 12 accounting records.

Expenditure Cut-Off Guidelines

• Expenditures must be charged to the fiscal year in which goods are received or services are performed.

• For goods and services received by June 30 for which vendor invoices have not been received as of July 26, fill out an A/P Report.

• http://ba.uoregon.edu/sites/ba/files/forms/yearendap.pdf

Service Centers

• Service Center Compliance• 5 yr. Plan (CAMP).

• See BAO Website for Detailed Instructions.

http://ba.uoregon.edu/staff/service-centers

Reporting Property Not Owned by UO

• Leased Asset Schedule for Year-End Reporting.

• Leased Property (LE/LP).

• Loaned Property (LN).

• Adequate Insurance Coverage.

• FWIFLST – Banner Form to Check for Completeness of Inventory Records.

Real Property

• Capitalization of CIP Expenses.

• Conversion of Completed Projects into Real Property Records.

• Componentization of Specified Buildings used for Research.

BAO Help

• Accounting and Financial Management Contactshttp://ba.uoregon.edu/staff/actg-and-finl-mgmt-contacts

• Accounts Payable 6-3143http://ba.uoregon.edu/staff/ap-invoice-payment

• Travel 6-3158http://ba.uoregon.edu/staff/travel

Year End COB Deadlines 2010-2011

• http://ba.uoregon.edu/staff/year-end-deadlines-11

Closing Remarks