Year-End Closing of the Books2011-2012

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, Clifton Larson

Allen(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?Activity that takes place between:

July 1, 2011 and June 30, 2012

• Including accruals thru July 23, 2012.

• Transactions must be recorded in the fiscal year that a majority of the event takes place, not when it is processed.

• This applies to all funds in FIS regardless of the funding source.

Overview of Closing

- What?

• Close fiscal period 12.– Our goal is to have all June transactions recorded in FP-12.

• Open accrual period (fiscal period 14).

• Departments have one week for adjustments.

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

• Close fiscal period 14 (FY-12).

• OUS extracts our data & populates the HFM System.

• UO reports any FY-12 transactions to OUS through the date financial statements are released.

FY-13 Balances

• FY-13 balances will only include FY-13 transactions until fiscal period 14 is opened.

• When fiscal period 14 is opened, beginning balances in FY-13 (FP-00) are populated with FY-12 FP-12 ending balances.

• Each entry posted to FY-12 during FP-14 has a mirror entry in FY-13 (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 Examples – Operating ledger, Student A/R,

Grants, Fixed Assets, Accounts Payable, etc… • Departmental shadow systems can be used as a

subsidiary ledger. They can be useful in providing information for accounting and reporting to departmental staff. These subsidiary ledgers must be reconciled to Banner FIS.

Dates to Remember:

• June 7 June Regular Payroll Deadline• June 22 Contact BAO for help accruing department

non-student accounts receivable• June 29 Last day to submit Student Receivables• June 29 Last day to Deposit Cash by 3:00 p.m.• June 30 Item(s) must be received by this day to pay with 11-12 funds • July 3 Last day to Submit Payroll Form (PAA)

for 11-12.

Dates to Remember:

• July 6 Last day to submit Service Department Upload JVs, “Z” documents through

AppWorx, for Period 12• July 6 Last day to direct input Inter-Institutional JVs

(Charts B-K) for Period 12• July 9 Last day to submit Budget changes for Period 12• July 9 Last day to input an invoice for Fiscal Period 12• July 9 Last day to input JVs for Period 12

• July 9 Period 12 Close

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

Dates to Remember:

• July 10 Availability of Fiscal Period 12 Reports

• July 10 Last day to direct input Inter-Institutional JVs (Charts B-K) for Period 14

• July 16 Last day to input JVs for Period 14

• July 16 Last day to input Budget Changes for

Period 14

• July 16 Last day to pay an invoice for 11-12

Period 14

Dates to Remember:

• July 20 Last day to Submit IIJVs to BAO for Period 14

• July 20 Detail and aging reports due for all

non-SIS accounts receivable

• July 23 Last day to Submit AP Reports

• July 23 Period 14 Close (FY12)

• July 24 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 FY12:

Debit       Department Fund             A5901 - Prepaid Expense

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

To record the reversal in FY13:

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 FY12:

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 FY13:

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 (use FGITBAL).

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

• All internal transactions need to be posted before the close of FP-14.

Dating FIS Documents

• Documents entered between July 1 and

July 16 for fiscal year - 12, you will need to change the transaction date to

June 30, 2012.

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

Reimbursements

Encumbrances

• All open encumbrances (except zero balance items) will be rolled into fiscal year 13 Banner FIS operating ledger.

• Liquidate any encumbrances that you do not want to roll into fiscal year 13 before the close of fiscal period 12 (July 9th).

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 23, fill out an A/P Report and forward it to BAO Financial Services.

• 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 the 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 construction in progress (CIP) expenses.

• Conversion of completed projects into the Banner FIS 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 (6-3143) http://ba.uoregon.edu/staff/ap-invoice-payment

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

Year End COB Deadlines 2011-2012

• http://ba.uoregon.edu/staff/year-end-deadlines-12

Other Links• http://ba.uoregon.edu/staff/year-end-close

• http://ba.uoregon.edu/staff/year-end-departmental-instructions-12

Closing Remarks