1. Auxiliary Financial Statement Training Session For Year End 2012 Presented by: Finance and Accounting General Accounting

2. Agenda

3. 3 Discuss the detailed steps required for preparing and submitting financial statements for auxiliaries, including:  The accrual information – Adjusting Entries  nVision Reports  Adjusted Trial Balance  Notes to SNA and SRECNA Discuss the information requested for quarters 1 through 3

4. 4 Reporting Requirement Auxiliaries with annual revenues greater than one million dollars are required to submit annual (year-end) financial statements only: www.fa.ufl.edu/directives-and-procedures/auxiliaryeducational- business-accounting/#financial www.fa.ufl.edu/directives-and-procedures/auxiliaryeducational- business-accounting/#financial Each quarter the same auxiliaries must provide the detail of the outstanding accounts receivable and accounts payable.

5. Auxiliary Financial Statements and UF Financial Statements Auxiliaries having their own fund will not prepare Fund Level statements for FY12. The accrual information provided within auxiliary financial statements will still be included by General Accounting/Financial Reporting in the preparation of the University financial statements. 5

6. Preparing Financial Statements: Process Overview

7. 7 Process Overview Collect accrual information Prepare adjusting entries Submit adjusting journals to General Accounting Run nVision and copy report in the workbook Run Trial Balance query and format Provide details for the Accounts Receivable and Accounts Payable Explain any significant variations on the SNA and SRECNA in comparison to prior period.

8. PROCESS → Adjusting Entries - Accruals

9. 9 Adjusting Entries – Journal template All adjusting entries must be prepared on a journal template using PeopleSoft chartfield values to be posted on the adjustment ledger.

10. 10 Adjusting Entries – Debits and Credits Account Type To IncreaseTo Decrease AssetDebit (+)Credit (-) LiabilityCredit (-)Debit (+) RevenueCredit (-)Debit (+) ExpenseDebit (+)Credit (-)

11. 11 Possible Adjusting Entries Debit (+)Credit (-) Accrued Accounts Receivable 132200440400/440500 Accrued Accounts Payable 719300/729200/731100 742200/799900 211000 Deferred Revenue440500263000 Prepaid Expense170000 719300/729200/731100 742200/799900 Accrued Interest134100521000 Inventory151000 /152000731100 Compensated Absences Liability 699000291000 Allowance for Doubtful Accounts 870000139100 Note: Adjusting entries should not include or generate any cash lines.

12. 12 Adjusting Entries All adjusting entries can be posted to one single department ID in your auxiliary range. All adjusting entries will be automatically reversed on the first day of the following period, except the Compensated Absences Liability and the year-end Capital Assets reconciliation.

13. 13 Adjusting Entries Compensated Absences Liability Note1: Please refer to separate instructions on how to retrieve the report. The entire amount of the liability must been adjusted since the prior year amount has be reversed by General Accounting. Enter on a separate journal. The entry will be reversed only in June 2013. $115,000.00 Note 2: Numbers reported in this presentation are for training purpose only and do not necessarily represent accurately the financial position of University Press of Florida.

14. 14 Adjusting Entries - Capital Asset Reconciliation Complete the Capital Assets tab in the workbook (yellow highlighted cells): Refer to your Q1 Financial Statements for the beginning Capital Assets and Accumulated Depreciation after adjustment for new capitalization threshold.

15. 15 Adjusting Entries - Capital Asset Reconciliation The tab includes a journal template that will be automatically populated: Keep the Capital Assets reconciliation entries on a separate journal.

16. 16 Adjusting Entries - Capital Asset Reconciliation After adjustment for capital assets all 78xxxx accounts on the Adjusted Balance column should be zero except for Depreciation Expense: The entry will not be reversed as of 07/01/2012. ACCOUNTFINANCIAL STATEMENT CODE ACTUALS BALANCE UF_AUX_ADJ BALANCE ADJUSTED BALANCE 781100Other Operating Expenses19,503.00(19,503.00)0.00 788000Depreciation7,500.00 TOTAL 19,503.00(12,003.00)7,500.00

17. 17 Adjusting Entries – Journal Mask Use the appropriate journal mask (3 letters) followed by AJ, year, month and 1 thru 9: UPFAJ12061 UPFAJ12062

18. 18 Adjusting Entries – Posting Submit your journal templates to UAS- Auxiliary@admin.ufl.eduUAS- Auxiliary@admin.ufl.edu Please submit your adjusting entries at least two days prior to the August 3rd deadline. General Accounting will post them and notify you. Once all your adjusting entries are posted, you can run the nVision report and the final adjusted trial balance.

19. PROCESS → nVision Report

20. nVision Report In MyUFL,navigate to People Soft and Financials PeopleTools. In the new window, navigate to Reporting Tools / PS/nVision / Define Report Request. 20

21. nVision Report On the Report Request page, search for report ID “AUX_REP” 21 On the nVision Report Request page, select the appropriate date: 06/30/2012 for year-end. Click on Scope and Delivery Templates.

22. nVision Report Search for Report Scope starting with AUX. 22 Each auxiliary has its own scope. Select the appropriate scope and click OK to return to prior page.

23. nVision Report Click Run Report on the nVision Report Request page. Click OK on the Process Scheduler page. 23

24. nVision Report Click Process Monitor on the nVision Report Request page. On Process Request page, click refresh to update the status Wait for Success and Posted 24

25. nVision Report Navigate to Report Manager either through the nVision Report Request page or the top menu. 25 On the Report Manager page click on Administration tab and retrieve the report.

26. nVision Report – Copy to workbook Copy the SNA and the SRECNA for both years To do so: Copy separately each of the 4 blocks: SNA current and prior period, SRECNA current and prior period. Paste each in the appropriate area of the workbook (SNA&SRECNA tab) using paste special value 26

27. PROCESS → Trial Balance – ACTUALS + UF_AUX_ADJ

28. 28 Trial Balance – ACTUAL and UF_AUX_ADJ Run trial balance query: UF_AUX_TB_FS with the appropriate prompts: Download in Excel: Note: The same query is used to pull the balances from both Actuals and UF_AUX_ADJ ledgers.

29. 29 Trial Balance – ACTUAL and UF_AUX_ADJ Save the file. Format using Excel pivot table tool. Remove any subtotals from the Pivot Table. 1 3 2

30. 30 Trial Balance – ACTUAL and UF_AUX_ADJ Copy the entire pivot table (excluding the headers) in the workbook under tab - Adjusted Trial Balance using paste special value: Pivot Table Workbook

31. PROCESS → Accounts Receivable Detail

32. 32 Accounts Receivable Accrued accounts receivable should be categorized between interdepartmental sales (ID Sales) & Non UF Sales, then by age. Provide the status of any receivables over 120 days.

33. Accounts Receivable 33

34. PROCESS → Accounts Payables Detail

35. 35 Reconciliation – Recap of Accrued AP Accrued accounts payable should be listed by vendors and categorized by age. Provide the status of any payables over 60 days.

36. Accrued Accounts Payable 36

37. Accrued Accounts Payable 37 If no record is available the following query can be used: FR_AP_QTR_ACCRUAL

38. PROCESS → Notes to SNA and SRECNA

39. Notes to SNA and SRECNA 39 Provide a brief explanation for any significant variations on the SNA and SRECNA in comparison to prior period. Pay special attention to the following lines: Cash & Investments, Accounts Receivable, Operating Revenues, Employee Compensation and Benefits and Services & Supplies.

40. Available Queries

41. 41 Available Queries UF_AUX_TB_FS  Trial Balance for ACTUALS and UF_AUX_ADJ ledger UF_GL_TB_BY_FUND_DEPT_AUX_QRY  Trial Balance for ACTUALS ledger UF_GL_JOURNAL_DETAIL_QUERY2  Provides the entries making up the ACTUALS Trial Balance UF_AUX_ADJ_JRNL_DETAIL  Provides the entries making up the UF_AUX_ADJ Trial Balance FIT Cube

42. 42 Financial Statement Due Date August 3, 2012 Submit your completed workbook to UAS- Auxiliary@admin.ufl.edu no later than:UAS- Auxiliary@admin.ufl.edu Please submit your adjusting entries at least two days prior to the deadline.

43. 43 Quarterly Information - Accounts Receivable and Accounts Payable Auxiliaries with annual revenues greater than one million dollars are required to report the accounts receivable and accounts payable at the end of each quarter. This information is included in the quarterly report to the Board of Trustees and it is also reported to the Auxiliary Enterprise Committee.

44. 44 Quarterly Information – Variance Analysis Report General Accounting will send a variance analysis report at the end of the second and the third quarter This report is on a cash basis and groups GL accounts in just a few broad categories.

45. 45 Quarterly Information – Variance Analysis Report Provide a brief explanation for any significant variations

46. Any Questions?

47. 47 Contacts We are happy to assist you! Patrice Lecomte  plecomte@ufl.edu plecomte@ufl.edu  294-7256 Jiachun Zhan  jzhan@ufl.edu jzhan@ufl.edu  294-7258 Sheela Moudgil  moudgils@ufl.edu moudgils@ufl.edu  294-7255