1. University of Gloucestershire Year End Financial Processes Year ended 31 July 2012 1 Kate Walton - Financial Controller Sarah Wightman - Procurement & Contracts Manager Abi Aversa - Management Information Accountant

2. Accounts for year ended 31 July 2012 (2011/12) Overriding requirement to reflect a ‘True and Fair’ view Council make certain statements (pledges) in the accounts setting out their responsibilities VC and Chair of Council sign ‘agreement’ Rely on representations from Director of Finance, Internal and External Audit. 2

3. Council confirms it has ensured that: Accounting policies are applied consistently Judgements and estimates are reasonable and prudent Accounting policies have been followed, with any material departures being disclosed and explained Accounts prepared on a ‘going concern’ basis 3

4. Council has taken reasonable steps to: Ensure funds used for purposes they were given Ensure that appropriate financial and management controls in place to safeguard funds Safeguard assets and prevent and detect fraud Secure economical, efficient and effective management of University resources and expenditure 4

5. True and Fair View No legal definition – but a judgement Set out appropriate Accounting Policies (approved by F&GP and Audit Committee) Compliance with Accounting Policies will usually result in ‘True and Fair’ view 5

6. Recognition of Expenditure Expenditure is recognised in the year to which it relates Extract from Year End Guidance Notes: Normal accounting rules require that goods and services received on or before 31st July 2012 count as expenditure within the current financial year. As part of preparing the annual accounts for the University, it is incumbent upon all staff to ensure that normal accounting rules are followed wherever possible. It is an area to which the external auditors pay particularly close attention during their audit of the University’s accounts. 6

7. Action for Buyers on Current Outstanding Orders Run the 'My Open Purchase Order' report in Agresso Review the reported orders in detail and depending on the circumstances, take the following actions: where the order is legitimately outstanding, no action is required, or where goods or services on the order have been received, enter the details on a GRN, or if the whole order features goods or services that have not been received and are no longer required, close the order, or 7

8. Action for Buyers on Current Outstanding Orders cont where the order is partially complete in that it has a number of lines, some already received and some not received, proceed as follows: –where the items not received are still required and that part of the order is legitimately outstanding, no action required, or –where the items not received are no longer required, close the line item and close the order where the order is completely or partially outstanding on Agresso yet the supplier's invoice has already been processed please contact your accountant who will arrange to take the appropriate action. 8

9. Current Year Expenditure on Goods and Services For expenditure to be recognised in the current financial year 1.Raise the order as normal, and 2.The goods and services must be ordered for delivery within the current financial year, and 3.The goods and services must be physically delivered into the care of the University on or before the 31 July, and 4.The delivery of the goods and services must be recorded by way of GRN on Agresso no later than 31st July, and 5.The GRN raised on Agresso must display a delivery date of on or before the 31 July 9

10. Forms for use at Year End Expenditure Form ACCRUEXP Accrued Expenditure for items which have been received but for which payment has not been made before 31 st July Form PREPAYEXP Prepaid Expenditure for goods or services paid for during the year but will not be received until after 31 st July 2012 10

11. Some Expenditure Examples: 1.Annual contract; paid Quarterly (May, Aug, Nov, Feb) (1 qtr 11/12; next 3 qtrs 12/13) 2.Large delivery 30 July; paid 30 Aug 3.Annual contract: paid 100% in advance in May (3 months 11/12; 9 months 12/13) 4.Large delivery 15 Aug; paid in advance on 15 July 5.Large delivery 15 Aug; paid 30 Aug 11

12. 1. Annual contract; paid Quarterly (May, Aug, Nov, Feb) (1 qtr 11/12; next 3 qtrs 12/13) 1 st qtr paid in May therefore already recognised in 11/12 Subsequent costs relate to 12/13, and not yet paid, so no further action required Amounts should only be GRNd when next payment due EG – rental for gas cylinders 12

13. 2. Large delivery 30 July; paid 30 Aug Delivery within Financial Year, therefore costs to be reflected in 11/12 Order already raised + GRN on 30 July Cost should be automatically ‘Accrued’ by F&P If not, would need to complete Form ACCRUEXP to bring costs into correct year EG - PC’s or other equipment 13

14. FORM: ACCRUEXP 14

15. Prepayments Where a service (for up to 5 years) is ordered and paid for in the current financial year, an accounting adjustment is required to allocate the costs to the relevant future years To allocate the costs to future years contact your Faculty or Central Services Accountant who will make the necessary adjustment 15

16. 3. Annual contract: paid 100% in advance in May (3 months 11/12; 9 months 12/13) Full payment of £12,000 in May, therefore already in 11/12 actuals Only ¼ relates to 11/12 – i.e £3,000 Need to ‘Pre-Pay’ £9000 into 12/13 using Form PREPAYEXP EG – software licences 16

17. 4. Large delivery 15 Aug; paid in advance on 15 July Cost incurred in earlier year, but activity correctly falls into following year Order in July; Pay in July; received Aug Need to complete Form PREPAYEXP E.g: hire of Racecourse venue for graduation. Usually pay in May, for ceremony in November. 17

18. 18 FORM: PREPAYEXP

19. Expenditure on Goods and Services against Next Year's Budget 1.Raise the order as normal, and 2.The goods and services must be ordered for delivery in the next financial year, and 3.The GRN must be raised for a delivery date on or after 1 August 19

20. 5. Large delivery 15 Aug; paid 30 Aug Order in July; GRN Aug; Payment Aug Costs properly fall into following year (12/13) therefore NO action required No accrual No pre-payment 20

21. Recognition of Income Income is recognised in the year to which it relates Normal accounting rules require that where work has been carried out on or before 31st July 2012 the income generated will be included within the current financial year. 21

22. Forms for use at Year End Income Form ACCRUINC Accrued Income for sales invoices not issued before 31 st July for work completed in 2011/2012 Form DEFINCDeferred Income for income received in 2011/2012 but which all or part relates to the next (2012/2013) financial year 22

23. Some Income Examples: 1.Project completed July 2012; invoiced August 2.Project all invoiced in 11/12 but half work carried out 12/13 23

24. 1. Project carried out over the 6 months ending July 2012 and sales invoice raised in August Invoice raised in August, therefore not included in 2011/12 actuals All of project undertaken in 2011/12 so income actually earned in that year Need to complete Form ACCRUINC to include income in correct year 2011/12 24

25. FORM: ACCRUINC 25

26. 2. Project carried out over 6 months starting May 2012; sales invoice raised in July (paid in August) Invoice raised for £20,000 in July covering whole project, therefore already included in 2011/12 actuals Second half of project undertaken in 2012/13 so £10,000 of income earned in 2011/12 and £10,000 earned in 2012/13 Need to complete Form DEFINC to defer forward £10,000 of income for 2012/13 26

27. FORM: DEFINC 27

28. Other Procedures Stock Take Departments holding consumable stocks or goods for resale must undertake a supervised physical count on 31 July Details to be included as on year end guidance All stock sheets to be returned to Kate Walton in F&P by 3 August Inventories Inventory forms confirming inventory updates to be returned to Victoria Watt in F&P by 31 August. Due to the reorganisation this year, it is essential that all inventories are reviewed before the year end Form INV Purchase Cards Statements will be sent out by 30 July Transaction logs need to be returned to Amanda Evans in F&P by 7 August Any purchases relating to 2012/13 to be notified to Faculty Accountant by 8 August 28

29. Other Procedures cont Personal Expenses All personal expenses not submitted by 15 July should be notified to your Faculty Accountant by 3 August to be included in accruals Form ACCRUEXP Petty Cash Petty Cash should be counted and the Cash form completed and returned to Kate Walton in F&P by 3 August Form CASH 29

30. FORM: INV 30

31. FORM: CASH 31

32. Finance & Planning Contacts Assistance with forms or other queries around the end-of-year processes can be obtained in the first instance from the appropriate Faculty or Central Services Accountants: Faculty Accountants: Ahmed Ginwalla Faculty Accountant, Oxstalls 5139 Rashieda Hosein Faculty Accountant, The Park 4357 Helen Wiseman Faculty Accountant, FCH 4943 Central Services Accountants: Rachel Davidson and Tom Walker Central Services Accountants, Waterworth Building, The Park 4243 4387 32

33. Finance & Planning Contacts 33 Please send completed accruals and prepayment forms and refer any general queries to: Abi Aversa Management Information Accountant, Waterworth Building, The Park Tel: 4386 Inventory Confirmation Sheets should be sent to: Victoria Watt Principal Accountant, Waterworth Building, The Park Tel: 4384 Purchase Card Statements should be returned to: Amanda Evans Deputy Payments Manager, Waterworth Building, The Park Tel: 4228 Stock sheets and Petty Cash forms should be returned to: Kate Walton Financial Controller Waterworth Building, The Park Tel: 4237

34. 34 Further Information and a copy of the presentation is available on the intranet at: http://resources.glos.ac.uk/departments/ financeplanning/financeacc/audit/index.cfm Any Questions