Presentation is loading. Please wait.

Presentation is loading. Please wait.

1 Welcome to the Year-End Accounting Workshop Andrea Napoli, Manager Accounting Ops Gary Maccarone, Sr. Staff Accountant/Outreach Specialist Anthony Robinson,

Similar presentations


Presentation on theme: "1 Welcome to the Year-End Accounting Workshop Andrea Napoli, Manager Accounting Ops Gary Maccarone, Sr. Staff Accountant/Outreach Specialist Anthony Robinson,"— Presentation transcript:

1 1 Welcome to the Year-End Accounting Workshop Andrea Napoli, Manager Accounting Ops Gary Maccarone, Sr. Staff Accountant/Outreach Specialist Anthony Robinson, Sr. Staff Accountant

2 2 Today’s Objectives Familiarize you with: – Importance & timing of fiscal year-end processes – Accounting for FY 14 expenses paid after June 30 th (accruals) – Accounting for FY 15 expenses paid before June 30 th (prepaid) – Accounting for FY 15 income received before June 30 th (deferred income) – Significant year-end processing dates – Who to call for assistance

3 3 Importance of RIT’s Fiscal Year- End Impact of events in the external environment (“corporate America”) on RIT RIT environment – No history of regulatory violations – Culture isn’t tolerant of fraudulent accounting – While risk for fraud exists in all organizations, management’s overall assessment is that RIT’s internal control & accounting environment is strong

4 4 Importance of RIT’s Fiscal Year- End - Ethics (continued) RIT is committed to governing our community in a way that is both ethical and honest, and serves as a role model to our students by demonstrating honest stewardship of university assets and resources.

5 5 Importance of RIT’s Fiscal Year- End - Ethics (continued) Begins with YOU 4 questions to ask: – Does this follow RIT policies and procedures? – Does this affect the students or others in a negative way? – Could there be negative consequences to the University? – Am I proud to do it?

6 6 Importance of RIT’s Fiscal Year- End - Ethics (continued) Anonymous whistleblower system to report possible misconduct relative to financial reporting, accounting, internal control, regulatory compliance, and use of Institute resources. Phone / TTY

7 7 Importance of RIT’s Fiscal Year- End (continued) Goal is accurate & timely financial statements – Timely closing process – Appropriateness of accounting transactions Accruals Prepaids Deferred Income Thorough documentation – Complete balance sheet account reconciliations

8 8 Importance of RIT’s Fiscal Year- End (continued) Fiscal year is July 1 st - June 30 th – NTID departments follow RIT closing processes at June 30 th Accounting sends memo regarding year- end processes to RIT managers in early June – Information posted on Controller’s Office web page

9 9 Importance of RIT’s Fiscal Year- End (continued) Auditors arrive in mid August to begin the year-end audit – Audit continues for weeks Financial statements are ready for distribution & presentation to the RIT Board of Trustees

10 10 Significant Year-End Dates June 27 th 4:30 PM – Last day for cash deposits and petty cash expenses to be included in FY 14 July 2 nd 4:30 p.m. – Last day Accounts Payable will accept Purchase Order Invoices, Invoice Payment Forms, Travel Expense Reports & Employee Expense Reimbursements through Oracle

11 11 Significant Year-End Dates July 2 nd 4:30 PM – Last day for departments to enter journal entries for preliminary statements July 3 rd 4:30 PM – Last day to enter invoices in Accounts Receivable July 3 rd 4:30 PM – Last day AP will enter PO invoices, Invoice Payment Forms, & Travel Expense Reports July 2 nd 4:30 PM – Employee Expense Reimbursements (I-Expenses) must be approved in Oracle & documentation must be received in AP

12 12 Significant Year-End Dates (continued) July 3 rd – July 15 th AP will prepare Year- End Accrual entries for goods received, services rendered or travel taken on or before June 30 th DR Department expense account CR

13 Significant Year-End Dates (continued) Departmental Action Required – Departments will only prepare Year-End Accrual JEs for goods and/or services received on or before June 30 th for which the vendor Has Not Provided An Invoice by July 11 th DR Department expense account CR – When invoice is received, indicate on Invoice Payment Forms or Travel Expense Reports “Accrued FY 14” 13

14 Significant Year-End Dates (continued) Send documentation to Accounting indicating batch name, JE name and fax to – Appropriate documentation – packing slip, estimate of the completed work, the date received or future date 14

15 15 Significant Year-End Dates (continued) July 7 th – Preliminary Closing July 8 th – Preliminary statements – Departments review June transactions & make corrections before final closing Use the special June department statement (RIT FY 2014 Dept Stmt) – Encumbrances aren’t included in “Available Balance Column”

16 16 Significant Year-End Dates (continued) July 14 th 4:30 PM – Last Day for department’s to enter journal entries for Final department statements July 17 th – Final Closing for Departments – Accounting continues to process significant FY 14 transactions through Aug 6 th July 18 th – Final Department Statements Accounting & Financial Reporting prepare year-end schedules & financial statements for external auditors

17 17 Who to Call for Assistance Invoice Payment Forms Yancey Moore Jackie Hughes Catrina Sapp Travel Expense Reports &Kitty Stappenbeck I-ExpensesMary Kay Tyner Purchase Order InvoicesYancey Moore Janet Bristol JE, Petty Cash, Deposits &Gary Maccarone All File Feeds ProCard, BTA & GTAValerie Russell Payroll ExpensesKitty Stappenbeck Christa Abugasea Dept Stmts, EncumbGary Maccarone5-2237

18 18 Who to Call for Assistance (continued) Special & Designated Gary Maccarone Projects (1XXXX) Grants & ContractsSponsored ProgramsSee SPA (3XXXX projects)AccountingDirectory https://www.rit.edu/fa/controller/sponsored/assignments.html Gift & Endowment Projects Pricilla Schiffhauer (2,6 & 7XXXX) Agency Accts 9XXXX Gary Maccarone Capital Equipment (84200)Kerry Phillips Plant & Fixed AssetsJane McGrath-Briggs Budget EntriesChris Monaco5-5982

19 19 Year-End Accounting Review

20 20 Accrual Based Accounting Expenditures are recognized in year goods are received or services rendered; not when ordered or paid for – Services rendered or goods received on or before June 30 th are charged to FY 14 – Services rendered or goods received after July 1 st are charged to FY 15

21 21 Purchase Orders Goods must be received or services rendered on or before June 30 th – Fax Receiving documentation (i.e. packing slip or invoice) if items are delivered directly to your department Steve Lipson; ext , fax , e- mail - July 3 rd – last day to match invoices to Purchase Orders

22 22 Purchase Orders (continued) Purchase Orders: – July 3 rd – Procurement Services runs Uninvoiced Receipts Report Creates Accrual Journal Entry and Accrual Encumbrance Entry – If goods are received or services are rendered by June 30 th but not received in Oracle, send AP the invoice with proof of receipt, AP will prepare the Year-End Accrual entry

23 23 Encumbrances – Run Encumbrance Detail Report through May 31 st and compare to department statement – “Finally close” old purchase orders Mary Jane Kosel; ext , - – Open encumbrances at June 30 th will automatically be carried over to FY 15

24 24 Invoice Payment Forms July 3 rd – – Last day for AP to enter Invoice Payment Forms in Oracle to charge goods & services received by June 30 th directly to FY 14 July 3 rd – July 16 th – FY 14 expenses will be accrued by AP with a year-end accrual entry

25 25 Travel Expense Reports July 3 rd Last day to enter expense reports in Oracle for trips taken prior to July 1 st July 3 rd – July 16 th FY 14 expenses will be accrued by AP on a year-end accrual entry

26 26 Procurement Card Purchases Closing date for JP Morgan Chase PaymentNet is June 30 th Transfer to G/L July 3 rd – 8:30 a.m. Last minute purchases might not be charged to your June p-card statement – Accounting will process Year-End Accrual entries for a transaction date of June 30 th or prior and a post date of July 1 st or later

27 27 Accrual Example JE Category – Use “YEAR-END ACCRUAL” FY 14 Statement DR $ CR $ FY 15 Statement DR $ CR $200.00

28 28 Payroll & Benefit Accrual Payroll & benefit expenses incurred in June, but not paid until July, are automatically accrued by Accounting ( includes Add Pays) – Accrued = charged to FY 14 Actual payroll expense is posted in FY 15 & accrual is reversed – Effect on department budget in FY 15 is -0-

29 29 Payroll & Benefit Accrual Example Wages earned during the bi-weekly pay period 5/30/14 - 6/12/14 (FY 14) – Pay on 6/20/14 (FY 14) Wages earned on 6/13/14 – 6/26/14 – Will be paid on 7/03/14 (FY 15) – Whole payroll will be accrued for FY14 Wages for 6/27 - 6/30 (4 days) will be accrued to FY 14 based on the 26 th payroll – Fringe benefits are also accrued

30 30 Prepaid Expenses Prepaid expenses – Expenses paid in FY 14 for goods or services that will be received in FY 15 – Charge to a prepaid account in FY 14 & charged to an expense in FY 15 on a Prepaid Journal Entry by AP – Indicate FY 15 expense on Invoice Payment Form If you prepaid an expense using your p-card, prepare a Journal Entry – JE Category = “PREPAID” – Debit – Credit your department expense account

31 31 Prepaid Example (continued) In May 2014, you send an Invoice Payment Form to AP for a service contract for 7/1/14 - 6/30/15; payment is due by 6/30/14 – AP will charge a prepaid account in FY 14 – AP will create a Prepaid Journal Entry to charge your FY 15 budget in July

32 32 Accounts Receivable All income for goods or services provided to an organization outside of RIT during FY 14 should be recorded by June 30 th, even if payment has not been received from the customer

33 33 Accounts Receivable (continued) Many departments are using Oracle Accounts Receivable System to invoice customers (JE’s are automatic) If you are not using A/R, when the customer is invoiced, the department prepares a JE to debit Accts Receivable & credit the appropriate Income account

34 34 Accounts Receivable Example IPI provided research testing for 3M Corporation on May 14 th – When the invoice was sent in May, a JE was recorded to debit A/R & credit Corporate Contracts Income – In July 14 when the payment is received, debit cash & credit A/R to clear the A/R account

35 35 Deferred Income Deferred Income – Income is recorded in the year service is rendered, not when it is received – Cash is received in advance in FY 14 and the service will be provided in FY 15 – Charge to a deferred account in FY 14 & record as income in FY 15 on a Journal Entry

36 36 Deferred Income Example In June 14 several alumni made reservations & paid by check to attend the 2014 Brick City Weekend in Oct 14 – Deposit the checks to Deferred Income account – In October 14, Alumni Relations will record a JE to record the income Debit – Deferred Income Credit – Misc Income

37 37 Documentation Requirements Send supporting documentation for all prepaid, accrual,& deferred income journal entries to Accounting – Indicate batch name, journal name & dates for the item – Must be received by July 15 th or the journal entry can’t be processed for FY 14 – Fax to ext

38 38 Account Reconciliations Balance sheet account reconciliations – Accounts Receivable, Inventory, Suspense, Prepaid, Deferred Income Reconciliations for June due July 11 th – Reconcile to preliminary balances Make correcting entries by July 14 th Complete confirmation/certification

39 39 Account Reconciliations (continued) Accounts Receivable – Prepare a list of unpaid invoices & an aging Inventory – Physical count taken at June 30 th provide details, GL = Count Prepaid Expense – List of invoices paid in FY 14, show FY 15 date Deferred Income – List of customers who paid in FY 14 for FY 15 services/goods

40 40 Most Important Things to Remember NTID follows all RIT year-end processes Accrual based accounting – Goods received or services rendered by June 30 th are charged to FY 14 and paid in FY 15 (date is non-negotiable) Purchase Orders, Invoice Payment Forms, Travel Expense Reports, Procurement Card Transactions, Payroll & Benefits

41 41 Most Important Things to Remember (continued) Prepaid Expenses – Paid in FY 14 for services rendered after July 1 st (date is non-negotiable) –Prepaid Account FY 14; FY 15 Expense Account by Journal Entry Accounts Receivable – Service is rendered before June 30 th & paid after July 1 st –A/R & Income in FY 14; Cash & A/R in FY 15 Deferred Income – Cash is received before June 30 th, the service is provided after July 1 st –Cash & Def Inc in FY 14; Def Inc & Misc Inc in FY 15

42 42 Most Important Things to Remember (continued) Fiscal Year 2014: Year-End Closing Procedures are available on the Controller’s web page: https://www.rit.edu/fa/controller/accounting Accounting and/or external auditors may ask for additional information to meet new external audit requirements

43 43 Questions? Contacts Gary Maccarone, Sr. Staff Accountant/ Outreach Specialist Ext Anthony Robinson, Sr. Staff Accountant


Download ppt "1 Welcome to the Year-End Accounting Workshop Andrea Napoli, Manager Accounting Ops Gary Maccarone, Sr. Staff Accountant/Outreach Specialist Anthony Robinson,"

Similar presentations


Ads by Google