Presentation on theme: "Council Chambers Thursday, November 4 th 2010. Welcome End-of-Year Process Facts in Brief Purchasing Accounts Payable End-of-Year Hot Topics."— Presentation transcript:
Council Chambers Thursday, November 4 th 2010
Welcome End-of-Year Process Facts in Brief Purchasing Accounts Payable End-of-Year Hot Topics Key Contacts Questions
Approval by UNSW Council Issue Audit Opinion Oct - Dec Jan - Mar Mar Apr - May Submission to Minister & the Audit Office Final Audit End of Year Forum Interim Audit Audit Management Letter issued by the Audit Office FeedbackPlanning ExecutionSign-off
28 Number of Controlled Entities
Plan for supply requirements now Raise PO’s now – before invoices arrive Receipt now for items already received Cancel PO’s not required Reference PO numbers on invoices Report exceptions and issues now Purchasing unavailable 15 th Dec – 10 th Jan All receipting to be done in 2010 Ask for help - Contact:
Schedule suppliers to deliver before UNSW shut down Receipt before end of year Purchase Orders should be receipted when goods are received and checked as being acceptable Do not receipt where there is a deposit/up-front payment for goods prior to UNSW receiving them Receipting Guidelines
2010 Q1 & Q2 Open PO exceptions already reported to local Buyers to investigate and act Reviewing uncommitted budgets with Finance Managers Open PO reports will be provided to Finance Managers directly week of 15 th November Buyers encouraged to continuously review Open PO encumbrances and act now Discussing supply schedule and shut down periods directly with key suppliers
Invoices Cutoff date is Thursday, 16 th December. Invoices received by this date will be guaranteed to be included in the last payment run on Tuesday, 21 st December. These invoices will be included in your 2010 budget. Invoices received after this date will be included in the first payment run in 2011 (Monday, 10 th January 2011).
Employee and Student Payments Cutoff date for entry into NS Financials Expenses is Friday, 10 th December. Cutoff date for approval in NS Financials Expenses is Tuesday, 14 th December. Paperwork must be forwarded to AP by Thursday 16 th December in order for payment to meet the last payment run deadline (Tuesday, 21 st December). The Expenses module will re-open on Monday, 10 th January 2011.
Petty Cash Confirmation Reconciliation Statements issued Friday, 26 th November to petty cash custodians. Reconciliations must be returned by Monday, 6 th December.
Travel ◦ Travel Allowances Travel Allowances are processed through the Expenses module in NS Financials. Do not send Travel Allowance requests forms (TR2) to Accounts Payable. The cutoff date is the same as the Expenses module. Entry into the Expense module closes Friday, 10 th December. Approval in Expenses module closes Tuesday, 14 th December.
Travel ◦ Travel Cash Advances Cutoff date is Thursday, 16 th December. Travel Cash Advance requests (TR3) received by this date will be guaranteed to be included in the last payment run on Tuesday, 21 st December. These advances will be included in your 2010 budget. Travel Cash Advance requests (TR3) received after this date will be included in the first payment run in 2011 (Monday, 10 th January 2011).
Non-travel cash advances Cutoff date is Thursday, 16 th December. Non-travel Cash Advance requests must be received in AP by Thursday, 16 th December to be included in the last payment run on Tuesday, 21 st December. These advances will be included in your 2010 budget. Requests after this date will be included in the first payment run in 2011 (Monday, 10 th January 2011).
Settlement of Advances Overdue settlement of travel and non-travel advances needs to be addressed with employees as soon as possible. If advances are not settled, UNSW will be liable for Fringe Benefits Tax (FBT). This will be charged to the Dept/Project.
Credit Card ◦ Use of Card Can be used throughout the Christmas New year period in accordance with card policy. ◦ Reconciliation Transactions made during the shutdown period will be available to reconcile on Wednesday, 5 th January Reconcilers have until Thursday, 6 th January 2011 to reconcile. Unreconciled transactions remaining after this date will be processed with a 2011 budget date.
How can you help AP to help you? Don’t leave things to the last minute. Look-out for invoices in trays etc. Ensure that all receipting of PO’s is done. Match Exceptions - respond to AP s/phone calls Ask your colleagues to claim their expense reimbursement now. Don’t save-up receipts and claim just before the cutoff date. Employees who are planning to travel in December and January and require allowances /advances – get requests in early.
Standard of Communication – General Accepted Accounting Principle!
Cash Accounting: Transactions are recorded when and only when cash is received or paid out
What is Accrual Accounting ? Transactions are recorded when they take place Regardless of whether cash is involved Matching expenses incurred to revenue earned Non-Cash revenue and expenses must be adjusted by means of: Prepaid expenses Accrued revenue Prepaid revenue Accrued expenses
Definition: Expenses which are paid in advance related to the following accounting period Example: Insurance is paid in December 2010 for the following 12 months. Prepaid amount is for the period Jan-Dec 2011 Accounting treatment: Reduce insurance expense and create an asset - Prepaid Expense Other Examples: prepayment of rent, subscriptions, down payment of goods purchased, license fees
Definition: Revenue which has been earned but has not been received yet Example: University performed consulting work in December 2010 but haven’t invoiced other party Accounting treatment: Increase revenue and create an asset - Accrued Revenue Other Examples: consultancy fees not received, commission earned not received
Definition: Expense that is already incurred but is not paid for Example: Electricity has been used for the period Oct-Dec 2010 but has not been billed until January Accounting treatment: Increase Electricity expense for 3 month to create a liability to pay - Accrued Expenses Other Examples: rent payable, contractor salary payable, telecommunication, audit fees, goods received not invoiced
Definition: Revenue which is received in cash but relates to the next year and is not earned yet Example: University received prepayment for a conference to be held in February 2011 Accounting treatment: Decrease revenue and create a liability - Prepaid Revenue Other Examples: deposit taken for future work, advanced collection from building rentals
When raising charges for internal trading, the income and expense account must match i.e. offset against each other to zero The following sample of internal trading accounts are currently in use:
All journals are to be approved by your supervisor Supporting documentation is to be attached to all journals (e.g. invoice) Finance Managers will be collating information required by the Audit Office of audit samples for review
The Audit Office Corporate Finance Finance Managers Schools/ Units Finance Managers
Adequate internal controls Compliance with law and regulations Availability of proper financial records
NamePositionPhone Catherine Andreas HaufeDeputy Anne HarveyGroup Tax Achamma KurlekarGroup Reporting Manager – Fixed Fitri SukartiGroup Reporting Manager – Financial Assets and Employee Cost John McNallyGroup Consolidation Kenny ParajesGroup Reporting Manager – Teaching Revenue Vicky TzouvarasSenior Research Wayne WangGroup Reporting Manager – Non-Teaching Revenue & Major Grants