1. FY15 Year End Best Practices Christine Benoit, Bob Daley, Jen Edmonds, Stephanie Nasson FAS Office of Finance May 2015

2. Year End Review Payroll

3. Page 3 Payroll Year-End Review and Reminders July 1 Reappointments and New Appointments Year End Payroll Posting Dates, Accruals and Paycheck Details 7/1/15 Salary Increase Schedule Payroll Salary Defaults Absence Management Year-End Reminders FY15 Floating Holiday Balances to Expire on 6/30/15 Harvard Student Summer Object Code Change

4. Page 4 July 1 Reappointments and New Appointments PeopleSoft Auto-Term is scheduled to run on Saturday, June 27 th terminating all appointments with a June 30, 2015 end date. All FY16 reappointments must be completed and approved in Asperin by Monday, June 22nd to ensure that they are uploaded to PeopleSoft prior to the auto-term running. Any Asperin generated reappointments received and processed after the auto-term runs will fail because we cannot reappoint on a terminated position. Inadvertently terminating a position may have an impact on employee benefits.

5. Page 5 July 1 Reappointments and New Appointments Please take special note of reappointments for Research and Emeritus Professors who have annual paid appointments. If they are inadvertently terminated, it will affect their retirement benefits. Review and monitor your current scheduled Term Appointments in CREW by running the Departmental-Term Appointments (HRTRMDP038) report. New 7/1/15 appointments should be entered into Asperin as soon as possible to avoid system and building access delays.

6. Page 6 Year End Payroll Posting Dates, Accruals and Paycheck Details University Central Administration will be responsible for posting year- end payroll accruals. These accruals are done to record expenses for time worked in June in the proper fiscal year (FY15). The accrual will debit the payroll expense object codes and credit 2190 (accrued expenses). The FY15 year-end accruals relate to two distinct payroll cycles.

7. Page 7 Year End Payroll Posting Dates, Accruals and Paycheck Details Pay Run IDPay Frequency Check DatePay PeriodAccrual Based on Check Percentage of Accrual BW070415Bi-weekly7/10/156-21/15 – 7/04/15 6/26/157/10 or 70% WKLY070415Weekly7/10/156/28/15 - 7/4/15 6/26/152/5 or 40% The weekly paycheck paid to employees on Thursday, July 2 includes the work performed from June 21-27. Because the weekly payroll comprises FY15 work in its entirety, the check itself will be posted to the General Ledger in June 2015 as a 6/30/15 entry. As this is not an accrual entry, it will not be reversed in July.

8. Page 8 7/1/14 Salary Increase Schedule Exempt employees receiving a 7/1/15 increase can expect the following: First Check After Increase: 7/10/15 (Pay period 6/21 – 7/4/15) Increase Days In First Check: 7/1-7/4/14 (Three business days) Bonus-in-lieu:7/10/15 First Full Check at New Rate: 7/24/15 (Pay period 7/5– 7/18/15) Monthly employees receiving a 7/1/15 increase will see the full amount reflected in their 7/31/15 paycheck.

9. Page 9 Payroll Salary Defaults With the FAS wide release of Student Quick Hire, we have experienced a larger than normal amount of payroll salary defaults associated with Harvard student temps. We have identified a weakness in the Student Quick Hire form that allowed the creation of a position without costing. This will be corrected in PeopleSoft Release 41 in June. All employees that had no costing have been updated in PeopleSoft.

10. Page 10 Payroll Salary Defaults FAS Payroll will be providing a list of all employees from your department or center currently in default that require a journal transfer. Payroll default account review - Summary Actual report for activity 799599. The Summary Actual will return payroll object codes that have been charged to default. A detail listing report will provide the detail of individual employee payments that must be corrected.

11. Page 11 Payroll Salary Defaults Select your department’s ‘Student/Temp’ PeopleSoft department number, not the ‘Parent’ number. Costing for all students hires should include the following earnings codes (Earn Code):  Regular (Leave Earn Code blank)  OTP – Overtime Premium  WST – Enter even if the student is not currently work-study eligible  Enter the % Distribution (One line of costing must have 100% entered. Multiple lines must add up to 100%)

12. Page 12 Absence Management Year-End Reminders All reported paid time off for FY15 through June 20, 2015 must be approved by 3:00pm on Friday, June 19. This will ensure accurate reporting of the University's vacation liability and full reimbursement as we close out the year. Please take a moment to review any new or outstanding requests and take the appropriate action.

13. Page 13 FY15 Floating Holiday Balances to Expire on 6/30/15 All floating holiday balances expire at the end of each fiscal year. Any unused floating holiday time will be forfeited. Employee balances are eligible for payout upon transfer or termination only. We encourage you to run the Comp Time Balance report in PeopleSoft (Main Menu>Harvard Reports>Time and Labor Reports>HU Comp Time Balances Report) to view floating holiday balances by Time & Labor group(s) or by individual employee. Employees can view their balances in both Time & Labor and Absence Management.

14. Page 14 Harvard Student Summer Object Code Change On Sunday, May 31, Harvard students in object code 6110 will be changed to 6120 and FICA eligible status. The Temp fringe rate of 7.7% (FY15) and 6.9% (FY16) will be applied. There is no change to the student job code and eligible returning students will automatically be returned to object code 6110 in September.

15. Page 15 Questions?

16. Page 16 Chart of Account Review & Cleanup Review your department’s chart of accounts for unused chart values To close UD funds, activity, sub activities, roots - email FAS Applications Security To close a gift fund - email Maria Geovanos Identify funds with zero/low dollar balances and spend down/close funds Write off remaining gift balances via Journal Voucher (see slide 16) Review fund balances and move expenses to clear deficits Refer to specific instructions to clear a deficit in a gift fund Review Centrally-controlled funds to ensure charges are correct 000760, 000770, 000775, 000780, 000795, 000800-000802

17. Page 17 Chart of Account Review & Cleanup Review Budget to Actuals for current fiscal year Budget Variance Summaries Actual and Budget If you are a Service Center, ensure your Internal Billings are up to date Can be processed through the second close (2pm on Friday 7/10)

18. Page 18 How to Write Off a Gift Balance If a restricted gift/current use account is no longer being used and every effort has been made to spend a positive balance to zero, the balance can be written off using object code 7765, Fund Balance Write-Offs. The balance can be a deficit or surplus of up to $50.00 These balances should be transferred to the 000001 fund. If this fund is not available, use a general Unrestricted Designated fund. Please contact Linda Kuros if you believe you have a situation that warrants a write-off. Example of a write-off entry for a fund with a positive balance: DR Tub-Org-7765-3XXXXX-600300-XXXX-XXXXX CR Tub-Org-7765-000001-600300-XXXX-XXXXX If you have a fund with a negative balance, then your entry will be the reverse of the example above. AEA will be processed by the FAS Office of Finance.

19. Page 19 How to Write Off a Gift Balance Once the account has a zero balance, a determination by the Department or Center should be made to keep the account open or to close it. If the fund terms are general and there’s a possibility that future gifts will be received, it’s permissible to keep the account open. If additional gifts will not be received, it’s best to close the account. Questions related to this issue can be directed to Maria Geovanos.

20. Page 20 How to Close a Gift Fund Restricted gift/current use accounts can be closed once the fund balance is zero. The deadline for closing the account is May 14 at noon. If a determination to close an account is made, please send an email request to Maria Geovanos (geovanos@fas.harvard.edu) with the following: Tub Fund name and number Confirmation that the balance is indeed $0. If you have cross val’d your fund and transferred monies to other FAS departments, FAS Schools or other tubs, the balances in their Tub/Org (within the account) must also be zero. A CSMA chart request will be submitted to disable/close the account value provided. The request usually takes a few days to complete.

21. Page 21 Unclaimed Wires Report Provides a listing of all unclaimed wires for the entire University Review this CREW report to look for receipts from external parties related to your department. While you may be anticipating a check payment, the vendor may have paid via wire. We recommend running the report since inception by leaving the ‘Show Wires’ field blank Please review this report throughout the year and claim wires as funds are received To claim a wire to post to your dept, email Cash Management at cash_receipts@harvard.edu and provide the following information to process the income transfer.

22. Page 22 Unclaimed Wires Report - Description Similar to the Cash Receipts form, you must provide a description for the wire. We recommend that you use the following format for reimbursements, refunds and other misc income. Please keep the descriptions brief but include enough information that others would know what it is for, like these examples: Reimb from XXX for J. Smith travel 4/1-4/15 (code to expense) Refund from XXX for overpmt of invoice XXX (code to expense) Income from XXX for rent Jan-Mar (code to income) Questions related to coding can be directed to Rebecca Solari.

23. Page 23 New Credit Voucher Form As of April 30, a new Credit Voucher form is available for use The new credit voucher is available on the Office of Treasury Management website. http://otm.finance.harvard.edu/complete-credit-voucher- form We ask that you bookmark and start to use this form going forward Remember to use separate vouchers for cash and checks! Cash Receipts Office is located at 1033 Mass Ave., 2 nd floor. Questions related to coding can be directed to Rebecca Solari.

24. Page 24 General Reminders for Journals The minimum amount for an AP accrual, Prepaid Expenses, Deferred Revenue and Accrued Revenue is $10k, consistent with prior years Don’t forget accruals for recovery of salary, fringe and awards! Use a new/fresh template & validate coding on ADI journals prior to submission to finjrnl@fas.harvard.edu. Refer to the Chart of Accounts Validator at http://fss.finance.harvard.edu/applications Option to accept credit cards (one-time or ongoing) is available via Cash Management Refer to link under How To… section If your department is a Service Center, please consider using Oracle A/R to bill recurring customers. Contact Jen Edmonds for details Save the envelopes for gifts received though the U.S. mail for proof of receipt of late June gifts. Please include the envelope when sending gifts to the RSO for processing. Gifts postmarked after June 30, 2015 will be processed as FY16 donations.

25. Page 25 AP Adjustment Form (for Equipment) Capital equipment coding corrections The purpose of the form is to correct any errors within the 33- digit G/L coding for equipment charged to the 68xx series At year-end the priority is getting the object code correct since it impacts depreciation expense Since the AP Adjustment Form flows through AP, it follows the AP closing deadlines If you are aware of adjustments now, please start processing them before July Do NOT journal corrections involving 68xx! These will be found and will need to be reversed and processed via the AP Adjustment Form. Questions on how to use the form? Refer to the job aids on Eureka under the Fixed Assets section

26. Page 26 Capital Assets / Oracle Assets Science Depts – Sarah Elwell and her team are scrubbing the data (purchases coded to 68xx) sitting in Mass Additions within Oracle Assets. They are reaching out to depts to gather additional information if they have questions. Please respond to them quickly so they have time to do their work in the system. Questions regarding Oracle Assets? Refer to the job aids on Eureka under the Fixed Assets section

27. Page 27 General Reminders for AP Submit FY15 payments & reimbursements in a timely manner; contact ASAP for assistance Hold FY16 payments & reimbursements until after FY15 has closed; less paper for AP to manage. Transfer all low dollar, high volume transactions to PCard (FedEx, Data Shredder, Poland Spring) When an invoice is not provided, use the FAS Payment Request template and type the necessary information Be mindful of additional PCard sweeps during the year end close Review the ‘Receiving’ tab in HCOM to confirm all of your FY15 POs have been received.

28. Page 28 Committed Funds Report Not just for FY End! Unbilled Items (“Quantity Received” > “Quantity Billed”) Invoices on hold (“Unposted Amt” > 0) Unspent POs/Remaining Balances (“Open Commitment” > 0) Payment Requests (PR), Nonemployee Reimbursements (NR), Employee Reimbursements (WR) – should only appear for a few days

29. Page 29 CFR Tips Report DOES NOT show POs where invoices are on hold only for price Sort and remove the following: -Amounts less than a dollar -MX FedEx App POs -BCD Transactions with minimal amounts remaining -Foreign Wire Transfer balances Posted Amount = 0 - Nothing was processed (lost in the mail, never turned in, processed against something else) Marketplace PO Receiving Amount = 0 - Nothing was received. If this true, please follow up with vendor Email AP customer service to close out POs - ap_customerservice@harvard.edu

30. Page 30 How to… Clear a gift fund deficit : http://hwpi.harvard.edu/files/fas_finance/files/how_to_clean_up_a_re stricted_gift_fund_deficit.pdf To accept a credit card as payment: http://otm.finance.harvard.edu/credit-card-merchant-accounts To deposit a check: The new credit voucher form can be found at http://otm.finance.harvard.edu/complete-credit-voucher-form

31. Page 31 Resources General information & questions: FAS Office of Finance website - http://finance.fas.harvard.edu ASAP – fasasap@fas.harvard.edu, x6-7136 Access to HU systems: FAS Applications Security – appsec@fas.harvard.edu Procurement & Reimbursement: Christine Benoit – cbenoit@fas.harvard.edu Josh Dunn – dunn@fas.harvard.edu Journals & AP Adjustments: Jen Edmonds – jenniferedmonds@fas.harvard.edu Rebecca Solari – rsolari@fas.harvard.edu Gifts & Endowments: Linda Kuros – l_kuros@harvard.edu Maria Geovanos – geovanos@fas.harvard.edu To claim a wire: Joe Mendes – joseph_mendes@harvard.edu