Fiscal Year-End Review Session

Celeste Bernal Associate Controller Phone: Presenter Contact Information:

Agenda Year-end Schedule & Important Dates Dual Year Processing Review of Indexes & Accounts Property Accounting – Purchase of Equipment Year-end Accruals P-card Deadlines JV Processing Miscellaneous Questions

Carolina Munoz Audit Liaison Phone: Presenter Contact Information:

Key Year-End Dates –June 23 - DPRs, JVs, and IDVs to be included in FY16 are due to Fiscal Monitor –June 24 - Last day to purchase items from Bookstore. The Bookstore will not be closed during year-end. –June 30 - any FY16 ELRs must be completed and approved by all parties –July 1 – 1 st Close

Key Year-End Dates, cont. –July 8 - Deadline for JVs from Business Managers and Research Centers –July 12 – 2 nd Close –July 19 – 3 rd Close – starting at 5:00pm –July 22 - Controller Close reports available following day

Transaction Date vs. Activity Date Transaction Date – Banner posts transactions to fiscal years and periods based on the transaction date. Activity Date – The date a transaction is actually entered into Banner.

Dual Year Processing You may begin processing FY17 purchase requisitions on June 1, Creating a FY17 requisition during the Dual Year period: -Transaction Date must be >June 30, Delivery Date must be > Transaction date

Dual Year Processing, cont. Banner Finance Procurement manual online at

Reviewing Funds General Ledger Review –Review Assets, Liabilities, and Fund Balance Look for reverse balances Compare for no change from prior year AFR exception reports will help identify issues but don’t wait for them.

Reviewing Indexes Unrestricted Funds –I&G and Non I&G Funds Compare current year activity to prior year activity. Question any expense with a credit balance. Verify that there is not any YTD expense activity in account code Compare budget to actual expenses.

Reviewing Indexes, cont. –I&G Funds There should not be any YTD activity in the following account codes –Revenue accounts –Resale accounts –Applied charges accounts, 795xxx (except in specific circumstances)

Reviewing Indexes, cont. –Non I&G Funds Question any revenue that has a debit balance. Verify that any resale account codes, 77xxxx are appropriate on that index.

Reviewing Indexes, cont. Zero all default P-card account codes – – NMGRT Goods >$10.00 Federally excluded account codes Refer to BDMS for back-up documentation for journal vouchers For BDMS access

Reviewing Indexes, cont. Restricted Funds –Various State of New Mexico billings have a quicker than normal turnaround time. Be prepared to submit final expenditures in order to avoid the risk of late billing which could result in the agency refusing to pay. –Departments should continuously review any accounts receivable balances that are 120 days or older and support SPA in collection efforts to avoid the write off of receivables at year-end.

Mike Hoskins Property Accounting Manager Phone: Presenter Contact Information:

Property Accounting Introduction to Property Accounting Office Best practices (which lead to an easier year-end) Year-end considerations

Property Accounting Office Plant Fund Accounting (funds X8XXXX) Construction Project Monitoring Property, Plant, and Equipment Capitalization Inventory Change Request (ICR) Processing Property and Equipment award closeouts Bond Monitoring and Billing (GOB, STB, RB) Lease and Insurance Monitoring and Analysis

Best Practices – Inventory Change Request Excerpt of the Inventory Change Request (ICR) form:

Best Practices - Tagged Items U, F, S, or P tags – Who owns it? Here are some examples of Tags or Barcodes:

Best Practices - Tagged Items Any item owned or controlled by NMSU that meets the tagging criteria should be tagged. Commodity codes and account codes tell Property Accounting what items to tag. for any donated, government furnished (GFE), or other items that meet the tagging criteria but have no

Summary of Tagging Criteria Account Codes Capital Items: (780200) use for fed. funded owned by NMSU $5,000 and up, moveable, last more than a year U-tag Non-Capital Items: (740100) don’t use $1K to $4,999, moveable, last more than a year U-tag Contractor Acquired Prop. (CAP): (780400) use for State $5,000 and up ( unless contract states a lower threshold) F or S-tag Gov’t Furnished Equipment (GFE): (notify via ) All equipment listed in contract regardless of cost F or S-tag Donated Items: (notify via ) U-tag (or P-tag) private If fair value is greater than $1K.

Summary of Tagging Criteria Commodity Codes Available at: Cognos > Banner Lookups

Example of PO for Capital Tagged Item Commodity Level Accounting: Use document text or item text to communicate additional information to Property Accounting like trade-ins, components (i.e. “line 3 is part of line 1), or “no tag needed because…”

Equipment Tagging Quick Reference Guide Available for download at: af.nmsu.edu

Year-end Considerations Items received on or before 6/30/2016 will be Capitalized, tagged, depreciated, or expensed in FY16. Request and submit invoices for any tagged items. Invoices “unlock” the Banner tag record. Construction project accruals Work done on construction projects but not invoiced will need to be accrued and added to CWIP.

Year-end Considerations Cut-off for year-end – HED Library GOBs –FY16 PCard purchases for HED Library General Obligation Bonds must be completed by June 10 th, –Backup documentation for any outstanding expenses needs to be submitted to AFR by July 7 th, –Failure to meet deadlines might result in HED not reimbursing NMSU for some purchases.

Lesley Doyle Director, Accounting and Financial Reporting Phone: Presenter Contact Information:

Accounts Payable Dates Notable Dates –July 12 thru July 19 - Remaining FY16 PO invoices will not be paid –July 19 - FY16 encumbrances will be rolled forward in Banner –NOTE: All DPRs & RV’s received in A/P after June 30, 2016 will be posted in FY17

Accruals Our financial statements must include all revenue earned and expenses incurred in FY16, even if the transactions have not been completed. The year end accruals adjust the revenues and expenses that are in Banner to amounts required for full accrual financial reporting. The effect of the accrual is reversed in FY17.

Accruals, cont. Three-way match The terms of the PO require that the invoice be matched to the PO and that the goods/services have been received in Banner before the invoice can be paid. Example: –Ordered a microscope on 5/30/16 which was received 6/29/16 – MUST show receipt in Banner by 6/30/16 or it will not be automatically accrued –Invoice sent to A/P to be paid –A/P will automatically accrue if it was received correctly in Banner by 6/30/16 –VERY important to receive items in Banner that were actually received by 6/30/16

Accruals, cont. Two-way match Departmental Construction Subcontract (reviewed by SPA)

Accruals, cont. Two Way Accrual Process: –AFR runs a COGNOS report that lists open two-way match POs. –Each department will receive a list of their open two-way match POs for review. –Departments are asked to review the information and provide AFR with a list of the POs that should be accrued for year-end and the amount of each accrual based on invoices or correspondence from the vendor. AFR accrues using account code Accruals reversed in July. –PO balances for plant funds charged to account codes 754x, 782x, 783x and 792x will not appear on the two-way report. These POs are included in the Construction or Subcontract accrual reports.

Examples –Procured services on 5/30/16; the services were complete by 6/30/16. Invoice sent to A/P but not before 2 nd close. You will need to let AFR know to accrue the amount of services. –Procured services on 5/30/16; the services were NOT complete by 6/30/16. Invoice sent to A/P but not before 2 nd close. AFR will NOT need to accrue the amount for services. –Procured services on 5/30/16; the services were PARTIALLY complete by 6/30/16. Invoice sent to A/P but not before 2 nd close. AFR will need to accrue the amount for services over $10,

Purchasing Clean up Incomplete Purchase Requisitions –Review Banner FOADOCU (Document by User). –Refer to Banner Finance Procurement Manual for process to delete a requisition.

PCard FY 16 Deadlines All Pcard purchases through 6/30/16 will be posted in FY16. –New process for FY16 –Purchases through 6/16/16 will post to Banner on 7/1/16 for FY16. –Purchases through 6/30/16 will post to Banner on 7/15/16 for FY16. –Business managers will be contacted to assist with outstanding PCard balances in their areas.

Ben Glickler Manager of FIP Phone: Presenter Contact Information:

FIP JV Processing Electronically Routed JVs (JEC/JED, B4C/B4D) –These must be routed through Banner queues for approval so consider the timing when close to month end. Electronic JVs (JE16s, CR05s, &c) –Consider FIP and Fiscal Monitor deadlines –Hard copies requiring fiscal monitor signatures –Physical copy & electronic copy sent to fiscal monitors who forward them to FIP after review Manual entry (IDVs, CR05s, &c) –Less than ten lines –Consider FIP and Fiscal Monitor deadlines Plan ahead! Errors cause delays.

FIP JV Processing Electronically routing JVs – Remember that year- end is a busy time so plan ahead to avoid delays. Uploads requiring signatures– Non-routing uploads (JE16s, etc) must come to FIP from fiscal monitors. Posting schedule – Uploads submitted late in the period may be delayed by errors. Timely and early submission to fiscal monitors will help avoid delays.

FIP JV Processing Errors will cause delays in processing. Tips to avoid common errors: –Make sure index is valid (i.e., not termed, etc.). –Make sure username is authorized to post. –Double-check account numbers. Make sure account hasn’t been termed. –Use the correct spreadsheet (JE16 vs. JED, etc). –Make sure transaction date is in the current open period.

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