YEAR END CLOSE FY Presented by Financial Accounting & Analysis [FA&A] Team from Business Affairs Charlotte Rooks Kim Jenkins

Why does OSU do Y-E Accruals? University system is under a modified accrual basis of accounting Cash basis throughout the year Accrue and make adjustments at year-end Accrue revenues and expenses connected with external entities only 2

Year End Accruals - Receivables An asset on the balance sheet Revenue earned but not received by the close of the fiscal year Records income in the current year Deadlines SIS A/R- 5pm to Student Accounts in Business Affairs and 5pm for direct entry by units Non-SIS A/R - JVs due 10am for period 12 entry and noon for period 14 3

Year End Accruals – Undistributed (Unearned) Income A liability on the balance sheet Cash received in advance for goods or services not provided by June 28 (Review 2013 deposits) Removes income from the current year Do not accrue for grants or contracts Deadlines 10am for period 12 entry and 12pm for period 14 entry of JVs 4

Year End Accruals – Accounts Payable A liability on the balance sheet Expenses incurred for goods or services received in FY13 but not paid for in FY13 Accrue, if greater than $500 Records expense in the correct fiscal year 5

Year End Accruals – Accounts Payable (cont.) Carefully follow instructions for the Year-End A/P Accrual spreadsheet Do not change column widths or any formatting Caution: Do not process invoices with June date and include on Accrual Spreadsheet! -This would result in double counting Deadline On or before July 5pm, submit electronic Excel file to 6

Year End Accruals – Prepaid Expense An asset on the balance sheet Cash payments made in advance for goods or services not received by June 30 - includes FY14 Travel Only record those >$500 Removes expense from current fiscal year Deadline Reconciliation spreadsheets due 5pm 7

Accrual JV hints Quick way to find the Fund of an Index Go to FGIBDST in Banner and type index in index field to show FOAPAL elements Remember: the index is merely a shortcut and is not a FOAPAL element JV Text and Description Should say FY13 Accrual, then FY14 Reverse Accrual Add the same text to the description on all JV lines All accruals must be reversed with a July FY14 transaction date Tip: Do both accrual and reversal JV at the same time. Use the Reverse Function in FGAJVCD 8

Accrual Reversals (cont.) Using the reverse function in FGAJVCD: 9 Enter the original JV# that you want reversed in the Copy From field. Do not enter anything in the Copy To field – Banner will generate a new JV#. Check the Reverse JV box and the Copy Text box. If you Copy Text, change your dates and text to show the reversal in FY14. Change the Transaction Date to July. Review step-by-step instructions posted on our YEC website.

Accrual Reversals (cont) Departments are responsible for reversing: Receivables (Non-SIS) Undistributed (Unearned) Income Prepaid Expenses Business Affairs is responsible for reversing: Accounts Payable OSU Foundation Receivable Grants and Contracts Accruals 10

Accrual Reversals (cont.) Reversal JVs must have the following: July date – we suggest July 1st Rule code 3JV1 The exact same entries as the accrual with a change in the debit and credit. Do not add new entries. In the Document Reference Field, enter the original accrual JV# Begin text with FY14 Reverse Accrual of J05xxxxx … 11

Fund Balances Determining the Fund Balance Fund Balance = Assets – Liabilities Axxxx accounts – Bxxxx accounts Cash + Receivables + Prepaid Expenses - Accounts Payable - Unearned Income = Fund Balance 12

Reconcile Designated Operation (05xxxx), Service Center (09xxxx), and Auxiliary (1xxxxx) Funds Make sure all accruals are recorded for the fund with a transaction date on or before June 30th See FIS 1403 policies If a fund balance is negative, funding is needed from another source and a JV must be processed following instructions found in the FIS policies. Ensure the working capital balance requirements are met for Service Centers. When an auxiliary has more than one fund, all 1xxxxx funds for that unit are rolled together to determine the fund balance. 13

Reconcile Gift Funds Gift Funds (Mxxxxx, and some FAxxxx) Gifts must not be spent before cash is received Cash [Account code A0901] must be positive when FY13 is closed Monitor cash balances through year-end close using FGITBSR o JVs processed in July with June transaction dates affect FY13 cash balances o Invoices processed in July with June transaction dates do not affect FY13 cash balances 14

Reconcile Gift Funds (cont.) If a gift fund does have a negative cash balance at year-end, move non-payroll expenses via JV to an appropriate funding source. Deadline July 15 5pm to bring the fund into a positive balance. After July 15 th, expenses will be moved by OPAA to the departmental general fund index to bring cash to zero. These JVs cannot be reversed in a subsequent year. 15

Reconcile OSU Foundation Funds OSU Foundation reimbursement funds – FSxxxx, FExxxx, 438xxx, & Gift Plant funds Requests for reimbursement from OSUF need to be made through the OSUF Reimbursement System by Thursday, June 27 8pm for expenses incurred to date and to cover current cash deficits All FY13 OSUF reimbursement system transactions must be processed by Thursday, July 18 Noon Do not process accruals for the reimbursements on these funds – Business Affairs will process the receivable accrual centrally after July 19 th. 16

Reconcile Advance Funds See FIS for Departmental Advances and FIS for Travel Advances Make every effort to collect and settle advance funds before the end of FY13 Review your Business Center Advance Fund 00116X Reconcile remaining balances for advances 17

Reconciliation Tips / Tricks Review Fund Reconciliation Responsibilities o Monthly or Quarterly reviews should be done throughout the year o View balances in FGITBSR or Data Warehouse o Make sure of the following: Transactions are in correct fund and/or account Debit or Credit Balance is correct (Axxxx = D, Bxxxx = C) Old balances are resolved 18

Reconciliation Tips / Tricks (cont.) Reconciliation Required for: A3150 Department Advances A3151 Travel Advances A3802 A/R Rec Year End Accruals A4xxx Inventory A5901 Prepaid Expense Year End Accrual B5901 Accrued Undistributed Income All other Axxxx & Bxxxx accounts that have a balance at Year End [Except for A0901 Cash on Hand and B0100 Invoices Payable] Send Reconciliation Spreadsheets no later than July 19 5pm to 19

Journal Voucher Reminders In July Period 14 (FY13) and Period 01 (FY14) are open concurrently, until Period 14 closes on Monday, July 22nd Watch JV transaction and deadline dates carefully During this period, it is important to begin text with FYxx because the JV approvers are not mind readers Use normal rule codes such as 3JV1, 3BCx or 3GNT as appropriate 20

Journal Vouchers Reminders (cont.) Redistributions or corrections Do all corrections in current fiscal year, Period 12 Any prior year redistributions in FY14 will be reviewed for effect on financial statements. These must receive approval from the Assistant Director for FA&A and may be disapproved No retroactive redistributions will be allowed which are between Program Codes or funding sources (Fund Types). 21

Journal Vouchers - IIJVs Deadlines Submit paperwork to FA&A, Business Affairs by July noon for Period 12 IIJV paperwork for Period 14 should be submitted by July 9 noon 22

Budget Journal Vouchers FY13 departmental budget change JVs (1xGF, 1xGP and 1xAS rule codes) processed after June 30 th need to use June transaction date Complete and approve by Monday, July 8 at 12pm, noon Only SWPS administrative budget offices are allowed to process FY13 budget adjustments between July 9th-18 noon (Period 14) 23

Purchase Orders Plan ahead for major expenditures Watch P.O. deadlines Period 01 for FY14 opens Friday, June 14th for POs Only Open purchase orders will be rolled into Period 01, FY14 July 17 5pm Verify purchase orders are open – run FGROPNE Open POs for which final payment has already occurred should be liquidated by JV For more information on monitoring POs: 24

40199 Construction In Progress All account code balances must be zero at year-end Process a JV to move all expenses from to 401xx or A80xx per policy, if equipment is: o Completed and ready for use – list in use date in text and follow instructions in Property Manual Exhibit #1 o Still a Work-in-Progress – JV text must state Work-in-Progress = Y If the expense represents an installment or prepayment, move all expenses from to A5901 Prepaid Expense – must be reversed in FY14 25

Cash Receipts Do not accumulate receipts for one final deposit! All checks and cash should be deposited within one business day of receipt. Deadlines Depositing all cash - Monday, June 24 4pm Bulk Coin deposits - Thursday, June 27 Noon Deposits for cash received after June 24th ONLY - Friday, June 28 Noon 26

Petty Cash FY13 expenses using Petty Cash must be reimbursed in FY13 Petty Cash funds should be kept reconciled at all times Reimbursements must be processed at least quarterly See FIS for responsibilities Deadlines June 28 th - Physically count cash being held as Petty Cash or in vault fund Dual custody count Someone other than the person who has physical custody of the funds must verify the count Reconciliation due to Cashiers Office by July 19 5pm 27

Payroll Process all labor redistributions for payroll posted through May at the beginning of June when PYAREDS opens. An extra payroll posting for redistributions will be on June 14th. Deadlines Business Center HR/Payroll staff must have paperwork affecting June pay entered by Friday, June 14th, 5pm All final FY13 Labor Distribution corrections must be entered in PYAREDS by Friday, June 28 th, 12pm Note: Prior year retroactive payroll redistributions submitted in FY14 will only be approved by OPAA when Program Codes or funding sources are not affected 28

Direct Pay Invoices Vendors such as Office Max, OSU Beaver Store, VWR, and Fisher Scientific Expenditures are charged directly to departmental accounts via an ICxxxxxx invoice Vendor sets its own billing cycle Deadline FY13 purchases must be completed by Friday, June 14th to ensure posting in FY13 29

Pcard Distribution FA&A will stop loading Pcard transactions on June 26 10am – all transactions in the Pcard module will be FY13 transactions that will need to be distributed Deadline Pcard module processing is Friday, July 5 5pm FY14 transactions will begin loading again after Period 12 is closed on July 8th. 30

Travel Reimbursement requests for travel taken through June 30th must be submitted by Monday, July 9 10am to be included in the FY13 Accounting Records – Ensure that the transaction has a June date in Banner Final June airfare files will be reviewed by Business Affairs and only June travel dates will be posted to FY13 Airfare for travel dates July and later will be posted as July, Period 1 FY14 transactions Any expenses for FY13 travel that have not posted by Wednesday, July 17th should be put on the accrual spreadsheet 31

Invoices Period 12: July 1-8, for all funds Goods or services received on or prior to June 30th o Process the invoice in FY13 using a June transaction date o Documents must be completed and all documents/image files to the Final Approval Unit by Monday, July 8 10am. Business Centers must complete final approvals by Monday, July 8 Noon. Queues must be completely cleared of all FY13 documents. 32

Invoices (cont.) Period 14: July 12 th for Fixed Assets Using 4xxxx Account Codes or 8xxxxx Plant Funds Goods or services received on or prior to June 30th that must be capitalized Process the invoice in FY13 using a June transaction date Have all documents/image files to the Final Approval Unit Deadline Friday, July 12 5pm Necessary to allow Facilities and Fixed Assets sufficient processing time for capitalization and reconciliation. 33

Invoices (cont.) Period 14: July 9-17, for all funds Goods or services received on or prior to June 30 Continue processing each invoice in FY13 by using a June transaction date. Caution: Period 01 FY14 is open at this time – watch dates! All invoices must be entered and completed, with the documents or images to the Final Approval Unit by Tuesday, July 16 th, 5pm Final Approval must be completed by Wednesday, July 17 th, 12pm, noon. Queues must be completely cleared of all FY13 invoices. 34

Invoices (cont.) Reminder: Do not prepay for supplies, services, memberships, or subscriptions that begin on or after July 1, Hold these invoices and process in Period 01, FY14 - July 1 st or later 35

Deadlines & Instructions Chronological list of deadlines and instructions can be found on our YEC website: orting/yearend.php Pay close attention to the Major Deadlines for year- end close OSU Foundation - Office of Budget and Fiscal Planning

Contact Information General YEC Questions Charlotte Rooks, Kim Jenkins, Stephanie Smith, Angelica Smith, Mark Fryman, A/P-POs-Encumbrances RaeLee Aguilar, Pcards Rose Hamilton, Fixed Assets Janna Storm, Autopays Siora Arce, ADDRESSES Grants, Gift, and Foundation Funds OPAA,

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