FYE 2019 Training | Afternoon Session May 8th Business Services University of Montana FYE 2019 Training | Afternoon Session May 8th Business Services

Agenda Introduction Procurement Accounts Payable Budget Payroll UM Foundation Break Campus Cutoff Schedule Feed File Schedule Accounting Procedures JV Reminders Dan Jenko - Introductions Andrea Scheuering - Payroll Tara - Procedure Highlights

Business Services Contact List Accounting Services Tara Scott, Financial Manager Ext 5802 Barb Bybee, Accountant Ext 6261 Patrick Fagan, Accountant Ext 5742 Connor Smith, Accountant Ext 6628 Leia Plaza, Accountant Ext 5342 Nan Li, Accountant Ext 5716 Accounts Payable Nicole Thompson Ext 4935 Procurement Bob Hlynosky, Accounts Payable/Procurement Ext 2494 Vickie Voss Ext 2210 Systems Scott Klanecky, Finance Systems Manager Ext 5558 Frank Grady, Banner Finance Production Manager Ext 2940 Treasury Services Betty Davis Ext 4320 Management Dan Jenko, Associate Director Ext 5530 Dan Jenko - Introductions Andrea Scheuering - Payroll Tara - Procedure Highlights

FYE Website http://www. umt Let’s show them, Leia to insert link.

Procurement

Procurement 5/10 Photocopiers 5/31 Bids less than $500k, not on a term contract. 6/1 Term Contracts & Requisition Requests 6/26 Encumbrance Cleanup deadline. PO’s must be set up before, NOT after purchase.

Accounts Payable

Accounts Payable Year End Dates 6/1 Complete ProCard charges or else not in FY19 **most merchant’s process weekly 6/21 PO invoices need to be sent to A/P by 5:00 pm for FY19 (Travel, check request, Non-PO payments) 6/24 Final ProCard download to Banner from US Bank for Cycle 12 **Only ProCard charges through 6/21/2019 will appear in FY19. 6/28 ProCard Cycle 12 closes at 5:00 pm 7/2 Final check run for FY19 moved to Tuesday morning. All invoices approved by 5pm on 7/1 will print. GrizMart department approvals by 5:00 p for FY19 7/3-5 NO Grizmart or Banner transactions posting 7/8 GrizMart reopens & Cycle 01 Procard charges are downloaded to Banner for redistribution

BUDGET

Year End Checks General Funds (31xxxx) Correct negative available balances per INDEX – (UMDW Operating Report) Correct negative Personnel Services (Personal Services – UMDW Operating Report) You can correct these negative balances by submitting… RBC – Must be completed and turned in by 5/15/19 JV Payroll Redistribution Keep slide for FYE18?

Year End Checks Designated (33xxxx)/Auxiliary (34xxxx) Correct negative fund balances Consider impact of year end balances on FY20 budgets – Submit budget changes as needed You can correct these negative balances by submitting… RBC – Must be completed and turned in by 5/15/19 JV Payroll Redistribution Keep slide for FYE18?

Contacts and Questions Stacey Eve 243-6342 Nate Thomas 243-4738

Payroll

Fiscal Year End - Payroll Contacts: Andrea Scheuering: 243-5199 Andrea.Scheuering@umontana.edu For Redistributions please contact your Fund Accountant or Grant Accountant.

FY19 Expenses SP13 BW13 BW14 MO7 MS7 Payroll: SP, BW, MO, MS FY19 Expenses SP13 BW13 BW14 MO7 MS7 FY20 Expenses SP14 BW15 Expensing, in total, at the department level Health Insurance $1,054.00/month New Rate Changes for FY20 Unemployment .45% (subject to change) PERS 8.77% TRS 11.45% TIAA-CREF 10.676% (same as last year)

Payroll: SP, BW, MO, MS 6/7 RPTs due for Monthly (MO) rosters 6/14 BW13 GTO Opens 6/18 RPTs due for Bi-Weekly (BW) rosters BW13 Closes @7p Text in red requires update for FY19 / (Note by Leia 3/7/19)

Payroll: SP, BW, MO, MS 6/19 SP13 GTO Opens 6/20 Noon MO Rosters due (No RPTs accepted for MO) 6/21 SP13 GTO Closes @5p 6/24 Noon Manual Check Request Cut-Off Due to the Fiscal Year End Cash Closing process – no manual checks processed from June 24th to July 1st. 6/26 BW13 Posts & Pays 6/28 BW14 GTO Opens Encumbrances released for all payroll cycles

Payroll: SP, BW, MO, MS 7/1 MO7, MS7, SP13 Pay Payroll Redistribution Deadline BW14 Closes (No Redistributions) @ 7p Redistributions into State/General fund indexes from other funding sources (such as designated, auxiliary etc.) will be reviewed by the Budget Office. Sufficient budget authority, for both wages and benefits, must be in place for these to occur. 7/2 SP14 GTO Opens 7/5 SP14 GTO Closes @ 5p BW14 Posts to ledgers, not paid until 7/10 7/10 BW14 Pays

Payroll – Miscellaneous There will be no accruals for bi-weekly wages, which ends June 29th. Nor will there be accruals for monthly wages, which ends June 30th. No accruals may be made for student wages earned from June 19th to July 1st (which do not pay until July 15th ) at the department level. These amounts will be expensed in FY20. Double check the dates in red 3/7/2019

Payroll Processing

Payroll Redistributions

FYE Payroll Redistributions Purpose: To correct a funding source (budget). Reminders: Do not include benefits in the amount you are moving. If partial move, please indicate. JV / U-Approve is inappropriate. Permanent fund moves require RPT (Request for Personnel Transaction) Deadlines <90 Days = No justification, No Approval >90 Days = Justification and Business Services Director Approval IMPORTANT BW14 Reminder: Review your GTO reports carefully upon completion. If there is an error – contact your HRA prior to process completion on July 1st. There will be no payroll redistributions for BW14 in FY19.

Payroll Redistributions Forms: http://www.umt.edu/business-services/Employees/Forms.php Non-Grant Payroll Redistribution Form http://www.umt.edu/business-services/Employees/PayrollRedistForm1.xls Deadlines to have requests to Business Services… 6/5/18 – May (due by 3:00 PM) 7/1/18 – June (due by 12:00 PM) ** Payroll Redistributions for BW14 will not be allowed **

UM Foundation Text in red requires updated date 3/7/2019

UM FOUNDATION Payments to UM All other fiscal year 2019 expenses Clear outstanding advances Questions

10 MIN BREAK

Systems

Feed File Schedule Due Tuesday, July 2nd by 3:00 PM- Invoice feeds Dining Services invoices from CBORD Facilities Services- Missoula and Dillon invoice systems Due Wednesday, July 3rd by Noon - JV feeds Facilities Services (work orders and postage) Network port charges Fixed phone charges Long distance charges UC Admin charges JV uploads Please do not send feed files with July transaction dates until Monday 7/8

Other Critical Dates 7/05 FY19 Period 12 closes at 5:00 PM 7/06 “GL and Encumbrance Roll” to FY20 7/08 Period 12 Reports available through UMDW

Fiscal Year 20 Begins July 8 Reversing Entries Invoice Processing Resumes Journal Voucher Entry Reversing Entries Automated reversals prior to July Month End closing PRE-PAY and Deferred Revenue reversing transactions will be processed prior to July Month End closing

Accounting Procedures Prepaid Expenses (PREPAY) Miscellaneous Accounts Receivable Accrued Expenses Deferred Revenue Capital Assets

PREPAY EXPENSE

Prepaid Expenses over $500.00 & going past June 30, 2019. **Not applicable to Grants.

Additional Prepaid Guidelines/Tips/Updates Updates/Reminders: GRIZMART (Non-PO): Use the activity code PREPAY 1905 account invalid in GrizMart PROCARD: Appropriate to use 1905 account Do NOT use PREPAY activity code DEADLINE: 7/5/2019 All supporting documentation to Barb Bybee

Miscellaneous Accounts Receivable

Why so nosey? Not everyone uses BANNER to invoice. If you do not use BANNER your receivables are not on record with Business Services. Which means…you are shorting yourself revenue and your Fund Balance is not as high as it could be. We need to add your accounts receivable (revenue) to our records so that you can recognize revenue in this fiscal year. Why is this important? Next year, when you are paid for those services, we need to make sure that your income is not double counted.

Miscellaneous Receivables Department Responsibility: report correct receivables to Business Services keep documentation to support the receivables. Business Services Responsibility: review and record receivables establish an allowance for doubtful accounts. NOTE: Individual receivables > or = $25,000 require Dean or Director approval

Miscellaneous Receivables DEADLINE: 7/3 Noon Connor Smith Supporting Documentation Includes: Invoices Miscellaneous A/R reports

Connor Smith Connor Smith

Bad Debt Collection | Allowance What if I’m not paid?

Establishing an Allowance| Account 1212 Bad Debt … Collections The longer it takes someone to pay you, the less likely you are to receive that money. Allowance calculation based on aging from bill date. 0 – 90 days 5% 91-180 days 25% 181+ 50% From 0 – 90 days, you can expect to receive 95% of the money owed to you. This is why 5% is written off to Account 1212 as “Bad Debt.”

Establishing & Recording an Allowance for Bad Debt i.e. Library has an invoice for $444.84. The invoice is 0-90 days old, The allowance would be 5%

Establishing & Recording an Allowance for Bad Debt

Trial Balance Report

Expenditure Accruals

Expenditure Accruals Expenditures must be recognized in the accounting year incurred, which creates the necessity for recording expenditure accruals for valid obligations incurred but unpaid as of the end of the fiscal year. Departments must submit requests for expenditure accruals to Business Services on or before July 5th at 4:00 pm. The following information along with the backup documentation must be provided to Business Services: Identify type of accrual – ‘A’ accrual or ‘B’ accrual Explanation and supporting documentation Identify vendor (if vendor is another state agency, special accrual accounting is required) Department contact person and phone number Add A & B Accrual definitions

Expenditure Accruals (Continued) “A” Accruals These are for State Funds Only For Valid open orders of goods/services received After June 30th “B” Accruals These are for All Funds including State Funds Valid open orders on goods/services received on or Before June 30th, but have not yet been paid. Note: Accruals over $25,000 must include backup documentation and will need approval by the Director of Business Services.

Expenditure Accruals (Continued) Updates/Reminders: Only items $500.00 or more will be accrued Remember: An accrual may be necessary for ProCard purchases made during the last days of June (after 6/21/19) if the vendor does not process them in a timely manner Make sure to get supporting documentation in to Tara Scott (ext 5802) before 4pm on Friday, 7/5/19 Review accrual procedures on Business Services Fiscal Year End Website. Check date for red text

Expenditure Accruals (Continued) Can we make all of these a handout? We can even add “supplemental hand out” link under our FYE links on our Business Services Webpage.

Expenditure Accruals (Continued) Can we make all of these a handout? We can even add “supplemental hand out” link under our FYE links on our Business Services Webpage.

Expenditure Accruals (Continued) Can we make all of these a handout? We can even add “supplemental hand out” link under our FYE links on our Business Services Webpage.

Expenditure Accruals (Continued) Can we make all of these a handout? We can even add “supplemental hand out” link under our FYE links on our Business Services Webpage.

Expenditure Accruals (Continued) Can we make all of these a handout? We can even add “supplemental hand out” link under our FYE links on our Business Services Webpage.

Deferred Revenue DEFINITION: Deferred revenue is revenue collected in the current fiscal year for services provided in the next fiscal year. This revenue is reported as a liability on the current year’s balance sheet and as revenue in the next fiscal year. Departments that record deferred revenue include, but are not limited to: Continuing Education Bio Station Dining Services Athletics Campus Recreation Residence Life Note: Summer session tuition and fees collected prior to July 1st are also recorded as deferred revenue per Montana University System policy.

Deferred Revenue (continued) Procedures: Banner Online Departmental Deposit Form Preparation For ease of processing deposits, please use a separate deposit card for deferred revenue transactions Deferred revenue must be recorded with an activity code. Find the current activity code list in the Deferred Revenue procedures on the Fiscal Year End Website. Please contact your Fund Accountant if a new activity code needs to be established. The activity code is the revenue account code with the ‘5’ replaced by an ‘R’ (ie; 50404 – Campus Recreation Trip Fee income activity code would be R0404) Balance Sheet account number is 2505 – Deferred Revenue

Deferred Revenue (Continued) Updates/Reminders: No procedure changes from last year Final deposit deadline is 11:00 am, 6/28/19 Be sure to send backup to Connor Smith (ext 6628) and contact him with any questions Review procedure and forms on the Fiscal Year End Website

Trial Balance Report-Detail Can we make all of these a handout? We can even add “supplemental hand out” link under our FYE links on our Business Services Webpage.

Trial Balance Report Can we make all of these a handout? We can even add “supplemental hand out” link under our FYE links on our Business Services Webpage.

Trial Balance Report-Detail Can we make all of these a handout? We can even add “supplemental hand out” link under our FYE links on our Business Services Webpage.

JV to move revenue to new year Can we make all of these a handout? We can even add “supplemental hand out” link under our FYE links on our Business Services Webpage.

Can we make all of these a handout Can we make all of these a handout? We can even add “supplemental hand out” link under our FYE links on our Business Services Webpage.

Can we make all of these a handout Can we make all of these a handout? We can even add “supplemental hand out” link under our FYE links on our Business Services Webpage.

Can we make all of these a handout Can we make all of these a handout? We can even add “supplemental hand out” link under our FYE links on our Business Services Webpage.

U-Approve All FY19 U-Approve JV’s must be completed and approved by 3:00 pm on Wednesday, July 3rd. Any JV’s not completed by 2:00 pm July 5th will be deleted. Check dates with critical cut off schedule

CAPITAL ASSETS INVENTORY   *COMPLIANCE WITH MT STATE LAW AND THE MT OPERATIONS MANUAL (MOM’S) *ASSETS $5000+ Check dates with critical cut off schedule

3 INVENTORY STEPS  Check dates with critical cut off schedule

1) KEEP RECORDS *INVOICES *SURPLUS CONFIRMATION EMAILS   Check dates with critical cut off schedule

2) TRACK ASSETS *LOCATION *OWNERSHIP   Check dates with critical cut off schedule

3) CONTACT BUSINESS SERVICES *SURPLUS/DESTROY/ CANNIBALIZE ASSETS *SELL *TRANSFERS   Check dates with critical cut off schedule

Helpful Tips Please reference the Banner document number in your JV document text when correcting an entry Please monitor all deadlines and notify Business Services right away if unable to meet a deadline Please monitor your accounts and get your requests in to the Foundation for Gift accounts by their deadline Contact the appropriate service area with questions (Accounts Payable, Procurement, Accounting, Systems) Dates on JV’s are critical; You must use 6/30/19 or earlier if you want it to post in FY19.

Tools for Monitoring FYE Activity Banner Finance JGIBDST – Org Budget Status FGITBSR – Trial Balance Summary UMDW Operating Statement Trial Balance Payroll Maybe have the Banner screens open to refer to during presentation UMDW Contact: Business Services Systems Jackson Moua Ext 2533

Questions?

FYE 2019 Training Thanks for Coming!