© 2008 Brigham Young University–Idaho 1 Controllers Group Meeting October 31, 2013

© 2008 Brigham Young University–Idaho ST-101 is the sales tax exemption form. Purchasing has worked with many vendors in the area and supplied it for their records. If a copy is needed for a vendor for sales in Idaho we are happy to provide that to you. Purchase Orders – Purchasing will take care of exemption Accounts Payable – If an invoice or other type of payment request to a vendor is sent to Accounts Payable and sales tax is included on the request an ST-101 will be included with payment to vendor. The payment sent will be less the sales tax. We can’t take the exemption or request a refund for sales tax paid in any form by an individual. If an employee purchases something with cash or a personal credit card and asks for reimbursement we aren’t eligible for the exemption. Idaho Sales Tax Exemption

© 2008 Brigham Young University–Idaho Idaho Sales Tax (Adjustment on Sales Tax Remittance) Purchase Card – If vendor has a sales tax exemption form (ST-101) on file tell them you are with BYU-Idaho and you will be eligible for the exemption. If they claim they don’t have it on file unless you are carrying one with you they will collect sales tax. A report is created each month from purchase card transactions with any Idaho sales tax and we will use that amount as a credit when we submit our sales tax collected for the University. Idaho Sales Tax Exemption

© 2008 Brigham Young University–Idaho Year End Items

© 2008 Brigham Young University–Idaho Encumbrance Only appropriated accounts (budgeted accounts which begin with one, 1xxx-xx-xxxx). Encumbrance – The promise or setting aside of current budget funds to pay for specific expenses in the future Travel Purchase Order Work Order Encumbrances are ran nightly so they are current each day when you look at your general ledger statement Yearend encumbrances are important because budgeted funds are set aside from the current year and added to the budget for the next year for goods or services ordered before but not received until after December 31

© 2008 Brigham Young University–Idaho All travel encumbrances for travel authorizations will be removed off of the December 31 st financial statement. Travel completed in 2013 will be posted to 2013 budget year travel authorizations need to be reconciled as soon as possible. Travel expenses paid in 2013 on a TA for 2014 travel will post in Must have travel budget funds left from current year for encumbrances Travel encumbrances to allow funds to be carried forward from 2013: should be related to specific travel needs to be requested from appropriate vice president. Academic area requests should go to Ric Page Travel Encumbrances 6

© 2008 Brigham Young University–Idaho Purchase and Work Order Encumbrances 7 Appropriated Fund: Ordered (timely) before end of year but not received. Encumbered In the Appropriated Fund goods and services ordered before but not received until after December 31 will be encumbered. This means the amount of the Purchase Orders will be charged to the old year and carried as additional budget into the new year to pay for the item(s) when received. Must have budget funds left from current year for encumbrances

© 2008 Brigham Young University–Idaho 8 Other Funds: Items received/services rendered by Dec. 31st Other Funds: Items received/services rendered after Dec. 31st All Purchase Orders and Work Orders written after December 31 Charged to Old Year Charged to New Year In all other funds, goods and services must be received by December 31 in order to be charged to the old year. All goods and services received after December 31 will be charged to the new year, even if the Purchase Order was written in the old year. Purchase and Work Orders Orders after December 31st

© 2008 Brigham Young University–Idaho Memorandum Date: 13 November 2013 To: All Campus Personnel From: Darin Lee, Purchasing and Travel Director Subject: 2013 Year End Purchases The end of the year is fast approaching and some departments/colleges are preparing to make purchases against the 2013 budget year. Typically, the number of purchase requisitions handled by our department increases significantly during this time. Due to the end of year demands, we ask your cooperation in generating purchase requisitions as early as possible. For those accounts which require delivery of items prior to December 31st, please submit requisitions as soon as possible. For those requiring encumbrance before year end, but delivery can occur in 2014, please submit requisitions to our office before 5:00 p.m. on Friday, December 6, Meeting this date should allow sufficient time for Purchasing personnel to get clarification on requisitions prior to campus personnel leaving for Christmas break. We will do our best to process any requisitions received after the date noted above and encumber funds in this current year. Please contact our offices at ext if you have questions or concerns about your needs. Thank you for your consideration and it is our pleasure to work with you and serve you! 2013 Year End Purchases

© 2008 Brigham Young University–Idaho Check requests and hand checks need to be turned in the first week of the new year to be charged to old year. Dated December 31 or before Goods or services received by Dec. 31 st Vendor Invoices not on purchase orders should be turned in as soon as possible after year end but must be to the Accounting Office by soft close deadline (Around January 20th) Goods or services must be received on or before Dec. 31st Will not be encumbered, posted to appropriate year Other Yearend Expenses 10

© 2008 Brigham Young University–Idaho The proper use of financial reports and the general ledger is vital to account stewards in meeting their fiscal stewardship responsibilities. 11 Financial Report Responsibilities

© 2008 Brigham Young University–Idaho Ensure proper expenditures of funds Keeping expenditures within the authorized budgetary limits Care should be taken to charge all expenses and revenues to the appropriate category which identifies the transaction rather than to an unrelated category where it appears that budget money is available. One category can be overspent while another is under spent. It is the bottom line that counts. Generation of expected revenues, if applicable to your area. Compliance with record keeping requirements of the University Financial Report Responsibilities 12

© 2008 Brigham Young University–Idaho The account steward should review financial reports each month. The verification of each transaction in the general ledger may be assigned to another person. They should be communicating any issues with the steward. An electronic record will be kept of each time a report is accessed on the internet and is subject to monitoring by Financial Services and Auditors. If stewards are not reviewing in a timely manner the accounts they are responsible for an will be sent. It will list the accounts that haven’t been reviewed recently. This is also a good way to make sure we are up to date on any account steward changes. Check the accounts listed in the to make sure you should be steward of the account(s). If not reply and we will resolve the issue. Financial Report Review 13

© 2008 Brigham Young University–Idaho Review 14

© 2008 Brigham Young University–Idaho It is much easier to find a problem when you are looking monthly rather than waiting until the end of the year. Also look at bottom line. Begin in December doing a comprehensive review that continues through year end closing in January. We stewards and office assistants as we work through year end processes with reminders to review reports and when the closing will take place. We have a number of calls in February and March asking about issues in the prior year. Even if there is a problem discovered it is too late to do anything about it in the prior year’s records. Yearend Financial Report Review

© 2008 Brigham Young University–Idaho Feeling Good 16