1. Fiscal 2014 Year-End Closing Updates Jennifer Edmonds

2. Page 2 Why Year-End Closing is Important  Each year, the University is required to issue a report on its financial condition for use by a broad audience. These financial statements must be produced in compliance with “Generally Accepted Accounting Principles” (GAAP).  To accomplish this, we convert from a modified cash basis to accrual basis by processing “accruals” and “prepaids” for expenses and “receivables” and “deferred revenue” for revenues.  The FAS Office of Finance and affiliated tubs do this at a high level on the quarters during the fiscal year. At year-end we involve all FAS departments.

3. Page 3 Closings - Reviews  In addition to complying with GAAP, we expect departments to do a careful review of transactions to ensure they are charged to the correct fund and those charges are in accordance to fund terms.  The use of object code is also very important and we rely on correct usage for University and FAS-wide financial reporting.  We also rely on departments to carefully review their budget to actual results during the closings to be sure they agree and understand their variances.  A close review of funds should be done to be sure restricted funds are utilized according to plan and before the use of unrestricted funds if possible.

4. Page 4 Closing Documents on the Website Detailed Closing Document and other reference materials will be available on the FAS Finance website by May 16 th : http://finance.fas.harvard.edu/reference-guides-if-applicable/fiscal- year-end Year-End Processing Accounts Payable Prepaid Expenses Accounts Receivable Deferred Revenue Payroll Calendar of Transaction Processing during Closings Reporting Schedule Whom To Call List

5. Page 5 What’s new in FY14?  Started the process earlier - held two brown bag sessions on year-end closings this week to get depts. preparing for fiscal year-end.  If adjusting an entry for an equipment purchase (using a 68xx object code) must use the new AP Adjustment process which follows AP deadlines.  Oracle Assets is live for two FAS Tubs and goes live for remainder of FAS on 7/1/14.  Reminder that accrual/prepaid threshold is $10,000.  External Auditors, PWC arrive on campus 8/18 – end of Sept., requests for information/documentation may come during that time. Depts. need to have someone available to pull documentation.

6. Page 6 FAS Journal & Accrual Deadlines and HDW Availability FAS Office of Finance DeadlineCentral Deadline Depts submit to finjrnl@fas.harvard.eduDepts post directly to Oracle 1st CloseWednesday, July 2, noonThursday, July 3, 2 p.m. 2nd CloseThursday, July 10, noonFriday, July 11, 2 p.m. AP Accruals to Dunn@fas.harvard.edu or cbenoit@fas.harvard.edu Thursday, July 17, 10 a.m.n/a 3rd CloseThursday, July 17, noonFriday, July 18, 2 p.m. 4th Close (FAS tubs only - no depts)Wednesday, July 23, 5 p.m.n/a Fourth close journals require prior approval by Jennifer Edmonds at jenniferedmonds@fas.harvard.edu