2008 year end closing memo

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MEMORANDUM

TO: Senior Management, Administrative Assistants

FROM: Jan Smith, Finance Director

DATE: July 8, 2008

SUBJECT: Fiscal Year-End Closing Procedures and Deadlines

The following guidelines are necessary for the successful closing of Fiscal Year 2008, opening of Fiscal Year 2009 and the proper recording of revenues, expenditures, encumbrances and budgeted funds. Please discuss this document with all employees who may have a part in this process.

Please keep in mind that Labor Day is Monday September 1st, and the deadline week will be a short processing week.

Procurement and Contract Services Division

As of the issuance of this memo Purchase Requisitions that require a bid process and are expected to require the use of current year budgeted funds must be submitted to procurement immediately. Requisitions requiring a bid need 90 days for advertising, review, and council approval of awarded bids. If this process cannot be completed prior to September 30, the funds will not roll into next year’s budget and will need to be re-budgeted.

The last day to enter Purchase Requisitions that do not require a bid process will be Friday, September 5th, 2008. Procurement will be closed as of Monday, September 22nd

through Tuesday, September 30th, 2008, in order to count inventory and prepare for year-end. Fleet will also be closed from Monday, September 29th thru Tuesday, September 30th, 2008. Capital purchase requisitions that have been encumbered by a purchase order as of September 19th, 2008 will be rolled to the 2009-year using 2008 budget allocations. (A list of PO’s to be rolled must be provided to Finance by November 7th in order for the budget to roll to FY 2009.)

Invoices to be paid from FY 2008 budget (items or services must be received by 9/30/08, regardless of the invoice date) must be submitted to Finance for payment by Tuesday, November 4 th . All other purchase orders that have not been submitted to Finance for payment by Tuesday, November 4th will be liquidated, with the exception of purchase orders for capital projects on the list provided to Finance, which will roll and bring the budget from the prior year. Any operating purchase order with items or services received with a date of 10/1/08 or later will be paid out of the 2009 budget, even if was encumbered in 2008. Inventory will be counted and ready for observation by the external auditors on Monday, September 29th.

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Field Purchase Orders (FPO’s)

FPO’s can be entered in the System up through Tuesday September 23rd 2008 at noon. All others will be deleted. All supporting documentation for FPO’s must also be in the Finance Office by noon on September 23rd.

All invoices for items billed in arrears (that usually requires an FPO), and pertaining to FY 2008 (items or services must be received on or prior to 9/30/2008), will be entered by Finance and will be paid out of the 2008 budget allocation up through November 4th only. These should be sent to the Accounts Payable Department by November 4th and labeled “2008 Items” on the outside of the envelope.

Customer Service and Central Cash Collections

The proper cut-off for cash collections will be as follows:

Wednesday, September 24th, 2008 - Final Meter ReadingThursday, September 25th, 2008 - Final Cycle Billing

Finance Central Collections will stop collecting and will be closed to the public at 3.00 pm on Tuesday, September 30th, 2008. Customer Service will close out their daily batches at 3.00 pm on Tuesday, September 30th, 2008, but will continue cash collections using manual procedures.

C2G, IVR, will be shut down at noon on Tuesday, September 30th, 2008.Western Union, and Intuition systems will be shut down at 3.00pm on Tuesday, September 30th, 2008

All cash collections received as of September 30th at closing will be posted to the 2008 fiscal year.

Information Technology

The following reports MUST be generated on the specified dates. The detail should be placed on a disc and only the summary pages should be provided to finance in a hard copy:

Customer Deposits Report (UT444L) must be run on of Tuesday September 30th, 2008 after the billing process is completed. (The parameters must specify the fiscal year.)

Accounts Receivable Aged Trial Balance (for ALL active & inactive accounts) (UT425L) must be run on Tuesday September 30th, 2008. (In addition to the Trial Balance report, an adhoc spreadsheet report (“2008 Trial Balance II with RCV Codes 1”) was created by Jerry to convert data from A/R codes to general ledger accounts. This spreadsheet will also be necessary)


Program HMSEPOCT- End of fiscal pro-rata report for September/October total bill. Must be run on 10/31/08. (“Service date” to be specified as starting on Sept 30th and “bill date” as October.)

Budget Transfers Requests for 2008 budget transfers to cover deficits or anticipated expenses must be submitted to Finance by noon on Monday, September 22nd.

HTE System AccessAll access to the system will be suspended at 3.00 pm on Tuesday September 30th, 2008 except for Finance and Customer Service (Customer Service will have access to Cash Receipts System only for the purpose of balancing and will be suspended shortly thereafter). The system access (except to Purchasing/Inventory & Fleet) will be restored at 9.00am on Wednesday, Oct 1st, 2008 in order to commence processing transactions in the new fiscal year. Access to Purchasing/Inventory and Fleet will be restored at approximately 10 am on Wednesday, October 1st. The 2008 fiscal year will remain open for Finance to process any adjusting or closing entries thru the completion of the financial audit. If you have any questions please notify any of the following or myself. Thank you for all your help.

Brian O’Conner for Procurement (Ext 4622)Luis Roura for Fleet (Ext 4662)Sonia Sinclair for Customer Service (Ext 4802)Jerry Estrada for IT (Ext 4644)Bernie Lovellette for System Access (Ext 4640)Eileen Rendon for Accounts Payable (Ext 4540)Evelin Simpson for Payroll (Ext 4547)Racquel Lopez for Cash & Collections (Ext 4545)Christi Vizcaino (Ext 4551) or Jan Smith for Finance (Ext 4543)Laurin Yoder for information pertaining to hours of operation to the public (Ext. 4485)


Important Dates Summary of FY 2008 Closing and FY 2009 Opening

Friday, Sept 5, 2008 Last day to enter purchase requisition in system.

Monday, Sept 22, 2008 Last day to submit 2008 budget transfer to Finance.

Procurement will be closed from Sept 22nd thru Sept 30th.

Tuesday, Sept 23, 2008(noon) Last day to enter FPO in system and have all related support in the accounts payable office. Purchasing to approve all FPO’s by 1:00 PM. All other FPO’s will be deleted.

Wednesday, Sept 24, 2008 Utility Customers’ final meter reading

Thursday, Sept 25, 2008 Utility Customers’ final billing.

Monday, Sept 29, 2008 External Auditors will be on site to observe inventory counts (date to be confirmed).

Fleet will be closed from Sept 29th thru Sept 30th.

Tuesday, Sept 30, 2008 Finance Central Collections will stop collecting and will close to the public at 3.00 pm. Customer Service will also close out their daily batches at 3.00 pm, but will continue cash collection using manual procedures. (Please post for customers in advance at windows, and other areas where City information is provided to customers.).

H T E access will also be suspended for all users at 3.00 pm

except Finance and Customer Service (CS will have access to Cash Receipts System Only). All batches in Cash Receipts System must be balanced and posted by 5.00 pm

Customer Service and IT will run Customer Deposits Report UT444L.

Customer Service and IT will run Accounts Receivable Aged Trial Balance Report UT425L

Wednesday, Oct 1, 2008 H T E system (except Purchasing/Inventory and Fleet) will be opened at 9.00 am and access restored to start the 2009 fiscal year processing.

Purchasing/Inventory and Fleet access will be restored at approximately 10 am.

Friday, Oct 31, 2008 Customer Service and IT will run the Pro-rata Report (Program HMSEPOCT)


Important Dates Summary of FY 2008 Closing and FY 2009 Opening (cont.)

Tuesday, Nov 4, 2008 Last day to submit invoice to pay 2008 purchase orders from 2008 budget. (Items and services must have been received by 9/30/08).

Friday, Nov 7, 2008 A list of PO’s to be rolled to FY 2009 must be submitted to Finance. Any PO’s not on the list will be liquidated.


2008 year end closing memo

Economy & Finance