fiscal officer meeting
DESCRIPTION
Fiscal Officer Meeting. Thursday, May 21, 2009. Accounting Updates. Ernie Cornford. New GASB’s. FY 2009 GASB 49 – Pollution Remediation Obligations GASB 52 – Land & other real estate held as investments by endowments - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/1.jpg)
Fiscal Officer Meeting
Thursday, May 21, 2009
![Page 2: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/2.jpg)
Accounting Updates
Ernie Cornford
![Page 3: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/3.jpg)
New GASB’s
• FY 2009– GASB 49 – Pollution Remediation Obligations– GASB 52 – Land & other real estate held as investments by
endowments– GASB 55 – GAAP Hierarchy (Incorporates AICPA definitions to
GASB literature)
• FY 2010– GASB 51 – Intangible Assets– GASB 53 – Derivatives
• FY 2011– GASB 54 – Fund Balance
![Page 4: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/4.jpg)
FY 2009
GASB 49 – Pollution Remediation Obligations
• Requires accounting & disclosures for University’s existing pollution remediation obligations
• Excludes pollution prevention & control obligations and future pollution remediation required when retiring assets (e.g., nuclear power plant decommissioning)
![Page 5: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/5.jpg)
FY 2009 – GASB 49 continued
• Obligating events that cause a need for accounting/disclosure:– Being compelled to take pollution remediation
action due to immediate endangerment– Violating a pollution prevention-related permit or
license– Being named or expecting to be named as
Responsible or Potentially Responsible Party– Being named or expecting to be named in
lawsuit to compel pollution remediation– Commencing or legally obligating itself to
commence pollution remediation
![Page 6: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/6.jpg)
FY 2009 – GASB 49 continued
• Components of the Liability– Legal services– Site investigation– Remediation design & implementation– Required postremediation monitoring
• Recognized as costs become reasonably estimable– Measurement is based on current value of
expected outlays
![Page 7: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/7.jpg)
FY 2009 – GASB 49 continued
• Expected recoveries from third parties or insurance
• Pollution remediation outlays are capitalized in certain circumstances
• Information gathered to date:– Currently known obligations are minor, but
results of a couple assessments are now pending
![Page 8: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/8.jpg)
FY 2009 continued
GASB 52 – Land & Other Real Estate Held as Investments by Endowments
• Requires endowments to report land & other real estate investments at fair value
• Changes in fair value are reported as investment income• Disclosure of methods & significant assumptions required• Affects Columbia campus
GASB 55 – GAAP Hierarchy• Incorporates the Generally Accepted Accounting
Principles hierarchy into GASB’s literature (previously existed only in AICPA literature)
• No changes to hierarchy, therefore immediately applicable
![Page 9: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/9.jpg)
FY 2010
GASB 51 – Intangible Assets• 3 required characteristics:
– Lack physical substance– Nonfinancial in nature– Initial useful life beyond a single fiscal year
• Includes such things as patents, trademarks, computer software, land use rights, etc.– Has to be identifiable, separable (can be sold,
rented or otherwise transferred to another party) OR arise from contractual or other legal rights
![Page 10: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/10.jpg)
FY 2010 – GASB 51 continued
• Accounting – – If held as assets, treated as Capital Assets – If acquired or created for income production or profit, treated
as Investments
• If internally-generated, 3 required criteria to be capitalized:– A specific objective and service capacity has been determined– Feasibility of completing the project has been demonstrated– The intent to complete or continue development has been
demonstrated
• One known challenge – – Identifying the University’s patents
![Page 11: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/11.jpg)
FY 2010 GASB 53 – Derivatives
• Agreements that transfer risk from one party to another – The value is based on changes in market
prices of item being hedged– Can be used to hedge (reduce) financial risk,
lower borrowing costs, generate income, or manage cash flows.
![Page 12: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/12.jpg)
FY 2010 – GASB 53 continued
• Required to measure derivatives at fair value as assets or liabilities– Fair value at June 30 reported in SNA– Change in fair value of a investment
derivative is reported in SRECNA as investment gains or losses
– Change in a hedging derivative is deferred until agreement is terminated or hedge ceases to be effective
![Page 13: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/13.jpg)
FY 2010 – GASB 53 continued
• Do you really want to know more?
• Note disclosures include:– Financial objective for the agreement,
significant terms, net cash flows of those that hedge debt (e.g., interest rate swaps), termination risk, credit risk, interest rate risk, basis risk, rollover risk, market-access risk, and foreign currency risk
![Page 14: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/14.jpg)
FY 2011
GASB 54 – Fund Balances• Establishes fund balance hierarchy based on
extent to which government is bound to observe spending constraints on its resources– Nonspendable– Restricted– Committed– Assigned– Unassigned
![Page 15: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/15.jpg)
Update on Strategic Initiatives
• Scrub Accounts
• CRR/ARR Redesign
• Online Managerial Review/Checklist Audit Trail
![Page 16: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/16.jpg)
Scrub Accounts
• Objective: To ensure our Accounts are relevant, useful, streamlined and meet our business needs
• Goals1. Users can easily determine the appropriate Account to
use (eliminate overlapping descriptions)2. Smart numbering is improved3. Elimination of immaterial Accounts4. Elimination of Accounts no longer relevant to current
business needs5. Elimination of duplicate/ambiguous Accounts
![Page 17: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/17.jpg)
ARR/CRR Rewrite
• Objective
– To provide end users with a web-based interface to efficiently enter cash receipts with enhanced business features.
![Page 18: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/18.jpg)
ARR/CRR Rewrite cont’dGoals• Accurate accounting records:
– Allows limited posting to prior periods for wires– Elimination of posting errors– Real-time save and validation in production system (but nightly
posting to GL)• Streamlined user interface
– User can enter ChartFields on Receipts– Can enter both negative and positive amounts– Better handling of Letter of Credit across multiple Business Units
• Enhanced Internal Controls– Security is enhanced to provide data accuracy and ease of entry,
different access rights (add, update, correct, delete & view– Improved ability to segregate duties
![Page 19: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/19.jpg)
Managerial Review/Checklist Audit Trail
• Objective: To provide managers the ability to indicate their review online and provide ablility to review history of checklist online
• Goals– Provide online an efficient way for users to indicate
managerial review and their comments– Reduce paper documentation– Provide monitoring too for management
![Page 20: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/20.jpg)
Fiscal Officers Meeting
Errol Benson
![Page 21: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/21.jpg)
• Time & Labor Update– Schedule Change
• Complete by Thanksgiving 2009
– Training Requirements• Train the Trainer Concept
• Talx the Work Number– Employment verification system– Implementing Jun 1– Mass communication coming
![Page 22: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/22.jpg)
• ASIA (Annual Salary Increase Application)– Will be used to update appointment end dates
for contracts– Non-contracts with no increase
• Will update JOB with action/reason (DTA/RPT)
– JED Updates– Salary Increases if any
![Page 23: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/23.jpg)
• Employee contributions to UM Retirement Plan 1%/2%– July 1, 2009 Implementation– Monthly: 7/1-7/31 for 7/31/2009 pay date– Biweekly: 7/12-7/25 for 8/5/2009 pay date– New “T” Earn Code developed to identify earning that should not
contribute to retirement– For Summer Session 2/9s for Research
• Must us “T” to identify periods in excess of 2/9s
– We currently distinguish excess 2/9s for Teaching
• Payroll Reconciliation– Please insure you complete them
![Page 24: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/24.jpg)
Senior Fiscal Officer Meeting
Randall Vogan
May 21, 2009
![Page 25: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/25.jpg)
FY 2009 Closing Schedule
• No access to Finance Production instance between 7/1/09 and 7/3/09. This includes:– Non-PO Voucher Create, Requisitioning, Approving,
Receiving, and eProcurement– Budget entry, AR/BI, GL Journal Import, and Grants
Module
• Web applications that will be available include:– Web JE, MoCode Create, PS Financial Reports,
CRR– No nightly processing will take place
![Page 26: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/26.jpg)
FY 2009 Closing Schedule
• Last day to enter non-PO vouchers in FY 09 is 6/30/09– Verify that the ChartFields entered on each
voucher are appropriate and budgeted
• Vouchers (non-PO and PO) entered between 7/4/09 and 7/9/09 with invoice dates before 7/1/09 will be accrued in the old FY– First day to enter vouchers in FY 10 is 7/4/09– Check invoice dates entered during this period
![Page 27: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/27.jpg)
FY 2009 Closing Schedule
• Last day for departments to edit Purchasing Card transactions in PaymentNet is 7/1/09, Noon– Departments have until 7/10/09 to get signed
Statement of Accounts to Procurement Services
![Page 28: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/28.jpg)
FY 2009 Closing Schedule
• Last day to enter web JE’s in FY 09 is 7/16/09– Between 7/1/09 and 7/16/09, if FY 09 entry, enter
6/30/09 journal date
• Last day to import FY 09 data into GL is 7/7/09– Between 7/4/09 and 7/7/09 use 6/30/09 date
• Last day to enter FY 09 CRR’s is 6/30/09– Accounting will review CRR’s prepared between
7/1/09 and 7/9/09 for cash in transit entry
![Page 29: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/29.jpg)
FY 2009 Closing Schedule
• Last day to enter FY 09 AR/BI invoices is 6/30/09– Invoices entered between 7/4/09 and 7/9/09
with June date will be posted back to FY 09
• Last day to enter FY 09 ARR’s is 6/30/09
![Page 30: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/30.jpg)
Prepaid Expenses
• Expenses vouchered in the current fiscal year for goods or services that will not be received until next fiscal year are considered prepaid expenses– Accounting will check for prepaid expenses
greater than $5,000 (excluding grants) and transfer the expense to new FY as appropriate
– Accounting will transfer prepaid expenses less than $5,000 to new FY at fiscal officer’s request
![Page 31: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/31.jpg)
Accrued Expenses
• Expenses vouchered in FY 10 for goods or services that were received before 7/1/09 are considered accrued expenses– If voucher processed between 7/4/09 and 7/9/09
with old year invoice date, expense will be transferred to old year using original ChartFields
– If voucher processed between 7/10/09 and 8/8/09 with old year invoice date, expense will be transferred to old year using high level ChartFields
![Page 32: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/32.jpg)
Deferred and Accrued Revenue
• Revenue that is recorded in the current FY for a good or service that will be provided by the department in the next FY is considered a deferred revenue
• Revenue should be accrued in the current FY if a good or service was provided this year and the payment will not be recorded until next FY
• Use a revenue threshold of $5,000
![Page 33: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/33.jpg)
Expense or Revenue
• Check for year to year consistency and the dollar amount when considering whether an expense or revenue item should be recorded in the old or new fiscal year
![Page 34: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/34.jpg)
Summer Session Expenses/Revenues
• Accounting will transfer summer session payroll charges from the lower department DeptID level to the higher campus DeptID level as of 6/30/09. Entry will be reversed in FY 10
• Finance will record 50% of summer session revenue and scholarships as deferred/prepaid and 50% as revenue/expense at higher campus DeptID level as of 6/30/09. Entries will be reversed in FY 10
![Page 35: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/35.jpg)
Reduction of Expense
• Refunds, discounts, or rebates received by the University from a vendor for goods or services purchased from the vendor
• Reimbursement of insignificant and incidental usage of University resources when the resources are not typically used to provide services on a fee for service basis
![Page 36: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/36.jpg)
Budget Stuff
Joann Wilkinson
![Page 37: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/37.jpg)
Segregation of Duties
Ernie Cornford
![Page 38: Fiscal Officer Meeting](https://reader036.vdocuments.site/reader036/viewer/2022070418/568159e3550346895dc72db2/html5/thumbnails/38.jpg)
Segregation of Duties
• Campus events
• Steve Stanley willing/wants to meet with units– Tuesday, Wednesday or Thursday– About 1 ½ to 2 hours– May/June timeframe– Unit Heads