year-end closing of the books fy 2014-15. overview of closing why? gaap – generally accepted...
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Year-EndClosing of the Books
FY 2014-15
Overview of ClosingWhy?
GAAP – Generally Accepted Accounting Principles End of the business cycle:
• State sessions end in June
• UO activity begins with summer session (excluding Law)
Federal (GASB) & State requirements• UO mandated deadlines in order to meet required State
deadlines
Snapshot in time• YTD activity (FWIBUDG) and year-end balances
(FGITBAL) are used to monitor, project, budget, evaluate performance, perform system audits, analyze anomalies, audit, compare and contrast with other years/funds/institutions etc…
Why?
Annual reporting – internal & external • Rolled into State of Oregon financial statements
• Used by stakeholders such as general public, federal agencies, HECC, federal F&A rate setters, accrediting agencies, NCAA, creditors and bond services, etc…
Auditors – internal & external• Test for accuracy, consistency, & reliability of
systems including our policies & procedures
• Help us establish best practices
• Includes: UO Internal Audit, DHHS, Naval Research, NCAA, Moss Adams (financial statement & A-133), Secretary of State, etc…
Overview of Closing
What?
Recording activity that takes place between:
July 1, 2014 and June 30, 2015
Transactions must be recorded in the fiscal year that the event takes place, regardless of when budget or cash is available
Includes accruals posted by July 22, 2015 Applies to all funds in FIS regardless of the source
Overview of Closing
What?
Close fiscal period 12 and open fiscal period 14• Fiscal period 12:
Record June and remaining FY15 activity
• Fiscal period 14: Review and post necessary corrections/accruals
Departments have first week
BAO/BRP/SPS have additional week
Close fiscal period 14 (FY15) CAFAR team extracts data and populates reporting system BAO collects all FY15 transactions through the date
financial statements are issued in November to report subsequent events
Overview of Closing
Balance Sheet Account Codes(FGITBAL – General Ledger)
A = AssetsB = LiabilitiesC = Control Accounts (Income Statement Totals)D = Fund BalanceE = Fund AdditionsF = Fund Deletions
When FP12 is closed and FP14 is opened, actual income/expense account balances from FY15 FP12 are closed into FY16 fund balance.
Income Statement/Balance Sheet
FWIBUDG FGITBAL
Income Statement Balance Sheet
Revenue 0XXXX C0010
Labor 1XXXX C2010
General Expense
2XXXX-8XXXX C1010
Transfers 9XXXX C5010
Fund Bal D0010
FY16 Beginning Balances Before period 14 is opened, FY16 balances
only include FY16 transactions
FY16 Beginning Balances When period 14 is opened, FY15 period
12 ending balances become FY16 beginning balances (recorded in period 00)
• Document type YEOB, numbered GLRL15XX
Then, each entry posted to FY15 during period 14 has a mirror entry in FY16 period 00
Subsidiary Ledgers Provide a greater amount of detailed
information FIS Examples – Student A/R, Grants Billing
Module, Fixed Asset System, Accounts Payable Complimentary (shadow) systems are often
used by departments as subsidiary ledgers (examples – QuickBooks, Excel, Access)
Subsidiary ledgers must be reconciled to Banner FIS
The FIS general ledger is the official source of financial information for the UO
Subsidiary LedgersGeneral ledger account codes require supporting detail schedules reconciled to Banner FIS. Commonly used accounts include:
Account Code
Account Code Title Account Code
Account Code Title
A3103 Misc Accounts Receivable B0190 Received Items Payable
A3106 Sundry Receivable B5120 Prepaid Tuition & Fees
A3702 AR from Affiliated Foundation B5802 Unearned Revenue
A4002 Organized Storeroom Inventories
B5817 Unredeemed Gift Cards/Certificates
A5019 Prepaid Services & Supplies B5801 Undistributed Revenue
A5020 Prepaid Travel B5901 Accrued Undistributed Income
A5021 Prepaid Subscriptions/Memberships
A5022 Prepaid Capital Assets
A5023 Prepaid Software Expenditures
A5030 Prepaid Miscellaneous Expense
A5901 Prepaid Expense Year End Accrual
Non-SIS Accounts Receivable
Each department must submit a detail and aging report of their non-SIS accounts by July 16th
These reports must be reconciled to Banner as of period 14 (generally use FGITBAL)
Includes all receivables from entities that are external to UO (including other former and current OUS entities)
Non-SIS Accounts Receivable
Account Code
Account Code Title
A3101 Misc Advances Receivable-Non SIS
A3103 Misc A/R
A3106 Sundry Receivable
A3109 NIBL-Non SIS
A3110 Travel Advance Receivable – Non-SIS
A3130 Restoration Fund Receivable
A3131 Catering Accounts Receivable
A3132 Setup/Tech Accounts Receivable
A3133 Child Care Accounts Receivable
A3134 USDA Accounts Receivable
A3135 Season Ticket Accounts Receivable
Non-SIS Accounts Receivable
University of OregonNon-Student Accounts Receivable Aging
Fiscal Year 2015Department: Fund: Acct Code:
Prepared by: Approved by:
Date Submitted:
Due Description of < 1 Year 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 YearsTotal*
From Charge FY15 FY14 FY13 FY12 FY11 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total 0 0 0 0 0 0 0
* Reconcile grand total to the General Ledger by fund and account
List indexes associated with this reconciliation:
Expenditure Cut-Off Guidelines
According to Generally Accepted Accounting Principles (GAAP), accrual accounting requires expenditures to be charged to the fiscal year and period in which goods are received or services are performed, regardless of when budget or cash is available.
For goods and services received by June 30 for which vendor invoices have not been received as of July 22, fill out an AP Report and forward it to BAO Financial Services.
http://ba.uoregon.edu/sites/ba/files/forms/yearendap.pdf
Prepaid Expense AccrualsPrepaid Expense:
Expenses for future fiscal years that are paid prior to June 30, 2015 should be
coded to a prepaid expense account code. Post a reversing journal voucher with a
transaction date in the future fiscal year and period that the goods or services will be
received. This journal voucher may be processed at the same time, if the future
period is open.
For amounts posted as expense in FY15, that should be prepaid expenses for future years:
Debit Department Index Prepaid Expense (A5013 – A5030)
Credit Department Index Expense Account Code
To remove the prepaid and recognize the expense in the future year:
Debit Department Index Expense Account Code
Credit Department Index Prepaid Expense (A5013 – A5030)
*** Tax reportable expenses must first be coded to an expense account code when processing an invoice.
Prepaid Expense Account Codes
Account Code Account Code Title
A5013 Prepaid Worker’s Comp Insurance
A5019 Prepaid Services & Supplies
A5020 Prepaid Travel
A5021 Prepaid Subscriptions/Memberships
A5022 Prepaid Capital Assets
A5023 Prepaid Software Expenditures
A5030 Prepaid Miscellaneous Expense
*** A5901 Misc Prepaid Expense Year-End Accrual is no longer used.
Unearned and Undistributed Revenue AccrualsUnearned Revenue - Payments received for goods or services which have not yet been
provided.
GAAP requires revenue be credited to the fiscal year that the goods or services will be provided.
Revenue for future fiscal years that is received prior to June 30, 2015 should be coded to an unearned
revenue account code. Post a reversing journal voucher with a transaction date in the future fiscal year
and period that the goods or services will be provided. This journal voucher may be processed at the
same time, if the future period is open. B5802 has been more clearly titled for this purpose.
Undistributed Revenue - Revenue earned for goods or services and not yet distributed.
Undistributed revenue should be cleared to zero by year-end close. B5801 has been more clearly
titled for this purpose.
Unearned Revenue Accruals
To deposit payment through TWADEPO when it is received:
Debit (CASH, CHEK, CARD, or BANK depending how revenue was received)
Credit (MISC) Department Index Unearned Revenue Account Code (B5XXX)
To remove the unearned revenue and recognize revenue in the future year:
Debit Department Index Unearned Revenue Account Code (B5XXX)
Credit Department Index Revenue Account Code
Unearned & Undistributed Revenue Account Codes
Account Code Account Code Title
Unearned Revenue
B5120 Prepaid Tuition & Fees
B5802 Unearned Revenue
B5816 Athletics Prepaid Revenue
B5817 Unredeemed Gift Cards/Certificates
Undistributed Revenue
B5801 Undistributed Revenue
*** B5901 Accrued Undistributed Income is no longer used.
Dates to Remember:
June 5 June regular payroll deadline June 17 Contact BAO for help accruing department
non-student accounts receivable June 26 Last day to submit wire transfer to AP June 30 Last day to submit student receivables June 30 Last day to deposit cash by 3:00pm June 30 Goods and services must be received by this
date to pay with FY15 funds July 2 Last day to submit payroll form (PAA)
for FY15
**(Items input in July require a 30-JUN-2015 transaction date)**
Dates to Remember:
July 7 Last day to submit upload JVs for period 12 (Z documents through AppWorx)
July 8 Last day to liquidate encumbrances that shouldn’t roll to FY16
July 8 Last day to submit budget changes for period 12 July 8 Last day to input an invoice for period 12 July 8 Last day to input JVs for period 12 July 8 Period 12 Close (5:00pm) July 9 Period 12 reports are available
**(Items input in July require a 30-JUN-2015 transaction date)**
Dates to Remember:
July 15 Last day to input JVs for period 14 July 15 Last day to input budget changes for period 14
July 15 Last day to input an invoice for period 14 July 15 Campus lock-out (5:00pm)
For assistance with FY15 transactions after the lock-out, contact
BAO General Accounting.
**(Items input in July require a 30-JUN-2015 transaction date)**
Dates to Remember:
July 16 Detail and aging reports due for all non-SIS accounts
receivable July 22 Last day to submit year-end AP Reports July 22 Period 14 close (FY15) July 23 Period 14 reports are available
**(Items input in July require a 30-JUN-2015 transaction date)**
Dating FIS Documents
After June 30th, any document input for
FY15 must have the transaction
date changed to
30-JUN-2015
This includes:
Budget changes
Invoices
JVs
Travel reimbursements
Encumbrances
All open encumbrances (except zero balance items) will be rolled into FY16 Banner FIS operating ledger
Liquidate any encumbrances that you do not want to roll into FY16 before the close of period 12 (July 8th)
Late FY15 and Subsequent Event Reporting
Report FY15 activity and subsequent events to BAO Financial Services as follows:
July 16 to 22 – for posting into Banner FIS during lock-out
July 23 to August 31 – to be included in UO Financial Statements
September to October – late reporting
Reporting Property Not Owned by the UO
To provide required information for leased asset year-end reporting
To provide adequate insurance coverage
FWIFLST – Banner query form to review inventory records• Leased Property (Acquisition codes LE/LP)
• Loaned Property (Acquisition code LN)
Real Property
Performed in conjunction with BAO Property Control and Campus Planning, Design & Construction
Capitalization of construction in progress (CIP) expenses
Conversion of completed projects into the Banner FIS real property records
Componentization of specified buildings used extensively for research
FY15 Accomplishments Governance change
• First independent year-end closing
• First stand alone financial statements
• UO Internal Audit Department
• Independent Board of Trustees
• Moved banking to US Bank
• Separate tax identification number
UO’s first bond sale Facilities and administrative rate proposal
submitted Additional Cognos IDR reporting available
Looking ahead to FY16
Creating a University of Oregon account code reference webpage to replace the OUS version
Continuing modification of the UO Chart of Accounts
Continuing to update adopted policies
BAO Financial Services Business Affairs -
http://ba.uoregon.edu/nosidebar/contacts
General Accounting, CAFAR, and Property Control – http://ba.uoregon.edu/staff/actg-and-finl-mgmt-contacts
Travel (6-3158) - http://ba.uoregon.edu/staff/travel-office-contacts
Accounts Payable (6-3143) - http://ba.uoregon.edu/staff/ap-invoice-payment
Useful Links
Year End COB Instructions and Deadlines FY15http://ba.uoregon.edu/staff/year-end-close
UO Financial Statements http://ba.uoregon.edu/staff/financial-reports
Closing Remarks