Fiscal Year-End
Review Session
Presenter Contact Information:
Celeste Bernal
Associate Controller
Email: [email protected]
Phone: 575-646-7663
Agenda
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Year-end Schedule & Important Dates
Dual Year Processing
Review of Indexes & Accounts
Property Accounting – Purchase of Equipment
Year-end Accruals
P-card Deadlines
JV Processing
Miscellaneous
Questions
Presenter Contact Information:
Carolina Munoz
Audit Liaison
Email: [email protected]
Phone: 575-646-3144
Key Year-End Dates
– June 23 - DPRs, JVs, and IDVs to be included
in FY16 are due to Fiscal Monitor
– June 24 - Last day to purchase items from
Bookstore. The Bookstore will not be closed
during year-end.
– June 30 - any FY16 ELRs must be completed
and approved by all parties
– July 1 – 1st Close
Key Year-End Dates, cont.
– July 8 - Deadline for JVs from Business
Managers and Research Centers
– July 12 – 2nd Close
– July 19 – 3rd Close – starting at 5:00pm
– July 22 - Controller Close reports available
following day
Transaction Date vs.
Activity Date
• Transaction Date – Banner posts transactions to
fiscal years and periods based on the transaction date.
• Activity Date – The date a transaction is actually
entered into Banner.
Dual Year Processing
• You may begin processing FY17 purchase
requisitions on June 1, 2016.
• Creating a FY17 requisition during the Dual
Year period:
-Transaction Date must be >June 30, 2016
-Delivery Date must be > Transaction date
Dual Year Processing, cont.
Banner Finance Procurement manual online at http://training.nmsu.edu
Reviewing Funds
• General Ledger Review
– Review Assets, Liabilities, and Fund Balance
• Look for reverse balances
• Compare for no change from prior year
• AFR exception reports will help identify issues but
don’t wait for them.
Reviewing Indexes
• Unrestricted Funds
– I&G and Non I&G Funds
• Compare current year activity to prior year
activity.
• Question any expense with a credit balance.
• Verify that there is not any YTD expense
activity in account code 799800.
• Compare budget to actual expenses.
Reviewing Indexes, cont.
– I&G Funds
• There should not be any YTD activity in
the following account codes
– Revenue accounts
– Resale accounts
– Applied charges accounts, 795xxx (except in
specific circumstances)
Reviewing Indexes, cont.
– Non I&G Funds
• Question any revenue that has a debit
balance.
• Verify that any resale account codes,
77xxxx are appropriate on that index.
Reviewing Indexes, cont.
• Zero all default P-card account codes –
738011
• 760905 – NMGRT Goods >$10.00
• Federally excluded account codes
• Refer to BDMS for back-up documentation
for journal vouchers
• For BDMS access http://rmr.nmsu.edu/bdms-access/
Reviewing Indexes, cont.
• Restricted Funds
– Various State of New Mexico billings have a
quicker than normal turnaround time.
• Be prepared to submit final expenditures in order to
avoid the risk of late billing which could result in the
agency refusing to pay.
– Departments should continuously review any
accounts receivable balances that are 120 days or
older and support SPA in collection efforts to
avoid the write off of receivables at year-end.
Presenter Contact Information:
Mike Hoskins
Property Accounting Manager
Email: [email protected]
Phone: 575-646-3133
Property Accounting
• Introduction to Property Accounting Office
• Best practices (which lead to an easier year-end)
• Year-end considerations
Property Accounting Office
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Plant Fund Accounting (funds X8XXXX)
Construction Project Monitoring
Property, Plant, and Equipment Capitalization
Inventory Change Request (ICR) Processing
Property and Equipment award closeouts
Bond Monitoring and Billing (GOB, STB, RB)
Lease and Insurance Monitoring and Analysis
Best Practices – Inventory Change Request
Excerpt of the Inventory Change Request (ICR) form:
Best Practices - Tagged Items
U, F, S, or P tags – Who owns it?
Here are some examples of Tags or Barcodes:
Best Practices - Tagged Items
• Any item owned or controlled by NMSU that
meets the tagging criteria should be tagged.
• Commodity codes and account codes tell Property
Accounting what items to tag.
• Email [email protected] for any donated,
government furnished (GFE), or other items that
meet the tagging criteria but have no tag.
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Summary of Tagging Criteria
Account Codes
Capital Items: (780200) use 780300 for fed. funded owned by NMSU
• $5,000 and up, moveable, last more than a year U-tag
Non-Capital Items: (740100) don’t use 740190
• $1K to $4,999, moveable, last more than a year U-tag
Contractor Acquired Prop. (CAP): (780400) use 780500 for State
• $5,000 and up (unless contract states a lower threshold) F or S-tag
Gov’t Furnished Equipment (GFE): (notify via email)
• All equipment listed in contract regardless of cost F or S-tag
Donated Items: (notify via email) U-tag (or P-tag) 780700 private
• If fair value is greater than $1K.
Summary of Tagging Criteria
Commodity Codes
Available at: Cognos > Banner Lookups
Example of PO for Capital Tagged Item
Commodity Level Accounting:
Use document text or item text to communicate additional information to
Property Accounting like trade-ins, components (i.e. “line 3 is part of line
1), or “no tag needed because…”
Equipment Tagging Quick Reference Guide
Available for download at: af.nmsu.edu
Year-end Considerations
• Items received on or before 6/30/2016 will be
Capitalized, tagged, depreciated, or expensed in
FY16.
• Request and submit invoices for any tagged items.
• Invoices “unlock” the Banner tag record.
• Construction project accruals
• Work done on construction projects but not invoiced
will need to be accrued and added to CWIP.
Year-end Considerations
• Cut-off for year-end – HED Library GOBs
– FY16 PCard purchases for HED Library General
Obligation Bonds must be completed by June 10th, 2016.
– Backup documentation for any outstanding expenses needs
to be submitted to AFR by July 7th, 2016.
– Failure to meet deadlines might result in HED not
reimbursing NMSU for some purchases.
Presenter Contact Information:
Lesley Doyle
Director, Accounting and Financial
Reporting
Email: [email protected]
Phone: 575-646-5281
Accounts Payable Dates
• Notable Dates
– July 12 thru July 19 - Remaining FY16 PO invoices
will not be paid
– July 19 - FY16 encumbrances will be rolled forward
in Banner
– NOTE: All DPRs & RV’s received in A/P after June
30, 2016 will be posted in FY17
Accruals
• Our financial statements must include all revenue
earned and expenses incurred in FY16, even if the
transactions have not been completed. The year end
accruals adjust the revenues and expenses that are in
Banner to amounts required for full accrual financial
reporting.
• The effect of the accrual is reversed in FY17.
Accruals, cont.
Three-way match
The terms of the PO require that the invoice be matched to the PO and that
the goods/services have been received in Banner before the invoice can be
paid.
Example:
– Ordered a microscope on 5/30/16 which was received 6/29/16
– MUST show receipt in Banner by 6/30/16 or it will not be
automatically accrued
– Invoice sent to A/P to be paid
– A/P will automatically accrue if it was received correctly in
Banner by 6/30/16
– VERY important to receive items in Banner that were actually
received by 6/30/16
Accruals, cont.
Two-way match
• Departmental
• Construction
• Subcontract (reviewed by SPA)
Accruals, cont.
• Two Way Accrual Process:
– AFR runs a COGNOS report that lists open two-way match POs.
– Each department will receive a list of their open two-way match POs
for review.
– Departments are asked to review the information and provide AFR with
a list of the POs that should be accrued for year-end and the amount of
each accrual based on invoices or correspondence from the vendor.
AFR accrues using account code 221005. Accruals reversed in July.
– PO balances for plant funds charged to account codes 754x, 782x, 783x
and 792x will not appear on the two-way report. These POs are
included in the Construction or Subcontract accrual reports.
Examples
– Procured services on 5/30/16; the services were complete by
6/30/16. Invoice sent to A/P but not before 2nd close. You will
need to let AFR know to accrue the amount of services.
– Procured services on 5/30/16; the services were NOT complete
by 6/30/16. Invoice sent to A/P but not before 2nd close. AFR
will NOT need to accrue the amount for services.
– Procured services on 5/30/16; the services were PARTIALLY
complete by 6/30/16. Invoice sent to A/P but not before 2nd
close. AFR will need to accrue the amount for services over
$10,000.00.
Purchasing
• Clean up Incomplete Purchase Requisitions
– Review Banner FOADOCU (Document by User).
– Refer to Banner Finance Procurement Manual for
process to delete a requisition.
PCard FY 16 Deadlines
• All Pcard purchases through 6/30/16 will be
posted in FY16.
– New process for FY16
– Purchases through 6/16/16 will post to Banner on
7/1/16 for FY16.
– Purchases through 6/30/16 will post to Banner on
7/15/16 for FY16.
– Business managers will be contacted to assist with
outstanding PCard balances in their areas.
Presenter Contact Information:
Ben Glickler
Manager of FIP
Email: [email protected]
Phone: 575-646-5264
FIP JV Processing
• Electronically Routed JVs (JEC/JED, B4C/B4D)
– These must be routed through Banner queues for approval so
consider the timing when close to month end.
• Electronic JVs (JE16s, CR05s, &c)
– Consider FIP and Fiscal Monitor deadlines
– Hard copies requiring fiscal monitor signatures
– Physical copy & electronic copy sent to fiscal monitors who
forward them to FIP after review
• Manual entry (IDVs, CR05s, &c)
– Less than ten lines
– Consider FIP and Fiscal Monitor deadlines
• Plan ahead! Errors cause delays.
FIP JV Processing
• Electronically routing JVs– Remember that yearend is a busy time so plan ahead to avoid delays.
• Uploads requiring signatures– Non-routing
uploads (JE16s, etc) must come to FIP from fiscal
monitors.
• Posting schedule– Uploads submitted late in the
period may be delayed by errors. Timely and early
submission to fiscal monitors will help avoid delays.
FIP JV Processing
• Errors will cause delays in processing.
• Tips to avoid common errors:
– Make sure index is valid (i.e., not termed, etc.).
– Make sure username is authorized to post.
– Double-check account numbers.
• Make sure account hasn’t been termed.
– Use the correct spreadsheet (JE16 vs. JED, etc).
– Make sure transaction date is in the current open
period.
Upload Templates
AF.nmsu.edu
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