Fiscal Close Workshop
May 2017
Slides from this workshop will be
available online later this week at
www.accounting.uci.edu/fiscalclose/
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Agenda
• Introduction and Overview – John Douglas
• Transactions
– Fiscal Closing Transactions – Victor Cesario
– AP/Disbursements & Travel – Karen Miller
• Encumbrances – Melissa Lee
• Payroll – Ashley Penny
• Contracts & Grants – Beata Najman
• Decision Support – Kevin Chung
• Questions
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What is Fiscal Close?
• Fiscal Close is the process of:
– Ensuring that our financial data is accurate for
the ending fiscal year;
– Organizing the campus financial records for
inspection by auditors;
– Creating our yearly financial statements which
are then consolidated with the other UC
campuses into system-wide statements and
reports for the Regents.
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Responsibilities
• Departments and their coordinating points are
responsible for seeing that all income and
expense is recorded accurately and
that all accounts close in a solvent
condition.
• The Accounting Office is
responsible for consolidating data,
preparing year end reports and statements for
the Office of the President, and producing the
final ledger.
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Three Stages of the Close for
Departments
• Preliminary – This stage reflects all direct
charges for the fiscal year.
• Interim – The one-week period after the
Preliminary deadline during which departments
can make adjustments.
• Final – There is no more department input. The
Accounting Office makes necessary adjustments
for the Final ledger.
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Key Dates
• July 5 – Recharges
complete
• July 7 – Prelim
• July 14 – Interim –
Period 12 will close in
KFS, and certain
non-final docs will be
canceled (GEC, BA,
BAT, YEDA).
• July 28 – Final
• August 7 – July will
close
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Fiscal Close
What to Expect
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What You Need to Know to
Close the Year
• June 30 – Deposits: CR, CCR, COD
• June 30 – Last day to initiate any KFS
Maintenance Changes
• June 30-July 14 Accounting Reviewer Bypass
(BA, BAT, GEC & DI documents ONLY)
• July 1-July 14 Action List Reminder/Daily E-mail
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What You Need to Know to
Close the Year
• July 7 – Last day for KFS initiated documents
where Fiscal Period 12 has been selected (drop
down). These must be FINAL except for the
documents listed on the next slide.
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What You Need to Know to
Close the Year
• July 14 – Last Day for Fiscal
Period 12 FINAL KFS initiated
documents:
o BAs & BATs
o GECs
o YEDAs (Available
July 8 – July 14)
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Accruals & Deferrals
Quick Guide to Processing
Accruals & Deferrals for
Fiscal Close 2016-17
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Why Accruals & Deferrals?
• In accordance with UCOP
Accounting Policies &
Procedures, financial
activity must be recorded
in the Fiscal Year that
relates, corresponds, or
supports that activity.
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Recording Accruals & Deferrals
• KFS Document available July 8 = YEDA
– (Year End Department Accrual/Deferral)
• Minimum amount ≥ $10,000
– (Expenses per Invoice)
• Minimum amount ≥ $5,000
– (Capitalized Equipment)
• Minimum amount ≥ $35,000
– (Plant - Capitalized Construction costs)
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What is an Accrual?
• Income
Income that you earned in June but will not
actually have the funds until July.
• Expense
Expenses for activity incurred in June but will not
pay until July.
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Income Accrual
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Expense Accrual
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What is a Deferral?
• Income
Income that you received in June but
relates/corresponds/supports activity that will not
happen until July.
• Expense
Expenses that you paid for in June but
relates/corresponds/supports activity that will not
happen until July.
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Income Deferral
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Expense Deferral
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Appropriating/Budgeting
Income/Recharges
New Process This Year:
Higher Level Alignments
Less Appropriations
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Income Object Balances
$0 Balance by Chart, Account & Object
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Income Object Balances
$0 Balance by Chart, Account & Object
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Recharge Object Balances
$0 Balance by Chart & Account
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Recharge Object Balances
$0 Balance by Chart & Account
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New Fiscal Year
What to Expect
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New Fiscal Year
• July 1 (KFS Transactions)
• Carry Forward Balances =
Budget minus Actuals
Object Code 0008
Consolidation Code UNAL
Fiscal Period BB vs. CB
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Intercampus Expense Transfers
(ICT Document)
June 30, 5pm
Due in General Accounting
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UC Campus Tab
UC Campus Tab
AP/Disbursements
Travel
Karen Miller
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Invoices Deadlines
• Invoices must be submitted to Accounts Payable
no later than July 6th 4pm.
• Email Invoices to [email protected]
• Invoices for FY 2016-17 that are not processed
by July 7th must be accrued by the department if
the expense is greater than $10K.
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Invoices Tips
• When sending invoices to AP
to pay please ensure the PO
has enough money and is ok
to pay on.
• Invoices must be submitted to
Accounts Payable no later
than July 6th. Email to
[email protected]
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TEM and DV
• All TEM and DV documents need to be
submitted, scanned and approved by
Travel Accounting by 4 p.m. on June 23rd
to be recorded as expenses for 2016-17.
• Continue to process your documents after
June 23rd, Travel Accounting will make
every effort to approve your documents by
the June 30th deadline.
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TEM and DV Cont’d
• Anything approved after June 30th will be posted
in the next fiscal year.
• Anything with a travel end date older than six
months will need exceptional approval.
• Any travel with an end date older than a year
cannot be processed
• For Travel Fiscal Close Questions contact [email protected]
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Encumbrances
Melissa Lee
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Encumbrance Report
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Encumbrance Report
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Encumbrance Carry Forward
• Encumbrance Carry Forward by 7/11/17:
o External Encumbrance (EX) = Carry Forward
 Purchase Orders
o Cost Share Encumbrance (CE) = Carry Forward
 An encumbrance related to a cost-share account
o Internal Encumbrance (IE) = Carry Forward
 Facilities Management Internal Encumbrances
 Travel Authorizations
o Pre-Encumbrance (PE) = No Carry Forward
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Encumbrances
• Please see the 2016-17 Fiscal Year-End Close
Information & Dates instructions, for deadlines & details
per encumbrance type.
– Special Purchasing Encumbrance Deadlines:
• Last Day to submit a PO Close request to Central
Purchasing: June 23
• Last Day to close fulfilled Low Value Purchase
Orders: June 30
• All PO Amends must be final on June 30 to post to
the 2016-17 Fiscal Year
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Payroll
2016-17 Fiscal Closing Dates
Ashley Penny
June Bi-Weekly (B1) Payroll
Time Reporting Deadline
• June 21st
– Pay hours and leave usage
for 6/4/17 – 6/17/17
(biweekly)
June Bi-Weekly (B1)
Payroll Cycle Cutoff
• June 22nd
– First deadline for:
• Payroll Expense Transfers
• Late/Reduce Pay
• Additional Pay transactions
– Pay Cycle “B1” and Pay Period End date
“061717”
June Monthly Payroll Time
Reporting Deadline
• June 23rd
– May 2017 leave
usage (monthly)
June Monthly
Payroll Cycle Cutoff
• June 26th – June Monthly payroll cycle cutoff
– Second deadline for:
• Payroll Expense Transfers
• Late/Reduce Pay
• Additional Pay transactions
– Pay Cycle “MO” and Pay Period End date
“063017”
Supplemental (XX)
Payroll Cycle Cutoff
• July 3rd –
– Third deadline for Payroll Expense Transfers
– Final deadline for:
• Late/Reduce Pay
• Additional Pay transactions
• Z payments (School of Medicine)
– Pay Cycle “XX” and Pay Period End date
“060117”
Payroll Expense Distribution
Ledgers for June Payroll
• July 5th –
– PPP5302 payroll ledgers Available in
Electronic Document Library (EDL)
Special (XX)
Payroll Cycle Cutoff
• July 6th –
– Final deadline for Payroll Expense Transfers
i. Use Pay Cycle “XX” and Pay Period End
date “070317”
***No Late/Reduce or Additional pay
transaction. They will be Deleted!***
Payroll Expense Distribution
Ledgers for June/July
• July 7th –
– PPP5302 payroll ledgers available in
Electronic Document Library (EDL)
Accruals for Transferring Payroll
Already Paid in 2016-17 Fiscal Year
• Work with Central Payroll – Susan Schwartz
(GEC-R accrual)
• Departments process Payroll Expense transfer
– Provide Post Authorization Notification (PAN) to
Central Payroll
• Benefits must move with salary
– Only exception is Contract and Grant funds
Contracts & Grants
Beata Najman
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Closing Steps for Contracts and Grants
 C& G Accounting sends a list of overdrafts to Finance Director
•
In May – based on April ledger
•
In June – based on May ledger
 Departmental Responsibilities
•
Review accounts in overdraft
•
Clear all overdrafts in awards not expected to receive additional funds
•
If a project is expected to continue and additional funds are expected but
delayed, obtain a request for pre-award spending (RAS)
http://www.research.uci.edu/sponsored-projects/contracts-grants-admin/preaward-admin/pre-award-spending.html
•
Email fund accountant at C&G Accounting and request closing awards with a
zero balance
•
Review and inactivate gift accounts that have no activities and will not be
used in the future
Closing Steps for Contracts and Grants
 Private Contracts ONLY
Fund Range 57100-59993
Overdrafts not cleared on June ledger will be zeroed out by
Accounting so that the fiscal year can be closed. These entries will
reverse on the July ledger, and the overdraft will be reinstated.
Closing Steps for Contracts and Grants
 C& G Accounting – Additional Responsibilities
•
Indirect cost recovery reconciliation
•
STIP review and posting
•
Refunds to the Federal government unclaimed checks on Federal projects
•
Claim submittal for Special State Appropriations
•
Final closing entries and approvals, including final closing for gift deposits
•
Final intercampus transfers and Treasurer Financial Journals
•
Corrections to invalid transactions
•
Special reporting to the Budget Office
•
Reviews of overhead calculation and final accounting data
•
Reviews of contract and grant activity for income accruals and deferrals
Decision Support
Kevin Chung
Decision Support Tools
• Toggle Encumbrances in Reports
• BLISS Ad-Hoc Query
• Organization Account Status
– You can query by the highest org
– Groups Account Balances by Income and Expenses
– Ensure that your Income categories Budget and Actuals align so
the variance is zero.
• Object Code Balance Report (FS0219)
– Shows Expense Object Codes that have credit balances
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Pre-Run Reports
• Reports being pre-run
and saved:
– Ledger Reconciliation
– Account Summary
– Account Transactions
– Fund Summary
• Reports generated for
July 1 – July 14
Use Reports to upload to KFS
• Use reports to create a file to upload data into
the Budget Appropriation Transaction.
– For details see
http://accounting.uci.edu/support/guides/budgetin
come.html
– Upload to KFS using CSV guide:
http://accounting.uci.edu/support/guides/importlin
es.html
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Questions?
Online Resources
• Workshop slides available online later this week.
• Check the “KFS News and Announcements”
Portlet on ZotPortal for deadlines.
• More information is available on the Accounting
and Fiscal Services website:
www.accounting.uci.edu/fiscalclose/
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