Year End Close FY2014
Presented by Financial Accounting & Analysis [FA&A] Team from Business Affairs
Why does OSU do Year End Accruals?
Oregon State University is under a “modified
accrual basis of accounting”
Cash basis throughout the fiscal year
Accrue and make adjustments at year-end
Accrue revenues and expenses connected with
external entities only
2
Accounts Receivable Accruals
An asset on the balance sheet
Revenue earned but not received by the close of the fiscal year
Records income in the current year
Deadlines
SIS A/R- 6/23 @ 5pm to Student Accounts in Business Affairs and
6/27 @ 5pm for direct entry by units – Banner SIS A/R closes @
noon 6/30
Non-SIS A/R - JVs due 7/8 @ 10am for period 12 entry and 7/18
@ noon for period 14
3
Undistributed (Unearned) Income Accruals
A liability on the balance sheet
Cash received in advance for goods or services provided after June
30th (review 2014 deposits)
Removes income from the current year
Do not accrue for grants or contracts
Deadlines - JVs
 7/8 @ 10am for period 12 entry and 7/18 @ noon for period 14
entry
4
Accounts Payable Accruals
A liability on the balance sheet
Expenses incurred for goods or services received in FY14 and paid
for in FY15
Accrue, if greater than $500
Posts expense in the correct fiscal year
5
Accounts Payable Accruals (cont.)
Carefully follow instructions for the Year-End A/P Accrual
spreadsheet.
Do not change column widths or any formatting
Caution: Do not process invoices with June date and include on
Accrual Spreadsheet! -This would result in double counting
Deadline
On or before July 17th @ 5pm, submit electronic Excel file to
[email protected]
6
Prepaid Expense Accruals
An asset on the balance sheet
Cash payments made in advance for goods or services received
after June 30th - includes FY15 Travel
Record expenses >$500
Removes expense from FY14
Deadline – Balance Sheet Reconciliations
7/21 @ 5pm
7
JV Accrual hints
Quick way to find the Fund of an Index
Go to FGIBDST in Banner and type index in index field to show FOAPAL
elements
Remember: the index is merely a shortcut and is not a FOAPAL element
JV Text and Description
Should say “FY14 Accrual”, then “FY15 Reverse Accrual”
Add the same text to the description on all JV lines
All accruals must be reversed with a July FY15 transaction date
Tip: Do both accrual and reversal JV at the same time.
Use
the Reverse Function in FGAJVCD
8
Accrual Reversals
Reversal JVs must have the following:
July date – we suggest July 1st
Rule code 3JV1
The exact same entries as the accrual with a change in
the debit and credit. Do not add new entries.
In the Document Reference Field, enter the original
accrual JV#
Begin text with “FY15 Reverse Accrual of J05xxxxx …”
9
Accrual Reversals (cont.)
• Enter the original JV# that you want reversed in the Copy From field. Do
not enter anything in the Copy To field
• Banner will generate a new JV#.
• Check the Reverse JV box and the Copy Text box. If you Copy Text, change
your dates and text to show the reversal in FY15.
• Change the Transaction Date to July. Review step-by-step instructions are
posted on our YEC website.
Using the
reverse
function in
FGAJVCD:
10
Accrual Reversal Responsibilities
Departments are responsible for reversing:
Receivables (Non-SIS)
Undistributed (Unearned) Income
Prepaid Expenses
Business Affairs is responsible for reversing:
Accounts Payable
OSU Foundation Receivable
Grant and Contract Accruals
11
Fund Balances
Determining the Fund Balance
Fund Balance = Assets – Liabilities
Axxxx accounts – Bxxxx accounts
Cash
+ Receivables
+ Prepaid Expenses
- Accounts Payable
- Unearned Income
= Fund Balance
12
Fund Balance: FGITBSR
13
Reconcile Designated Operation (05xxxx),
Service Center (09xxxx), and Auxiliary (1xxxxx)
Funds
Make sure all accruals are recorded for the fund with a transaction
date on or before June 30th.
See policies under FIS 500
http://oregonstate.edu/fa/manuals/fis/500
If a fund balance is negative, funding is needed from another source
and a JV must be processed following instructions found in the FIS
policies.
Ensure the working capital balance requirements are met for Service
Centers.
When an auxiliary has more than one fund, all 1xxxxx funds for that
unit
are rolled together to determine the fund balance.
14
Reconcile Gift Funds
Gift Funds (Mxxxxx, and some FAxxxx)
Gifts must not be spent before cash is received
Cash [account code A0901] must be positive when FY14 is
closed
Monitor cash balances through year-end close using FGITBSR
JVs processed in July with June transaction dates affect FY14
cash balances
Invoices processed in July with June transaction dates do not
affect FY14 cash balances
15
Reconcile Gift Funds (cont.)
If a gift fund has a negative cash balance at year-end, move nonpayroll expenses via JV to an appropriate funding source.
Deadline
July 15th @ 5pm to create the positive fund balance
Note: After July 15th, expenses will be moved by OPAA to the
departmental general fund index to bring cash to zero. These JVs
cannot be reversed in a subsequent year.
16
Reconcile OSU Foundation Funds
OSU Foundation reimbursement funds –
FSxxxx, FExxxx, 438xxx, & Gift Plant funds
Requests for reimbursement from OSUF need to be made through
the OSUF Reimbursement System by Thursday, June 27th @ 8pm for
expenses incurred to date and to cover current cash deficits
All FY14 OSUF reimbursement system transactions must be
processed by Thursday, July 17th @ Noon
Do not process accruals for the reimbursements on these funds –
Business Affairs will process the receivable accrual centrally after
July 18th.
17
Reconcile Advance Funds
See FIS 407-07 for Departmental Advances and FIS 40708 for Travel Advances
Make every effort to collect and settle advance funds
before the end of FY14
Review your Business Center Advance Fund 00116X
Reconcile remaining balances for advances
18
Reconcile Remaining Funds
What other funds are you responsible for?
Reconciling funds and reviewing transactions on a consistent
basis assists with accurately capturing all expenses & revenues
within the correct FY.
19
Reconciliation Tips / Tricks
Review Fund Reconciliation Responsibilities
oMonthly or Quarterly reviews
oView balances in FGITBSR or Data Warehouse
oMake sure of the following:
 Transactions are in correct fund and/or
account
 Debit or Credit Balance is correct
(Axxxx = D, Bxxxx = C)
 “Old” balances are resolved
20
Reconciliation Tips / Tricks (cont.)
Reconciliation Required for:
A3150 Department Advances
A3151 Travel Advances
A3802 A/R Year-End Accruals
A4xxx Inventory
A5901 Prepaid Expense Year-End Accrual
B5901 Accrued Undistributed Income
All other Axxxx & Bxxxx accounts that have a balance at Year End [Except
for A0901 Cash on Hand and B0100 Invoices Payable]
Send Reconciliation Spreadsheets by July 21st @ 5pm to
21
[email protected]
Journal Voucher Reminders
In July
Period 14 (FY14) and Period 01 (FY15) are open concurrently, until
Period 14 closes on July 22nd
Watch JV transaction and deadline dates carefully
During this period, it is important to begin text with “FYxx”
because the JV approvers are not mind readers
Use normal rule codes such as 3JV1, 3BCx or 3GNT as appropriate
22
Journal Voucher Reminders (cont.)
Redistributions or corrections
Do all corrections in current fiscal year, Period 12
Any prior year redistributions in FY15 will be reviewed for effect on
financial statements. These must receive prior approval from the
Assistant Director for FA&A/Business Affairs
No retroactive redistributions will be allowed which are between
Program Codes or Fund Types.
23
Journal Vouchers - IIJVs
Deadlines
Submit paperwork to FA&A, Business Affairs by July 3rd @
noon for Period 12
IIJV paperwork for Period 14 should be submitted by July
11th @ noon
Note: These will be the last IIJV’s processed
24
Budget Journal Vouchers
FY14 departmental budget change JVs (1xGF, 1xGP and 1xAS rule
codes) processed after June 30th need to use a June transaction
date
Complete and approve by July 8th at 12pm, noon
Only SWPS administrative budget offices are allowed to process
FY14 budget adjustments between July 9th-18th @ noon (Period 14)
25
Purchase Orders
Plan ahead for major expenditures
Watch PO deadlines
Period 01 for FY15 opens June 16th for PO’s Only
Open PO’s will be rolled into Period 01, FY15 July 16th @ 5pm
Verify purchase orders are “open” – run FGROPNE
Open PO’s for which final payment has already occurred should be
liquidated by JV
For more information on monitoring PO’s:
http://oregonstate.edu/fa/businessaffairs/bcr#trainfaa
26
40199 Construction In Progress
All 40199 account code balances must be zero at year-end
Process a JV to move all expenses from 40199 to 401xx or A80xx
per policy, if equipment is:
 Completed and ready for use – list “in use” date in text and follow instructions
in Property Manual Exhibit #1
 Still a Work-in-Progress – JV text must state
“Work-in-Progress = Y”
If the 40199 expense represents an installment or prepayment,
move all expenses from 40199 to A5901 Prepaid Expense – must be
reversed in FY15
27
Cash Receipts
Do not accumulate receipts for one final deposit! All
checks and cash should be deposited within one business
day of receipt.
Deadlines
Deposit all cash – Monday, June 23rd @ 4pm
Bulk Coin deposits – Friday, June 27th @ Noon
Monday, June 30th Cashier’s Windows close @ noon
28
Petty Cash
FY14 expenses using Petty Cash must be reimbursed in FY14
Petty Cash funds should be kept reconciled at all times
Reimbursements must be processed at least quarterly
See FIS 407-02 for additional information
Deadlines
June 30th - Physically count cash being held as Petty Cash or in
vault fund
NOTE: Dual custody count: Someone other than the person who has physical
custody of the funds must verify the count
Reconciliation due to Cashier’s Office by July 21st @ 5pm
29
Payroll
Process all labor redistributions for payroll posted through May at
the beginning of June when PYAREDS opens. An extra payroll
posting for redistributions will be on June 16th.
Deadlines
Business Center HR/Payroll staff must have paperwork affecting June pay
entered by Friday, June 13th, 5pm
All final FY14 Labor Distribution corrections must be entered in PYAREDS by
Friday, June 30th, 12pm
Note: Prior year retroactive payroll redistributions submitted in
FY15 will only be approved by Business Affairs when Program
Codes or funding sources are not affected.
30
Auto Pay Invoices
Vendors such as Office Max, Oregon State Beaver Store, VWR, or
Fisher Scientific
Expenditures are charged directly to departmental accounts via
an “ICxxxxxx” invoice
Vendor sets its own billing cycle
Deadline
FY14 purchases must be completed by Friday, June 13th to
ensure posting in FY14
31
Pcard Distribution
FA&A will stop loading Pcard transactions on June 26th
@ 10am – all transactions in the Pcard module will be
FY14 transactions that will need to be distributed
Deadline
 Pcard module processing is July 7th @ 5pm
FY15 transactions will begin loading again after Period 12 is
closed
on July 8th.
32
Travel Reimbursements
 Reimbursement requests for travel taken through June
30th must be submitted by Tuesday, July 8th @ 10am
to be included in the FY14 Accounting Records – Ensure
that the transaction has a June date in Banner
 Final June airfare direct pay files will be reviewed by
Business Affairs and only June travel dates will be
posted to FY14
 Any expenses for FY14 travel that have not posted by
July 16th should be put on the accrual spreadsheet
33
Invoices
Period 12: July 1-8, for all funds
Goods or services received on or prior to June 30th
oProcess the invoice in FY14 using a June transaction date
oDocuments must be completed and all documents/image files
to the Final Approval Unit by Tuesday, July 8th @ 10am. Business
Centers must complete final approvals by Tuesday, July 8th @
2pm.
Queues must be completely cleared of all FY14 documents.
34
Invoices (cont.)
Period 14: Fixed Assets
Using 4xxxx Account Codes or 8xxxxx Plant Funds
Goods or services received on or prior to June 30th that must be
capitalized
Process the invoice in FY14 using a June transaction date
Have all documents/image files to the Final Approval Unit
Deadline
 Thursday, July 10th @ 5pm
Necessary to allow Facilities Accounting and Fixed Asset Property Managers
sufficient processing time for capitalization and reconciliation.
35
Invoices (cont.)
Period 14: July 9-17, for all funds
Goods or services received on or prior to June 30th
Continue processing each invoice in FY14 by using a June transaction date.
Caution: Period 01 FY15 is open at this time – watch dates!
All invoices must be entered and completed, with the documents or images to
the Final Approval Unit by Wednesday, July 16th, 5pm
Final Approval must be completed by Thursday, July 17th, 12pm,
noon.
Queues must be completely cleared of all FY14 invoices.
36
Invoices (cont.)
Reminder:
Do not prepay for supplies, services,
memberships, or subscriptions that begin on or
after July 1, 2014.
Hold these invoices and process in Period 01, FY15
- July 1st or later
37
Deadlines & Instructions
Chronological list of deadlines and instructions can be
found on our YEC website:
http://oregonstate.edu/fa/businessaffairs/analysisreporti
ng/yearend.php
Pay close attention to the Major Deadlines for year-end
close
OSU Foundation - http://www.osufoundation.org/
Office of Budget and Fiscal Planning http://oregonstate.edu/budget/
38
Contact Information
General YEC Questions
Charlotte Rooks, 7-5422
Alex Sims, 7-9370
Stephanie Smith, 7-1825
Kim Jenkins, 7-3792
Angelica Smith, 7-6047
Mark Fryman, 7-0624
A/P-POs-Encumbrances
RaeLee Aguilar, 7-0635
Pcards
Rose Hamilton, 7-0650
Fixed Assets
Kayla Campbell, 7-4084
Nancy Boedigheimer, 7-7601
Autopays
Alex Sims, 7-0637
Grants, Gift, and Foundation Funds
OPAA, 7-4711
E-MAIL ADDRESSES
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
39
40