Year-End Closing of the Books FY 2014-15
In this informative text, the process of closing the fiscal year 2014-15 is detailed, covering essential aspects such as financial statements, reconciliations, and reporting. Gain insights into the necessary steps for a successful year-end closing and ensure accuracy in financial records.
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Year-End Closing of the Books FY 2014-15
Overview of Closing Why? 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 tomonitor, project, budget, evaluate performance, perform system audits, analyze anomalies, audit, compare and contrast with other years/funds/institutions etc
Overview of Closing 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
Balance Sheet Account Codes (FGITBAL General Ledger) A = Assets B = Liabilities C = Control Accounts (Income Statement Totals) D = Fund Balance E = Fund Additions F = 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 Income Statement Balance Sheet 0XXXX FGITBAL Revenue C0010 Labor General Expense Transfers 9XXXX 1XXXX 2XXXX-8XXXX C2010 C1010 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 Ledgers General 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 A3101 A3103 A3106 A3109 A3110 A3130 A3131 A3132 A3133 A3134 A3135 Account Code Title Misc Advances Receivable-Non SIS Misc A/R Sundry Receivable NIBL-Non SIS Travel Advance Receivable Non-SIS Restoration Fund Receivable Catering Accounts Receivable Setup/Tech Accounts Receivable Child Care Accounts Receivable USDA Accounts Receivable Season Ticket Accounts Receivable
Non-SIS Accounts Receivable University of Oregon Non-Student Accounts Receivable Aging Fiscal Year 2015 Department: Fund: Acct Code: Prepared by: Approved by: Date Submitted: Due From Description of Charge < 1 Year FY15 1-2 Years FY14 2-3 Years FY13 3-4 Years FY12 4-5 Years FY11 > 5 Years Total* 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 Accruals Prepaid 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 Prepaid Services & Supplies A5019 A5020 Prepaid Travel A5021 Prepaid Subscriptions/Memberships Prepaid Capital Assets A5022 A5023 Prepaid Software Expenditures A5030 Prepaid Miscellaneous Expense *** A5901 Misc Prepaid Expense Year-End Accrual is no longer used.
Unearned and Undistributed Revenue Accruals Unearned 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 Credit Department Index Department Index Unearned Revenue Account Code (B5XXX) 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 8Last 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 22Period 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 This includes: Budget changes Invoices JVs 30-JUN-2015 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 FY15 http://ba.uoregon.edu/staff/year-end-close UO Financial Statements http://ba.uoregon.edu/staff/financial-reports
