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Closing of the Books

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					Year-End Closing of the Books
         2011-2012
          Overview of Closing:
- Why?
• GAAP – Generally Accepted Accounting Principles.
• End of the business cycle:
   – State sessions ends in June.
   – UO activity begins with summer school (excluding law).
• Federal (GASB) & State (OUS) requirements.
   – OUS has a number of mandated deadlines.
• Snapshot in time.
   – YTD Activity is used to monitor, project, budget, compare
     and contrast with other funds, institutions, etc…
   – YTD balances are used for performance evaluations, system
     audits, anomalies, etc…
            Overview of Closing:
- Why?
• Annual reporting – Internal & external.
    – Rolled into OUS and State financial statements.
    – Used by DHHS and other Federal agencies, State Board of
      Higher Education, Bonding Services, etc…
• Auditors –
    – Test for accuracy, consistency & reliability of systems,
      including our policies & procedures. Help us establish best
      practices.
    – Includes: DHHS, Naval Research, NCAA, Clifton Larson
      Allen(financial statement & A-133), Secretary of State, etc…

• OUS Financial Statements:
http://www.ous.edu/dept/cont-div/accounting-reporting/annualfinreport
          Overview of Closing
- When?
        Activity that takes place between:

        July 1, 2011 and June 30, 2012
• Including accruals thru July 23, 2012.
• Transactions must be recorded in the fiscal year that a
  majority of the event takes place, not when it is
  processed.
• This applies to all funds in FIS regardless of the
  funding source.
             Overview of Closing
    - What?

• Close fiscal period 12.
     – Our goal is to have all June transactions recorded in FP-12.
•   Open accrual period (fiscal period 14).
•   Departments have one week for adjustments.
•   BAO/BRP/SPS have one week for adjustments.
•   Close fiscal period 14 (FY-12).
•   OUS extracts our data & populates the HFM System.
•   UO reports any FY-12 transactions to OUS through
    the date financial statements are released.
           FY-13 Balances
• FY-13 balances will only include FY-13
  transactions until fiscal period 14 is
  opened.
• When fiscal period 14 is opened, beginning
  balances in FY-13 (FP-00) are populated
  with FY-12 FP-12 ending balances.
• Each entry posted to FY-12 during FP-14
  has a mirror entry in FY-13 (FP-00).
  Balance Sheet Account Codes
A = Assets
B = Liabilities
C = Income Statement Totals
D = Fund Balance
E = Fund Additions
F = Fund Deletions

 Income/Expense Accounts are rolled up to Fund
          Balance at Fiscal Year-End.
   Balance Sheet/Income Stmt.
FGITBAL         FWIBUDG
Balance Sheet   Income Stmt
C0010           0XXXX         Revenue
C2010           1XXXX         Labor
C1010           2XXXX-        General
                8XXXX         Expense
C5010           9XXXX         Transfers
          Subsidiary Ledgers
• The FIS general ledger is the official source of
  financial information for the UO.
• Provide a greater amount of detailed information.
• FIS Examples – Operating ledger, Student A/R,
  Grants, Fixed Assets, Accounts Payable, etc…
• Departmental shadow systems can be used as a
  subsidiary ledger. They can be useful in
  providing information for accounting and
  reporting to departmental staff. These subsidiary
  ledgers must be reconciled to Banner FIS.
          Dates to Remember:
• June 7  June Regular Payroll Deadline
• June 22 Contact BAO for help accruing department
            non-student accounts receivable
• June 29 Last day to submit Student Receivables
• June 29 Last day to Deposit Cash by 3:00 p.m.
• June 30 Item(s) must be received by this
            day to pay with 11-12 funds
• July 3   Last day to Submit Payroll Form (PAA)
            for 11-12.
              Dates to Remember:
• July 6     Last day to submit Service Department
               Upload JVs, “Z” documents through
               AppWorx, for Period 12
• July 6     Last day to direct input Inter-Institutional JVs
                (Charts B-K) for Period 12
•    July 9  Last day to submit Budget changes for Period 12
•    July 9  Last day to input an invoice for Fiscal Period 12
•    July 9  Last day to input JVs for Period 12
•    July 9 Period 12 Close

    ***(Above items must have a June transaction date)
           Dates to Remember:
• July 10 Availability of Fiscal Period 12 Reports
• July 10 Last day to direct input Inter-Institutional
             JVs (Charts B-K) for Period 14
• July 16 Last day to input JVs for Period 14
• July 16 Last day to input Budget Changes for
             Period 14
• July 16 Last day to pay an invoice for 11-12
             Period 14
          Dates to Remember:
• July 20 Last day to Submit IIJVs to BAO for
             Period 14
• July 20 Detail and aging reports due for all
             non-SIS accounts receivable
• July 23 Last day to Submit AP Reports
• July 23 Period 14 Close (FY12)
• July 24 Availability of Fiscal Period 14
             Reports
                 Year End Accruals
Prepaid Expense - A5901
Expenditures must be charged to the fiscal year in which goods are received
or the majority of the services are performed.

Example JV’s as follows:
To record expenditure as a prepaid expense in FY12:
Debit    Department Fund           A5901 - Prepaid Expense
Credit Department Index            Expense Account Code - ex.
                                   24505 Performance Fees
To record the reversal in FY13:
Debit    Department Index           Expense Account Code - ex. 24505
                                    Performance Fees
Credit Department Fund             A5901 - Prepaid Expense
                    Year End Accruals
Prepaid Revenue - B5901
Revenue must be credited to the fiscal year that the goods or majority of the services
are provided.

Example JV’s as follows:
To record revenue as a prepaid revenue in FY12:
Debit     Department Index         Revenue Account Code - ex. 01102 Nonresident
                                   Undergrad Tuition
Credit    Department Fund          B5901 - Accrued Undistr Income

Prepaid Revenue
To record the reversal in FY13:
Debit    Department Fund           B5901 - Accrued Undistr Income
Credit   Department Index          Revenue Account Code - ex. 01102 Nonresident
                                   Undergrad Tuition
    Non-SIS Accounts Receivable

• Each department must submit a detail and aging
  report of their non-SIS accounts.
• These reports must be reconciled to banner as of
  period 14 (use FGITBAL).
• Includes service departments, auxiliaries, and
  designated operations accounts receivables from
  entities that are external to OUS institutions.
• All internal transactions need to be posted before
  the close of FP-14.
      Dating FIS Documents
• Documents entered      This includes:
  between July 1 and     • Budget Changes
   July 16 for fiscal    • Invoices
   year - 12, you will
  need to change the     • JVs
  transaction date to    • Travel
     June 30, 2012.        Reimbursements
             Encumbrances
• All open encumbrances (except zero
  balance items) will be rolled into fiscal
  year 13 Banner FIS operating ledger.
• Liquidate any encumbrances that you do
  not want to roll into fiscal year 13 before
  the close of fiscal period 12 (July 9th).
Expenditure Cut-Off Guidelines
• Expenditures must be charged to the fiscal year
  in which goods are received or services are
  performed.
• For goods and services received by June 30 for
  which vendor invoices have not been received as
  of July 23, fill out an A/P Report and forward it
  to BAO Financial Services.
• http://ba.uoregon.edu/sites/ba/files/forms/yearend
  ap.pdf
             Service Centers
• Service Center Compliance
• 5 yr. Plan (CAMP).

• See BAO Website for Detailed Instructions.

       http://ba.uoregon.edu/staff/service-centers
 Reporting Property Not Owned
           by the UO
• Leased Asset Schedule for Year-End
  Reporting.
• Leased Property (LE/LP).
• Loaned Property (LN).
• Adequate Insurance Coverage.
• FWIFLST – Banner Form to Check for
  Completeness of Inventory Records.
             Real Property
• Capitalization of construction in progress
  (CIP) expenses.
• Conversion of completed projects into the
  Banner FIS real property records.
• Componentization of specified buildings
  used for research.
                        BAO Help
• Accounting and Financial Management Contacts
  http://ba.uoregon.edu/staff/actg-and-finl-mgmt-contacts

• Accounts Payable (6-3143)
  http://ba.uoregon.edu/staff/ap-invoice-payment

• Travel (6-3158)
  http://ba.uoregon.edu/staff/travel
  Year End COB Deadlines 2011-2012

• http://ba.uoregon.edu/staff/year-end-deadlines-12




Other Links
• http://ba.uoregon.edu/staff/year-end-close

• http://ba.uoregon.edu/staff/year-end-departmental-instructions-12
Closing Remarks

				
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posted:9/28/2012
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