PYG CLEANUP by 387BA9V

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									Date:           October 10, 2002

To:             Account Managers

From:           Lorretta A. Leavitt, University Controller

SUBJECT:        PRIOR YEAR FUNDS

As many of you are aware, the budget language was changed over two years ago to shorten the length of time
General Funds are available to the campus. In addition to the change in State regulations, the California State
University has given us an even shorter timeline, to enable the system to analyze the position of each campus
and reduce loss of funding risks.

What This Means to You: You must submit all transactions, both expenditures and receipts by November 29,
2002 to allow sufficient time for submitting and processing the appropriate claim or remittance by the State
Controller’s Office by December 31, 2002.

Any orders still open will be disencumbered December 2, 2002; unpaid invoices will be processed against current
year funds; and receipts for reimbursements will be credited to current year as of November 29. Disencumbered
funds are NOT available to be re-encumbered in either prior or current year.

Please do not hesitate to contact staff members in Accounting Services, Accounts Payable and
Procurement if you need further assistance.


REIMBURSEMENTS: If you have amounts due to your reimbursed account (Fund 1401), you should work with
Cindy Ormsby (ormsby@mail.sdsu.edu) in Accounting Services to ensure that an invoice has been issued. If the
invoice is issued but unpaid, you may wish to contact the customer and assist them in issuing payment to SDSU
by November 29, 2002. This will ensure that the funds are credited appropriately against the year of expenditure.

EXPENDITURES: Please review very carefully your September expenditure reports, paying particular attention to
open encumbrance amounts against Fund 1001.

You may notice some peculiar encumbrance activity on multi-year orders, and on orders where some changes to
distributions were processed, leaving credit encumbrance amounts showing in the General Ledger. If you find
this type of error, please submit your request for correction to Dana McCoy (dmccoy@mail.sdsu.edu).

The objective is to 1) categorize all outstanding encumbrances for Fund 1001, then 2) take the prescribed action
to clear those encumbrances by the deadline. Use the following chart as a guide:

                 CATEGORY                                                    ACTION
  The encumbrance is valid. Payment must          Contact the vendor and request that they invoice SDSU.
  be made to the vendor.                          When you submit the final invoice for payment, clearly
                                                  indicate on the face of the invoice ‘FINAL PAYMENT –
                                                  PLEASE CLOSE PO”. If the PO has multiple lines, be
                                                  sure to indicate the line number for Fund 1001. The
                                                  vendor’s invoice must be submitted to Accounts Payable
                                                  by November 29, 2002.
  All goods or services for this order have       The encumbrance is not valid and must be reversed. Use
  been processed.                                 the Oracle Final Close Request Form (at
  You have received all the goods and             http://bfa.sdsu.edu/ap/finalclose.html) to request that the
  services you expect to receive on this order,   order be finally closed. The process of “Finally Closing”
  and those invoices have been processed.         an order disencumbers any remaining funds.
  The order has been canceled.                    For questions or clarifications, contact Terry Williams
                                                  (twilliam@mail.sdsu.edu) at 594-4059.




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To help you identify your outstanding encumbrances for Fund 1001, we have extracted the information for you.
The Excel file is too large to send via e-mail. You may download it from the LEAP Web site at
http://bfa.sdsu.edu/leap. Choose the "Fund 1001 Encumbrances" link from the navigation frame on the left. The
encumbrance data is current as of November 4, 2002.

The Encumbrance Detail tab includes every encumbrance transaction for Fund 1001:
    a) requisition encumbrances (commitments),
    b) purchase order encumbrances (obligations),
    c) invoice payments (which relieve encumbrances), and
    d) journal entries created to adjust encumbrances.

The Net Encumbrances tab is a pivot table created from the Encumbrance Detail tab. This means the data is
summarized: in this case, by ORG, ACTIVITY, FUNCTION, NATURAL ACCOUNT, and Req or PO number.

Here's how to use the file:

A. Determine your Outstanding Encumbrances
Start with the Net Encumbrances tab.
      1. Use the pull-down menu in cell B1 - where it says "(All)" - to choose your ORG. If you'll be reviewing
         multiple ORGs, you should view just one at a time.
      2. Cells with a 0.00 amount indicate no outstanding encumbrance. Outstanding encumbrances show as
         positive amounts (black text); negative encumbrances (credits) show as negative amounts (red text with
         parentheses).
      3. Note the PO number (beginning with "4") or Req number (beginning with "3") for each outstanding
         encumbrance.

B. Research your Outstanding Encumbrances
Go to the Encumbrance Detail tab.
     1. Use the filter in the ORG column so that you see the encumbrance transactions for just your ORG.
     2. Use the filter in the Req/PO Number column to select the Req or PO you are researching.
     3. Examine the transactions that appear for that Req or PO. (Remember – invoice payments appear as
        credits.)

In most cases, outstanding requisition encumbrances indicate orders that were never placed, and the
encumbrance should be canceled. However, if you think there are outstanding deliveries or invoices to be
received against a requisition, please contact your buyer in Procurement as soon as possible to discuss the
situation. Outstanding requisition encumbrances are also being reviewed by Accounting Services.

Before taking action on any individual requisition or purchase order, you should look at ALL outstanding
encumbrances, including those with BLANK Req/PO numbers. (In the Detail tab, use the filter for the Req/PO
number to select "Blank" - it's at the bottom of the list.) When a journal is posted by Accounting to adjust an
encumbrance, the Req or PO number is only referenced in the description. After reviewing those transactions
you may find that the encumbrance has already been adjusted -- and you don't need to take any action.

You may need to use Purchase Order Summary in your SDSU Purchasing Inquiry responsibility to research POs
with outstanding encumbrances. Refer to Purchase Order Inquiries if you need a refresher on researching POs.
(Here's a tip: while viewing purchase order data in Oracle, go up to the menu and choose "Special" - you can then
choose to view invoice or receiving information for that PO.)

C. Submit the Request for Correction
If you determine that the encumbrance is invalid and should be cleared, complete and submit the Final Close
Request Form available at http://bfa.sdsu.edu/ap/finalclose.html. If you don't have the PO line number, use the
line Description instead. Complete the entire form and fill out the comments section for clarification.
(Suggestions for improvement are appreciated.)

If a Req or PO has an outstanding credit balance -- indicated by (xx,xxx) in the Excel file -- please submit your
request for correction directly to Dana McCoy (dmccoy@mail.sdsu.edu). You may notice outstanding credits on
multi-year orders and on orders where some changes to distributions were processed.

If you have ANY questions regarding this process, please call or e-mail Debbi Dangelo at 4-3334 or
dangelo@mail.sdsu.edu.

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