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Fiscal-Year End Procedures

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					Departmental Fiscal Year End Procedures FY July 1, 2007 – June 30, 2008
The 2007-2008 Fiscal Year End closing involves a two-part process, as follows:   Close I will be July 9, 2008. The last date for departments to submit information for Close I will be July 3, 2008 at 5 PM. Close II will be July 18, 2008. The last date for departments to submit any remaining adjustments and accruals for Close II will be July 11, 2008 at Noon.

Departmental Information Outline
Heading into the Fiscal Year End, special attention will need to be paid to Procurement cutoffs (see Information Specifics section re: Procurement Cutoff). In Close I, we will enter the largest portion of the transactions. This will include:  Revenues o Deposits o Billings o Revenue Accruals Expenditures o Payments o Purchases/Procurements o Expenditure Accruals Accruals – Other Accounts Receivable adjustments Inventory adjustments General Ledger correction journal entries

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Close II will include any final journal entries for:    Revenue accruals overlooked during Close I Expense accruals overlooked during Close I Allocation corrections

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Information Specifics Procurement Cutoff:
Final dates for processing purchase requisitions for the 2007-2008 fiscal year are outlined in the table below.
Type & Amount Date Bid/Quote for Public Improvement (Construction) =>$100,000 (formal) ................................ 3/17/08 Bid/Quote for Public Improvement (Construction) <$100,000 (intermediate) .......................... 5/15/08 Bid/Quote for other Goods/Services =>$150,000 (formal) ..................................................... 3/17/08 Bid/Quote for Goods/Services between $5,000 and $150,000 .................................................. 6/2/08 Non-Bid Requisitions (less than $5,000) ............................................................................... 6/16/08

Requisitions received after the dates listed will be processed for receipt after June 30, 2008, and will be charged to the 2008-2009 budget. There will be some exceptions to this cutoff, as follows: 1. Materials or services required for program operation in June. For example, programs which operate year-round, such as Facilities Services. 2. Materials or services required for a summer school program.

If requesting an exception to this cutoff, please attach a brief explanation in the internal notes section of the requisition and turn it in to the Director of Business and Facilities Services.

June Close I
1) Revenues:

Deposits - All money received should be deposited, or sent to the Business Services office for deposit, by June 30, 2008, as shown in the following table: What Cash and checks Deposit slips Bank Card slips Date Due in Business Services Noon 6/30/08 5 p.m. 6/30/08 5 p.m. 6/30/08 Party Involved All Departments Arata Creek, TEC, Present Tense Present Tense

If you have received any money for the next FY 2008-2009, clearly identify those funds in your deposit so that they can be recorded appropriately and not included in revenues for FY 2007-2008. DO NOT hold any cash, checks or transmittals in your department.

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Billings – Billing Requests (previously Order to Bill forms) need to be submitted to the Business Services office by June 25, 2008 in order to be processed by June 30, 2008. Revenue Accruals – For FY 2007-2008 revenues that have not been received or billed by June 30, 2008, a journal entry will need to be prepared by July 3, 2008 to accrue the income. (Please see “Accruals” for more information.) 2) Expenditures:

To be valid expenditures for the 07-08 FY, the goods or services being paid for or accrued must be received by June 30, 2008. If goods or services being purchased and/or paid for are not going to be received by that date, the expenditure must be charged to the 08-09 fiscal year. Payments – All invoices or payment requests that are to be paid by June 30, 2008 will need to be submitted to the Business Services office by June 25, 2008 at Noon. All documents must have been coded with the appropriate Account Key/Object Code and have an authorizing signature by that date. Purchases/Procurements – Goods or services ordered via eSchoolMall* or P-Card** purchase (see the Guidelines below) for the 2007-2008 FY, must be in our possession or services completed by June 30, 2008. If ordered items are not received, the expenditure will be charged to the 08-09 fiscal year. * For eSchoolMall purchases that have been physically received, all departments/programs must receive their goods or services online by June 30, 2008. Please contact Don Hicks in the Procurement office if you have any questions about how this is done. If these purchases have not been received online, a journal entry will need to be prepared to accrue the expenditure in FY 2007-2008. (Please see “Accruals” for more information.) eSchoolMall Purchase Guidelines Goods or Services Physically Received by June 30, 2008 Yes Yes No Received Online in eSchoolMall by June 30, 2008 Yes No N/A Invoice Received by June 30, 2008 No No N/A Action Business Office prepares accrual JE Department or Program prepares accrual JE Expenditure recorded in next FY

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**P-Card purchases of goods or services that are received by June 30, 2008 and that are billed after the May 27, 2008 bank statement will need to be accrued by journal entry. Attach a copy of the WORKS report or purchase receipts to be included in FY 2007-2008. (Please see “Accruals” for more information.) P-Card Purchase Guidelines Goods or Services Physically Received by June 30, 2008 Yes Yes Yes No Billed on May 27, 2008 Statement Yes No No Yes/No Exp Shown on WORKS Report May 28 - June 30, 2008 N/A Yes No Yes/No Have Purchase Receipt N/A N/A Yes Yes/No

Action

Expenditure recorded with payment in June Department or Program prepares accrual JE Department or Program prepares accrual JE Expenditure recorded in next FY

Expenditure Accruals – Goods and services for FY 2007-2008 that have been received by June 30, 2008 but not paid will need to be accrued via journal entry. (Please see “Accruals” for more information.) 3) Accruals:

Under guidelines accepted by the Financial Accounting Standards Board (FASB), revenues should be reported when earned and expenditures reported when materials or services are received on or before 6/30/08. Examples of items to be accrued are:     Invoices not previously recorded for goods delivered or services rendered during the 07-08 fiscal year. Purchases requisitioned through eSchoolMall or made with a P-Card for goods received or services rendered by 6/30/2008, for which an invoice has not been received and/or processed. (See Expenditures) Temporary employee’s payroll accrual for work performed from 6/1 – 6/30 which will be paid on July 15. Vacation balance as of 6/30/08.

To accrue any outstanding financial activity for fiscal year 07-08, a journal entry will need to be submitted during the first June closing and reversed in July. Label these journal entries “Accruals” and include a brief description.
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Type Record expenditures Record revenues

Accrual Journal Entry Guidelines Amount Debit Account Credit Account Expenditure $ XX,XXX.xx Function, Cost Leave blank Center and Object Revenue Function, Cost Center and $ XX,XXX.xx Leave blank Object (Object may be left blank if unknown)

4)

Accounts Receivable:

Review past due accounts shown on the May 2008 Aging Report and notify the Business Services office before June 25, 2008 if any need to be written off or adjusted. 5) Inventory:

Take a physical inventory of supplies on hand and submit the information to Business Services by July 1, 2007. What Physical Inventory on 6/30 Physical Inventory on 6/30 Physical Inventory on 6/30 6) Date Due in B.O. 7/1 7/1 7/1 Party Involved Warehouse Printing and Graphics Mail Center

General Ledger Corrections:

Review your department/program financial data and submit correcting journal entries to the Business Services office by July 3, 2008.

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June Close II
After Close I, departments should review the following for their programs:   Expenditures Revenues

Journal entries to adjust previous allocations or accruals that departments would like to have recorded in FY 07-08 should be received by the Business Office no later than July 11, 2008. Please note: Expenditure allocation adjustments or additional accruals may result in a recalculation of indirect costs, which may, in turn, cause the need to adjustment revenue billings and accruals. * * * * * If you need information or assistance regarding the FYE closing process, please contact Cynthia Le at x1522 or accounting@mesd.k12.or.us.

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