Welcome Accounts Payable FY2010 Year-End Closing Workshop Presented by: Sandra King, Accounts Payable Manager Office of Business Services Importance of Year-end Closing The College meets its obligations: Legal Financial Budgetary BY Robert M. Preston, M.B.A., M.S. Director of Financial Reporting and Operations GOAL To close the accounting books on time To close the accounting books accurately Ensure all vendors, employees and students payments are recorded in the proper year Topics of Discussion Fiscal year-end processes Your role in the closing Key due dates and submitting documents related to: Vendor Invoices and Travel Related Payments Petty Cash & Employee Reimbursements Invoices Corrections Accruals Carry Forward Purchase Orders Check Deposits Your Role in the Closing Ensure all deadlines are met You have followed the year-end close processes. Ask questions if you need help! How are we going to achieve our goal? staying current ensure all payment requests for FY 10 has been forwarded to Accounts Payable Meeting the deadlines (making sure invoices are in the hands of Accounts Payable and not inter office mail by the due dates) Asking for clarification and help Ensuring you have received invoices from vendors for all Goods & Services completed and received by June 30, 2010. What is the Fiscal Year? Montgomery College’s fiscal year runs from July 1 to June 30th New Fiscal Year for FY11 starts on July 1st 2010 Specific year end deadlines are set in order to close the books and prepare annual financial statements What Determines the fiscal Year? The Date of Receipt of Goods and Services Determines the fiscal year expenditure If received before June 30th - FY10 If received after June 30th - FY11 Travel & Employee Reimbursement All local and long distance travel completed as of 6/30 should be recorded as an expense of FY 2010 All travel reports and employee reimbursements processed before 6/30 will be charged to FY 2010 All travel reports and employee reimbursements submitted after 7/10 will be paid out of the next fiscal year FY11 budget. The department must submit paper work and original receipts to Accounts Payable by June 30, 2010. Blanket Purchase Orders All (B#) Blanket Purchase Orders will be closed as of June 30th. Departments must make sure they have received and approved all invoices for the blanket purchaser orders Example –June payment for a lease What happens? If the final June invoice is not received by June 30th for Blanket Orders or other types of payments, you must contact the vendor immediately to forward an invoice to Accounts Payable If no invoices is received by July 10th, you must submit an accrual listing with complete information and backup to Accounts Payable Accrual What is an accrual? If goods have been received or services performed by June 30, 2010, the invoice amount is accrued to be booked in the correct year (FY10). Accruals – continue At the end of FY10, Accounts Payable has to accrue our obligations. An obligation is any amount that the College owes. The obligation amount is based on: Amount of unpaid invoice. Amount of items received, but not yet paid. Amount reported by college or departments. Accruals - continue Accruals will appear on your June –FY10 ledger If invoices are over the accrued amounts the differences will be charged to the next fiscal year- FY11 Accruals – continue Example of Accrual Submit a PO for a computer costing $3,200 in May -The computer is received in June The invoice is received and processed in July (in new fiscal year) Because the computer was received before year- end, it represents an expense to fiscal year 2010 Fiscal Year _____________ MONTGOMERY COLLEGE ACCOUNTS PAYABLE ACCRUAL REQUEST FORM Date Received- Fund, org, account, Dollar Inv or Order goods/servic program Amount Vendor Name PO# # es Reason For Accrual Example Invoice not received by 1110-225558-6020-0010 $1,500.00 Formost Printing Inc 50944555 A2588891 6/11/09 6/30 ` Accounts Payable Accrual Diagram ACCURALS TRANSACTION PO Received Goods Invoice Accrual TYPE Encumbered and Services Received Required Process FY10 (06/30/10) 07/01- If not paid 07/09 in Banner) Complete On-line Direct Payment NO Actual goods or YES or NO YES Accrual Form Invoice PO Required services rec’d by Submit to AP with 06/30/10. invoice or supporting back-up Actual goods or Complete On-line Purchase Order YES services rec’d by YES YES Accrual Form Expenditure 06/30/10) Submit to AP with invoice Purchase Order YES Actual goods or NO YES Complete On-line Expenditure services rec’d by Invoice Accrual Form 06/30/10 Estimate Submit to AP with PO Accrual copy, supporting back-up The accrual form Use the accrual form to submit your request. The form is located on the Accounts Payable website www.montgomerycollege.edu/departments/obs Required information Please include: Vendor name Amount Account number Account manager approval Purchase order number Supporting Backup Reason for Accrual Supporting Documents Documentation To support your accrual you may include the following: Copy of the PO, Contract for services Packing Lists Order Form/Confirmation Proof of Delivery Receipts Written documentation from vendor on letterhead Carry forward Encumbrances/ Purchase Orders What are carry forward encumbrances/purchase orders? Purchase orders that are established in current fiscal year (FY10), but no payment and receipt of goods or services are completed by June 30, 2010. What should be done to request carry forward purchase order? A listing must be completed using the carry forward request form and forwarded to Accounts Payable by July 10, 2010. Written details supporting the carry forward purchase orders must be provided The Balance of the purchase order can be carried forward to be used in FY11. Important to Know about Carry Forward Purchase Orders Payment will not be made to vendors until August -of the next fiscal year once FY10 budgets are rolled and the year is closed. Invoice Corrections Journal entries-account cleanup CUT off Date is July 10, 2010 for all corrections Invoice journal correction form must be completed and forwarded to Accounts Payable with supporting backup documentation. Prepayments Expenses for the coming fiscal year that require payment prior to July 1st can be submitted to Accounts Payable clearly marked FY 11 Examples: Subscriptions and membership renewals, insurance. Closing Deadlines June 15th Last day for P-card Charges June 30th Last day to submit the following Petty Cash Reimbursement Local Travel under $25 July 10th, all FY10 invoices, travel, employee reimbursements Final Cut off Date All invoices, travel and requests for payment must be received in Accounts Payable no later than July 10, 2010 at 5:00 p.m. Accrual listing and supporting backup must be received July 10, 2010 at 5:00. Carry forward purchase order requests form are due by July 10, 2010. Closing- PO (Encumbrances) Encumbrances balance on Purchase Orders as of June 30, 2010 are carried forward to FY 2011 If the departments is not using open purchase orders in FY11, the PO can be closed. please submit the request to Accounts Payable by June 30th. Deficits/Over Expenditures Units are responsible for monitoring balances in their accounts throughout the year. A deficit is when the cash balance in general ledger is negative. Deficits must be cleared in a timely manner, but no later than June 30th (fiscal year end) Refund checks for deposit Do not hold checks. Please bring all checks sent directly to your department to the Cashier’s window as they are received. Cash Closing – done on June 30th June 30th deposits will be recorded to fiscal 2010 If you deposit money after 6/30 , the funds will appear on your FY11 ledger. Where do you go for help? Visit Accounts Payable Website: www.montgomerycollege.edu/departments/obs Contact Accounts Payable at X75338 Email Accounts Payable AccountsPayable@montgomerycollege.edu Questions?