The University of Montana

1. The University of Montana FYE 2014 Briefing May 22, 2014 Business Services

2. Agenda Introductions Office for Planning, Budgeting & Analysis (OPBA) Payroll processing Schedule/Highlights Payroll Redistribution Dates Campus Cutoff Schedule Feed File Schedule Procedure Highlights Break JV Reminders Tips & Tools for Monitoring Balances

3. Business Services Contact List Accounting Services Dan Jenko, Assistant Director Ext 5530 Tara Scott, Financial Manager Ext 5802 Melissa Reimann, Accountant/Capital Assets Ext 6628 Luanne Felstet, Accountant Ext 2499 Barb Bybee, Accountant Ext 6261 Geoffrey Lake, Campus Operations Coordinator Ext 6006 Accounting Services Fax # Ext 4929 Accounts Payable/Procurement Kay Lamphiear, A/P Manager Ext 4935 Ian Robbins, Director of Procurement Ext 2204 Systems Scott Klanecky, Finance Systems Manager Ext 5558 Frank Grady, Banner Finance Production Manager Ext 2940 Treasury Services Betty Davis Ext 4320 Management John McCormick, Interim Director Ext 2532

4. OPBA Contact List • Dawn Ressel, Associate VP for University Planning, Budgeting and Analysis dawn.ressel@umontana.edu Ext. 5661 • Ed Wingard, Budget Director ed.wingard@umontana.edu Ext. 4775 • Debbie Morlock, Budget Analyst debbie.morlock@umontana.edu Ext. 4791 • Pope Ashworth, Research & Budget Analyst pope.ashworth@umontana.edu Ext. 5661 • Kim Rudolph, Budget Analyst kim.rudolph@umontana.edu Ext. 5647

5. General Funds • Negative available balances • Negative personnel services balances • Correct negative balances by submitting a budget change or moving expenses out to another Index Code or Fund (if appropriate) • Ensure Appropriate Account Codes are Used for all Expenditures *(Remember to consider benefits when correcting negative personnel balances.) Reports to use to monitor results: • UMDW Operating Statements #1 or #2 • UMDW Payroll Reports #6 or #7

6. EXAMPLE

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9. Designated/Auxiliary • Negative fund balances • Consider impact of year end results on FY15 plans and budgets – submit a plan amendment if necessary • Expense should not significantly exceed the FY14 fiscal year budget • Submit budget changes as needed Report to use to monitor results: • UMDW Operating Statement #7 (shows current fund balance)

10. General Funds/Designated/Auxiliary • 6/13/14 (Friday) – Last day to submit routine/temporary budget changes *Remember RBC’s need to be signed by your Vice President

11. Fiscal Year End - Payroll For questions please contact: Shelley Hiniker: 243-6634 Shelley.Hiniker@umontana.edu Andrea Scheuering: 243-5199 Andrea.Scheuering@umontana.edu *For Redistributions please contact your Fund or Grant Accountant.

12. BW & MO Payroll BW 14 online entry GTO is open June 20th. to June 24th. Do not send RPT’s with the Monthly rosters Submit RPT’s by June 13th if you would like them to display on the BW 14 GTO BW 14 will post July 2nd. BW 13, BW 14 & MO 7 Health Insurance will be FY2015 expense - $887.00/month BW 15 will expense in total at the department level for FY15 MO 7 will post July 1st. New Rate Changes for FY2015. Unemployment .45% (subject to change) PERS 8.27% TRS 10.95 TIAA-CREF 10.676

13. SP Payroll SP 13 will open June 19th and will close at 5:00 p.m. on June 23rd. SP 14 will open July 2nd and will close at 5:00 p.m. on July 7th. SP 14 – pay cycle from June 19 – July 1 will pay on July 15th – this will be an FY15 department level expense

14. Payroll - Miscellaneous Redistribution Schedule – May transactions – June 10th. June transactions – July 8th. Redistributions into State/General fund indexes from other funding sources (such as designated, auxiliary etc.) will be reviewed by the Office of Planning, Budget and Analysis. Sufficient budget authority, for both wages and benefits, must be in place for these to occur. Manual Checks – due to the Fiscal Year End Cash Closing process – there will be no manual checks processed from June 23rd. to July 1.

15. Payroll Processing

16. FYE Payroll Redistributions Procedures & form Payroll Redistributions are for corrections to the funding sources. These cannot be processed using a journal voucher. Deadlines 90 Day Rule – If you are processing a redistribution that has a history date of greater than 90 days you must include an exception memo which will be approved by the Director of Business Services or his assignee. Grants and Contracts must adhere to ORSP policy and procedures. BW14 Timing Issues Review your GTO reports carefully upon completion. If there is an error – contact your HRA immediately before it completes. For FY14 this would be 2:00 pm 6/24/14.

17. Payroll Redistribution Formhttp://www.umt.edu/bussrvcs/Employees/Forms.aspx

18. Payroll Redistribution Deadlines Deadlines to have requests to Business Services… 6/10/14 – May (due by 3:00 PM) 7/8/14 – June (due by 12:00 PM) Payroll Redistributions for BW14 will not be allowed Reminder: all requests for redistribution need to be processed through your Fund Accountant or your Grant Accountant, not through the Payroll Office

19. FYE 14 Websitehttp://www.umt.edu/bussrvcs/Employees/Procedures/Accounting/Fiscal%20Year%20End.aspx

20. Campus Cutoff Schedulehttp://www.umt.edu/bussrvcs/Employees/Procedures/Accounting/Fiscal%20Year%20End.aspx

21. Feed File Schedule Due by July 10th at 3:00 PM Facilities Services (work orders and postage) Network port charges Fixed phone charges Long distance charges UC Admin charges Dining Services invoices

22. Accounts Payable Critical Dates • June 13 Procard purchases for FY14 should be completed to ensure FY14 posting. • June13 Warrant Cancellations to AP. • June 24 5:00 Normal Check Run – checks to be issued and mailed June 25. • June 27 5:00Procard Redistribution for June • (Cycle 12 - thru 6/21).

23. A/P Critical Dates(CONT.) July 1All travel, entertainment, check requests, all “Paper Requests” need to be sent to A/P for FY14 processing. Costco Receipts to A/P for FY14 Processing. July 2 5:00 A/P check run. Checks to be issued and mailed July 3. July 7 5:00 Second Procard Redistribution for June (Cycle 13 – 6/22 thru 6/30) (Use feed date of 6/29) July 95:00 Final AP check run for FY14. Checks to be issued and mailed July 10.

24. A/P Critical Dates(CONT.) • July 1012:00Direct pay processing for FY14 ENDS. Invoices must be completed and approved prior to 12:00. Items received by 6/30/14 must be entered and completed with a June 30 transaction date. • July 11 No Department / Affiliate Banner or GrizMart processing. • July 14FY15 Opens – Reminder: NO FY15 invoices can be processed until now unless processed as Prepay Invoice. • Reminder: July 1-10 use transaction date of 6/30/14 in both GrizMart and Banner for FY14 processing.

25. Other Critical Dates • 7/11 FY14 Period 12 closes at 5:00 PM • 7/12 “GL and Encumbrance Roll” to FY15 • 7/14 Period 12 Reports available thru • UMDW

26. FY14 • July 14 • Invoice Processing Resumes • Journal Voucher Entry • Reverse Entries • Automated, prior to July Month End closing • Pre-Pay and Deferred Revenue, prior to July Month End closing

27. Accounting Procedure Updates • Prepaid Expenses • Miscellaneous Accounts Receivable • Deferred Revenue • Accrued Expenses

28. Prepaid Expenses Definitions: Prepaid expenses are items over $500.00 that are paid during the current fiscal year, but are an actual cost for the next fiscal year. All items or services must be received or provided after June 30, 2014 to be considered a prepaid expense. These expenses are recognized as an asset (prepaid) in the current fiscal year and as an expense in the next fiscal year. This process is not applicable to Grants.

29. Prepaid Expenses Examples of Prepaid Expenses: Prepaid service contracts or software licenses (under $100,000) for next fiscal year (these can be split between 2 years) Subscriptions or membership fees for next fiscal year (these can be split between 2 years) Expenditure transactions which are matched to deferred revenue (ie: summer session revenue)

30. Prepaid Checklist

31. Prepaid Expenses(Continued) Updates/Reminders: *REMEMBER* - use the activity code PREPAY in GrizMart for non-PO payments or requisitions or meal per diems entered through GrizMart *REMEMBER* - you can code ProCard charges directly to Prepaid account 1905 Make sure to get supporting documentation to Barb Bybee (ext 6261) before noon on Friday, 7/11/14 Review procedure: Prepaid Procedures http://www.umt.edu/bussrvcs/Employees/Procedures/Accounting/Fiscal%20Year%20End.aspx http://www.umt.edu/grizmart/GrizMart%20FAQs.php#FAQ31

32. Miscellaneous Receivables The University does not record all accounts receivable in its centralized accounts receivable system, this information must be provided to Business Services. It is the department’s responsibility to report the correct receivables and maintain and forward to Business Services the backup support for the receivables reported. This applies to receivables that are not recorded in Banner and are owed by off-campus entities.

33. Miscellaneous Receivables(Continued) Updates/Reminders: No procedure changes from last year Individual receivables greater than or equal to $25,000 require dean or director approval Make sure to get supporting documentation in to Geoff Lake by noon Monday, 7/7/14 Review procedure: Miscellaneous Accounts Receivable http://www.umt.edu/bussrvcs/Employees/Procedures/Accounting/Fiscal%20Year%20End.aspx

34. Deferred Revenue DEFINITION: Deferred revenue is revenue collected in the current fiscal year for services provided in the next fiscal year. This revenue is reported as a liability on the current year’s balance sheet and as revenue in the next fiscal year. Departments that record deferred revenue include, but are not limited to: Continuing Education Bio Station Dining Services Athletics Campus Recreation Residence Life *Note: Summer session tuition and fees collected prior to July 1st are also recorded as deferred revenue per Montana University System policy.

35. Deferred Revenue(continued) Procedures: Banner Online Departmental Deposit Form Preparation For ease of processing deposits, please use a separate deposit card for deferred revenue transactions Deferred revenue must be recorded with an activity code. Find the current activity code list on the link below. Please contact your Fund Accountant if a new activity code needs to be established. The activity code is the revenue account code with the ‘5’ replaced by an ‘R’ (ie; 50404 – Campus Recreation Trip Fee income activity code would be R0404) Balance Sheet account number is 2505 – Deferred Revenue

36. Deferred Revenue(Continued) Updates/Reminders: No procedure changes from last year Deadline is same for cash receipt cards (6/27/14) Be sure to send backup to Luanne Felstet (ext 2499) and contact her with any questions Review procedure and forms: Deferred Revenue http://www.umt.edu/bussrvcs/Employees/Procedures/Accounting/Fiscal%20Year%20End.aspx

37. Expenditure Accruals Expenditures must be recognized in the accounting year incurred, which creates the necessity for recording expenditure accruals for valid obligations incurred but unpaid as of the end of the fiscal year. Departments must submit requests for expenditure accruals to Business Services on or before the date posted on the Fiscal Year End Critical Cutoff The following information along with the backup documentation must be provided to Business Services: Identify type of accrual – ‘A’ accrual or ‘B’ accrual Explanation and supporting documentation Identify vendor (if vendor is another state agency, special accrual accounting is required) Department contact person and phone number

38. Expenditure Accruals(Continued) • “A” Accruals • These are for State Funds Only • For Valid open orders of goods/services received After June 30th • “B” Accruals • These are for All Funds including State Funds • Valid open orders on goods/services received on or Before June 30th, but have not yet been paid. Note:Accruals over $25,000 must include backup documentation and will need approval by the Director of Business Services.

39. Expenditure Accruals(Continued) Updates/Reminders: Only items $500.00 or more will be accrued Remember * An accrual may be necessary for Procard purchases made during the last days of June (after 6/21/14) if the vendor does not process them in a timely manner Make sure to get supporting documentation in to Tara Scott (ext 5802) before 4pm on Thursday, 7/10/14 Review online accrual procedures http://www.umt.edu/bussrvcs/Employees/Procedures/Accounting/Fiscal%20Year%20End.aspx

40. Decision Trees Prepaid Expenses • Am I paying for goods or services prior to 6/30/2014 that are >$500 and relate to next year? ie. Paying for maintenance agreement in June for FY15. Is this a non-PO payment or requisition Am I using my ProCard? or meal per diem through GrizMart? If yes—when initiating the purchase in If yes – use account code 1905 and GrizMart use expense code and provide back-up to Barb Bybee in activity code PREPAY. Business Services.

41. Decision Trees(Continued) Miscellaneous Accounts Receivable • Have I provided goods or services prior to 6/30/2014, but have not received payment by 6/30/2014 and have not recorded the receivable in Banner? • If all of above conditions are met—complete the form on the Business Services website for Miscellaneous Receivables. Send the completed form to Geoff Lake. With the form, send an invoice or statement as supporting documentation. For amounts > $25,000 have your Dean or Director sign the form.

42. Decision Trees(continued) Deferred Revenue • Have I collected funds for activities that will occur on or after July 1, 2014? • If yes—when completing the deposit card, use account code 2505 with the activity codes established for deferred revenue. The activity codes are listed on the Business Services web-site.

43. Decision Trees(Continued) A-Accruals • Will I receive goods or services AFTER 6/30/2014, that will be paid after 6/30/2014, from a State fund and are > $500? • If yes—notify Tara Scott in accounting by sending either a Purchase Order copy or a signed contract that has been initiated by 6/30/2014.

44. Decision Trees(Continued) B-Accruals • Have I received goods or services BEFORE 6/30/2014 that will be paid after 6/30/2014 and invoice is > $500? • If yes—Notify Tara Scott in accounting by sending either an invoice, packing slip or a signed contract.

45. 10 MIN BREAK

46. UM FOUNDATION Fiscal Year End Procedures for UM Foundation • Payments to UM • Withdrawal Requests to Foundation Offices by Tuesday, June 24th for last ACH payment on Thursday, June 26th • NO advances to index codes - transfer has to be for actual expenses incurred • Exception will be made for reimbursements for June payroll expense. Expense will be an advance and will need to be cleared with June Banner report as soon as June payroll is processed • All other fiscal year 2014 expenses • Withdrawal requests to Foundation Offices by July 18th • Clear outstanding advances by June 27 • Any outstanding advance over the fiscal year-end needs an explanation as to why it’s still outstanding • Exception for June payroll reimbursements. Expense will be cleared in fiscal year 2014 with June Banner report • Questions • Contact Jamie Stanton at 4788

47. Helpful Tips • Enter JVs that post within your department (JD1 & JD2) • This will help with faster processing • Please reference the Banner document number in your JV document text • Please monitor all deadlines and notify Business Services right away if unable to meet a deadline • Please monitor your accounts and get your requests in to the Foundation for Gift accounts by June 24th • Contact the appropriate service area with questions (Accounts Payable, Procurement, Accounting, Systems) • Dates on JV’s are critical; Please specify which FY you would like to post. • Please print name and phone extension on JV’s you send over to Business Services.

48. Tools for Monitoring FYE Activity Banner Finance JGIBDST – Org Budget Status FGITBSR – Trial Balance Summary UMDW Operating Statement Trial Balance Payroll UMDW Contact: Business Services Systems Bob Hlynosky Ext 2494

49. Banner JGIBDST Enter Index, Fund or Orgn and FY on Banner form JGIBDST EXAMPLE Banner nets total revenues less total expenses

50. Banner Drill-Downs & User ID Searches EXAMPLE To see the transactions for a specific account in JGIBDST, select options and Transaction Detail (JGITRND)