Year End Close FY2012

1. Year End Close FY2012 OREGON STATE UNVERSITY Presented by Business Affairs Financial Accounting & Analysis [FA&A] Team Mark Fryman Treasure Hunt Charlotte Rooks Kim Jenkins

2. The Big Picture Financial Statements and Deadlines for Year End Close • State of Oregon • Oregon University System – OUS • Oregon State University • Foundations [fundraising efforts]

3. The Big Picture (cont.) Revenues and expenditures must be accounted for in the correct fiscal year to ensure the accuracy of financial statements University system is under a “modified accrual basis of accounting” • Cash basis throughout the year • Accrue and make adjustments at year-end Accrue revenues and expenses connected with external entities only

4. Year End Accruals Receivables • An asset on the balance sheet • Revenue earned but not received by the close of the fiscal year • Records income in the current year Deadlines • SIS A/R - 6/22 @ 5pm to BAFF • SIS A/R - 6/28 @ 5pm for direct entry by units • Non-SIS A/R - 7/9 @ 10am by JV • Non-SIS A/R - 7/20 @ 5pm for Reconciliations

5. Year End Accruals Undistributed (unearned) Income • A liability on the balance sheet • Cash received in advance for goods or services not provided by June 29 (Review 2012 deposits) • Removes income from the current year • Do not accrue for grants or contracts • Deadline 7/19 @ 12pm for JV, 5pm for Final approval

6. Year End Accruals Accounts Payable • A liability on the balance sheet • Expenses incurred for goods or services received, but not paid for in FY12 • Accrue only if >$500 • Record expense in the correct fiscal year

7. Year End Accruals Accounts Payable, (cont.) • Follow instructions for the Year-end A/P Accrual spreadsheet carefully • Do not change column widths or formatting • Submit electronic Excel file to BAFF.Accounting@oregonstate.edu no later than July 18 @ 5pm • Caution: do not process invoices with June date and include on Accrual Spreadsheet!-This would result in double counting

8. Year End Accruals Prepaid expense • An asset on the balance sheet • Cash payments made in advance for goods or services not received by June 30 - includes FY13 Travel • Only record those >$500 • Removes expense from current fiscal year • Deadline to submit reconciliation spreadsheets: 7/20 @ 5pm

9. Accrual JV hints Quick way to find the Fund of an Index • Go to FGIBDST in Banner • Type index in index field to show FOAPAL elements • Index is a shortcut and is not a FOAPAL element JV Text and Description • Should say “FY12 Accrual”, then “FY13 Reverse Accrual” • Add the same text to the description on all JV lines All accruals must be reversed with a July FY13 transaction date • Tip: Do both accrual and reversal JV at the same time. • Use the Reverse Function in FGAJVCD

10. Accrual Reversals Departments are responsible for reversing: • Receivables (Non-SIS) • Undistributed (unearned) income • Prepaid expenses Business Affairs is responsible for reversing: • Accounts Payable • OSU Foundation Receivable • Grants and Contracts accruals

11. Accrual Reversals (cont.) Reversal JV’s must have the following: • July date • Rule code 3JV1 • Reverse the exact entries, only change debit and credit. Do not add new entries. • In Document Reference field, place the original accrual JV number • Start text with “FY13 Reverse Accrual of…”

12. Accrual Reversals (cont.) • To use the reverse function in FGAJVCD: Step-by-Step directions are posted on our YEC website.

13. Fund Balances Determining the Fund Balance • Fund Balance = Assets – Liabilities • Axxxx accounts – Bxxxx accounts • Cash • + Receivables • + Prepaid Expenses • - Accounts Payable • - Unearned Income • = Fund Balance

14. Fund Balances (cont.) Fund balances shown in FGITBAL or FGITBSR on account D0010-Fund Balance do not change during the fiscal year. To find the current fund balance, use one of the following: • Hand calculate (Fund Balance = Assets – Liabilities) • Banner screen FGITBSR • Fund balance report in Data Warehouse under General Ledger, Admin Reports • (do not use “balance sheet” report in DW for this purpose)

15. Fund Balances (cont.) Self-support operations must have positive FUNDbalances. These include: • Designated Operations (05xxxx funds) • Service Center (09xxxx funds) • Auxiliary (1xxxxx funds)

16. Reconcile Designated Operation Funds • Make sure all accruals are recorded for the fund with transaction date of June 30th • See FIS 1403-03 • If fund balance is negative, funding is needed from another source and a JV must be processed: Debit Departmental index- account code 24901 Credit Designated Operating index- account code 09398

17. Reconcile Service Center Funds • Make sure all accruals are recorded for the fund with transaction date of June 30th • Ensure the working capital balance meets criteria in FIS 1403-04. • Working capital = current assets minus current liabilities. It does not include fixed assets or depreciation. • Process JV to eliminate negative balance Debit Departmental index - account code 24902 Credit Service Center index - account code 09398

18. Reconcile Auxiliary Funds • If fund balance is negative – funding is necessary • See FIS 1403-05 • When an auxiliary has more than one fund, all 1xxxxx funds for that unit are rolled together for this determination • Only source of funding for negative fund balance is a loan from another Auxiliary Fund

19. Reconcile Gift Funds Gift Funds (Mxxxxx, and some FAxxxx) • Gifts should not be spent before cash is received • Monitor cash balances through year-end close using FGITBSR • JV’s processed in July with June transaction dates affect FY12 cash balances • Invoices processed in July with June transaction dates do not affect FY12 cash balances • Cash [Account code A0901] must be positive when FY12 is closed

20. Reconcile Gift Funds (cont.) • If gift fund has a negative cash balance at year end - • Move non-payrollexpenses via JV to an appropriate funding source by July 16th to bring the fund into a positive balance. • After July 16th, expenses will be moved by OPAA to the departmental general fund index to bring cash to zero. • These JV’s can not be reversed in a subsequent year.

21. Reconcile OSU Foundation Funds OSU Foundation reimbursement funds – FSxxxx, FExxxx, 438xxx, & Gift Plant funds • Requests for reimbursement from OSUF need to be made through reimbursement system by Thursday, June 28th at 8pm for expenses incurred to date and to cover current cash deficit • All FY12 transactions in the reimbursement system must be processed by Thursday, July 19th at 5pm • Do not process accruals for the reimbursements on these funds – Business Affairs will process the receivable accrual centrally after July 20th.

22. Reconcile Advance Funds • FIS 407-07 for Departmental Advances • FIS 407-08 for Travel Advances • Make every effort to collect and settle advance funds before the end of FY12 • Review your Business Center Advance Fund 00116X • Reconcile remaining balances for advances

23. Reconciliation Tips / Tricks • Review Fund Reconciliation Responsibilities • Monthly or Quarterly reviews should be done throughout the year • View balances in FGITBSR or Data Warehouse • Make sure of the following: • Debit or Credit Balance is correct (Axxxx = D, Bxxxx = C) • Transactions are in correct fund and/or account • “Old” balances are resolved

24. Reconciliation Tips / Tricks (cont.) • Reconciliation Required for: • A3150 Department Advances • A3151 Travel Advances • A5901 Prepaid Expense Year End Accrual • A3802 A/R Rec Year End Accruals • A4xxx Inventory • B5901 Accrued Undistributed Income • All other Axxxx & Bxxxx accounts that have a balance at Year End • Except for A0901 Cash on Hand and B0100 Invoices Payable • Send Reconciliation Spreadsheets to Charlotte.Rooks@oregonstate.edu by July 20 @ 5pm

25. Journal Vouchers Remember in July • Period 14 (FY12) and Period 01 (FY13) are open concurrently, until Period 14 closes on Monday, July 23rd • Watch JV transaction dates carefully • Very important: begin text with “FYxx” because the JV approvers are not mind readers • Use normal rule codes such as 3JV1, 3BCx or 3GNT as appropriate

26. Journal Vouchers (cont.) Inter-institutional JVs for FY12 • Per 12: Submit to Business Affairs by July 5that 12pm, noon • Per 14: Submit to Business Affairs by July 10th at 12pm, noon JVs (non-budget) can be processed after June 30th with a June transaction date • Period 12 deadline – Monday, July 9 at 10am • Period 14 deadline – Thursday, July 19 at 12pm, noon

27. Journal Vouchers (cont.) Redistributions or corrections • Do all corrections in current fiscal year (period 12) • Any prior year redistributions in FY13 will be reviewed for effect on financial statements and may be disapproved • No retroactive redistributions will be allowed which are between Program Codes or funding sources (Fund types).

28. Budget Journal Vouchers FY12 departmental budget change JVs (1xGF, 1xGP and 1xAS rule codes) processed after June 30 need to use June transaction date • Complete and approve by Monday, July 09 at 12pm, noon Only SWPS administrative budget offices are allowed to process FY12 budget adjustments between July 10 and July 19 (Period 14)

29. Purchase Orders Plan ahead for major expenditures • Watch P.O. deadlines Period 01 for FY13 opens Friday, June 15 for PO’s Only Open purchase orders will be rolled into Period 01, FY13 July 18th, 5pm • Verify purchase orders are “open” – run FGROPNE • Open PO’s for which final payment has already occurred should be liquidated by JV For more information on monitoring PO’s: http://oregonstate.edu/fa/businessaffairs/bcr#trainfaa

30. 40199 – Construction In Progress All 40199 account code balances must be zero at year end • Process a JV to move all expenses from 40199 to 401xx or A80xx if equipment is: • Completed and ready for use – list “in use” date in text • Still a Work-in-Progress – JV text must state “Work-in-Progress = Y” • If the 40199 expense represents an installment or prepayment, move all expenses from 40199 to A5901-Prepaid Expense – must be reversed in FY13

31. 40199 – Construction In Progress When 40199 expenses are transferred to 401xx or A80xx, a new asset record is created in the Fixed Asset Module • JV text must include all elements necessary to create a new asset record – See PRO-Ex1 • Creating a new asset requires extra processing in the Fixed Asset Module – Please clear all 40199 balances as soon as possible

32. Cash Receipts Deadline for depositing all cash: Monday, June 25th, 4pm Deadline for bulk coin deposits: Thursday, June 28th, 12pm Deadline for cash received after June 25th ONLY: Friday, June 29th, 12pm Do not accumulate receipts for one final deposit! All checks and cash should be deposited within one business day of receipt.

33. Petty Cash See FIS 1402-10 for responsibilities • Petty cash funds should be kept reconciled at all times • Reimbursements must be processed at least quarterly June 29th - Physically count cash being held as petty cash or in vault fund • Dual custody count • Someone other than the person who has physical custody of the funds must verify the count FY12 expenses using petty cash must be reimbursed in FY12 Deadline: Reconciliation due to Cashier’s Office by July 20th, 5pm

34. Payroll Process all labor redistributions for payroll posted through May at the beginning of June, when PYAREDS opens. There will be an extra payroll posting for redistributions on June 8th and another on June 15th. Business Center HR/Payroll staff must have paperwork affecting June pay entered by Friday, June 15th, 5pm All final FY12 Labor Distribution corrections must be entered in PYAREDS by Friday, June 29th, 12pm Prior year retroactive payroll redistributions submitted in FY13 will only be approved by OPAA when Program Codes or funding sources are not affected

35. Direct Pay invoices Direct Pay Vendors such as Office Max, OSU Bookstore, VWR, and Fisher Scientific • Expenditures are charged directly to departmental accounts via an “ICxxxxxx” invoice • Vendor sets its own billing cycle • FY12 purchases must be completed by Friday, June 15th to ensure posting in FY12

36. Pcard Distribution FA&A will stop loading Pcard transactions on June 29 at 10am – all transactions in the Pcard module will be FY12 transactions that need to be distributed Deadline for processing through the Pcard module is Friday, July 6th, 5pm July, FY13 transactions will begin loading again after Period 12 is closed.

37. Travel Reimbursement requests for travel taken through June 30 must be submitted by Monday, July 9th, 10am to be included in the FY12 Accounting RecordsEnsure transaction has a June date in Banner Final June airfare files will be reviewed by Business Affairs and only June travel dates will be posted to FY12 • Airfare for travel dates July and later will be posted as July, Period 1 FY13 transactions Any expenses for FY12 travel that have not posted by Wednesday, July 18th should be put on the accrual spreadsheet

38. Invoices Period 12: July 1-9, for all funds • Goods or services received on or prior to June 30 • Process the invoice in FY12 using a June transaction date • Documents must be completed and all documents/image files to the Final Approval Unit by Monday, July 9th, 10am All final approvals must be completed by Business Centers Monday, July 9th, 1pm. Queues must be completely cleared of all FY12 documents.

39. Invoices (cont.) Period 14: July 13th for Fixed AssetsUsing 4xxxx Account Codes or 8xxxxx Plant Funds • Goods or services received on or prior to June 30 that must be capitalized • Process the invoice in FY12 using a June transaction date • Have all documents/image files to the Final Approval Unit • Deadline Friday, July 13th, 5pm Necessary to allow Facilities and Fixed Assets sufficient processing time for capitalization and reconciliation.

40. Invoices (cont.) Period 14: July 10-18, for all funds • Goods or services received on or prior to June 30 • Continue processing each invoice in FY12 by using a June transaction date. • Caution: Period 01 FY13 is open at this time – watch dates! • All invoices must be entered and completed, with the documents or images to the Final Approval Unit by Tuesday, July 17th, 5pm Final Approval must be completed by Wednesday, July 18th, 12pm, noon. Queues must be completely cleared of all FY12 invoices.

41. Invoices (cont.) Reminder: Do not prepay for supplies, services, memberships, or subscriptions that begin on or after July 1, 2012. Hold these invoices and process in Period 01, FY13 - July 1st or later

42. Major Deadlines Pay close attention to the major deadlines for year-end close Chronological list of deadlines and instructions can be found on our YEC website: http://oregonstate.edu/fa/businessaffairs/analysisreporting/yearend.php

43. Websites For Instructions Year End Close - http://oregonstate.edu/fa/businessaffairs/analysisreporting/yearend.php OSU Foundation - http://www.osufoundation.org/ Office of Budget and Fiscal Planning -http://oregonstate.edu/budget/

44. Contacts E-MAIL ADDRESSES Budget.Office@oregonstate.edu Cashiers.Office@oregonstate.edu Departmental.Deposits@oregonstate.edu BAFF.Accounting@oregonstate.edu Paymaster@oregonstate.edu

45. Contacts General Questions Financial Accounting & Analysis [FAA] Charlotte Rooks 737-5422 Treasure Hunt 737-9370 Kim Jenkins 737-3792 Stephanie Smith 737-1825 Angelica Smith 737-6047 Mark Fryman 737-0624 Fixed Assets Janna Storm 737-4084 Accounts Payable/PO/Encumbrances RaeLee Aguilar 737-0635 Autopays Treasure Hunt 737-9370 Pcards Rose Hamilton 737-0650 Grants, Gift, and Foundation Funds OPAA 737-4711