Fiscal Year-End Training

1. Office of the Comptroller University Procurement Office of Research Office of Planning & Budget Fiscal Year-End Training

2. Fiscal Year-End Training AGENDA Welcome & Introductions Budget Procurement Accounting Research Accounts Payable Payroll

3. Office of Planning & Budget

4. Office of Planning and Budget • Fiscal 2010 Year End • Funding Transfer Deadline • Cost Centers in NSF (Non-Sufficient Funds) • FY2011 Budgets

5. General Expense • Last day to submit routine funding transfer forms is May 28, 2010 • Except to correct an NSF condition. • Drexel: send to Budget Office. • DUCOM: send to Dean’s Office for approval.

6. What does NSF mean? • NSF is an acronym for “Non-Sufficient Funds”. • If the cost center is in NSF, it delays the processing of invoice/s. • The invoice has to go through the following additional steps which delays payment. • 1. The A/P processor keys the invoice in only to have it rejected by the accounting system, then it goes to the batch editor. • 2. The batch editor checks to make sure the cost center is in deficit. If it is, the invoice is sent to the A/P Manager. • 3. The A/P Manager places the rejected invoice in suspense. • 4. The A/P Manager emails the department and/notifies the Budget Office of the NSF. • 5. Budget contacts the department for a funding source. • 6. Once the deficit is funded, Budget notifies A/P that the suspended document can be processed. • 7. A/P can then process the invoice and generate a check.

7. NSF • An account is in NSF when the YTD Activity plus the Encumbrances are greater than the Revised Budget, resulting in a negative remaining balance in General Expense. • NSF can occur in Personnel Expenses as well as General Expenses.

8. Personnel Expense • June 10, 2010-Deadline for submitting personnel budget transfers to HRIS • When every position budget is funded, you do not run the risk of having a personnel deficit.

9. Web*Salary

10. Pooled Budget • Drexel uses a pooled-budget method for checking availability of funds. • The Pooled Budget includes most account codes in General Expense. • Exceptions: • Drexel and DUCOM • 4251 – Rent Payment – Tenet • 7011 - Subcontract Expense < $25,0000 • 7012 - Subcontract Expense > $25,0000 • 8010 - Expense Recovery Internal Charges • 8011 - Expense Recovery External Charges • DUCOM only • 3421 – Insurance Premiums (DUCOM) • 3450 - 3459 – Medical Insurance Premiums • 4254 – DU/PHEC IC Charge-backs • 4255 – Dean’s Tax • 4262 – Departmental Overhead

12. How to avoid an NSF • Be pro-active in managing your account. • Clean up encumbrances. • Check the remaining balance in General Expense. • Watch out for: • Purchasing Card transactions • Service Department charges • Telrose/Office Depot charges • Etc.

13. Process for Solving NSF’s: Drexel • If you think your account will fall into NSF, please contact the Budget Office. • Budget will continue sending NSF notifications via e-mail. • The e-mail will ask you to provide a source of funds to cover the deficit. • Unrestricted account under your control • Designated account, PI Overhead Share account, DeL program account, Restricted if appropriate

14. Process for Solving NSF’s: DREXEL • Please respond promptly to this e-mail! • Time is of the essence. NSF’s hold up the payment of invoices and put the year-end schedule at risk. • Beginning June 1, 2010, if we do not hear from you within two days, we will fund your deficit from the most reasonable source and send an e-mail telling you which account we have used.

15. Process for Solving NSF’s: DUCOM • If you think your account will fall into NSF, contact the Dean’s Office. • The Dean’s Office will work with you to find a way to cover your deficit.

16. NEW FOR FY10 and BEYOND • Beginning April 1st, the Budget Office will prepare a monthly report per department or division that shows the different cost centers that are in deficit and will submit the report to the Sr. VP for Finance and Treasurer. • The Sr. VP for Finance & Treasurer will notify the Sr. VP per division of their deficits. • If no actions are taken to clear the deficit, the situation will be directed to the Office of the President for final resolution. • Applies to DU and DUCOM

17. Fiscal Year 2011 Beginning • Unrestricted Budgets • Designated, Restricted and Capital Budgets

18. Fiscal Year 2011 Budgets:Unrestricted • Unrestricted budgets are annual budgets which begin anew each fiscal year. • DREXEL: The FY2011 Board Approved Budgets will be posted into Web*Finance by June 18. • DUCOM: The FY2011 Board Approved Budgets will be posted by June 18 or after reconciled by the Dean’s Office.

19. FY2011 Budgets:Designated / Restricted • DREXEL: • Cost centers beginning with 13, 15, 17 and 3. • The balances in Designated and Restricted accounts roll-over from one fiscal year to the next. • Estimated Budgets posted by June 18, 2010 • DUCOM: • They are now treated like unrestricted budgets. Budgets are based on amount approved during the budget process.

20. FY 2011 Budgets: Capital • Cost centers beginning with 620XXX • DREXEL Capital Budgets: - Estimated Budgets posted by June 18, 2010 • DUCOM Capital Budgets: - Estimated Budgets posted by June 18, 2010

21. What is an Estimated Budget? • Because we don’t know what the ending balance will be, we post an estimated budget into the account. • The estimated budget is 90% of the balance on May 31. • After fiscal year 2010 is officially closed in late August: • We reverse the estimated balances. • We post the actual balances.

22. Office of Planning and Budget Questions? • E-mail us: budget@drexel.edu • Web site: http://www.drexel.edu/depts/compt/budget

23. Research Accounting Fiscal 2010 Year-End Presentation

24. Office of Research Year-End Accounting Issues Stewardship responsibility for sponsored funds: Timely cost transfers Timely salary reallocations Cost transfers and salary reallocations for expenses occurring during FY10 should be processed in FY10. Review expenditures to ensure accurate accounting. Contact your Program Administrator if you have any questions.

25. Office of Research Year-End Accounting Issues Encumbrances All subcontractor encumbrances will be handled by your Program Administrator in the Office of Research. Please follow Comptroller’s Office guidelines for all other encumbrances. Review your encumbrances for accuracy, e.g., ensure that encumbrances are being reduced when invoices are paid. Contact your Program Administrator for assistance if your encumbrance seems to be overstated.

26. Office of Research Year-End Accounting Issues Personnel Action Form Processing – FY10 If the latest salary distribution is not entered in the Labor Screen of Web*Budget, all salary will revert back to the department as of July 1, 2010. Using your department’s latest distribution report, enter that information to ensure personnel charged to grants in FY10 will continue to be charged to grants in FY11.

27. Office of Research Year-End Accounting Issues Requests to Purchase Requests to Purchase for sponsored project expenditures > $2,000 must first be sent to your Program Administrator in the Office of Research. If Requests to Purchase are sent to Procurement without going through the Office of Research, they will be returned to you.

28. Office of Research Year-End Accounting Issues Establishing New Projects If there is no reason to set up a project that begins July 1 or later in the old fiscal year, the Office of Research will establish the project in the new year after July 1. This reduces the possibility of errors related to year-end processing.

29. Research Accounting Questions? OFFICE OF RESEARCH COMPLIANCE and ADMINISTRATION (“ORCA”) ORCA@drexel.edu 215-895-5849 WEBSITE:  http://www.research.drexel.edu/administration/

30. University Procurement Fiscal 2010 Year-End Presentation

31. Questions To Ask NOW! • Do I have any money left? • No Available Balance (NSF) means you can’t buy anything. • Applies to the PCard, Purchase Requisitions, Check Requests, etc.

32. Questions to Ask NOW! • What is my Actual Available Budget balance? • Consider items in transit • Upload charges: • PCard, UPS, interdepartmental, copiers, etc. • Invoices sent to A/P but not yet keyed or in suspense due to NSF

33. Questions To Ask NOW! • Were any of my Requisitions or Purchase Orders paid in full, yet are still listed in Outstanding Encumbrances in Web*Finance?

34. Questions To Ask NOW! • Encumbrances • Established by University Procurement after receiving a Purchase Requisition from the department • General Encumbrances (established by Accounts Payable)

35. Questions To Ask NOW! • How do I get my Outstanding Encumbrances closed? • Encumbrances are closed when invoiced by the vendor against the PO or released after the monthly PCard upload. • Encumbrances are not released if payment is made via Check Request or paid with a departmental PCard.

36. Questions To Ask NOW! • POs over $2,000 – invoice & receiving keyed against the PO. • Receiving (Payment Approval Copy of PO) must be signed and returned to A/P. • Or, invoice must be signed. • It won’t be closed if only partially invoiced and/or received. • If product/service final invoice is less than the PO, University Procurement must be notified to close out the PO. • Otherwise, the PO balance will remain open.

37. Closing Purchase Orders POs are contracts and as such, should not be cancelled without consultation with the buyer who placed the order.

38. Closing POs • Closing a legitimate PO to increase one’s Available Balance is not permitted. • Once released, funds will be applied to any outstanding deficits.

39. Closing POs • If the PO is no longer legitimate: • The requestor e-mails the buyer to close the PO. • The buyer will get a confirmation from the vendor that all invoices have been paid in full. • The buyer cancels the order with the vendor.

40. Closing POs • Buyer will contact A/P to check for in-process Receiving and/or Invoices. • A/P e-mails Procurement with OK to close the PO. • Procurement closes the PO and e-mails the requestor confirming that the PO was closed.

41. Questions to Ask NOW! • Which of my Requisitions or Purchase Orders will carry forward (roll) into the new fiscal year? • Any PO that is open after the General Accounting clean-up process. • Subcontracts for Research/Grants/Projects

42. Questions to Ask NOW! • Purchase Orders that roll from FY10 into FY11 will reduce your FY11available budget.

43. Questions to Ask NOW! • When can I submit my last Capital Equipment/ Furniture Purchase Request? • April 23 is the last day. • Approved requisitions submitted after April 23 will not be keyed before July 1. • Exception: capital equipment/furniture must be delivered, installed and invoiced by June 30

44. Questions to Ask NOW! • When can I submit my last routine Purchase Request? • May 28 • Approved requisitions submitted after May 28 will not be keyed before July 1. • Exception: emergency purchases

45. Questions to Ask NOW! • What about Blanket PO’s? • All Blanket Orders, with the exception of Research Subcontracts, expire on June 30. • Must renew if you need them for FY11.

46. Questions to Ask NOW! • How can I get a list of my current Blanket Orders? • Procurement issued a list of current Blanket POs showing total invoiced amount. • Review the list to determine which need to be renewed (if any).

47. Questions to Ask NOW! • Blanket PO Process • Mark up the list with any changes for the new fiscal year. • The administrator with the proper signature authority must sign next to each Blanket PO to be renewed.

48. Questions to Ask NOW! • Blanket PO Process • If I don’t want to renew? • Draw a line through the blanket(s) you don’t want renewed, and initial each one. • Return list to us by June 15th.

49. PCard and Year End • Do Not use the PCard without available funds. • PCard acts more like a Check/Debit Card than a Credit Card and must be paid in full at the end of each month.

50. PCard and Year End • Do NOT use the PCard for any purchases beyond June 15 to ensure posting. • Vendors must submit charges to card holders before June 30. • Each and every PCard transaction that posts after June 21, but prior to July 1, must be reconciled by Thursday, July 8. • Please do not request any card limit increases during the month of June.