UC San Francisco School of Medicine

1. UC San Francisco School of Medicine School of Medicine Finance Managers’ Meeting Fiscal Year End 2019 June 26, 2019

2. Agenda • Deadline and Due Dates • Key Dates • Payroll Pay Cycle Summary • Fiscal Close Action Items • Fund 1900 Close-out Guidelines • Fund 5000 Close-out Guidelines • Review Other Fund/Projects • Best Practices • Fiscal Year-End Accruals • Other Fiscal Close Items

3. Key Deadline Due Dates • Financial Journal(SC 535) deadlines (5p.m.): • July 9– June prelim close requiring the Control Point (CP) approval. • July 23 – June interim close requiring CP approval (LAST DAY for net position transfer journals) • July 26 – Department journals not requiring CP approval • Payroll Expense Transfers-PETs(via PETU) June close deadline (send to Controller’s Office by 5pm): • July 1 - PETs for sponsored funds • July 12 - PETs for non-sponsored funds • Cash Deposits • June 30 - Deposit cash/checks to be counted in FY2019

4. Key Deadline Due Dates • Purchasing • Deadlines have past – set in May and early June • Accounts Payable • Submit invoices, check requests and payment request forms by June 28th, 5p.m. • P-Cards • Approve all P-Card transactions in US Bank by July 3rd, 5p.m. • MyExpense Reimbursement Requests • Approve all MyExpense reports by June 28th, 5p.m. • Exceptional Expense Requests • Submit all exceptional expense requests to Simon Schuster NOW

5. Payroll Pay Cycle Summary There is a 3rd biweekly pay compute for June for the pay period ending 6/29/2019. All actual June payroll expenses will post to June and no biweekly salary/benefits accrual will be created. June leave usagewill be included in theJuly11thpay compute and will be reflected in MyReports onJuly15th Last day to submit June PETUs is July 12th. PETUs submitted after July 12th will be included in July DPE and general ledger.

6. Review General State (SEA) Fund1900 • Aggregated atDept ID level 2: • Surplus balance of $25,000 or less will be automatically carried forward. • Surplus balance in excess of $25,000 is not allowed. For exceptional requests, please contact Deanna Woo. • Nonetpositiontransfers(accounts78xxx)between1900andnon-1900fund. • No deficits allowed. Projects in deficit should be cleared. • GME fund 1900 allocation (project 1000001) should be spent down. No deficits allowed.

7. Review Campus Core Fund 5000 • Aggregated atDept ID level 2: • There is no surplus carry forward balance limit/threshold. All surplus balance will be automatically carried forward. • No net position transfers (accounts 78xxx) between 5000 and non-5000 fund. • No deficitsallowed. Projectsin deficit should be cleared.

8. Review – Other Fund/Projects • Reminder to submit prior to July 23any Med Comp Plan Fund 5014 and Sales & Services Other Fund 5018 net position transfer journals.Journals dated after 7/1/19 to move funds between 5014 and 5018 will be denied, unless it is related to recharge subsidies. • GME projects with balances in Fund 5018 should be reviewed and cleared between funds 5014 and fund 5018 • GME Finance will review GME projects in Fund 5018 during interim close week of July 22nd • Spend down of Gifts & Endowment income projects • Review Project Manager PRR report • Review spending plans submitted in January • Control point will be in touch after fiscal close for status update on spending plans

9. Review – Other Fund/Projects • Agency Funds 2xxx – no deficits • Recharge Funds • Complete recharge billing and depreciation reserve journals • Employee Support Program/Rate Additive Project 2000625 – no deficits • To fund projects such as 1000112, 1000111, 1111111

10. Best Practices for Close-Out • Do not wait until the last day. • Journals should arrive for CP approval, prior to 5pm of the due date. Allow time for tiered approvals. If your department approver plans to be away, assign a temporary alternate approver. • Fund transfer journal backup should always include the net position report. Include any other documents to support the transfer. • Address deficit/surplus (preferred) • PETU - Factor in items that will hit during interim ledger: June vacation leave, GAEL, data network, ITFS • 535 financial journal – Transfer non-payroll expenses at the posting account level to/from a discretionary source (such as funds 5014/5018). Use of 58451 (unusual, non-recurring) or 58351 (sponsored deficit) is not allowed. Lump sum transfers across different expense accounts are NOT allowed. • Use tools available to monitoring deficits (throughout the year): • Financial Management Dashboard • MyReports - Net Position Report

11. Best Practice - Close-Out Examples • Example #1 • Clear all Fund 1900 and Fund 5000 deficit balances prior to prelim close and PET deadline (July 12) • Safer to plan a surplus balance before entering interim close

12. Best Practice - Close-Out Examples (cont.) • Example #2 • Bring Fund 1900 surplus balance below $25K, close to $0 by interim close

13. Fiscal Year-End Accruals • Revenue Accruals • Service performed but will not receive payment until after fiscal year-end • Work with Control Point to prepare accrual journal to recognize revenue and book accounts receivable by July 11th • Estimated UCSF Health purchase services and strategic support true-up/down accruals not processed by prelim close will be accrued at the School level • Expense Accruals • Received goods or services but will not pay vendor until after fiscal year-end • Work with Control Point or Controller’s Office to prepare accrual journal to recognize expense and book accounts payable by July 24th, noon • Bonus/incentive accruals – Control Point to coordinate journal with Controller’s Office after collecting estimates from departments. Estimates due from departments on July 5th.

14. Other Fiscal Close Items • Call for FY19 Dean‘s Office program support dollars – contact Mika Yoshigae • Reimbursements – send request to Mika Yoshigae by July 8, noon • Deficit/operational support – send request by July 16, noon • Basic Science Funds Flow true-up/down • 1sttrue-up/down will post by prelim close • Any final true-up/down will post in interim • Review chartstring set-up for new fiscal year in accordance to guidelines set forth for COA optimization • Use of Med Comp Plan Fund 5014 and Sales & Service, Other Fund 5018 • Function coding – alignment with missions • General ledger verification and adoption of online tool • Complete June GLV by August 16th • If your department has not adopted the use of the campus online GLV tool, please plan to do so soon, ideally with the start of the new fiscal year

15. Resources CO Year-end ClosePresentation: https://controller.ucsf.edu/documents/accounting-reporting/fiscal-year-2018-19-year-end-close-presentation Deficit Procedures for Deficit Resolution Business Plan (revised 4/15/2014): https://brm.ucsf.edu/sites/g/files/tkssra1716/f/wysiwyg/Deficit_Procedures_20140415.pdf DeficitMonitoringandResolution: https://policies.ucsf.edu/policy/250-12 SOMFiscalClose:(includes Reference Guide for Net Position Transfers) https://financemedschool.ucsf.edu/fiscal-close