Fiscal Close Workshop – Auxiliary and Sales & Service Units 2019

1. Fiscal Close Workshop – Auxiliary and Sales & Service Units 2019

2. Agenda • Introduction – Brian Fahnestock • Fiscal Close Overview – John Douglas • Fiscal Closing Transactions – Victor Cesario • AP/Disbursements & Travel – Tanya Harris • Encumbrances & Purchasing – Melissa Lee • Payroll – Ashley Penny • Decision Support – Kevin Chung • Questions

3. What is an auxiliary enterprise? • Auxiliary enterprises: • Are essentially self-supporting activities; • Provide non-instructional support to students, faculty, and staff; • Charge a specific user charge or fee The general public may be served only incidentally by these enterprises. Examples: housing, non-housing food service, parking, bookstore, student center. Adapted from UCOP policy BUS-72.

4. What is a sales & services agreement? • Sales & services agreements: • Are used when a campus unit wishes to render a service or provide goods to a non-University user for which revenue is collected; • The furnishing department incurs expense to make available a product or service which is sold to the non-University user for an established price, or at a price based on an established standard pricing method. Examples: some School of the Arts productions, passport office, Thesaurus Linguae Graecae. Adapted from UCI policy 703-14.

5. What is sales & services income? • Income without contractual requirements that is irrevocable should be deposited as a gift; • If the product or service is customized, income should be deposited as a private contract or grant; • If the product or service is standardized, income should be deposited as sales & services income.

6. What is Fiscal Close? • Fiscal Close is the process of: • Ensuring that our financial data is accurate for the ending fiscal year; • Organizing the campus financial records for inspection by auditors; • Creating our yearly financial statements which are then consolidated with the other UC campuses into system-wide statements and reports for the Regents and the public.

7. UC Annual Financial Report

8. Highlights for 2018-19 close • Many key dates this year will be on Wednesdays again instead of Fridays (e.g. Period 12 close, final close). • Only Income on Control Accounts need to be budgeted • The Account Global can now be used to close multiple accounts at once

9. Responsibilities • Departments and their coordinating points are responsible for seeing that all income and expense is recorded accurately and that all accounts close in a solvent condition. • The Accounting Office is responsible for consolidating data, preparing year end reports and statements for the Office of the President, and producing the final ledger. There are over 130 close steps this year from UCOP.

10. Key Dates • July 5– Recharges (IB, SB, and Feeders) complete • July 10 – Prelim • July 17 – Interim – Period 12 will close in KFS, and certain non-final docs will be canceled (GEC, BA, BAT, YEDA, AVs). July 31 – Final August 7 – July FY20 will close

11. Fiscal Close What to Expect

12. What You Need to Know to Close the Year • June 28 – Deposits: Medical Center CR • June 28 1pm - COD and CCR for Campus Cashiers • July 3rd5pm– Last day CBSO Invoices for FY 19 • June 28 – Last day to initiate any KFS Maintenance Changes (Resumes July 18th) • July 1-July 17Accounting Reviewer Bypass • (BA, BAT, GEC & DI documents ONLY) • Fiscal Officer still required to approve GEC & DI • July 1-July 17Action List Reminder/Daily E-mail

13. Use the Account Global to close multiple Accounts • See the Account Global Guide for more information.

14. What You Need to Know to Close the Year • July 10 – Last day for the following documents for Fiscal Period 12: • Advanced Deposit (AD) • Distribution of Income and Expense (DI)

15. What You Need to Know to Close the Year • July 17 – Last Day for Fiscal Period 12 FINAL KFS initiated documents: • AV • BAs & BATs • GECs • YEDAs (Available July 11 – July 17)

16. Credit Balances on Expense Objects • Beginning now, departments should start reviewing their Object Codes for any Credit Balances. • Using the Object Code Balance Report and selecting Credits Only, you will be able to return a list of all Credit Objects. • Departments cannot close the Fiscal Year with a Credit Balance in an Object Code for Year-To-Date (Non-C&G) accounts.

17. Accruals & Deferrals Quick Guide to Processing Accruals & Deferrals (Year to Date Funds) Fiscal Close 2018-19

18. Why Accruals & Deferrals? • In accordance with UCOP Accounting Policies & Procedures, financial activity must be recorded in the Fiscal Year that relates, corresponds, or supports that activity.

19. Recording Accruals & Deferrals • KFS Document available July 11 = YEDA • (Year End Department Accrual/Deferral) • Minimum amount ≥ $10,000 • (Expenses per Invoice) • Minimum amount ≥ $5,000 • (Capitalized Equipment) • Minimum amount ≥ $35,000 • (Plant - Capitalized Construction costs)

20. What is an Accrual? • IncomeIncome earned for the previous Fiscal Year but not posted until the new Fiscal Year. • ExpenseExpenses for activity incurred in the previous Fiscal Year but not posted until the new Fiscal Year. • RechargeEE type expenses for activity incurred in June but will not be recharged until July. Exceptional circumstances must exist such as expiring funds.

21. Income Accrual • Income submitted for services rendered in FY 18-19 but payment outstanding or received after check deposit deadline

22. Expense Accrual • PO#xx-xxxx, Inv#1xxxxxVendor: ANTEATER DELICIOUS FOODGoods Received: 6/30/19Contact: Anteater • After July 11th

23. Recharge Accrual (YERA) • Available only the first 2 days of YExx documents. (7/11-12) • Recharge Accruals are only allowed if special circumstances exist such as FY (June) expiring funds. • Both departments (sides of the transaction) must agree prior to the initiation of the YERA. • Document will not be finalized by Accounting until the FO’s accept the FYI route log/workflow nodes. • Budget documents must be processed if applicable. • https://accounting.uci.edu/fiscalclose/yera.html

24. YERA Route Log/Workflow • Documents will not be finalized by Accounting until the FO’s accept the FYI in their Action list for this document.

25. What is a Deferral? • IncomeIncome that you received in the previous Fiscal Year but relates/corresponds/supports activity that will not happen until the new Fiscal Year. • ExpenseExpenses that you paid for in this Fiscal Year but relates/corresponds/supports activity that will not happen until the new Fiscal Year.

26. Income Deferral • Event: Summer Pre-Med Program - revenue received in May 2019 but event expenses will not be recorded until September 2019. • Event: MOCA course revenue received in Jan-June 2019, but expense will not be recorded until September-November 2019. • Department Contact: Anteater

27. Expense Deferral • Defer CMSF Lab Expenses for Summer Session I 2019 to FY 2019-2020. Revenue for SS2019 will post FY 2019-2020

28. Appropriating/Budgeting Income Control Accounts (UC # # # # #) vs. Operating Accounts

29. Control Accounts Income Variances • Control Account Income Variances must be allocated

30. Control Account Income Object Variances • $0 Income Variance by Chart, Control Account & Object • Only the whole variance for the Chart, Control Account & Object needs to be addressed, regardless of Sub-Accounts, Sub-Objects, and Project Code

31. Control Account Income Object Variances $0 Variance by Chart, Control Account & Object

32. Operating Accounts Income Variances • No Action Required for Income Variances in Operating Accounts

33. Transfers to/from a non-operating fund • Reserve Funds (Auxiliary Enterprises)There may be specific circumstances for which the accumulation of reserves for future year expenses may be considered appropriate and in the best interest of the campus community. Example: capital renewal/replacement. • Requests for transfers to/from reserves should be sent via Excel template to Accounting (before July 17th)

34. Reserves (non-Auxiliary) • Fund# 76390 • Recharge Renewal & Replacement Reserves • Official Recharge Units Only (Budget Office Review) • Contact the Budget Office first • Provide General Accounting the information to process the transactions before July 17

35. New Fiscal Year What to Expect

36. New Fiscal Year • July 1 (KFS Transactions) • Carry Forward Balances = EXPENSE: Budget minus Actuals INCOME: Actuals minus Budget Goes to Expense Object Code 0008 Consolidation Code UNAL Fiscal Period BB vs. CB

37. Intercampus Expense Transfers(ICT Document) June 28, 4pm Due in General Accounting

38. UC Campus Tab

39. AP/DisbursementsTravel Tanya Harris

40. Invoices Deadlines • Invoices must be submitted to Accounts Payable no later than July 8th 4pm. • Email Invoices to accounts-payable@uci.edu • Invoices for FY 2018-19 that are not processed by July 8thmust be accrued by the department if the expense is greater than $10K.

41. Invoices Tips • When sending invoices to AP to pay please ensure the PO has enough money, is open and valid. • Invoices must be submitted to Accounts Payable no later than July 8th. Email to accounts-payable@uci.edu

42. TEM and DV • All TEM and DV documents need to be submitted, scanned and approved by Travel Accounting by 4 p.m. on June 21st to be recorded as expenses for 2018-19. • Continue to initiate your documents after June 21st. • Travel Accounting will make every effort to approve your documents by the June 28th deadline.

43. TEM and DV Cont’d • Anything approved after June 28thwill be posted in the next fiscal year. • Anything with a travel end date older than six months will need exceptional approval. • Any travel with an end date older than a year cannot be processed • For Travel Fiscal Close Questions contact travel-accounting@uci.edu

44. Upload Scanned Documents • Fastest and most reliable way to attach supporting documents to your reimbursement • You cannot upload files until the KFS document has been saved or submitted. • Make sure that sensitive or personal data is redacted. Files cannot be deleted, and no redaction can delay approvals. • You can Scan or take a photo to upload.

45. Encumbrances & Purchasing Melissa Lee

46. Encumbrances • Encumbrances are established by • Purchase Orders • Travel Authorizations • Pre-Encumbrance Documents • Departments are responsible for closing out leftover Encumbrance balances • Open Encumbrance= PO/TA is open with a balance • Leftover Encumbrance= No more activity is expected • Reference Document Number is the PO # or Trip #

47. Encumbrance Information

48. Encumbrance Lookup in KFS

49. Encumbrance Report

50. Encumbrance Report