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welcome 2012-2013 YEAR END CLOSING WORKSHOP

welcome 2012-2013 YEAR END CLOSING WORKSHOP

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welcome 2012-2013 YEAR END CLOSING WORKSHOP

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  1. San Diego County Office of Education District Financial Services Financial Accounting/Reporting welcome2012-2013 YEAR END CLOSING WORKSHOP

  2. Goal of the Year End Closing Workshop • To familiarize personnel new to school business with the year-end closing process. • To review year-end closing entries and transactions. • To help ensure that the district’s financial statements are accurate and ready for an audit. • Demonstrate the automated CAT form

  3. 1 Section 1General Accounting Information

  4. Who to call protocol – pg. 1.4-1.7 • Financial Accounting & Reporting • Staff list for Business Advisory Services • Warrant Processing List • County Treasury – pg. 1.8-1.34 • Contacts • Resolutions for Fund set up • District Funds Conversion Report • Lists Funds and Oracles assigned to your district General Accounting Information

  5. Money Processes & Forms – pg. 1.35-1.45 • Deposits • GAPS Direct Deposit • WARP (Wire Administration & Request Portal) • ACH Transfers • Report Ordering – pg. 1.46-1.51 • Month-end & Year-end • Chart of Accounts & District Dictionary Rollover • Budget Rollovers • CY Revised & Working to Next Year’s Working Rolls can be done now • Any other rolls for 13-14 have to wait until Friday, July 5th. • This is an overnight process. You will see data on Monday, July 8th General Accounting Information

  6. 2 Section 2 Closing Schedules

  7. Important Dates (pg. 2.2-2.4) • Thursday, June 27 – • Final date for all deposits to Wells Fargo Bank by 4 p.m. • Friday, June 28 – • Last day for Auditor’s Transfer requests to Financial Accounting by 10 a.m. • Thursday, August 22 – • Final day of system access to input FY 2012-13 activity

  8. 3 Section 3Checklists

  9. Closing Checklists • Make sure you balance the following prior-year accounts: • Account receivable • Due-to/Due-from • Liabilities • Suspense • Fiscal Year-end closing checklist (p3.5-3.8) • Inventory (p3.9) • Make necessary adjustments to agree with the physical count

  10. Closing Checklists • Before you call in to close: • Make sure District Closing Checklist is done (p3.11-3.14) • SACS FORM RL & CAT FORM are completed • Do not send in a SACS DAT file until after the board meeting

  11. 4 Section 4Entries Made Prior to Closing

  12. Prepaid Expenditures (p4.2) Step 1 - Reverse prior year closing entry: Res Goal FuncObj DR CR Insurance xxxx xxxx xxxx 5400 1,500 Prepaid Exp. xxxx 9330 1,500 Step 2 - Establish current year closing entry: Res Goal FuncObj DR CR Prepaid Exp. xxxx 9330 2,000 Insurance xxxx xxxx xxxx 5400 2,000

  13. All expenditures must be accounted for in the proper fund • 9311 – Due From • 9611 – Due To • 9311 must equal 9611 • If transferring expenditures after June 30, you must use Due To/Due From as the offset instead of cash, see page 4.5 for an example Due to/Due From (p4.4–4.6)

  14. Due To & Due From GL account numbers rolling over into the next fiscal year will change: • Account 9311 will become 9312 (PY) • Account 9611 will become 9612 (PY) • Districts that still have 9312 and 9612 on their books must be clearing these accounts prior to June 30 • When posting a temp. loan between funds see EC 42603 on page 13.2 for limits Due to/Due From (p4.4–4.6)

  15. Fund Check (p4.7-4.9) • Check GL accounts and suspense accounts • Must check all accounts by resource • Sample fund check form for all your funds before you close the books (p4.9)

  16. Clearing Apportionment Suspense(p4.10–4.13) • Financial Accounting posts principal apportionment PY recomputations & adjustments to suspense • Suspense must be cleared by year-end • Check prior year accrual. Difference must be charged to current year account.

  17. Clearing Apportionment Suspense(p4.10–4.13)

  18. 5 Section 5Closing Entries & Accruals

  19. A/R & A/P objects must be ZERO before you post for the current year: FD Res Obj DR CR xx xxxx 9202 9,750.64 xx xxxx 9201 9,750.64 FD Res Obj DR CR xx xxxx 9510 10,475.87 xx xxxx 9511 10,475.87 Research differences and determine if activity was charged to a current year object or write-off due to accrual estimate was different than actual. Close out PY C/L and A/R (p5.2)

  20. Expenses have to be accrued if goods or services were received by June 30 • Debit the expenditure account line & Credit 9510. • District will want to set a deadline to submit accruals • District might want to set a materiality limit Expenditure Accruals (p5.3 -5.4)

  21. Example B(p5.7) Unpaid invoices of $20,000 for merchandise or services received by June 30: Res Goal FuncObj DR CR Books & Sup xxxx xxxx xxxx 4000 6,000 Services xxxx xxxx xxxx 5000 4,000 Cap Outlay xxxx xxxx xxxx 6000 10,000 C/L xxxx 9510 20,000

  22. Income Accruals(p5.5–5.6) • Income earned in this fiscal year but not received by June 30 needs to be accrued • Can only accrue revenues that are collectible within one year • Some revenues are not accrued • Examples: property taxes, developer fees, mandated cost reimbursement & deferred maintenance

  23. Example(p5.7) Recalculate Revenue Limit using actual data and accrue the difference between recalculated state aid & receipts Fund Res Obj DR CR A/R 03 xxxx 9201 100,000 State Aid 03 xxxx 8011 100,00

  24. 6 Section 6 Payroll Accruals – 9910’s

  25. Payroll Accruals/9910’s Payroll Holding Accounts 9910-000 Payroll 9910-311 STRS 9910-312 STRS CB Plan 9910-321 PERS 9910-322 PERS EPMC 9910-331 Soc Security 9910-332 Medicare 9910-333 ARS 9910-340 H&W 9910-350 SUI 9910-360 W/C 9910-370 Retiree H&W 9910-371 OPEB Allocation 9910-375 OPEB Direct 9910-380 PERS Red 9910-390 Other Benefits

  26. Payroll Accruals/9910’s – SUI(p6.5) Step 1 - Current FY General Ledger - SUI expenses for quarter ending 6/30: FD Res Obj DR CR 06 xxxx 3501-000 2,000 06 xxxx 9910-350 2,000 Step 2 - District Journal Entry to set up Current FY accrual: Fund Res ObjDRCR 06 xxxx 9910-350 2,000 06 xxxx 9510 2,000

  27. Payroll Accruals/9910’s – SUI(p6.5) Step 3 - FA will post auditor’s transfer for quarter ending 6/30 to suspense in Subsequent FY: FD Res Obj DR CR 06 9999 7999 2,000 06 9999 9110 2,000 Step 4 - District Journal Entry to clear suspense accrual in the Subsequent FY: FD Res Obj DR CR 06 xxxx 9511 2,000 06 9999 7999 2,000

  28. Payroll Accruals • Same process for STRS & PERS • 9910-371 & 9910-375 OPEB accrual process is under Section 12 GASB

  29. 7 Section 7Direct/Indirect Costs

  30. Expenses that can be separately identified and charged as part of the costs of a program • Transfers of costs normally change the function of expenditures • Examples: Catering, print shop, transportation & field trips • 5710 must net to zero at the fund level • 5750 must net to zero between funds Direct Costs (p7.2-7.3)

  31. NCLB School Choice (intrafund): DR 06-00 3010 1110 3600 5710 Title I CR 06-00 7230 0000 3600 5710 Transportation Catering charges (interfund): DR 03-00 0000 0000 2140 5750 Professional Dev CR 13-00 5310 0000 3700 5750 Food Services Print shop (interfund): DR 12-06 xxxx 0001 xxxx 5750 CDC CR 03-00 0000 0000 7200 5750 Undistributed Admin. expenses to developer fees (interfund): DR 25-19 0000 0000 7200 5750 Developer Fees CR 03-00 0000 0000 7200 5750 Undistributed Direct Costs – Sample Entries (p7.2-7.3)

  32. Agencywide costs for general management that are not readily identifiable with a particular program but are necessary for the overall operation • Examples: Accounting, budgeting, payroll, personnel, purchasing & warehousing • TABS Workshop available on web cast at http://www.sdcoe.net/business2/dfs/?loc=materials&m=88 • Multiply expenditures in objects 1000 – 5999 less object 5100 by the approved indirect cost rate Indirect Costs (p7.5-7.11)

  33. Approved rates are posted at the CDE web site at: • http://www.cde.ca.gov/fg/ac/ic/ • In manual on p7.7 – 7.11 • Must use the lesser of the CDE approved rate or a grant stated max each year • 7310 must net to zero by function & object at the fund level • 7350 must net to zero by function & object between funds Indirect Costs (p7.5-7.11)

  34. Sample entry (intrafund): DR 06-00 3010 1110 7210 7310 TITLE I CR 03-00 0000 0000 7210 7310 GF Sample entry (interfund): DR 13-00 5310 0000 7210 7350 Food Services CR 03-00 0000 0000 7210 7350 GF Indirect Costs (p7.5-7.11)

  35. 8 Section 8Special Transfers

  36. Community Day School Transfer(p8.2) • Districts operating their own Community Day School must transfer the apportioned amount to resource 2430, object 8091 for regular ADA only • Expenditures are to be recorded in resource 2430, goal 3550 • EC 48660.2 requires at least 90% of expenditures must be spent on direct instructional & documented support costs

  37. Special Education Transfer(p8.2a) • This transfer represents the amount of the unrestricted revenue limit earned by a district that is attributable to ADA generated by special education students • It is calculated by adding together SDC P-2 ADA and NPS Annual ADA then multiplying the sum by the revenue limit rate without the add-ons • This is optional and districts whose special education program does not require an unrestricted contribution might opt to not transfer

  38. 50% Non-Revenue Limit Transfer(p8.3) • 50% of total in 8081 and 8082 is credited to 8691 and debited to 8089 • 8081 and 8082 are left intact • In the State software, the entry to 8089 is reflected as a negative (debit)

  39. PERS Reduction Transfer(p8.4–8.18) • In 1982-83 the PERS rate was reduced from 13.02 % to 12.045 % which would have meant a savings for the districts, but the state recaptured the savings by reducing the Revenue Limit • Spread this reduction by charging other programs • Usually posted via the payroll system as a variable benefit with a negative rate • The PERSRM processes automates the next step

  40. PERS Remove Process During the FY Payroll process will post the PERS Reduction during the FY: FD Res Obj DR CR xx xxxx 3802 800 xx xxxx 9910-380 800 PERSRM 03 will reverse the PERS Reduction: FD Res Obj DR CR xx xxxx 9910-380 800 xx xxxx 3802 800 PERSRM 04 will transfer the PERS Reduction: FD Res Obj DR CR xx xxxx 9910-380 800 xx xxxx 8092 800

  41. PERS Remove Process For Accruals(p8.12–8.14) When June time subject to PERS is entered via the payroll accrual screen this is the resulting posting in the CY: FD Res Obj DR CR 03 xxxx 3801 100 03 xxxx 3802 200 03 xxxx 9510 300

  42. PERS Remove Process For Accruals(p8.12–8.14) Because PERS is not a cash transaction clear the payable in the CY: FD Res Obj DR CR 03 xxxx 9510 300 03 xxxx 8092 300

  43. PERS Remove Process For Accruals(p8.12–8.14) In the SY, the payroll process will post: FD Res Obj DR CR 03 xxxx 9511 300 03 xxxx 9910-380 300 Reverse to clear the entry: FD Res Obj DR CR 03 xxxx 9910-380 300 03 xxxx 9511 300

  44. PERS Restoration • Reduces the PERS Reduction by the restoration factor - currently 38.62% changes every certification • If total PERS Reduction for all funds is $10,000 • Reduce the PERS Reduction (3801&2) in all programs charged • PERS Reduction restoration is $3,862 FD Res Obj DR CR xx xxxx 8092 3,862 xx xxxx 3801&2 3,862

  45. 9 Section 9 Categorical Programs

  46. Federal • State • Pass-Through Sources of Categorical Funding (p9.2)

  47. Grant (Deferred Revenue – D resources) • Entitlement (Fund Balance – F resources) • Difference is how revenue is recognized • See SACS Resource Code Query to find out which applies to each resource Grant or Entitlement? (p9.3–9.4)

  48. All flexible programs must be accounted for in Unrestricted General Fund in Object 8590 • Unless committed by Board action • See list of optional resource codes on page 9.7-9.8 • Transferring between flexible programs use object 8980 Categorical Program Flexibility (p9.5-9.8)