The University of Montana

1. The University of Montana FYE 2013 Briefing May 21, 2013 Business Services

2. Agenda Introductions Office for Planning, Budgeting & Analysis (OPBA) Payroll processing Schedule/Highlights Payroll Redistribution Dates Campus Cutoff Schedule Feed File Schedule Procedure Highlights Break JV Reminders Tips & Tools for Monitoring Balances

3. Business Services Contact List Accounting Services Dan Jenko, Assistant Director Ext 5530 Tara Scott, Financial Manager Ext 5802 Melissa Reimann, Accountant/Capital Assets Ext 6628 Luanne Felstet, Accountant Ext 2499 Barb Bybee, Accountant Ext 6261 Kristin Reynolds, Accountant Ext 5356 Accounting Services Fax # Ext 4929 Accounts Payable/Procurement Kay Lamphiear, A/P Manager Ext 4935 Ian Robbins, Director of Procurement Ext 2204 Systems Scott Klanecky, Finance Systems Manager Ext 5558 Frank Grady, Banner Finance Production Manager Ext 5464 Treasury Services Katie Dalessio, Treasury Manager Ext 6054 Management John McCormick, Interim Director Ext 2532

4. OPBA Contact List • Dawn Ressel, Associate VP for University Planning, Budgeting and Analysis dawn.ressel@umontana.edu Ext. 5661 • Ed Wingard, Budget Director ed.wingard@umontana.edu Ext. 4775 • Debbie Morlock, Budget Analyst debbie.morlock@umontana.edu Ext. 4791 • Pope Ashworth, Interim Budget Analyst pope.ashworth@umontana.edu Ext. 5661 • Kim Rudolph, Budget Analyst kim.rudolph@umontana.edu Ext. 5647

5. General Funds • Negative available balances • Negative personnel services balances • Transfers must be budgeted • Correct negative balances by submitting a budget change or moving expenses out to another Index Code or Fund (if appropriate) *(Remember to consider benefits when correcting negative personnel balances.) Reports to use to monitor results: • UMDW Operating Statements #1 or #2 • UMDW Payroll Reports #6 or #7

8. General Funds • Negative available balances • Negative personnel services balances • Transfers must be budgeted • Correct negative balances by submitting a budget change or moving expenses out to another Index Code or Fund (if appropriate) *(Remember to consider benefits when correcting negative personnel balances.) Reports to use to monitor results: • UMDW Operating Statements #1 or #2 • UMDW Payroll Reports #6 or #7

10. General Funds • Negative available balances • Negative personnel services balances • Transfers must be budgeted • Correct negative balances by submitting a budget change or moving expenses out to another Index Code or Fund (if appropriate) *(Remember to consider benefits when correcting negative personnel balances.) Reports to use to monitor results: • UMDW Operating Statements #1 or #2 • UMDW Payroll Reports #6 or #7

11. Designated/Auxiliary • Negative fund balances • Consider impact of year end results on FY14 plans and budgets – submit a plan amendment if necessary • Expense should not significantly exceed the FY13 fiscal year budget • Submit budget changes as needed Report to use to monitor results: • UMDW Operating Statement #7 (shows current fund balance)

12. General Funds/Designated/Auxiliary • 6/14/13 (Friday) – Last day to submit routine budget changes *Remember RBC’s need to be signed by your Vice President

13. Fiscal Year End - Payroll For questions please contact: Shelley Hiniker: 243-6634 Shelley.Hiniker@umontana.edu Andrea Sheuering: 243-5199 Andrea.Scheuering@umontana.edu *For Redistributions please contact your Fund or Grant Accountant.

14. BW & MO Payroll BW 14 online entry GTO is open June 21 to June 25 Do not send RPT’s with the Monthly rosters Submit RPT’s by June 14th if you would like them to display on the BW 14 GTO BW 14 will post July 3rd BW 13, BW 14 & MO 7 Health Insurance will be FY2014 expense - $806.00/month Six days of BW 15 will be accrued for FY13 (at a high level) BW 15 will expense in total at the department level for FY14 MO 7 will Post June 30th New Rate Changes for FY2014: Unemployment .45% PERS 8.17% TRS 10.85 TIAA-CREF 10.676

15. SP Payroll SP 13 will open June 19th and will close at 5:00 p.m. on June 21st SP 14 – pay cycle from June 19 – July 1 will pay on July 15th – this will be an FY14 department level expense SP 14 - These costs will be accrued at a high level through Business Services for FY13

16. Payroll - Miscellaneous Redistribution Schedule – Business Services will distribute the schedule Redistributions into State/General fund indexes from other funding sources (such as designated, auxiliary etc.) will be reviewed by the Office of Planning, Budget and Analysis. Sufficient budget authority, for both wages and benefits, must be in place for these to occur. Manual Checks – due to the Fiscal Year End Cash Closing process – there will be no manual checks processed from June 25th to July 1.

17. Payroll Processing

18. FYE Payroll Redistributions Procedures & form Payroll Redistributions are for corrections to the funding sources. These cannot be processed using a journal voucher. Deadlines 90 Day Rule – If you are processing a redistribution that has a history date of greater than 90 days you must include an exception memo which will be approved by the Director of Business Services or his assignee. Grants and Contracts must adhere to ORSP policy and procedures. BW14 Timing Issues Review your GTO reports carefully upon completion. If there is an error – contact your HRA immediately before it completes. For FY13 this would be 2:00 pm 6/27/13.

19. Payroll Redistribution Formhttp://www.umt.edu/bussrvcs/Employees/Forms.aspx

20. Payroll Redistribution Deadlines Deadlines to have requests to Business Services… 6/7/13 – May (due by 3:00 PM) 7/3/13 – June (due by 12:00 PM) Payroll Redistributions for BW14 will not be allowed Reminder: all requests for redistribution need to be processed through your Fund Accountant or your Grant Accountant, not through the Payroll Office

21. FYE 13 Websitehttp://www.umt.edu/bussrvcs/Employees/Procedures/Accounting/Fiscal%20Year%20End.aspx

22. Campus Cutoff Schedulehttp://www.umt.edu/bussrvcs/Employees/Procedures/Accounting/Fiscal%20Year%20End.aspx

23. Feed File Schedule Due by July 10th at 3:00 PM Facilities Services (work orders and postage) Network port charges Fixed phone charges Long distance charges UC Admin charges Dining Services invoices

24. Accounts Payable Critical Dates • June 14Procard purchases for FY13 should be completed to ensure FY13 posting. • June14 Warrant Cancellations to AP. • June 26 5:00 Normal Check Run – checks to be issued and mailed June 27. • June 28 5:00Procard Redistribution for June • (Cycle 12 - thru 6/21). • July 1 All travel, entertainment, check requests & Costco receipts need to be sent to A/P for FY13 processing.

25. A/P Critical Dates(CONT.) July 3 5:00 A/P check run. Checks to be issued and mailed July 5. July 8 5:00 Second Procard Redistribution for June (Cycle 13 – 6/22 thru 6/30) (Use feed date of 6/29) July 10 5:00 Final AP check run for FY13. Checks to be issued and mailed July 11. July 12 12:00Direct pay and Non PO invoice processing for FY13 ENDS. Invoices must be completed and approved prior to 12:00. July 15 FY14 Opens – Reminder: NO FY14 invoices can be processed until now. Reminder: July 1-12 use transaction date of 6/30/13 in both GrizMart and Banner for FY13 processing.

26. Other Critical Dates • 7/12 FY13 Period 12 closes at 5:00 PM • 7/13 “GL Roll” • 7/15 Period 12 Reports available thru • UMDW

27. FY14 • July 15 • Invoice Processing Resumes • Journal Voucher Entry • Reverse Entries • Automated, prior to July Month End closing • Pre-Pay and Deferred Revenue, prior to July Month End closing

28. Accounting Procedure Updates • Prepaid Expenses • Miscellaneous Accounts Receivable • Deferred Revenue • Accrued Expenses

29. Prepaid Expenses Definitions: Prepaid expenses are items over $500.00 that are paid during the current fiscal year, but are an actual cost for the next fiscal year. All items or services must be received or provided after June 30, 2013 to be considered a prepaid expense. These expenses are recognized as an asset (prepaid) in the current fiscal year and as an expense in the next fiscal year. This process is not applicable to Grants.

30. Prepaid Expenses Examples of Prepaid Expenses: Prepaid service contracts or software licenses for next fiscal year (these can be split between 2 years) Subscriptions or membership fees for next fiscal year (these can be split between 2 years) Expenditure transactions which are matched to deferred revenue (ie: summer session revenue)

31. Prepaid Checklist

32. Prepaid Expenses(Continued) Updates/Reminders: *REMEMBER* - use the activity code PREPAY in GrizMart for non-PO payments or requisitions *REMEMBER* - you can code ProCard / Request and Authorization for Travel (RAT) charges directly to Prepaid account 1905 Make sure to get supporting documentation to Barb Bybee (ext 6261) before noon on Friday, 7/12/13 Review procedure: Prepaid Procedures http://www.umt.edu/bussrvcs/Employees/Procedures/Accounting/Fiscal%20Year%20End.aspx http://www.umt.edu/grizmart/GrizMart%20FAQs.php#FAQ31

33. Miscellaneous Receivables The University does not record all accounts receivable in its centralized accounts receivable system, this information must be provided to Business Services. It is the department’s responsibility to report the correct receivables and maintain and forward to Business Services the backup support for the receivables reported. This applies to receivables that are not recorded in Banner and are owed by off-campus entities.

34. Miscellaneous Receivables(Continued) Updates/Reminders: No procedure changes from last year Individual receivables greater than or equal to $25,000 require dean or director approval Make sure to get supporting documentation in to Kristin Reynolds by noon Friday, 7/5/13 Review procedure: Miscellaneous Accounts Receivable http://www.umt.edu/bussrvcs/Employees/Procedures/Accounting/Fiscal%20Year%20End.aspx

35. Deferred Revenue DEFINITION: Deferred revenue is revenue collected in the current fiscal year for services provided in the next fiscal year. This revenue is reported as a liability on the current year’s balance sheet and as revenue in the next fiscal year. Departments that record deferred revenue include, but are not limited to: Continuing Education Bio Station Dining Services Athletics Campus Recreation Residence Life *Note: Summer session tuition and fees collected prior to July 1st are also recorded as deferred revenue per Montana University System policy.

36. Deferred Revenue(continued) Procedures: Banner Online Departmental Deposit Form Preparation For ease of processing deposits, please use a separate deposit card for deferred revenue transactions Deferred revenue must be recorded with an activity code. Find the current activity code list on the link below. Please contact your Fund Accountant if a new activity code needs to be established. The activity code is the revenue account code with the ‘5’ replaced by an ‘R’ (ie; 50404 – Campus Recreation Trip Fee income activity code would be R0404) Balance Sheet account number is 2505 – Deferred Revenue http://www2.umt.edu/bussrvcs/fye/fye13/Deferred Rev Activity Codes 2013.xls

37. Deferred Revenue(Continued) Updates/Reminders: No procedure changes from last year Deadline follows cash receipt cards (6/28/13) Be sure to send backup to Luanne Felstet (ext 2499) and contact her with any questions Review procedure and forms: Deferred Revenue http://www.umt.edu/bussrvcs/Employees/Procedures/Accounting/Fiscal%20Year%20End.aspx

38. Expenditure Accruals Expenditures must be recognized in the accounting year incurred, which creates the necessity for recording expenditure accruals for valid obligations incurred but unpaid as of the end of the fiscal year. Departments must submit requests for expenditure accruals to Business Services on or before the date posted on the Fiscal Year End Critical Cutoff The following information along with the backup documentation must be provided to Business Services: Identify type of accrual – ‘A’ accrual or ‘B’ accrual Explanation and supporting documentation Identify vendor (if vendor is another state agency, special accrual accounting is required) Department contact person and phone number

39. Expenditure Accruals(Continued) • “A” Accruals • These are for State Funds Only • For Valid open orders of goods/services received After June 30th • “B” Accruals • These are for All Funds including State Funds • Valid open orders on goods/services received on or Before June 30th, but have not yet been paid. Note:Accruals over $25,000 must include backup documentation and will need approval by the Director of Business Services.

40. Expenditure Accruals(Continued) Updates/Reminders: Only items $500.00 or more will be accrued Remember * An accrual may be necessary for Procard purchases made during the last days of June (after 6/21/13) if the vendor does not process them in a timely manner Make sure to get supporting documentation in to Tara Scott (ext 5802) before 4pm on Thursday, 7/11/13 Review online accrual procedures http://www.umt.edu/bussrvcs/Employees/Procedures/Accounting/Fiscal%20Year%20End.aspx

41. Decision Trees Deferred Revenue • Have I collected funds for activities that will occur on or after July 1, 2013? • If yes—when completing the deposit card, use account code 2505 with the activity codes established for deferred revenue. The activity codes are listed on the Business Services web-site.

42. Decision Trees(Continued) Prepaid Expenses • Am I paying for goods or services prior to 6/30/2013 that are >$500 and relate to next year? ie. Paying for maintenance agreement in June for FY14. Is this a non-PO payment or requisition Am I submitting a RAT or using through GrizMart? my ProCard? If yes—when initiating the purchase in If yes – use account code 1905 and GrizMart use expense code and provide back-up to Barb Bybee in activity code PREPAY. Business Services.

43. Decision Trees(Continued) A-Accruals • Will I receive goods or services AFTER 6/30/2013, that will be paid after 6/30/2013, from a State fund and are > $500? • If yes—notify Tara Scott in accounting by sending either a Purchase Order copy or a signed contract that has been initiated by 6/30/2013.

44. Decision Trees(Continued) B-Accruals • Have I received goods or services BEFORE 6/30/2013 that will be paid after 6/30/2013 and invoice is > $500? • If yes—Notify Tara Scott in accounting by sending either an invoice, packing slip or a signed contract.

45. Decision Trees(Continued) Miscellaneous Accounts Receivable • Have I provided goods or services prior to 6/30/2013, but have not received payment by 6/30/2013 and have not recorded the receivable in Banner? • If all of above conditions are met—complete the form on the Business Services website for Miscellaneous Receivables. Send the completed form to Kristin Reynolds. With the form, send an invoice or statement as supporting documentation. For amounts > $25,000 have your Dean or Director sign the form.

46. 10 MIN BREAK

47. UM FOUNDATION Fiscal Year End Procedures for UM Foundation • Payments to UM • Withdrawal Requests to Foundation Offices by June 24thfor last ACH payment on the 28th • NO advances to index codes - transfer has to be for actual expenses incurred • Exception will be made for reimbursements for June payroll expense. Expense will be an advance and will need to be cleared with June Banner report as soon as June payroll is processed • All other fiscal year 2013 expenses • Withdrawal requests to Foundation Offices by July 19th • Clear outstanding advances by June 28 • Any outstanding advance over the fiscal year-end needs an explanation as to why it’s still outstanding • Exception for June payroll reimbursements. Expense will be cleared in fiscal year 2013 with June Banner report • Questions • Contact Jamie Stanton at 4788

48. Helpful Tips • Enter JVs that post within your department (JD1 & JD2) • This will help with faster processing • Please reference the Banner document number in your JV document text • Please monitor all deadlines and notify Business Services right away if unable to meet a deadline • Please monitor your accounts and get your requests in to the Foundation for Gift accounts by June 24th • Contact the appropriate service area with questions (Accounts Payable, Purchasing, Accounting, Systems) • Dates on JV’s are critical; Please specify which FY you would like to post. • Please print name and phone extension on JV’s you send over to Business Services.

49. Tools for Monitoring FYE Activity Banner Finance JGIBDST – Org Budget Status FGITBSR – Trial Balance Summary UMDW Operating Statement Trial Balance Payroll UMDW Contact: Business Services Systems Mike Leary Ext 4191

50. Banner JGIBDST Enter Index, Fund or Orgn and FY on Banner form JGIBDST Banner nets total revenues less total expenses