Year-EndClosing of the Books

FY 2014-15

Overview of ClosingWhy?

GAAP – Generally Accepted Accounting Principles End of the business cycle:

• State sessions end in June

• UO activity begins with summer session (excluding Law)

Federal (GASB) & State requirements• UO mandated deadlines in order to meet required State

deadlines

Snapshot in time• YTD activity (FWIBUDG) and year-end balances

(FGITBAL) are used to monitor, project, budget, evaluate performance, perform system audits, analyze anomalies, audit, compare and contrast with other years/funds/institutions etc…

Why?

Annual reporting – internal & external • Rolled into State of Oregon financial statements

• Used by stakeholders such as general public, federal agencies, HECC, federal F&A rate setters, accrediting agencies, NCAA, creditors and bond services, etc…

Auditors – internal & external• Test for accuracy, consistency, & reliability of

systems including our policies & procedures

• Help us establish best practices

• Includes: UO Internal Audit, DHHS, Naval Research, NCAA, Moss Adams (financial statement & A-133), Secretary of State, etc…

Overview of Closing

What?

Recording activity that takes place between:

July 1, 2014 and June 30, 2015

Transactions must be recorded in the fiscal year that the event takes place, regardless of when budget or cash is available

Includes accruals posted by July 22, 2015 Applies to all funds in FIS regardless of the source

Overview of Closing

What?

Close fiscal period 12 and open fiscal period 14• Fiscal period 12:

Record June and remaining FY15 activity

• Fiscal period 14: Review and post necessary corrections/accruals

Departments have first week

BAO/BRP/SPS have additional week

Close fiscal period 14 (FY15) CAFAR team extracts data and populates reporting system BAO collects all FY15 transactions through the date

financial statements are issued in November to report subsequent events

Overview of Closing

Balance Sheet Account Codes(FGITBAL – General Ledger)

A = AssetsB = LiabilitiesC = Control Accounts (Income Statement Totals)D = Fund BalanceE = Fund AdditionsF = Fund Deletions

When FP12 is closed and FP14 is opened, actual income/expense account balances from FY15 FP12 are closed into FY16 fund balance.

Income Statement/Balance Sheet

FWIBUDG FGITBAL

Income Statement Balance Sheet

Revenue 0XXXX C0010

Labor 1XXXX C2010

General Expense

2XXXX-8XXXX C1010

Transfers 9XXXX C5010

Fund Bal D0010

FY16 Beginning Balances Before period 14 is opened, FY16 balances

only include FY16 transactions

FY16 Beginning Balances When period 14 is opened, FY15 period

12 ending balances become FY16 beginning balances (recorded in period 00)

• Document type YEOB, numbered GLRL15XX

Then, each entry posted to FY15 during period 14 has a mirror entry in FY16 period 00

Subsidiary Ledgers Provide a greater amount of detailed

information FIS Examples – Student A/R, Grants Billing

Module, Fixed Asset System, Accounts Payable Complimentary (shadow) systems are often

used by departments as subsidiary ledgers (examples – QuickBooks, Excel, Access)

Subsidiary ledgers must be reconciled to Banner FIS

The FIS general ledger is the official source of financial information for the UO

Subsidiary LedgersGeneral ledger account codes require supporting detail schedules reconciled to Banner FIS. Commonly used accounts include:

Account Code

Account Code Title Account Code

Account Code Title

A3103 Misc Accounts Receivable B0190 Received Items Payable

A3106 Sundry Receivable B5120 Prepaid Tuition & Fees

A3702 AR from Affiliated Foundation B5802 Unearned Revenue

A4002 Organized Storeroom Inventories

B5817 Unredeemed Gift Cards/Certificates

A5019 Prepaid Services & Supplies B5801 Undistributed Revenue

A5020 Prepaid Travel B5901 Accrued Undistributed Income

A5021 Prepaid Subscriptions/Memberships

A5022 Prepaid Capital Assets

A5023 Prepaid Software Expenditures

A5030 Prepaid Miscellaneous Expense

A5901 Prepaid Expense Year End Accrual

Non-SIS Accounts Receivable

Each department must submit a detail and aging report of their non-SIS accounts by July 16th

These reports must be reconciled to Banner as of period 14 (generally use FGITBAL)

Includes all receivables from entities that are external to UO (including other former and current OUS entities)

Non-SIS Accounts Receivable

Account Code

Account Code Title

A3101 Misc Advances Receivable-Non SIS

A3103 Misc A/R

A3106 Sundry Receivable

A3109 NIBL-Non SIS

A3110 Travel Advance Receivable – Non-SIS

A3130 Restoration Fund Receivable

A3131 Catering Accounts Receivable

A3132 Setup/Tech Accounts Receivable

A3133 Child Care Accounts Receivable

A3134 USDA Accounts Receivable

A3135 Season Ticket Accounts Receivable

Non-SIS Accounts Receivable

University of OregonNon-Student Accounts Receivable Aging

Fiscal Year 2015Department:     Fund:     Acct Code:    

Prepared by:    Approved by:          

Date Submitted:                

Due Description of < 1 Year 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 YearsTotal*

From Charge FY15 FY14 FY13 FY12 FY11                  0                 0                 0                 0                 0                 0                 0                 0                 0                 0                 0                 0                 0                 0                 0                  

  Total 0 0 0 0 0 0 0

* Reconcile grand total to the General Ledger by fund and account

List indexes associated with this reconciliation:

Expenditure Cut-Off Guidelines

According to Generally Accepted Accounting Principles (GAAP), accrual accounting requires expenditures to be charged to the fiscal year and period in which goods are received or services are performed, regardless of when budget or cash is available.

For goods and services received by June 30 for which vendor invoices have not been received as of July 22, fill out an AP Report and forward it to BAO Financial Services.

http://ba.uoregon.edu/sites/ba/files/forms/yearendap.pdf

Prepaid Expense AccrualsPrepaid Expense:

Expenses for future fiscal years that are paid prior to June 30, 2015 should be

coded to a prepaid expense account code. Post a reversing journal voucher with a

transaction date in the future fiscal year and period that the goods or services will be

received. This journal voucher may be processed at the same time, if the future

period is open.

For amounts posted as expense in FY15, that should be prepaid expenses for future years:

Debit       Department Index            Prepaid Expense (A5013 – A5030)

Credit      Department Index            Expense Account Code

To remove the prepaid and recognize the expense in the future year:

Debit       Department Index            Expense Account Code

Credit      Department Index            Prepaid Expense (A5013 – A5030)

*** Tax reportable expenses must first be coded to an expense account code when processing an invoice.

Prepaid Expense Account Codes

Account Code Account Code Title

A5013 Prepaid Worker’s Comp Insurance

A5019 Prepaid Services & Supplies

A5020 Prepaid Travel

A5021 Prepaid Subscriptions/Memberships

A5022 Prepaid Capital Assets

A5023 Prepaid Software Expenditures

A5030 Prepaid Miscellaneous Expense

*** A5901 Misc Prepaid Expense Year-End Accrual is no longer used.

Unearned and Undistributed Revenue AccrualsUnearned Revenue - Payments received for goods or services which have not yet been

provided.

GAAP requires revenue be credited to the fiscal year that the goods or services will be provided.

Revenue for future fiscal years that is received prior to June 30, 2015 should be coded to an unearned

revenue account code. Post a reversing journal voucher with a transaction date in the future fiscal year

and period that the goods or services will be provided. This journal voucher may be processed at the

same time, if the future period is open. B5802 has been more clearly titled for this purpose.

Undistributed Revenue - Revenue earned for goods or services and not yet distributed.

Undistributed revenue should be cleared to zero by year-end close. B5801 has been more clearly

titled for this purpose.

Unearned Revenue Accruals

To deposit payment through TWADEPO when it is received:

Debit (CASH, CHEK, CARD, or BANK depending how revenue was received)

Credit (MISC) Department Index           Unearned Revenue Account Code (B5XXX)

To remove the unearned revenue and recognize revenue in the future year:

Debit       Department Index           Unearned Revenue Account Code (B5XXX)

Credit      Department Index           Revenue Account Code

Unearned & Undistributed Revenue Account Codes

Account Code Account Code Title

Unearned Revenue

B5120 Prepaid Tuition & Fees

B5802 Unearned Revenue

B5816 Athletics Prepaid Revenue

B5817 Unredeemed Gift Cards/Certificates

Undistributed Revenue

B5801 Undistributed Revenue

*** B5901 Accrued Undistributed Income is no longer used.

Dates to Remember:

June 5 June regular payroll deadline June 17 Contact BAO for help accruing department

non-student accounts receivable June 26 Last day to submit wire transfer to AP June 30 Last day to submit student receivables June 30 Last day to deposit cash by 3:00pm June 30 Goods and services must be received by this

date to pay with FY15 funds July 2 Last day to submit payroll form (PAA)

for FY15

**(Items input in July require a 30-JUN-2015 transaction date)**

Dates to Remember:

July 7 Last day to submit upload JVs for period 12 (Z documents through AppWorx)

July 8 Last day to liquidate encumbrances that shouldn’t roll to FY16

July 8 Last day to submit budget changes for period 12 July 8 Last day to input an invoice for period 12 July 8 Last day to input JVs for period 12 July 8 Period 12 Close (5:00pm) July 9 Period 12 reports are available

**(Items input in July require a 30-JUN-2015 transaction date)**

Dates to Remember:

July 15 Last day to input JVs for period 14 July 15 Last day to input budget changes for period 14

July 15 Last day to input an invoice for period 14 July 15 Campus lock-out (5:00pm)

For assistance with FY15 transactions after the lock-out, contact

BAO General Accounting.

**(Items input in July require a 30-JUN-2015 transaction date)**

Dates to Remember:

July 16 Detail and aging reports due for all non-SIS accounts

receivable July 22 Last day to submit year-end AP Reports July 22 Period 14 close (FY15) July 23 Period 14 reports are available

**(Items input in July require a 30-JUN-2015 transaction date)**

Dating FIS Documents

After June 30th, any document input for

FY15 must have the transaction

date changed to

30-JUN-2015

This includes:

Budget changes

Invoices

JVs

Travel reimbursements

Encumbrances

All open encumbrances (except zero balance items) will be rolled into FY16 Banner FIS operating ledger

Liquidate any encumbrances that you do not want to roll into FY16 before the close of period 12 (July 8th)

Late FY15 and Subsequent Event Reporting

Report FY15 activity and subsequent events to BAO Financial Services as follows:

July 16 to 22 – for posting into Banner FIS during lock-out

July 23 to August 31 – to be included in UO Financial Statements

September to October – late reporting

Reporting Property Not Owned by the UO

To provide required information for leased asset year-end reporting

To provide adequate insurance coverage

FWIFLST – Banner query form to review inventory records• Leased Property (Acquisition codes LE/LP)

• Loaned Property (Acquisition code LN)

Real Property

Performed in conjunction with BAO Property Control and Campus Planning, Design & Construction

Capitalization of construction in progress (CIP) expenses

Conversion of completed projects into the Banner FIS real property records

Componentization of specified buildings used extensively for research

FY15 Accomplishments Governance change

• First independent year-end closing

• First stand alone financial statements

• UO Internal Audit Department

• Independent Board of Trustees

• Moved banking to US Bank

• Separate tax identification number

UO’s first bond sale Facilities and administrative rate proposal

submitted Additional Cognos IDR reporting available

Looking ahead to FY16

Creating a University of Oregon account code reference webpage to replace the OUS version

Continuing modification of the UO Chart of Accounts

Continuing to update adopted policies

BAO Financial Services Business Affairs -

http://ba.uoregon.edu/nosidebar/contacts

General Accounting, CAFAR, and Property Control – http://ba.uoregon.edu/staff/actg-and-finl-mgmt-contacts

Travel (6-3158) - http://ba.uoregon.edu/staff/travel-office-contacts

Accounts Payable (6-3143) - http://ba.uoregon.edu/staff/ap-invoice-payment

Useful Links

Year End COB Instructions and Deadlines FY15http://ba.uoregon.edu/staff/year-end-close

UO Financial Statements http://ba.uoregon.edu/staff/financial-reports

Closing Remarks