Year-End Departmental Instructions FY17

Year-End Departmental Instructions FY17

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Please make every effort to post transactions for June to period 12 before we close period 12 on July 11th at 5:00 p.m. To allow time for transactions to clear approval queues, be sure to post all transactions before 3:00 p.m.

Cash Receipts

All cash receipts must be at the Cashiers Office by 3:00pm on June 30, for inclusion in the FY17 accounting records. Deposit all cash receipts in a timely manner. Please try to avoid accumulating receipts for a final deposit.

Off campus locations, after making the final deposits at the bank, must provide detail receipt information, including the final deposit information, to the Cashiers Office (by fax at 541-346-3137) by 3:00pm on June 30.

If you have questions please call the Cashiers Office at 6-3154.

Department Deposit in Transit

For payments you have received but cannot deposit before the Cashiers' Office month and year end deadlines, please use the following procedures to record a deposit in transit (A0951).

To record the deposit in transit by JV in the month the payment was received:

Debit Department Index A0951 Cash-Department Deposit In Transit

Credit Department Index Revenue, Unearned Revenue, AR, etc.

To make the physical deposit with UO Cashiers using Banner form TWADEPO the next month:

Debit CASH, CHEK, BANK, or CARD depending how the payment was received

Credit Department Index A0951 Cash-Department Deposit In Transit

Please note that this account code and procedure should only be used to record payments that you have received but are unable to deposit with UO Cashiers by month end. Established cash handling procedures must be followed as indicated in the cash handling and departmental deposits section.

Account Reconciliations

The University of Oregon is required to generate supporting detail and account reconciliations for asset and liability accounts to support year end balances. If your department has made any entries to any general ledger account codes, those that begin with the letters A or B, there should be a listing of those transactions kept in your department to support the balance as of June 30, 2017. Below is a list of commonly used general ledger account codes requiring detailed back-up and reconciliations. This list does not include all account codes that need back-up and reconciliation.

A3103 Misc Accounts Receivable
A3106 Sundry Receivable
A3702 AR from Affiliated Foundation
A4002 Organized Storeroom Inventories
A5019 Prepaid Services & Supplies
B0101 Year End A/P Accrual
B0190 Received Items Payable
A5020 Prepaid Travel
A5021 Prepaid Subscriptions/Memberships
A5022 Prepaid Capital Assets
A5023 Prepaid Software Expenditures
A5030 Prepaid Miscellaneous Expense
B5120 Prepaid Tuition & Fees
B5802 Unearned Revenue
B5817 Unredeemed Gift Cards/Certificates
B5801 Undistributed Revenue

 

Accounts Receivable

Departments that sell products or provide services should post revenue on an accrual basis. According to GAAP, accrual accounting requires revenue be recognized when the product is delivered or the services are provided, not when the cash is received. Departments should accrue amounts owed to them at year-end by customers external to UO.

To record revenue and receivable in FY17, with a transaction date of 30-JUN-2017 or earlier:

Debit Department Index A3103 - Misc A/R
Credit Department Index Revenue Account Code

To record the reversal in FY18 deposit the payment utilizing TWADEPO:

Debit (CASH, CHEK, CARD, or Bank depending how payment was received)
Credit (MISC) Department Index A3103 - Misc A/R

We encourage entries be made before the close of period 12 on July 11th at 5:00pm.

*** It is important that receivable amounts for FY17 are reviewed for accuracy. To review account A3103 or any other general ledger accounts, use FGITBAL/FGIGLAC. Additional requirements at year-end include analysis of accounts for uncollectable amounts, and preparation of a detailed accounts receivable aging list reconciled to the general ledger.

Additional resources are available at https://ba.uoregon.edu/staff/accounts-receivable-non-student.

If you have any questions please contact Financial Services at 6-1115.

Receivables from the UO Foundation

Following are the conditions that must be met before a UO Department can accrue a receivable from the UO Foundation (OUF):

  1. The university had incurred expenses in the fiscal year that met the restrictions that donors to the university foundation placed on their donations.
  2. The amount to be accrued was on hand (in the form of cash, cash equivalents, and/or short-term investments) in the appropriate fund at the university foundation at the close of the fiscal year.
  3. The university had requested reimbursement of said expenses in a timely fashion (before fiscal year-end close of period 14).
  4. The monies requested are actually received by the university in a timely fashion.

Transfer requests sent to the UOF after June 22 at 5:00pm but before period 14 departmental lock-out on July 18th may be accrued at the UO with the following entries:

To record revenue and receivable in FY17:

Debit Department Fund A3702- AR from Affiliated Foundation
Credit Department Index 03651 - Campus Affiliated Foundation Gift

To record the reversal in FY18:

Debit Department Index 03651 - Campus Affiliated Foundation Gift
Credit Department Fund A3702- AR from Affiliated Foundation

Please forward copies of these requests to Phil Davis in BAO Financial Services at pdavis@uoregon.edu.

Purchase Orders

Expenditures must be charged to the fiscal year and period in which goods are received or services are performed.

Banner purchase orders for goods and services that will be received in FY18 must be dated in FY18 (i.e. dated 7/1/17 or after). A general encumbrance may be entered in FY17 if it is necessary to have the FY18 purchase encumbered. The FY17 general encumbrance will need to be liquidated after it rolls, as the purchase order's encumbrance already will be included in FY18.

If orders for goods and services will be received in FY18, but payment must occur in FY17 (example maintenance contract), use the current date on the Banner purchase order and use the appropriate prepaid expense account code. See procedures for Prepaid Expense if the goods or services are tax reportable and for the FY18 reversing entry.

Purchase Order and General Encumbrances

The Business Affairs Office will roll purchase order and general encumbrances on all funds from fiscal year 17 to fiscal year 18 at the close of period 12.

The Business Affairs Office will identify all outstanding encumbrances that have not had any activity for one year. We will ask departments if they want them rolled or not. If the department does not want the encumbrance rolled then they will have to perform the liquidation prior to the close of period 12 on July 11.

Do not liquidate a rolled encumbrance in period 14. If you do not want an encumbrance in a fund to roll, perform a liquidation in period 12. If you want to liquidate an encumbrance that has rolled, perform the liquidation in period 01 of the new fiscal year.

Contact Financial Services at 6-3032 with any questions.

Journal Vouchers

The last day to input Journal Vouchers for period 12 is July 11 and the last day to input Journal Vouchers for period 14 is July 18. To clear period 12 or 14 the item must have a June transaction date.

Contact Financial Services at 6-3524 with any questions, or if you need to do a JV after July 18. Up until November 1st, please notify Financial Services if there is a journal voucher that is entered into fiscal year 18 that should have been in fiscal year 17.

Invoices

Expenditures must be charged to the fiscal year in which goods are received or services are performed. The last day to input invoices that need to be included in the 16-17 accounting records is 5:00pm on July 18. A June transaction date must be used. (Note the last day to input an invoice for period 12 is July 11).

For goods and services received by June 30 for which invoices have not been received as of July 18, fill out an Accounts Payable Report (See Accounts Payable). Up until November 1st, please notify Accounts Payable if there is an invoice that is entered into fiscal year 18 that should have been in fiscal year 17.

If you have questions please call Accounts Payable at 6-3143.

Accounts Payable

A/P reports are required for all department funds that have received services or supplies by June 30, but payment cannot be made by July 18. This includes services or supplies that have not yet been invoiced by the vendor.

The following list serves as a reminder for special things to look for when processing your accounts payable:

  • Do not accrue telephone charges.

  • Motor Pool charges need not be reported because they will clear before the year-end

  • If the charge has not cleared as of Period 12 and the travel began by June 30, 2017, report it as an outstanding item. Report the net amount for which you expect the charge to clear (i.e., subtract the expected credit from the expected charge).

Click here to get a form, return forms c/o BAO Accounting.

If you have questions call Accounts Payable at 6-3143.

Dating FIS Documents

When entering FIS documents you want to post in the 16-17 fiscal year use the following guidelines:

If document is entered by June 30, enter as you normally would, with system-defaulted transaction date. (Remember: any check processed AFTER June 30 will liquidate the invoice payable and credit cash in FY 18.)

If document is entered between July 1 and July 18, change the Transaction Date to June 30. (Remember: FIS will default the current date as the transaction date.) Enter everything else normally. Banner will post the expense and automatically accrue the payable in FY 2017. The check itself will be written from FY18 and liquidate the payable.

If you are unable to enter the invoice by July 18, submit an Accounts Payable report to Financial Services.

Click here to get a form. Return forms c/o BAO Accounting.

If you have questions call Financial Services at 6-3524.

Travel

Travel reimbursements for travel incurred through June 30 must be included in the 16-17 accounting records. The reimbursement requests (invoices) must be completed and sent to Travel by 3:00pm on July 11 to clear period 12. Reimbursements can also be processed for period 14 if the travel reimbursements are received by July 18 in Travel. Airfare to be included in 16-17 accounting records must be purchased through contract agencies by May 25 or on a departmental procurement card by June 24.

Contact Travel at 6-3158 with any questions.

Prepaid Expense

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.

Expenses of $5,000 or more for goods or services that will be received in a future fiscal year should be allocated to the appropriate prepaid expense account code. To remove the prepaid and recognize the expense, post a reversing journal voucher with a transaction date in the fiscal year and period that the goods or services are to be provided. This journal voucher may be processed ahead of time if the future period is open. Purchases of less than $5,000 are not amortized over future fiscal years; they are expensed in the current fiscal year.

Tax reportable expenses must first be coded to an expense account code when processing an invoice. For a list of 1099 tax reportable account codes, please see the following website: UO Fiscal Policy Manual Website

For amounts posted as expense that should be prepaid expenses for future periods or fiscal years:

Debit Department Index Prepaid Expense Account Code
Credit Department Index Expense Account Code

To remove the prepaid and recognize the expense in a future period or fiscal year:

Debit Department Index Expense Account Code
Credit Department Index Prepaid Expense Account Code

We encourage entries be made before the close of period 12 on July 11th at 5:00pm.

*** It is important that prepaid amounts for FY17 are reversed prior to year-end. To review prepaid expense account codes or any other general ledger accounts, use FGITBAL/FGIGLAC. Some prepaid expenses, such as airfare for travel, may be initiated outside of your department.

Common prepaid expense account codes:

A5019 - Prepaid Services & Supplies
A5020 - Prepaid Travel
A5021 - Prepaid Subsciptions/Memberships
A5022 - Prepaid Capital Assets
A5023 - Prepaid Software Expenditures
A5030 - Prepaid Misc Expense

If you have any questions please contact Financial Services at 6-3524.

Unearned/Undistributed Revenue

Unearned Revenue According to GAAP, accrual accounting requires revenue be recognized in the fiscal year and period in which the goods or the service are provided. Unearned revenue is recorded for payments received for goods or services which have not yet been provided. A journal voucher needs to be processed in the future period or year that the goods or services are to be provided.

To deposit payment through TWADEPO when it is received:

Debit (CASH, CHEK, CARD, or BANK depending how payment was received)
Credit (MISC) Department Index Unearned Revenue Account Code

To recognize the revenue in a future period or fiscal year:

Debit Department Index Unearned Revenue Account Code
Credit Department Index Revenue Account Code

Undistributed Revenue - Revenue earned for goods or services that is accumulated in the liability account code B5801 until distributed as revenue.

Common unearned/undistributed revenue account codes:

Unearned Revenue:
B5120 - Prepaid Tuition & Fees
B5802 - Unearned Revenue
B5817 - Unredeemed Gift Cards/Certificates

Undistributed Revenue:
B5801 - Undistributed Revenue

If you have any questions please contact Financial Services at 6-1256.

Items Received in FY17 but Accidentally Posted to FY18

Occasionally, an expense is mistakenly entered into Banner in fiscal year 2018 that was actually received before June 30. The expense is in the wrong fiscal year and needs to be moved to the prior fiscal year with two journal vouchers. The first journal voucher needs to be processed in period 12 or 14 of the old fiscal year to record the expense and a liability. The second journal voucher processed in period 01 of the new fiscal year and reverses the first one to remove the liability and net the expense against the invoice.

The liability account code is a general ledger code and will appear on the Banner form FGITBAL. It will not appear on FGIBDST or FWIBUDG.
The following is the liability account code that should be used B0190 Received Items Payable

To record expenditure as items payable in FY17:

Debit Department Index Expense Account Code ex. 24505 Performance Fees
Credit Department Fund B0190- Received Items Payable

To record the reversal in FY18:

Debit Department Fund B0190- Received Items Payable
Credit Department Index Expense Account Code ex. 24505 Performance Fees

All accrual entries must be processed by July 18, 2017. If you have any questions please contact Financial Services at 6-1256.

Funds with Negative Balances

Funds may not have negative fund balances at June 30. The necessary entries to resolve any negative balances must be recorded in the 16-17 accounting records by 5:00pm July 18 using a June 30 transaction date.

Determine the Fund Balance as of June 30 by using the online form FGITBAL for period 14. This will give you your current fund balance. A credit balance is positive. If the balance is a debit balance it is negative. Other departmental funds will have to be used to cover the deficit. If you have fund balances that remain negative as of June 30 someone in the Business Office may contact you.

If you have any questions about how to process a JV to eliminate a negative fund balance call Financial Services at 6-1256.

Inactive Funds

As part of year-end closing procedures the Business Office is required to identify and eliminate as many inactive funds as possible for termination. Departments are encouraged to notify the Business Office of any known inactive funds that can be terminated.

Please call Financial Services at 6-1115.

Clearing Funds (095XXX)

At year-end, no balances should remain in any operating ledger accounts or any general ledger accounts, except account codes B0100 and B0103 (see below for explanation), of departmental clearing funds.

If you are in charge of clearing a departmental clearing fund please make every attempt to clear all clearing fund by the close of period 12 July 11. If that is not possible the deadline to clear the fund is July 18. Process a journal voucher using a June 30 transaction date. In many cases these entries need to be reversed as of July 1 in the new fiscal year.

Clearing fund account code B0100 Invoices Payable account balances are left alone. A clearing entry is posted using account code B0103 Invoices Payable-Clrng Fund Reclass so that the sum of the two account code balances net to zero in the clearing fund.

Call Financial Services at 6-1115 if you have any questions.

Payroll Adjustments

July 7 is the last day to submit completed Payroll Accounting Adjustment (PAA) forms for HRIS pay that departments wish to adjust and post to Fiscal Year 16-17 Period 12. This is accomplished by specifying a posting override date of June 30, 2017.

July 14 is the last day to submit completed Payroll Accounting Adjustment (PAA) forms for HRIS pay that departments wish to adjust and post to Fiscal Year 16-17 Period 14. These forms will not be processed without written justification and an authorization from the Dean, Director, or Department Head to post to the current date in FY 16-17.

Departments with access to PHAREDS can adjust pay on their own using the posting override date of June 30, 2017 if they wish to post to FY 16-17. Adjustments completed by departments are subject to the July 7 deadline. PHAREDS adjustments completed through disposition 60 using a June 30, 2017 posting date will post to FY 16-17 if they are completed by close of business July 10, 2017. Departmental access to PHAREDS will be removed at the close of business on July 10, 2017. Departmental access to PHAREDS will be reinstated once FY17 is closed.