Network & Learn Year End Closing Session

1. Network & Learn Year End Closing Session Chris Sherbesman, Director of Budget & Finance Virginia Moore, Interim Director of Accounting Services

2. Provides overall financial leadership for the campus • Prepares/manages/monitors university’s $180 million budget and fee schedules • Coordinates and develops financial reports for both internal and external entities • Manages salary budget • Manages fiscal year openings and closings • Campus reserve funds (fund balance; R&R) • Debt service monitoring and bonded projects • Auxiliary financials • Process documents (TV’s, Budget Revisions and Journal Entries) • Provides customer service and communications What Does Your Budget & Finance Office Do?

3. ACCOUNTS PAYABLE AND TRAVEL: • Enters standard invoices and purchase order invoices sent to our acctserv@utc.edu email • Audits and approves all invoices entered by the department, such as: Miscellaneous Reimbursements, Moving Allowances, Contract Invoices, and T-27 Request for Special Payment. • Audits and approves Travel Expenses, Prepaid Conference Registration, Travel Advances and issues Travel Authorization (TA) for Direct Bill of Airfare and/or Car Rental • Processes Transfer Vouchers for departmental accounts such as E, I, R, and N accounts. What Does Your Accounting Services Office Do?

4. SPONSORED PROJECT ACCOUNTING (GRANTS AND CONTRACTS): • Fiscal set up & review of Grant accounts/expenditures/invoicing- $35 million budget • Coordinates and develops financial reports for both internal and external entities • Process documents (TV’s, Budget Revisions and Journal Entries) • Provides customer service and communications • TRAINING: • IRIS On-Board Training for new IRIS users • Accounts Payable and Travel Entry • Vendor Setup • Ledger Reading and Reconciliation Training • Grant and Contract Fiscal Management/Budget Training What Does Your Accounting Services Office Do?

5. Current Unrestricted Funds: • Assets, Liabilities and Fund Balances (A & B-Accounts) • Income (I-Accounts) • Expense (E-Accounts) • Current Restricted Funds • Grants, Gifts and Endowments (R-Accounts) • Unexpended Plant Funds (J-Accounts) • Retirement of Indebtedness Funds (K-Accounts) • Renewal and Replacement Funds (K-Accounts) • Agency Funds (N-Accounts) Common Types of University Funds

6. An important step to balancing your budget at year end is consistent monthly reconciliation of all account ledgers, including: E , R and I accounts • Electronic Ledger Reconciliation now available! • During the Month • Create a file folder for each account you reconcile (either Hard Copy or Electronic) • During the month place the following items in the account folder • each time you process an invoice place a copy into the account folder or scan it for electronic reconciliation upload. • the detail check register payroll verification reports • transfer vouchers processed for the account • copy of deposits made through bursars office • copy of purchase order, travel request etc., (anything that creates encumbrances) Balancing Your Budget vs Expenditure

7. An important step to balancing your budget at year end is consistent monthly reconciliation of all account ledgers, including: E , R and I accounts • Verify charges on each account; matching payroll and invoices to charges; transferring any posting errors before year end. • Transferring charges may include; pay funding changes, ZCAT time entry correction, paper transfer voucher processing (Remember Salary CANNOT be moved by paper transfer voucher) • Review the budget vs expenditure on both E accounts and Grant Restricted accounts. • Have the Department Head (and PI in the case of Grants) review and sign the ledgers or process the approval through Electronic Ledger Reconciliation. During this time the responsible individual should take notice of remaining balances and make note of any budget vs expenditure amounts that could cause issue throughout the year. Balancing Your Budget vs Expenditure

8. Check accounts for encumbrances: • During 1st two weeks of June • Look up encumbrances using • ZFM_BCS001 for E accounts • ZFM_BCS002 or ZDEPT_LEDGER for R accounts • Verify the validity of the encumbrance • Contact Purchasing or Travel to clear any encumbrances previously realized or no longer valid What a Department Does During Year End

9. Ensure all revenue and refunds received by June 30 are entered into IRIS and/or taken to the Bursar’s office for deposit by end of business July 3rd. • On June 30 pull interim ledgers • ZE_LEDGER for E accounts, • ZDEPT_LEDGER for R accounts • Balance the Budget vs Expense on each account within the department. • Create transfer vouchers to move charges if necessary, date paper TV’s June 30. Clearly mark the top of the Form FY 2016-2017. Deliver year end paper transfer vouchers to ACCOUNTING SERVICES no later than July 6thfor processing. To ensure that TV’s to be processed in FY 16-17, DO NOT put in campus mail. • Pro-card purchase cut off date will be June 27th. All June Pro-card charges must be reconciled by July 12th or else all charges will post to the responsible account. • Pro-card purchases made June 28th to 30th will be charged in FY 2017-2018. What a Department Does During Year End

10. PAYROLL: • June Monthly Payroll must be finalized and approved in workflow by June 23rd. • Biweekly for Pay Period Ending June 25th, must be finalized and approved by June 26th. • Correct salary postings through payroll system. Any changes through a Salary Transfer Voucher (STV) for Fiscal Year 2017 must be entered and approved in workflow byJuly 3rdin order to be posted in the final adjustment payroll run on July 5th. Monthly Payroll can be reconciled June 27th. Any needed changes should be input immediately. • June Effort Certification on Grant accounts must be completed and through workflow approval by July 3rd. Monthly payroll can be reconciled on June 27thand effort certification should be completed immediately after this date to meet the July 3rd deadline. • Additional Pay on Grant accounts. May effort should be entered and approved by June 15th. June effort should be entered and approved by July 17th unless it’s a Center of Excellence account which should be completed by June 15th . Workflow notes must show a calculation hours x hourly rate or % of monthly effort. What a Department Does During Year End

11. ACCOUNTS PAYABLE AND TRAVEL: • To be processed in the 2016-2017 fiscal year, all invoices must be dated on or before June 30, 2017. • Any invoices dated after June 30thor travel ending July 1st or later will be processed in 2017-2018 fiscal year. • All FY 16-17 travel must be in travel workflow inbox no later than July 6th. • For all FY 16-17 invoices processed by Accounting Services, these invoices must be submitted to the acctserv@utc.edu email account by July 6thand preferably earlier. • Please denote in the email Subject Line that they are FY 16-17 invoices. • Please write FY 16-17 written in the top right hand corner of the invoice. • FY 16-17 invoices will be processed before FY 17-18 invoices. • For all FY 16-17 invoices processed within the department, such as misc. reimbursements, contract invoices, and T-27’s, these invoices must be entered and to the Accounting Services workflow by Noon on July 5th. What a Department Does During Year End

13. General Information • The Budget Office determines carryover balances by closing all accounts within a particular division or college. • Automatic Carryover Funds • Usually determined by the Chief Business Officer and/or Provost • Service centers, student fees and some specialized programs • Restricted accounts (unless on expiring grant accounts or 1 year UC FDN Awards-must request carry over/extension from appropriate entity) • Discretionary Carryover Funds • All carryovers that are not deemed automatic carryovers are at the discretion of the Chancellor and will be distributed after the university’s books are balanced (usually in September). Carryover Funds

14. View/Download Fund Attributes • IRIS Transaction – Z_FM_ZFMFINCOD • Provides detailed info about fund(s) attributes • Fund Center • Benefits Self Funded or Centrally Funded • UT Ledger-A SMART LEDGER-your audit document • IRIS Transaction – ZFM_UT_LEDGER • Can only be used for closed periods • Fiscal Policy Requires to print, reconcile and get signed by department head or to process through Electronic Ledger Reconciliation • Interim Ledgers • ZE_LEDGER- E accounts (Centrally Funded Benefits) • ZDEPT_LEDGER- R accounts and E Accounts (Self Funded Benefits) Helpful Reports

15. Annual Budget vs. Actuals • E Accounts-IRIS Transaction – ZFM_BCS001 • R Accounts-IRIS Transaction – ZFM_BCS002 • Must know benefits type: • Self Funded (ALL_CI_AND.BENE) or Centrally Funded (ALL_CI_NO.BENE) • Provides detailed info about transaction within a fund(s) • Actuals vs. Budget and Encumbrances • Should be used to insure charges are in the appropriate fiscal year • Payroll Check Register • IRIS Transaction – ZPR_DETAIL_CHECK_REGISTER • Fiscal policy requires it be run and reviewed two days prior to payday • Line Item Reports • KSB1- E accounts • CJI3- R accounts Helpful Reports

16. What to expect at the Opening of next Fiscal Year? • POSSIBLE CHANGES TO BASE OPERATING/SALARY BUDGET Why? • New Operating Budget Allocations • Funding for New Positions • Carryover Funds (Non-recurring) • One-Time Funds Awarded (Non-recurring)

17. Are you signed up for SAP list serve? • Important Email notification: • Payroll verification reminder • Month closing • http://iris.tennessee.edu/getting-started/iris-user-listserv/ • Chattanooga • Join or Leave the list • All general settings are fine