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Fiscal Year Close for the Beginner

Fiscal Year Close for the Beginner

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Fiscal Year Close for the Beginner

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  1. Fiscal Year Closefor the Beginner Presented by:Accounting & Financial Services (A&FS) Office of Resource Management and Planning (ORMP) Fiscal Year Close Class 2004-05

  2. Agenda • What is Fiscal Close? • How does it work? • What should be done? • What happens after? Fiscal Year Close Class 2004-05

  3. Timing for Questions Pit Stops – ask any questions you have Fiscal Year Close Class 2004-05

  4. Fiscal Year End Close Fiscal Year Close Class 2004-05

  5. What is the Fiscal Year Close? • Reporting period end (Fiscal Year) • Official financial record • Close out revenues/expenses • Allows adjustments from cash to accrual base accounting (matching revenues with expenses) • University of California Annual Report • Certification by Chancellor, Vice Chancellors & Deans Fiscal Year Close Class 2004-05

  6. How Does Fiscal Close Work? • Periods 1 -12 (July through June-Prelim) Business as usual • Period 13 (June-Final) A few days to make final adjustments for the year. Fiscal Year Close Class 2004-05

  7. Fiscal Close Timing - July 2005 Fiscal Year Close Class 2004-05

  8. Fiscal Close - Timing • July 6: • All Statement of Cash Collections (SCC/Z) to A&FS-Internal Control by NOON • A/P deadline – DaFIS document status ‘R’; documentation to A/P by 4 pm • CAMS closes until mid-July • July 7 – 8: Year End documents available; regular documents can not be accessed in TP • July 9: Regular documents available for Period 1 Fiscal Year Close Class 2004-05

  9. Fiscal Close Timing • Make sure document approvers are available during cut-offs • Update Account Managers, Delegates & Review Hierarchy Users • Do NOT share passwords • Leave time for Dean’s office, Extramural and others to approve documents Fiscal Year Close Class 2004-05

  10. Dean’s Office Access • For adjustments by Dean’s/Vice Chancellor’s office after departments are cut off • ONLY 1 or 2 users with this access per DO/VC. • Documents DO NOT route to Account Managers • Do route to Extramural & Capital Asset Accounting. • FIS User document: Change Update Ability from “normal” user to “Dean’s Office” by July 14th. • Change back to “normal” by July 18th. Fiscal Year Close Class 2004-05

  11. Fiscal Close Documents • Period 13 documents that start with YE or Y • Budgets: YEBB, YECB • Corrections/Transfers: YEEC, YREC, YEDI • Departmental Encumbrances/Liens: YEDE • Accrual/Deferrals: YEAV • Work the same as regular documents • Can ONLY be used July 7th – 18th Fiscal Year Close Class 2004-05

  12. Fiscal Close Timing - Resources • Important fiscal close dates • Fiscal Close Web Site • http://accounting.ucdavis.edu/FiscalClose/ Fiscal Year Close Class 2004-05

  13. Pit Stop • Questions on • What is Fiscal Close • Timing • Due dates Fiscal Year Close Class 2004-05

  14. What should be done? • Budgets • Ledgers • Encumbrances/Liens • Accruals/Deferrals • Account Maintenance Fiscal Year Close Class 2004-05

  15. Budgets Fiscal Year Close Class 2004-05

  16. Base Budgets • Documents: Base Budget (BB) or Year End Base Budget (YEBB) • Staffing Lists • Self-Supporting Funds Fiscal Year Close Class 2004-05

  17. Base Budget Permanent on-going funding. Establishes annual operating budget. Basis for the Staffing List. Changes entered this year effect next year’s Current Budget. Current Budget Shown on year-to-date general ledger reports. Funds available this year, (one-time). Includes deficit or carryforward from prior year. You mentioned the Base Budget? Fiscal Year Close Class 2004-05

  18. What is my base budget? Decision Support reports will tell you. • Report 58 - Budget Summary by Account • Report 59 - Budget Summary by Consolidation • Report 60 - Budget Transaction Detail • Report 196 - Budget Summary by Project • Report 197 - Budget Summary by Project Consolidation Fiscal Year Close Class 2004-05

  19. * * Note: Need to select Base Budget from report screen. Fiscal Year Close Class 2004-05

  20. Base Budget Document Fiscal Year Close Class 2004-05

  21. Staffing Lists Self Supporting Funds Let’s talk about how it is used with….. Fiscal Year Close Class 2004-05

  22. WHAT is the staffing list? • The vehicle through which each department aligns itsbase budgetwith its actual staff & faculty salary commitments. • Containspermanent FTE, salary, and funding information. • Filled and vacant positions • Staff (SUBS) and Academic Positions (SB01 – SB09) only • Sorted and balanced for each Object Consolidation by FAU (required or full). Fiscal Year Close Class 2004-05

  23. Why do we have a staffing list? We have a staffing list to: • Make sure we can pay everyone to whom we have made permanent commitments. • Ensure departments receive all base salary related funding. • Fulfill State of California reporting requirements. Fiscal Year Close Class 2004-05

  24. Staffing List • Due Date for balancing the Staffing List for all funds is July 18th. • Reminder:Payroll Services will not review or reconcile staffing lists. Fiscal Year Close Class 2004-05

  25. Staffing List • Adjustments to PPS must be completed prior to the freeze of the PPS database on June 30. Fiscal Year Close Class 2004-05

  26. Staffing List • What happens if you are out of balance after the deadline? • Automatic transactions will force balance all staffing lists. • Balancing transactions will be offset against the same account (full FAU) using General Assistance (SUBG). Fiscal Year Close Class 2004-05

  27. Staffing List • What is the deadline for final resolution of issues related to the July 1, 2005 staffing list? • All requests (including requests for central range or merit funds) from the prior year must be submitted by October 31, 2005. Fiscal Year Close Class 2004-05

  28. Staffing List • The final July 1, 2005 staffing list: • Will be available from PPS-DS in early August. • Access to the July 1 staffing list data from PPS-DS will be available during the downtime. Fiscal Year Close Class 2004-05

  29. Staffing List/BudgetRelated Issues - Resources • Staffing Lists Made Easy Classes available. • May 5th – last one this year (Staff Development) • Staffing List Workshops: • Workshops to be scheduled in May and June. • Before requesting a workshop: • Attempt to balance list • Work with your Dean or Vice Chancellor’s Office • Please contact Donna Udhal at 752-5318 or dfudahl@ucdavis.edu to schedule times. Fiscal Year Close Class 2004-05

  30. Staffing List • Where do I find all of this information?Office of Resource Management and Planning website: • http://www.ormp.ucdavis.edu/staffing/index.html Fiscal Year Close Class 2004-05

  31. Base Budgets – Self Supporting Funds • Review Base Budget for Self-Supporting Funds (OP Fund 6XXXX) • Use DS Report 59 – check base budget • Base budget should reflect most current rate approval Fiscal Year Close Class 2004-05

  32. Pit Stop • Questions on • Base Budgets • Staffing Lists • Self Supporting Fund Base Budgets Fiscal Year Close Class 2004-05

  33. Other Budget Issues Fiscal Year Close Class 2004-05

  34. Budget Related Issues Costing Transactions • Generally, merit and range adjustments are automatically posted to your account. • These transactions are called “Costing Transactions”. • Works for transactions processed on merit rosters. • More Information? Check with your Dean/Vice Chancellor Office. Fiscal Year Close Class 2004-05

  35. Costing Table Fiscal Year Close Class 2004-05

  36. Budget Related IssuesCosting Transactions • No additional costing transactions are anticipated for this fiscal year. • View current summary table at:http://www.ormp.ucdavis.edu/staffing/slact.pdf • Payroll Services will send notices if additional transactions will be posted. Fiscal Year Close Class 2004-05

  37. Budget Related IssuesEncumbrances • The State of California requires that state funds and registration fee funds be expended in the year in which they have been included in an approved State Budget Act. • The State also requires that all carry forwards of unencumbered balances be supported by valid contracts, purchase orders, or other documentation Fiscal Year Close Class 2004-05

  38. Budget Related IssuesEncumbrances • To comply with the State Budget Act: • Evaluate carry forward balances at year-end • Establish departmental liens in DaFIS that provide justification for carry forward balances for: • General funds • Special state funds (i.e., lottery funds) • Registration fee funds • Funds held for faculty start-up should include the faculty name and hire date in the description field in the DE or YEDE document. • Encumbrance details later in the class Fiscal Year Close Class 2004-05

  39. Budget Related IssuesOverdrafts • In general funds, registration fee funds and extramural funds, the budget is the authorization to spend. • Overdrafts = violation of this authorization • Use current budget document (CB or YECB) to cover overdrafts between accounts in the same fund OR • Move expenses to appropriate account using error correction document (EC, REC, YEEC, YREC) Fiscal Year Close Class 2004-05

  40. Staffing List/BudgetResources Fiscal Year Close Class 2004-05

  41. Staffing List/BudgetRelated Issues - Resources • Dean/Vice Chancellor Office • Always your first resource • Resource Management and Planning Office • Staffing and General Budget Questions: • Nancy Wilson (752-5070, njwilson@ucdavis.edu) • Other Budget Questions: • ORMP Assigned Analyst(http://www.ormp.ucdavis.edu/who/assign/budget.html) • Website: • http://www.ormp.ucdavis.edu/budget/index.html Fiscal Year Close Class 2004-05

  42. Pit Stop • Questions on • Costing Transactions • Encumbrances • Overdrafts Fiscal Year Close Class 2004-05

  43. Ledger Review Fiscal Year Close Class 2004-05

  44. Ledger Review • Review and reconcile your accounts • General Ledger Reconciliation • Higher Education Function Code • Sponsored Project Funds • Payroll & Benefits • Travel Advances • Accounts Receivable • Cash Receipts Fiscal Year Close Class 2004-05

  45. General Ledger Transactions Fiscal Year Close Class 2004-05

  46. General Ledger Reconciliation • Completed and certified MONTHLY. • Process verifies appropriate authorization and accounting of transactions • Ledger Annotation – Reconcile on-line in Decision Support • Classes available in SDPS http://sdps.ucdavis.edu/ Fiscal Year Close Class 2004-05

  47. General Ledger Transactions • All transactions are consistent with university policies and procedures • All transactions are appropriate for the account and fund source • All transactions are appropriate for the higher education function code Fiscal Year Close Class 2004-05

  48. Higher Education Function Codes • What are Higher Education Function Codes (HEFC) and what do they have to do with the fiscal year close? Fiscal Year Close Class 2004-05

  49. Higher Education Function Codes • In DaFIS, a 4-digit code assigned to each account to define the overall purpose of the account. • The 4-digit code is driven by the first 2 digits of the OP Account number. • Standardized reporting classifications for higher education • Defined by the National Association of College and University Business Officials (NACUBO). Fiscal Year Close Class 2004-05

  50. HEFC = Account Attribute OP Account drives HEFC OP Account Fiscal Year Close Class 2004-05