Introduction

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2. Introduction Purpose Provide information to the university community about the year end closing and reporting process and deadlines Objective Facilitate an orderly, efficient and compliant year end closing process both at the departmental and institutional levels

3. Presenters Business Affairs Information Resources Dr. Calvin Jamison Dr. Jim Gary Senior VP for Business Affairs VP and Chief Information Office Finance & Budget Wanda Mizutowicz Associate VP for Finance & Controller Reda Bernoussi Director of Accounting & Financial Reporting David Gaarder Assistant Budget Director Kelly McKinney Manager of Budget Operations Procurement Management Pete Bond Associate VP for Procurement

4. Agenda Status of PeopleSoft Overview of the year-end closing process Procurement Management deadlines and reminders Human Resources deadlines and reminders Budget deadlines and reminders Year-end required accounting information Account reconciliation Certification Process (Letters of Representation) Financial Statements Audit

5. Status of PeopleSoft

6. PeopleSoft: Our Achievements/Challenges Finance: transferred data for the University�s $400 million operation from legacy system. We also recently redesigned the way our application was built to provide faster response times. Human Resources: processing payroll in new system, albeit with a few challenges. - Procurement making payments within a 30-day allowable window, using both electronic and manual processes. - PeopleSoft Academy trains student interns in UT Dallas� customized system. Once through Academy, interns are evaluated for full-time employment. Currently, we have hired two individuals who graduated the pilot academy. They test software modules and train our full-time employees on how to use new systems. Finance: transferred data for the University�s $400 million operation from legacy system. We also recently redesigned the way our application was built to provide faster response times. Human Resources: processing payroll in new system, albeit with a few challenges. - Procurement making payments within a 30-day allowable window, using both electronic and manual processes. - PeopleSoft Academy trains student interns in UT Dallas� customized system. Once through Academy, interns are evaluated for full-time employment. Currently, we have hired two individuals who graduated the pilot academy. They test software modules and train our full-time employees on how to use new systems.

7. PeopleSoft: Key Remaining Tasks Technical Aspects Improve system response time (ARDC) Hold on system updates through year-end Finance Complete year-end processes Make departments whole (employees on wrong accounts due to a malfunction in payroll reallocation program)Technical Aspects Improve system response time (ARDC) Hold on system updates through year-end Finance Complete year-end processes Make departments whole (employees on wrong accounts due to a malfunction in payroll reallocation program)

8. PeopleSoft: Key Remaining Tasks, cont. Procurement Restore ability to produce electronic vouchers Prepare for implementation of Travel and Expense, P-Card modules (2012) Payroll/Human Resources Make leave balances available in Galaxy Ensure accuracy in faculty pay Ensure accuracy in faculty summer insurance elections Procurement Restore ability to produce electronic vouchers Prepare for implementation of Travel and Expense, P-Card modules (2012) Payroll/Human Resources Make leave balances available in Galaxy Ensure accuracy in faculty pay Ensure accuracy in faculty summer insurance elections

9. Overview of the Year-EndClosing Process

10. Overview of Year End Procedures Steps necessary to properly close out the University�s financial systems for the current fiscal year Timeline of critical tasks/processes required to ensure that all prerequisites are met before final ledgers and reports are generated Mechanism for gathering data used in the year end reporting processes (e.g., Receivables, Inventory, etc.)

11. Fiscal Year Closing Process Electronic Cost Center Listings August 5th

12. Year-end Reports The preliminary close will begin Thursday evening, September 8th and end on Friday, September 9th. The preliminary August reports will be available on Monday, September 12th. The final year-end close will occur on Friday, September 30th . The final reports will be available to you on Monday, October 3rd.

13. Deadlines for IDTs and Automated Journal Entries In order to accommodate this schedule and to ensure that transactions are processed in an orderly fashion, please make sure all IDTs for August business are in the Finance Office no later than Wednesday, September 7th. Also, please note that the deadline for automated journal entries is Tuesday, September 6th.

14. Material Adjustments After Preliminary Close Once we start the preliminary close on Thursday, September 8th, only the Finance staff will be able to post transactions to fiscal year 2011 files. All other users will be posting transactions to fiscal year 2012. If you determine that material adjustments are needed to FY11 costs or revenues after the preliminary close, you will have until Friday, September 16th to contact the Finance Office (ext. 2602) to discuss the nature of these adjustments and the process to be followed.

15. System Availability for End-Users

16. Year-End Closing Preparation

17. Procurement Management Year-End Guidelines

18. Purchasing Deadlines Purchasing contact: Paul Watson purchasing@utdallas.edu All Purchases except eProcurement Catalog 5 PM Friday, August 19th

19. Catalog Purchases via eProcurement5 PM Monday, August 29thMust be approved by Cost Center Manager/ Alternate.

20. How to enter a requisition for FY12 business while still in FY11 Purchasing will create a cart of all known possible renewal orders (services that might be needed in FY12). Purchasing will forward/assign the cart to the departmental requestor. Departmental requestor will apply cost center, confirm FY12 costs and follow procedures to use FY12 funds. Select FY12 fiscal year and input an accounting date on 09/01/2011 or later in requisition �billing options.� Departmental requestor will submit requisition to approval workflow.

21. How to Change Fiscal Year and Billing Date

22. Purchasing Card Program Deadlines Purchasing Card Program contact: Christy Baxter purchasingcard@utdallas.edu Purchasing Card deadline for posting of purchases against FY11 with ability to change Cost Center Friday, August 19th Only emergency orders should be placed with the purchasing card from the 20th � 31st. Postings by JPMorgan Chase to your Activity Report after August 19th will be charged against your default Cost Center in FY11 budget and cannot be changed. Beginning September 6, 2011 we will activate purchasing and travel cards with a new provider � CitiBank. All JPMorgan Chase cards will be terminated 8/31/2011.

23. Accounts Payable Deadlines Accounts Payable contact: Gina Niemann accountspayable@utdallas.edu Purchase Vouchers and Request for Check 5 PM Friday, August 19th

24. Travel Deadlines Travel Coordinator: Trudy Muller travel@utdallas.edu Travel Vouchers for actual reimbursement during FY11 5 PM Friday, August 19th. Vouchers received after this date will be accrued if greater than $2,000. Airfare charges for travel taking place in July/August will be posted or accrued if booked with UT Dallas Travel Agents.

25. Print Shop Deadlines Print Shop contact: Chris Rench rench@utdallas.edu Copy Center contact: Donna Lane donna.lane@utdallas.edu Print/Copy Center Jobs: Friday, August 19th

26. Accrual Procedures Best practices resulting from Sarbanes Oxley require that we account for expenditures related to goods and services in the fiscal year they were actually received. If you are aware of an expenditure with a value of $2,000 or more that has been received but not yet invoiced, please advise Accounts Payable so it can be accrued.

27. Accrual reminders Remember to consider services that have been performed but not yet billed Do send estimated travel reimbursements for travel completed before 8/31 but not yet submitted for reimbursement Do send estimated business expense reimbursements for expenses that have been incurred, but not yet submitted for reimbursement Do send even if your account is negative; expenses should be reported in the correct FY Do not send airfare; we will accrue from reports from CWT Do not send an expense to be accrued that you have already submitted for payment Try to keep accruals at a minimum�send the actual payment request before 8/31 if possible so we can pay instead of accrue.

28. T&E and P-Card The PeopleSoft Travel & Expense module and Purchasing Card module will be implemented during calendar year 2012 .

29. Human Resources Deadlines and Reminders

30. FY12 Salary Budgets Consolidated Team effort HR and Budget Office centrally located in the Budget Office All HCM forms to be sent to the Budget Office New Hire Packets(including I9, PAF, Personal Data Form, etc) Personal Action Forms for job data changes HR and Budget reviewing and streamlining: HCM forms workflow Data entry Payroll Deadlines Payroll data technical cleanup Testing PeopleSoft with new technical set-up Contract Pay Assignments that end � Research Assistants, Research Scientist Faculty Cell phone, longevity, hazardous duty appointments FY 12 Salary Roster Preliminary FY 12 Salary Roster sent to departments for review Changes to FY12 Salary Roster Departments can help in effort by reviewing and marking up the changes and returning to the Budget Office Reports will be generated that compare employees on file to PeopleSoft Salary Rosters for September review One week before payroll timesheets are distributed

31. August 2011

32. September 2011

33. Budget Deadlines & Reminders

34. Budget Journal Deadline Wednesday September 7th to The Budget Office

35. FINAL DAY TO PROCESS BUDGET JOURNALS FOR FY 2011 Wednesday, September 7, 2011to the Budget Office All budget journals must be initiated and sent through the proper approval workflow and to your budget analyst by this date. Budget journals for FY 2011 created first week of September should be dated 8-31-2011

36. REMINDERS! If you have received goods or services from university departments and have not been billed, be sure to make provision for these costs when preparing your year-end budget journals. Be aware of all charges that are to be billed to your cost center through year-end and make appropriate provisions!

37. ANTICIPATE Anticipate your Service Department charges and any other charges that will be posted to your cost center so that it will not be deficit at the end of the year! Telecommunications Copy Center Food Service Print Shop Gas Postage Staples Orders Purchasing Card IDTs

38. MANAGE YOUR BUDGET! Please make sure funds are available in the correct Cost Center/account by the Budget Journal deadline which is Wednesday, September 7, 2011.

39. FOLLOW-UP Budget Journals can take several days to process through workflow for required approvals Monitor the progress of Budget Journals Make follow-up phone calls or emails to expedite completion

40. Questions�. If you have questions, please call your Budget Analyst , Mary Trimble, or Dave Gaarder in the Budget Office and we will be glad to assist you.

41. Year-End Required Accounting Information

42. Year-End Accounting Information Inventory Adjustments Physical inventory for Fiscal Year 2011 is due to Paul Dobson, Office of Finance, no later than Friday, August 26th. General Ledger Reconciliations Examples are deferred revenue, deferred expense, and accounts receivable. Signed petty cash reconciliations are due by September 2nd.

43. Petty Cash Confirm all of the open petty-cash accounts listed Must reimburse all outstanding receipts before August 19th Cash on hand + unreimbursed receipts must equal total authorized fund amount Confirm custodian and alternate custodian (all petty cash funds must have an alternate custodian) Signature of custodian confirms that fund is reconciled Due by September 2nd.

44. Petty Cash Form

45. Revenue and Expenditures IDT�s (interdepartmental transfers) Proper documentation Adequate description Approvals by September 7th Cost overruns Budget Transfers (if appropriate) IDT to move expenditures to appropriate cost center Payroll re-allocations Recording Receivables and revenue Have you invoiced for goods or services and have not been paid? Have you provided goods or services and not invoiced? Is this revenue applicable to FY 11 or FY 12 (deferred revenue)? Form will be sent to be completed and returned by September 7th .

46. Receivables & Revenue

47. Account Reconciliation

48. Account Reconciliation Process FRS: September 2010 to January 2011 PeopleSoft: February 2011 to August 2011 Due Date: September 30th

49. Account Reconciliation Application Release 2.0 (Currently available) Enhancements Faster response time Reduced number of clicks Elimination of irrelevant columns at the transaction detail level

50. Account Reconciliation Application, cont. Release 2.0 (Currently available) Fixed Bugs Purchase Orders duplicate lines SQL errors when entering comments Multiple automatic notifications Incorrect default period Missing budget adjustments Inactive cost centers loaded to the reconciliation application Voucher detail missing from encumbrances tab Non-employee students information missing from scholarship detail Transaction detail not supporting cost center summary

51. Account Reconciliation Application, cont. Release 3.0 (Available the week of 8/15) Enhancements Simplified approvals New summary page for approvals Fixed Bugs Other encumbrances detail missing from encumbrances tab

52. Account Reconciliation Challenges If you cannot reconcile your accounts, please contact your fiscal officer. We will make arrangements to provide additional reports and alternate approaches. An analytical review will be performed to compare the current fiscal year activity to the previous fiscal year�s.

53. Account Certification Process

54. Certification Process

55. Letter of Representation In accordance with UT System Administration Policy � Policy UTS142, Policy on the Annual Financial Report, Section 3.2, and in connection with the audit of financial statements of the University of Texas at Dallas, for the year ended August 31, 2011, I confirm, to the best of my knowledge, the following: 1. My area is responsible for reconciling the accounts listed in the attachments (please note any exceptions on the next page).

56. Letter of Representation, cont. 2. We have reconciled all of our account statements for each of the 5 months ended January 31, 2011, with exceptions noted on the next page. 3. We have reconciled February through August accounts using the Account Reconciliation application, with the exceptions noted on the next page (list accounts or ranges of account which have not been reconciled). 4. Any accounts that have not been reconciled by September 30th, 2011 will be reconciled by (enter date) ___________.

57. Letter of Representation, cont. 5. For those accounts that have not been reconciled through the Account Reconciliation System, I have used alternate methods and reports as described on the attachment. (Please describe what methods and/or reports you used to ensure that the financial information is materially correct and that you have reported all known issues to the Finance Office).

58. Letter of Representation, cont. 6. I understand that all funds must be utilized in accordance with any restrictions as to the source of funds (for example, student fee accounts utilized in accordance with the purpose of the fee, endowment accounts utilized in accordance with the wishes of the donor as defined in the endowment agreement, contract and grant accounts utilized in accordance with the terms of the grant, etc.). 7. All revenue and expenses were appropriate, allowable, and properly recorded (expenditures recorded in the fiscal year in which they were incurred and revenues recorded in the fiscal year in which they were earned) for each of the 12 months ended August 31, 2011, with exceptions noted on the next page. 8. All reconciling items have been adjusted, adjustments are in process, or have been satisfactorily resolved for each of the 12 months ended August 31, 2011, with exceptions noted on the next page. (List any adjustments of $1,000 or more). 9. As division head or dean, I reviewed and approved all reconciliations or delegated such review and approval, for the departmental accounts during the fiscal year ended, August 31, 2011, with exceptions noted on the next page.

59. Letter of Representation, cont. 10. The departments in my area maintain segregation of financial duties; no single employee has responsibility for 1) entering transactions, 2) approving transactions, 3) receiving cash, and 4) reconciling accounts with the exceptions noted on next page. (Note: if there are any exceptions, please explain controls which mitigate or compensate for the absence of adequate separation of duties. Alternately, for areas where a limitation of the system of internal controls exists, note your proposed plan to address this limitation.) 11. All significant deficiencies in the design or operation of internal controls over financial reporting which could adversely affect my departments� ability to record, process, summarize, and report financial data and any material weaknesses in internal controls that have been identified have been appropriately reported and addressed with exceptions noted on the next page. 12. To the best of my knowledge, there are no misstatements or omissions in the accounts for which I am responsible, as noted in the letter, with exceptions listed on the attached page.

60. Letter of Representation, cont. 13. To the best of my knowledge, there has been no � a) Fraud, whether or not material, involving any employees who have significant roles in internal control, that has not been appropriately reported and addressed; or b) Fraud involving others that could have a material effect on the financial statements other than those previously reported to the Financial Reporting Officer in writing (if any), with exceptions noted on the next page. 14. All officers and employees in the department who are authorized to execute contracts on behalf of UT Dallas, or who exercise discretion with regard to the award of contracts or other pecuniary transactions of government, are in compliance with UTS142.1 Financial code of Ethics Certification, with the following exception(s)*:

61. Audit & Compliance

62. Office of Audit and Compliance Internal Audit: performs assurance and consulting services over all operations at UTD; formalized reporting to the President, UT System, and the State�including the Board of Regents and Governor Compliance: performs assurance and consulting services for compliance operations; facilitates compliance training; helps managers in high-risk compliance areas setup and maintain their programs; reporting to UTD management

64. Sneak Peek at FY 2012 Internal Audit Plan Required Audits (Per UT System Guidelines) Deloitte - Financial Statement Audit � FY 2011 President�s Travel and Entertainment Dependent Eligibility Audit THECB Facilities Audit Other Required Audits Lena Callier Trust TAC 202 (IT Security) Education Resource Center Required Grant Audits Follow-up of Prior Audit Recommendations Departmental Audits � including account reconciliations, time reporting, PS security/segregation of duties, expenses, property, payroll, revenues, contracts Risk-Based Audits PeopleSoft � HR, Finance, Student, Security Financial Aid Tuition & Fees Time & Effort

65. Financial Statement Audit Look at material balances � primarily in: Cash/Revenues Tuition & Fees Operating Expenses Property

66. Account Reconciliations & Certifications

67. Sneak Peek at Compliance eLearning changes; Compliance Training improvements New Training Coordinator Answer survey on our webpage for training feedback www.utdallas.edu/audit-compliance/training.htm

68. Top 10 Risks at UT Dallas � do you know what they are?

69. Hotline

70. Open Discussion You won�t know if you don�t ask!