UNIVERSITY OF MAINE SYSTEM INSTRUCTIONS FOR THE INTERIM GENERAL LEDGER CLOSE FY2015

Transcription

1 INSTRUCTIONS FOR THE INTERIM GENERAL LEDGER CLOSE FY2015 OFT February 2015

2 Welcome to the Interim! FY2015 The only thing that is constant is change. There have been continuing changes throughout the University of Maine System, both organizational and technical in nature. These changes will impact (change) our processes and procedures for the Interim and Year-End General Ledger (GL) Close. We are continuing to work with Strategic Procurement (SP) to define responsibilities regarding unclaimed property requirements and reconciliations of various accounts. We are also gearing up for the implementation of the Integrated Workplace Management System (IWMS), the Concur Travel System and others. Interim is an opportunity to minimize some of our year-end workload and year-end surprises in the GL by identifying issues that we may or may not have anticipated. Items that will have an impact and require special attention are listed below. Janis Manning System Accounting Department CAPITAL ASSETS See R16.A Due to implementation of new software, each campus will need to perform a complete equipment inventory at interim in order to be loaded into IWMS. This inventory is not a new process, but it is imperative that we have complete and accurate information to load into the new system. The inventory will also need to be updated at year-end (which will be a breeze to account for only 6 months of activity) for external auditing purposes. By February 13 th, Ashley Wells, in the System Accounting Department, will send a detailed spreadsheet to each campus containing equipment that has been capitalized through 12/31/2014. Each campus must perform a complete inventory of the equipment on the spreadsheet and update any information. It must be returned to Ashley by March 31 st. It is imperative that retirements of equipment are notated. Retirements are to include any equipment that you can no longer locate. Methods of retirements include sales, transfers, junked and shrinkage. If you have any questions, feel free to contact Ashley at or ashley.wells@maine.edu. PREPAIDS See R10.C Please don t wait until after June 30 to review your prepaid expenses. This will affect your FY15 budget if you have prior year prepaid expenses that have not been expensed during the current year! This is especially true if they are prepaid expenses that you don t record every year. Please review any prepaid expense account balances to ensure that June 30, 2014 balances have been expensed if appropriate. UNCLAIMED PROPERTY See R01 At this time, the campuses are still responsible for performing due diligence for the outstanding checks in the campus held bank accounts. They are required to send a detailed list of individual outstanding check amounts and a copy of the bank statement in conjunction with the bank reconciliations for the Interim and Year-End GL Close. i

3 FY2015 SP will perform due diligence for outstanding vendor Accounts Payable (AP) checks over 90 days old. This will be done on a regular basis throughout the year, and SP may at times reach out to the campuses to determine validity. The System Accounting Department will submit the annual unclaimed property report. Prior to submission, the campuses and SP will validate that the list of outstanding checks to be escheated for 2015 are correct. INTRODUCTION As done in prior years, the University of Maine System (UMS) is having an interim close of the general ledger. The timeline for the interim close process is as follows: Time Frame Actions Parties March Reconcile the February 28 th account balances and submit Campuses reconciliations and other requested information to the System Accounting Department Ensure that certain processes/procedures are completed by March 31 Reconcile System accounts and process campus requests April Analyze data and prepare journal entries to convert the general ledger to full accrual basis Campuses System Accounting Dept. System Accounting Dept. Much like year-end, the System Accounting Department will have numerous procedures it must complete once the campuses have submitted their information. Therefore, your observance of the due dates for each area is greatly needed and appreciated. If some materials are completed before the scheduled due dates, we would appreciate receiving them early. We would also appreciate receiving as much information as possible electronically. Electronic submissions should be sent to nancyk@maine.edu. The interim close process is similar to, but not as intensive as the year-end close process. A comparison of key areas is as follows: Area/Action Interim Year-End Reconcile all accounts Yes Yes Accrual period for accounts payable, travel, and p-card No Yes Accrual of payroll and labor distribution adjustments No Yes Ensure that data from other systems is fed to the general ledger Yes Yes Major equipment encumbrances No Yes Physical inventory counts No Yes Report vacation usage Yes Yes Fund deficits Yes Yes ii

4 FY2015 To guide you in the interim close process, we have divided this document into the following key sections: RECONCILIATION OF FEBRUARY 28, 2015 ACCOUNT BALANCES AND SUBMISSION OF DATA PROCEDURES AND PROCESSING INSTRUCTIONS FOR MARCH 31 ATTACHMENTS - LISTING OF FEBRUARY 28 TH ACCOUNT BALANCES TO BE RECONCILED BY EACH CAMPUS. Please note that we designed the attachments to be used in combination with the main body of the document. The step numbers (e.g., R01.) in the attachments coincide with the step numbers in the reconciliation section of the main document. Please see the main document for detailed instructions of what is required for each set of accounts in the attachments. The main document also includes processing instructions for March 31 that are not included in the attachments. Most of the processing items will probably only impact specific departments; however, some items may impact the entire campus. iii

5 FY2015 TABLE OF CONTENTS Reconciliation of February 28 Account Balances and Submission of Data R01. Bank Accounts - General 1 R02. Bank Accounts - Credit Cards 1 R03. Imprest Cash Funds 1 R04. Receivables Student Accounts and Other Accounts 2 R05. Loans Receivable - Perkins and Nursing 3 R06. Loans Receivable - University 3 R07. Investments 3 R08. Pledges Receivable 3 R09. Summer Session Revenue Deferral and Other Deferred Revenues 4 R10. Inventories and Prepaid Expenses 5 R11. Gifts Pending, Gift Clearing, and Payroll Gift Clearing Accounts 7 R12. Other Liability Accounts 7 R13. Student Activity Accounts 8 R14. Payroll Suspense Accounts 8 R15. Other Suspense and Clearing Accounts 8 R16. Capital Assets 8 R17. Gift Revenue Accounts 10 Procedures and Processing Instructions for March 31, 2015 P01. Account Reconciliations 11 P02. Journal Entries 11 P03. Receivables - Student Accounts 11 P04. Receivables Nonstudent PeopleSoft 11 P05. Receivables Nonstudent MAS90 11 P06. Receivables Accounts Payable Vendor Credits 11 P07. Allowance for Doubtful Accounts 12 P08. This item intentionally skipped 13 P09. Accrued Expenses Nonpayroll 13 A. Accounts Payable / Purchasing 13 B. Travel and Expense Module 13 C. Purchasing Card 13 P10. This item intentionally skipped 13 P11. Statement of Income 13 P12. TouchNet 13 P13. Payroll 14 P14. Vacation Usage 14 P15. Deficits - Designated Fund 14 P16. Deficits - Cost Sharing 14 P17. Deficits - Capital Projects 14 P18. Deficits - MEIF 14 P19. Deficits - Gift Programs 14 P20. Grants and Contracts Including Student Financial Aid 15 P21. Gifts and Pledges Advance System 18 P22. Impaired Capital Assets 18 P23. Pollution Remediation Obligations 18 P24. Leases (University is Leasing Property From Another Entity) 19 P25. Leases (University is Leasing Property To Another Entity) 19 iii Page

6 FY2015 Attachments Listing of February 28 th Account Balances to be Reconciled A University of Maine at Augusta A-1 B University of Maine at Farmington B-1 C University of Maine at Fort Kent C-1 D University of Maine at Machias D-1 E University of Maine E-1 F University of Southern Maine F-1 G University of Maine at Presque Isle G-1 H System Office - Budget H-1 I System Office - Facilities I-1 J System Office - ITS J-1 K System Office - Payroll, Benefits, Human Resources K-1 L System Office - Shared Processing Center L-1 M System Office - Strategic Procurement M-1 N System Office - Accounting N-1 iv

7 FY2015 Exhibits referenced in this document are located on the Finance and Treasurer web site at RECONCILIATION OF FEBRUARY 28, 2015 ACCOUNT BALANCES AND SUBMISSION OF DATA Journal entries needed as a result of these reconciliations should be posted to the general ledger by March 31. AREA INSTRUCTIONS R01. BANK ACCOUNTS GENERAL All bank accounts over which you have control should be reconciled as of February 28, Exhibit I is to be completed for each of the accounts to reconcile the bank balance and your cashbook balance. To assist with unclaimed property reporting, please attach a list detailing the individual check amounts in the outstanding total on Exhibit I. All supporting data is to be retained for each account for that period. This includes bank statements, canceled checks, debit/credit memos and deposit slips. A copy of the bank statement should be attached and sent with Exhibit I. Please note that Exhibit I is a self-balancing reconciliation between a cashbook and a bank statement; thus both sides must be completed. DUE DATE FORMS 3/6/15 EXHIBIT I EXHIBIT IV Exhibit IV should be prepared for each campus bank account to reconcile the February 28 th balance per the general ledger (the imprest amount) and the balance per your cashbook. An example of a reconciling item is disbursements which have not yet been replenished. R02. BANK ACCOUNTS CREDIT CARDS The credit card bank accounts should be reconciled as of February 28, Exhibit I is to be completed for each of the accounts to reconcile the bank balance and the general ledger balance. R03. IMPREST CASH FUNDS Exhibit IV should be prepared for each imprest cash fund to reconcile the February 28 th balance per the general ledger (the imprest amount) and the cash balance on hand. An example of a reconciling item is disbursements which have not yet been replenished. 3/6/15 EXHIBIT I 3/6/15 EXHIBIT IV 1 of 20

8 FY2015 Exhibits referenced in this document are located on the Finance and Treasurer web site at RECONCILIATION OF FEBRUARY 28, 2015 ACCOUNT BALANCES AND SUBMISSION OF DATA Journal entries needed as a result of these reconciliations should be posted to the general ledger by March 31. AREA R04. RECEIVABLES A. STUDENT ACCOUNTS PS STUDENT FINANCIALS SYSTEM B. NONSTUDENT ACCOUNTS PS STUDENT FINANCIALS SYSTEM INSTRUCTIONS The PeopleSoft Student Financials (PSSF) Trial Balance Report should be run as of February 28, 2015 for all receivables (student and agency) maintained in PSSF and reconciled to the general ledger balance using Exhibit II. If you do not have a trial balance report you like, you should use UMS_BILL_TRIAL_BALANCE_DBCR (this is only for student receivables). This report will breakdown your debit and credit balances. (The System Accounting Department will run an aging report ending the same date.) These will be sent to the campuses no later than 3/6/2015. You cannot use the aging for your reconciliation as the aging does not include credit balances. C. NONSTUDENT ACCOUNTS MAS90 Exhibit II should be used to reconcile the February 28 th balance per the general ledger and per the MAS90 system. An Accounts Receivable Aged Invoice Report from the MAS90 system should be forwarded with Exhibit II. D. NONSTUDENT ACCOUNTS OTHER SYSTEMS Exhibit II should be used to reconcile the February 28 th balance per the general ledger and per your system for tracking other nonstudent receivables. Exhibit IIC should be completed to provide an aging of the nonstudent receivables. E. ARAS/ISIS CLEARING ACCOUNT Reconciliation of the ARAS/ISIS Clearing accounts needs to be completed by the preparation of an Exhibit II using the February 28th accounting reports. F. DIRECT LOAN FUNDS ADVANCED All direct lending accounts should be reconciled to detail records as of February 28, Please feel free to contact the System Accounting Department for help with these items. DUE DATE FORMS 3/31/15 EXHIBIT II 3/13/15 EXHIBIT II SPECIAL REPORT 3/13/15 EXHIBIT II EXHIBIT IIC 3/13/15 EXHIBIT II 3/13/15 EXHIBIT II 2 of 20

9 FY2015 Exhibits referenced in this document are located on the Finance and Treasurer web site at RECONCILIATION OF FEBRUARY 28, 2015 ACCOUNT BALANCES AND SUBMISSION OF DATA Journal entries needed as a result of these reconciliations should be posted to the general ledger by March 31. AREA INSTRUCTIONS R05. LOANS RECEIVABLE - PERKINS AND NURSING Exhibit IX should be prepared for each Loan Fund, reconciling ECSI s records to PeopleSoft. Any differences must be corrected by journal entries and entered by the University, so that PeopleSoft agrees with ECSI at February 28, DUE DATE FORMS 3/13/15 EXHIBIT IX EXHIBIT IXA A detailed listing of student payments is required in support of the Perkins/NSL Miscellaneous Deposit Account Balance (Exhibit IXA). R06. LOANS RECEIVABLE - UNIVERSITY A. DETAILED TRIAL BALANCE Outstanding principal balances for University loans receivable should be aged using Exhibit IIC. The aging should be reviewed for recommended write-offs. If write-offs are required, prepare and enter journal entries debiting account code and crediting the appropriate note receivable account code B. RECONCIILIATION Exhibit II should be prepared for each chartfield combination listed in the specific requirements for your University and journal entries submitted for any difference. R07. INVESTMENTS The detail of all other investment accounts, which are University controlled or administered, is to be submitted on Exhibit III. All passbooks should be posted as of February 28, 2015 showing interest earned. R08. PLEDGES RECEIVABLE A. OUTSTANDING PLEDGES The following information should be provided as of February 28, 2015 for each outstanding pledge: 3/13/15 EXHIBIT IIC 3/13/15 EXHIBIT II 3/13/15 EXHIBIT III 3/13/15 ADVANCE REPORT Donor name Original pledge amount Pledge balance outstanding (total balance left to 3 of 20

10 FY2015 Exhibits referenced in this document are located on the Finance and Treasurer web site at RECONCILIATION OF FEBRUARY 28, 2015 ACCOUNT BALANCES AND SUBMISSION OF DATA Journal entries needed as a result of these reconciliations should be posted to the general ledger by March 31. AREA INSTRUCTIONS be paid) The amount to be collected from the donor in each future fiscal year Program title and the general ledger chartfield combination to which the payments will be posted. DUE DATE FORMS Note that the total cash flows must equal the total pledges outstanding. B. PLEDGE REQUIREMENTS NOT YET MET Occasionally a donor makes a pledge to the University but requires that the University fulfill certain requirements (e.g., raise a matching amount of money) before the donor will pay the pledge. Pledges of this type must not be included in the University s financial statements until all requirements have been fulfilled. Therefore, any such items that are included on the list of outstanding pledges from item R08.A above must be identified. Exhibit XIII must be used to report such pledges. Needed information includes the donor s name, pledge date, pledge amount, general ledger chartfield combination, and a description of the unfulfilled requirements remaining as of February 28, C. UNCOLLECTIBLE PLEDGES Specifically identify or provide a percentage of the total outstanding pledges you estimate will be R09. SUMMER SESSION REVENUE DEFERRAL AND OTHER DEFERRED REVENUES uncollectible. The summer session accounts and other deferred revenues and deposit accounts must be reconciled as of February 28, 2015 using Exhibit II. Please note that only a portion of expenditures and revenues related to summer session activities will be deferred to FY2016. Generally, summer session 3/13/15 EXHIBIT XIII 3/13/15 CAMPUS REPORT 3/31/15 EXHIBIT II COPY OF JE S 4 of 20

11 FY2015 Exhibits referenced in this document are located on the Finance and Treasurer web site at RECONCILIATION OF FEBRUARY 28, 2015 ACCOUNT BALANCES AND SUBMISSION OF DATA Journal entries needed as a result of these reconciliations should be posted to the general ledger by March 31. AREA INSTRUCTIONS revenues and expenses are not recorded in the general ledger until the months of March, April, May, and June. If, however, revenues and expenses related to the upcoming summer session have already been recorded in revenue and expense accounts, you should make a journal entry to defer those amounts. Please keep in mind, however, that salaries and wages and the related benefits should not be deferred at all, but should remain as FY2015 expenses. The percentage to be deferred will be based on separate correspondence with campus management. R10. INVENTORIES AND PREPAID EXPENSES A. INVENTORIES NON BOOKSTORE A physical count of inventory is not required for February 28, However, the balance in the general ledger must be reconciled using Exhibit II. If you normally adjust the balance in the general ledger only at year-end, please ensure that the general ledger balance is the same as it was at June 30, If you maintain a perpetual inventory, the balance in your inventory system should be reconciled to the balance in the general ledger. DUE DATE FORMS 3/13/15 EXHIBIT II EXHIBIT VIIA If you have a perpetual inventory system, please provide a listing of the inventory balance per your system. Exhibit VIIA, or a reasonable facsimile, may be used in lieu of computer listings. B. INVENTORIES BOOKSTORE A physical count of inventory is not required for February 28, However, the balance in the general ledger must be reconciled using Exhibit II. If you normally adjust the balance in the general ledger 3/13/15 EXHIBIT II EXHIBIT VIIA EXHIBIT VIIB EXHIBIT VIIC 5 of 20

12 FY2015 Exhibits referenced in this document are located on the Finance and Treasurer web site at RECONCILIATION OF FEBRUARY 28, 2015 ACCOUNT BALANCES AND SUBMISSION OF DATA Journal entries needed as a result of these reconciliations should be posted to the general ledger by March 31. AREA INSTRUCTIONS only at year-end, please ensure that the general ledger balance is the same as it was at June 30, If you maintain a perpetual inventory, the balance in your inventory system should be reconciled to the balance in the general ledger. DUE DATE FORMS EXHIBIT VIID EXHIBIT VIIE You must provide a listing of the inventory balance per your perpetual inventory system. Exhibit VIIA, or a reasonable facsimile, may be used in lieu of computer listings. Stated value of your inventory is to be at cost. Please note that if your computerized inventory system provides the actual cost of each item in inventory, use the actual cost instead of using cost ratios to roll the inventory back to estimated cost from the retail amount. If it is necessary to roll back the inventory from retail, the percentages used in devaluing to cost should be indicated on Exhibit VIIB which is the Bookstore Inventory Summary. C. PREPAID EXPENSES GENERAL Only the cost of materials or services received by the University during FY2015 (July 1 to June 30) should be recorded in the general ledger as expenses (account codes 6xxxx). If you paid for items in FY2015 that you will not receive in whole or in part until after June 30, 2015, you should record these items as an asset called prepaid expenses (account code 15000). 3/13/15 EXHIBIT VIIA If you recorded a prepaid expense for the prior yearend, this should be expensed during the current year as it is received or used. 6 of 20

13 FY2015 Exhibits referenced in this document are located on the Finance and Treasurer web site at RECONCILIATION OF FEBRUARY 28, 2015 ACCOUNT BALANCES AND SUBMISSION OF DATA Journal entries needed as a result of these reconciliations should be posted to the general ledger by March 31. AREA INSTRUCTIONS An example of an item that is generally prepaid, at least in part, is software support or maintenance costs. The bill is paid in one fiscal year; however, the period covered by the maintenance agreement falls partly in the current fiscal year and partly in the next fiscal year. The dollar amount of the invoice should be prorated so that the costs allocable to the next fiscal year are recorded as a prepaid expense. See the System s Administrative Practice Letter Section I- A Prepaid Expenses and Deferred Revenues for more information. Exhibit VIIA should be completed, detailing the items that comprise prepaid expenses. D. PREPAID TRAVEL Prepaid travel accounts (15101) should be reconciled with the balance in the PeopleSoft travel and expense module. The System Procurement Department or the System Accounting Department will reconcile these accounts. R11. GIFTS PENDING, GIFT CLEARING AND PAYROLL GIFT CLEARING ACCOUNTS These accounts must be reconciled at February 28, 2015 and any differences adjusted by journal entries. DUE DATE FORMS 3/13/15 EXHIBIT II 3/13/15 EXHIBIT II CAMPUS LIST A listing must be provided to support the February 28, 2015 balance in these accounts. The listing should include the following information: date of gift, donor s name, amount of gift, title of the program code to be created/chartfield combination to which the gift will eventually be credited, and restrictions. R12. OTHER LIABILITY ACCOUNTS The Universities are responsible for certain liability accounts in the general ledger, and although the accounts should be reconciled monthly, they must be reconciled at February 28, The reconciliation should be prepared on Exhibit II, and any differences adjusted by journal entries. Detail support should be 3/13/15 EXHIBIT II 7 of 20

14 FY2015 Exhibits referenced in this document are located on the Finance and Treasurer web site at RECONCILIATION OF FEBRUARY 28, 2015 ACCOUNT BALANCES AND SUBMISSION OF DATA Journal entries needed as a result of these reconciliations should be posted to the general ledger by March 31. AREA INSTRUCTIONS available upon request. R13. STUDENT ACTIVITY ACCOUNTS Balance sheets and trial balances are to be completed for each student activity bank account open as of February 28, R14. PAYROLL SUSPENSE ACCOUNTS Payroll suspense accounts must be reconciled as of February 28, 2015 using Exhibit II. All retro distributions to clear out the February 28th balance R15. OTHER SUSPENSE AND CLEARING ACCOUNTS should be made by March 31, The Universities are responsible for certain suspense and clearing accounts in the general ledger, and although the accounts should be reconciled monthly, they must be reconciled at February 28, The reconciliation should be prepared on Exhibit II, and any differences (other than timing) adjusted by journal entries. Detail support should be available for review upon request. Please note that the items comprising the February 28 th balances should be cleared out of these accounts by March 31, R16. CAPITAL ASSETS A. CAPITAL EQUIPMENT INVENTORY An equipment spreadsheet will be sent to each campus detailing capitalized equipment through 12/31/2014. Each campus will be required to perform a complete inventory of the equipment on that spreadsheet and update any information. All information needed to update your capital equipment inventories should be forwarded to the System Accounting Department. Here are a few reminders: Capital equipment (including furniture and motor vehicles) includes any items with a unit 8 of 20 DUE DATE FORMS 3/13/15 EXHIBIT XI EXHIBIT XII 3/31/15 EXHIBIT II 3/31/15 EXHIBIT II 3/31/15 SYSTEM GENERATED / CAMPUS REVIEWED

15 FY2015 Exhibits referenced in this document are located on the Finance and Treasurer web site at RECONCILIATION OF FEBRUARY 28, 2015 ACCOUNT BALANCES AND SUBMISSION OF DATA Journal entries needed as a result of these reconciliations should be posted to the general ledger by March 31. AREA INSTRUCTIONS cost of $5,000 or more with a useful life of more than one year. See Administrative Practice Letter Section I-G.2 General Accounting for Capital Assets for more information on capital assets. Equipment should be recorded in the inventory system only if it has been received and should be recorded at actual cost, not at the purchase order amount. The chartfield combination to be entered in the inventory system is the combination that was charged for the purchase. Thus, if the equipment was purchased with grant money, the grant project combination should be entered, not the department s fund 00 combination. This is only applicable for items purchased in FY15. Campuses are responsible for tagging all capital assets and reporting the information to the System Accounting Department. If a piece of equipment has been disposed or sold, it should be marked as such, and any revenue from the sale or disposal should be reported to the System Accounting Department. B. CAPITAL PROJECTS The following project attributes should be reviewed to ensure that they accurately reflect information for the project as of February 28 th : Depreciation status Useful life of the building and/or improvements other than buildings In-service date 9 of 20 DUE DATE FORMS 3/31/15 SYSTEM GENERATED / CAMPUS REVIEWED

16 FY2015 Exhibits referenced in this document are located on the Finance and Treasurer web site at RECONCILIATION OF FEBRUARY 28, 2015 ACCOUNT BALANCES AND SUBMISSION OF DATA Journal entries needed as a result of these reconciliations should be posted to the general ledger by March 31. DUE AREA INSTRUCTIONS DATE Categorized expenses The System Accounting Department will provide you with a listing of these attributes by March 6 th. C. GENERAL LEDGER ACCOUNTS All general ledger accounts for capital assets (account code series 17xxx) should be reconciled. Please note that these reconciliations will be prepared by the System Accounting Department. R17. GIFT REVENUE ACCOUNTS Year-to-date gift revenues per the general ledger and per the Advance system must be reconciled. In Advance, run the Allocation Summary Report for July 1, 2014 to February 28, In PeopleSoft, run the general ledger Reconciliation Report year-to date for Period 8. The campuses need to resolve any discrepancies and make adjustments as needed to the general ledger or Advance system. FORMS 3/31/15 SYSTEM GENERATED (Y/E WKP PF-U) 3/13/15 EXHIBIT II 10 of 20

17 FY2015 Exhibits referenced in this document are located on the Finance and Treasurer web site at PROCEDURES AND PROCESSING INSTRUCTIONS FOR MARCH 31, 2015 AREA INSTRUCTIONS P01. ACCOUNT RECONCILATIONS All account reconciliations for February 28 must be submitted to the System Accounting Department. Please see section R of this document for reconciliation due dates and requirements that go with these procedures. DUE DATE FORMS See Section R Reconciliations for the March 31 balances are not required to be submitted; however, all accounts should be timely reconciled each month. If, when you are reconciling your accounts in April you discover the need for a large dollar journal entry that should be posted to March, please contact the System Accounting Department as soon as possible. P02. JOURNAL ENTRIES All journal entries for the month of March should be posted to March by the campuses by the end of the P03. RECEIVABLES - STUDENT ACCOUNTS - PEOPLESOFT day April 1, All PSSF transactions for March 31 and earlier should be ready to feed to the general ledger by the end of the day March 31, P04. RECEIVABLES - NONSTUDENT PEOPLESOFT All PSSF transactions for March 31 and earlier should be ready to feed to the general ledger by the end of the day March 31, P05. RECEIVABLES - NONSTUDENT MAS90 All transactions impacting receivables maintained in MAS90 should be entered in MAS90 and fed to the general ledger by the end of the day on March 31, P06. RECEIVABLES ACCOUNTS PAYABLE VENDOR CREDITS Prudent business practices include writing off vendor credits that are not collectible. Determination of an item as uncollectible should be made, however, only after all reasonable efforts have been made to collect the credit in cash or to apply it to payment of another 4/10/15 4/1/15 n/a 3/31/15 See section R04.A 3/31/15 See section R04.B 3/31/15 See section R04.C 3/31/15 6/30/15 CERTIFICATION AP VENDOR CREDITS 11 of 20

18 FY2015 Exhibits referenced in this document are located on the Finance and Treasurer web site at PROCEDURES AND PROCESSING INSTRUCTIONS FOR MARCH 31, 2015 AREA INSTRUCTIONS invoice from the vendor, including invoices from other campuses. You can obtain a listing of your campus outstanding vendor credit balances by running a PeopleSoft report titled, AP Vendor Credit Balance. The path to this report within the PeopleSoft financials module is as follows: University of Maine System>Accounts Payable>Reports>Reports Home>Trial Balance & Vendor Credit Balance Select the appropriate campus and then select Outstanding Vendor Credit Bal on the process scheduler request page. DUE DATE FORMS Reasonable efforts should be made to collect the March 31 st credits before June 30, Vendor credits in the PeopleSoft accounts payable system that are determined to be uncollectible must be written off in the accounts payable system by June 30. A responsible person at each campus must submit a written certification that all significant uncollectible balances have been identified and written off as of June 30. P07. ALLOWANCE FOR DOUBTFUL ACCOUNTS At a minimum, your allowance must be funded to the extent of the month-end calculation made by the System Accounting Department based on your student receivables. The Aging Report from the PS Student Financial System that is sent to your University on March 6 by the System Accounting Department will be the basis for this calculation. 3/13/15 SPECIAL REPORT 12 of 20

19 FY2015 Exhibits referenced in this document are located on the Finance and Treasurer web site at PROCEDURES AND PROCESSING INSTRUCTIONS FOR MARCH 31, 2015 AREA INSTRUCTIONS Further funding may be needed based on your review of your nonstudent receivables. DUE DATE FORMS Note that the PS SF Aging Report does not correctly age the balances in TouchNet s Bill+Pay. Therefore, it will be necessary for the campuses that use that application to review the status of those outstanding balances in determining any additional allowance. P08. THIS ITEM INTENTIONALLY SKIPPED P09. ACCRUED EXPENSES - NONPAYROLL A. ACCOUNTS PAYABLE / PURCHASING Invoices entered into the accounts payable system by the end of the day March 31, 2015 will be accrued to March. Please make every effort to submit and enter all invoices that have been received. B. TRAVEL AND EXPENSE MODULE Travel expenses entered into the travel module by the end of the day March 31, 2015 will be accrued to March. Please make every effort to submit and enter all of your travel expense reports by March 31. C. PURCHASING CARD Map all approved transactions to the general ledger by the end of the business day on March 31, This will be the last mapping for March; therefore, please make every effort to timely approve the purchasing card transactions in PaymentNet. P10. THIS ITEM INTENTIONALLY SKIPPED P11. STATEMENT OF INCOME All journal entries for bank deposits made on or before 3/31/15 should be recorded in the general ledger by the end of the day on 4/1/15. The entry, however, should be dated March 31 or earlier. P12. TOUCHNET All journal entries for pre-april 1 TouchNet activity should be recorded in the general ledger by the end of the day on April 1, The entry, however, should be dated March 31 or earlier. 3/31/15 n/a 3/31/15 n/a 3/31/15 n/a 4/1/15 n/a 4/1/15 n/a 13 of 20

20 FY2015 Exhibits referenced in this document are located on the Finance and Treasurer web site at PROCEDURES AND PROCESSING INSTRUCTIONS FOR MARCH 31, 2015 AREA INSTRUCTIONS P13. PAYROLL There will be no payroll accrual as of March 31, Payroll will be posted to the month in which it was processed. P14. VACATION USAGE All vacation usage to date for FY2015 should be entered in PeopleSoft and approved by March 13, 2015 P15. DEFICITS - DESIGNATED FUND Deficit balances in the designated chartfield combinations (funds 10 and 13) must be funded by March 31, To assist you in identifying the deficits, the System Accounting Department will provide to you a schedule of deficit balances that exist at February 28. P16. DEFICITS - COST SHARING Deficit balances in each cost sharing combination (funds 04 and 24) must be funded by March 31, To assist you in identifying the deficits, the System Accounting Department will provide to you a schedule of deficit balances that exist at February 28. P17. DEFICITS - CAPITAL PROJECTS Deficit balances in each capital project combination (funds 18 and 28) must be funded by March 31, To assist you in identifying the deficits, the System Accounting Department will provide to you a schedule of deficit balances that exist at February 28. P18. DEFICITS - MEIF Deficit balances in each MEIF appropriation combination (fund 23) must be funded by March 31, To assist you in identifying the deficits, the System Accounting Department will provide to you a schedule of deficit balances that exist at February 28. P19. DEFICITS - GIFT PROGRAMS Deficit balances in gift programs (fund 20) must be reviewed to determine whether the deficit is simply a DUE DATE n/a FORMS n/a 3/13/15 n/a 3/31/14 SPECIAL REPORTS 3/31/15 SPECIAL REPORTS 3/31/15 SPECIAL REPORTS 3/31/15 SPECIAL REPORTS 3/31/15 SPECIAL REPORTS 14 of 20

21 FY2015 Exhibits referenced in this document are located on the Finance and Treasurer web site at PROCEDURES AND PROCESSING INSTRUCTIONS FOR MARCH 31, 2015 AREA INSTRUCTIONS timing difference attributed to endowment income distribution and interest earnings that will not be credited until March thru June. To assist you in identifying the deficits, the System Accounting Department will provide to you a schedule of deficit balances that exist at February 28. DUE DATE FORMS Deficits not attributable to the above noted timing differences should be funded by March 31, Please note that unrestricted monies (funds 0X and 1X) may not be transferred into the restricted gift accounts (funds 2X). Therefore, to clear gift account deficits you must move expenses out of the gift chartfield combination and record them in the combination which is funding the deficit. Please also note that the department to which you are moving the expenses must have the same functional expense code as the department to which the gift account belongs. P20. GRANTS AND CONTRACTS INCLUDING STUDENT FINANCIAL AID A. THIS ITEM INTENTIONALLY SKIPPED B. DEFICITS Needed steps must be taken to clear real deficit balances (e.g., cost overruns, errors in budgets, misposted expenses, etc.) by March 31, /31/15 SPECIAL REPORTS To assist you in identifying the deficits, the System Accounting Department will provide to you a schedule of deficit balances that exist at February 28. A written explanation is required of why the February 28 th deficits exist. The explanation for each should 15 of 20

22 FY2015 Exhibits referenced in this document are located on the Finance and Treasurer web site at PROCEDURES AND PROCESSING INSTRUCTIONS FOR MARCH 31, 2015 AREA INSTRUCTIONS include one or more of the following: unbilled amounts along with expected billing dates, billed but uncollected amounts, cost overruns, incorrect budgets, incorrect allocation information, endowment distributions not yet received, and other reasonable explanations. C. PROJECT ATTRIBUTES PeopleSoft general ledger is the official accounting record for the University of Maine System and is the basis for our annual financial statement and federal A-133 audits. Therefore, it is imperative that information tracked in the general ledger for grants and contracts be kept up-to-date. DUE DATE FORMS 7/10/15 SPECIAL REPORT We will be requiring that a responsible person in the Sponsored Programs area at each campus, certify in writing that the following information for each grant/contract project in the general ledger has been reviewed and is up-to-date as of June 30: Principal investigator employee ID Project start date and end date Grant number Billing code Grant/contract type CFDA number Benefit rate(s) for allocations F&A rate for allocations F&A cost share rate for allocations Direct cost share percentages for allocations To assist with this process, a file will be ed to the Sponsored Programs offices in early March 16 of 20

23 FY2015 Exhibits referenced in this document are located on the Finance and Treasurer web site at PROCEDURES AND PROCESSING INSTRUCTIONS FOR MARCH 31, 2015 AREA INSTRUCTIONS listing the above information for each open grant/contract in the general ledger as of February 28, Updates to the above information may be processed in the general ledger system thru July 10; however, please note that the effective date for applicable items must be 6/30/2015. D. COLLECTIBILITY OF RECEIVABLES Prudent business practices include writing off receivables that are not collectible. Determination of an item as uncollectible should be made, however, only after all reasonable efforts have been made to collect the receivable. Any receivables determined to be uncollectible as of March 31 should be written off as part of the interim general ledger close process. DUE DATE 3/31/15 7/10/15 FORMS CERTIFICATION GRANT AND CONTRACT RECEIVABLES At year-end we will be requiring that a responsible person at each campus submit a written certification that all significant uncollectible balances have been identified and written off prior to the close of the general ledger for FY2015. E. REVENUE ACCRUALS Throughout the fiscal year, revenue for campus billed grants and contracts is recognized as received. The System Accounting Department must make adjustments to record the unbilled/uncollected revenue. We will be making the assumption that all grant expenses recorded in fund 20 are fully reimbursable from the sponsor. 3/31/15 SPECIAL REPORT 17 of 20

24 FY2015 Exhibits referenced in this document are located on the Finance and Treasurer web site at PROCEDURES AND PROCESSING INSTRUCTIONS FOR MARCH 31, 2015 AREA INSTRUCTIONS P21. GIFTS AND PLEDGES ADVANCE SYSTEM All Advance transactions should be fed to the general ledger by the end of the day March 31, All pledge payments and any new pledge promises of $50,000 or more received during the month of March should be reported to the System Accounting Department so that the February 28 th pledge report (see section R08.A) you provided can be updated. P22. IMPAIRED CAPITAL ASSETS Capital assets that have experienced a major change in service utility at June 30, 2015 will need to be reported to the System Accounting Department to determine if there is a possible impairment. See Administrative Practice Letter Section I-G.2, Section XV Impairment of Capital Assets for more information on impairments. P23. POLLUTION REMEDIATION OBLIGATIONS GASB Statement No. 49 addresses when the University would be required to report a liability in its financial statements related to cleaning up pollution or contamination. The statement identifies specific events (obligating events) that trigger a requirement to initially measure remediation liabilities and subsequent circumstances (recognition benchmarks) that trigger a requirement for remeasurement. These liabilities only need to be reported if they meet the materiality threshold of $50,000 per project (based on the same threshold that we use for our capitalization policy). DUE DATE FORMS 3/31/15 CAMPUS REPORT 7/10/15 CAMPUS REPORT 7/10/15 QUESTIONNAIRES Guidance on measuring whether or not the University has a pollution remediation obligation and how to measure the dollar amount is located in the following documents posted on our web site at office/finances/instructions-and-forms-for-the-general- 18 of 20

25 FY2015 Exhibits referenced in this document are located on the Finance and Treasurer web site at PROCEDURES AND PROCESSING INSTRUCTIONS FOR MARCH 31, 2015 AREA INSTRUCTIONS ledger-close/ : Pollution Remediation Guidance.doc GASB 49.ppt Also located at this site is the questionnaire referenced in the guidance document. DUE DATE FORMS P24. LEASES (UNIVERSITY IS LEASING PROPERTY FROM ANOTHER ENTITY) P25. LEASES (UNIVERSITY IS LEASING PROPERTY TO ANOTHER ENTITY) This assessment must be made annually and any identified liability accrued in the audited financial statements. When completing the questionnaires, please be sure to provide an update for those sites for which you completed a questionnaire in FY2014. Exhibit XV must be completed to provide information for all noncancelable leases with a term of more than 1 year. By February 13 th, the System Accounting Department will provide you with a copy of Exhibit XV populated with the lease information you provided as of June 30, You will just need to update the schedule. Copies of the actual lease agreements are not needed at this time; however, we may request a copy of certain agreements after review of the schedule. Your response should include any leases that have been signed or are in effect at February 28, 2015 even though the first lease payment may not have been made at that time. Exhibit XVI must be completed to provide the needed information for all noncancelable leases with a term of more than 1 year. By February 13 th, the System Accounting Department will provide you with a copy of 3/31/15 EXHIBIT XV 3/31/15 EXHIBIT XVI 19 of 20

26 FY2015 Exhibits referenced in this document are located on the Finance and Treasurer web site at PROCEDURES AND PROCESSING INSTRUCTIONS FOR MARCH 31, 2015 AREA INSTRUCTIONS Exhibit XVI populated with the lease information you provided as of June 30, Copies of the actual lease agreements are not needed at this time; however, we may request a copy of certain agreements after review of the schedule. Your response should include any leases that have been signed or are in effect at February 28, 2015 even though the first lease payment may not have been received at that time. **END OF INSTRUCTIONS** DUE DATE FORMS 20 of 20

27 ATTACHMENT A UNIVERSITY OF MAINE AT AUGUSTA R01. BANK ACCOUNTS - GENERAL UMS Nardone,Gilda Savings Peoples Heritage MWWC UMS Brokaw,Timothy Imprest Fund - Star Fleet Bank R02. BANK ACCOUNTS - CREDIT CARDS UMS Blanchard,Joyce Accounts Rec - Credit Cards UMS Garthoff,Jerry Accounts Rec - Credit Cards UMS Garthoff,Jerry Accounts Rec - Credit Cards UMS Garthoff,Jerry Accounts Rec - Credit Cards UMS Brokaw,Timothy Accounts Rec - Credit Cards UMS Brokaw,Timothy Accounts Rec - Credit Cards UMS Brokaw,Timothy Accounts Rec - Credit Cards UMS Brokaw,Timothy Accounts Rec - Credit Cards R03. IMPREST CASH FUNDS UMS Brokaw,Timothy Imprest Fund - Cash UMS Brokaw,Timothy Imprest Fund - Cash R04. RECEIVABLES UMS Maffei,Holly Peoples Heritage Bank UMS Maffei,Holly EFT Clearing UMS Maffei,Holly Credit Card Clearing UMS Maffei,Holly ISIS - Clearing UMS Maffei,Holly ISIS - Payroll Deduction UMS Maffei,Holly ISIS - Intercampus Transfers UMS Maffei,Holly ISIS - Refunds Check UMS Maffei,Holly ISIS - Refunds A/P UMS Maffei,Holly ISIS - Misc Credits UMS Maffei,Holly ISIS - Misc Clearing UMS Maffei,Holly ISIS - Misc Clearing UMS Maffei,Holly ISIS - Bookstore UMS Maffei,Holly Student Loan Clearing UMS Maffei,Holly Student Loan Clearing UMS Garthoff,Jerry Accts Receivable - Misc UMS Garthoff,Jerry Accounts Rec - Non Student UMS Brokaw,Timothy Student Accounts Receivable UMS Brokaw,Timothy Student Accounts Receivable UMS Brokaw,Timothy Student Accts Rec - Agency UMS Brokaw,Timothy Student Accounts Rec - Outside UMS Brokaw,Timothy Allowance Doubtful Accounts UMS Brokaw,Timothy Accts Receivable - Misc UMS Brokaw,Timothy Accts Receivable - Misc UMS McCollett,Sherry Direct Loans Advanced UMS McCollett,Sherry Direct Loans Advanced UMS McCollett,Sherry Direct Loans Advanced UMS McCollett,Sherry Direct Loans Advanced UMS McCollett,Sherry Direct Loans Advanced UMS McCollett,Sherry Direct Loans Advanced UMS McCollett,Sherry Direct Loans Advanced UMS McCollett,Sherry Direct Loans Advanced A-1

28 ATTACHMENT A UNIVERSITY OF MAINE AT AUGUSTA R05. LOANS RECEIVABLE - PERKINS AND NURSING UMS McCollett,Sherry Perk Fds Adv Students UMS McCollett,Sherry Perk Ln Prn Collected UMS McCollett,Sherry Perk Ln Prn Can Ts 10 UMS McCollett,Sherry Perk Ln Prn Can Ts 15 UMS McCollett,Sherry Perk Ln Prn Can Ts 20 UMS McCollett,Sherry Perk Ln Prn Can Ts 30 UMS McCollett,Sherry Perk Ln Prn Can Hs 15 UMS McCollett,Sherry Perk Ln Prn Can Bankruptcy UMS McCollett,Sherry Perk Ln Prn Can Death UMS McCollett,Sherry Perk Ln Prn Can Disability UMS McCollett,Sherry Perk Ln Prn Can Other UMS McCollett,Sherry Perk Lp Can Ts 15 Dir UMS McCollett,Sherry Perk Ln Prn Assigned Us UMS McCollett,Sherry Perk Prn Written Off UMS McCollett,Sherry Perk Volunteer Service 15% UMS McCollett,Sherry Ln Prn Can Law/Corr)11-90 UMS McCollett,Sherry Ln Prn Can Ts State Short UMS McCollett,Sherry Ln Prn Can Nur/Medical UMS McCollett,Sherry Ln Prn Can Child/Family UMS McCollett,Sherry Ln Prn Can Early Intervent UMS McCollett,Sherry LP Can Child/Family/Eintv 15% UMS McCollett,Sherry LP Can Child/Family/Eintv 20% UMS McCollett,Sherry LP Can Nurse/Medical 15% UMS McCollett,Sherry LP Can Nurse/Medical 20% UMS McCollett,Sherry LP Can Nurse/Medical 30% UMS McCollett,Sherry LP Can Law/Corr 15% UMS McCollett,Sherry LP Can Law/Corr 20% UMS McCollett,Sherry LP Can Law/Corr 30% UMS McCollett,Sherry Clearing Loan Deposits UMS McCollett,Sherry Clearing Loan Overpayments UMS McCollett,Sherry Clearing Loan Reprocess Adj UMS McCollett,Sherry Clearing Loan Tax Setoff Pmnts UMS McCollett,Sherry Nurs Fds Adv Students UMS McCollett,Sherry Nurs Ln Prn Collected UMS McCollett,Sherry Nurs Pr Can Prior 11/71 10 UMS McCollett,Sherry Nurs Ln Prn Can Bkrup UMS McCollett,Sherry Nurs Ln Prn Can Death UMS McCollett,Sherry Nurs Ln Prn Can Disab UMS McCollett,Sherry Nurs Pr Can 15 Post 11/71 UMS McCollett,Sherry Nurs Pr Can 20 Post 11/71 UMS McCollett,Sherry Nurs Prn Written Off UMS McCollett,Sherry Clearing Loan Deposits UMS McCollett,Sherry Clearing Loan Overpayments R06. LOANS RECEIVABLE - UNIVERSITY UMS McCollett,Sherry Student Loans Receivable UMS Brokaw,Timothy Student Loans Receivable R09. SUMMER SESSION AND OTHER DEFERRED REVENUE UMS Brokaw,Timothy Deferred Tuition-RM-BD A-2