Reporting & Analysis Topics Q&A Webinar. Presentation will start at 10 AM

Transcription

1 Reporting & Analysis Topics Q&A Webinar Presentation will start at 10 AM

2 Reporting & Analysis Topics This is YOUR Webinar Please send questions via the Chat Box THE LINES ARE OPEN! Presentation will start at 10 AM

3 Parish Reporting & Accounting Q&A Agenda Page 1 1. Overview of Timeline and Parish Actions Annual Report a) Pages 1-9 b) Pages 10-15, PRL c) Exception Report d) Exporting, Printing, Etc. 3. Accrual Accounting a) Enter Bills/Pay Bills b) Non-Tuition Receivables c) Payroll 4. Chart of Account Updates a) Payroll Accounts b) Class Code 90 c) Other

4 Parish Reporting & Accounting Q&A 5. Tuition Non-TPS 6. Resources a) Arch Bank b) Investment c) Real Estate d) OCS e) Parish Operations f) TPS 7. Other Accrual Considerations 8. Key Contacts for Support Agenda Page 2

5 Archdiocese of Chicago Parish Reporting Timeline 2014/2015 June 5: First Pilot Group of FACTS/QB Interface is started. July 1: First Day of Modified Accrual Accounting &Reporting August: After Submitting A/R, Set Closing Date and mov e the reporting toggle to accrual. Vicariate Financial Planning Meetings For FY16: Date TBD June July Aug. Sept. Oct. Nov. Dec. Jan./Feb. Mar./Apr. June/July August Sept. June 30: Last Day of Modified Cash Accounting & Reporting August 29: Due date for FY14 Annual Report Submission August/September: Start of SMART/QB Interface pilot group. Initial Training on Modified Accrual Reporting Modified Accrual Annual Report for FY15

6 a.) Pages Annual Report Q&A Q: Do we switch the toggle to accrual in QuickBooks after we close the 2014 year and submit our annual report? A: Once the annual report has been reviewed, approved and submitted to the AOC, the parish should switch the toggle in QuickBooks to accrual reporting basis. b.) Pages 10 15, PRL Q: Should the additional reports for the annual report be run in excel or PDF? A: The additional reports that are required for the annual report can be run in either Excel or PDF. It is important to remember that if the parish chooses to submit the reports in PDF, the parish must first export them to Excel where the necessary formatting may be completed before Saving to PDF.

7 b.) Pages 10 15, PRL (cont.) 2014 Annual Report Q&A Q: Why is the Profit & Loss Year to Date Comparison report only requested in accrual? A: The auto-populated annual report pages 1-9 represent the Profit & Loss report on a cash basis. Q: Should the Profit & Loss by Class reports be run on only parent class codes or should it include all subclasses as well? A: The Profit & Loss by Class reports should include all sub-classes used in the parish QuickBooks file, not just the parent class codes.

8 2014 Annual Report Q&A c.) Exception Report Q: Where should monies collected by the parish for the school be recorded? A: Money that is collected for the school should be recorded to account # 3043 School Support Collection and class code 10. If a collection account is used with a school class code, an exception will be flagged and your reports will be inaccurate. Also, when money is sent to the school, please use account #4810 Support to School/Consolidated School and class code 10. The school should record the income to account #3707, School Income from Parish and assign the appropriate school class code. d.) Exporting, Printing, Etc. Open Questions

9 Accrual Accounting Q&A a.) Enter Bills/Pay Bills Q: We do not use the Enter Bills/Pay Bills function, just Write Checks. We pay our bills in a timely manner, so do we need to switch to the Enter Bills/Pay Bills function? A: Use of the Enter Bills/Pay Bills function is required for all parishes at the AOC and has been a requirement for many years regardless of the ability of the parishes to make payment. One of the benefits of using the function include timely representation of liabilities as goods are received and services are provided rather than solely when paid. In addition, there are other benefits of using the Enter Bills/Pay Bills function including duplicate invoice number verification, discount availability, credit memo alerts, etc. Q: On the unpaid bill report Transaction Type should be marked/<<filtered for>> bills because I found that any credits you may have, even if it s from years before it appears on the report. I have to do this because there were some older credits showing before my time and the only way that I could remove them from the report was to make the transaction type as bills. A: All transaction types should be included in the Unpaid Bills Report as of 6/30/2014. A: If the parish has vendor invoices dated prior to 7/1/2013, it is recommended that after filing your 2014 Annual Report, the parish consider deleting the invoices and re-entering as of 7/1/2014. This should not impact your Cash Basis reports submitted as of 06/30/2014. By doing this, the expenses related to the invoices will be recorded in FY15 as these amounts have not been previously reported to local leadership at the Parish on the Profit & Loss statement.

10 a.) Enter Bills/Pay Bills (cont.) Accrual Accounting Q&A Q: How will the modified accrual basis accounting affect the special collections that take place at the fiscal year end. Especially those collections scheduled for next year? A: As indicated on the annual report checklist available on the Parish Operations webpage at under Procedure, Forms and Materials, any special collections at the end of the fiscal year should be entered as bills as of the end of the year using the Enter Bills/Pay Bills function in QuickBooks. Refer to the Review Profit & Loss Reports section of the annual report accounting checklist. This is also consistent with the accounting practice recommended for many years. b.) Non- Tuition Receivables If the parish has customer invoices dated prior to 7/1/2014, it is recommended that after filing your 2014 Annual Report, you may want to consider deleting the invoices and re-entering as of 7/1/2014. This should not impact your Cash Basis reports submitted as of 6/30/14. By doing this, the income related to these invoices will be recorded in FY15 as these amounts have not been previously reported to the local leadership at the parish on the P&L.

11 Accrual Accounting Q&A c.) Payroll Q: What codes should we be using for Short Term Disability, Flex Spending, and Optional Life, Taxes etc.? The codes we have been using are to be deleted or marked inactive. A: Since all parishes at the AOC are required to use IOI for payroll, all tax and other benefit withdrawals are immediately withdrawn from the parish bank account and the liability is satisfied concurrently with each bi-weekly payroll processing. The recommended journal entry for recording payroll is available on the Parish Operations webpage. The entry suggests that the tax and benefit withdrawals are recorded directly to cash. Go to and select Procedure, Forms and Materials then select the Payroll tab for the example payroll journal entry. The entry highlights that the only liabilities which must be recorded relate to the employee premium withholdings which are swept once each month. The accounts related to those withholdings remain as active accounts, specifically 2204 Health Insurance Premium Withheld & 2205 Employee Dental Insurance Co-Pay.

12 Example Payroll Journal Entry

13 a.) Payroll Accounts Open Questions b.) Class Code 90 Chart of Account Changes Q&A Q: What class codes should we use for the 5000 and 6000 accounts? A: Since account numbers for the extraordinary income and expenses have been established for years, there is no reason to identify extraordinary or capital activity via the class code. Rather the class code used in extraordinary and capital transactions should be the one associated with the specific operation of the parish (e.g. 10 for the Church related activities and 50 for School related activities). Reporting on non-operating activity may be done at the account level via customized reports in QuickBooks. Q: We track maintenance income/donation in class code 90. Does the deletion of this mean that funds donated to maintenance will now be assessed? A: Collections for maintenance and corresponding expenses are to be recorded to the correct class code based on the facilities and type of maintenance to which they relate. Extraordinary collections and expenses are not included in operating income which is used to determine the Archdiocesan Assessment. Rather, they are tracked in the 5000 & 6000 accounts.

14 c.) Other Chart of Account Changes Q&A Q: Would it be better to first change account # 4750, Archdiocesan Assessment to account #4751 to migrate all of the old transactions into the sub-account rather than leaving them in the new parent account? A: It is acceptable to follow this approach as long as the parish understands any implications to previously issued reports or memorized reports. Q: Could account #2410, Prepaid Lease, License & Rental Income be used to record deposits on hall rentals, which would be returned after the event if the hall was left in good shape? A: Use of the new account #2410, Prepaid Lease, License & Rental Income, for hall or other events deposits is perfectly acceptable as long as a reconciliation is maintained to ensure proper income recording or deposit refunds. Q: What if we are billing tuition through QuickBooks? Do we still need to add account # 1615, Funds in Transit - Third Party System & account # 1620 Payments at Institution Third Party System. A: All new accounts must be added in QuickBooks whether or not they are currently being used by a parish even if a parish does not have a school. Using QuickBooks to track tuition is not currently recommended by the Office of Catholic Schools.

15 Tuition Q&A 5.) Tuition - Non TPS Q: Our parish has about Religious Education students. What is the best way to track tuition in QuickBooks for this program? A: If a parish has a school using a Third Party System for tracking tuition in Pre-School and/or K-8 programs, the parish is encouraged to use the TPS for tracking tuition and fee billings related to Religious Education students. Otherwise, a parish may use QuickBooks to track tuition. Depending on the level of comfort in using the customer features in QuickBooks, the parish may want to use a separate QuickBooks file for tuition tracking rather than the reporting file to prevent unintentional problems with financial reporting. Also, depending on the individual responsible for tracking and collecting tuition, it may be best to use a separate file to limit access to other parish financial information. Q: What accounts should we use for Religious Education fees both current and deferred? Can we use the ones discussed for school tuition or are they unique numbers? A: The new deferred revenue accounts are exclusive for TPS activity. If the Religious Education programs are billed through one of the TPS systems, it would be included in the new accounts. Otherwise the 2400 Prepaid Tuition & Fees account should continued to be used.

16 a.) Archdiocesan Bank Resources Q&A Open Questions b.) Investment Q: Northern Trust statements were received, but can someone be able to explain what the Miscellaneous charges against the accounts are. A: If you have not received your Northern Trust statements or need help with the explanation of the statement please contact Brian Mannion at or If you need help setting up a user or changing users and/or passwords, please contact David Shelton at Northern Trust c.) Real Estate Q: For leases that are gross leases, I am reporting only net income received which is negative after occupancy expenses. What changes, if any, should I be doing there? A: For any questions related to the composition of your reported lease/license/rental income amount or how to complete the assessment adjustment worksheet, you should contact your VAC for assistance. If you need information on lease agreement terms related to reimbursable tenant pass-through expense items, you may contact Tia Go of the Real Estate Office at tgo@archchicago.org or

17 Resources Q&A c.) Real Estate (Cont.) Q: Should we post water bills given the exemption? A: The water bills should be recorded in QuickBooks, if you need more information regarding the exemption or billing please contact Jen Schanke in the Archdiocese Real Estate Office at or review the Real Estate page of the website at d.) OCS Q: When tuition receivables are brought over into QuickBooks from the Third Party Tracking System, will it be brought over for certain period like a month or a different period? Also what will the credit/debit look like? A: If you are interested in joining one of the next groups to participate in either the FACTS or SMART Tuition Interfacing with QuickBooks, please submit your request to parishoperations@archchicago.org and we will forward those requests to the Office of Catholic Schools. The detailed accounting is provided as part of the pilot group training.

18 Resources Q&A e.) Parish Operations Q: Is the recording and PowerPoint of the webinar available on the Parish Operations webpage? A: The PowerPoint and recording are both available on the Parish Operations webpage. Go to and select Procedure, Forms & Materials then select the Annual & Interim Report tab to access all materials related to the FY14 Annual Report. Q: Who do we contact if we have a problem saving the reports to the I drive? A: For technical issues with Right Networks you can contact them directly at option 2 or support@rightnetworks.com. For QuickBooks related questions, exporting, and accounting questions please contact parishoperations@archchicago.org. The new Help Desk icon located on your Right Networks desktop may also be used to submit a ticket with a technical problems related to Right Networks issues. f.) TPS Open Questions

19 Modified Accrual Considerations As Discussed during the Parish Accounting & Reporting Webinars, most parishes will experience little change to their day-to-day accounting as a result of the switch to modified accrual reporting. However, parishes with the following variables should review the impact very closely and ensure that the parish leadership understands the implications of the change to the accounting and reporting at the parish: Use of QuickBooks reporting file for tuition tracking Tuition Receivables outstanding as of 6/30/2014 Any outstanding customer balances as of 6/30/2014 Invoices and Credit Memos entered and dated prior to 7/1/2014, but particularly 7/1/2013.

20 Key Contacts for Support Right Networks/Cathonet: (888) option #2 or - Technical trouble connecting to your QuickBooks file - Problems with printing or connecting to the report server - Password re-set for Right Networks ID or to set-up or terminate user ID# s. Parish Operations: parishoperations@archchicago.org - Submission or reporting questions on Right Networks - Accounting issues or questions regarding QuickBooks or Archdiocesan procedures. - Issues with exceptions or incorrect values on the Right Networks generated report. - Confirmation of previously submitted financial information. - VAC 1 & 2: Dennis Robak, VAC 3: Yenisse Roman, - VAC 4: Livier Salazar, VAC 5 & 6: Pamela Gutter

21 Upcoming Parish Reporting & Accounting Webinars Parish Reporting & Accounting Webinars Thursday, August 7 th 2:00 PM 4:00 PM Q&A Webinars Reporting & Accounting Topics Wednesday, August 13 th 1:00 PM 2:30 PM

22 Reporting & Accounting Topics Q&A Webinar A FAQ document will be posted on the Parish Operations Website reflecting the Q&A from today. Thanks for joining us!