TO: Administrators DATE: January 27, 2014

Transcription

1 THE UNIVERSITY OF BRITISH COLUMBIA MEMORANDUM Stuart Mackenzie Director, Financial Reporting Suite 200, East Mall Vancouver, BC V6T 1Z1 Tel: (604) TO: Administrators DATE: January 27, 2014 RE: 2014 Year End Timelines and Procedures 6 Pages + Attachments The University s fiscal year-end of March 31, 2014 is fast approaching and similar to prior years, we ask for your assistance to ensure that all charges relating to the current fiscal year 2013/14 are included in this year s financial results. Timelines are extremely tight, as the Provincial Government deadline for year-end financial statements is April 17, Adherence to the year-end cut-off dates is critical to provide adequate time for the preparation of year-end financial statements and audit working papers. To help you with your year-end processing by the cut-off on Friday April 4, we will be running Over/Under Reports on a regular basis. With your assistance, we will be able to meet our provincial reporting requirements. OVER/UNDER REPORTS... 1 YEAR-END SCHEDULE... 2 First March Ledgers... 2 Final March Ledgers... 3 ACCRUALS... 4 PREPAID EXPENSES... 4 AUDIT PROGRAMS... 5 INTERNAL SALES REPORTING... 5 Over/Under Reports Reports are located on the Management Systems Portal in the Financial Applications Home section. Have your Systems Administrator contact peoplesoft.support@ubc.ca if you require assistance in connecting to this. The reports will be run monthly to February, Weekly reports will be run during March, The run date will be in the heading of the report. Daily reports will be run starting April 1, Page 1

2 Year-End Schedule These are the deadlines for the submission or processing of transactions for all University financial activities. Take note of the following: Process, or submit for processing, the majority of transactions in advance of the final dates. Please do not leave it to the last minute. Clearly write 13/14 on the top of each document to be entered into the 2013/14 fiscal year. Departments who regularly key their own items should not send Journal Vouchers, non-web Cash Receipts, Travel Requisitions, Requisitions for Payment or AP invoices to Financial Services for keying at year-end. First March Ledgers Date Day Time Deadlines March 26 Wednesday 8:00pm Smart Forms data entry on the web. March 27 Thursday 10:00am All source documents for any Smart Forms must be received in Payment & Procurement Services (PPS) by 10am. All Requisitions for Payment, Journal Vouchers and non- Web Cash Receipts from departments who regularly send these documents to PPS for data entry must be received in PPS by 10am. However, please send these documents at regular intervals as you receive them, rather than all at once on March 27. All Requisitions for Payment, Travel Requisitions, and Supplies Received Reports for goods and services received on or before March 31 from departments who require wires or drafts as forms of payment. Noon Excel and Interface files for journal loading 4:30pm All Travel Settlement Claims for trips made by March 31 from departments who regularly send Travel Requisitions to Financial Services for data entry must be received in Financial Services by 4:30pm. March 28 Friday Noon March hourly timesheets to Payroll. 8:00pm Web cash receipt data entry March 31 Monday 4:00pm Online Departments: Last day for department online keying of Journal Vouchers, non-web Cash Receipts, Travel Requisitions, and Requisitions for Payment. April 2 Wednesday Noon First March Ledgers distributed. Page 2

3 Final March Ledgers Date Day Time Deadlines March 31 Monday 8:00pm Last day for Web Cash Receipts for 2013/14 April 1 Tuesday 10:00am Vendor set-up requests. Noon Supplies Received Reports for goods & services received on or before March 31 paid through regular cheques. 8:00pm Smart Forms data entry on the web. April 2 Wednesday 10:00am Excel and interface files for journal loading. Noon All source documents for any Smart Forms must be received in Financial Services by noon. All Requisitions for Payment, Travel Requisitions, non- Web Cash Receipts, and Journal Vouchers charging other departments/faculties (inter-department) from departments who regularly send these documents to Financial Services for data entry must be received in Financial Services by noon. However, please send these documents at regular intervals as you receive them, rather than all at once on April 2. April 3 Thursday 4:30pm Online Departments: Final deadline for online departments to enter Journal Vouchers charging other departments/faculties (inter-department). April 4 Friday Noon All Journal Vouchers within the same department/ faculty (intra-department) from departments who regularly send Journal Vouchers to Financial Services for data entry must be received in Financial Services by noon. However, please send these documents at regular intervals as you receive them, rather than all at once on April 4. Revenue and expense accrual requests (if any). Prepaid expense adjustments (if any). 2:00pm Online Departments: Final deadline for online departments to enter 2013/14 invoices, Requisitions for Payment, and Travel Requisitions into the A/P system. 8:00pm Online Departments: Final deadline for keying Journal Vouchers and non-web Cash Receipts within the same department/faculty (intra-department). NOTE: This does NOT include A/P; the A/P deadline is 2pm. April 11 Friday Noon Final over/under reports distributed. May 27 Tuesday Noon Final March Ledgers distributed. Page 3

4 Accruals In most cases, your financial transactions will be recorded in your accounts simply as a result of meeting the processing deadlines. However, if deadlines are missed, material transactions must be accrued so that these are included in the 2013/14 financial statements. An accrual is an accounting entry that is required to ensure that revenues and expenses recorded in the period accurately reflect the revenue earned and expenses incurred in that period. Note: Expenses can only be accrued where the related goods or services have been received on or before March 31, Expense Accrual - Large dollar invoices or expenses (greater than $25,000) that have not been entered into the A/P system which relate to 2013/14 should be copied and sent to Accounts Payable in Financial Services for accrual. Write 13/14 for Accrual on the Invoice/Requisition for Payment copy. 2. Revenue Accrual - For all deposits (using the Web or manual form) relating to 2013/14 fiscal year and made after March 31, make the deposit like normal but send a copy of the Cash Receipt and related back-up to Revenue Accounting in Financial Services for accrual into the 2013/14 fiscal year. Write 13/14 for Accrual on the documents. All accrual requests and related documents need to be received in PPS for accrual no later than April 4, Friday, Noon. Online departments are responsible for keying in their own accrual entries. Accrual for Deans Admin Leave The accrual for Dean s Admin Leave should continue to be recorded by each respective faculty. Please coordinate with Jenny Lum in VPA to ensure accruals are consistent with prior year amounts. Late Accruals of Significant Amounts 1. Expense Accrual From April 5 to April 18, if there are large dollar invoices or expenses (greater than $200,000) relating to the 2013/14 fiscal year that have not been accrued before the April 4 cut-off date, please photocopy the invoice and send to Steve Tian in PPS Financial Systems for manual accrual. 2. Revenue Accrual From April 5 to April 18, if there are large cash receipts (greater than $200,000) relating to the 2013/14 fiscal year for which the revenue has not been accrued before the April 4 cut-off date, photocopy the cash receipt and deposit slip and send to Jean Forward in Revenue Accounting for manual accrual. Prepaid Expenses Prepaid Expense is an accounting term signifying money paid for goods or services before the goods have been delivered or before the services have been completely rendered. A prepaid expense is considered an asset on the balance sheet. As the goods are delivered or the services are rendered, they are recorded on the income statement. An example of a prepaid expense is the unexpired portion of a 3-year maintenance agreement which covers the period from July 1, 2012 to June 30, The prepaid expense amount will be the Page 4

5 equivalent of the maintenance cost from April 1, 2014 to June 30, 2015, the unexpired period. Please review your multi-year service contracts and your advance payment contracts for goods (if any) to determine if prepaid expenses need to be recognized. Where the prepaid expense is material (greater than $25,000), use account code when recognizing the prepayment. Online departments are responsible for keying in their own prepaid expense entries. For departments with no online access, please send all prepayment journals and related documents to Financial Services for recognition no later than April 4, Friday, noon. Audit Programs KPMG will be undertaking an audit of the financial statements of the University for the financial year ended March 31, KPMG has requested certain information for the purposes of expressing an opinion on our financial statements. In order for Finance to provide the information requested and meet other reporting and audit requirements, the attached Audit Programs are to be completed and returned to PPS by April 9, Wednesday, 4:00pm. 1. Accounts Payable Audit Program Key Contact: Michelle Lundrigan GL Account Codes: to Accounts Receivable Audit Program Key Contact: Elizabeth Tsao GL Account Codes: to Internal Sales Reporting Internal departmental services are created when one University department sells goods or services to another. In order to correctly recognize revenues and expenses in the University's consolidated financial statements, internal revenues must be eliminated against internal expenses upon consolidation. In the coming months prior to year-end, please ensure all internal sales are coded correctly and take the time to review what your department has coded as internal in the financial management system. If journals need to be changed, make sure that all adjustments for internal transactions are made prior to year-end. Thank you for your assistance in ensuring a timely and accurate close to our fiscal year-end. Please call me at if you have any questions or concerns on the year-end timelines or procedures. Stuart Mackenzie Page 5

6 THE UNIVERSITY OF BRITISH COLUMBIA 2014 YEAR END ACCOUNTS PAYABLE AUDIT PROGRAM Please complete and submit this form irrespective of the volume or value of transactions. DEPT. NO. DEPT. NAME DEPT ADMINISTRATOR (Name & Tel.) Procedure Response Done By / Date 1 Please type in YES or NO to the following questions. If uncertain, please confirm the answer with the department head. a) Were all invoices for fiscal 2013/14 sent to PPS for processing by noon April 2, 2014? b) Were any invoices accrued in the department as at March 31, 2014? c) If invoices were accrued, were they checked to ensure the invoice related to the fiscal 2013/14 period? d) Does the department record any entries to the GL accounts Deferred Revenue, or , Deferred Revenue year end? 2. For any Accounts Payable balance in a Project/Grant (PG) greater than $99,999, provide the following: a) A listing and/or reconciliation of Accounts Payable of the PG at March 31, 2014 b) Copies of invoices or other supporting documentation for individual amounts including journal entries over $99,999. c) If the department records entries into the Deferred Revenue or Deferred Revenue year end account, a brief explanation of what is deferred and why it is deferred. Please return this by April 9, 2014 to: Michelle Lundrigan Payment and Procurement Services Financial Systems Tel: michelle.lundrigan@ubc.ca Payment and Procurement Services

7 THE UNIVERSITY OF BRITISH COLUMBIA 2014 YEAR END ACCOUNTS RECEIVABLE AUDIT PROGRAM Please complete and submit this form irrespective of the volume or value of transactions if you reported departmental AR balances (FMS GL Codes ). DEPT. NO. DEPT. NAME DEPT ADMINISTRATOR (Name & Tel.) Steps 1, 2, 3, and 4 are for Accounts Receivable (AR) (FMS GL Codes ) that represents amounts that have been invoiced and included in the individual departmental AR balances at March 31, Step 5 relates to Internal Accounts Receivable billing where the client is a UBC department. Steps 6 and 7 are process and variance analysis for the AR balances. Procedure Response Done By / Date 1. Confirm that all cash receipts related to fiscal year 2013/14 were either deposited at the bank by March 28 at 8pm via the Web Cash Receipt or were set up as a receivable in the March accounting period. 2. Forward to Finance a detailed listing of receivables, which supports the March 31 receivable balance (accounts ) for each PG. 3. On the detailed AR list, note the number of days that the receivable has been outstanding. If the item has been overdue by more than 90 days, please do the following: a) Mark an asterisk next to the item where the chance of receiving payment is low. b) If items have a low possibility of recoverability, indicate the reason and detail the steps that have been taken to attempt collection. c) Indicate if you believe the account should be written off as uncollectible. 4. Provide copies of invoice or other supporting documentation to Finance where Program/Grant (PG) accounts have individual balances that exceed $99,999 as at March 31, Payment and Procurement Services

8 THE UNIVERSITY OF BRITISH COLUMBIA 2014 YEAR END ACCOUNTS RECEIVABLE AUDIT PROGRAM Please complete and submit this form irrespective of the volume or value of transactions if you reported departmental AR balances (FMS GL Codes ). DEPT. NO. DEPT. NAME DEPT ADMINISTRATOR (Name & Tel.) Steps 1, 2, 3, and 4 are for Accounts Receivable (AR) (FMS GL Codes ) that represents amounts that have been invoiced and included in the individual departmental AR balances at March 31, Step 5 relates to Internal Accounts Receivable billing where the client is a UBC department. Steps 6 and 7 are process and variance analysis for the AR balances. Procedure Response Done By / Date 5. In the detailed listing of receivables provided to Finance in item #2, identify which receivable relates to an internal AR billing and the account code credited when the internal AR billing is recognized. 6. Provide a description of the process used to determine the amounts receivable, including how the amounts were identified and how you ensured that the balances at March 31, 2014 are not under- or over-stated. 7. Prepare variance analysis by comparing FY2013 and FY2014 AR balances, and provide reasons for changes greater than $99,999. Please return this by April 9, 2014 to: Elizabeth Tsao Research & Trust Accounting Tel: etsao@finance.ubc.ca Payment and Procurement Services