Preparing for Year End

Transcription

1 Preparing for Year End Presented by: The Finance & Accounting Team December 2015 Ontario Nurses Association Our Union. Respected. Strong. United. 1 Teleconnects: Interactive Information Sessions Welcome! We have received positive feedback from past Teleconnects We are looking at other interactive connects for the future such as Webinars You can choose the topics you would like us to cover In the future you can expect us to continue Treasurers Workshop (alternate years 2017, 2019, etc) Simply Help 1 on 1 Refresher Treasurer Training Dollars & $ense newsletters Teleconnects/Webinars Our Union. Respected. Strong. United. 2 Sage 50 Quantum Accounting 2016 The Sage version is in! Every October, the annual Sage 50 version arrives Do not install the 2016 version, continue to click on the remind me later message when exiting Sage 50 We will be installing the 2016 version on your new computers in January 2016 v1.5 of the Sage 50 Intelligence Reports will be installed for 2016 For those who have installed the 2016 version on your old laptop this is OK No significant changes to Sage 50 Version 2016 Sage 50 Workbook updates to be provided in 2016 Our Union. Respected. Strong. United. 3 1

2 Preparing for the Year End Close in Sage 50 Before performing a year end close in Sage 50, have the following tasks completed by December 31st: Complete all bank reconciliations from January to November Record all regular transactions (deposits, pay expenses, payroll, month end journal entries) ti )from January 1 st to December 31 st Print payroll records for the year (Employee Detail Report) Print the Payroll Remittance for the Year Print the General Ledger Report for the Year Our Union. Respected. Strong. United. 4 Preparing for the Year End Close in Sage 50 Backup your data: On December 31 st make a backup copy Name the file 2015 YEBackup Do not send this copy to Simply Help This copy is before the Year End adjustments Our Union. Respected. Strong. United. 5 Perform the Year End Close, Start New Year On January 1 st, change the session date Starting the new fiscal year window will be prompted, select YES to perform another Backup copy Our Union. Respected. Strong. United. 6 2

3 Perform the Year End Close, Start New Year Backup on January 1 st : Rename the backup file to Backup Do not clear old data Update Locking Date window should appear Always a Dec 1 st, change year only Check settings if not prompted Our Union. Respected. Strong. United. 7 SENDING YOUR YEAR END BACK UP TO SIMPLY HELP Send your year end backup file to Simply Help after YE adjusting journal entries are posted YE backup file is due on or before March 31 st Contact the Simply Help Desk for any assistance Our Union. Respected. Strong. United. 8 Year End: What s to be Completed Contact Employers for outstanding ULOA invoices Check your Local Policy for compliance of Members submission of expenses Cut off date for 2015 expenses to be paid January 15 th, 2016 Copies of items paid in 2016, related to 2015 expenses give to auditor Our Union. Respected. Strong. United. 9 3

4 Auditor Meetings First and Second Auditor Meeting November or December Preliminary Provide ONA Local Audit Engagement Letter Attach Appendix A Year End Audit requirements Attach General Audit items Sign Auditor s Engagement letter (contract) January 2 nd meeting Transfer of 2015 physical & electronic files Provide 2016 documents for items paid, bank statements, etc. Our Union. Respected. Strong. United. 10 Final Auditor Meeting What to expect at your final meeting February or March Final Review Audited Financial Statements Review your statements Financial Statements signed by Local Audit Committee Opinion Letter Auditor s opinion that the financial statements present fairly in all material aspects of the Local s financial position and its operations at year end Management Letter Auditor s report on Local s internal controls, matters of significant deficiencies etc. Our Union. Respected. Strong. United. 11 Final Auditor Meeting (cont d) Audited Financial Statements & other items: 3 original hard copies of the final Audit Must be original not PDF or photocopy 1 signed copy must be sent directly to ONA no later than March 31st 2 signed copies to be retained by the Local Canadian GAAS required (Generally accepted auditing standards) Auditor s Independent Report is an audit opinion statement not a qualified audit opinion Our Union. Respected. Strong. United. 12 4

5 Final Auditor Meeting (cont d) Audited Financial Statements & other items: Adjusting journal entries dated Dec 31, 2015 Reversing journal entries dated Jan 1 st, 2016 Ensure the 0100 and 0200 fund numbers are identified on the adjusting journal entries T4 s and EHT Annual Return completed? T4 submission deadline Feb 28 th EHT Annual Return deadline March 15 th Invoice for services rendered Our Union. Respected. Strong. United. 13 Final Auditor Meeting (cont d) Management Letter: Auditor to send management letter to ONA Treasurer is responsible to share letter with Local Executive and to ensure issues will be addressed and corrected Auditor to provide suggestions for matters of interest and where Locals need change for improved accountability Auditor to report back on compliance with mandatory and Local policies Treasurer & Auditor will review prior year letters Opinion letter/audit communication with management Our Union. Respected. Strong. United. 14 What to ask your Auditor What to Ask? Ask: Why your Sage 50 financial statements doesn t match the audit About the adjusting entries, if you are not sure what they represent About the categorized expenses on the Income Statement if you feel they are inaccurate Here is an example: Our Union. Respected. Strong. United. 15 5

6 Actual To Date Budget For The Year Difference Last Year To Date Membership Revenue 205, ,420 (23,309) 206,806 Investment Income Strike Funds FundRaising Events Provincial Expenses 29,249 46,170 16,921 12,191 Labour Relations Expenses 22,656 21,200 (1,456) 27,469 Local Meeting Expenses 32,781 39,280 6,499 23,652 Local Administration 59,875 94,370 34,495 58,081 Other Local Expenses 29,094 20,297 (8,797) 28,007 Communication 3,027 8,000 4,973 1,622 Education Expenses 30,662 29,300 (1,362) 19,052 Honoraria 11,805 30,000 18,195 12,815 Nursing MRT/Week Expenses 3,323 5,500 2,177 2,732 Amortization of Capital Assets (107) 93 Salary Replacement Paid Actual To Date Budget For The Year Difference Last Year To Date Membership Revenue 205, ,420 (23,309) 206,806 Investment Income Strike Funds FundRaising Events Provincial Expenses 29,249 46,170 16,921 12,191 Labour Relations Expenses 22,656 21,200 (1,456) 27,469 Local Meeting Expenses 32,781 39,280 6,499 23,652 Local Administration 59,875 94,370 34,495 58,081 Other Local Expenses 29,094 20,297 (8,797) 28,007 Communication 3,027 8,000 4,973 1,622 Education Expenses 30,662 29,300 (1,362) 19,052 Honoraria 11,805 30,000 18,195 12,815 Nursing MRT/Week Expenses 3,323 5,500 2,177 2,732 Amortization of Capital Assets (107) 93 Salary Replacement Paid What to ask your Auditor What s the difference? Local XXX Operating Fund 100 Income Statement Comparison of Actual to Budget January 1, 2013 to December 31, 2013 Revenues Total Revenue 205, ,420 (23,134) 206,997 Expenses Ontario Nurses' Association Local XXX Statement of Revenues, Expenditures and Accumulated Net Assets Revenues Ontario Nurses' Association Dues 217, ,806 Interest and Other income , ,997 Expenditures Provincial Meetings 39,249 12,191 Local Labour Relations 22,656 27,469 Local Meetings 32,781 23,652 Local Administration 59,875 58,081 Local Other 29,094 28,007 Communication 3,027 1,622 Education 20,662 19,052 Honoraria 11,805 12,815 Nurses' Week 3,323 2,732 Amortization , ,714 Excess (deficiency) of revenues over expenditures (4,896) 21,283 Accumulated net assets at beginning of year 126, ,261 Total Expense 222, ,117 71, ,714 Surplus (Deficit) (17,292.50) (65,697) 48,404 21,283 Accumulated net assets at end of year $ 121,648 $ 126,544 Our Union. Respected. Strong. United. 16 What to ask your Auditor What s the difference? Local XXX Operating Fund 100 Income Statement Comparison of Actual to Budget January 1, 2013 to December 31, 2013 Revenues Total Revenue 205, ,420 (23,134) 206,997 Expenses Ontario Nurses' Association Local XXX Statement of Revenues, Expenditures and Accumulated Net Assets Revenues Ontario Nurses' Association Dues 217, ,806 Interest and Other income , ,997 Expenditures Provincial Meetings 39,249 12,191 Local Labour Relations 22,656 27,469 Local Meetings 32,781 23,652 Local Administration 59,875 58,081 Local Other 29,094 28,007 Communication 3,027 1,622 Education 20,662 19,052 Honoraria 11,805 12,815 Nurses' Week 3,323 2,732 Amortization , ,714 Excess (deficiency) of revenues over expenditures (4,896) 21,283 Accumulated net assets at beginning of year 126, ,261 Total Expense 222, ,117 71, ,714 Surplus (Deficit) (17,292.50) (65,697) 48,404 21,283 Accumulated net assets at end of year $ 121,648 $ 126,544 Our Union. Respected. Strong. United. 17 What to ask your Auditor When comparing the statements you notice. Revenues don t match Why did the auditor adjust the revenues? Most likely, the December dues revenues (which is deposited at the end of January) was not entered in Sage 50. This adjusting entry is correct Expenses don t match Why did the auditor adjust the Provincial Meetings & Education? You will need to ask the auditor some questions which meeting did he/she adjust and why? In the past, Auditors have made adjustments regarding PCM & Education. The Auditors don t realize the 3 rd day of the PCM is an Education Day. Misclassification of entries don t have an impact to the bottom line but does have an impact when analyzing on a line by line. Has an impact for Supplementally Funded locals Our Union. Respected. Strong. United. 18 6

7 Review with your Auditor Once you ve reviewed the statements with the Auditor. Come to an agreement about the entries If you don t agree with his/her adjustment to Provincial Meetings & Education (as per the example) discuss it and let the Auditor understand why it should be adjusted Once statements are revised and you agree with them, ensure you get the revised adjusting entries Sign the audited financial statements It s your responsibility to ensure the Sage 50 statements agree with the audited financial statements Once the adjustments are entered in Sage 50, send a back up along with the audited financial statements to ONA Central. Remember the deadline is March 31 st Our Union. Respected. Strong. United. 19 Auditor Blues Are you unhappy with your auditor? Why would you want to change your auditor? They do not understand the nature of our business They charge too much They do not follow through on your requests You can change your auditor: Review what your Local policy says Who and when did you approve No matter what you must: Motion, Vote, Approve, Minute How to find a new auditor: Speak to other Locals in your area Ask Simply Help Our Union. Respected. Strong. United. 20 Thank You Our Union. Respected. Strong. United. 21 7

8 December 2015 Treasurer Teleconnect 85 Grenville Street, t Suite 400, Toronto, ON M5S 3A (in Toronto) (toll free) simplyhelp@ona.org Find us on: Copyright 2015 Ontario Nurses Association Our Union. Respected. Strong. United. 22 8