SCHOOL OF NURSING POLICY

Transcription

1 SCHOOL OF NURSING POLICY SUBJECT: Business and Finance TITLE: Month End Process and Financial Statement Preparation Responsible Executive: Dean of the School of Nursing Responsible Office: Business Office CODING: :00 ADOPTED: 7/21/10 AMENDED: 6/28/13 LAST REVIEWED: 6/28/13 I. PURPOSE This policy defines month end process and financial statement preparation for the Unrestricted and the Restricted fund in the School of Nursing. II. ACCOUNTABILITY Under the direction of the Dean or designee, the Business Administrator shall implement this policy. III. BACKGROUND On a monthly basis, the RBHS Finance Department prepares and submits consolidated financial statements including all the academic schools and administrative units for review and approval by Executive Management, Board of Trustee Finance Committee and Board of Trustees. Hence, the School of Nursing is required to prepare and submit its monthly financial statements to the RBHS Finance Office for consolidation, review and approval. IV. POLICY The SN Business Office on a monthly basis shall prepare required financial statements for the School s Unrestricted and Restricted fund as part of the RBHS-wide financial reporting package and submit to the RBHS Finance Office by the scheduled due date. Prior to preparing for the financial statements, the SN Business Office shall adhere to the month end process to ensure that all financial functions including monthly statement review, journal entries preparation, revenue and expense variance analysis and account reconciliation with supporting documentation are completed in accordance with RBHS financial policies and procedures. V. PROCEDURE Month End Process SN Business Office maintains a Monthly Finance Check List by user which indicates the assigned tasks for each financial staff within the Business Office.The Check List with the completion dates and the related reconciliations/analysis are required to be filed in the SN Business Office s shared drive after the month end process is completed. Financial Statement Preparation Page 1 of 6

2 A. Unrestricted Fund UD0000 (excluding Faculty Practice UI in separate policy) Based on the monthly/yearly closing schedules provided by the RBHS Finance Office, the SN Business Office staff shall perform the monthly financial functions as follows: 1. Review of Financial Reports and Transaction Statements a. Review the monthly Departmental Budget Transaction Report (FYR112R) for prior month and research for unusual transactions to determine adjustments, if any. b. Run preliminary reports from Banner Finance system for current month. Review and research for unusual transactions/variances to determine adjustments, if any: a. Revenue Trial Balance Perform monthly Revenue Roll Forward analysis to detect any unusual transactions for the month b. Financial Management Report Review large/unusual variances on the indices and research for unusual transactions to determine adjustments, if any. c. Transaction Detail Report Search for specific charge(s) in question to determine corrections/ adjustment, if any. c. Download the current month year to date non salary expense by account code and perform monthly Non Salary Expense Analysis. Research unusual increases/ decreases by expense type and determine adjustments, if any. Research charges to Other account code for appropriateness and reclassify to proper account code if necessary. d. Review IT requisitions for computer/printer related purchases and PO activities for major purchases on lab/classroom equipment and furniture as well as other renovation related expenses to determine necessary accruals. e. Develop salary report from the Controller s library and perform Salary Verification Analysis to research for potential overpayment or other salary related issues and make necessary adjustments. 2. Journal entry preparation a. Based on SN Business Office Monthly Finance Check List, the financial staff shall review activities on their assigned list and prepare necessary journal entries. b. The finance staff shall ensure that all journal entries are prepared in accordance with Controller s Office and Data Control procedures. Financial Statement Preparation Page 2 of 6

3 c. The finance staff shall ensure that all journal entries are approved by the Business Administrator prior to inputting to Banner system. d. The approved JVs are submitted to the CA Data Control Office for input to the Banner system, especially if involving indices from other schools/units. e. The finance staff shall verify that all journal entries are posted to Banner system correctly. 3. Monthly/quarterly Account reconciliation The SN Business Office staff shall perform the reconciliation on the following: a. Monthly Accounts Receivables and Accounts Payable accounts with proper supporting documentation based on the G/L Account Reconciliation Responsibility Listing provided by the RBHS Finance Office. b. Monthly Tuition and Fee reconciliation from Student Detail Report to the Revenue Trial Balance by program. c. Monthly Plant Fund reconciliations to monitor funding and expenditures related to SN s renovation projects. All account reconciliations have to be updated and tie in with Banner balances after final close and are reviewed and approved by the Business Administrator 4. Monthly/quarterly analysis Tuition, Fees, Salary and Non Salary Based on SN Business Office Monthly Finance Check List, the financial staff shall perform their assigned analyses as follows: a. Monthly Tuition Variance Analysis between actual and budgeted revenue by semester. This analysis shall include enrollment head count, number of credits and the tuition revenue for each program with explanations on significant variance of the program. b. Monthly Student Fee Variance Analysis between actual and budgeted revenue by semester. This analysis shall include the types of the fees and the fee revenue for each program with explanation on significant variance of the program. c. Monthly Salary Variance Analysis between actual and budgeted salary expense with variances grouped by reasons such as savings from vacant positions, delay in hiring or grant savings, etc. d. Monthly Adjunct Faculty and Out of Title Payment Analysis to ensure that all scheduled payments are being paid accordingly e. Monthly Salary Verification Analysis as an audit tool to ensure proper salary payments to faculty and staff. Explanations are provided on major variances. f. Quarterly trend analysis on A/R, A/P; Revenue and Expense with explanations on significant increases/decreases. g. Quarterly Departmental Budget Transaction Statement (FYR112R) download report with calculation of spending % against budget for distribution to Department/Program Administrators for review. h. Quarterly Non Salary Analysis on certain expenditures including travel, membership/subscription, advertising, recruitment, food services purchased, Financial Statement Preparation Page 3 of 6

4 maintenance/repair and equipment purchases for any incorrect or duplicate payments as well as for information purposes. All analyses have to be updated and tie in with Banner balances after final close and submitted to the Business Administrator for review. 5. Monthly financial statement preparation B. Restricted Fund RDXXXX a. After final close, access the following Banner final E-print reports and prepare the Profit and Loss (P & L) statement in the format provided by the RBHS Finance Office. FYRREOB2 Statement of Revenue and Expenditures FYRFMSR Financial Statement Management Report FYRRVTB Revenue Trial Balance The P & L Statement submitted has to tie in with all Banner reports indicated above. b. Prepare Operating Results in summary and detail with explanations for major Salary and Non Salary variances. Based on the monthly/yearly closing schedules provided by the RBHS Finance Office, the SN Business Office staff shall perform the monthly financial functions as follows: 1. Monthly analysis/review of grants and other restricted accounts a. Access monthly E-print report-grant Budget Status Report (FYRGRNT) to perform monthly account analysis on grants and other restricted accounts. b. Look for unusual charges and if charges are made to proper indices/accounts for necessary reclassification. c. Review expenditures for invoicing/billing purpose. d. Identify any deficit spending and resolve negative balance in a timely manner. e. Review fringe benefit charges and overhead allocation f. Review grant activities with PI to determine cost transfer based on personnel effort change. g. Review grants that will be soon expired to determine appropriate actions including no cost extension, re-budgeting or close out activities. h. Review scholarship account for proper disbursement to students i. Review continuing education account for proper recording of revenue and expenses. 2. Monthly journal entry, cost transfer and change in source of fund preparation Financial Statement Preparation Page 4 of 6

5 a. Prior to final close, access Controller s Library report #261 (Restricted Revenue and Expenditures) and prepare the preliminary summary and detail Profit and Loss (P & L) statement including SN and the FXB Center restricted accounts. b. Provide a copy of the P&L with detail reports to the FXB Center Finance Office for review and variance explanations. c. Review monthly and year to date variance between budget and actual on P & L statement to ensure reasonableness and consistency. Investigate any unusual increases or decreases and make necessary adjustments accordingly. d. Based on monthly account analysis and grant review, prepare necessary journal entries and cost transfer forms for any reconciling items. e. Based on grant expiration dates and review with PI on employee effort changes in accordance with grant budget, prepare necessary Change in Source of fund form. f. Ensure that all journal entries, cost transfer and change in source of fund forms are prepared in accordance with Controller s Office/Data Control and Grant Office procedures. g. Ensure that all journal entries, cost transfer and change in source of fund forms shall be reviewed by the SN Business Administrator to be further approved by the appropriate officers indicated on the form. h. The approved JVs, cost transfer and change in source of fund forms are submitted to the Grant Office for approval and input to Banner system. 3. Monthly Financial Statement Preparation a. After final close, access the final #261 report and prepare the final summary and detail P & L statement. Ensure that all information on the P & L statement ties in with the Banner reports. b. Prepare analysis on Grant Expenditure, Other Revenue and Other Expense with explanations on major variances. C. Consolidated Monthly Financial Statement Preparation Restricted and Unrestricted a. Using the format provided by the RBHS Finance Office, consolidate the Unrestricted and Restricted P & L Statements. b. Prepare narratives for the consolidated P & L line items with variances over $100K. Financial Statement Preparation Page 5 of 6

6 c. Submit the financial package including P & L, narratives and a signed copy of the Monthly Financial Statement Preparation Checklist by the scheduled due date to the RBHS Finance Office. By Direction of the Dean: SIGNATURE ON FILE Dean of the School of Nursing Financial Statement Preparation Page 6 of 6