CA&ES Fiscal Close Part 1. CA&ES Analyst Alley 1

Transcription

1 CA&ES Fiscal Close Part 1 CA&ES Analyst Alley 1

2 Agenda Review campus year-end close deadlines: Clarify which tasks are to be performed by department/cluster account managers vs. Analyst Alley. Review closing issues that are specific to our College. 2

3 What is Fiscal Close? A "cut-off" of all financial activity so the university can generate annual financial reports for itself and stakeholders. The fiscal year is divided into 13 Periods, not 12. The 13th period is when final adjustments (e.g., accruals, deferrals, transfers, etc.) are made. Period 12 is called the June Preliminary and Period 13 is June Final. 3

4 Close Calendar & Checklist Campus provides a detailed checklist and list of deadlines that should be reviewed by each account manager. Checklist: - updated annually revised_%20april_2016.pdf Deadlines: - updated annually (not updated for 16-17) 4

5 What you can do to start your fiscal close process TODAY! 5

6 Resolve Base-budget Deficits Eliminate existing deficit (negative) base budgets to the Full Accounting Unit (FAU) which includes account, subaccount, object consolidation and project code. Generate BA documents (base budget portion) to resolve deficits. Note: elimination of deficit values for one FAU should not result in the creation of new deficit values in other FAUs. Contact Analyst Alley if you have questions about how to identify or resolve your base-budget deficits. 6

7 Balance Staffing Lists The academic portion (Charts 3 & L, Object Consolidations sb01, sb03, sb06, sb05) of the Staffing List is managed by the Dean s Office. The staff portion (Charts 3 & L, Object Consolidation subs) is the responsibility of clusters/departments. Remember to also balance your cluster orgs (e.g., ACL1, ACL2). Staffing Lists within PPS-DS are updated on a daily basis, typically by 10AM each morning. 7

8 Balance Staffing Lists (cont.) (not updated for 16-17) Although the deadline to balance Staffing Lists is ~July 14, the Staffing List PPS-driven database freezes on June 30 th. After June 30 th, departments cannot generate any PPS-driven commitment adjustments that appear on the July 1, 2017 Staffing List. Budget adjustments (BA and YEBAs) that impact the staffing list can be processed through ~July 13 th. Departments/clusters are strongly encouraged to balance their staffing lists by ~June 17. 8

9 Request Salary Savings Send requests for release of salary savings (including administrative-related salary savings) using the Salary Savings Template ( alary-savings) directly to Shannon Tanguay. It is NOT necessary to request academic salary releases for direct charges related to AES Federal Formula Funds (AES-FFF). We automatically release these salary savings to departments. 9

10 Resolve Account Overdrafts Review account balances for all fund types (excluding sponsored projects). Though most overdrafts will carryforward, it is best practice to resolve overdrafts during fiscal close unless a special arrangement has been made. Complete BA/YEBA documents to align current budgets with actual expenditures or GEC/YEGE documents to transfer expenses to another appropriate account to clear the overdraft. 10

11 Resolve Account Overdrafts (cont.) Overdrafts within private gift and endowment funds are moved by Accounting to departmental nongift/endowment accounts during June Final and do not route for department approval. These JVs are problematic since departments cannot reverse them in the new fiscal year to restore the overdrafts to their original FAUs until there are enough funds in the original FAU to cover the overdraft. To identify overdrafts within private gift and endowment accounts, search for Sub Fund Groups PRGIFT and %END% in an Balance Summary (FIS1) report for your Org(s). 11

12 Balance Accounts to the FAU For Chart and Chart L accounts, departmentally controlled object consolidations are sb02, sb07, subg, subs, sub3, sub4, sub5, sub7, sub8 and sub9. For Chart L accounts, departments control all object consolidations. Balances, whether credit or debit, will carry forward into the new fiscal year as re-appropriations. 12

13 Balance Accounts to the FAU (cont.) However, it is recommended that departments balance these object consolidations to the subaccount and project code level during fiscal close. Remaining credits and debits can be moved into a single object consolidation (such as sub8) during June Final. 13

14 Balances in Expired Accounts Use Balance Summary (FIS1) report to identify expired accounts that are out of balance. To isolate only inactive accounts with current-year activity that resulted in a credit or debit balance, select Inactive Only in the Account Status parameter and Non-Zero in the Financial Balance Sign parameter. 14

15 Review Billing ID End Dates Use a Billing ID Lookup (FIS74) report to isolate all active Billing IDs within your organization(s) and consider if there are any that need to have their end date removed or extended or are no longer needed and can be deactivated. Make sure Billing IDs are expired on expired accounts. 15

16 Chart L & funds provided by UC ANR 16

17 Chart L Fund UC Fund is almost exclusively used to pay CE Specialist salaries and benefits. ANR covers the costs of CE Specialist salaries and benefits. Also, when CE Specialists direct charge their salary to grants, they receive release of salary savings in UC Fund ANR expects the balances related to salary savings to also be fully expended each year and any non-ce Specialist benefit expenses charged to these accounts will not be covered by ANR. 17

18 Zeroing out Balances ANR expects that CA&ES will spend all our current-year funds within accounts by June Final. New this year, the total balance of department accounts must be ZERO. ANR will no longer accept overdraft account balances. Analyst Alley will work with ANR to balance the sb06, sb28 and sub6 object consolidations related to the benefits for CE Specialists. 18

19 Chart L Balances Depts need to resolve other object consolidations, including balances in sb28 and sub6 related to any non-ce Specialists paid on accounts. Any credit balances at the department top organization level (AANS, AARE, ABAE, ACL1, etc.) will be drawn off during June Final and returned to ANR. 19

20 Chart L GAEL Overdrafts Departments must cover GAEL costs related to CE Specialist salaries and benefits paid on funds. Two options for generating enough funds to cover these costs include: o Depts that have salary savings due to CE Specialists direct charging to grants can use their portion of the savings to cover the GAEL costs. o Depts without sufficient savings to cover the GAEL costs can contact Shannon Tanguay and arrange a fund swap with ANR. 20

21 Chart L Fund UC Fund supports operational expenses related to CE activities. Accounts in this UC Fund are where departments and clusters spend the CE-related funds received through the RAC formula. Some departments also use these funds to provide CE Specialists with annual allocations. These UC Fund accounts must also be zeroed out by the end of Fiscal Close. 21

22 Chart L Fund Chart L accounts have been established for start-up activity and have a four-year limitation. This was extended from three to four years during for all existing and future CE start-up packages. ANR will not withdraw balances in cases where the four-year limitation to expend such funds has not expired. 22

23 MyTravel System & Expenses MyTravel system end-of-life is scheduled 6/30/2017 All cash advances have been cleared CTS and Pre-trip can continue to be reconciled in MyTravel, but is not required All out of pocket should now be in AggieTravel Research and resolve imported expenses o Unreconciled Imported Transactions (FIS332) o Enter Home Department Code For assistance resolving cash advances and imported transactions for separated employees or inaccessible non-emp. profiles, contact travelhelp@ucdavis.edu 23

24 AggieTravel Expenses Research and resolve cash advances o Outstanding Travel Cash Advances (FIS417) o Enter Home Department Code Research and resolve imported expenses o Unreconciled Imported Transactions (FIS418) o Enter Home Department Code For assistance, access the online help through the new AggieTravel website: or travelhelp@ucdavis.edu. 24

25 Faculty Recruitment Expenses Ensure that recruitment is complete and all recruitment expenses have hit the ledger. request for reimbursement to Shannon Tanguay that includes the total recruitment expenses for the position (include FIS report or spreadsheet). Dean s Office will reimburse 50% of the recruitment expenses, up to a total of $5,000. Reimbursements are provided in UC Fund For CE Specialists, ANR will reimburse actual recruitment expenses up to a maximum of $14,000. Reimbursements will be provided in UC Fund

26 Unit 18 Lecturer Funding Rob Scharf will distribute spreadsheets in early- May to reconcile each dept s use of Unit 18 lecturers and Associate Instructors within this fiscal year. Depts are encouraged (but not required) to use the information provided to track Unit 18s that were hired throughout the year. Recall that all temporary teaching expenses must be recorded within the specific departmental temp teaching account(s), e.g., AxxITMP. 26

27 Unit 18 Lecturer Funding (cont.) In most cases, either the department or a faculty member has agreed to pay for the Unit 18 Lecturer. These funds may be transferred by the department into the AxxITMP-SB01 account. In situations when Childbearing/Adoption Leave is involved, a Request for Teaching Release for Ladder Rank Faculty must be filed in order for the department to receive relief funds. 27

28 Complete Ledger Reviews The Analytical Ledger Review (ALR) (403) report in FIS Decision Support (DS) is a mandatory monthly review for fiscal officers (a.k.a. account managers) The Management Ledger Review (MLR) (404) report is a mandatory monthly review for CAOs/MSOs/Directors For more information, go to 28

29 Self-supporting Activity Balances lf-supportingactivityacctmgmt.pdf Review balances in your self-supporting activity accounts to bring them into compliance with the campus policy that these activities must have a surplus/deficit ratio of 15%. Run FIS Report 193 Statement of Operations to identify the surplus/deficit ratio. 29

30 Self-supporting Activity Balances 30

31 Self-supporting Activity Balances For accounts with greater than 15%, consider moving expenses onto the account that should have been charged. For accounts with less than 15%, consider moving expenses off the account that should have been charged. Also consider if there are any outstanding billings that need to be resolved. For accounts with no current-year activity, consider if the rate should be discontinued. 31

32 Class-related expenses Most departments have two sets of course-related expense accts: Course Materials & Services Fees (CMSF) and accts for all expenses not eligible to be charged to CMSF funds. Review CMSF balances (sub-fund group MATFEE) to confirm expenses are eligible according to the approved CMSF approved budget. Move ineligible expenses to the corresponding acct. Review account balances to confirm if any expenses are CMSF eligible. Move eligible expenses to the corresponding CMSF acct. 32

33 Coming in May: Fiscal Close Part 2 Identify liens to be cleared including Purchase Orders that can be closed Process Purchasing Card Documents (KFS PCDO) and reconcile Purchasing Card statements Accruals & Deferrals KOBL/COBL Pre-Encumbrances (PE) Complete analytical ledger reviews 33

34 Questions? 34

35 CA&ES Fiscal Close Part 2 CA&ES Analyst Alley 1

36 Agenda Preparing for fiscal close Part 2 Cleaning up financial dust bunnies 2

37 Clearing Liens Identify liens/encumbrances that can be cleared or are no longer needed. Use Current Encumbrance Balances (FIS46) First, try to close the document creating the lien. For PO, look up in KFS, click Void Order button. For Non-Purchasing Agreements (NPA), contact the fund manager in Contracts & Grants Accounting. If unable to clear lien via any other method, use lien clearing request form: 3

38 Purchasing Card Documents Check for and process any KFS Procurement Card (PCDO) documents Reconcile purchasing card statements PCDO documents auto-approve after 60 days Check procurement cardholder default accounts for auto-approved transactions, ensure that they have been transferred to the appropriate account with a General Error Correction (GEC) PCDO documents (or related GEC) must include complete information (explanation/attachment) 4

39 Accruals & Deferrals Accrued Income/Expense The income/expense item was received in one fiscal year, but the invoice for that expense was not processed until the next fiscal year. Examples: Expense: Item is processed on an APO or REQ in the current fiscal year, but an invoice from the vendor is not received or processed until the next fiscal year. Income/Reimbursement: Work performed as part of a subaward on grant funds. That work is provided ( received ) during the current fiscal year, but the invoice for that effort is not sent out to the primary award institution and processed for reimbursement until the next fiscal year. 5

40 Accruals & Deferrals (cont.) Deferred Income/Expense The income/expense item was received in one fiscal year, but the goods or service(s) for that expense will not occur until the next fiscal year. Example: An event is occurring in the next fiscal year, but sales for the event (income from the purchase of the tickets for the event) occur in the current/ending fiscal year. Payment is made as a down-payment or pre-trip payment in the current fiscal year for an event occurring in the next fiscal year. 6

41 Accruals & Deferrals (cont.) Required for items exceeding $10,000; optional for items of $1,000 or more; and not be done for items less than $1,000. Multi-campus awards (MCAs) are excluded from this process. 7

42 Accruals & Deferrals (cont.) Why? o Complies with Generally Accepted Accounting Principles (GAAP) o Ensures accurate reporting for year end totals for university income/expenditures for a given fiscal year. o Substantiates signature certification provided by Deans, Chairs, and Business Officers that there are no unrecorded liabilities. 8

43 Accruals & Deferrals (cont.) How? o Use the Auxiliary Voucher (AV) to make these adjustments - o Accounting/Financial Services webpage has detailed how-to s for review: - 9

44 Use of KOBL / COBL Object consolidations KOBL (known obligations) and COBL (committed obligations) are used by departments and the Dean s Office on BA documents to indicate the commitment status of faculty recruitment/start-up funding. The two types of status for faculty recruitment/start-up funding are: 1) authorized but currently without formal documentation KOBL type commitments, and 2) authorized AND with committed formal documentation (signed memos) COBL type commitments. 10

45 When to use KOBL Once the Dean s Office (DO) authorizes a faculty recruitment, the DO establishes a specific project code using the following format: Axxxx (where A = CA&ES and xxxx = the position number e.g. 1306). The DO generates a BA within the provision accounts for its estimated share of the start-up funding. Concurrently, the department initiates a BA for the estimated departmental faculty support, for example graduate student salary. Each BA must use the KOBL object consolidation and the appropriate project code. 11

46 When to use COBL Once a faculty recruitment is complete, the tentative offer letter provides the candidate s name and the detail of financial commitments from the dean and from the department. Based on that information, the Dean s Office updates the project code description with the candidate s last name. The department generates a BA to transfer its recruitment funding commitment from the KOBL object consolidation to the COBL object consolidation and the appropriate project code. 12

47 When to use COBL (cont.) Also at that time, the DO generates a BA to transfer its recruitment funding commitment from the college provision account to the applicable departmental account(s), re-assigns the commitment from KOBL to COBL, and provides for any funding amount revisions. 13

48 KOBL / COBL Fiscal Close It is important to ensure that at the end of the year, only the amount of funding that is unspent and remains obligated is in the KOBL or COBL obj. consolidation. During the June Final period of fiscal close, departments and the Dean s Office use BAs to transfer funds from COBL-Axxxx to other object consolidations (e.g. SUBG, SUB3, SUB4) to cover expenses. 14

49 KOBL / COBL Fiscal Close (cont.) Before Fiscal Close (June Prelim) During final period of Fiscal Close (June Final) 15

50 KOBL / COBL (cont.) The COBL object consolidation will continue to be used until the faculty member s four-year start-up period is exhausted (extended from three to four years in ). All start-up funds are expected to be expended within four years. 16

51 Using Pre-Encumbrances (PE) Can be used at any time to obligate funds for a specific purpose, but for which there is no purchase requisition or purchase order to create a lien on the funds. Can have an automatic reversal date. Once a date is entered, it can be changed, but cannot be removed. Are different from COBL/KOBL. Funds encumbered on a PE are not omitted or protected from campus scrutiny of carryforward balances. 17

52 Complete Ledger Reviews The Analytical Ledger Review (ALR) (403) report in FIS Decision Support (DS) is a mandatory monthly review for fiscal officers (a.k.a. account managers) The Management Ledger Review (MLR) (404) report is a mandatory monthly review for CAOs/MSOs/Directors For more information, go to 18

53 Academic Salary Draw off For Chart 3, accounts, credit balances within the academic object consolidations codes of sb01, sb03, sb05, and sb06, will either be resolved by Analyst Alley or will be drawn off at year-end by a Campus program. Prior to that time, all transfers of credit balances from these chart/fund/object consolidations need to be generated by Analyst Alley. We work with departments to determine why significant deficit or credit balances exist in academic object consolidations codes sb01, sb03, sb05, and sb06 between now and year-end. 19

54 Ledger Carryforward Chart 3 The support object consolidation (sb02, sb07, subg, subs, sub3, sub4, sub5, sub7, sub8, and sub9) balances, whether credit or debit, will carryforward into the new fiscal year, by FAU, as re-appropriations. 20

55 Carryforward Chart 3 New this year, the campus plans to tax 3% of most general fund carryforward balances as of June Final In order to minimize the number of individual accounts that are subject to the tax, the first $5,000 of each account is exempt. Excluded: accounts with Higher Ed Function Code FINA, external liens, UC Fund 19921, 19924, and all 199XX ICR funds (19933, 19980, and 19920). Included: all other state funds and tuition (199XX, 20294, 20295), Clinical Funds: 60103, 60105, 60108, 64100, , More details can be found in the Campus Budget Framework Letter: planning/documents/ / _budget_framework_letter.pdf 21

56 It s Dust Bunny Removal Time Dust bunnies may be cute, but they re irritating and can sometimes be risky 22

57 Balances in Expired Accounts CA&ES has more than 1,370 expired accounts that have an overall balance of zero, but have credits and debits within the sub-account, object consolidation and project levels. We ask that departments work toward zeroing out these accounts to the FAU so they would no longer appear on reports being sent by the campus to our Dean s Office. To temporarily reactivate an account, just extend the end date to a future date that will allow enough time to process the necessary budget adjustment. 23

58 Expire Irrelevant Billing IDs Use a Billing ID Lookup (FIS74) report to identify unnecessary Billing IDs that and can be deactivated. If results are viewed in the Browser, this report will display in red text all those Billing IDs that are active even though they are assigned and are assigned to inactive accounts. These Billing IDs should be deactivated. To avoid having to re-activate the expired account, the Billing ID can be deactivated using the continuation account. This option will be presented when you submit the Billing ID document in KFS. By saying, yes, the Billing ID will be expired. 24

59 Deactivate Irrelevant Sub Accounts Use Sub Account Lookup (FIS6) report search for active Sub Accounts (particularly within your expired orgs). Once you identify irrelevant sub accounts, run a Balance Summary (FIS1) report to identify if there are any credits or overdrafts within them, including at the object consolidation and project code levels. Resolve these balances before deactivating the sub account. Also, check for and expire Billing IDs that report to these sub accounts before deactivating them. 25

60 Expire Irrelevant Accounts These are active accounts with zero balance signs and have had no activity in this fiscal year. While many of these accounts are kept open for legitimate business reasons, departments are strongly encouraged to expire accounts that are not currently needed so there is no opportunity for the accounts to be used in error. 26

61 No More Dust Bunnies 27

62 CA&ES Fiscal Close Part 3 CA&ES Analyst Alley 1

63 Agenda Adjusting income object consolidations Ad Hoc routing to workgroups Using KFS import templates 2

64 Adjusting income object consolidations 3

65 Adjusting INC0 & SUB9 Since the INC0 and SUB9 object consolidations are related to income and not expense, adjusting them works differently than all other expense-related object consolidations such as SB01, SUBG, SUB3, SUBS, SUB6, etc. The most common types of accounts that receive income are: agency; Course Materials and Services Fee; university related event/activity; other university activity accounts; and self-supporting activity accounts (a.k.a. sales and service of educational activity). 4

66 Adjusting INC0 & SUB9 (cont.) Why adjust INC0 and SUB9? Departments are asked to move remaining credits or debits in departmentally controlled object consolidations into a single object consolidation (such as SUB8) during June Final. As a reminder, for accounts coded as UC Fund and 69085, departmentally controlled object consolidations are INC0, SB02, SB07, SUBG, SUBS, SUB3, SUB4, SUB5, SUB7, SUB8 and SUB9. 5

67 Adjusting INC0 & SUB9 (cont.) When processing a Budget Adjustment (BA) that affects INC0 or SUB9, be sure to focus on how you want to affect the expense-related object consolidations and not what will happen to the INC0 or SUB9 consolidations. For example: To increase SUB3 (or any other expense-related object consolidation), then both lines of activity will be entered in the To/Increase half of the BA document. The From/Decrease half of the document will remain empty. To decrease SUB5, then both lines of activity will be entered on the From/Decrease half of the BA document. The To/Increase half will remain empty. 6

68 Example Account Balance Here is an example of a Course Materials and Services Fee account that needs to be balanced for fiscal close. A portion of the credit in INC0 can be moved into SUB3 to clear the overdraft, and the balance remaining in INC0 can be moved to SUB8. 7

69 Example Budget Adjustment Note: the Total =

70 Ad Hoc routing for approval 9

71 Ad Hoc Routing for Approval Some account managers want to see KFS docs as PENDING in FIS Decision Support before routing to others for approval. In 2014, the campus removed the capability to see SAVED documents as PENDING in FIS DS reports. Analyst Alley developed an optional workaround to resolve this problem. 10

72 Ad Hoc Routing (cont.) Goal: Allow any KFS document to show as PENDING in FIS Decision Support reports before the document routes to any other approver. Optional workaround: Create a KFS Group in which the account manager is the sole member and ad hoc route documents to the Group first for approval. 11

73 Ad Hoc Routing (cont.) Benefits: o Initiators decide which documents they want to be able to include in PPS DS and FIS DS reports in advance of normal routing. o KFS documents with a status of SAVED will not be visible on DS reports until they are submitted. o If needed, initiators can recall the document into their action list and make minor adjustments. Detailed instructions will be ed to the FSG listserv. 12

74 KFS Import Lines 13

75 KFS Import Lines During fiscal close when adjustments are needed for many accounts at once or to a single account with dozens of lines that are out of balance, using the import template for Budget Adjustments (BA) in KFS can be a big time saver. Import templates for Budget Adjustments and many other types of documents can be downloaded from: 14

76 KFS Import Lines Same template for BA and YEBA 15

77 KFS Import Lines Headers in the Import Template Save TWO templates One for FROM side of BA doc One for TO side of BA doc 16

78 KFS Import Lines Note that the Import Template and the KFS BA document have the same headers, and the cells are oriented in the same order. 17

79 KFS Import Lines Using Decision Support Report 1( Balance Summary/FIS 1) the following is the suggested setup for query critera Other search criteria are customized NOTE: Be sure to exclude zero balances. Scroll down to bottom of the Balance Summary Query to Output Format: 18

80 KFS Import Lines FIS 1 exported to Spreadsheet. The imported data has lines with and without project codes. 19

81 KFS Import Lines To isolate lines with credit balance to determine which line goes on which side of the KFS BA document, sort by balance (smallest to largest) to pull the credit balances (shown as a minus) to the top. 20

82 KFS Import Lines Open FROM template and copy the section of data that had the minus sign into the template 21

83 KFS Import Lines Delete minus sign from the BALANCE COLUMN (use Find/Replace tool) 22

84 KFS Import Lines Organize your data using the template as your guide: 23

85 KFS Import Lines Delete all blank rows and all headers. 24

86 KFS Import Lines Save spreadsheet: 25

87 KFS Import Lines 26

88 KFS Import Lines 27

89 KFS Import Lines 28

90 KFS Import Lines 29

91 KFS Import Lines 30

92 KFS Import Lines This example shows balancing to FAU and putting the remaining into SUB8 Object Consolidation. The Org Ref ID refers to the Carry Forward and Fiscal year for that carry forward (optional). The document is also balanced. 31