San Diego County Office of Education District Financial Services Financial Accounting/Reporting. welcome PEOPLESOFT YEAR-END CLOSING WORKSHOP

Transcription

1 San Diego County Office of Education District Financial Services Financial Accounting/Reporting welcome PEOPLESOFT YEAR-END CLOSING WORKSHOP 1

2 Workshop Goals To review changes to the closing process due to PeopleSoft. To review year-end closing entries and transactions. To help ensure that the district s financial statements are accurate and ready for an audit. 2

3 Workshop Agenda PowerPoint Presentation 1. General Accounting Information 2. Closing Schedules 3. Checklists 4. Closing Entries & Accruals 5. Indirect Costs 6. Deferred Maintenance 7. Accounting Updates Hands-on PeopleSoft Demos 1. Closing Checklist 2. Clearing Suspense 3

4 Section 1 General Accounting Information 4

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7 The The 2014/ /15 Financial Financial Accounting Accounting and and Reporting Reporting Manual Manual will will be posted be posted on the on the website website in May. in May. We We will will send send an an when when it is it available is available for for download. download. 7

8 Section 2 Closing Schedules 8

9 Important Dates Friday, June 26 Final date for all deposits to Wells Fargo Bank by 2 p.m. Tuesday, June 30 Last day for Auditor s Transfer requests to Financial Accounting by 10 a.m. 9

10 Important Dates Wednesday, July 1 Identify all 14/15 PO s ready to close and enter all goods received by 5 p.m. Thursday, July 2 Final FY weekly PO close process runs at 9 p.m. Monday, July 6 CRC runs receipt accrual and PO roll-over process Friday, August 21 Final day of system access to input FY activity 10

11 Section 3 Checklists 11

12 Closing Checklists Make sure you balance the following prioryear accounts: Accounts receivable Due-to/Due-from Liabilities Suspense Inventory Make necessary adjustments to agree with the physical count 12

13 Closing Checklists Before you call in to close: Make sure District Closing Checklist is done SACS CAT FORM is complete SACS Technical Checks are passed (review explanations with Financial Accounting or your District Consultant) Do not send in a SACS DAT file until after the board meeting 13

14 Fund Check Check GL accounts and suspense accounts Must check all accounts by resource Follow PeopleSoft District Closing Checklist for reports to use for these checks 14

15 Section 4 Closing Entries & Accruals 15

16 Closing Entries - Before Accruals Financial Accounting posts principal apportionment PY recomputations & adjustments to suspense Suspense must be cleared before closing the year Check prior year accrual. Difference must be charged to current year account. Note: FY 2013/14 EPA should be posted to object 8019, refer to Auditor Transfer A dated 3/25/15 Post the EPA expenditure report on your district website 16

17 Income Accruals Income earned in this fiscal year but not received by June 30 needs to be accrued Can only accrue revenues that are collectible within one year Some revenues are not accrued Examples: property taxes, developer fees, mandated cost reimbursement 17

18 LCFF Accruals Cash deferrals are set to end in June Final payment will be based on P2 ADA and property tax projections Accrue final LCFF adjustment at year-end 18

19 LCFF Accruals, continued Year-end Calculation: Projection Actuals lower LCFF Apportionment: Property Taxes $ 50,000 $ 48, /15 EPA 25,000 24,000 State Aid 25,000 25,000 Total $ 100,000 $ 97,000 LCFF Calculator amount $ 100,000 Receivable due from the State $ 3,000 Receivable from the State: Res Goal Func Obj DR CR Due from Grantor Governments $3,000 LCFF $3,000 19

20 LCFF Accruals, continued Year-end Calculation: Projection Actuals higher LCFF Apportionment: Property Taxes $ 50,000 $ 55, /15 EPA 25,000 28,000 State Aid 25,000 25,000 Total $ 100,000 $ 108,000 LCFF Calculator amount $ 100,000 Liability due to the State $ (8,000) Liability due to the State: Res Goal Func Obj DR CR LCFF $8,000 Due to Grantor Government $8,000 20

21 Accounts Payable - PO Receipt Accrual Items received by June 30, but not paid by June 30: Enter receipt accrual by Wednesday, July 1 st 5 p.m. Use June 30 date to accrue expense to 2014/15 21

22 Accounts Payable - Journal Entry Accrual For June invoices, not paid in June (and not receipt accrued) enter reversing Journal Entry with June 30 date and accounting period 998 Adjusting entry: Res Goal Func Obj DR CR Books & Sup xxxx xxxx xxxx ,000 Services xxxx xxxx xxxx ,000 Cap Outlay xxxx xxxx xxxx ,000 C/L xxxx ,000 22

23 Accounts Payable - Journal Entry Reversal Set journal entry to reverse Beginning of Next Period Res Goal Func Obj DR CR Books & Sup xxxx xxxx xxxx ,000 Services xxxx xxxx xxxx ,000 Cap Outlay xxxx xxxx xxxx ,000 C/L xxxx ,000 The 9510 account is now cleared, and there is a negative amount in the expense accounts in Pay the invoice to the expense lines on the PO. If invoice is for a different amount, the adjustment will be reflected in the 1516 expense account. 23

24 Section 5 Indirect Costs 24

25 Indirect Costs Agencywide costs for general management that are not readily identifiable with a particular program but are necessary for the overall operation Examples: Accounting, budgeting, payroll, personnel, purchasing & warehousing TABS Workshop available on web cast at Multiply expenditures in objects less object 5100 by the approved indirect cost rate 25

26 Indirect Costs Approved rates are posted at the CDE web site at: Must use the lesser of the CDE approved rate or a grant stated max each year Food Service programs: use the lesser of the districts approved rate or the statewide average rate of 5.69% for FY 2014/ must net to zero by function & object at the fund level 7350 must net to zero by function & object between funds 26

27 Sample entry (intrafund): DR CR TITLE I GF Indirect Costs Sample entry (interfund): DR CR Food Services GF 27

28 Section 6 Deferred Maintenance 28

29 Deferred Maintenance Funding previously received for the Deferred Maintenance (DM) program is included in LCFF The Deferred Maintenance Fund, Fund 14 in SACS, is classified as a special revenue fund GASB 54 specifies that use of a special revenue fund is appropriate only if a substantial portion of the fund s inflows are restricted or committed revenue sources and expected to continue Many LEA Boards committed the DM revenue and appropriately recognized it directly in fund 14 using object

30 Deferred Maintenance LEAs who receive funding from the State School Facilities Program must contribute 3% of total general fund expenditures including Other Financing Uses to the Restricted Maintenance Account (RMA) 8150 Requirement returns in FY 2015/16 If DM contribution goes to fund 14, then does not count toward 3% RMA requirement If DM is moved back into general fund then general fund expenditures will increase and so will the reserve requirement 30

31 Section 7 Accounting Updates 31

32 Interest Calculator Tool for PeopleSoft Federal Interest SDCOE website: Financial Reporting >>Forms and Documents, Scroll down to Tools Query: FAR_GL_INTEREST_CALCULATOR Beginning January 1, 2015, LEAs can keep $500 per year 32

33 GASB Update GASB 68 - Accounting & Financial Reporting for Pension Plans Effective in Net pension liability will be required on Form DEBT and government-wide financial statements CalSTRS: CalPERS: ctuarial-gasb/home.xml Stay tuned for further guidance 33