A guide to the preparation of Funds Provider Statements

Transcription

1 A guide to the preparation of Funds Provider Statements Overview... 2 STEP 1 Which statements do we need to prepare?... 2 STEP 2 - Run the Statement... 2 STEP 3 Review the Statement... 2 STEP 4 - Prepare Adjustment Journals... 3 STEP 5 - Re-Run the Statement... 3 STEP 6- include any notional Adjustments... 4 STEP 7 Finalise Yes/No statement and send to SPF... 4 APPENDIX 1 - How to run a Funds Provider Statement... 6 APPENDIX 2 How to process an adjustment journal APPENDIX 3 Reporting against budget lines Page 1 of 16

2 Overview This document outlines the procedures for the production of Statements of Income and Expenditure for the University s Special Purpose Funds. Refer to Responsibility of Research & Business Office for further background of key responsibilities in relation to the financial management and reporting of special purpose funds. STEP 1 Which statements do we need to prepare? Statements for Q and S funds are to be prepared by College/Admin Division Business Offices, with the exception of foreign currency, ARC and NHMRC statements, which will be prepared by SPF. SPF sends out a list each month of statements due based on Milestone date from ARIES. The list includes notes on which statements will require to be internally or externally audited (based on the Contracts tab field in ARIES). All statements must be sent to SPF for certification within the timeframe required by the contract (refer step 7 for further details). STEP 2 - Run the Statement - Funds Provider statements are generated in accordance with the ANU Budget Class Tree. - Statements can only be run from the 1 st of any month to the last day of the month, i.e. cannot run from 15 th June to 15 th September. - Funds Provider Statements are accessed via the nvision Control Centre in ESP Finance. - For more details on this process please refer to Appendix 1. STEP 3 Review the Statement College/Admin Division Business Offices are responsible for reviewing the Funds Provider Statement, reviews should cover off the following issues as a start: - Does the opening balance of the statement equal the closing balance of the previous statement? - If it is a Whole of Life statement is the opening balance nil? - If there were adjustment journals in the previous statement (with the corresponding reversal adjustment journals appearing in the current statement), do the relevant Actuals journals appear in the current statement to offset the adjustment reversals, and if not should another adjustment journal be processed for the current period? - Is the expenditure charged to the project eligible expenditure in accordance with the relevant Funding Agreement? - Is there any restriction on budget variations in the grant agreement (eg. salaries may not exceed budget by more than 10%), and if the statement contains significant budget variations have you spoken to the CI to ascertain further background info (eg. has a variation request been lodged? Should the excess expenditure be allocated elsewhere etc.) - Is reporting against budget lines required? If so this must be undertaken by the College/Admin Division Business Offices. Refer to Appendix 3 for further details - Is a specific format of statement required by the Funds Provider, if so a completed version of this statement should be sent to SPF together with the Funds Provider Excel Worksheet. Page 2 of 16

3 STEP 4 - Prepare Adjustment Journals An Adjustments ledger has been created for recording adjustments made to the statements. Adjustment journals should be processed to reflect actual entries that will be made to the ledger at a date past the reporting end date to ensure that the Funds Provider Statement reflects the financial status of the project at the time it is to be reported upon. Adjustments are often required to be made to the statements, due to unpaid invoices, incorrect ledger codings, internal transfers etc. Where adjustments will be followed by actual ledger actions (e.g. payment of an invoice, journal correcting transactions), an adjustment journal will need to be processed. A suspense account, 0000J, has been created for use with adjustment journals only. This account is to be used for the GST on unpaid invoices, and other adjustments as outlined below. The most common types of adjustments required are: 1. Unpaid invoices where an invoice remains unpaid at the statement end date, an adjustment will be required to offset the 1770 balance against the income account. An example of the entries required are: Dr 9994 S $12, Dr 0000J $1, Cr 1770 S $13,750 The entry to 0000J is for the GST on the unpaid invoice. Include the invoice number as the reference on the Adjustment journal line. 2. Incorrect Ledger codings where transactions are processed to the incorrect ledger codes. An example of the entries required are: Dr 5470 S A2 $ Cr 5470 S $ Include the Actuals journal number as the reference on the Adjustment journal line. 3. Accrual Entries to include transactions processed after the reporting date, that relate to the reporting period. An example of the entries required are: Dr 5001 S $ Cr 0000J $ Include the voucher/hr reference number as the reference on the Adjustment journal line. Note: adjustment journals do not affect the Actuals or Financial Ledgers. Therefore, you may still be required to process a journal to move transactions etc. STEP 5 - Re-Run the Statement Once the adjustment journals have posted, you will need to rerun the statement to incorporate the adjustments. Follow the steps in Appendix 1. The adjustment entries can now be seen in the adjustments column on the Statement worksheet, and also on the Journals(ADJ) worksheet. Page 3 of 16

4 STEP 6- include any notional Adjustments Funds Provider Statements may require notional adjustments after any adjustment journals are posted. A notional adjustment is an adjustment that is entered into the Excel workbook of Funds Provider statement in the Adjustments column. It is not recorded anywhere in ESP Finance. A notional adjustment is most often utilised in situations where an Actuals journal will not be posted to reflect the adjustment at any future point. IMPORTANT NOTE: Please do not make any changes to the statement worksheet generated by ESP finance. Make a copy of the worksheet within the Excel Workbook and name it something different (eg. Revised statement), and make changes to this sheet. Funds Provider statements are protected, but there is no password so they can be edited. It is critical that the integrity of the initial statement generated by the system is maintained. Examples of notional adjustments include: 1) Offsetting transfer transactions to offset the transfer transactions against a more appropriate internal purchases code. An example of the entries required are: Transfer of lab costs Cr 7000 S $ Dr 8507 S $ ) Offsetting income & expenditure transactions such as interest expenses, and cost recoveries from third parties. Interest expenses should be offset against interest income, for example: Dr 9520 S $38.73 Cr 5824 S $38.73 Cost recoveries from third parties, should be offset against the related income or expenditure lines. For example: Contribution to airfare Dr 9200 S $ Cr 5400 S $ The notional entries should be documented and explained as a note to the Funds Provider Statement STEP 7 Finalise Yes/No statement and send to SPF Once completed, all statements are to be forwarded to SPF for checking and certification. The following documentation must be submitted to: spf@anu.edu.au - Excel worksheet and - pdf of the signed YES/NO statement - Funds provider format of statement (if required). Note this must reconcile with the ESP Funds Provider Statement. SPF will not accept statements unless the YES/NO that has been signed by both the Chief Investigator and the Business Officer. Page 4 of 16

5 SPF will review the statement, arrange for audit if required (noting that audit queries will be directed to the relevant Business Office). Once the statement is finalised, SPF will send the statement to the Funds Provider and update the Financial Milestone in ARIES. If there is any other process for submitting the Funds Provider Statement (eg. certified statement needs to be returned to CI for inclusion in the Final report, or statement needs to be lodged online etc), this needs to be clearly indicated when the statement is submitted to SPF. Page 5 of 16

6 APPENDIX 1 - How to run a Funds Provider Statement Step 1 To access the Funds Provider Statements, navigate to: Reporting Tools, nvision Control Centre The nvision Control Centre page opens. Step 2 Select: hyperlink, and enter the following information: Start Month: The Calendar month at which the statement is to start. Year: i.e End Month: The Calendar month at which the statement is to end. Year: i.e.2011 DEPTID: Enter Department Code FUND_CODE: Enter Fund Code (Q or S) PROJECT_ID: Enter Project/Grant code (to include all sub-projects in the statement, select the checkbox) The Adhoc nvision Request parameters page is completed. Page 6 of 16

7 Note: Statements can only be run from the 1ST of any month to the last day of any month. I.e. cannot run from 15th June to 15th September. Step 3 Click: to create the nvision reports. The nvision Control Centre page displays. Page 7 of 16

8 Step 4 Open the Process Monitor via the hyperlink Process Monitor to view the progress of the report process. Click: to refresh the page, until you have a Run Status of Success, and Distribution Status of Posted. Process runs to success. Step 5 Return to nvision Control Centre page via the Go back to nvision Control Centre hyperlink, and open the Report Manager from the hyperlink Report Manager, or alternatively on a new page via Reporting Tools Report Manager. The Report Manager page displays. Step 6 Select the hyperlink ANU87923 XXXXX Y ZZ.xls (where XXXXX is the DeptID, Y is the Fund Code and ZZ is the Project/Grant code), to open the report. The statement displays. Page 8 of 16

9 Note: The rows and columns can be collapsed before sending the statement to the Funds provider by clicking on. There are 6 worksheets: Refer to the next section for how adjustments are processed. Donor Letter letter to be sent to Funds Provider with statement. CoverSheet similar to the Yes/No statement, and requires Business Officer and Chief Investigator certification. Statement Statement of Income and Expenditure Journals(ACT+FIN) Actuals and Financials Ledger transactions for statement period Journals(ADJ) Adjustment journals for the statement period ProjGrt List of Projects included in the statement. Note Report(s) are created and saved into your Report Manager. Select the file you wish to open and double click on the file name. You will then see either of the following Excel messages appear referring to Macros: Select Yes to this message. Or: Page 9 of 16

10 Select Enable Macros and the Report will then open within nvision. Step 7 Save the file to your local directory by selecting File, Save As, and selecting the appropriate directory. File saves. Page 10 of 16

11 APPENDIX 2 How to process an adjustment journal Step 1 To access Create Journal Entries, navigate to: General Ledger, Journals, Journal Entry, Create Journal Entries The Create Journal Entries search page appears. Step 2 Enter or select the following Business Unit: ANUGL Journal Date: Should be the last date of the statement period. Ie if your statement is being run to 31 December 2011, then the journal date should be 31/12/2011. Click: Note: Step 3 The Journal Header page displays. Adjustment journals are set to automatically generate a reversing journal as at the 1st of the following month. I.e. if the journal is dated 31 December 2011, then an automatic reversing journal will be created dated 1 January Enter or select the following: Long Description: Adjustments for..(detail reasons for adjustments) for period xx to xx Ledger Group: ADJUSTMENT Source: ADJ Reference No: Optional (Does not appear in the Ledger) The Journal Header has now been completed. Page 11 of 16

12 Step 4 Click: to proceed to the Journal Entry Lines page. Complete the following information for each line (press <Tab> between fields): Account: Enter natural account code Fund: Enter Fund code Dept: Enter Department ID Project: Enter Project/Grant code Base Amount: Enter base amount Reference: Enter relevant invoice no., journal ID or voucher no. Journal Line Description: Enter description of the adjustment You can add additional journal lines by entering the number of additional lines required in the Lines to add field, and then Click: Enter the required information for each line. Correct data entry. Page 12 of 16

13 Step 5 Click: to save, then Click OK to the message. Click: to Edit and Budget Check the journal. The journal is edited and Budget Checked, the Journal Status and Budget Status should now show as V. (If an error did occur on journal edit, the Journal Status would go to E. Any error messages can then be viewed by going to the errors page) Note: Adjustment journals do not require approval. Step 6 Select: Process Print Journal to print a Journal Cover Sheet. An Output Destination field displays. Step 7 To send the output directly to printer: Enter an Output Destination of: \\printer\(esp Printer ID) (eg. \\printer\t******) If you don t know your ESP printer ID please contact your Local IT Support. Page 13 of 16

14 To create a.pdf file in Report Manager Leave the Output Destination field blank. Select: The Journal Print process is initiated. Step 8 Open the Process Monitor via the hyperlink Process Monitor to view the progress of the print job. Refresh the page until you have a Run Status of Success, and Distribution Status of Posted. Process runs to success. If you provided an Output Destination in Step 9, your Journal Cover sheet will now have printed, and you can go on to step 11. Step 9 Return to the Create Journal Entries page, and open the Report Manager from the hyperlink Report Manager, or alternatively on a new page via Reporting Tools Report Manager. The Report Manager page displays. Page 14 of 16

15 Step 10 Click: the GLC7501-_XXXXXX.PDF (where XXXXXX is the Process Instance number) hyperlink to view the printable form of the journal cover sheet. Click:, or select File, Print to Print out the Journal Cover sheet. Step 11 The Journal Cover sheet prints. Select: From the Process dropdown list, select Post Journal to post the journal to the Adjustments ledger (alternatively, the journal will post automatically overnight). The journal is posted to the Adjustments ledger, and Journal Status updates to P. Page 15 of 16

16 APPENDIX 3 Reporting against budget lines Funds providers are increasing requiring the ANU to report grant expenditure against budget lines. It is important that finance offices are involved at the point when budgets are established to ensure mechanisms are put in place prior to expenditure being incurred to enable the ANU to meet its obligation of reporting against budget. A number of options (some of which are listed below) are available: - Subprojects are often utilised to assist with reporting against budget lines when budgets are based on milestones. - Actual and Adjustment journals may be copied into a new worksheet, with a new column inserted titled budget category. The relevant budget category per the Grant agreement is then noted against each transaction. A pivot table/subtototals can then be used to generate the financial report against budget for the funding body. (NOTE: Adequate transaction descriptions are critical if this method is to be used). - Sometimes the ANU s accounts codes are sufficient to enable classification into budget categories. In this case a copy of the statement should be made and the accounts lines in the financial report should be regrouped according to budget categories. Whatever method is used, there must be a clearly documented audit trail to enable the balances in the report against budget to be traced backed to the relevant supporting balances/transactions in the financial statement produced by ESP. Page 16 of 16