Fiscal Year-end Process 2018 Division of Finance Presentation

Transcription

1 Fiscal Year-end Process 2018 Division of Finance Presentation June 12, 2018 Babbio Room :30 am 12:00 pm

2 Insert Agenda Slide Fiscal Title Year-end Line 1 Closing Insert Slide Title Line 2 1. Stevens Fiscal Year Insert Subhead Line 1 Insert Subhead Line 2 2. How Can You Prepare for the Close? 3. Expense Does it belong in FY18 or FY19? 4. P-Card / Concur 5. Revenue Does it belong in FY18 or FY19? 6. Budget FAQ s & Rollover 7. Contact Information 8. Key Dates 9. Questions 2

3 Stevens Fiscal Year Stevens fiscal year is July 1st through June 30th Year-end close is performed to finalize a snap shot of transactional activity for an entire fiscal year. Ensure that all transactions are recorded, with proper management of June & July cut-off dates. U.S. GAAP (Generally Accepted Accounting Principles) - Follow accrual-based accounting, which records: Revenue when EARNED Expenses when INCURRED (regardless of when cash is exchanged) 3

4 Stevens Fiscal Year Year-end Timeline Prior to June 30th June June 30th July Mid-August through mid- September September December Departments should consistently review their account balances for accuracy and completeness External auditors (KPMG) arrive on-campus to perform preliminary test-work FISCAL YEAR-END Closing the books External auditors (KPMG) arrive on-site to perform final testwork Final draft of Financial Statements Final draft of Financial Statements presented to Audit Committee / Board of Trustees for approval 4

5 How Can You Prepare for the Close? Best practices to engage in throughout the Fiscal Year REVIEW your accounts in KFS for completeness and accuracy, including accounts, object codes and amounts charged Salaries Use a Salary Transfer (ST) e-doc to correct M&S Use a General Error Correction (GEC) to correct SUBMIT P-Card expense reports in Concur on a monthly basis and REMIND supervisors / fiscal officers to approve SUBMIT personal and vacation time in Workday MONITOR open purchase orders Close PO s no longer needed (relieves encumbrances) Amend PO s where increases are needed 5

6 How Can You Prepare for the Close? Best practices to engage in throughout the Fiscal Year CONTACT vendors for invoices if you are aware they have not yet been received (especially for large items). Invoices should be ed directly to A/P if related to POs. CONTACT customers to expedite payments due to us and ensure that they are deposited before the end of June. Do not hold invoices to avoid FY18 expenses. P.S. This is Ivy behind closed doors. 6

7 How Can You Prepare for the Close? Best practices to engage in throughout the Fiscal Year DELGATE! Identify and set up delegates (Fiscal Officers & Organizational Reviewers) in KFS who can perform the necessary actions in the event of your absence. To set up a delegate, in Kuali use Account Delegate Global (primary delegate) or Account Delegate (secondary delegate) and assign the following: Document Type Name (i.e. PREQ, DV, DI, etc.) Account Delegate Start Date Account Delegate Principal Name Account number(s) Optional Can set approval amounts or ranges Action List Preferences Removing a Delegate 7

8 Expense - Does it belong in FY18 or FY19? Scenario Received / Incurred? Payment Made? General Ledger BEFORE 6/30 FY18 Expense Purchased a good / service BEFORE 6/30 AFTER 6/30 FY18 Accrued Expense AFTER 6/30 BEFORE 6/30 FY18 Prepaid Expense AFTER 6/30 FY19 Expense * If the goods were received or the services were performed in FY19, they cannot be charged to FY18 just because the account has unspent budget dollars. Contact your Unit Coordinator or Budget Office for assistance. 8

9 Expense - Salary Transfers S a l a r i e s P a i d f o r J a n u a r y t h r o u g h M a y 2018 Use ST (Salary Transfer e-doc) Transfers must be in FINAL status by Friday, June 29 th. Effort Certification for this period will not begin until July this year, so no transfers can be allowed after June 29 th at 5 PM. S a l a r i e s P a i d f o r J u n e Use ST (Salary Transfer e-doc) if the transfer is in FINAL status by June 29 th, 5 PM. Use the YEST (Year End Salary Transfer e-doc) if the transfer is initiated on or after July 1 st. All Year-End Salary Transfers related to fiscal year 2018, need to be in FINAL status by Wednesday, July 18 th. 9

10 Purchase Orders FY18 purchase requisitions must be in FINAL status by June 15 th allows Procurement time to create the Purchase Order allows the goods to be received on or by June 30 th Open purchase orders should be reviewed by Departments prior to 6/30/18 in order to determine: if invoices need to be submitted (deadline to submit to for payment is July 5 th at 11 am) if the vendor should be contacted to facilitate invoice processing if you do not anticipate to receive the invoice prior to July 31, please contact the Controller s Office to accrue these charges if no additional invoices are expected, the Department can easily close the PO. This will relieve the encumbrance and allow additional budgetary spending. 10

11 Designating the Fiscal Year on Requisitions & DVs For requisitions: Select the fiscal year using the dropdown box in the *Year field based on when the goods will be received or the services performed. For DVs: If the fiscal year in which the services were rendered is not clear on the invoice, please use the Note Text box. Remember to click the Add button to the right of the Attached File box! 11

12 Accruals How are accruals recorded in FY18? All PREQs submitted and approved after July 5 th and DVs approved after June 30 th, will be charged to FY19 by Kuali (KFS). Accounts Payable will review these DVs and PREQs to determine if the expense needs to be accrued for FY18. Finance will accrue FY18 expenses via a Journal Voucher (JV). The JV e-docs will appear in the June 2018 ledger as: A Debit to the department s expense object code (#6XXX) and A Credit to the department s accrued expenses liability object code (#2105). What are the Related Entries for FY19? The JV e-doc will be auto reversed (credit); The DV or PREQ e-doc will record the expense to FY19 (debit); and The Credit from the JV plus the Debit from the DV or PREQ will result in a net expense of $-0- in FY19. 12

13 Prepaid Expenses How will a user designate a prepaid expense for FY18? Please use the prepaid expense object code (#1320): If the payment will be via a DV on or before June 30 th OR If the payment will be made via a PREQ on or before July 5 th If it s not clear why this is a prepaid expense, enter an explanation in the Notes field. Only charge the prepaid object code #1320 if the invoice has to be paid prior to the above dates. What are the related entries in FY19? Department prepares a Distribution of Income and Expense (DI) to reclassify the amount from prepaid expense to expense in July 2018 (FY19). The DI should move amount FROM the prepaid expense object code (#1320) TO your department s expense object code (#6XXX). This can be done as soon as Period 1 for FY19 is open (July 1 st ). 13

14 Accounts Payable will be reviewing all invoices to ensure expenses are recorded in the appropriate fiscal year. FY18 Please put them in the right fiscal year! FY19 14

15 P-Card Transactions / Concur The cutoff date for FY18 P-Card transactions is Wednesday, June 27 th Most charges take hours to post to the PNC account / Concur (depending on the vendor). Any charges posted to PNC after June 30, 2018 are a FY19 expense. P-Card expenses must be assigned to an expense report, submitted to supervisors and have ALL approvals in Concur by Wednesday, July 11 th. This is especially significant for Sponsored Accounts! If the P-Card expense relates to FY19 (i.e. travel, conference, service etc.), there is now an option in Concur to select the following expense types: Prepaid Travel Prepaid Supplies Prepaid Services The department is required to do a DI in FY19 to charge to expense (From 1320, To 6XXX) 15

16 P-Card Transactions / Concur In order for P-Card charges to be properly allocated to your departmental account, the Concur report has to be in FINAL status (approved by supervisors and Concur support). Remember to remind your supervisors to approve! If these reports are not submitted or approved, Finance will still record a Journal Voucher to charge your account. Please note that if this occurs, supervisors and fiscal officers will lose their opportunity to approve or disapprove the transaction and will no longer be able to allocate charges to a Sponsored Account. For those P-Card holders that have outstanding expense reports (not submitted or not approved), you will be at risk for communication of the delinquency to your respective VP/Dean and potential loss of P-Card privileges. If you need assistance, please contact concur@stevens.edu 16

17 P-Card Transactions / Concur For your convenience, there is a Concur Mobile App available for download. Simply follow these steps: 1. After signing into Concur, go to your Profile settings in the top right corner. 2. Under Other Settings in the left column, click Concur Mobile Registration 3. From there, you can send a link to download the app to your device and set up a PIN. The app makes it easy to view charges and create or approve expense reports! 17

18 Revenue - Does it belong in FY18 or FY19? Scenario Provided / Earned? Payment Received? General Ledger BEFORE 6/30 FY18 Revenue Provided a Service BEFORE 6/30 AFTER 6/30 FY18 Receivable AFTER 6/30 BEFORE 6/30 FY18 Deferred Revenue AFTER 6/30 FY19 Revenue * Please contact the Controller s Office for assistance in creating receivables (object cd #1240) and deferrals (object cd #2200), as well as how to recognize the revenue (object cd #4XXX) in FY19 (when it is earned). 18

19 Budget - FAQs Frequently Asked Questions: What if we need to purchase an item or service and don t have enough budget to cover the expense? What if we have enough budget to cover an item or service, but the item or service won t be received/performed until after 6/30? Action / Answer: Reallocate funds within Division. See if funds are available via central, RIA, RCM, etc. Contact Budget Office Contact. What if we are projecting to be over budget for the fiscal year? Contact Budget Office Contact. What are the guidelines around utilizing Gifting Eco-System (GES) funds? What budget funding sources get rolled over into the new fiscal year? Contact Development for gift purpose and Budget Office Contact if pertaining to budget. Sponsored, RIAs, Faculty Start-ups, RCM upside, Central M&S, Gifting Eco-System (GES). When will FY19 budgets be communicated to units? Contact Unit Coordinator When will FY19 budgets be loaded into KFS? July 1 st, 2018 What happens to unused salary budget (vacancy savings)? The FY18 budget had an approved vacancy savings built into the University Budget. All salary savings will be retained centrally. 19

20 Budget - Rollover The Budget Office will now permit rollover of unspent M&S budget funds from FY18 to FY19. Unspent M&S Budget Rollover Policy M&S savings must be on a central appropriations account (i.e. 110xxxx). The Budget Office will review all eligible accounts for rollover at fiscal year-end and transfer funds into a separate rollover account at the divisional budget level. Cabinet Members and Deans will have the ability to direct the allocation of rollover funds within their respective budgets, subject to prior review and approval of the Budget Office. Rollover funds from FY18 may only be used for one-time expenses (vs. recurring expenses) in FY19. The Budget Office will need to receive advance requests for the use of such funds, preferably with at least 30 days notice. Unspent M&S funds resulting from budget transfers-in from either the University s General Contingency Reserve or the President s Strategic Initiatives Reserve in FY18 will not be permitted to rollover. Such funds will be used to replenish the respective reserve funds. Unspent M&S funds resulting from the favorable renegotiation of contracts and reduction of contractual obligations in FY18 will not be permitted to rollover. However, exceptions may be made for repurposing funds to address critical unbudgeted needs in FY19, subject to review by the Budget Office. The President reserves the right to limit total University-wide spending of rollover funds from FY18 in the event that unanticipated budget constraints arise in FY19 that could necessitate a temporary suspension of the rollover program. 20

21 Contact Information - Budget Department Unit Coordinator Budget Office Contact Phone School of Engineering & Science Dennis Palmieri Andrew Silvis 8580 School of Systems & Enterprises Steven Britch Kevin Ascolese 8726 School of Business Anthony Galante Anthony Franchina 8565 College of Arts & Letters Andy Stein Anthony Franchina 8565 Provost Office Cindy Chin Anthony Franchina 8565 Enrollment Management / Auxiliary / Agency (Greek Housing) Kristie O Neill Kevin Ascolese 8726 Communications & Marketing Meagen Henning Andrew Silvis 8580 Information Technology Kevin Ascolese 8726 Development Office Zef Ferreira Andrew Silvis 8580 Facilities & Capital Projects Peggy Guzzetta Anthony Franchina 8565 Human Resources Fionnuala Coyle Kevin Ascolese 8726 President s Office Andrew Silvis 8580 Office of General Counsel Andrew Silvis 8580 Finance Andrew Silvis 8580 Please contact budget@stevens.edu if you have any questions. 21

22 Contact Information Name Department Phone Jamie Houghtaling Controller s Office controller@stevens.edu x3348 Theresa Pascoe Budget Office budget@stevens.edu x3495 Ivy McGee Accounts Payable ap@stevens.edu x5192 Brian Seabold Procurement purchasing@stevens.edu x8722 Steve Kosciolek Sponsored Accounting sponsored@stevens.edu x3496 Omar Trimino Capital Assets capitalassets@stevens.edu x3491 Marcin Ceglinski Finance Support finance-support@stevens.edu x5600 Marcin Ceglinski Concur Support concur@stevens.edu 22

23 Key Dates June 2018 Day Date Deadline Monday 11 Departments can enter FY19 Purchase Requisitions Friday 15 All FY18 Purchase Requisition e-docs including Shop Catalogue are due in FINAL status by 5 PM Friday 22 Disbursement Vouchers (DV s) and Concur expense reports for Sponsored Accounts must have all approvals by 5 PM Tuesday 26 Payroll Account Allocation Changes for the 7/1 bi-weekly payrolls (hourly and salaried) and the June monthly payroll should be entered and approved by NOON in Workday Wednesday 27 Final day for FY18 PCard purchases. Thursday 28 For inclusion in the June 28 th check run, Payment Requests (PREQ) and Disbursement Vouchers (DV s) need ALL approvals by 11 AM Friday 29 Deposits must be made to Student Service Center by 4 PM Friday 29 Salary Transfers for January 2018 through May 2018 need to be in FINAL status by 5 PM Friday 29 Final day for receipt of goods for FY18. 23

24 Key Dates July 2018 Day Date Deadline Monday 2 For DV s, start Indicating the fiscal year for which the goods were RECEIVED or services were performed in the Note Text box (Notes and Attachments tab). Monday 2 Begin using the Year End Salary Transfer (YEST) e-doc, not ST Thursday 5 Last check run for FY18 PREQs that post to FY18 automatically. Need to be in FINAL status by 11 am. Wednesday 11 FY18 correcting e-docs (GEC, DI) must be in FINAL status by 5PM Wednesday 11 Approve P-Card expense reports in Concur by 5PM Thursday 12 Period 13 opens First FY19 check run for both FY18-related PREQs and DVs Thursday 19 Year End Salary Transfers (YEST) for June must be in FINAL status FY18 final correcting e-docs (DI, GEC) in FINAL status by 5PM Friday 20 Period 13 closes to departments Tuesday 31 Last day for entries by Finance (accruals, deferrals, prepaids, etc.) 24

25 Questions 25