2015/16 PEOPLESOFT YEAR-END CLOSING WORKSHOP. District Financial Services Financial Accounting & Reporting May 2, 2016

Transcription

1 2015/16 PEOPLESOFT YEAR-END CLOSING WORKSHOP District Financial Services Financial Accounting & Reporting May 2, 2016

2 PeopleSoft Closing Workshop Agenda PowerPoint Presentation 1. General Accounting Information 2. Closing Schedules 3. Checklists 4. Closing Entries & Accruals 5. Indirect Costs 6. Accounting Updates Demonstrations 1. OPEB Accounting 2. STRS On Behalf 3. PS GL Trial Balance 4. Payroll Adjustments 5. Interest Calculator

3 SECTION 1 General Accounting information

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5 5 TITLE Add text

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9 SECTION 2 Closing Schedules

10 10 Important Dates- 15/16 Closing June 27 th by 2 p.m. All Deposits to Wells Fargo June 29 th by Noon 1516 Commercial Warrants June 30 th by 10 a.m. Auditor s Transfers to FA

11 11 Important Dates- 15/16 Closing July 7 th by 5 p.m. Finalize all 1516 PO s Enter goods received by June 30th July 8th Financial Accounting: Receipt Accrual PO Rollover

12 12 Important Dates- 16/17 Processing July 1st New FY activity begins No need to wait 3 days! NEW In PeopleSoft! July 6th First day commercial warrants are issued for FY 16/17 July 15 th Period 12 closes at 5 p.m.

13 13 Customer Resource Center (CRC )Training Support Sessions for Year End Closing Purchasing Inventory Finance Open Labs CRC Website

14 SECTION 3 Checklists

15 15 Closing Steps Before June 30th Clear prior year accruals: Accounts receivable Liabilities Due-to/Due-from Clear Suspense through June Inventory Conduct physical count Adjust G/L to match actual Inventory

16 16 Closing Checklist Posted on the Financial Accounting website under Quick Links Run FAR queries, and check by fund/resource: Suspense objects (7999XXX & 8999XXX) are zero Contributions net to zero by fund Suspense resource 9999 is zero (Pre) Encumbrances are zero 50% of objects have been transferred to 8691 Debit(+) 8089 Credit(-) 8691 Object 9140 is zero All Prior year accruals are zero Object 9910 is zero

17 17 Closing Checklist (continued) Run FAR queries, and check by fund/resource: Asset accounts have debit balances Objects Liabilities have credit balances Objects Verify expenditures in resource 8150 meet requirements Lesser of: 3% of 15/16 total general fund expenditures (E.C ) FY 14/15 contribution to resource 8150 SACS Technical checks are passed Review explanations with your district s Consultant or Financial Accounting

18 SECTION 4 Closing Entries & Accruals

19 19 State Aid Accruals 1. Clear PY Accruals: LCFF February June Financial Accounting posts PY recomputations & adjustments to suspense Clear to PY accrual (A/R 9290 or A/P 9590) Difference goes to object EPA PY Adjustment posted to suspense in March AT A /25/16 Clear to object 8019 Don t forget to post the EPA Expenditure report on your district website

20 20 Year-end Calculation: LCFF Accrual- Receivable Projection Actuals lower LCFF Apportionment: P-2 Property Taxes $ 50,000 $ 48,000 Current Year EPA 25,000 24,000 State Aid 25,000 25,000 Total $ 100,000 $ 97,000 LCFF Calculator amount $ 100,000 Receivable due from State $ 3,000 Receivable from the State: Res Goal Func Obj DR CR Due from Grantor Governments $3,000 LCFF $3,000

21 21 Year-end Calculation: LCFF Accrual- Liability Projection Actuals lower LCFF Apportionment: P-2 Property Taxes $ 50,000 $ 55,000 Current Year EPA 25,000 28,000 State Aid 25,000 25,000 Total $ 100,000 $ 108,000 LCFF Calculator amount $ 100,000 Receivable due from State $ (8,000) Liability due to the State: Res Goal Func Obj DR CR LCFF $8,000 Due to Grantor Government $8,000

22 22 Accrual Journal Entries in PeopleSoft NEW In PeopleSoft!

23 23 Reversing Journal Entries in PeopleSoft NEW In PeopleSoft!

24 24 Payroll Accruals NEW In PeopleSoft! Districts will enter payroll data in July, as usual Any FY 1516 time entered (ie. June hourly, overtime, adjustments, etc.) July payroll runs, as usual All time worked prior to July will be posted to June as an accrual This entry will automatically reverse in July July payroll processing will clear the negative expenditures posted as part of the reversal

25 25 STRS, PERS, SUI Accruals FIS Process STRS, PERS, & SUI AT s are posted to suspense in July District accrues amounts in June Debit 9910 Credit 9510 District clears suspense to accrual Debit 9511 Credit 7999 PeopleSoft Process STRS, PERS, & SUI AT s are part of post cash process No-Post AT s No suspense for the district to clear District accrues amounts in June as a reversing entry Debit 9910 Credit 9510 NEW In PeopleSoft!

26 26 Liability Accruals FIS Process Accrue to object 9510 Beginning Balances roll to 9511 Pay liabilities out of 9511 Clear remaining liabilities out of 9511 PeopleSoft Process Accrue to object 9510 Beginning Balances roll to 9510 District options: 1. Pay liabilities out of DO journal to reclass Beg Bal to 9511 & pay out of Reversing journal entries NEW In PeopleSoft!

27 27 Receipt Accrual & PO Rollover NEW In PeopleSoft! PURPOSE: To accrue items received, and roll PO s from 1516 to 1617, for payments to be processed after June 30 th Enter receipts with June date by July 7 th at 5 p.m. Close all PO s that should not roll to 1617 by July 7 th at 5 p.m. Final 1516 weekly PO close process runs July 7 th at 9 p.m. On July 8 th, Financial Accounting will run two processes: 1. Receipt Accrual 2. PO Rollover Districts will receive reports with results

28 28 Liability Accruals- Receipt Accrual Important Notes: Applies to districts with receiving required Purchase Orders Applies to PO s with line items (physical goods to be received) Applies to items physically received by June 30, but not paid by June 30 For all items received at a district location by June 30 th, enter receipts in PS with June date (ie. 06/30/2016) Must be completed by July 7 th at 5 p.m. Financial Accounting will run the Receipt Accrual process on July 8 th and report to districts with results

29 Liability Accruals- Receipt Accrual 29

30 Liability Accruals- Receipt Accrual 30

31 31 Liability Accruals- PO Rollover Important Notes: Applies to PO s in Approved or Dispatched status Process identifies all PO s ready to roll Closes encumbrances in PY Closes PO s in PY Opens encumbrances in CY Requires valid budget (chartstring) to be set up in new fiscal year Opens PO s in CY Payments can now be applied in new fiscal year

32 Liability Accruals- PO Rollover 32

33 SECTION 5 Indirect Costs

34 34 Indirect Costs Definition: General management costs consist of administrative activities necessary for the general operation of the agency, such as accounting, budgeting, payroll preparation, personnel services, purchasing, and centralized data processing Indirect Cost Rate (ICR): percentage of an organization s indirect costs to its direct costs and is a standardized method of charging individual programs for their share of indirect costs Purpose: standardized, efficient way to recover a share of general management costs from individual (restricted) programs

35 35 Indirect Costs Approved rates are posted on the CDE web site: 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 5.11% for FY 2015/ must net to zero by function & object at the fund level 7350 must net to zero by function & object between funds

36 36 Indirect Costs Title I Total Exp $ 10,500 Less Obj 5100 (500) Adj Exp. $ 10,000 ICR 6% Indirect Cost $ 600 Sample entry $ $ 600

37 37 Indirect Costs Food Services Total Exp $ 10,500 Less Obj 5100 (500) Adj Exp. $ 10,000 ICR 5.11% Indirect Cost $ 511 Sample entry $ $ 511

38 SECTION 6 Accounting Updates

39 39 Prop 39 Energy Fund Resource 6230: California Clean Energy Jobs Act Funding based on approved expenditure plan Districts have been encouraged to complete construction, some times ahead of receipt of funds Funding has not been appropriated in the State budget beyond the current year Does not qualify as Accounts Receivable CDE recommends leaving the resource with a negative ending balance at FYE if district has expenditures, but not revenue Contributions are considered one-way transfer of funds, so this is also not a recommended solution

40 40 E-Rate Accounting New guidance in 2016 edition of CSAM See Procedure 560 & November 2015 SACS Forum meeting minutes for further information LEA s should now report costs of telecommunications goods & services at gross E-Rate subsidy is local revenue Fund 01, Unrestricted Resource, Object 8699 Federal Programs exception Only NET expenditure should be charged to the Federal resource Remaining expenditure and corresponding E-Rate subsidy should be recorded in General Fund unrestricted

41 41 GASB 68 STRS On-Behalf Journal Entry Required entry in the District s books before closing Resource 7690 will be valid in all funds with the SACS2016ALL software CDE created Excel template to create journal entry 1516 STRS on-behalf rate: % To calculate the district s STRS on-behalf amount, multiply 2013/14 STRS creditable compensation by the 1516 rate of %, and round to the nearest dollar Find the STRS reports on SDCOE s Retirement Reporting website:

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43 43 NEW Journal Source PAJ Recommended steps Payroll Adjustments 1. Download & save PEDR each month 2. Filter for adjustments a. Suspense b. Funding changes c. Year-end adjustments (ie. EPA) 3. Enter PAJ journal a. Journal Header Description: justification for payroll adjustment b. Journal Line Description: Employee name c. Journal Line Reference: Employee ID 4. Print & file for auditors along with print-out of applicable PEDR lines

44 44 Payroll Adjustments- continued Interfund Payroll Adjustments (transfers that cross funds) Recommended steps 1. Download & save PEDR each month 2. Filter for adjustments a. Suspense b. Funding changes c. Year-end adjustments (ie. EPA) 3. Enter PAJ journal a. Journal Header Description: justification for payroll adjustment b. Journal Line Description: Employee name c. Journal Line Reference: Employee ID d. Offset: Due to/ Due from other funds (9310 & 9610) 4. Enter AT journal to clear DTF entries 5. Print & file for auditors along with print-out of applicable PEDR lines