SECRETS OF YOUR SUCCESS, YEAR-END CLOSE Michelle Cardona, Interim GAAP and Tax Manager Cal Poly Pomona

Learning Objectives List key review processes that help to reduce problems at year-end Identify documentation utilized in the preliminary planning process Identify communication methods utilized to disseminate information to both internal and external parties Define the campus process to determine Legal vs. GAAP accruals APRIL 2016YEAR-END LEGAL TRAINING 2

Our Campus – Just the Facts 20,789 students as of Fall 2015 Quarter campus 4/10 schedule beginning mid-June Cost recovery – Option 1 University Accounting structure: General Ledger: 3 Accounts Payable: 6 GAAP & Tax: 3 Cash Management: 1 APRIL 2016YEAR-END LEGAL TRAINING 3

2014 Stats APRIL 2016YEAR-END LEGAL TRAINING 4

2014 Stats APRIL 2016YEAR-END LEGAL TRAINING 5

Our Strategy Accounting review Monthly Annually Preliminary planning Administrative Processing Timeline Legal Year-end Closing Schedule Communication External Internal Accruals Legal vs. GAAP APRIL 2016YEAR-END LEGAL TRAINING 6

Accounting Review Monthly Account 580xxx review Manual JE & BI activity Appropriate fund and account CSU 485 review Allowable vs. unallowable accounts (option 1) Capital asset review Program code 07/Account 607xxx Expenditures >$5,000 APRIL 2016YEAR-END LEGAL TRAINING 7

Accounting Review Monthly (continued) Capital asset review (continued) Account & review Expenditures >$5,000 Prepaids Account & review Expenditures >$5,000 Prepaids CWIP cost detail update Annually June Fund tree Abnormal balances APRIL 2016YEAR-END LEGAL TRAINING 8

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Preliminary Planning Administrative Processing Timeline Key external deadlines to meet our internal accounting deadlines Update in early February Maintained by Accounting Coordinated effort GL AP PO Budget Graphics IT Distributed to campus community Deans, Directors and Department Chairs APRIL 2016YEAR-END LEGAL TRAINING 10

Preliminary Planning Administrative Processing Timeline APRIL 2016YEAR-END LEGAL TRAINING 11

Preliminary Planning Legal Year-end Closing Schedule Internal document Plan the coordinated effort of closing the legal ledger on time Maintained by Accounting Updated in February/March Roll-forward PY finalized schedule Add/Update/Delete for CY Includes CO Master Timeline tasks confirmation of tasks and target dates with responsible parties APRIL 2016YEAR-END LEGAL TRAINING 12

Preliminary Planning Legal Year-end Closing Schedule APRIL 2016YEAR-END LEGAL TRAINING 13

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Communication External Administrative Processing Timeline ed to the campus community in late February/early March Deans, Directors and Department Chairs Reminders included on correspondence APRIL 2016YEAR-END LEGAL TRAINING 15

Communication Internal Single point of contact in General Accounting CO Campus Year-end close kick-off meeting Schedule after CO year-end training End of May/early June All staff with a year-end closing task are asked to attend APRIL 2016YEAR-END LEGAL TRAINING 16

Communication Internal (continued) Weekly year-end close meetings End of June through closing Scheduled after CO year-end support calls Representatives from General Accounting, Accounts Payable, Budget, Procurement, GAAP, Student Accounting, and Facilities Optional attendee drop-offs if scheduled tasks are complete Legal Year-End Closing Schedule ed to internal department personnel in late February/early March Updated schedule included in weekly year-end meeting calendar reminder APRIL 2016YEAR-END LEGAL TRAINING 17

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Accruals Accounts Payable Manual review after final check run in mid-June AP accrual file is recorded in Legal through a manual JE Auto-reversing entry on July 1 st Activity with other State agencies is reclassified in Legal to Due To Manual review process is continued through GAAP close Accounts Receivable (student & non-student) Campus practice to record in Legal Activity with other State agencies is reclassified in Legal to Due From APRIL 2016YEAR-END LEGAL TRAINING 19

Accruals Prepaids Campus practice to only record in GAAP Manual review of activity performed throughout the year Deferred Revenue Campus practice to record in Legal Incorporated into the Legal Year-end Closing Schedule APRIL 2016YEAR-END LEGAL TRAINING 20

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Questions and Answers APRIL 2016YEAR-END LEGAL TRAINING 22