Network & Learn Year End Closing Session Chris Sherbesman, Director of Budget & Finance Virginia Moore, Interim Director of Accounting Services

What Does Your Budget & Finance Office Do? Provides overall financial leadership for the campus Prepares/manages/monitors university’s $180 million budget and fee schedules Coordinates and develops financial reports for both internal and external entities Manages salary budget Manages fiscal year openings and closings Campus reserve funds (fund balance; R&R) Debt service monitoring and bonded projects Auxiliary financials Process documents (TV’s, Budget Revisions and Journal Entries) Provides customer service and communications

What Does Your Accounting Services Office Do? ACCOUNTS PAYABLE AND TRAVEL: Enters standard invoices and purchase order invoices sent to our acctserv@utc.edu email Audits and approves all invoices entered by the department, such as: Miscellaneous Reimbursements, Moving Allowances, Contract Invoices, and T-27 Request for Special Payment. Audits and approves Travel Expenses, Prepaid Conference Registration, Travel Advances and issues Travel Authorization (TA) for Direct Bill of Airfare and/or Car Rental Processes Transfer Vouchers for departmental accounts such as E, I, R, and N accounts.

What Does Your Accounting Services Office Do? SPONSORED PROJECT ACCOUNTING (GRANTS AND CONTRACTS): Fiscal set up & review of Grant accounts/expenditures/invoicing- $35 million budget Coordinates and develops financial reports for both internal and external entities Process documents (TV’s, Budget Revisions and Journal Entries) Provides customer service and communications TRAINING: IRIS On-Board Training for new IRIS users Accounts Payable and Travel Entry Vendor Setup Ledger Reading and Reconciliation Training Grant and Contract Fiscal Management/Budget Training

Common Types of University Funds Current Unrestricted Funds: Assets, Liabilities and Fund Balances (A & B-Accounts) Income (I-Accounts) Expense (E-Accounts) Current Restricted Funds Grants, Gifts and Endowments (R-Accounts) Unexpended Plant Funds (J-Accounts) Retirement of Indebtedness Funds (K-Accounts) Renewal and Replacement Funds (K-Accounts) Agency Funds (N-Accounts)

Balancing Your Budget vs Expenditure An important step to balancing your budget at year end is consistent monthly reconciliation of all account ledgers, including: E , R and I accounts Electronic Ledger Reconciliation now available! During the Month Create a file folder for each account you reconcile (either Hard Copy or Electronic) During the month place the following items in the account folder each time you process an invoice place a copy into the account folder or scan it for electronic reconciliation upload. the detail check register payroll verification reports transfer vouchers processed for the account copy of deposits made through bursars office copy of purchase order, travel request etc., (anything that creates encumbrances)

Balancing Your Budget vs Expenditure An important step to balancing your budget at year end is consistent monthly reconciliation of all account ledgers, including: E , R and I accounts Verify charges on each account; matching payroll and invoices to charges; transferring any posting errors before year end. Transferring charges may include; pay funding changes, ZCAT time entry correction, paper transfer voucher processing (Remember Salary CANNOT be moved by paper transfer voucher) Review the budget vs expenditure on both E accounts and Grant Restricted accounts. Have the Department Head (and PI in the case of Grants) review and sign the ledgers or process the approval through Electronic Ledger Reconciliation. During this time the responsible individual should take notice of remaining balances and make note of any budget vs expenditure amounts that could cause issue throughout the year.

What a Department Does During Year End Check accounts for encumbrances: During 1st two weeks of June Look up encumbrances using ZFM_BCS001 for E accounts ZFM_BCS002 or ZDEPT_LEDGER for R accounts Verify the validity of the encumbrance Contact Purchasing or Travel to clear any encumbrances previously realized or no longer valid

What a Department Does During Year End Ensure all revenue and refunds received by June 30 are entered into IRIS and/or taken to the Bursar’s office for deposit by end of business July 3rd. On June 30 pull interim ledgers ZE_LEDGER for E accounts, ZDEPT_LEDGER for R accounts Balance the Budget vs Expense on each account within the department. Create transfer vouchers to move charges if necessary, date paper TV’s June 30. Clearly mark the top of the Form FY 2016-2017. Deliver year end paper transfer vouchers to ACCOUNTING SERVICES no later than July 6th for processing. To ensure that TV’s to be processed in FY 16-17, DO NOT put in campus mail. Pro-card purchase cut off date will be June 27th. All June Pro-card charges must be reconciled by July 12th or else all charges will post to the responsible account. Pro-card purchases made June 28th to 30th will be charged in FY 2017-2018.

What a Department Does During Year End PAYROLL: June Monthly Payroll must be finalized and approved in workflow by June 23rd. Biweekly for Pay Period Ending June 25th, must be finalized and approved by June 26th. Correct salary postings through payroll system. Any changes through a Salary Transfer Voucher (STV) for Fiscal Year 2017 must be entered and approved in workflow by July 3rd in order to be posted in the final adjustment payroll run on July 5th. Monthly Payroll can be reconciled June 27th. Any needed changes should be input immediately. June Effort Certification on Grant accounts must be completed and through workflow approval by July 3rd. Monthly payroll can be reconciled on June 27th and effort certification should be completed immediately after this date to meet the July 3rd deadline. Additional Pay on Grant accounts. May effort should be entered and approved by June 15th. June effort should be entered and approved by July 17th unless it’s a Center of Excellence account which should be completed by June 15th . Workflow notes must show a calculation hours x hourly rate or % of monthly effort.

What a Department Does During Year End ACCOUNTS PAYABLE AND TRAVEL: To be processed in the 2016-2017 fiscal year, all invoices must be dated on or before June 30, 2017. Any invoices dated after June 30th or travel ending July 1st or later will be processed in 2017-2018 fiscal year. All FY 16-17 travel must be in travel workflow inbox no later than July 6th. For all FY 16-17 invoices processed by Accounting Services, these invoices must be submitted to the acctserv@utc.edu email account by July 6th and preferably earlier. Please denote in the email Subject Line that they are FY 16-17 invoices. Please write FY 16-17 written in the top right hand corner of the invoice. FY 16-17 invoices will be processed before FY 17-18 invoices. For all FY 16-17 invoices processed within the department, such as misc. reimbursements, contract invoices, and T-27’s, these invoices must be entered and to the Accounting Services workflow by Noon on July 5th.

June 2017 – FY 2017 Year End Closeout SCHEDULE Sunday Monday Tuesday Wednesday Thursday Friday Saturday   1 Start Review of Encumbrances for Validity 2 3 4 5 6 7 8 9 10 11 12 Clear Invalid Encumbrances by contacting Purchasing or Travel 13 14 15  Monthly Time Entry and Approval for Payroll Changes Deadline 16 17 18 19 20 21 22 23 Deadline for June Monthly Payroll to be Approved 24 25 BIW End of Pay Period 26 Deadline for BIW Payroll Approval for PPE 6/25/17 27 Final Date to make Pro-card Purchases and Monthly Payroll Reconciliation 28 29 30 Pull Interim Ledgers and BIW Payroll Reconciliation July 2017 – FY 2017 Year End Closeout SCHEDULE Final Deposits, STV, and Effort Certification Deadlines Final Monthly Payroll Run for STV and Effort Certification Changes, Final Date for Misc Reimb., T-27, Contract Invoices Final Date to Submit TV’s, Standard Invoices, and Travel to Accounting Services  Monthly Time Entry and Approval Deadline on 17th

Carryover Funds General Information The Budget Office determines carryover balances by closing all accounts within a particular division or college. Automatic Carryover Funds Usually determined by the Chief Business Officer and/or Provost Service centers, student fees and some specialized programs Restricted accounts (unless on expiring grant accounts or 1 year UC FDN Awards-must request carry over/extension from appropriate entity) Discretionary Carryover Funds All carryovers that are not deemed automatic carryovers are at the discretion of the Chancellor and will be distributed after the university’s books are balanced (usually in September).

Helpful Reports View/Download Fund Attributes IRIS Transaction – Z_FM_ZFMFINCOD Provides detailed info about fund(s) attributes Fund Center Benefits Self Funded or Centrally Funded UT Ledger-A SMART LEDGER-your audit document IRIS Transaction – ZFM_UT_LEDGER Can only be used for closed periods Fiscal Policy Requires to print, reconcile and get signed by department head or to process through Electronic Ledger Reconciliation Interim Ledgers ZE_LEDGER- E accounts (Centrally Funded Benefits) ZDEPT_LEDGER- R accounts and E Accounts (Self Funded Benefits)

Helpful Reports Annual Budget vs. Actuals E Accounts-IRIS Transaction – ZFM_BCS001 R Accounts-IRIS Transaction – ZFM_BCS002 Must know benefits type: Self Funded (ALL_CI_AND.BENE) or Centrally Funded (ALL_CI_NO.BENE) Provides detailed info about transaction within a fund(s) Actuals vs. Budget and Encumbrances Should be used to insure charges are in the appropriate fiscal year Payroll Check Register IRIS Transaction – ZPR_DETAIL_CHECK_REGISTER Fiscal policy requires it be run and reviewed two days prior to payday Line Item Reports KSB1- E accounts CJI3- R accounts

What to expect at the Opening of next Fiscal Year? POSSIBLE CHANGES TO BASE OPERATING/SALARY BUDGET Why? New Operating Budget Allocations Funding for New Positions Carryover Funds (Non-recurring) One-Time Funds Awarded (Non-recurring)

Are you signed up for SAP list serve? Important Email notification: Payroll verification reminder Month closing http://iris.tennessee.edu/getting-started/iris-user- listserv/ Chattanooga Join or Leave the list All general settings are fine

JUNE 2017 – YEAR END CLOSE OUT SCHEDULE Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 Start Review of 2 3 Encumbrances for Validity 4 5 6 7 8 9 10 11 12 Clear Invalid 13 14 15 Monthly Payroll Entry 16 17 by contacting Purchasing or Travel Deadline- Additional Pay Enter 18 19 20 21 22 23 Deadline for June 24 Monthly Payroll to be Approved 25 BIW End of Pay Period 26 BIW Payroll 27 Final Date for Procard 28 29 30 Pull Interim Ledgers and Approval for PPE 6/25/17 Purchases and Monthly Payroll Run BIW Payroll Run for PPE 6/25/17 JULY 2017 – YEAR END CLOSE OUT SCHEDULE Final Deposits, STV/ECR Payroll Run and Noon Final Date to Submit TV’s, STV, and Effort Cert. Deadlines 27, Misc Reimb, Contract Invoice to Acct Svcs. Deadline for T- Invoices, and Travel to Acct. Svcs. and Approval Deadline 17th- Additional Pay Enter