Methods for a Successful Year-End Close YEAR-END LEGAL TRAINING APRIL 2017 Methods for a Successful Year-End Close Rhina Badia-Barrientos, Senior Accountant Nikki Anderson, Senior Accountant Sonoma State University

YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2016 About Sonoma State: Graduates 2,000 students per year 46 bachelor's degree programs; 15 master's degree programs Mid-size campus (9,408 students, 91% undergraduates) Home of the Green Music Center Performance Venue

About Sonoma State’s Structure: YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2016 About Sonoma State’s Structure: Centralized Organizational Structure Auxiliary and Campus Teams Work Closely Together Share Common Departments for Efficiency

YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2017 Learning Objectives: Campus Close Keep Data Current Keep Campus Books in Sync with the CO Keep Accounting Department Notified FIRMS/Legal Close Capital Assets Roll-forwards Abnormal Balance Review FIRMS and Other Tests

Campus Close: Always Be Closing YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2017 Campus Close: Always Be Closing Keep XXCMP in Sync with the CO Keep Accounting Notified Keep Data Current Sonoma First Campus to Complete Legal Close Last Year

Month End MJE Benchmark: YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2016 Month End MJE Benchmark:

Campus Close – Keep Data Current YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2017 Campus Close – Keep Data Current Monthly Recons – Keep them timely and current Examine Month-End unresolved issues that impact Year-End closely Review chartfields for accuracy and usage – data scrubbing! Keep Subsystems Clean: AP, AM, BI, AR Agree to G/L with Recons & Queries

Campus Close – Keep Data in Sync YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2016 Campus Close – Keep Data in Sync Be in sync with Chancellor’s Office throughout the year: Proactive Approach to FIRMS Updates Disseminate Information Timely Financial Services Website Platform Financial Transparency and Education

Campus Close – Keep Accounting Notified YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2017 Campus Close – Keep Accounting Notified Seek Accounting Approval on the front end Procedures include Accounting Build Working Relationships with Campus Data is accurate the first time around

Campus Close – Continued Best Practices YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2017 Campus Close – Continued Best Practices Communicate Year-End Schedule in Advance to address upcoming Deadlines (Early April) Purchasing Payroll Accounts Payable Accounts Receivable Budget Cashiering Begin preliminary data accuracy review Meet with departments or contact third-party providers to develop YE timeline Update passwords now

Campus Close – Continued Best Practices YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2017 Campus Close – Continued Best Practices Review and clear reconciliation issues (SAM99,FIRMS Errors) mid-month Review Closing Rules & Trees – Test in Non-Production Work Closely with Budget Office Zero out Cost Recovery LCD Posted by 6/30/XX Reserve Designation Workbook Pre-Calculated/JE Ready Know your deadlines – Clear Expectations & Constant Communication with Campus Departments

Campus Close – Continued Best Practices YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2017 Campus Close – Continued Best Practices Goal: Year End close, just another close!

Secrets of a Successful Year-End Close YEAR-END LEGAL TRAINING APRIL 2017 YEAR_END LEGAL TRAINING APRIL 2017 Secrets of a Successful Year-End Close Legal Close Capital Assets Roll-forwards FIRMS and Other Tests Abnormal Balance Reviews Sonoma State University – Financial Services - Rhina Badia-Barrientos Sonoma State University - Financial Services - Rhina Badia-Barrientos

Secrets of a Successful Year-End Close YEAR-END LEGAL TRAINING APRIL 2017 YEAR_END LEGAL TRAINING APRIL 2017 Secrets of a Successful Year-End Close Capital Assets Roll-forwards In preparation for footnote number 5 of the GAAP financial reporting package and to ensure legal closes are accurate, capital assets roll-forwards and reconciliations to the general ledger are performed on a monthly basis for all assets (equipment, software, art, etc.), except capital projects. This is a very time consuming task to perform at the end of the year. By maintaining the roll-forward and reconciliations on a monthly basis, it allows us to have accurate legal data at year-end and to just concentrate on GAAP adjustments during the GAAP close. Sonoma State University - Financial Services - Rhina Badia-Barrientos

Secrets of a Successful Year-End Close YEAR-END LEGAL TRAINING APRIL 2017 YEAR_END LEGAL TRAINING APRIL 2017 Secrets of a Successful Year-End Close Capital Assets Roll-forwards (cont.) It also allows us to identify any errors in the campus books prior to finalizing the Legal close. In addition, the data is maintained monthly with SCO and CSU funds as required for the capital assets new template for SCO reporting, allowing us to prepare this new template in a timely manner. Sonoma State University - Financial Services - Rhina Badia-Barrientos

Secrets of a Successful Year-End Close YEAR-END LEGAL TRAINING APRIL 2017 YEAR_END LEGAL TRAINING APRIL 2017 Secrets of a Successful Year-End Close Capital Assets Roll-forwards (cont.) Additions and Disposals and Monthly Tie-Out to the G/L Sonoma State University - Financial Services - Rhina Badia-Barrientos

Secrets of a Successful Year-End Close YEAR-END LEGAL TRAINING APRIL 2017 YEAR_END LEGAL TRAINING APRIL 2017 Secrets of a Successful Year-End Close Capital Assets Roll-forwards (cont.) Depreciation by Asset ID and Monthly Tie-Out to the G/L Sonoma State University - Financial Services - Rhina Badia-Barrientos

Secrets of a Successful Year-End Close YEAR-END LEGAL TRAINING APRIL 2017 YEAR_END LEGAL TRAINING APRIL 2016 Secrets of a Successful Year-End Close Capital Assets Roll-forwards (cont.) Depreciation details by SCO and CSU Fund Sonoma State University - Financial Services - Rhina Badia-Barrientos

Secrets of a Successful Year-End Close YEAR-END LEGAL TRAINING APRIL 2017 YEAR_END LEGAL TRAINING APRIL 2017 Secrets of a Successful Year-End Close Sonoma State University - Financial Services - Rhina Badia-Barrientos

Secrets of a Successful Year-End Close APRIL 2017 YEAR_END LEGAL TRAINING Secrets of a Successful Year-End Close FIRMS Tests FIRMS tests and edits are performed monthly in non-production PeopleSoft environment before the campus books are closed to identify errors and correct them prior to closing both sets of books. Among the most common errors found are: Legal edits chartfields/data combination errors Transactions with non-active chart-fields Transfers in/out not in balance (use of incorrect transfer accounts) Interagency and FBC transactions not in synch with the CO (CPOs not booked or in error) Abnormal account balances Campus chart-fields not in synch with FIRMS legal edits

Secrets of a Successful Year-End Close APRIL 2017 YEAR_END LEGAL TRAINING Secrets of a Successful Year-End Close FIRMS Tests (cont.) Key items to keep in mind when performing the tests in a non-production environment: Re-Edit and Post Unlock Journal (releases Budget status I) Budget Check Journal Re-Edit and Post Journal FIRMS Extract File Name: /CSU/ftphome/softpfdv/FIRMS_1612-A.DAT FTP Name of File to Download: FIRMS_1612-A.DAT

Secrets of a Successful Year-End Close APRIL 2017 YEAR_END LEGAL TRAINING Secrets of a Successful Year-End Close

Secrets of a Successful Year-End Close APRIL 2017 YEAR_END LEGAL TRAINING Secrets of a Successful Year-End Close

Secrets of a Successful Year-End Close APRIL 2017 YEAR_END LEGAL TRAINING Secrets of a Successful Year-End Close

Secrets of a Successful Year-End Close APRIL 2017 YEAR_END LEGAL TRAINING Secrets of a Successful Year-End Close

Secrets of a Successful Year-End Close APRIL 2017 YEAR_END LEGAL TRAINING Secrets of a Successful Year-End Close

Secrets of a Successful Year-End Close YEAR-END LEGAL TRAINING APRIL 2017 YEAR_END LEGAL TRAINING APRIL 2017 Secrets of a Successful Year-End Close Other Tests - GAAP Derivations GAAP derivation tests are performed quarterly in a non-production PeopleSoft environment to identify errors and make the necessary corrections in the campus books prior to the actual GAAP closes. CMP/CSU/GAP ledger comparison reports are also run quarterly to ensure all the entities are in synch. Any discrepancies are resolved/corrected in the campus books prior to the Legal and GAAP actual closes. Sonoma State University - Financial Services - Rhina Badia-Barrientos

Secrets of a Successful Year-End Close YEAR-END LEGAL TRAINING APRIL 2017 YEAR_END LEGAL TRAINING APRIL 2017 Secrets of a Successful Year-End Close Other Tests - GAAP Derivations (cont.) Performing these tests allow us to: Derive actual GAAP and start the GAAP close timely and within a day after the year-end FIRMS/legal submissions are accepted by the Chancellor’s Office. Sonoma State University - Financial Services - Rhina Badia-Barrientos

Secrets of a Successful Year-End Close APRIL 2017 YEAR_END LEGAL TRAINING Secrets of a Successful Year-End Close Other Tests - GAAP Derivations (cont.) Among some of the most common errors are: New funds not tied to a FNAT value or not derived properly where there is a FNAT key Incorrect program codes GAAP overrides to a different NAC not derived properly Combo edit errors among fund/account/program/class

Secrets of a Successful Year-End Close APRIL 2017 YEAR_END LEGAL TRAINING Secrets of a Successful Year-End Close

Secrets of a Successful Year-End Close APRIL 2017 YEAR_END LEGAL TRAINING Secrets of a Successful Year-End Close Abnormal Balance Reviews General ledger balances are reviewed for any abnormal balances. Business Unit = SOCMP - Sonoma State University, Fiscal Year = 2015, Period = 12 Time run: 6/30/2016 7:19:07 AM FIRMS Obj Cd Fdescr CSU Fund Fdescr Actuals Abnormal Balance   101100 - Cash-Short Term Investments (SWIFT) 465 - TF-Contracts and Grant Trust (1,277,199.37) Abnormal Radar 486 - TF-Academic Maintenance and Repair Fund (39,104.75) 499 - TF-Revolving Fund (376.83) 201001 - Accts Payable 1,000.00 See Below 502203 - Extended Education - Certificate Program 441 - TF-Extended Education Operations 105.00 VCH - AP Voucher Accounting Accounts Payable QB049 - PRIORITY 1 TRNG 14_16 YR2 OF 2 Doc Src Fdescr Doc Ln Descr Amount Account Fdescr Fund Fdescr Dept Fdescr SFJ - Student Financial Journals Student Financials Interface 225.00 502203 - Continuing Edu_Certificate Prg RM001 - Trust_Cont Ed 1164 - Conflict Resolution (570.00) 1161 - Attorney Assistant _Ext 450.00

Secrets of a Successful Year-End Close APRIL 2017 YEAR_END LEGAL TRAINING Secrets of a Successful Year-End Close Abnormal Balance Reviews (cont.)

Secrets of a Successful Year-End Close APRIL 2017 YEAR_END LEGAL TRAINING Secrets of a Successful Year-End Close

Secrets of a Successful Year-End Close APRIL 2017 YEAR_END LEGAL TRAINING Secrets of a Successful Year-End Close Always Be Closing

Secrets of a Successful Year-End Close APRIL 2017 YEAR_END LEGAL TRAINING Secrets of a Successful Year-End Close