Year-End Brown-Bag Beth Tapp May 10, 2017

What is “Year-End” University’s fiscal year-end is June 30th Begins before June 30th Ends at the end of October Year-end finalizes the activity (revenues and expenses) for the fiscal year Financial Statements & the Annual Report are completed

Why is Year-End Necessary? University’s Annual Report is used by various organizations. For example: State of Minnesota Legislators Included in the State’s Annual Report Sponsors & Donors Accreditation Boards Bondholders for University Debt Rating Agencies Parents of Students

Important Dates May 16th: Last Day for UMF bills Last day for PUF invoices for UMF Unclaimed property reports due to Accounting Services June 22nd: Last day for requisitions and change orders requiring Purchasing Services review June 23rd: Last day for requisitions & change orders Last day to enter PO-related receipts & vouchers Last day for non-PO vouchers Last day for PCard and Expense Reports

Important Dates (cont’d) June 30th - Last day for Cash Deposits July 11th: Last day for Period 12 Retros Last day for Period 12 journal entries July 12th: Period 12 closes Period 913 opens July 13th - Last day for Period 913 Retros

Important Dates (cont’d) July 14th - Last day for Central entries posting to departments. July 16th - Carryforward run for Period 12 July 19th - Last day for Period 913 journal entries July 20th - Period 913 closes July 30th - Carryforward run for Period 913

Best Practices Best practices for departments charging other units: Notify department of charges before making entry Don’t post charges on the last day before the period closes Consider not charging another unit within 3 business days of the period close. Example: No charges to another unit after: Period 12: July 7th Period 913: July 14th

Accounts Receivable Invoices created in FY17 (non-UMF): Cash not received: You billed an invoice in FY17, it generated a positive amount in revenue and a negative amount for accounts receivable. The net effect is $0 and the invoice did not influence your bottom line. In FY18, the beginning balance is $0 for this invoice. The payment is received, generating a positive amount in Accounts Receivable and a negative amount to a Central cash account. Now, your balance is positive in UM Reports.

New PO Criteria for FYE 2017 POs with an encumbrance of less than $2,500 will be closed Regardless of when they were created Regardless of when they were last paid Reduces PO volume by approximately 4,000 POs (four less roll ranges) Lower roll volume helps eliminate risks

Other PO Reduction Closures All U Market POs, except those with equipment-related categories/Accounts POs created 15 months ago or longer with no voucher activity after 4/1/2016 Blanket orders totaling less than $50K that are older than three years (created before 6/1/2014) POs with errors or ineligible status

Ineligible to Roll Examples POs that are not in dispatched status with a valid budget Partial receipts: receipt does not have a voucher; quantity or amount imbalance POs with voucher errors (examples: match exceptions, budget exceptions) POs with $0 lines

Resolve Budget Errors Now Budget errors are worst-case scenarios If they are not resolved by FYE: Purchasing has to force close them Encumbrances will be forever trapped These CANNOT be fixed or reversed Reports will always show the encumbrances FY17 will NOT be opened to fix these errors

Requisition Cleanup Reminders Procurement Specialists are strongly encouraged to attend FYE Sessions Preparers: please clean up your requisitions Thousands of old reqs haven’t been cancelled 60 day old+ reqs will get closed starting June 1 Do NOT cancel requisitions in budget error or they will forever be in error and show on reports Contact the Financial Helpline for assistance

Ordering from U Market Plan ahead U Market orders must be placed and approved by Friday, June 23 at 2:00 pm During cut-off period Phone orders will be accepted by U Market Services for “U Market Stock” items only

PCard Reminders Cardholders can continue to use cards PCard files will continue to load daily Cardholders may still access My Wallet Activity that must be posted to FY 17 must be processed to an ER by the deadline 90+ day unapproved transactions will be forced onto an ER starting June 1

Resources Year-end Calendar: http://finsys.umn.edu/fye/index.html Unclaimed Property: http://finsys.umn.edu/general-ledger/unclaimedproperty.html Annual Report: http://finsys.umn.edu/index.html note: PDF is on right-side Questions: Finsys@umn.edu

Questions?