Fiscal Year-End Review Session

Ross Justus Associate Controller Presenter Contact Information: Ross Justus Associate Controller Email: rujstus@nmsu.edu Phone: 575-646-7663

Agenda Year-end Schedule & Important Dates Dual Year Processing Review of Indexes & Accounts Property Accounting – Purchase of Equipment Year-end Accruals PCard Deadlines JV Processing SPA Year-end Questions

Damian Lopez Audit Liaison Presenter Contact Information: Damian Lopez Audit Liaison Email: auditliaison@nmsu.edu Phone: 575-646-5281

Key Year-End Dates June 20 - DPRs, JVs, Reimbursement Vouchers and IDVs to be included in FY18 are due to Fiscal Monitor July 2 - 1st Close July 9 - Deadline for JVs from Business Managers and Research Centers Carolina

Key Year-End Dates (con’t) July 11 - 2nd Close July 18 - 3rd Close July 20 - Final Close – Reports available the following day Carolina

Transaction Date vs. Activity Date Transaction Date – Banner posts transactions to fiscal years and periods based on the transaction date. Activity Date – The date a transaction is actually entered into Banner. Carolina

Dual Year Processing You may begin processing FY19 purchase requisitions on June 1, 2018. Creating a FY19 requisition during the Dual Year period: -Transaction Date must be >June 30, 2018 -Delivery Date must be > Transaction date Carolina

Dual Year Processing (con’t) > June 30, 2018 27-JUN-2018 09-JUL-2018 23-JUL-2018 Banner Finance Procurement manual online at http://training.nmsu.edu Carolina

Reviewing Funds General Ledger Review Review Assets, Liabilities, and Fund Balance Look for reverse balances. Compare for no change from prior year. AFR exception reports will help identify issues but don’t wait for them. Carolina

Reviewing Indexes I&G and Non I&G Funds Unrestricted Funds Compare current year activity to prior year activity. Question any expense with a credit balance. Verify that there is not any YTD expense activity in account code 799800. Compare budget to actual expenses. Carolina

Reviewing Indexes (con’t) Unrestricted Funds, cont. I&G Funds There should not be any YTD activity in the following account codes: Revenue accounts (5XXXXX), Resale accounts (77XXXX), and Applied charges accounts, 795xxx (except in specific circumstances). Carolina

Reviewing Indexes (con’t) Non I&G Funds Question any revenue that has a debit balance. Verify that any resale account codes, 77xxxx are appropriate on that index. Carolina

Reviewing Indexes (con’t) Zero all default P-card account codes – 738011 760905 – NMGRT Goods >$10.00 Federally excluded account codes Refer to BDMS for back-up documentation for journal vouchers For BDMS access http://rmr.nmsu.edu/bdms-access/ Carolina

Joshua Munoz Capital Finance Manager Presenter Contact Information: Presenter Contact Information: Joshua Munoz Capital Finance Manager Email: jlmunoz@nmsu.edu Phone: 575-646-3133

Reminders – Inventory Change Request Excerpt of the Inventory Change Request (ICR) form: Mike

Best Practices – Purchase Orders BANNER will review a specific set of criteria (account and commodity codes) to identify capital assets apart from tagged assets. Use document text or item text to communicate additional information to Property Accounting like Trade-ins, discounts, etc. Components (i.e. line 3 is part of line 1) Mike

Year-end Considerations Items received on or before 6/30/2018 will be capitalized, tagged, depreciated, or expensed in FY18. Request and submit invoices for any tagged items. Construction project accruals Work done on construction projects but not invoiced will need to be accrued. Mike

Year-end Considerations Cut-off for year end – HED Library GOBs FY18 Draw Request Deadline is July 10, 2018 Please avoid using P-card in June Backup documentation for any outstanding expenses needs to be submitted to AFR by July 5, 2018. Failure to meet deadlines might result in HED not reimbursing NMSU for purchases. Mike

Carolina Munoz Accounting and Financial Reporting Manager Presenter Contact Information: Presenter Contact Information: Carolina Munoz Accounting and Financial Reporting Manager Email: cmolina@nmsu.edu Phone: 575-646-3144

Accounts Payable Dates Notable Dates: July 9 thru July 18 - Remaining FY18 PO invoices will not be paid July 18 - FY18 encumbrances will be rolled forward in Banner July 20 – AP will begin processing FY18 invoices Lesley

Accounts Payable Dates (con’t) Notable Dates: NOTE: All DPRs & RV’s received in A/P after June 30, 2018 will be posted in FY19 Must be to Fiscal Monitor by 6/20/18 to be included in FY18 Lesley

Accruals Our financial statements must include all revenue earned and expenses incurred in FY18, even if the transactions have not been completed. The year end accruals adjust the revenues and expenses that are in Banner to amounts required for full accrual financial reporting. The effect of the accrual is reversed in FY19. Lesley

Accruals (con’t) Three-way match The terms of the PO require that the invoice be matched to the PO and that the goods/services have been received in Banner before the invoice can be paid. A/P will automatically accrue if it was received correctly in Banner by 6/29/18 VERY important to receive items in Banner that were actually received by 6/29/18 Date Ordered Received in Banner Accrued with Three way match? 5/30/2018 6/29/2018 YES 7/1/2018 NO Lesley

Accruals (con’t) Two-way match – Departmental Accrual account 221005 – JE’s reversed centrally DO NOT REVERSE Departmental Construction – Plant funds 754xxx 782-783xxx Subcontract (reviewed by SPA) 792xxx Lesley

Accruals (con’t) Two Way Accrual Process: AFR runs a COGNOS report that lists open two-way match POs. Each department will receive a list of their open two-way match POs for review. The review threshold for expenses incurred is $10K or greater. Date Service Procured Date Services Complete Accrued with Two way match? 5/30/2018 6/29/2018 YES 7/1/2018 NO Partially >$10K Partially Lesley

Accruals (con’t) AFR will require the departments to provide written documentation from vendor with bill amount for services provided and not yet paid prior to June 29, 2018. Types of Documentation* Invoice from vendor Email from vendor AFR accrues using account code 221005. Accruals reversed in July by AFR. *Exceptions to this will be addressed on a case by case basis.

Audit Documentation The following information is required for each amount accrued Lesley

Purchasing Clean up Incomplete Purchase Requisitions Review Banner FOADOCU (Document by User). Refer to Banner Finance Procurement Manual for process to delete a requisition. https://training.nmsu.edu/CLPD/documents/banner-finance-procurement-manual.pdf Lesley

PCard FY 18 Deadlines All Pcard purchases posted at Wells Fargo through 6/21/18 will be posted in FY18. Business managers will be contacted to assist with outstanding PCard balances in their areas. Lesley

Catherine Antony Financial Information Processing Presenter Contact Information: Catherine Antony Financial Information Processing Email: catrin@nmsu.edu Phone: 575-646-5264

FIP JV Processing JEC/JED, B4C/B4D Other Spreadsheets Manual entry These must be routed through Banner queues for approval so consider the timing when close to month end. Other Spreadsheets Consider FIP and Fiscal Monitor deadlines Hard copies requiring fiscal monitor signatures Physical copy & electronic copy sent to fiscal monitors who forward them to FIP after review Manual entry

FIP JV Processing Errors will cause delays in processing. Tips to avoid common errors: Make sure index is valid (i.e., not termed, etc.). Make sure username is authorized to post. Double-check account numbers. Make sure account hasn’t been termed. Use the correct spreadsheet (JE16 vs. JED, etc). Make sure transaction date is in the current open period.

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