Year End Procedures 2013/14 Sarah Kellagher and Tanya Hitchen

Introduction Overview including changes to prior year High-level Timetable CD forms – When to use them, how to use them and examples Internal trading Research accounting Premises recharges Other year-end procedures Summary

Overview Year-end debrief with ACMs after 2012/13 Early access to CD forms Clarification re Payroll auto accrual Best practice for staff expenses prepayments- in workshop Workshop regarding automatic accruals for external suppliers Deadlines to be sent via Outlook to key contacts Sign off of CD forms and auto accruals to be agreed Mid July

High level timetable HEFCE filing deadline 30th November HESA Return deadline 14th December Council – virtual meeting end of November Audit Committee – 4th November KPMG audit - commences 15th September APTOS Closedown to all except Corporate Accounting – 31st August 5pm – with temporary closedown on 31 st July 5pm until 1 st August 10am to allow critical year-end reports to be processed

CD forms What are they? Where can they can be found? What process do they follow?

CD forms Types of CD form available: ‎ CD1_2014-A CreditorsCD1_2014-A Creditors ‎CD1_2014-B PrepaymentsCD1_2014-B Prepayments CD1_2014-C Non-Staff & Student Expenses CD2_2014-A Debtors CD2_2014-B Income in Advance CD3 forms for internal transactions are available on request from Tanya Hitchen. Code checkers now integrated, so please use these!!

CD forms When should I use CD forms? Where we have received goods/services before 31 st July 2014 and there is no Purchase order – CD1_2014-A Creditors Where we have provided services/goods but we have not yet raised an invoice by the year-end deadline – CD2_2014-A Debtors Where we have paid in advance for goods/services (this could include payment that spans the year-end, or staff travel ) – CD1_2014-B Prepayments Where an external invoice has been raised by the University, but the supply of goods/services will happen after 1 st August 2014 – CD2_2014-B Income in advance

CD forms – Do’s and Don’ts Look at dates goods/service has been received, NOT the invoice date Use the code checker and ensure all codes are active before sending them Always send in supporting documentation to evidence the entries included to Corporate Accounting, Room 254, Northcote House Check if you are uncertain which form to use/ whether an entry is allowable before the deadline Use the minimum number of CD forms possible (consider materiality of £500) For research ledger codes, CD forms to be reviewed by research accounting Submit all electronic and paper copies by the 8 th August 2014 to Send them in as early as you like!

CD forms – Do’s and Don’ts Never use a CD1/CD2 form for any internal income/expenditure Never defer income that is not allowable by the funder Do not send in a form without checking the codes are valid first. If invalid/closed codes are submitted the form will be returned to the sender and will only be input if form is returned before the deadline with valid codes.

More examples of unallowable CD forms

Internal trading Throughout the year  Supplying department issues invoice within 30 days of providing the service  Receiving department processes the invoices within 30 days of the invoice date. Disputes Need to notify both Finance Services and the service provider in writing within 10 days of the invoice receipt. The person responsible for the customer account must then work proactively to resolve the dispute.

Year end dispute process  Colleges/Services wishing to dispute an invoice must inform both the service provider and Trish Tester in writing ( is acceptable) by Wednesday 31 st July.  The person responsible for the customer account must then work proactively to resolve the dispute, wherever possible before year end close on Friday 8 th August. Where the amount is less than £100, the invoice will not be placed into dispute but will be charged to the customer’s account. The customer may then seek resolution with the supplier.

Any invoices still in dispute as at Friday 8 th August will be cancelled in 2013/14 year, reinstated in 2014/15. All other invoices (not in disputed) will be cleared and the charge will be ‘direct debited’ to the receiving College/Service header account Unresolved disputes Internal Sales invoices dated on or after 1 st August 2014 These will not be able to be processed by the receiving college or service until Tuesday 12 th August when the old internal ledger has been closed and the new year internal ledger has been opened.

Key dates and deadlines for internal trading 25 th July last day to issue sales invoice for 2013/14 Any disputed invoices should be notified by to the supplying department and Trish Tester by 31 st July. Disputes must be resolved by Friday 8 th August otherwise the invoice will be moved to 14/15. NB Invoices for less than £100 will not be placed into dispute. All remaining invoices must be processed by Friday 8 th August; after 8 th they will be “direct debited” into the College/Service header account on Monday 11 th August. Tuesday August 12 th new internal ledger opens for processing

Research Ledger CD Forms Material limit previously stated Use code checker as indication of eligibility Corporate Accounting liaise with Research Accounting for sign-off Audit Checks Follow KPMG guidance and liaise with RAFT teams during July/August Split Grants Performed monthly Therefore year-end as per monthly procedure but later Grant Statements Priority given to year-end tasks

Premises recharges Includes EDS projects & furniture, Property Services maintenance, Stores Final Planon weekly recharges w/c 28th July - jobs marked complete Work in progress charged via reversing journal WIP to include time charges, actual costs plus receipts to 31st July No CD3’s

Other year-end procedures – External sales invoices 2013/14 invoices – raise as soon as possible, dated when raised or 31 st July 2014 (Period 12 closes 7 th August 2014.) Credit notes against 2013/14 invoices to AR by 7 th August Payments received re 2013/14 invoices send immediately to AR. Deadline 12 noon 31 st July for inclusion in 2013/ /15 supplies to be invoiced as normal dated August Invoices not raised by 7 th August need to be included on CD2/2013/A received by 8 th August.

Income received Cash/cheques/card for cashiers, and cash for transit to the bank by professional carrier, for income up to and including 31 st July 2014 to be with Cashier’s by 1 st August. 2013/14 receipts MUST be kept separately from 2014/15 receipts. Cash received by Finance Services after 1 st August will be processed in 2014/15, irrespective of the date on the paperwork. Additional cash collections can be arranged with Estate Patrol.

External purchase invoices All invoices for goods/services where the invoice is matched to the purchase order and goods receipted before 31 st July 2014 will be processed in the purchase ledger period 12 on Aptos. All invoices matched or goods receipted after 31 st July 2014 will be included on 2014/15 purchase ledger.

External purchase invoices On July 31 st an auto accrual will be run centrally for all purchase orders that have been goods receipted and not matched to an invoice by 5pm on the 31 st July 2014.This will be circulated to colleges and services by Monday August 4th. Automatic accrual to be reviewed by Colleges and Services, and manual adjustments to be made to the proposed accruals, and returned to Corporate Accounting by 8th August. Detailed guidance of this process is set out on the finance webpages There is a detailed workshop reviewing this process after this session

External purchase invoices

Purchases for new suppliers Please allow time for setting up new suppliers In July, Accounts Payable will prioritise setting up of new suppliers for urgent 13/14 spend, definite delivery before July 31 st.

Foreign Payment Requests ( not in IMS ) 2013/14 foreign payment requests to Accounts Payable by 18 th July. 2013/14 foreign payment requests,(relating to goods and services received by July 31 st ), not received until after 18 th July need to be accrued on CD1/2014/A which need to be returned to Corporate Accounting by 8 th August. During July please clearly mark each request with ‘2013/14’ or ‘2014/15’ before sending to Accounts Payable.

Purchasing Cards and Online expenses All claims fully approved by 12 noon on Tuesday 29 July 2014 will be processed to Aptos in 2013/14 On Tuesday 5 August, electronic accruals will be generated from: an extract taken from Aptos of all items dated prior to 1 August 2014; an extract taken from Expenses of all claims submitted but not yet approved and dated prior to 1 August 2014; an extract taken from Expenses of all claims started but not yet submitted and dated prior to 1 August 2014; and an extract taken of all un-reconciled purchase card transactions (ie these will not have been submitted). These items will be from all card statements up to and including the July 2014 statement.

Purchasing Cards and Online expenses These electronic accruals will be circulated to finance staff in Colleges and Services by 10am August 6th to confirm: all items should be accrued confirm/add coding where required (unapproved/unreconciled lines) Once Colleges and Services have confirmed all the accrual data the accruals will be posted to 2013/14 Deadline for returning electronic accrual schedules 5pm on Friday 8 August. Any expense claims, relating to activity in 2013/14, entered onto the expenses system after August 5 th will need to be accrued on a CD1/2014/C form.

Purchasing Cards and Online expenses Expenses for costs that relate to 2014/15 will need to be entered as a prepayment on a CD1/2014/B form. These prepayments can be extracted as follows; Run a report from the expenses-on-line system for all claims submit in year and scrutinise the narrative for activity in 2014/15, looking for dates and material values. Items likely to be claimed for in advance of activity will be travel, conference fees, hotel bookings etc. Detailed guidance of this process is set out on the finance webpages

Non-staff/student expenses Hard copy expense claims for non-staff/students RECEIVED in Accounts Payable by 18 th July will be processed in 2013/ /14 claims received by 18 th July, that relate to activity in 2014/15 will need to be entered as prepayments on CD1/2014/B by 8 th August. 2013/14 claims received after 19 th July, that relate to activity in 2013/14 will need to be accrued on CD1/2014/C by 8 th August. 2013/14 claims received after 19 th July, that relate to activity in 2014/15 should not be accrued on CD1/2014/C.

Payroll claims Any Payroll claims received in August will be processed into 2014/15. However, ‘Claims Payroll’ claims relating to work done in 2013/14, and clearly marked so, that are RECEIVED by Payroll by 8 th August will be automatically accrued for in 2013/14 centrally. Corporate accounting will communicate with colleges & services when done. (PD82s, PD85s; not PD107 or PD71) Any ‘Main Payroll’ claims received by 8th August that relate to work done in 2013/14 will need to be accrued on CD1\2014\C (Includes PD107 or PD71) July staff bank claims received by 8 th August will be accrued for centrally, including recharges to Colleges.

Petty Cash For expenditure up to and including 31 st July 2014, send petty cash book and claim for reimbursement to Cashier’s office by 1 st August. DO NOT send in a claim for reimbursement which spans both years. It is acceptable to close off petty cash earlier than 31 st July 2014 and include all subsequent expenditure in 2014/15 unless material to the budget unit.

Equipment Capital Equipment schedules (> £25,000) to be issued in July 2014 and returned by 6 th August Inventory schedules (over £500) confirmations to be issued in July 2014 returned by 6 th August Inventory schedules may be requested for inspection during the external audit.

Journals and key dates 18 th July: Student Expense Claims, Foreign Payments, Non-Staff Expenses 25 th July: Internal Sales Invoices 31 st July: APTOS closed at 5pm, Central automatic accrual run 1 st August: APTOS re-opened 10am, last day for cash income 6 th August: Capital & Inventory Schedules, External Sales Invoices 8 th August: return auto accruals 8 th August: Internal Purchase Invoices, CD Forms, return Expense and purchasing card accruals. 13 th August College/Service to post their own journals NOTE: When entering journals in the period between 1 st and 8 th August you will have to overwrite the date to 31 st July otherwise the voucher will default to current August date 31 st August: APTOS closed to all except Corporate Accounting

ANY QUESTIONS OR FEEDBACK? Contact us: Sarah Kellagher– Ext 5872 Tanya Hitchen – Ext