Year-End Closing of the Books FY

Overview of Closing Why?  GAAP – Generally Accepted Accounting Principles  End of the business cycle: State sessions end in June UO activity begins with summer session (excluding Law)  Federal (GASB) & State requirements UO mandated deadlines in order to meet required State deadlines  Snapshot in time YTD activity (FWIBUDG) and year-end balances (FGITBAL) are used to monitor, project, budget, evaluate performance, perform system audits, analyze anomalies, audit, compare and contrast with other years/funds/institutions etc…

Why?  Annual reporting – internal & external Rolled into State of Oregon financial statements Used by stakeholders such as general public, federal agencies, HECC, federal F&A rate setters, accrediting agencies, NCAA, creditors and bond services, etc…  Auditors – internal & external Test for accuracy, consistency, & reliability of systems including our policies & procedures Help us establish best practices Includes: UO Internal Audit, DHHS, Naval Research, NCAA, Moss Adams (financial statement & A-133), Secretary of State, etc… Overview of Closing

What? Recording activity that takes place between: July 1, 2014 and June 30, 2015  Transactions must be recorded in the fiscal year that the event takes place, regardless of when budget or cash is available  Includes accruals posted by July 22, 2015  Applies to all funds in FIS regardless of the source Overview of Closing

What?  Close fiscal period 12 and open fiscal period 14 Fiscal period 12:  Record June and remaining FY15 activity Fiscal period 14:  Review and post necessary corrections/accruals  Departments have first week  BAO/BRP/SPS have additional week  Close fiscal period 14 (FY15)  CAFAR team extracts data and populates reporting system  BAO collects all FY15 transactions through the date financial statements are issued in November to report subsequent events Overview of Closing

Balance Sheet Account Codes (FGITBAL – General Ledger) A = Assets B = Liabilities C = Control Accounts (Income Statement Totals) D = Fund Balance E = Fund Additions F = Fund Deletions  When FP12 is closed and FP14 is opened, actual income/expense account balances from FY15 FP12 are closed into FY16 fund balance.

Income Statement/Balance Sheet FWIBUDGFGITBAL Income StatementBalance Sheet Revenue0XXXXC0010 Labor1XXXXC2010 General Expense 2XXXX-8XXXXC1010 Transfers9XXXXC5010 Fund BalD0010

FY16 Beginning Balances  Before period 14 is opened, FY16 balances only include FY16 transactions

FY16 Beginning Balances  When period 14 is opened, FY15 period 12 ending balances become FY16 beginning balances (recorded in period 00) Document type YEOB, numbered GLRL15XX  Then, each entry posted to FY15 during period 14 has a mirror entry in FY16 period 00

Subsidiary Ledgers  Provide a greater amount of detailed information  FIS Examples – Student A/R, Grants Billing Module, Fixed Asset System, Accounts Payable  Complimentary (shadow) systems are often used by departments as subsidiary ledgers (examples – QuickBooks, Excel, Access)  Subsidiary ledgers must be reconciled to Banner FIS  The FIS general ledger is the official source of financial information for the UO

Subsidiary Ledgers General ledger account codes require supporting detail schedules reconciled to Banner FIS. Commonly used accounts include: Account CodeAccount Code TitleAccount Code Account Code Title A3103Misc Accounts ReceivableB0190Received Items Payable A3106Sundry ReceivableB5120Prepaid Tuition & Fees A3702AR from Affiliated FoundationB5802Unearned Revenue A4002Organized Storeroom InventoriesB5817Unredeemed Gift Cards/Certificates A5019Prepaid Services & SuppliesB5801Undistributed Revenue A5020Prepaid TravelB5901Accrued Undistributed Income A5021Prepaid Subscriptions/Memberships A5022Prepaid Capital Assets A5023Prepaid Software Expenditures A5030Prepaid Miscellaneous Expense A5901Prepaid Expense Year End Accrual

Non-SIS Accounts Receivable  Each department must submit a detail and aging report of their non-SIS accounts by July 16th  These reports must be reconciled to Banner as of period 14 (generally use FGITBAL)  Includes all receivables from entities that are external to UO (including other former and current OUS entities)

Non-SIS Accounts Receivable Account CodeAccount Code Title A3101Misc Advances Receivable-Non SIS A3103Misc A/R A3106Sundry Receivable A3109NIBL-Non SIS A3110Travel Advance Receivable – Non-SIS A3130Restoration Fund Receivable A3131Catering Accounts Receivable A3132Setup/Tech Accounts Receivable A3133Child Care Accounts Receivable A3134USDA Accounts Receivable A3135Season Ticket Accounts Receivable

Non-SIS Accounts Receivable University of Oregon Non-Student Accounts Receivable Aging Fiscal Year 2015 Department: Fund: Acct Code: Prepared by: Approved by: Date Submitted: DueDescription of< 1 Year1-2 Years2-3 Years3-4 Years4-5 Years> 5 Years Total* FromChargeFY15FY14FY13FY12FY Total * Reconcile grand total to the General Ledger by fund and account List indexes associated with this reconciliation:

Expenditure Cut-Off Guidelines  According to Generally Accepted Accounting Principles (GAAP), accrual accounting requires expenditures to be charged to the fiscal year and period in which goods are received or services are performed, regardless of when budget or cash is available.  For goods and services received by June 30 for which vendor invoices have not been received as of July 22, fill out an AP Report and forward it to BAO Financial Services. 

Prepaid Expense Accruals Prepaid Expense: Expenses for future fiscal years that are paid prior to June 30, 2015 should be coded to a prepaid expense account code. Post a reversing journal voucher with a transaction date in the future fiscal year and period that the goods or services will be received. This journal voucher may be processed at the same time, if the future period is open. For amounts posted as expense in FY15, that should be prepaid expenses for future years: Debit Department Index Prepaid Expense (A5013 – A5030) Credit Department Index Expense Account Code To remove the prepaid and recognize the expense in the future year: Debit Department Index Expense Account Code Credit Department Index Prepaid Expense (A5013 – A5030) *** Tax reportable expenses must first be coded to an expense account code when processing an invoice.

Prepaid Expense Account Codes Account CodeAccount Code Title A5013Prepaid Worker’s Comp Insurance A5019Prepaid Services & Supplies A5020Prepaid Travel A5021Prepaid Subscriptions/Memberships A5022Prepaid Capital Assets A5023Prepaid Software Expenditures A5030Prepaid Miscellaneous Expense *** A5901 Misc Prepaid Expense Year-End Accrual is no longer used.

Unearned and Undistributed Revenue Accruals Unearned Revenue - Payments received for goods or services which have not yet been provided. GAAP requires revenue be credited to the fiscal year that the goods or services will be provided. Revenue for future fiscal years that is received prior to June 30, 2015 should be coded to an unearned revenue account code. Post a reversing journal voucher with a transaction date in the future fiscal year and period that the goods or services will be provided. This journal voucher may be processed at the same time, if the future period is open. B5802 has been more clearly titled for this purpose. Undistributed Revenue - Revenue earned for goods or services and not yet distributed. Undistributed revenue should be cleared to zero by year-end close. B5801 has been more clearly titled for this purpose.

Unearned Revenue Accruals To deposit payment through TWADEPO when it is received: Debit (CASH, CHEK, CARD, or BANK depending how revenue was received) Credit (MISC)Department Index Unearned Revenue Account Code (B5XXX) To remove the unearned revenue and recognize revenue in the future year: Debit Department Index Unearned Revenue Account Code (B5XXX) Credit Department Index Revenue Account Code

Unearned & Undistributed Revenue Account Codes Account CodeAccount Code Title Unearned Revenue B5120Prepaid Tuition & Fees B5802Unearned Revenue B5816Athletics Prepaid Revenue B5817Unredeemed Gift Cards/Certificates Undistributed Revenue B5801Undistributed Revenue *** B5901 Accrued Undistributed Income is no longer used.

Dates to Remember:  June 5 June regular payroll deadline  June 17 Contact BAO for help accruing department non-student accounts receivable  June 26 Last day to submit wire transfer to AP  June 30 Last day to submit student receivables  June 30 Last day to deposit cash by 3:00pm  June 30 Goods and services must be received by this date to pay with FY15 funds  July 2 Last day to submit payroll form (PAA) for FY15 **(Items input in July require a 30-JUN-2015 transaction date)**

Dates to Remember:  July 7 Last day to submit upload JVs for period 12 (Z documents through AppWorx)  July 8 Last day to liquidate encumbrances that shouldn’t roll to FY16  July 8 Last day to submit budget changes for period 12  July 8 Last day to input an invoice for period 12  July 8 Last day to input JVs for period 12  July 8 Period 12 Close (5:00pm)  July 9 Period 12 reports are available **(Items input in July require a 30-JUN-2015 transaction date)**

Dates to Remember:  July 15 Last day to input JVs for period 14  July 15 Last day to input budget changes for period 14  July 15 Last day to input an invoice for period 14  July 15 Campus lock-out (5:00pm) For assistance with FY15 transactions after the lock-out, contact BAO General Accounting. **(Items input in July require a 30-JUN-2015 transaction date)**

Dates to Remember:  July 16 Detail and aging reports due for all non-SIS accounts receivable  July 22 Last day to submit year-end AP Reports  July 22 Period 14 close (FY15)  July 23 Period 14 reports are available **(Items input in July require a 30-JUN-2015 transaction date)**

Dating FIS Documents  After June 30 th, any document input for FY15 must have the transaction date changed to 30-JUN-2015 This includes:  Budget changes  Invoices  JVs  Travel reimbursements

Encumbrances  All open encumbrances (except zero balance items) will be rolled into FY16 Banner FIS operating ledger  Liquidate any encumbrances that you do not want to roll into FY16 before the close of period 12 (July 8th)

Late FY15 and Subsequent Event Reporting Report FY15 activity and subsequent events to BAO Financial Services as follows:  July 16 to 22 – for posting into Banner FIS during lock-out  July 23 to August 31 – to be included in UO Financial Statements  September to October – late reporting

Reporting Property Not Owned by the UO  To provide required information for leased asset year-end reporting  To provide adequate insurance coverage  FWIFLST – Banner query form to review inventory records Leased Property (Acquisition codes LE/LP) Loaned Property (Acquisition code LN)

Real Property  Performed in conjunction with BAO Property Control and Campus Planning, Design & Construction  Capitalization of construction in progress (CIP) expenses  Conversion of completed projects into the Banner FIS real property records  Componentization of specified buildings used extensively for research

FY15 Accomplishments  Governance change First independent year-end closing First stand alone financial statements UO Internal Audit Department Independent Board of Trustees Moved banking to US Bank Separate tax identification number  UO’s first bond sale  Facilities and administrative rate proposal submitted  Additional Cognos IDR reporting available

Looking ahead to FY16  Creating a University of Oregon account code reference webpage to replace the OUS version  Continuing modification of the UO Chart of Accounts  Continuing to update adopted policies

BAO Financial Services  Business Affairs  General Accounting, CAFAR, and Property Control – contacts contacts  Travel (6-3158) - office-contactshttp://ba.uoregon.edu/staff/travel- office-contacts  Accounts Payable (6-3143) -

Useful Links Year End COB Instructions and Deadlines FY15 UO Financial Statements

Closing Remarks