Year-End Accruals The University of Texas System Administration

2 Overview Presentation Objectives: To explain why we capture accruals To review end of year deadlines To review the Accrual Portal

3 Year-end Accruals  The University of Texas System underwent external audits by Deloitte & Touche (D&T) in fiscal years 2005 and  As in fiscal year 2007, this year Internal Audit will be auditing our financial statements  One of the issues raised by the auditors during the D&T audits is the payment of vouchers in the new fiscal year that should have been paid or accrued in the prior fiscal year.  At the end of fiscal year 2007, System Administration accrued $1.3 million of revenues and expenses from accrual forms submitted.

4 Due Dates August 26 th – Pmt requests due to APS by 5 p.m. to have in August Stmt. of Accounts September 4 th – DEFINE closes for month of August September 8 th – Payment requests due to APS by 5 p.m. to have in 13 th month activity. September 11 th – Rollback of prior period vouchers September 11 th – All accruals due to Controller via the portal by 5 p.m. September 14 th – DEFINE closes for 13 th month

5 Accruals Only goods or services received or performed prior to 8/31 should be considered An encumbrance is not an accrual. An encumbrance is a reservation of the use of funds, it does not affect expense. Talk to managers in your department. They may be aware of bills yet to come.

6 Accrual Portal $1,000 minimum absolute dollar value for accrual per payment Each department will be able to electronically enter and submit their accrual forms to the Controller’s Office (backup will need to be sent manually to Andrea Castro). This does not change the process for payment once invoice is received for payment. Departments with a large number of accruals (in excess of 15) can submit an excel spreadsheet instead of entering manually

7 Accessing the Portal List anyone who would need to have access to the portal Sherill Boline will create members and send a to the members with access information Website is:

8 Examples that should be entered on Portal Departmental travel occurred 8/29 but centralized billing not yet received. Enter accrual into portal. Contractor performed work on renovation prior to 8/31, but have not yet sent bill. Ask contractor for an estimate and enter on portal. Hosted lunch for BMC on 8/30 but bill not received. Enter accrual into portal.

9 Examples that should NOT be entered on portal Already submitted payment request with invoice to APS by 9/ 8. This will be captured in departmental account. Registered an employee to attend training on 9/10. This occurs in next fiscal year.

10 QUESTIONS? Technical Portal Questions Sherill Boline x4558 Accrual Questions Dana Malone x4526