F ISCAL Y EAR E ND T RAINING Banner Finance Fiscal Year

Y EAR E ND S CHEDULE & I NSTRUCTIONS o The complete year end schedule & instructions can be found in Campus Connect within the Quick Links Channel o Click Infonet o Then click Departments o Then click Finance o Then click Year End Close Review the entire schedule and instructions to become familiar with it. 2

W HAT IS “F ISCAL Y EAR E ND ”? Fiscal year end is essentially closing the financial ledgers at the end of a twelve-month accounting period so that Financial Statements may be prepared. Upon completion of the Financial Statements, an audit is conducted by external auditors who render an opinion on the Financial Statements. 3

W HY IS F ISCAL YEAR END SO IMPORTANT ? To ensure that the College’s activities from July 1, 2013 through June 30, 2014 are accurately & completely represented by financial transactions which will ultimately become the College’s audited Financial Statements. Normally, the biggest challenge is determining whether a transaction should post to June (fiscal year being closed) or July (new fiscal year). This will be discussed later in the presentation. 4

F INANCIAL T RANSACTIONS What are the “financial transactions” of the college? 5 Payroll Checks Vendor Invoices & Payments Journal Entries Capitalizing Fixed Assets Cash Receipts from Students Grant Billings Recording Depreciation

Key Dates/Deadlines 6

K EY D ATES TO R EMEMBER ! R EFERENCE THE Y EAR E ND C LOSE S CHEDULE FOR SPECIFIC TIMES o 06/4 Last day to enter requisitions in Ivy Market for FY (all employees should plan ahead!) Regional management may impose earlier deadlines if desired. o 06/6 All FY requisitions in Ivy Market must be approved by 5:00pm o 06/16 May begin entering requisitions in Ivy Market for FY

K EY D ATES TO R EMEMBER ! C ONTINUED R EFERENCE THE Y EAR E ND C LOSE S CHEDULE FOR SPECIFIC TIMES o 06/27 No Financial Aid disbursements o 06/30 Last day of activity in Banner A/R which will feed to FY o 07/01 Roll of General Ledger balances (assets & liabilities) to FY o 07/8 Last day for regions to enter & complete JVs for FY o 07/8 Last day to input on PHAREDS to allow feed to FY

K EY D ATES TO R EMEMBER ! C ONTINUED R EFERENCE THE Y EAR E ND C LOSE S CHEDULE FOR SPECIFIC TIMES o 07/8 o Last day to input vendor invoices & credit memos for FY o Last day to enter fixed asset adjustments and disposals for FY

K EY D ATES TO R EMEMBER ! C ONTINUED R EFERENCE THE Y EAR E ND C LOSE S CHEDULE FOR SPECIFIC TIMES o 07/9 o No entry on FAAINVE o Last day to close unneeded purchase orders and general encumbrances for FY o All Otags & Dtags must be converted to permanent tags o Approve all June invoices, June JVs, & fixed asset adjustments out of approval queues o All incomplete finance documents must be removed 10

K EY D ATES TO R EMEMBER ! C ONTINUED R EFERENCE THE Y EAR E ND C LOSE S CHEDULE FOR SPECIFIC TIMES o 07/10 No entry on FAAINVE o 07/10 & 11 Chris Ruhl reviews open encumbrances o 07/11 Remaining open encumbrances for FY are rolled to FY o 07/11 Budgets for inception-to-date funds are rolled to FY o 07/14 Office of the President-Finance begins input of final year end adjustments and journal entries and preparation of Financial Statements. 11

Transaction Dates & Fiscal Periods 12

Transaction dates are the “driving force” that determine which month a transaction posts to. The date of final approval does not determine which month a transaction posts to. 13

T RANSACTION D ATES o During fiscal year end close, users will be able to enter a transaction to either fiscal year. o The system will always default the current date for the transaction date. o Users may change the transaction date to a June 2014 date or a July 2014 date to enter it against the correct fiscal year. o Transactions with a June 2014 date (or prior) will post to FY o Transactions with a July 2014 date (or later) will post to FY

F ISCAL PERIODS AT I VY T ECH A FISCAL YEAR AT ITCC RUNS FROM J ULY TO J UNE. MonthPeriodComment Transaction Dates 00 Users may not post directly to period 00. Only used for new fiscal year beginning balances July01July 1 – July 30 August02August 1 – August 31 September03September 1 – September 30 October04October 1 – October 31 November05November 1 – November 30 December06December 1 – December 31 January07January 1 – January 31 February08February 1 – February 28 March09March 1 March 31 April10April 1 – April 30 May11May 1 – May 31 June12Open through July 11June 1 – June 30 June14 (Accrual period) Only CO-Finance may post to period 14. June 30 only 15

General Ledger Roll 16

G ENERAL L EDGER ROLL – J ULY 1 o General ledger (G/L) ending balances for FY (assets and liabilities) are rolled once to FY beginning balances on the evening of July 1. (performed by Finance System Administrator) o The document numbers for the G/L roll start with “CGLR” and have a transaction date of July 1 (period 00). o Banner then allows concurrent year processing. This means any transaction posted to June after the G/L balance roll will update the June ending balance and the July beginning balance at the same time. This is why some transactions appear to “double-post”. They basically post to both fiscal years’ balances. o The rolled balances post to fiscal period “00” in the new year and the concurrent transactions also post to period “00” in the new year. 17

G ENERAL L EDGER ROLL – J ULY 1 Concurrent Year Processing Illustrated Period 12; June 2014 Period 00; July 2014 Activity Trans. Date Date Date Date 7/1/14 End. balance 5, cr 7/1/14 7/1/14 CGRL1401 Beg Bal. 5, cr 7/2/14 6/30/14 JV cr 7/2/14 6/30/14 JV cr 7/3/14 6/30/14 JV , dr 7/3/14 6/30/14 JV dr June Final Ending Balance 4,300.00cr July Final Beginning Balance 4,300.00cr 18

Fixed Assets & Inventory Items 19

F IXED A SSETS & I NVENTORY I TEMS o July 8 deadline: o All FFAADJF transactions (adjustments & disposals) for FY should be completed to allow time for approval. Be sure to use a June 30 or prior transaction date. o July 11 deadline: o All OTags and DTags from FY must be converted to permanent tags. o FFADEPR must be set up for all depreciable capital tags which had an invoice transaction date of June 30 or prior. o Depreciable capital tags with an invoice transaction date of June 30 or prior must have a depreciation start date on FFADEPR of June 30 or prior (within FY ). 20

F IXED A SSETS & I NVENTORY I TEMS - C ONTINUED o Write off adjustments for Capital items which are physically disposed of in FY (July or later) should not be entered on FFAADJF until after depreciation is run for FY The reason is because Banner does not distinguish what fiscal year the asset was disposed of for depreciation purposes. If the new year write off is posted prior to the depreciation run for the old year, Banner will not calculate depreciation for the old year on that asset. Fixed Asset Custodians will be notified when depreciation has been run. We anticipate running depreciation for the old year the last week of August. 21

Encumbrances 22

P URCHASE O RDERS & G ENERAL E NCUMBRANCES o July 9 o Regions & CO close unneeded POs and general encumbrances from FY Use a June (or prior) transaction date. o July 10 & 11 Chris Ruhl review open encumbrances o July 11 5:00pm roll of encumbrances to FY o Process takes balances of open purchase orders and general encumbrances from FY and rolls them into FY o The document numbers for the Encumbrance roll start with “CENR” and have a transaction date of July 1. o Performed by Finance System Administrator 23

Accounts Payable 24

A CCOUNTS P AYABLE – I NVOICES & CREDIT M EMOS K EY F ACTORS o When a vendor invoice is received there are 3 key questions to ask: o 1. When was this product or service received by ITCC: June 30 and prior or July 1 and later ? Create two stacks of invoices based upon your answer. o 2. Does an encumbrance exist for this product/service? o 3. If an encumbrance exists, what fiscal year is the encumbrance in? Note that info on the vendor invoice. o The transaction date of the posted invoice will be the month the expense is recorded in; not when the check is issued! 25

A CCOUNTS P AYABLE – I NVOICES & CREDIT M EMOS M ERCHANDISE & SERVICES RECEIVED BY ITCC T HROUGH J UNE 30 Merchandise & services received by ITCC through June Entry on FAAINVE Encumbrance exists in FY Encumbrance exists in FY No Encumbrance Calendar date June 1 - June 30 Pay against encumbrance with June transaction date Reduce encumbrance with July transaction date; then pay as direct pay with June transaction date Pay as a direct pay with June transaction date Calendar date July 1 – July 8 Pay against encumbrance with June transaction date Reduce encumbrance with July transaction date; then pay as direct pay with June transaction date Pay as a direct pay with June transaction date July 11: Encumbrance roll to FY Entry on FAAINVE Encumbrance no longer exists in FY Rolled encumbrance or new encumbrance created in FY No Encumbrance (Central Office only) Calendar date July 14 & later Reduce encumbrance with July transaction date; then pay as direct pay with June 30 transaction date Pay as a direct pay with June 30 transaction date (Regions) Calendar date July 14 & later If material amount, create FT1 JV with June 30 transaction date to accrue expense & liability Pay against encumbrance with July transaction date/ Reverse FT1 JV with July transaction date. Pay as a direct pay with July transaction date/Reverse FT1 JV with July transaction date.

A CCOUNTS P AYABLE – I NVOICES & CREDIT M EMOS M ERCHANDISE & SERVICES RECEIVED BY ITCC J ULY 1 OR LATER Entry on FAAINVE Encumbrance exists in FY Encumbrance exists in FY No Encumbrance Calendar date June 1 - June 30 Reduce encumbrance with June transaction date; then pay as direct pay with July transaction date Pay against encumbrance with July transaction date pay as direct pay with July transaction date Calendar date July 1 – July 8 Reduce encumbrance with June transaction date; then pay as direct pay with July transaction date Pay against encumbrance with July transaction date pay as direct pay with July transaction date July 11: Encumbrance roll to FY Entry on FAAINVE Encumbrance no longer exists in FY Rolled encumbrance or new encumbrance created in FY No Encumbrance Calendar date July 14 & later Pay against encumbrance with July transaction date pay as direct pay with July transaction date 27

Budget Roll 28

B UDGET R OLL o July 11, 5:00pm: Budget Roll to FY o This process takes budget available balances for inception- to-date funds from FY and rolls them into FY o The document numbers for the Budget roll start with “CBDR” and have a transaction date of July 1. o Performed by Finance System Administrator 29

Grants 30

G RANT M ANAGEMENT o Words of Wisdom from the SPA Office o Grant financial reporting will be challenging the first fiscal quarter of FY 2015 (July 1 – Sept 30) so plan ahead: o Check Balances o Work with SPA to resolve concerns o Work with Project Directors to effectively manage accounts o Don’t put issues off until too late 31

Document Management 32

D OCUMENT W RANGLIN ’ o Don’t let your Banner Finance documents get out of control! o Ensure JVs, requisitions, vendor invoices, etc. have proper supporting documentation scanned or attached to ensure timely reviews and approvals. o Review all June documents in Banner approval queues on a regular basis so that they are all approved/denied by July 9, o Remove incomplete documents on a regular basis so that they are all removed by July 9,

QUESTIONS Ivy Market questions: Contact Andy Williams Banner Finance questions: Contact Joy Abel-Kraft 34