1. Fiscal Close Workshop May 2016 Slides from this workshop will be available online later this week at www.accounting.uci.edu/fiscalclose/ 1

2. Agenda Introduction and Overview – John Douglas Transactions –Fiscal Closing Transactions & Intercampus Transactions – John Douglas –AP/Disbursements & Travel – Karen Miller Encumbrances – Melissa Lee Payroll – Chris Hernandez Contracts & Grants – Rebecca Tangen Decision Support – Kevin Chung Questions 2

3. What is Fiscal Close? Fiscal Close is the process of: –Ensuring that our financial data is accurate for the ending fiscal year; –Organizing the campus financial records for inspection by auditors; –Creating our yearly financial statements which are then consolidated with the other UC campuses into system-wide statements and reports for the Regents. 3

4. Responsibilities Departments and their coordinating points are responsible for seeing that all income and expense is recorded accurately and that all accounts close in a solvent condition. The Accounting Office is responsible for consolidating data, preparing year end reports and statements for the Office of the President, and producing the final ledger. 4

5. Three Stages of the Close for Departments Preliminary – This stage reflects all direct charges for the fiscal year. Interim – The one-week period after the Preliminary deadline during which departments can make adjustments. Final – There is no more department input. The Accounting Office makes necessary adjustments for the Final ledger. 5

6. 2015-16 Versus 2014-15 KFS Some year-end processes have been automated (examples: agency fund processing, principal/interest reclassifications), but Most procedures and interfaces are unchanged. Most of the calendar dates are also essentially unchanged. 6

7. July 6 – Recharges complete July 8 – Prelim July 15 – Interim – Period 12 will close in KFS, and certain non-final docs will be canceled (GEC, BA, BAT, YEDA). August 5 – Final August 10 – July will close Key Dates 7

8. Fiscal Close What to Expect 8

9. What You Need to Know to Close the Year June 30 – Deposits: CR, CCR, COD July 1 – Last day to initiate any KFS Maintenance Changes July 8 – Last day for KFS initiated documents where Fiscal Period 12 has been selected (drop down) must be FINAL except for the documents listed on the next slide. 9

10. What You Need to Know to Close the Year July 15 – Last Day for Fiscal Period 12 FINAL KFS initiated documents: –BAs & BATs –GECs –YEDAs (Available July 9 – July 15) 10

11. Accruals & Deferrals Quick Guide to Processing Accruals & Deferrals for Fiscal Close 2016 11

12. Why Accruals & Deferrals? In accordance with UCOP Accounting Policies & Procedures, financial activity must be recorded in the Fiscal Year that relates, corresponds, or supports that activity. 12

13. What is an Accrual? Income Income that you earned in June but will not actually have the funds until July. Expense Expenses that you incurred in June but will not pay until July. 13

14. What is a Deferral? Income Income that you received in June but relates/corresponds/supports activity that will not happen until July. Expense Expenses that you paid for in June but relates/corresponds/supports activity that will not happen until July. 14

15. Recording Accruals & Deferrals KFS Document available July 9 = YEDA –(Year End Department Accrual/Deferral) Minimum amount ≥ $10,000 –(Expenses per Invoice) Minimum amount ≥ $5,000 –(Capitalized Equipment) Minimum amount ≥ $35,000 –(Plant - Capitalized Construction costs) 15

16. New Fiscal Year What to Expect 16

17. New Fiscal Year July 1 (KFS Transactions) Carry Forward Balances = Budget minus Actuals Object Code 0008 Consolidation Code UNAL Fiscal Period BB vs. CB 17

18. Intercampus Transfer Transactions 18

19. UC Campus Tab

21. AP/Disbursements Travel Karen Miller 21

22. Invoices Deadlines Invoices must be submitted to Accounts Payable no later than July 7th 4pm. Email Invoices to accounts-payable@uci.eduaccounts-payable@uci.edu Invoices of $10K and over must be approved by the Fiscal Officer in order to pay. PREQs in Processed or Final status will automatically post to the ledger. Invoices for FY15-16 that are not processed by July 8th must be accrued by the department if the expense is greater than $10K 22

23. Invoices Tips When sending invoices to AP to pay please ensure the PO has enough money and is ok to pay on. Invoices must be submitted to Accounts Payable no later than July 7th. Email to accounts- payable@uci.eduaccounts- payable@uci.edu 23

24. TEM and DV All TEM and DV documents need to be submitted, scanned and approved by Travel Accounting by 4 p.m. on June 22nd to be recorded as expenses for 2015-16. Continue to process your documents after June 22nd, Travel Accounting will make every effort to approve your documents by the June 30th deadline. 24

25. TEM and DV Cont’d Anything approved after June 30th will be posted in the next fiscal year. Anything with a travel end date older than six months will need exceptional approval. Any travel with an end date older than a year cannot be processed For Travel Fiscal Close Questions contact travel- accounting@uci.edutravel- accounting@uci.edu 25

26. Encumbrances Melissa Lee 26

27. Encumbrance Report 27

28. Encumbrance Carry Forward Encumbrance Carry Forward on 7/11/16: o External Encumbrance (EX) = Carry Forward  Purchase Orders o Cost Share Encumbrance (CE) = Carry Forward  An encumbrance related to a cost-share account o Internal Encumbrance (IE) = Carry Forward  Facilities Management Internal Encumbrances  Travel Authorizations o Pre-Encumbrance (PE) = No Carry Forward 28

29. Encumbrances Please see the 2015-16 Fiscal Year-End Close Information & Dates instructions, for deadlines & details per encumbrance type. –Special Encumbrance Deadlines: Last Day to submit a PO Close request to Central Purchasing: June 24 Last Day for Contract Managers to close fulfilled Low Value Purchase Orders: June 30 All PO Amends must be final on June 30 to post to the 2015-16 Fiscal Year 29

30. Payroll 2015-16 Fiscal Closing Dates Chris Hernandez

31. June Bi-Weekly (B1) Payroll Time Reporting Deadline June 22nd –Pay hours and leave usage for 6/5/16 – 6/18/16 (biweekly)

32. June Bi-Weekly (B1) Payroll Cycle Cutoff June 23rd –First deadline for: Payroll Expense Transfers Late/Reduce Pay Additional Pay transactions –Pay Cycle “B1” and Pay Period End date “061816”

33. June Monthly Payroll Time Reporting Deadline June 24th –May 2016 leave usage (monthly)

34. June Monthly Payroll Cycle Cutoff June 27th – June Monthly payroll cycle cutoff –Second deadline for: Payroll Expense Transfers Late/Reduce Pay Additional Pay transactions –Pay Cycle “MO” and Pay Period End date “063016”

35. Supplemental (XX) Payroll Cycle Cutoff July 1st – –Third deadline for Payroll Expense Transfers –Final deadline for: Late/Reduce Pay Additional Pay transactions Z payments (School of Medicine) –Pay Cycle “XX” and Pay Period End date “060116”

36. Payroll Expense Distribution Ledgers for June Payroll July 2nd – –PPP5302 payroll ledgers Available in Electronic Document Library (EDL)

37. Special (XX) Payroll Cycle Cutoff July 6th – –Final deadline for Payroll Expense Transfers –Pay Cycle “XX” and Pay Period End date “070316” –No Late/Reduce or Additional pay transaction. They will be Deleted!

38. Payroll Expense Distribution Ledgers for June/July July 7th – –PPP5302 payroll ledgers available in Electronic Document Library (EDL)

39. Accruals for Transferring Payroll Already Paid in 2015 -2016 Fiscal Year Business Work with Central Payroll (GEC-R accrual) Departments process Payroll Expense transfer –Provide Post Authorization Notification (PAN) to Central Payroll Benefits must move with salary –Exceptions are Contract and Grant funds

40. Contracts & Grants Rebecca Tangen 40

41. Decision Support Kevin Chung

42. Decision Support Tools BLISS Ad-Hoc Query Organization Account Status –You can query by the highest org –Groups Account Balances by Income and Expenses –Ensure that your Income categories Budget and Actuals align so the variance is zero. Object Code Balance Report (FS0219) –Shows Expense Object Codes that have credit balances 42

43. Pre-Run Reports Reports being pre-run and saved: –Ledger Reconciliation –Account Summary –Account Transactions –Fund Summary Reports generated for July 1 – July 15

44. New Functionality: Saved Queries Account Summary Fund Summary Account GL Detail Ad-hoc Ledger Reconciliation Account Transaction

45. Questions? Online Resources Workshop slides available online later this week. Check the “KFS News and Announcements” Portlet on ZotPortal for deadlines. More information is available on the Accounting and Fiscal Services website: www.accounting.uci.edu/fiscalclose/ 45