1. Welcome Accounts Payable FY2010 Year-End Closing Workshop Presented by: Sandra King, Accounts Payable Manager Office of Business Services

2. Importance of Year-end Closing The College meets its obligations: Legal Financial Budgetary BY Robert M. Preston, M.B.A., M.S. Director of Financial Reporting and Operations

3. GOAL To close the accounting books on time To close the accounting books accurately Ensure all vendors, employees and students payments are recorded in the proper year

4. Topics of Discussion Fiscal year-end processes Your role in the closing Key due dates and submitting documents related to: Vendor Invoices and Travel Related Payments Petty Cash & Employee Reimbursements Invoices Corrections Accruals Carry Forward Purchase Orders Check Deposits

5. Your Role in the Closing Ensure all deadlines are met You have followed the year-end close processes. Ask questions if you need help!

6. How are we going to achieve our goal? staying current ensure all payment requests for FY 10 has been forwarded to Accounts Payable Meeting the deadlines (making sure invoices are in the hands of Accounts Payable and not inter office mail by the due dates) Asking for clarification and help Ensuring you have received invoices from vendors for all Goods & Services completed and received by June 30, 2010.

7. What is the Fiscal Year? Montgomery Colleges fiscal year runs from July 1 to June 30 th New Fiscal Year for FY11 starts on July 1 st 2010 Specific year end deadlines are set in order to close the books and prepare annual financial statements

8. What Determines the fiscal Year ? The Date of Receipt of Goods and Services Determines the fiscal year expenditure If received before June 30 th - FY10 If received after June 30 th - FY11

9. Travel & Employee Reimbursement All local and long distance travel completed as of 6/30 should be recorded as an expense of FY 2010 All travel reports and employee reimbursements processed before 6/30 will be charged to FY 2010 All travel reports and employee reimbursements submitted after 7/10 will be paid out of the next fiscal year FY11 budget. The department must submit paper work and original receipts to Accounts Payable by June 30, 2010.

10. Blanket Purchase Orders All (B#) Blanket Purchase Orders will be closed as of June 30 th. Departments must make sure they have received and approved all invoices for the blanket purchaser orders Example –June payment for a lease

11. What happens? If the final June invoice is not received by June 30 th for Blanket Orders or other types of payments, you must contact the vendor immediately to forward an invoice to Accounts Payable If no invoices is received by July 10 th, you must submit an accrual listing with complete information and backup to Accounts Payable

12. Accrual What is an accrual? If goods have been received or services performed by June 30, 2010, the invoice amount is accrued to be booked in the correct year (FY10).

13. Accruals – continue At the end of FY10, Accounts Payable has to accrue our obligations. An obligation is any amount that the College owes. The obligation amount is based on: Amount of unpaid invoice. Amount of items received, but not yet paid. Amount reported by college or departments.

14. Accruals - continue Accruals will appear on your June –FY10 ledger If invoices are over the accrued amounts the differences will be charged to the next fiscal year- FY11

15. Accruals – continue Example of Accrual Submit a PO for a computer costing $3,200 in May -The computer is received in June The invoice is received and processed in July (in new fiscal year) Because the computer was received before year- end, it represents an expense to fiscal year 2010

16. Fiscal Year _____________ MONTGOMERY COLLEGE ACCOUNTS PAYABLE ACCRUAL REQUEST FORM Fund, org, account, program Dollar AmountVendor NamePO# Inv or Order # Date Received- goods/servic esReason For Accrual Example 1110-225558-6020-0010$1,500.00Formost Printing Inc50944555A25888916/11/09 Invoice not received by 6/30 ` NOTE: ONLY FOR GOODS & SERVICES RECEIVED PRIOR TO JUNE 30. **SUPPORTING BACKUP DOCUMENTATION MUST BE ATTACHED (Contract, Packing List, Quote, Invoice) Must be received in Accounts Payable no later than July 10. Account Manager's Signature: Date: Ext.______________ Account Manager (Print) Departme nt: PRINT FORM MAIL TO: Accounts Payable, MKE 230-Attn Sandra King, AP Manager

17. Accounts Payable Accrual Diagram ACCURALS TRANSACTION TYPE PO Encumbered FY10 Received Goods and Services (06/30/10) Invoice Received 07/01- 07/09 Accrual Required If not paid in Banner) Process Direct Payment Invoice NO PO Required Actual goods or services recd by 06/30/10. YES or NO YES Complete On-line Accrual Form Submit to AP with invoice or supporting back-up Purchase Order Expenditure YES Actual goods or services recd by 06/30/10) YES Complete On-line Accrual Form Submit to AP with invoice Purchase Order Expenditure YESActual goods or services recd by 06/30/10 NO Invoice Estimate Accrual YES Complete On-line Accrual Form Submit to AP with PO copy, supporting back-up

18. The accrual form Use the accrual form to submit your request. The form is located on the Accounts Payable website www.montgomerycollege.edu/departments/obs

19. Required information Please include: Vendor name Amount Account number Account manager approval Purchase order number Supporting Backup Reason for Accrual

20. Supporting Documents Documentation To support your accrual you may include the following: Copy of the PO, Contract for services Packing Lists Order Form/Confirmation Proof of Delivery Receipts Written documentation from vendor on letterhead

21. Carry forward Encumbrances/ Purchase Orders What are carry forward encumbrances/purchase orders? Purchase orders that are established in current fiscal year (FY10), but no payment and receipt of goods or services are completed by June 30, 2010.

22. What should be done to request carry forward purchase order? A listing must be completed using the carry forward request form and forwarded to Accounts Payable by July 10, 2010. Written details supporting the carry forward purchase orders must be provided The Balance of the purchase order can be carried forward to be used in FY11.

23. Important to Know about Carry Forward Purchase Orders Payment will not be made to vendors until August -of the next fiscal year once FY10 budgets are rolled and the year is closed.

24. Invoice Corrections Journal entries-account cleanup CUT off Date is July 10, 2010 for all corrections Invoice journal correction form must be completed and forwarded to Accounts Payable with supporting backup documentation.

25. Prepayments Expenses for the coming fiscal year that require payment prior to July 1 st can be submitted to Accounts Payable clearly marked FY 11 Examples: Subscriptions and membership renewals, insurance.

26. Closing Deadlines June 15 th Last day for P-card Charges June 30th Last day to submit the following Petty Cash Reimbursement Local Travel under $25 July 10 th, all FY10 invoices, travel, employee reimbursements

27. Final Cut off Date All invoices, travel and requests for payment must be received in Accounts Payable no later than July 10, 2010 at 5:00 p.m. Accrual listing and supporting backup must be received July 10, 2010 at 5:00. Carry forward purchase order requests form are due by July 10, 2010.

28. Closing- PO (Encumbrances) Encumbrances balance on Purchase Orders as of June 30, 2010 are carried forward to FY 2011 If the departments is not using open purchase orders in FY11, the PO can be closed. please submit the request to Accounts Payable by June 30 th.

29. Deficits/Over Expenditures Units are responsible for monitoring balances in their accounts throughout the year. A deficit is when the cash balance in general ledger is negative. Deficits must be cleared in a timely manner, but no later than June 30 th (fiscal year end)

30. Refund checks for deposit Do not hold checks. Please bring all checks sent directly to your department to the Cashiers window as they are received. Cash Closing – done on June 30th June 30 th deposits will be recorded to fiscal 2010 If you deposit money after 6/30, the funds will appear on your FY11 ledger.

31. Where do you go for help? Visit Accounts Payable Website: www.montgomerycollege.edu/departments/obs Contact Accounts Payable at X75338 Email Accounts Payable AccountsPayable@montgomerycollege.edu

32. Questions?