1. YEAR END CLOSE - JUST ANOTHER MONTH! FOA Conference NAPA, April 15-17, 2007

2. AGENDA Background Why, What, Where? Issues that this won’t resolve Preparing and Planning Campus perspectives Year-End Checklist and Timeline Includes RMP issues and guidelines Discussion and Q & A

3. Background: Why Is This Needed? Frequently asked questions: Why isn’t this written down anywhere? Do you have a year-end checklist we can look at? What is new about this year (besides almost everything)? Importance of month-end to year-end success New campus staff

4. Background: What are we trying to Change? Overtime and Stress Lack of communication Lack of time for Management Review More Standardization & consistency in reporting Make Year-End just another Month!

5. Background: Where did this information come from? Compilation of different Year-End presentations and/or checklists. Year-End closing schedules for several campuses reviewed Similarities in approach, if not in detail RMP Interim Operating Guidelines Yr-End Checklist prepared by CO

6. Background: What has Changed? SCO Deadlines CO Deadlines Focus on timeliness and importance of GAAP Reports Revenue Management Program CSU Interim Operating Guidelines

7. Background: Issues We Can’t Solve Here Lack of standardization Campus policies vary Campus procedures for implementing CSU policies vary This represents a framework Some Items ARE required Others suggested to assist in meeting deadlines One size may not fit all so plan ahead and customize

8. Kicking It Off – Prepare Early Monthly recons – Keep ‘em current and resolve factors Preparation begins in January and February What is changing on YOUR campus? (PS Student Finance, GL issues, PS AR/BI, Asset Mgt) Look at last year, how did you do?

9. Kicking It Off – Prepare Early Key Deadlines Work backwards from these dates when planning June 15 - SCO Cut-off for Claims\PFA’s\Transfer Requests July 15 – FIRMS Submission COMPLETED (24 hour review backs this up a day) All SCO required reports per legal manual May change slightly with 2007 final dates

10. Campus Perspectives – Cal Poly History June 30, 2002July 29 th June 30, 2003July 28 th June 30, 2004July 20 th June 30, 2005 July 14 th June 30, 2006July 7th

11. Campus Perspectives – Cal Poly The First Year: New CSU deadline – July 15 th Can’t just work faster Examined Month-End close – unresolved issues impact Year-End (a lot!) Re-engineered the year-end close calendar Re-examined all campus deadlines Reviewed staff assignments – spread the tasks Examine all processes Materiality Timing Impact on departments Executive Sponsorship

12. Campus Perspectives – Cal Poly Preparing Campus Departments Year end deadline memo from Associate Vice President Cover page calls attention to important changes Schedules address all finance year end deadlines − Purchasing − Accounts Payable − Budget − Payroll − Accounts Receivable − Travel − Cashiering

13. Campus Perspectives – Cal Poly Kick-off with staff in early May Update last years year-end internal checklist Weekly meetings beginning mid May Daily beginning mid June Approximately 1 hour All players attend About 25 people

14. Campus Perspectives – Cal Poly Campus budget policy: “roll forward” all unexpended balances to the depts in the subsequent year Any obligation that did not get accrued as of year end are processed as a current year transaction in the subsequent year

15. Campus Perspectives – Cal Poly Backing up the Calendar: CSU Acceptance by July 15 th 24 hours for CO manual review of FIRMS Campus Management need 24 hours for review 4 hours for close process & derivation Actual close 2 ½ day before the 15 th Legal books can realistically only be open 7 working days after June 30 th Most AP documents received after this Positive Payroll not available in PIMS until July 7

16. Campus Perspectives – Cal Poly Summary of major deadlines: Chargebacks cut-off May 25 Some deadlines now go later AP/PO will hard close on June 29 Run the GL15 on July 1 or the evening of June 30 Invoices received in AP BY July 5 th may be accrued in legal based on materiality Any invoices received by Aug 31 will be accrued in GAAP based on materiality

17. Campus Perspectives – Cal Poly Since no payroll accruals for legal closing Positive pay redefined as June thru May All payroll accruals recorded in GAAP By not accruing any payrolls in legal, GAAP process can be streamlined All Prior year payroll accessed electronically for a GAAP accrual journal – no picking and choosing

18. Campus Perspectives – Sonoma History June 30, 2002July 30 th June 30, 2003July 28 th June 30, 2004July 28 th June 30, 2005 July 15 th June 30, 2006July 12 th 06/07 will be our third year to “close early”

19. Campus Perspectives – Sonoma The First Year – Creating New Standards New CSU deadline – July 15 th Primary Considerations - External Revised Deadlines for Campus Customers Reconfigured year end deadlines for end user requests, submissions and processing − PO, AP, AR, Chargebacks, Travel Notified Departments of early deadlines in February Communicated with key customers regularly from February thru June

20. Campus Perspectives – Sonoma The First Year – Creating New Standards Primary Considerations - Internal Budget and Accounting must work hand in hand all year long Close Clean every month to minimize year end issues Implement pre close SAM99, Revolving Fund and Bank Recons Aggressive monthly resolution of Recon Items Full 12 month cycle for Chargebacks and payroll Standardize June to May schedule for Chargebacks and positive payroll Test PS configuration and set up early and often Internal Close deadlines start May 1

21. Campus Perspectives – Sonoma Summary of Key Internal deadlines: Load SAM99 accrual reversal file as soon as available Set up Closing Trees and CFV’s and begin to test in May Ensure that all Recon Items and FIRMS issues are current (30 days old or less) and a clear path to prompt resolution is identified Enabling Tools – SAM99 mid and month end files loaded into PS for query and analysis, WF CEO can be reviewed as the month progresses to resolve Bank Rec issues before close Apply year end patch(es) in May Start running the GL15 in report mode in early June Close out/finalize as many PO’s as possible ALL subsystems must hard close on June 29 Work with subsystem teams closely during “crunch time” After June 29, it’s all about the GL! Run GL015 in final mode on July 1 or during the evening of June 30

22. Campus Perspectives – Sonoma Backing up the Calendar for 06/07: CSU Acceptance by July 15 th 24 hours for CO manual review of FIRMS Key Goals for Sonoma: Close subsystems by June 29 Have SAM99 balanced, Bank Rec complete and all JE’s posted by July 9 Close the GL Clone PRD, Derive FIRMS for final analysis and review Resolve all FIRMS issues and derive and submit by 7/10/07

23. Considerations for first RMP Close - More to Come… Two Bank Recons – STO and WF CO Pullback of $5K prior year payroll “subsidy” Close GF without accruals or current year BBA No GF Revolving Fund closure Entries for Investments, Cash, unpaid Claims, Student Health Services fees Do not accrue Payroll, CSURMA, SUG Prepare for designated Fund Balance entries for Fund 0948.485

24. Year-end Closing Checklist – March & April Year end cut-off schedule to campus users Reconcile 101001-Cash in State Treasury and 101006-Cash in Agency Accounts Run preliminary data quality review Begin to move accruals out of GF If needed, develop a plan to migrate Student Health Service fee activity from Fund 948.451 to Fund 948.485 for year end

25. Year-end Closing Checklist - May Finalize year-end schedule and distribute to staff Load SAM99 Accrual Reversal Tape SAM99 should be run with Accrual Reversal checkbox marked from this point forward Analyze data dependencies for month and year-end entries Meet with departments or contact third- party providers to determine dates information will be ready or potential cut-off of activity to meet deadlines

26. Year-end Closing Checklist - May Develop strategy for reclassification of investment income to 499 101006 balances will be re-mapped to 108090 – investments Campus can use 101006 or 108090 – both mapped to FNAT 108090 All investment income posted to Fund 499 Collect data and analyze capital leases, capital projects & other potential complex transactions Develop strategy for booking to ledger

27. Year-end Closing Checklist - May Review reverting funds Clear any remaining assets and liabilities CY revenues and expenses will close to fund balance clearing Review closing rules and trees Update for reverting/reverted funds Confirm all of 0948 fund closes to 305002 Chancellor’s Office pull back of $5,000 in reverting General Fund year (in 2007, pull back 2003)

28. Year-end Closing Checklist - Early June Close and reconcile May data Notify Auxiliaries of Year-End Deadlines FIRMS/GAAP/IPEDS Request Contingent Liabilities list June 15 th SCO MUST have final 2006/07 Claims/PFA/Transfer Requests in Hand for guaranteed processing Consider if enough 0948 balance available to meet June 30 payroll

29. Year-end Closing Checklist - Interdependent Tasks Tasks listed for the last week of June and first week of July are largely interdependent Planning and performance is critical to meeting close deadline

30. Year-end Closing Checklist - No later than June 23rd Review and Adjust A/R Reserves Clear all SAM99 reconciliation issues identified in May month- end or June mid-month review Clear all known FIRMS error messages

31. Year-end Closing Checklist - No later than June 29th Record all chargebacks All Requisitions must be sourced to a Purchase Order or cancelled Final Student System feeds to A/P completed, prep for final fiscal year check run

32. Year-end Closing Checklist - June 29-30 Post/Reconcile Payroll Post Final ProCard from June statement Receiving Completed Close Purchasing Close Cash Receipts Final Check Run/Claims Close Accounts Payable

33. Year-end Closing Checklist – July Week 1 Fixed Assets and Retention Entries Complete Run and Post GL 15 process Manually liquidate Reimbursed Activities remaining Encumbrance Balance Complete Manual Obligations Final Reimbursed Activities Billing Completed/Confirm RA in Balance by CSU Fund Reconciliation of all subsystems to ledger complete: ARBI, Student, etc.

34. Year-end Closing Checklist – July, Week 1, Continued Complete routine month-end journal entries Load Bank Recon/Paid Claims (CD102)/SAM99 Files Bank Reconciliation Completed – Negative Cash Balances Resolved through reclass/remap to investment account All investment income reclassified/posted to 499 only

35. Year-end Closing Checklist – July, Week 1, Continued SAM99 Reconciliation Completed – All SAM99 Reconciling Items Cleared Reclassify FBC for claims filed to Due To Trust for DVP SCP goes to claims filed If needed, accrue FBC entries created by LCD

36. Year-end Checklist – July, Week 2 All entries at this point under the supervision of Campus Budget Office Clear any remaining FIRMS errors Final review of program/ledger balances Clear any remaining deficits Final preliminary Data Quality Review Reserve entries to CSU Fund 485 – 304015-304016 and 304018

37. Year-end Checklist – July, Week 2 Close xxCMP Business Unit to prevent further entries Generate Final SAM 99 File Final FIRMS derivation Prepare Manual Reporting Package for Mgt Review

38. Year-end Checklist – July 12 and 13 July 12 - Management Review/Approval July 13 – FIRMS submission to CO’s SFSR group 24 hour review may still be in effect July 16 – FIRMS Submission completed, pre and post close Transmit Final SAM99 file to SCO

39. Year-end Checklist – July and August Submit all required SCO reports per instructions in year-end legal manual Reports 14, 18 and 19 GAAP Adjustments to SCO Auxiliary Organizations FIRMS Final dates available at CSU Year-end Training

40. Discussion and Close Other campus perspectives Questions? Contact Info: John Hayes, Sonoma john.hayes@sonoma.edu Lorlie Leetham, SLO lleetham@calpoly.edu