All About Discovery New Mexico State University nmsu

All About Discovery! ™ New Mexico State University nmsu. edu Fiscal Year-End Review Session

Presenter Contact Information: Ross Justus Associate Controller Email: rjustus@nmsu. edu Phone: 575 -646 -7663

Agenda • • • Year-end Schedule & Important Dates Dual Year Processing Review of Indexes & Accounts Property Accounting – Purchase of Equipment Year-end Accruals PCard Deadlines JV Processing SPA Year-end Questions

Presenter Contact Information: Damian Lopez Audit Liaison Email: auditliaison@nmsu. edu Phone: 575 -646 -5281

Key Year-End Dates • June 20 - DPRs, JVs, Reimbursement Vouchers and IDVs to be included in FY 18 are due to Fiscal Monitor • July 2 - 1 st Close • July 9 - Deadline for JVs from Business Managers and Research Centers

Key Year-End Dates (con’t) • July 11 - 2 nd Close • July 18 - 3 rd Close • July 20 - Final Close – Reports available the following day

Transaction Date vs. Activity Date • Transaction Date – Banner posts transactions to fiscal years and periods based on the transaction date. • Activity Date – The date a transaction is actually entered into Banner.

Dual Year Processing • You may begin processing FY 19 purchase requisitions on June 1, 2018. • Creating a FY 19 requisition during the Dual Year period: -Transaction Date must be >June 30, 2018 -Delivery Date must be > Transaction date

Dual Year Processing (con’t) > June 30, 2018 27 -JUN-2018 09 -JUL-2018 23 -JUL-2018 Banner Finance Procurement manual online at http: //training. nmsu. edu

Reviewing Funds • General Ledger Review – Review Assets, Liabilities, and Fund Balance • Look for reverse balances. • Compare for no change from prior year.

Reviewing Indexes • Unrestricted Funds – I&G and Non I&G Funds • Compare current year activity to prior year activity. • Question any expense with a credit balance. • Verify that there is not any YTD expense activity in account code 799800. • Compare budget to actual expenses.

Reviewing Indexes (con’t) • Unrestricted Funds, cont. – I&G Funds • There should not be any YTD activity in the following account codes: – Revenue accounts (5 XXXXX), – Resale accounts (77 XXXX), and – Applied charges accounts, 795 xxx (except in specific circumstances).

Reviewing Indexes (con’t) – Non I&G Funds • Question any revenue that has a debit balance. • Verify that any resale account codes, 77 xxxx are appropriate on that index.

Reviewing Indexes (con’t) • Zero all default P-card account codes – 738011 • 760905 – NMGRT Goods >$10. 00 • Federally excluded account codes • Refer to BDMS for back-up documentation for journal vouchers • For BDMS access http: //rmr. nmsu. edu/bdmsaccess/

Presenter Contact Information: Joshua Munoz Capital Finance Manager Email: jlmunoz@nmsu. edu Phone: 575 -646 -3133

Reminders – Inventory Change Request Excerpt of the Inventory Change Request (ICR) form:

Best Practices – Purchase Orders • BANNER will review a specific set of criteria (account and commodity codes) to identify capital assets apart from tagged assets. • Use document text or item text to communicate additional information to Property Accounting like – Trade-ins, discounts, etc. – Components (i. e. line 3 is part of line 1)

Year-end Considerations • Items received on or before 6/30/2018 will be capitalized, tagged, depreciated, or expensed in FY 18. • Request and submit invoices for any tagged items. • Construction project accruals • Work done on construction projects but not invoiced will need to be accrued.

Year-end Considerations • Cut-off for year end – HED Library GOBs – FY 18 Draw Request Deadline is July 10, 2018 • Please avoid using P-card in June – Backup documentation for any outstanding expenses needs to be submitted to AFR by July 5, 2018. – Failure to meet deadlines might result in HED not reimbursing NMSU for purchases.

Presenter Contact Information: Carolina Munoz Accounting and Financial Reporting Manager Email: cmolina@nmsu. edu Phone: 575 -646 -3144

Accounts Payable Dates • Notable Dates: – July 9 thru July 18 - Remaining FY 18 PO invoices will not be paid – July 18 - FY 18 encumbrances will be rolled forward in Banner • July 20 – AP will begin processing FY 18 invoices

Accounts Payable Dates (con’t) • Notable Dates: – NOTE: All DPRs & RV’s received in A/P after June 30, 2018 will be posted in FY 19 • Must be to Fiscal Monitor by 6/20/18 to be included in FY 18

Accruals • Our financial statements must include all revenue earned and expenses incurred in FY 18, even if the transactions have not been completed. The year end accruals adjust the revenues and expenses that are in Banner to amounts required for full accrual financial reporting. • The effect of the accrual is reversed in FY 19.

Accruals (con’t) Three-way match The terms of the PO require that the invoice be matched to the PO and that the goods/services have been received in Banner before the invoice can be paid. Date Ordered 5/30/2018 Received in Banner 6/29/2018 7/1/2018 Accrued with Three way match? YES NO – A/P will automatically accrue if it was received correctly in Banner by 6/29/18 – VERY important to receive items in Banner that were actually received by 6/29/18

Accruals (con’t) Two-way match – Accrual account 221005 – JE’s reversed centrally DO NOT REVERSE • Departmental • Construction – Plant funds – 754 xxx – 782 -783 xxx • Subcontract (reviewed by SPA) – 792 xxx

Accruals (con’t) • Two Way Accrual Process: – AFR runs a COGNOS report that lists open two-way match POs. – Each department will receive a list of their open two-way match POs for review. – The review threshold for expenses incurred is $10 K or greater. Date Service Procured 5/30/2018 Date Services Complete 6/29/2018 7/1/2018 Partially >$10 K Accrued with Two way match? YES NO Partially

Accruals (con’t) • AFR will require the departments to provide written documentation from vendor with bill amount for services provided and not yet paid prior to June 29, 2018. • Types of Documentation* – Invoice from vendor – Email from vendor • AFR accrues using account code 221005. Accruals reversed in July by AFR. *Exceptions to this will be addressed on a case by case basis.

Audit Documentation The following information is required for each amount accrued

Purchasing • Clean up Incomplete Purchase Requisitions – Review Banner FOADOCU (Document by User). – Refer to Banner Finance Procurement Manual for process to delete a requisition. – https: //training. nmsu. edu/CLPD/documents/b anner-finance-procurement-manual. pdf

PCard FY 18 Deadlines • All Pcard purchases posted at Wells Fargo through 6/21/18 will be posted in FY 18. – Business managers will be contacted to assist with outstanding PCard balances in their areas.

Presenter Contact Information: Catherine Antony Financial Information Processing Email: catrin@nmsu. edu Phone: 575 -646 -5264

FIP JV Processing • JEC/JED, B 4 C/B 4 D – These must be routed through Banner queues for approval so consider the timing when close to month end. • Other Spreadsheets – Consider FIP and Fiscal Monitor deadlines – Hard copies requiring fiscal monitor signatures – Physical copy & electronic copy sent to fiscal monitors who forward them to FIP after review • Manual entry – Consider FIP and Fiscal Monitor deadlines

FIP JV Processing • Errors will cause delays in processing. • Tips to avoid common errors: – Make sure index is valid (i. e. , not termed, etc. ). – Make sure username is authorized to post. – Double-check account numbers. • Make sure account hasn’t been termed. – Use the correct spreadsheet (JE 16 vs. JED, etc). – Make sure transaction date is in the current open period.

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