YEAR END CLOSE - JUST ANOTHER MONTH!

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YEAR END CLOSE -JUST ANOTHER MONTH!

• FOA Conference
• NAPA, April 15-17, 2007

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AGENDA

• Background
• Why, What, Where?
• Issues that this wont resolve
• Preparing and Planning
• Campus perspectives
• Year-End Checklist and Timeline
• Includes RMP issues and guidelines
• Discussion and Q A

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Background Why Is This Needed?

• Frequently asked questions
• Why isnt 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

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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!

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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

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Background What has Changed?

• SCO Deadlines
• CO Deadlines
• Focus on timeliness and importance of GAAP
  Reports
• Revenue Management Program
• CSU Interim Operating Guidelines

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Background Issues We Cant 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

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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?

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Kicking It Off Prepare Early

• Key Deadlines
• Work backwards from these dates when planning
• June 15 - SCO Cut-off for Claims\PFAs\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

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Campus Perspectives Cal Poly

• History
• June 30, 2002 July 29th
• June 30, 2003 July 28th
• June 30, 2004 July 20th
• June 30, 2005 July 14th
• June 30, 2006 July 7th

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Campus Perspectives Cal Poly

• The First Year
• New CSU deadline July 15th
• Cant 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

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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

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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

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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

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Campus Perspectives Cal Poly

• Backing up the Calendar
• CSU Acceptance by July 15th
• 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 15th
• Legal books can realistically only be open 7
  working days after June 30th
• Most AP documents received after this
• Positive Payroll not available in PIMS until July
  7

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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 5th may be
  accrued in legal based on materiality
• Any invoices received by Aug 31 will be accrued
  in GAAP based on materiality

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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

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Campus Perspectives Sonoma

• History
• June 30, 2002 July 30th
• June 30, 2003 July 28th
• June 30, 2004 July 28th
• June 30, 2005 July 15th
• June 30, 2006 July 12th
• 06/07 will be our third year to close early

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Campus Perspectives Sonoma

• The First Year Creating New Standards
• New CSU deadline July 15th
• 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

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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

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Campus Perspectives Sonoma

• Summary of Key Internal deadlines
• Load SAM99 accrual reversal file as soon as
  available
• Set up Closing Trees and CFVs 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 POs as possible
• ALL subsystems must hard close on June 29
• Work with subsystem teams closely during crunch
  time
• After June 29, its all about the GL!
• Run GL015 in final mode on July 1 or during the
  evening of June 30

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Campus Perspectives Sonoma

• Backing up the Calendar for 06/07
• CSU Acceptance by July 15th
• 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
  JEs 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

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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

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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

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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

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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

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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
• Chancellors Office pull back of 5,000 in
  reverting General Fund year (in 2007, pull back
  2003)

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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 15th 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

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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

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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

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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

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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

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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.

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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

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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

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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

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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

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Year-end Checklist July 12 and 13

• July 12 - Management Review/Approval
• July 13 FIRMS submission to COs 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

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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

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Discussion and Close

• Other campus perspectives
• Questions?
• Contact Info
• John Hayes, Sonoma
• john.hayes_at_sonoma.edu
• Lorlie Leetham, SLO
• lleetham_at_calpoly.edu