Z3 MEMO DATE: TO: FROM: RE: March 3, this year s. University. Financial Services. will be able to. Faculty of Medicine

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1 Faculty of Medicine Dean s Office Health Sciences Mall Vancouver, BC Canada V6T 1Z3 MEMO Phone Fax DATE: TO: FROM: RE: March 3, 2015 Administrators Evie Mandel Senior Director, Finance 2015 Faculty of Medicine Year End Procedures The University s fiscal year end of March 31, 2015 is fast approaching and similar to prior years, we ask for your assistance to ensure that all charges relating to the current fiscal year 2014/15 are includedd in this year s financial results. Departments and units are responsible to ensuree all of their transactions reach Cluster Financial Services Teams in time for entry into the financial system so that the financial reports and statements of the University are complete. The cluster finance teams will provide support and guidance for all the year to end processes. Please consult them early especially if you anticipate large volume towards the deadlines, or to understand what transactions need to be recorded for expenses or revenue relating events just before year end. Timelines are extremely tight, as the Provincial Government deadline for year end financial statements is April 16, Adherence to the year end cut off dates is critical to provide adequate time for the preparation of year end financial statements and audit working papers. To help you with your year end processing by the Faculty of Medicine deadline for departments to submit requisitions and JVs to their Cluster Financial Servicess Teams on Thursday, April 2, Central Finance will be running Over/Underr Reports on a regular basis. With your assistance, the University will be able to meet its provincial reporting requirements Faculty of Medicine Year End Proceduress Page 1 of 10

2 Contents Over/Under Reports... 2 Year End Schedule... 2 First March Ledgers... 3 Final March Ledgers... 4 Accruals... 5 Prepaid Expenses... 5 Deferred Revenues... 6 Internal Sales Reporting... 6 Audit Programs... 7 Accounts Payable Audit Program... 8 Accounts Receivable Audit Program... 9 Over/Under Reports Reports are located on the Management Systems Portal in the Financial Applications Home section. Have your Systems Administrator contact peoplesoft.support@ubc.ca if you require assistance in connecting to this. The reports will be run monthly to February, Weekly reports will be run during March, The run date will be in the heading of the report. Daily reports will be run starting April 1, Year End Schedule These are the deadlines for the submission or processing of transactions for all Faculty of Medicine financial activities. Take note of the following: Process, or submit for processing, the majority of transactions in advance of the final dates. Please do not leave it to the last minute. Clearly write 14/15 on the top of each document to be entered into the 2014/15 fiscal year. All financial transactions must be directed to the appropriate Cluster Financial Services Team Faculty of Medicine Year End Procedures Page 2 of 10

3 First March Ledgers Deadline Action Reference Responsible First March Ledgers March 23 (Mon) 10:00am March 23 (Mon) 10:00am March 25 (Wed) March 30 (Mon) Noon March 30 (Mon) Noon March 30 (Mon) 8:00pm March 31 (Tue) April 2 (Thu) Noon All source documents for any QREQ TAX Smart Forms must be received by Payment & Procurement Services (PPS) by 10am. All Requisitions for Payment, Travel Requisitions, and Supplies Received Reports for goods and services received on or before March 23 from departments who require wires or drafts as forms of payment, must be received by Payment & Procurement Services (PPS) by 10am (FINAL DEADLINE for wires and drafts or otherwise must be accrued if material) First deadline for Departments to submit Requisitions, Travel Requisitions, JVs to Clusters for keying. (Note: Requisitions requiring T4A or T4ANR tax forms or wire and draft payments must be received by cluster at least one week earlier). Excel and Interface files for journal loading to be sent to Frances Tadman. March hourly timesheets to Payroll. Web cash receipt data entry. First deadline for department online keying of Journal Vouchers, Travel Requisitions, Requisitions for Payment and non Web Cash Receipts. First March Ledgers distributed Faculty of Medicine, Director and Senior Director, Finance Persons Departmental staff (Research Coordinators, Administrators, Program Coordinators, etc.) All staff who submit timesheets Central Finance 2015 Faculty of Medicine Year End Procedures Page 3 of 10

4 Final March Ledgers Deadline Action Reference Responsible Final March Ledgers March 31 (Tue) 8:00pm April 1 (Wed) April 2 (Thu) April 2 (Thu) 10:00am April 7 (Tue) 10:00am April 8 (Wed) 6:00pm April 9 (Thu) 3:00pm April 10 (Fri) April 10 (Fri) May 20 (Wed) April 15 (Wed) Noon May 27 (Wed) Noon Last day for Web Cash Receipts for 2014/15. All QREQ TAX Smart Forms, Requisitions and Travel Requisitions that generate Tax forms (ie. T4A or T4ANR) or are to be paid via wire or draft, and PO invoices must be received by Payment & Procurement Services. Final deadline for Departments to submit Requisitions, Travel Requisitions, JVs to Clusters for keying. (Note: Requisitions requiring T4A or T4ANR tax forms must be received by cluster at least one week earlier or otherwise be accrued if material). Final deadline for vendor setup requests. Final deadline for Excel and interface files for journal loading to be sent to Frances Tadman. Final deadline for keying JVs charging other departments/faculties (inter department), 2014/15 invoices, Requisitions, and Travel Requisitions. Final deadline for keying JVs and non Web Cash Receipts within the same department/faculty (intra department). ACCRUE/DEFER ANY MATERIAL TRANSACTIONS UNABLE TO POST BY DEADLINES. Complete Accounts Payable Audit Program (to Michelle Lundrigan, PPS). Submit completed Accounts Receivable Audit Program (to Betty Ang, RTA). Submit completed Annual Endowment Review Forms. Final over/under reports distributed. Final March Ledgers distributed. Faculty of Medicine Director and Senior Director, Finance Procedures (Pg 7) Procedures (Pages 8 9) Development. Package to be ed April 20 th Persons Departmental staff (Research Coordinators, Administrators, Program Coordinators, etc.) recipients Central Finance Central Finance 2015 Faculty of Medicine Year End Procedures Page 4 of 10

5 Accruals In most cases, your financial transactions will be recorded in your accounts simply as a result of meeting the processing deadlines. However, if deadlines are missed, material transactions must be accrued so that these are included in the 2014/15 financial statements. An accrual is an accounting entry that is required to ensure that revenues and expenses recorded in the period accurately reflect the revenue earned and expenses incurred in that period. This means, for example, that if goods and services have been received before March 31, 2015, the expense related to them must also be recorded, even if the invoice has not yet been paid. Please consult your cluster finance team to ensure your accruals are complete. Note: Expenses can only be accrued where the related goods or services have been received on or before March 31, Expense Accrual Large dollar invoices or expenses (greater than $5,000) that have not been entered into the A/P system which relate to 2014/15 should be copied and sent to your Cluster Financial Services Team for accrual. Write 14/15 for Accrual on the Invoice/Requisition for Payment copy. 2. Revenue Accrual For all deposits (using the Web or manual form) relating to 2014/15 fiscal year and made after March 31, make the deposit like normal but send a copy of the Cash Receipt and related back up to your Cluster Financial Services Team for accrual into the 2014/15 fiscal year. Write 14/15 for Accrual on the documents. All accrual requests and related documents need to be received by your Cluster Financial Services Team for accrual no later than April 2, Thursday, 4:00PM. Late Accruals of Significant Amounts 1. Expense Accrual From April 3 to April 17, if there are large dollar invoices or expenses (greater than $200,000) relating to the 2014/15 fiscal year that have not been accrued before the April 2 cut off date, please photocopy the invoice and send to your Cluster Financial Services Team Lead (Director or Associate Director) for review. They will determine if it should be sent to Michelle Lundrigan in PPS Financial Systems for manual accrual. 2. Revenue Accrual From April 3 to April 17, if there are large cash receipts (greater than $200,000) relating to the 2014/15 fiscal year for which the revenue has not been accrued before the April 2 cut off date, photocopy the cash receipt and deposit slip and send to your Cluster Financial Services Team Lead (Director or Associate Director) for review. They will determine if it should be sent to Jean Forward in Revenue Accounting for manual accrual. Prepaid Expenses Prepaid Expense is an accounting term signifying money paid for goods or services before the goods have been delivered or before the services have been completely rendered. A prepaid expense is considered an asset on the balance sheet. As the goods are delivered or the services are rendered, they are recorded on the income statement. An example of a prepaid expense is the unexpired portion of a 3 year maintenance agreement which covers the period from July 1, 2013 to June 30, The prepaid 2015 Faculty of Medicine Year End Procedures Page 5 of 10

6 expense amount will be the equivalent of the maintenance cost from April 1, 2015 to June 30, 2016, the unexpired period. Please review your multi year service contracts and your advance payment contracts for goods (if any) to determine if prepaid expenses need to be recognized. Where the prepaid expense is material (greater than $5,000), use account code when recognizing the prepayment. Please send all prepayment journals and related documents to your Cluster Financial Services Team for recognition no later than April 2, Thursday, 4:00PM. Deferred Revenues Deferred revenue is an accounting term signifying money received for goods or services in advance of the goods being delivered or before the services being completely rendered. A deferred revenue is considered a liability on the balance sheet. As the goods are delivered or the services are rendered, they are recorded on the income statement as revenue. An example of a deferred revenue is the portion of tuition received for a course or semester that will be taking place in the future. Please review your cash receipts to identify any potential advanced payments for goods to be delivered or services to be rendered in the future. Where the deferred revenue is material (greater than $5,000), use account codes or when recognizing the advanced cash receipt. Please send all deferred revenue journals and related documents to your Cluster Financial Services Team for recognition no later than April 2, Thursday, 4:00PM. Internal Sales Reporting Internal departmental services are created when one University department sells goods or services to another. In order to correctly recognize revenues and expenses in the University's consolidated financial statements, internal revenues must be eliminated against internal expenses upon consolidation. In the coming months prior to year end, please ensure all internal sales are coded correctly and take the time to review what your department has coded as internal in the financial management system. If journals need to be changed, make sure that all adjustments for internal transactions are made prior to year end. Thank you for your assistance in ensuring a timely and accurate close to our fiscal year end. If you have any questions or concerns on the year end timelines or procedures, please contact your Cluster Financial Services Team Faculty of Medicine Year End Procedures Page 6 of 10

7 Audit Programs KPMG will be undertaking an audit of the financial statements of the University for the financial year ended March 31, KPMG has requested certain information for the purposes of expressing an opinion on our financial statements. In order for Finance to provide the information requested and meet other reporting and audit requirements, the attached Audit Programs are to be completed and returned to PPS by April 10, Friday,. 1. Accounts Payable Audit Program Key Contact: Michelle Lundrigan GL Account Codes: to Accounts Receivable Audit Program Key Contact: Betty Ang GL Account Codes: to NOTE: Your Cluster Financial Services Team will complete the audit programs, but may need to contact your department for information required for the audit programs Faculty of Medicine Year End Procedures Page 7 of 10

8 2015 YEAR END Accounts Payable Audit Program Please complete and submit this form irrespective of the volume or value of transactions. Cluster Number Associate Director/Director of Finance Name Phone Signature DeptID Ranges DeptID Range Names Procedure Response Done By / Date 1. Pleasee answer YES or NO to the following questions. If uncertain, please confirm the answer with the department head. a) Were all invoices for fiscal year 2014/15 submitted to the cluster finance team and processed by 6:00pm April 8, 2015? b) Were any invoices accrued in the cluster as at March 31, 2015? c) If invoices i were accrued, were they checked to ensure the invoice related to the fiscal 2014/15 period? d) Does the cluster record any entries in the GL accounts Deferred Revenue, or Deferred Revenue yearend? 2. For any Accounts Payable balance in a Project/Grant (PG) greater than $99,999, provide the following: a) A listing l and/or reconciliation of Accounts Payable of the PG at March 31, 2015 b) Copies of invoices or other supporting documentation for individual amounts including journal entries over $99,999. c) If the department records entries into the Deferred Revenue or Deferred Revenue year end account, a brief explanation of what is deferredd and why it is deferred. Please a scan of this form and supporting backup by on April 10, 2015 to: Michelle Lundrigan Payment and Procurement Services Financial Systems Tel: michelle.lundrigan@ubc.ca 2015 Faculty of Medicine Year End Proceduress Page 8 of 10

9 2015 YEAR END Accounts Receivable Audit Program Please complete and submit this form irrespective of the volume or value of transactions if you reported departmental AR balances (FMS GL Codes ) Cluster Number Associate Director/Director of Finance Name Phone Signature DeptID Ranges DeptID Range Names Steps 1, 2, 3, and 4 are for Accounts Receivable (AR) (FMS GL Codes ) that represents amounts that have been invoiced and included i in the individual departmental ARR balances at March 31, Step 5 relates to Internall Accounts Receivable billing where the client is a UBC department. Steps 6 and 7 are process and variance analysis for the AR balances. Procedure Response Done By / Date 1. Confirm that all cash receipts related to fiscal year 2014/15 were either deposited at the bank by March 31 at 8pm via the Web Cash Receipt or were setup as a receivable in the March accounting period. 2. Forward to Finance a detailed listing of receivables, which supports the March 31 receivable balance ( accounts ) for each PG. 3. On the detailed AR list, note the number of days that the receivable has been outstanding. If the item has been overdue by more than 90 days, pleasee do the following: a) Mark an asterisk next to the item where the chance of receiving payment is low. b) If items i have a low possibility of recoverability, indicate the reason and detail the steps that have been taken to attempt collection. c) Indicate if you believe the account should be written off as uncollectible. 4. Provide copies of invoice or other supporting documentation to Finance where Program/Grant (PG) accounts have individual balances that exceed $99,999 as at March 31, (Continued on next page) 2015 Faculty of Medicine Year End Proceduress Page 9 of 10

10 2015 YEAR END Accounts Receivable Audit Program Please complete and submit this form irrespective of the volume or value of transactions if you reported departmental AR balances (FMS GL Codes ) Cluster Number Associate Director/Director of Finance Name Phone Signature DeptID Ranges DeptID Range Names Steps 1, 2, 3, and 4 are for Accounts Receivable (AR) (FMS GL Codes ) that represents amounts that have been invoiced and included i in the individual departmental ARR balances at March 31, Step 5 relates to Internall Accounts Receivable billing where the client is a UBC department. Steps 6 and 7 are process and variance analysis for the AR balances. Procedure Response Done By / Date 5. In the detailed listing of receivables provided to Finance in item #2, identify i which receivable relates to an internal AR billing and the account code credited when the internal AR billing is recognized. 6. Provide a description of the process used to determine the amounts receivable, including how the amounts were identified and how you ensured that the balances at March 31, 2015 are not under or over stated. 7. Prepare variance analysis by comparing FY2014 and FY2015 AR balances, and provide reasons for changes greater than $99,999. Please a scan of this form and supporting backup by on April 10, 2015 to: Betty Ang Research & Trust Accounting Tel: betty.ang@ubc.ca 2015 Faculty of Medicine Year End Proceduress Page 10 of 10