COLUMBIA UNIVERSITY IN THE CITY OF NEW YORK

Transcription

1 COLUMBIA UNIVERSITY IN THE CITY OF NEW YORK F I N A N C E D I V I S I O N TO: FROM: Senior Administrators Anne Sullivan, Executive Vice President for Finance Joseph Harney, Vice President for Procurement Services DATE: April 17, 2012 SUBJECT: Fiscal Year 2012Year-End Close (June 30, 2012) This memo outlines three major processes that will occur, and in some cases overlap, in the next several months: FY2012 fiscal year close The cutover process from legacy systems to ARC Interim transaction procedures for emergency needs during the period after the closing down of legacy systems and the Go Live date for ARC. This information is also available on the Finance Division s closing calendar and all of this information may be found on the Finance website at It is essential that we meet the deadlines outlined in this memo, not only so that we can issue the University s year-end financial statements within the mandated time frame, but also to allow sufficient time for conversion, cutover and final testing activities to meet the Go Live date for ARC scheduled for Monday, July 9, Please remember that many schools and departments set earlier internal deadlines for fiscal year-end close activities in order to meet the Finance Division deadlines. Please be cognizant of the deadlines when planning and approving vacation requests. CUMC departments should also refer to the quarterly closing calendar which will be sent by Dori Lorsch via on April 18, Unless otherwise noted below, CUMC departments should contact Dori Lorsch (djl2144@columbia.edu)regarding questions related to the CUMC closing process. If you have any questions regarding year-end closing topics, please contact Patrice Elliott ( , pe2132@columbia.edu) or Stephen Paul ( , Stephen.Paul@columbia.edu) Page 1 of 19

2 SUMMARY OF KEY SYSTEM DATES: Users of financial systems should read this memorandum in its entirety, but we have summarized here a few key dates to clarify final entries in our systems and any related blackout periods as we cutover to new systems. If you have any questions, contact names for each area are provided within the memorandum. FAS Closing and Cutover: Consistent with prior years, the last journal entries for fiscal year 2012 will be August 3, School senior business officers may impose earlier dates for their schools, so please coordinate within your school or department. Blackout period for new fiscal year entries: July 1-July 9, New fiscal year entries can be processed in ARC beginning July 9, Please hold all journal entries for the new fiscal year until ARC opens on July 9, APCAR Closing and Cutover All invoices, check requests, wire requests, travel and business expense reimbursements should be approved in AP/CAR and have all supporting documentation attached by June 25, Blackout period for vouchers: June 25, 2012 at 5 pm through July 8, Accounts Payable processing in ARC will be available on July 9, Between June 25, 2012 and July 8, 2012, please hold all requests for AP payments until ARC opens on July 9, Requests for emergency payments (with appropriate approvals) should go through the service desk see further instructions in this memorandum. Payroll Closing and Cutover Payroll closing dates for fiscal 2012 are relatively consistent with prior years; please see detailed instructions within this memorandum for specific payroll periods. All payroll suspense and other payroll transactions for fiscal year 2012 must be approved in PAC by Friday, July Note, the PAC/Labor Accounting system will not be available from July 10, 2012 to July 15, The system will reopen on July 16, All transactions that are in process should be approved by July 9, 2012 or they will need to be re-entered on or after July 16, PAC will process new fiscal year (FY13) entries for Hires, Add Comps, and Salary Distribution now through July 9, It will be closed July 10 through July 15, 2012 for all transactions. PAC will re-open to process these transactions for the new fiscal year on July 16, 2012 For Cost Transfers, PAC will process cost transfers for the old fiscal year (FY12) from now through July 9, and then from July 16, 2012 through July 27, PAC will not be open to process Cost Transfers from July 10 through July 15, Cost Transfers for the new fiscal year (FY13) can be processed in PAC on/after August 1, Page 2 of 19

3 SPECIFIC GUIDANCE: 1. REPORTING PERIOD CUT-OFF DATES Please use your most recent FAS statements or other reporting tools, such as DARTS, as a guide to identify all necessary adjustments. A. June 30, 2012 month end close: All adjustments (i.e., accrual entries, fund balance transfers, other journal entries) to FAS should be processed, via FFE, as early as possible, but no later than 5:00 p.m. Tuesday July 3, The final SIS to FAS feed will run on Monday, July 2, Administrative fees and ICR mechanicals will run on Thursday, July 5, Paper FAS statements will be distributed on or about Monday, July 9, B. June 31, 2012 year-end close (also known as Period 13): The June 31 st period provides the opportunity for users to make final adjustment entries (i.e., accruals, fund balance transfers) and clear fund balance overdrafts and payroll suspense not processed during the fiscal year. Schools and departments are strongly encouraged to enter period 13 adjustment entries and clear payroll suspense and fund balance overdrafts by Tuesday, July 24, 2012, as senior management will conduct its review of the financial results based on the activity recorded as of that date. Schools and departments must make all final entries by 2:00pm on Friday, August 3, However, certain schools and departments may set earlier dates (e.g. CUMC departments will be shut off Friday, July 20, 2012) please check with the appropriate person in your unit. Administrative fees and ICR mechanicals will run on Friday, August 3, During the adjustment period, the Financial Front Ends (FFE) will be available for old fiscal year ( OFY ). New fiscal year entries will be made in ARC beginning Monday, July 9, Final June 31 st figures will be available in DARTS by Friday, August 10, 2012 to schools and departments. Paper FAS statements will be distributed on or about Monday, August 13, Contacts: Patrice Elliott ( , pe2132@columbia.edu); Eugene Kornikh ( , yk2392@columbia.edu) 2. INTERNAL CHARGES AND TRANSFERS A. Charges by administrative units Certain administrative units have agreed to earlier processing dates for their monthly or quarterly charges. Central charges and transfers will be made by the following dates: Endowment income for June2012 will be paid by Friday, June 8, Preliminary debt service entries will be recorded by Friday, June 22, 2012 for the June 30, 2012 close; final entries will be posted by Friday, July 20, 2012 for the June 31, 2012 close. Page 3 of 19

4 Charges for the following divisions will be processed by Tuesday, July 3, 2012: o Human Resources o CUIT o Administrative Services (Print Services, Central/Student Mail, Transportation) o Registration and Financial Services o Housing Services o Dining Services o University Event Management (Columbia Catering, UEM Conference Services, Faculty House) o Morningside Health Services Charges for Animal Care will be processed by Thursday, July 12, Charges for Facilities will be processed by Tuesday, July 3, Contacts: Endowment income Jackie Erickson ( , je2015@columbia.edu) Debt Service Frank Lombardo ( , fj11@columbia.edu) Human Resources Robert Reiter ( , rr52@columbia.edu) CUIT/Telecomand Desktop Support Patrick Thompson ( , pat@columbia.edu) Administrative Services Stephanie Armstrong ( , sa2072@columbia.edu); Registration and Financial Services Louise Reist ( ,lr2457@columbia.edu); Housing Services Stephanie Armstrong ( , sa2072@columbia.edu) Dining Services Yesenia Acevedo ( , ya33@columbia.edu); Morningside Health Services Marc Anderson Haynes ( , mh2659@columbia.edu); University Event Management Sean Kim ( , sk2386@columbia.edu); Animal Care Andy Caswell ( , awc2@columbia.edu) Facilities James Wang ( , jw2547@columbia.edu) B. Other known charges and transfers Other known interdepartmental transfers or IDIs should be made in FFE no later than Tuesday, July 3, 2012.These can be based on estimates or budget, with true-up at year-end. These transfers must include any known fund balance transfer between Budget Units that were included in the Current Estimate Submission. If you are expecting transfers to or from OMB, please let OMB know by Friday, July 13, 2012, even if you do not know the exact amount of the transfer. Manual transfers and IDIs which affect Sponsored Project accounts June 30, 2012month end Paper IDIs which affect sponsored project accounts should be received by Sponsored Projects Finance no later than Wednesday, June 13, June 31, 2012year end Paper IDIs which affect sponsored project accounts should be received by Sponsored Projects Finance no later than Monday, July 9, Page 4 of 19

5 Contacts: Morningside: Tamara Hamdan ( , CUMC: Jennifer Crockett ( , Other manual transfers and IDIs The IDI module in FFE will close on Tuesday, July 3, Paper IDIs will be processed on an exception basis and must include DAF approval for the department being charged. All paper IDI requests should be forwarded to Eugene Kornikh ( , in Financial Reporting and Operations no later than Tuesday, July 17, REQUISITIONS, PURCHASE ORDERS AND CHANGE ORDERS A. Requisitions, Purchase Orders, Change Orders FFE regular purchase requisitions All FFE regular purchasing requisitions to be encumbered in the old fiscal year ( OFY, i.e. FY12) must be submitted via FFE to Purchasing by 5:00 p.m. on Friday, June 8, 2012, meeting the following requirements: Obtain final DAF approval (not just released in FFE) Obtain any required Prior Approval All required (supporting) documents uploaded, indexed through the Purchasing EDM system After June 8, 2012, departments will no longer have OFY or NFY access to the purchasing requisition module in FFE and will not be able to initiate or approve requisitions in FFE for submission to Purchasing. The ability to enter new requisitions for the new fiscal year ( NFY, i.e. FY13) will be available in ARC upon Go Live, scheduled for Monday, July 9, Vendor Profile Create/Modify Deadlines Requests to create or modify a vendor profile in order to create a purchase requisition in FFE should be submitted, via the FINSYS Vendor Questionnaire or the Vendor Modification Form, to Vendor Management by Monday, June 4, 2012 at 5:00pm. Requests received after this date may not allow sufficient time for Vendor Management to follow up with the vendors and complete the validation steps necessary to meet the June 8, 2012 deadline outlined above. Change Orders All change orders that affect the purchase order total value, or terms and conditions such as contract end date, must be submitted via FINSYS to Purchasing by 5:00 p.m. on Friday, June 8, 2012,meeting the following requirements: Obtain final DAF approval All required (supporting) documents uploaded, indexed through Purchasing EDM system Departments will have access to EZ-POs and Financial Change Orders for an additional two weeks following the June 8, 2012 deadline for requisitions (see below). Page 5 of 19

6 FFE EZ-PO s EZ-PO s can be entered and approved via FFE on or before Friday, June 22, 2012 at 5:00 p.m. It is important to note that all products and/or services expensed for OFY must be received on or before June 30, If this is not the case, the transaction must be considered NFY. Financial Change Orders Financial Changes Orders, i.e. those change orders that change distribution on a purchase order or add encumbered value within the total P.O. value, must be entered and have DAF approval in FINSYS on or before Friday, June 22, 2012 at 5:00 p.m. PSS PSS will remain available for purchase and delivery during the cutover period. Please note, there may be short maintenance window when the application is unavailable to facilitate cutover to ARC. Staples Staples will be unavailable between Wednesday, June 27, 2012 and Sunday, July 1, 2012 to facilitate cutover to ARC. Emergency Procedures for Purchase Orders During Interim Period The interim period between legacy systems and ARC will be from Monday, June 11, 2012 until Monday, July 9, Departments are advised to prepare and plan for this period, communicating with vendors as appropriate. There will be emergency procedures in place for purchase orders that the department and central Finance agree are emergencies, and for which there are no other viable alternatives. Note that this process will be entirely manual and will rely on paper purchase orders manually created and recorded in ARC at Go Live. Requests by departments for emergency purchase orders must be approved by the senior business officer. The department will then send a request to Purchasing at emergencypo@columbia.edu. This request will be reviewed by Purchasing and determined if the request can be addressed through this mechanism. Only absolute emergencies should be requested. If Purchasing determines that the request can be supported, the Purchasing Contract Officer will provide a link to the department business officer to complete a special one-time transaction form. This form will provide a requisition number and must include all information required for the transaction. The form will then be submitted electronically to Purchasing for final review and approval. All required/supporting documents must be provided directly to the Purchasing Contract Officer that is addressing your request. If required/supporting documents are not provided the transaction will not be processed. 4. INVOICES, CHECK REQUESTS, WIRE REQUESTS, TRAVEL ADVANCES/EXPENSE REPORTS A. Clean Up of Vouchers in AP/CAR There are numerous vouchers in AP/CAR with Accepted Voucher Numbers (AVNs) that are over 3 months old. Most commonly, these are vouchers that have been placed On Hold by Audit & Review but not resolved by the department. Please direct all staff who process or approve vouchers in AP/CAR to check their Correction Queues to determine if any vouchers Page 6 of 19

7 remain in the queue, and to resolve and clear any On Hold items. Please note that the senior business officer for each school/department has been provided a report for any vouchers in AP/CAR that require resolution, and will be in contact with processors and approvers. Any of these aging vouchers (i.e. more than 3 months old) that are On Hold and are not resolved and cleared from the Correction Queue by June 8, 2012 will be rejected by Accounts Payable, reversing the posting to the department s account in FAS. B. AP/CAR processing Invoices, Check Requests, Wire Requests, Travel/Business Expense Reports (TBERs) All invoices, check requests, wire requests, travel, and business expense reimbursements should be approved by the DAF in AP/CAR, and receive an Accepted Voucher Number (AVN), and have all required supporting documentation scanned into the Electronic Document Management (EDM) system by Monday, June 25, 2012 at 5:00pm. Vendor Profile Create/Modify Deadlines Requests to create or modify a vendor profile in order to process an invoice, check/wire request, or TBER in AP/CAR should be submitted, via the FINSYS Vendor Questionnaire or the Vendor Modification Form, to Vendor Management: By Friday, May 18, 2012 at 5:00 pm for changes to disbursement method (e.g. from check to ACH); By Friday, June 15th, 2012 at 5:00 pm for other Vendor Profile Create / Update request to give VM sufficient time to follow up with vendors and complete necessary validation steps. Requests received after these dates may not be completed in time for departments to meet the June 25 th, 2012 AP/CAR deadline. Change Order Deadline It is important that departments confirm there is a sufficient balance in the open commitment on any purchase orders associated with vouchers in AP/CAR, as the deadline for change orders (that change total PO value or end date) is Friday, June 8, Vouchers entered between June 8, 2012 and June 25, 2012 that require a change order for processing will need to be processed as a NFY transaction in ARC after a change order has been completed and the voucher may need to be accrued by the department. Invoices that are received after AP/CAR has closed but relate to fiscal year 2012 may need to be accrued. Please see REVENUE / EXPENSE ACCRUALS section below for more specific guidance on the accrual process. C. Travel Advance Requests/Reconciliations All outstanding travel advances must be reconciled in AP/CAR, including approval by DAF and with an Accepted Voucher Number (AVN), and with all required supporting documentation scanned and submitted into the EDM system by Monday, June 25, 2012 at 5:00 pm It is strongly recommended that any new travel advance requests be submitted to Accounts Payable by Friday, June 8, Travel advance requests should only be submitted for travel that will be completed by Friday, June 22, 2012, to allow for sufficient time to reconcile the Page 7 of 19

8 advance by the June 25, 2012 deadline. Travel advances that are not cleared by June 25, 2012 will need to be processed as a FY2013 transaction in ARC and may need to be accrued by the department. Please see REVENUE / EXPENSE ACCRUALS section below for more specific guidance on the accrual process. D. ARC Cutover Process During the period of Tuesday, June 26, 2012 to Friday, July 6, 2012, Accounts Payable will be auditing and processing all vouchers with Accepted Voucher Numbers (AVNs) in AP/CAR. All vouchers in AP/CAR will either be approved for payment or rejected as no vouchers will be converted from AP/CAR to ARC. During this period, departments will not have access to AP/CAR and their Correction Queues, so if Accounts Payable needs to contact a processor or approver to resolve a voucher, the AP Audit & Review staff will need to or call the department processor or approver. Please be alert to any communications from AP during this time and work with AP to resolve any requests, so that Accounts Payable can meet the July 6, 2012 deadline. Any vouchers that are unresolved by July 6, 2012 will be rejected in AP/CAR and will have to be resubmitted by the department in ARC, and may need to be accrued by the department. Please see REVENUE / EXPENSE ACCRUALS section below for more specific guidance on the accrual process. E. Emergency Procedures for Payments During Interim Period The interim period after AP/CAR has been closed down (Tuesday, June 26, 2012) and the ARC Go Live (Monday, July 9, 2012) is expected to last 8 business days. Departments are advised to prepare and plan for this period, communicating with vendors/payees as appropriate. During this period, departments are encouraged to use the P-Cards assigned to the department to manage those goods that can be purchased via P-Card, as there will be no interruption in the availability and use of P-Cards during the interim period. There will be emergency procedures in place for payments that the department and central Finance agree are emergencies for which there are no other viable alternatives. Requests by departments for emergency payments must be made by a department Supplemental Approver and submitted to the Service Center (telephone: ) F. Temporary staff processing The Columbia University Temporary Staffing Office invoices for time worked through June 17, 2012 must be approved by Wednesday, June 20, 2012 at 3:00pm. Invoices approved after this date will be recorded in the new fiscal year. To access the TAMS system (Talent Acquisition Management Solution) go to: Temporary staff processing contact: Columbia University Temporary Staffing Office Barbara Catalano ( ,bcatalano@columbia.edu) Page 8 of 19

9 5. PAYROLL PROCESSING Unless otherwise noted, contacts for payroll processing are as follows: Morningside and Lamont Millie Hayes ( , or Gloria Valdez-Moreno ( , Medical Center Lenny Ruiz ( , A. Paperwork submission for new employees to HRPC Morningside and Lamont Semi-monthly employees to HRPC on Monday, June 18, 2012 to be included in the June 29, 2012 payroll. Bi-weekly employees to HRPC on Monday, June 11, 2012 to be included in the payroll period ending June 22, Weekly employees to HRPC on Monday, June 18, 2012 to be included in the payroll period ending June 29, CUMC CUMC semi-monthly employees to CUMC Payroll Office prior to 4:00pm on Monday, June 11, 2012 to be included in the June 29, 2012 payroll. CUMC bi-weekly employees to CUMC Payroll Office prior to 4:00pm on Friday, June 8, 2012 to be included in the payroll period ending June 22, CUMC weekly employees to CUMC Payroll Office prior to 4:00pm on Monday, June 18, 2012 to be included in the payroll period ending June 29, B. FFE time entries FFE time entries must be made by the following dates: Monday, June 11, 2012 for the 6/04/12 6/10/12 weekly payroll. Monday, June 18, 2012 for the 6/11/12 6/17/12 weekly payroll and the 6/04/12 6/17/12 bi-weekly payroll. Monday, June 25, 2012 for the 6/18/12 6/24/12 weekly payroll. Monday July 2, 2012 for the 6/25/11 7/01/11 weekly payroll and the 6/18/12 7/01/12 biweekly payroll (OFY accrual will be recorded on Friday, July 6, 2012). C. June 30, 2012 Month-End Payroll Processing The Labor Accounting (LA) system for June 30th will close at 5:00pm on Monday, July 9, The June 30 month end period will be converted to ARC at the same time as the June 31 Year End period, which allows for these additional days compared to a normal month end. Salary Distribution: Sponsored and non-sponsored Projects All salary distribution transactions must have final approval in PAC by Monday, June 25, 2012, to be applied to the final June payrolls. If no new salary distribution is entered, payroll transactions will default to either the existing funding source(s) or payroll suspense and departments having to complete cost transfers during the June 31 st closing period and set up new salary distribution transactions using the new ARC ChartStrings. Page 9 of 19

10 In addition, please review all salary distributions that are scheduled to roll-over to the new fiscal year. The PAC/LA Retrofit team will be converting these FAS accounts/sub-codes to new combo codes during the scheduled cutover period. Cost Transfers-Non-Sponsored Projects Payroll suspense and other payroll transactions incurred prior to and including May 31, 2012 must have final approval in the PAC Cost Transfer Module by Thursday, June 28, Cost Transfers-Sponsored Projects Salary cost transfers on sponsored projects that are over 90 days old must be sent to Carl Sparano and Kristi Vitale prior to Thursday, June 28, Please be sure to confirm that the combo codes are valid and not frozen or deleted. Please note that requests to transfer salary costs over 90 days old onto sponsored projects accounts will only be approved in unusual or exceptional circumstances (e.g., delay in account create due to late notification by sponsoring agency). Administrative error or no Department Administrator, are not acceptable reasons for approving a salary transfer request. (Contacts: Carl Sparano ( , cs16@columbia.edu) or Kristi Vitale ( , kv2102@columbia.edu). Departmental Add Comp Payments All add-comp payments for the 6/16/12 6/30/12 semi-monthly period, to be included in the June 30, 2012 payroll with final approval, are due by 5:00pm on Friday, June 22, For add-comps that require paper forms please refer to the When to Submit Paper Forms for LA/PAC Transactions located at the following website: D. June 31, 2012 Year-End Payroll Processing The LA system for June 31, 2012 (F/Y/E) for central administration will close on Tuesday, July 31, 2012 at 4:00pm. To accommodate the closing on July 31, 2012, all electronic cost transfers must be completed and have final approval no later than 5:00pm on Friday, July 27, Paper transactions with final approval also must be received by Payroll Accounting by Friday, July 27, 2012 to be manually entered. The PAC system will not be available during cutover from Tuesday, July 10, 2012 to Sunday, July 15, It is planned to be available on Monday, July 16, 2012 to resume processing. Payroll Suspense Each department is responsible for ensuring that their departmental payroll suspense accounts (2XXX and 2XXX ) are cleared of all charges. XXX represents your department number. Payroll transactions incurred during the month of June 2012 must be approved in PAC by Friday, July 27, The PAC system will not be available during cutover from Tuesday, July 10, 2012 to Sunday, July 15, It is planned to be available on Monday, July 16, 2012 to resume processing. Cost Transfers-Non-Sponsored Projects Payroll suspense and other payroll transactions incurred during the month of June 2012 must be approved in PAC by Friday, July 27, The PAC system will not be available during cutover from Tuesday, July 10, 2012 to Sunday, July 15, It is planned to be available on Page 10 of 19

11 Monday, July 16, 2012 to resume processing. Therefore, all cost transfers must be approved by July 9 th, prior to the cutover, or they will be purged from the workflow queue and will need to be re-entered on or after July 16, Cost Transfers-Sponsored Projects Salary cost transfers that are over 90 days old on sponsored projects must be sent to Carl Sparano and Kristi Vitale prior to Thursday, July 26, Please be sure to confirm that combo codes are valid and not frozen or deleted. Please note that requests to transfer salary costs over 90 days old onto sponsored projects accounts will only be approved in unusual or exceptional circumstances (e.g., delay in account create due to late notification by sponsoring agency). Administrative error or no Department Administrator, are not acceptable reasons for approving a salary transfer request. (Contacts: Carl Sparano ( , cs16@columbia.edu) or Kristi Vitale ( , kv2102@columbia.edu). Contact: Millie Hayes ( , mh2493@columbia.edu) E. July 20, 2012 Bi-Weekly PayCheck In order to be processed in the July 20, 2012 Bi-Weekly Pay Check, information will need to be provided by the following dates: Departments complete new hires TBH by Thursday, June 28, 2012 with final approvals by Thursday, July 5, Departments submit paperwork for new employees to HRPC by Thursday, July 5, Departments complete salary distributions by Monday, July 9, F. July 27, 2012 Weekly and July 31, 2012 Semi-Monthly Pay Checks In order to be processed in the July 27, 2012 Weekly Pay Check and the July 31, 2012 Semi- Monthly Pay Check, information will need to be provided by the following dates: Departments complete new hires TBH by Thursday, June 28, 2012 with final approvals by Thursday, July 5, Departments submit paperwork for new employees to HRPC by Monday, July 16, Departments complete salary distributions by Monday, July 9, Departments submit Add Comp payments by Monday, July 9, Page 11 of 19

12 6. REVENUE/EXPENSE ACCRUALS Revenue and expense accruals should be submitted as follows: Morningside and Lamont Submit requests to Maria McElwee ( , or Yelena Weiss ( , no later than 5:00pm on Friday, July 27, Requests can be made via , fax, or inter-office mail. Fax requests should be sent to , attention: Yelena Weiss. CUMC Submit CUMC requests electronically to Ralph Marino and Stacey Tsai Monday, July 2, Please refer to the closing calendar which will be sent by Dori Lorsch via on April 18, 2012 for additional details. Supporting documentation required (all locations) All requests must include a clear explanation of the reason for the accrual, and the full 10 digit FAS account number against which the accrual should be recorded. Unless otherwise requested, all accruals will be reversed during July/August Accrue expenses incurred prior to and including June 30, 2012 but not recorded by June 30, 2012.Requests must be accompanied by evidence indicating that the expense related to FY2012 and was incurred prior to June 30, 2012 (the best documentation is an invoice from the provider of the goods or services, but we will consider requests supported by alternate documentation on a case-by-case basis. This is not required for items expensed as open commitments, therefore do not request an accrual of an expense if a PO has been issued). [Please note that as mentioned in the AP/CAR Processing section 4.C above, AP/CAR is closing earlier than usual in As a result, you may have more invoices that have not been recorded or have been rejected in AP/CAR and therefore need to be accrued as expenses in 2012.Departments that need to submit accruals must plan accordingly and adhere to the accrual deadlines noted above. Once again, do not request an accrual of an expense if a PO has been issued.] Accrue revenue earned prior to and including June 30, 2012 but not recorded by June 30, Requests must be accompanied by a copy of an invoice, or similar documentation (contract, letter, etc.), which indicates that the revenue being accrued was earned on or before June 30, The Controller's Office may request a copy of the check received. Revenue related to private gifts/grants and government grants cannot be accrued. Defer revenue earned or expenses incurred prior to and including June 30, 2012that actually apply to periods after June 30, Requests should be accompanied by supporting documentation and DARTS statements supporting receipt of funds. Page 12 of 19

13 7. CASH RECEIPT PROCESSING Morningside Cash batches must be received and accepted by the tellers by 5:00pm on Friday, June 29, 2012to be recorded in the June 30, 2012 FAS statements. Cash batches received and accepted by the tellers after 5:00pm on Friday, June 29, 2012 will be posted in FY2013. CUMC Cash batches must be received and accepted by the tellers by 5:00pm on Friday, June 29, 2012 to be recorded in the June 30, 2012 FAS statements. Cash batches received and accepted by the tellers after 5:00pm on Friday, June 29, 2012 will be posted in FY OVERDRAFTS AND OTHER ADJUSTMENTS A. Overdrafts - sponsored projects An overdraft in a sponsored project occurs when expenditures exceed the available budget. University policy requires that overdrafts be closely monitored, avoided wherever possible, and cleared when it cannot be substantiated that funding is forthcoming or when the account has been terminated for 9 months or more. Reports detailing overdrafts are provided throughout the year on a monthly basis to Principal Investigators and responsible departments by Sponsored Projects Finance (SPF). During year-end closing, SPF conducts heightened reviews of overdrafts. For all overdrafts, Departments must provide documented sponsor commitment that additional funds are forthcoming or provide an unrestricted funding source to be used to clear the overdraft. Note that any unresolved overdraft on an account that terminated nine months or more prior to June 1, 2012 will be automatically cleared to the responsible School s unrestricted fund balance. Overdrafts less than nine months old will prompt a discussion with the department in the period prior to year-end closing. If documented sponsor commitments are not available by mid-july, the overdraft must be moved to an unrestricted funding source. Contacts: Morningside: Tamara Hamdan ( , th2271@columbia.edu) CUMC: Jennifer Crockett ( , jcrockett@columbia.edu) B. Overdrafts all others Schools and Departments should review overdrafts in FAS accounts at least on a quarterly basis. All schools and departments are expected to clear their overdrafts by Friday, July 13, Consider the following when clearing your overdrafts: Expected internal funding. As we have asked that all interdepartmental transfers are made quarterly, these should be up to date. Expected external funding. Identify and address expected year-end deficits. In order to assist in your review, FFE can be used to create reports detailing all current fund balances ( GL Fund Balance report ) and/or the fund balances in overdraft ( GL Accounts in Fund Balance Overdraft ). Page 13 of 19

14 In summary, Departments are expected to fund overdrafts by year-end. If you expect the account to be fully funded by year-end, please do not make any interim transfers to cover the overdraft. Please contact Nancy Johnson, Vice President, Budget and Financial Planning, if you have any questions. C. Other adjustments Project and Non-project account adjustments for the June 31 st FAS statements, which have been approved by the appropriate business officer, for both academic and administrative units, should be posted via FFE or forwarded to the appropriate division of the Office of the Controller: Project account adjustments must be sent by 5:00pm on Friday, July 6, 2012to your Sponsored Projects Finance Project Manager. The designated contact for your department can be found at: Non-project account adjustments should be sent by 5:00pm on Friday, July 27, 2012 to Eugene Kornikh ( , at 615 W. 131 Street, 3rd floor, Mail code: CUMC departments should note that, as in prior years, input into FAS OFY will shut off on Friday, July 20, 2012 at 5:00pm. Please refer to the quarterly closing calendar which will be sent by Dori Lorsch via on April 18, 2012 or contact Dori Lorsch ( , if you have any questions. 9. GIFTS AND ENDOWMENT A. Gift transmittals Morningside Gift Transmittals for depositing gift income must be sent to the Office of Alumni and Development Gift Systems by noon on Thursday, June 28, Credit cards may be submitted in person or by fax to Gift Systems by 5:00pm on Friday, June 29, CUMC CUMC departments should deliver their Gift Transmittals to Melissa Smith in the Office of Financial Services no later than noon on Tuesday, June 26, 2012, in order to meet the Office of Alumni and Development deadlines. Credit cards may be submitted in person or by fax to Gift Systems by 5:00pm on Friday, June 29, Contacts: Office of Alumni and Development Yvonne Boothe ( , or Julio Pagan ( , CUMC Office of Financial Services Melissa Smith ( , B. Endowment creates Requests to establish new endowments should be submitted to the Office of Endowment Compliance, by Thursday, June 14, Contact: Jackie Erickson ( , Page 14 of 19

15 C. Endowment decaps and recaps Schedules of endowment decaps planned for the FY2012 close are due on Monday, April 16, If you have decaps planned for FY2012 and have not submitted this schedule, please contact Jackie Erickson immediately. All decap packages for true endowments must be submitted to the Office of Endowment Compliance, by Friday, June 1, If necessary, final dollar amounts may be revised and submitted no later than Monday, July 16, We strongly encourage all decap packages for quasi endowments and recap requests be submitted to the Office of Endowment Compliance, by Monday, June 11, 2012, in order to be processed in the system by the June 30, 2012 close. Any remaining decap packages for quasi endowment and recap requests must be submitted no later than Monday, July 16, 2012, to be included in the June 31, 2012 close. Instructions and forms for decaps can be found at: Contact: Jackie Erickson ( , 10. P-CARD All activity on the card with a post date of June 22, 2012 or earlier will be recorded on June 30, 2012, in accordance with the standard monthly closing policy. This activity will appear on your June 30 th FAS statements. On Thursday, July 5, 2012, all activity on the card with a post date between June 23, 2012 and June 30, 2012 will be recorded in June 31 st FAS statements. The June 23, 2012 to June 30, 2012 activity must be approved by 2:00pm on Thursday, July 5, Any transactions that have not been signed off and/or approved by July 5, 2012 will be swept into the FAS default account for the P-Card and will be recorded in the June 31 st FAS statements. If you have questions, please contact the P-Card team at pcard@columbia.edu NOTE: Between July 1, 2012 and July 8, 2012, P-Card transactions will be held by Bank of America and fed into ARC on July 9, 2012 and departments will be able go into ARC to reconcile and approve P-Card transactions starting on July 10, MANAGEMENT OF OPEN COMMITMENTS As part of fiscal year-end close, as well as the cutover to ARC, there are several key activities that departments must pay close attention to and actively manage to meet accounting requirements, to ensure the reliability of their financial information with regard to encumbrances, and to support timely processing of PO vouchers in ARC. A. Management of Open Commitments It is important to liquidate dormant open commitments (encumbrances) if: Page 15 of 19

16 Invoice for commitment was paid in full, but commitment was not liquidated Order was not fully received or services were not provided, and are not expected to be completed in the future Open commitments should be cancelled through cancellation of entire order if: No materials, services were provided AND No payments have been or will be made for any items or services To review open commitments in your department, access the Open Commitments Report module in FFE. Please note that the senior business officer for each department has also received an open commitments report from Purchasing. The senior business officer has been directed to identify and affirm those open commitments that should be converted into ARC. Only those affirmed commitments will be converted. All other open commitments will be liquidated by Purchasing. Contact your senior business officer in your department to affirm any open commitments to be converted into ARC, including EZ-POs. Please refer to the Cutover Process section below to understand how the open commitments that are brought forward into ARC will be reflected in ARC. Page 16 of 19

17 B. Management of Open Commitments for Contract Purchase Orders While some open commitments need to be liquidated, other open commitments appropriately need to be kept open and will need to be brought forward into the new ARC system and receive the proper accounting. Contract Purchase Orders (CPOs) often have open commitments that must be kept open from one fiscal year to the next and, will need to be converted into ARC. CPO s represent University Purchase Orders that have specific start and end dates. Examples of CPO s are: Consultants Service contracts Goods rentals The features that make CPO s different than regular PO s is the presence of a start and end date and many have multi-year encumbrances. Multi-year encumbrances are important in that it allows schools and departments to budget for multi-year agreements by spreading the costs appropriately over the term of the CPO. This is present in many of the CPO s currently in place. Once valid CPO s are converted in ARC they would only have 1 fiscal year (FY13) of life before they would need to be cancelled, fully paid or left to expire, as there will not be an ability to complete a Change Order on converted CPO s in ARC. If the CPO term ends anytime in FY13 then departments mustaffirm to Purchasing that this is a valid CPO and must complete a Change Order in FY12 so all funds (encumbrances) required in FY13 will be converted into ARC and will be available for payments in FY13. If the CPO goes beyond FY13, then at some point in FY13 a department will be required to re-issue a new purchase order in ARC covering FY14 forward. It is advisable that departments that have multi-year CPO s that extend into FY13, leave them in place for the ARC transition. This will provide funds availability in FY13 and avoid any potential payment delays. A report has also been issued to all departments that have CPO s with open commitments in order for them to positively affirm that the CPO s listed, with their associated open commitment balances, need to remain open and be converted to ARC. If a customer does not provide feedback to Purchasing as instructed, these CPO s will be liquidated. If departments have any questions on the management of contract purchase orders and their conversion to ARC, please contact Hugh Horowitz at (212) or purchasing@columbia.edu C. ARC Cutover Process Please be aware of the following cutover activities that will be occurring during the months of June 2012 and July 2012 Processing of Requisitions and Change Orders by Central Purchasing for those Requisitions and Change orders submitted by June 8, 2012 Following the June 8, 2012 deadline for submission of requisitions and change orders to Central Purchasing, Purchasing will be processing those submitted requisitions to create change orders and will be processing the change order requests to update existing purchase orders. Purchasing must complete its work by Friday, June 22, 2012 so that the new and updated open Page 17 of 19

18 commitments (encumbrances) from the processed requisitions and change orders will be ready for the conversion of open commitments to the ARC system. During this period, it is essential that processors and approvers in departments are alert to communications from the Purchasing staff regarding submitted requisitions and change orders. Your timely response to Purchasing s requests to resolve any items preventing the processing of a transaction is crucial to ensuring that the open commitment is converted to ARC. Departments must confirm to Purchasing Open Commitments to be Brought Forward into ARC Before June 8, 2012, departments, using the open commitments report, should have already provided Purchasing with a list of open commitments that they have affirmed should be converted into ARC. Before June 8, 2012, departments should have completed any required change orders to encumber any FY2013 amounts on contract purchase orders and affirmed those open commitment for conversion into ARC All EZ-P.O.s created during June that have open commitments will be converted into ARC During June 2012, Purchasing will be finalizing the list of open commitments and confirming the amounts with departments in preparation for the June 22, 2012 deadline and conversion into ARC. Any open commitments not confirmed by departments will be liquidated by Purchasing and will not be converted to ARC. All open commitments (excluding salary and petty cash) on non-project accounts will be expensed on the night of June 29, 2012 and will appear as such on your June 30th FAS statements. These commitments, along with respective expenditure credits, will be brought forward to ARC and be reflected in FY2013. Processing in ARC of any Emergency Purchase Orders Created During Interim Period Prior to Departmental Go Live on July 9, 2012 After June 8, 2012 and until July 9, 2012, if it is determined that it is necessary to follow emergency procedures to create a manual purchase order (see Requisition/ Purchase Order/ Change Order section above for details on emergency procedures), those manual purchase orders will need to be processed centrally by Purchasing in ARC, prior to departmental access to ARC on July 9, D. Roll-forwards Requests to roll forward expenses that resulted from the expensing of an open commitment can be submitted as follows: Morningside and Lamont Please submit the account number, PO number, and the dollar amount, along with a short explanation of the reason for the roll forward to Eugene Kornikh ( , yk2392@columbia.edu), at 615 W. 131Street, 3 rd floor, Mail code: Roll forward requests can be submitted from Friday, July 6, 2012 to Friday, July 27, 2012at 2:00pm. CUMC CUMC departments should submit their encumbrance rollover requests to Angela Orfanos ( , ao2287@columbia.edu) in the CUMC Controller s Office by Monday, July 16, CUMC Controller s Office will distribute to CUMC departments the document format to submit the encumbrance rollover request. Page 18 of 19

19 13. Year End Analysis and Reporting June 30, 2012 month end COBs based on the June 30, 2012 close will be available to schools and departments at earliest on Tuesday, July 10, The June 30, 2012 COBs should be used to begin the analysis of year end results and the budget, as well as, the comparison of FY2012 and FY2011 actuals. June 31, 2012 year end COBs based on the June 31, 2012 close will be available to schools and departments by Monday, August 13, The June 31, 2012 COBs should be used to finalize the analysis of year end results and the budget, as well as, the comparison of FY2012 and FY2011 actuals. Explanations will be required for variances of $500,000 or greater for all revenue and expense COB lines. Please forward all variance explanations to Friday, August 27, For OMB questions contact David Soper ( , For Controller s Office questions contact Patrice Elliot ( , pe2132@columbia.edu). 14. FIN ERP Deployment Dates The deployment of FIN ERP will occur from Friday, June 29, 2012 to Sunday, July 8, The new system will be available for use on Monday, July 9, Additional communications will occur prior to the deployment providing more details. 15. PACDeployment Dates The retrofit of the PAC system to work with FIN ERP will occur from Tuesday, July 10, 2012 to Sunday, July 15, The retrofitted system will be available for use on Monday, July 16, Additional communications will occur prior to the deployment providing more details. 16. SIS Financial Aid Processing for Stipends and Refunds The final interface file from SIS to AP/CAR to create vouchers for stipends and refunds will be processed on Friday, June 29, 2012.Transactions will still be entered in SIS during the cutover period and will be processed when ARC is available on Monday, July 9, We appreciate your cooperation in following these guidelines so that we can issue the University s financial statements within the mandated time frame. If you have any questions concerning fiscal year closing topics, please contact Patrice Elliott, Director, Financial Reporting, at or pe2132@columbia.edu. Please note that this information may also be found on the Office of the Controller website at: Page 19 of 19