Below is a memo received today from UT System office regarding the closing
procedures for this fiscal year. There is also a schedule of year end
activities which includes deadline dates for various processes. Please read
carefully and let me or my staff know if you have any questions.
Also, please be aware that the deadlines for documents are the dates that
they must be received in Knoxville. You will need to have the necessary
paperwork in my office or in Disbursements/Payroll at least 10 days prior
to these deadline dates.
Thanks to all of you for the hard work this past fiscal year. A special
thanks to those of you who have worked very hard in learning and working in
the new IRIS system. If you have not signed up for the training classes,
please contact Melanie Slader in Personnel Services for the next available
class. We have several training sessions on various components of the system.
Thanks again,
Debbie
M E M O R A N D U M
TO: Chief Business Officers
FROM: Ron Maples, Controller
Neal Wormsley, Associate Treasurer
DATE: June 7, 2001
SUBJECT: Year-end Closing Procedures and Schedules
Enclosed is the schedule for processing year-end Treasurer's Office
documents for June 30, 2001. This schedule is provided for your
information and guidance as you schedule the year-end activities in your
areas of responsibility. A pull-off reminder schedule is included as the
last page of this document for your convenience. Please remember that our
objective is to record all revenues, disbursements and encumbrances in the
proper fiscal year.
Accounts Payable Office
All disbursement items, including travel and petty cash reimbursement
vouchers, T27s and transfer voucher items, which are to be included in the
current year activity, must be received in the Treasurer's Office by the
close of the fifth working day in July, which is Monday, July 9. The final
processing of these documents will be the ninth working day of July, or
Friday, July 13.
Procurement Cards: The June cutoff date for purchases made by departmental
procurement cards will be June 27, 2001. The final date to distribute
charges through the procurement card system for the June purchases will be
July 13, 2001. The procurement card default account will be charged for
all purchases if you are unable to access the procurement card system and
distribute the charges by that date. Procurement card purchases made on
June 28 and 29 will be charged to the new fiscal year.
Chief Business Officers should arrange for frequent submission of items
ready for processing and immediately initiate procedures to obtain proper
resolution and disposition of "problem items".
All invoices which are received in the Treasurer's Office after the cutoff
for processing June 30, 2001 checks will be reviewed to determine in which
fiscal year the expenditure should be recorded. Invoices for $1,000 or
more representing June 30, 2001 fiscal year
Chief Business Officers
June 7, 2001
Page 2
expenditures (i.e. goods or services received prior to June 30) will be
recorded as accounts payable and expensed. Budget entities wishing to
accrue amounts less than $1,000 should batch these invoices and transmit
them to Accounts Payable with a request for accrual. All accrual entries
will be made by the Treasurer's Office, Campus Business Officers, and/or
the Internal Audit Section of Management Services.
Controller's Office
The schedule established for the various stages of the year-end closing
process by the Controller's Office is as follows:
1. Departments may run an "interim" ledger (zdept_ledger) at the close of
business on Friday, June 29.
The interim ledger will include:
(a) Invoices which have been entered through Friday, June 29.
(b) Interfaces which have been processed through Friday, June 29.
(c) Regular transfer vouchers, journal vouchers, and budget change
forms which have been received and processed by the Treasurer's Office
through Friday, June 29. Salary transfer vouchers received by Monday, June
18 will be included in this report.
(d) Payroll vouchers including the biweekly payroll for the pay period
ending June 17. Checks will be dated June 25. The bi-weekly pay
period ending June 17 will be paid on June 26.
(e) Cash receipt vouchers to the extent they have been accepted for
posting. This should include all CVs except for June 29.
The "interim" ledgers should be reviewed so that any necessary corrections
and/or adjustments can be processed in time to be reflected in accounting
period twelve.
2. July (period 01) 2001 will be opened July 5 for purchasing and financial
transactions. New year items in hand should not be processed in IRIS until
this date.
Chief Business Officers
June 7, 2001
Page 3
3. The accounting close for the month of June (period 12) is scheduled on
the tenth working day of July, or Monday, July 16.
Departments may print final monthly ledgers on Wednesday, July 18. The
Treasurer's Monthly Report for the month of June (period 12) is scheduled
to be printed and distributed by the twelfth working day in July, or
Wednesday, July 18. These ledgers and reports include all regular June
(period twelve) transactions for the fiscal year that were generated by
invoices, payroll vouchers, salary transfer vouchers, cash receipt
vouchers, and all purchase order activity. Regular transfer vouchers and
journal vouchers will be included to the extent that they are processed
through the Treasurer's Office by Friday, July 13.
These reports will complete all routine business transactions other than
the final closing entries.
4. All regular journal entries affecting restricted accounts should be
received in the Controller's Office by Monday, July 23. Indirect cost
adjustments must be received by Wednesday, July 25. The final automated
indirect cost run will be entered on Friday, July 27 closing restricted
accounts.
5. After the close of period 12 for June, only corrections, adjustments,
and closing transfer vouchers and journal vouchers will be accepted for
processing against the current fiscal year records. Schedule "K" by entity
can be ran off any time by the CBO's to assist in closing.
6. All closing entries for salary and staff benefits including accruals
must be received in the Controller's Office by Wednesday, July 25. After
this date no journals or transfer vouchers with salary or wage GL accounts
will be processed for fiscal year 2001. All closing entries for expense
and income accounts (including auxiliaries) must be received in the
Controller's Office by Friday, August 3. The Controller's Office will
attempt the final closing of this year's records by the end of August, or
Friday, August 31. The final ledgers and reports for the year may be
printed by the fifth working day in September, or Monday, September 8.
Please contact the Controller's Office immediately at (423) 974-2493 if
unusual needs or situations arise which require special handling or
consideration.
Chief Business Officers
June 7, 2001
Page 4
Payroll Office
All salary or additional/overtime pay to be charged to FY 2001 must be paid
through the
normal payroll cycles prior to July 1, 2001. Personnel Action Forms and
pay adjustment forms to be reflected on the June monthly payroll must be
received in the University Payroll Office by Monday, June 11. PAF's for
the biweekly pay period ending June 17 are due on Friday, June 15.
Biweekly pay adjustment forms for this period must be received by Tuesday,
June 19. T-27 miscellaneous payroll (not processed by the payroll office)
for this period must be received in Accounts Payable by June 29.
To be included in the current fiscal year, all payroll checks to be
cancelled and all salary transfer vouchers to be posted must be received in
the University Payroll Office by noon Friday, June 29. These transactions
will be processed on Monday, July 2.
UWA Audit and Management Services
To facilitate year-end closing, UWA Audit and Management Services will
provide year-end instructions and special requests to certain
University-wide and Knoxville campus departments. Those instructions will
be tailored to the requirements for each budget entity and will specify the
information needed.
UWA Audit and Management Services and campus-based auditors will observe
physical inventories; record accounts receivable, related reserves, and
other adjusting entries; and prepare and analyze operating statements for
certain auxiliary enterprise operations.
Reserve for Encumbrances
The Reserve for Encumbrances represents an allocation of the current fund
balance equal to material outstanding purchase orders as of June 30. The
only purchase orders that should be outstanding at June 30 are those for
which funds are available in departmental budgets at year-end. Purchase
Orders for goods or services ordered prior to June 30 for delivery after
June 30 must be dated July 1. The purchase order file, after final June 30
checks have been deobligated, will be the initial basis for the Reserve for
Encumbrances. An outstanding
purchase order list will be provided and must be reviewed for each budget
entity. After eliminating amounts representing purchase order payments
which are accrued as accounts payable, the remaining purchase orders in the
amount of $1,000 or more will be used to establish the Reserve for
Encumbrances. Budget entities will continue to have the option to add
purchase orders less than $1,000 to the reserve by sending an itemized list
to the Controller's Office. At the beginning of the new fiscal year, each
budget entity will have the responsibility for initiating a Request for
Budget Revision (Form T-15) charging the
Chief Business Officers
June 7, 2001
Page 5
appropriate fund balance account to record increases in the appropriate
departmental budgets for items included in the Reserve for Encumbrances.
The Controller's Office will eliminate the Reserve for Encumbrances and
increase the budget entities' fund balances at the beginning of the new year.
Undeliverd Checks
Undelivered Checks that will be more than twenty-one (21) days old at June
30 should be returned to the Treasurer's Office for cancellation. These
checks should reach the office indicated below no later than the last
working day of June or Friday, June 29, 2001 by noon.
Payroll Checks: Must be returned to the Payroll Office, Room P115, Andy
Holt Tower.
Voucher Checks: Must be returned to the Accounts Payable Office, 301 Andy
Holt Tower.
Miscellaneous Checks: All financial aid checks must be returned to the
Controller's Office, Room 201, Andy Holt Tower. Other miscellaneous
checks must be returned to the Accounts Payable Office, 301 Andy Holt Tower.
Cash Receipts
A clean break must be made between fiscal years for all funds received.
Funds received in University offices prior to the close of business on June
29 must be deposited on separate bank deposit slips and forwarded with a
separate Report of Collections (Form T-33) dated June 29, 2001 to be
received in the UT - Knoxville Bursar's Office no later than Thursday, July
5, 2001 by 9:00 a.m., preferably earlier. Funds received in University
offices beginning July 1 and later (thus not available in the prior fiscal
year) must be deposited on appropriately dated bank deposit slips and
forwarded on separate Report of Collections (Form T-33) appropriately dated
in the new fiscal year.
In view of the volume and diversity of transactions which must be processed
and recorded during the closing process, it is essential that all Business
Offices cooperate fully in the timely submission of closing information.
In particular, requests for disbursement vouchers
must be scheduled for frequent submissions in June in order to reduce the
volume of transactions on the final submission date.
Please distribute this memorandum to all business personnel in your area
who are involved in the year-end closing process in order that they may be
aware of the target dates which have been established for the various
stages of the closing process. Thank you for your cooperation.
JRM:vjm
SCHEDULE OF YEAR END ACTIVITIES
FOR YEAR ENDING JUNE 30, 2001
DATE ACTIVITY
June 15 - Deadline for salary transfer vouchers to be included
on June interim ledgers
June 17 - 26th bi-weekly payroll FY 2000 - 2001 ends
June 26 - 26th bi-weekly payroll paid
June 27 - Deadline for departmental procurement card purchases
June 29 - June monthly payroll paid
- Deadline for all FY 2000-2001 salary transfer vouchers
- Deadline for all undelivered checks (over 21 days old)
to be returned to the Treasurer's Office
July 1 - Interim Treasurer's Report and ledgers may be printed
July 5 - FY2002 will be opened for purchasing and financial transactions.
July 6 - Deadline for cash receipts to be credited to FY 2001
July 10 - Deadline for all disbursement vouchers, T27s and transfer
vouchers to be included in FY 2001 to be received in Treasurer's Office
July 13 - Final processing of invoices and transfer vouchers for FY 2001
- Deadline for processing journal entries that will
appear on the June 29 (period 12) ledgers
- Deadline for distribution of charges on procurement card system
July 16 - Close June accounting period (period 12)
July 18 - June 29 (period 12) Treasurer's Report and ledgers may be
printed
July 23 - Deadline for receiving journal entries that affect
restricted accounts
- All loan fund activities should be closed
July 25 - Deadline for receiving indirect cost adjustments
- Deadline for receiving salary and staff benefit closing entries,
including accruals
August 3 - Deadline for receiving final expense and income journal entries
August 10 - Final closing entries must be received
August 31 - Final close for FY 2001
Deborah Parker
University of Tennessee at Chattanooga
Associate VC Business & Finance
615 McCallie Avenue
Chattanooga, TN 37403
423-755-4467
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