Year End Processing KASBO SPRING 2016 Sessions 1D and 4D Ramona Gardner HERE S WHAT YOU NEED - DOCUMENTATION KDE website General Ledger Year End BGL-2 AFR & Year End Frequently Asked Questions Annual Financial Report Guide On-Behalf Payment Instructions Unaudited AFR & Balance Sheet Submission Guide Tyler Technologies website Community Knowledge Base 1
Annual Financial Report (AFR) Unaudited AFR due to KDE by July 25 th Audited AFR due to KDE by November 15 th Use the SEEK submission test button MUST check the Statement of Certification (SOC) box before submission of audited AFR TIMELINE By June 30 th Review the numbers July 1 st 1 st working day of year By November 15 th Submit audited AFR By July 25 th Submit unaudited AFR 2
GET READY FOR THE NEW YEAR STEP 1: Create new year default journal numbers (copy 2015) STEP 2: Add charge codes to Accounts Receivable / General Billing REVIEW PRIOR YEAR PROJECTS Run Project Budget Report for all multi-year funds Seg find on fund 2 (run separate report for fund 22 and 360) Report options for sequence 1 showing 12 projects Totals only and no page break Report will have 3 lines for each project 3
REVIEW PRIOR YEAR PROJECTS (cont) Look for old projects with current year activity by mistake needing reclassifications Look for any projects that are over spent Review current year projects that must be spent or obligated by June 30 th REVIEW PRIOR YEAR PROJECTS (cont) Ensure this Project Budget Report agrees to the Balance Sheet 4
REVIEW BALANCE SHEET Print most current balanced month s Balance Sheet Should not include advances from grantors - 7481 (unearned revenue or deferred revenue) Should not include accounts receivables 6153 or old accounts payable - 7421 Should not include fund balance accounts that were to be closed into beginning balance or were not allowable in the fund, such as unassigned - 8770 REVIEW BALANCE SHEET 5
REVIEW OPEN PURCHASE ORDERS Directions are included in Appendix B of the Fiscal Year End Processing document Open POs must be legitimate budget obligations for the new fiscal year Run Purchase Order by GL Account for open POs Look for outdated POs in PO Change Order Close or cancel POs that should not be carried forward REVIEW OPEN INVOICES Only legitimate open invoices should carryover into new fiscal year Run Invoice History by GL Account by fund for open invoices Look for invoices attached to voided checks that were never cancelled You should be able to tell why you owe every penny that is reflected as an account payable 6
RUN UTILITIES Run GL Comply Utility this will show any accounts that are not in compliance with KDE s current COA Run GL Memo Balance Utility this will sync up the memo balance to the details screen on Accounts Inquiry Run GLFXJNLD Utility this will change the journal effective dates to be within the period where journal is posted RUN UTILITIES (cont) Run GL Encumbrance Utility this will identify POs with invalid or incorrect amounts and recalculates the encumbrance balance for each account Discrepancies will require an encumbrance journal or the system to process an update to fix the issue 7
RUN TABLES VALIDATION Select Comprehensive button Old prior year errors will require MUNIS assistance Make sure to resolve all errors prior to closing the year OTHER ITEMS Close all months Ensure you are balanced to the bank at May 31 st 8
JULY 1 ST SET DEFAULT YEAR AND PERIOD UPDATE THE SET HOLDING YEAR OPEN FLAG JUNE INVOICES Enter in a batch with a 6/30/16 effective date A/P will reflect in 2016 period 12 but use a July warrant number Keep the proof as documentation for A/P on Balance Sheet When writing checks for that warrant, use July effective date payment (withdrawal from cash) will reflect in 2017 period 1 CAN ONLY POST THIS WAY UNTIL YOU CLOSE THE YEAR! 9
JUNE INVOICES Use July date and warrant on cash disbursements so they will post in 2017 period 1 ONE LAST REVIEW OF THE NUMBERS Review Balance Sheet Review open PO s Review open invoices Review all multi-year projects Run utilities Run a comprehensive tables validation Make sure periods 12 and 13 still reconcile to the bank 10
PERFORM YEAR END CLOSE Perform Year End Close Backup Refresh train site Close in train first to ensure each step works in your system Halt MUNIS processing - Lock MUNIS Close Current Fiscal Year Produce Final Trial Balance PERFORM YEAR END CLOSE (cont) Open New Fiscal Year Process Budget Completion Journals (multiple) Review new year PO and requisition numbers for accuracy Allow staff back in MUNIS to resume processing Your system is now officially in 2017 and you can only post in period 13 for 2016! 11
POST YEAR END ENTRIES Enter accounts receivable June monies received in July Debit A/R 6153 Credit Revenue account Enter any additional accounts payable June bills paid in July and not recorded in separate batch before year was closed Debit Expenditure account Credit A/P - 7421 POST YEAR END ENTRIES (cont) Verify and enter fund 2 - Advances from Grantors (old deferred revenue or unearned revenue) Debit Fund 2 - Revenue account Credit Advances from Grantors - 7481 Verify and enter fund 2 - Accounts Receivable Debit A/R 6153 Credit Fund 2 - Revenue account 12
POST YEAR END ENTRIES (cont) Debt service on-behalf payments must be posted for the AFR to be submitted Debit 0004112 0831 SFXX Debit 0004112 0832 SFXX Credit 400 3900--SFXX POST YEAR END ENTRIES (cont) Technology on-behalf payments must be posted for the AFR to be submitted Debit 0011199 0533 16MX Credit 110 3900 16MX KISTA Energy Savings Leases on-behalf Debit 0004112 0838 ENE Debit 0004112 0839 ENE Credit 400 3900 ENE 13
POST YEAR END ENTRIES (cont) Personnel on-behalf payments must be posted for the AFR to be submitted (cont) KTRS plus, Health insurance plus, Life insurance plus, Administrative fee plus, HRA; Debit Credit Exp org--0280 110--3900 Less Federal Reimbursement POST YEAR END ENTRIES (cont) Fund Balance Entries are required for most funds to either nonspendable, restricted, committed or assigned account codes Usually debit 8770 account and credit where you want it to land 14
POST YEAR END ENTRIES (cont) Capital Outlay and Building Funds in even year (2016) can have a carry over so just move to restricted account Debit 31(32) 8770 Credit 31(32) 8735 - Future Construction with BG or Credit 31(32) 8737 Other (if no BG) POST YEAR END ENTRIES Encumbrances Balances in 8753 and 8755 must be reclassified in all funds other than fund 1 Should move to same account where you moved the amount in 8770 15
POST YEAR END ENTRIES (cont) Fixed Asset Activity Add new fixed assets for the year Retire or adjust fixed assets for the year Post depreciation for the year This can be done in period 12 before you close the year, in period 13 before you submit unaudited AFR or in period 13 before you submit audited AFR POST YEAR END ENTRIES (cont) After all entries have been posted in period 13, you must Post Last Year Adjustments If any other entries are made to period 13, you will need to Post Last Year Adjustments again You can do this step as many times as needed Now ready to generate the AFR 16
GENERATE UNAUDITED AFR Before going further double check transfers Run AFR with detail for a Seg Find of object 52* - transfers in Run AFR with detail for a Seg Find of function 52* and object 091* - transfers out The totals should agree!! Track down differences NOW you will not be able to submit the AFR if actual transfers in do not equal transfers out GENERATE UNAUDITED AFR Run AFR with detail and without detail Creates many files only send 4 files through SEEK Submission process AFF ASR BS BSF Submit with the test button 17
REVERSING ENTRIES IN PERIOD 1 Reverse manually entered A/R and A/P Reverse Advances from Grantors (old deferred revenue/unearned revenue) Reverse reclassification of encumbrances BEGINNING BALANCE ENTRIES Move fund balances to beginning balance in the following funds General Fund District Activity Fund 21 Capital Outlay Building Fund Food Service Fund Ensure budgets in beginning balance accounts agree to the actual amounts 18
BY NOVEMBER 15 TH POST LAST YEAR ADJUSTMENTS Work with auditor on necessary audit adjustments don t forget to Post Last Year Adjustments Ensure you totally understand the entries you are making DO NOT POST ANYTHING TO A FUND 2 ACCOUNT WITHOUT A PROJECT NUMBER Generate audited AFR files Submit the audited AFR to KDE with the Statement of Certification box checked QUESTIONS??? Ramona Gardner KEDC Financial Consultant ramona.gardner@kedc.org 19