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Fiscal Year 2006-2007
Detailed Instructions and Deadlines

OUS » Controller's Division » Accounting & Reporting » Closing of the Books » Detailed Instructions and Deadlines
This document makes several references to information to be found in the OUS Fiscal Policy Manual and FASOM (the OUS Financial Administration Standard Operating Manual).  There are some links to FASOM on the web.  Some references do not link to the web FASOM or do not link correctly because all of the original (paper) FASOM was not put on the web.  If, in this document, there is a FASOM reference that DOES NOT LINK to the web FASOM, please refer to the original (paper) FASOM manual.
NOTE: 
 If a preformatted schedule is provided, please return the information to us in that format.  The information requested could have changed from the prior year so review the new schedule formats before beginning your work.  If you have questions, please call Mary Gaffney at (541)737-9550, or Paul Bartlett at (541)737-4361.
Index
CB Closing of the Books - Tasks that must be completed to close the books through period 14
FS Preparation of Disclosures for Financial Statements - Additional information we will need to prepare the financial statements and related notes
EA Preparation of Requests for the External Auditors - Information that external auditors will be reviewing as part of their audit of the financial statements
CI Other Compliance Issues - Generation of various reconciliations and reports to comply with specific requirements
CB. CLOSING OF THE BOOKS

CB1. OVERDRAFTS

  1. Budget overdrafts in the fund type totals for fund type 11, Budgeted Operations. Accrued expenses and valid outstanding encumbrances at June 30 are considered in determining an overdraft. Exceptions require consultation with the Budget Division of the Chancellor's Office.
  2. Overdrafts of fund type totals for Cash Interfund (A0901).
  3. Fund balance overdrafts for fund type 12, Designated Operations, and cash interfund (A0901) overdraft for total of fund type 12. When clearing overdrafts in designated operating funds, account code 24901, 'Designated Operations Fund Support' should be used on the debit side of the transaction; the credit should be to account 09398, 'Support for Desig Ops/Serv Depts'. If the support is from an agency fund, the credit should be to account 08001, 'Miscell Other Revenues'.
  4. Cash interfund (A0901) and fund balance overdrafts for fund type 13, Service Departments. When clearing overdrafts in service department funds, account code 24902, 'Service Dept Support Charge' should be used on the debit side of the transaction; the credit should be to account 09398, 'Support for Desig Ops/Serv Depts'. If the support is from an agency fund, the credit should be to account 08001, 'Miscell Other Revenues'.
  5. Cash interfund (A0901) and fund balance overdrafts for fund type 20, Auxiliary Enterprises.
  6. Fund balance overdrafts for fund type 30, Restricted Funds.
  7. Cash overdrafts (account A0901) in any Gift Fund in the Restricted or Unrestricted Gifts funds. Gift funds cannot be expended before they are received. Excess expenditures are to be reclassified.
  8. Budget, cash interfund (A0901), and fund balance overdrafts in fund type 81, Unexpended Plant Funds. It is the responsibility of the institutions to ensure that sufficient funds are available regardless of the source of funds. If the overdraft is the result of insufficient funds, then transfer of funds is requested from OUS Facilities, Finance and Administration Division. If the overdraft is the result of expenditures in excess of budgeted amounts, then the excess expenditures are to be reclassified. Exceptions to this overdraft policy are construction funded by cost reimbursable grants, receivables from SELP loans, COPS reimbursements, and insurance reimbursements.
  9. Overdrafts in cash accounts in the Bank Fund (A00000), especially those associated with Statewide Public Service activities, lottery funds, donation funds, student activity funds, loan funds, invention funds, agency funds, and deposit funds.

CB2. Clearing Funds

  1. A zero balance for the Operating Ledger means that no amounts should remain in the operating ledger account codes. If a clearing fund carries an operating ledger year-end balance, the activity is to be reclassified to a prepaid expense (A50xx) or deferred income (B5xxx) account in the proper operating fund. The reclassification is reversed on Period 01 of the new fiscal year.
  2. A zero balance for the General Ledger means that there should be no amounts remaining in any general ledger account codes except account B0100 (Invoices Payable) and its offset B0103 (Invoices Payable-Clearing Fund Reclass). Any balances remaining in Accounts Receivable (A3xxx) account codes must be reclassified to the proper operating fund using the same accounts receivable account code. The reclassification is reversed on Period 01 of the new fiscal year.
  3. Indirect cost recoveries are cleared to the appropriate non-clearing fund using account code 03400 (Indirect Cost Recoveries). No balances are carried forward for indirect cost recoveries in clearing funds.

CB3. Physical Plant Prepaid Expenses

  • Physical Plant prepaid expense accounts cleared by July 20, 2007, 5:00 p.m.
  • Included in this category are:
    • Physical Plant Labor Clearance
    • Physical Plant Clearance (Materials)
    • Work In Progress (Shop Orders)
    Balances not cleared will be expensed as Physical Plant costs.

CB4. DEFERRED REVENUE and prepaid expenses

  • To be completed by close of Period 14 on July 25, 2007, 5:00 p.m.
  • The purpose of this closing instruction is to ensure that revenues and expenses are reported on an accrual basis. The following defines what is required to report on an accrual basis.
  • Deferred Revenue: Monies received during the current fiscal year that will be earned as revenue in a future fiscal year must be reclassified from "revenue" to "deferred revenue". An example of this activity is the deferral of football season ticket purchases for athletics.
  •  
  • Prepaid Expense: Amounts paid during the current fiscal year that will be received as goods or services in a future fiscal year must be reclassified from "expense" to "prepaid expense". An example of this activity is the payment of rent on a quarterly or annual basis. Payroll related expenses are considered periodic costs and are not reclassified as prepaid.

  • Please pay particular attention to the following financial activity:

  • Reclassifying Summer Session Revenue and Expense: All summer session revenue (including continuing and distance education) must be prorated between the fiscal years in which the summer term operates. At June 30, any revenue estimated to apply to the next fiscal year is to be classified as deferred revenue in the appropriate operating fund by the institution. Due to the varying lengths of classes offered during summer, an estimate must be used to record the summer session revenue applicable to the current fiscal year. Please use the methodology and estimate created by the Controller's Division to ensure consistent application of this accrual. Please contact Mary Gaffney for a copy of the methodology and estimate.
  • In accordance with the prepaid expense definition above, summer session prepaid expense is limited to payments made in the current fiscal year for goods or services that will be received in the subsequent fiscal year.
  • Reclassifying Fund Type 30 Revenues: All fund type 30 revenue is to be recorded in the fiscal year in which they are earned. Revenue received but not yet earned is to be reclassified to "Deferred Revenue" at June 30, 2007.

CB5. Inactive Funds

  • To be completed by July 23, 2007, 5:00 p.m.
  • Balances in inactive designated, service department, auxiliary enterprise, restricted, and agency operating funds are to be transferred to compatible funds or disbursed in accordance with the terms under which the fund was created.
  • Balances in completed Unexpended Plant Fund projects are to be returned to their source by notifying the Controller's Division or Business Affairs Office, depending on funding source. Inactive, zero balance funds are to be terminated.

CB6. Accounts Receivable (See Related Items EA.1 and EA.2)

  • Backup SIS TBRACCD table on June 29, 2007, 5:00 p.m.
  • Use Schedule EA.1
  1. Accounts Receivable detail must be reconciled to the General Ledger at June 30, 2007.
  2. The write off of un-collectible accounts receivable is to be documented and accounted for per FASOM 06.25.
  3. An allowance for un-collectible accounts receivable is to be made for accrued receivables per FASOM 06.25. The determination of the amount of the allowance requires documentation; and a copy of the documentation is to be forwarded to the Controller's Division. This document will be provided to the external auditors. (See EA.2, Allowance for Doubtful Accounts.)
  4. Accounts Receivable balances are to be aged according to a five-year span. A detail schedule of June 30, 2007 balances, reconciled to the General Ledger, by debtor with amounts aged in 0-1 year, 1-2 years, 2-3 years, 3-4 years, 4-5 years, and 5 years and over categories. Use Schedule EA.1, Accounts Receivable Listing.

CB7. Proper Coding of FEDERAL Funds

  • To be completed by July 20, 2007, 5:00 p.m.
  • Ensure that federal funds have accurate project codes and CFDA codes. Report FWROPYE may be run and reviewed to aid in this process.

    Summary
  • The accuracy of CFDA coding is important because that information is used to prepare the Statement of Expenditures of Federal Awards (SEFA) which is submitted to the Federal Government. The SEFA provides the Federal Government with a listing of Federally funded OUS expenditures broken out by CFDA code.

    Every effort must be made to obtain valid CFDA codes. The CFDA code appears on the grant award notification. For sub-direct grants and contracts from a prime recipient, one must go to the prime recipient to obtain the CFDA code.

    The SEFA prepared by OUS is forwarded to the Department of Administrative Services (DAS). DAS compiles the SEFAs from all state agencies and prepares a SEFA for the entire State. The State of Oregon SEFA is audited by the Secretary of State, Audits Division.


    • Assigning CFDA codes

    All Federally funded expenditures must be coded to the correct CFDA code. The CFDA code comprises two sets a numbers: A two digit prefix to denote the Federal agency and a three digit suffix to denote the specific program with that Federal agency.

    A specific CFDA code should be found for most all Federally funded expenditures. However, there may be some very unusual exceptions where an expenditure of Federal funds is not associated with a specific CFDA code.

    If one is indeed sure that a specific CFDA code does not exist, one must assign a miscellaneous CFDA code which identifies the Federal agency in the two digit prefix, but has no three digit suffix to denote the specific program. This becomes a "miscellaneous" CFDA code.

    For "miscellaneous" CFDA codes, we must also add another identifying number so that the Audits Division, if need be, can trace the Federal expenditures back to the specific Federal grant(s) or contract(s). The additional identifying number will be found in the "sponsor ID" field in the Banner FIS grant table.

    Deleted CFDA codes

    Occasionally the Federal government removes some programs which results in a CFDA code being deleted. However, the grant or contract related to the CFDA code may continue beyond when the CFDA code has been deleted. In this case, we will continue to report the expenditures by the same CFDA code, but on the SEFA report submitted to DAS, we will clearly identify that the CFDA code has been deleted.

    CFDA codes absorbed into other CFDA codes

    When an institution learns that a CFDA code has been absorbed into another CFDA code, the institution should update their grant ledger with the new CFDA code in a timely manner.

    CFDA codes with title changes

    This is not a problem because when we prepare the SEFA report, we go to the Federal web site to find the most up to date titles for each CFDA code.

CB8. Purchase Requests & Orders, Including Contract Release Orders AND GA ENCUMBRANCES

  • Purchase orders for goods or services to be received by June 30, 2007, should be processed, approved, and posted no later than June 29, 2007, 5:00 p.m.
  • If purchase orders, requisitions, GA encumbrances, and reservations are not being rolled into the following fiscal year, they should be closed by July 20, 2007, 5:00 p.m.
  • Purchases approved for goods or services to be delivered after June 30, 2007, are to be charged against the next fiscal year budget and processed on Period 01 of the new fiscal year.

CB9. Accrual of Liabilities and Expense

  • To be completed by close of Period 14 on July 25, 2007, 5:00 p.m.
  • FASOM Section 01.23 provides guidance for charging obligations to the proper fiscal period. Supplies or equipment delivered or services provided by June 30, 2007, are to be charged to that fiscal year. If these received items are not paid, they should be accrued as an expense and liability. If the invoice is received prior to Period 14 closing, it is possible to process the invoice in the 06-07 fiscal year with a transaction date in FY07 and a payment date in FY08 to post the accrual. Other items should be accrued by JV using the appropriate Expense Account and the year end A/P Accrual Account B0101.

CB10. Personnel/Payroll - For June Manual Payments, Including Adjustments

  • Aggregation of Manual Payroll Check Items -- July 2, 2007, 8:00 a.m.

CB11. INTER-INSTITUTIONAL Journal Vouchers

  • On-line entry deadline of inter-institutional journal voucher transactions between universities for Fiscal Year 07 is July 10, 2007, 5:00 p.m.
  • On-line entry deadline of inter-institutional journal voucher transactions between CO and a university for Fiscal Year 07 is July 13, 2007, 5:00 p.m.
  • The deadline for processing inter-institutional JVs through the Controller's Division is July 20, 2007, 5:00 p.m.
  • After July 10, inter-institutional JVs between universities for 06-07 must be submitted to the Controller's Division for processing.
  • After July 13, inter-institutional JVs between CO and a university for 06-07 must be submitted to the Controller's Division for processing.

CB12. Cash Receipts and Deposits/SIS Accounts Receivable Feeds

  • Final A/R feeds from the SIS system completed as of June 29, 2007, 5:00 p.m. should be fed to FIS using a June 2007 feed date and transaction date to post to FY 2007. This must be finished before CB6.
  • Cash collections by the Business Office or other institution departments through June 30, 2007, are reported in the fiscal year ended June 30, 2007. Institutions need to ensure timely receipt of campus departments' deposits and collections at the Business Office so that cash receipts will be credited to the appropriate fiscal year.

CB13. GRANTS AND CONTRACTS RECEIVABLE ACCRUAL

  • To be completed by close of Period 14 on July 25, 2007, 5:00 p.m.
  • Grant/Contract Receivable: All reimbursable costs incurred but uncollected on government grants and contracts at June 30, 2007, need to be accrued and reported as accounts receivable. (See EA.1.c Accounts Receivable Listings - Grant/Contract Receivable.)

CB14. CAPITAL ASSET IMPAIRMENTS AND INSURANCE RECOVERIES

  • To be completed by close of Period 14 on July 25, 2007, 5:00 p.m.
  • See related item FS.14
  • Please record asset impairments before the end of period 14. A capital asset is considered impaired when its service utility (usable capacity) has declined significantly and unexpectedly. Determining whether a capital asset has been impaired involves an evaluation of prominent events or changes in circumstances that may have resulted in the permanent or temporary impairment of a capital asset. If a capital asset was permanently impaired during the fiscal year, an impairment loss should be calculated and recorded.
  • An insurance recovery may be associated with a capital asset impairment or it may be related to a recovery in the event of theft of a monetary asset. Please record any insurance recoveries received during the fiscal year by the end of period 14. If the recovery has not been received by June 30, it will need to be accrued as a receivable if it is determined to be realizable.

FS. PREPARATION OF DISCLOSURES FOR THE OUS FINANCIAL STATEMENTS & STATE CAFR

The following reports and schedules should be submitted to Mary Gaffney in the Controller's Division (unless noted otherwise):

FS1. Invoices Payable

  • Due July 27, 2007, 5:00 p.m.
  • Please submit detail listings supporting balances in the June 30, 2007 General Ledger invoices payable control accounts (run FWRAPIN after the close of Period 14 with an "as of date" = 06-30-2007).
  • Please provide a detailed listing of any other year-end accounts payable that come to the university's attention after the close of Period 14. See EA4 for additional information.

FS2. Unpaid Obligations/Liabilities (Leases and Retainage)

  • Capital Leases (Schedule FS.2.b) - Prepare Schedule FS.2.b for each lease that meets the criteria of a capital lease as defined by Fiscal Policy Manual 05.281. For financial accounting and reporting purposes, the lease is a "capital Lease" if:
    1. The fair market value of the property at the inception of the lease meets or exceeds the capitalization threshold of $5,000,
    2. the lease is non-cancelable, and
    3. the lease meets one or more of the following four criteria:
      1. The lease transfers ownership of the property to the lessee by the end of the lease term.
      2. The lease contains a bargain purchase option.
      3. The lease term is equal to or greater than 75% of the estimated service life of the leased property (e.g., lease is six years, estimated life is eight years.)
      4. The present value (PV) of rental and other minimum lease payments equals or exceeds 90% of the fair value of the leased property less any investment tax credit retained by the lessor (e.g., PV of future minimum lease payments is $9,000, fair value of property is $10,000.) The interest rate used to determine the PV should be the financing rate disclosed in the lease agreement.

    If a lease does not meet any of the above criteria, it should be treated as an operating lease.

    Operating Leases (Schedule FS.2.a) - Leases that do not meet the definition of a capital lease are classified and accounted for by the lessee as operating leases.

    Please provide information on the following:

    1. Operating leases per Fiscal Policy Manual 05.281 and Schedule FS.2.a. Do not include leases where the lessor is an OUS entity. Schedule FS.2.a is designed to have the current fiscal year excluded from the total column on the right. It is followed by the next five years shown individually with five year aggregations thereafter which are included in the right total column. One is encouraged to use the schedule provided annually rather than cannibalizing the prior year schedule. To prepare this schedule properly, it cannot be carried forward by deleting the prior fiscal year from the schedule and leaving the other columns the same. The five individual years and five year aggregations must be recalculated each year.
    2. Capital leases per Fiscal Policy Manual 05.281 and Schedule FS.2.b. Provide Banner print screens showing that capital lease liabilities tie to Schedule FS.2.b. Institutions also need to provide the capitalized cost of capital leases and the accumulated depreciation for capital leases on Schedule FS.2.c. Please provide copies of capital lease agreements entered into during the current fiscal year.
    3. Leases between OUS entities per Fiscal Policy Manual 05.281.210 and Schedule FS.2.d if you are the lessee institution. (Lessor institution reports lease on Schedule FS.13.c.) Do not include these leases on Schedule FS.2.a or FS.2.b.
    4. Cash retainage on construction contracts (Controller's Division will determine retainage deposited in savings institutions or held in the form of Certificates of Deposit).

FS3. Compensated Absences Information

  • May Accrual/April Taken Due by May 25, 2007, 5:00 p.m.
  • Post all leave data to Banner by 5:00 p.m. May 25, 2007, to reflect time accrued through May, and time taken through April - to allow for inclusion in the May 31st HR data aggregation. The Chancellor's Office uses this data for computation of the Compensated Absence Liability. The final liability calculation will use estimates for June leave accrued and May and June usage. An adjusting journal entry will need to be created by institution personnel based on CO calculations and posted to period 14 to adjust the liability.

FS4. Pledges of Gifts

  • Due July 18, 2007, 5:00 p.m.
  • Please submit a report of any documented gift pledges for disclosure purposes in the notes to the financial statements. If your institution does not have any, please provide a N/A confirmation.

FS5. REVOLVING FUND REPORT (appears to apply only to OSU)

  • Due July 31, 2007, 5:00 p.m.
  • When necessary for efficiency, an institution may be authorized to establish revolving-fund checking accounts. Such accounts are operated on an imprest basis, which means that the exact amount of fund expenditures is replaced periodically.

    Furnish the following information for the total revolving fund. This includes any sub-funds of the revolving fund. Please notify the Controller's Division if you do not have revolving funds.
    1. Funds in banks (including State Treasurer):
      • The exact title of each bank account in which any part of the revolving fund is deposited. This is the title that appears on the bank statement.
      • The names of all banks and the branches where funds are on deposit, along with the total amount of revolving funds deposited. This includes departmental advances deposited in local banks.
      • The bank statement reconciliation at June 30, 2007, for each bank account. This includes a list of all outstanding checks. See FASOM section 13.03I for two year old outstanding checks.
    2. Advances to departments for petty cash:
      Advances should be supported by a list stating department name and the amount of the advance.
    3. Cashier's Funds:
      Cashier's funds include currency, stamps, un-deposited reimbursement checks, and NSF checks (includes the name of the maker or the last endorser, date of the check, and the amount).
    4. Un-reimbursed items:
      Provide a list of un-reimbursed items. The list includes the date, the name of the payee, item description, and the amount. Advances to staff members for travel and/or wages should be cleared and processed for reimbursement prior to 5:00 p.m. on June 30, 2007; therefore, items of this type would not normally appear on this list.
    5. Reconciliation:
      The Revolving Fund Account with the State Treasurer should be reconciled to a zero balance.
    6. The revolving fund is not intended to reflect deposits of moneys from outside sources which are not reported through the State Board of Higher Education official records.

FS6. Non-Expendable Property Received Through Gifts

  • Due July 20, 2007, 5:00 p.m.
  • Use Schedule FS.6
  1. Non-Expendable personal property and real property obtained by gift should be added to Banner Fixed Assets.

    A report showing gifts of real property made to the institution during the current fiscal year should be submitted to the institution's Property Control personnel for inclusion in the Fixed Assets System and Finance Ledgers. (This report is different than schedule FS.6 provided to the Controller's Division.) The report should include the name of the donor, legal description, the use to which the property is dedicated, and the estimated value segregated between buildings, land, and improvements other than buildings (IOTBs) infrastructure and land improvements. If the gift is recorded as an endowment or quasi-endowment asset, this must be clearly indicated in order to prevent duplication of capitalization.
    To record the personal property or real property gift in Banner:

    1. Create records for each asset in the Banner Fixed Asset System using the Master Maintenance form (FFAMAST) utilizing the Gift/Donation action.

    2. Capitalize the records using the Fixed Asset Adjustment form (FFAADJF) using the SCAP Ptag Capitalization function to post to the capitalization entries to the appropriate auxiliary enterprise, service department, or investment in plant funds.

    3. Recognize Gift revenue via Journal Voucher. - A Journal Voucher must be prepared to recognize revenue associated with the gift. Credit the appropriate 03xxx account code against the asset's capitalization fund/FOAPAL where depreciation will be charged and debit the same fund using account E1001.

  1. Gifts-in-kind consumed currently should be recorded as an expense and revenue via JV. See FASOM Section 01.22D(3) on the treatment of "Gifts In-Kind." If your institution does not have any, please provide a N/A confirmation.

FS7. Monographs, Serials, Periodicals, Films, Museum Collections, etc.

  • Due July 20, 2007, 5:00 p.m.
  1. The Annual Library Valuation Reports for the General and Special collections are to be copied and forwarded to the Controller's Division. The original is to be retained on permanent record at the institution. The Inter-Institutional Library Council issues the necessary detailed instructions to all librarians to accomplish the necessary tabulation. Nancy Slight-Gibney supports this data on the UO web site at http://libweb.uoregon.edu/bmis/. Institutions create a new asset record each year for the additions (including gifts) reported by their Library. Special Collections must be reported separately. The Fixed Asset Adjustment Form is used to adjust prior year Library assets for any disposals. The Banner Values must be reduced for any disposals. (See Fiscal Policy Manual Section 55.105, "Fixed Assets Library Accounting.")
  2. Audio-Visual Department assets are no longer adjusted for additions. Additions must have a new asset record (tag) created. Institutions use the Fixed Asset Adjustment Form to reduce any prior Audio-Visual assets for disposals. The Banner Values must be reduced for any disposals.
  3. The value of museum collections should be updated in Banner Fixed Assets. Institutions use the Fixed Asset Adjustment Form to change the capitalized cost and process an adjustment to the Investment in Plant. The Banner Values must be reduced manually for any disposals.

FS8. REAL PROPERTY RECORDS

  • Due July 27, 2007, 5:00 p.m.
  • Use Schedule FS.8
  • After recording the real property capitalizable expenditures for the year in Banner Fixed Assets and after reconciling Banner Fixed Assets to Banner FIS (by using the FWRNIPR report), prepare the reconciliation on Schedule FS.8.

    The purpose of the reconciliation is to ensure that Banner Fixed Assets includes all capitalizable real property expenditures. The reconciliation comprises (1) the change in the Banner FIS capital asset balances to (2) the year's real property capitalizable expenditures less real property disposals. If (1) and (2) do not balance, provide a listing of the reconciling items.

FS9. Stores Inventories

  1. A physical inventory is taken annually for all supplies carried in Organized Storerooms and Departmental Storerooms. Instructions pertaining to the physical inventory procedure are outlined in FASOM Section 08.04G & H.
  2. Organized Departmental Storerooms (DS) listed on Schedule FS.9 must report their June 30, 2007, physical inventory balances to be posted as materials and supplies in the General Ledger. Report the June 30, 2007, perpetual inventory balance if the physical inventory was taken and reconciled prior to June 30, 2007. Process a journal voucher to adjust the general ledger to the physical inventory. A reserved fund balance is not required for inventories.

FS10. UNIVERSITY FOUNDATION AUDITED FINANCIAL STATEMENTS

  • Due August 7, 2007, 5:00 p.m.
  • Submit a copy of the Foundation's financial statements, (may be un-audited) showing the dollar amount of the net worth of the institution's affiliated Foundation as of June 30, 2007. (A preliminary draft is acceptable since most audits will not be complete by August 7.)

  • Due September 24, 2007, 5:00 p.m.
  • This date is critical to meet State of Oregon reporting requirements. Submit a copy of the Foundation's audited financial statements or most current draft available at this date. If a draft is provided, diligent follow-up with the foundation is required until the final audited statements are provided to the Controller's Division. Please inform the Controller's Division as soon as it is known that this date may not be met by the foundation.

FS11. FUNDS HELD IN TRUST BY OTHERS

  • Due July 25, 2007, 5:00 p.m.

  • Please provide copies of statements as of June 30, 2007, that show the value of funds held in trust by others for which the university is an income beneficiary. If your institution does not have any, please provide a N/A confirmation.

FS12. CASH AND CASH EQUIVALENTS

  • Due July 27, 2007, 5:00 p.m.
  • Use Schedule FS.12 for Cash and Cash Equivalents
  • Provide the GL carrying amounts of cash and cash equivalents at June 30, 2007. This is required from the universities that prepare their own cash reconciliations.

FS13. OPERATING LEASE RECEIVABLES

  • Due August 7, 2007, 5:00 p.m.
  • Use Schedule FS.13.a for Operating Lease Receivable - Future Lease Rentals
  • Use Schedule FS.13.b for Operating Lease Receivable - Leased Asset Information
  • Use Schedule FS.13.c for Operating Lease between OUS Entities - Lessor Asset Information
  • See Fiscal Policy Manual 05.281, Accounting for Leases for more information relating to lease receivables.
  • Future Lease Rentals: In some instances, OUS is receiving income for land, property or equipment that is being leased to outside (non-state) entities. Please complete Schedule FS.13.a (revised this year) listing future lease rentals for all non-cancelable operating leases that your institution has where your institution is the lessor. Schedule FS.13.a is designed to have the current fiscal year rental income excluded from the total column on the right. It is followed by the next five years shown individually with five year aggregations thereafter which are included in the right total column. You are encouraged to use the schedule provided annually rather than cannibalizing the prior year schedule. To prepare this schedule properly, it cannot be carried forward by deleting the prior fiscal year from the schedule and leaving the other columns the same. The five individual years and five year aggregations must be recalculated each year.
  • Leased Asset Information: Please provide information on Schedule FS.13.b relating to land, property or equipment that your institution is leasing to outside entities. The information includes type of asset being leased, cost of leased assets, carrying amount of leased asset (if different from cost), accumulated depreciation on the leased asset and a description of the leasing arrangement. Remember to update the accumulated depreciation for current year activity.

  • Operating Leases between OUS Entities: Please provide information on Schedule FS.13.c if you are a lessor deriving revenue from a lessee who is an OUS entity. The information includes the name of the institution the asset is leased to, type of asset being leased, capitalized cost of the leased asset, carrying amount of the leased asset, accumulated depreciation on the leased asset, lease income recognized on the lease for the current fiscal year, and a description of the leasing arrangement. Do not include these leases on Schedule FS.13.a or FS.13.b.

FS14. CAPITAL ASSET IMPAIRMENTS AND INSURANCE RECOVERIES

  • To be completed by close of Period 14 on August 10, 2007, 5:00 p.m.
  • Refer to CB.14, Capital Asset Impairments and Insurance Recoveries.
  • During the fiscal year, were there any significant and unexpected declines in the service utility related to capital assets owned or leased (capital lease) by your university? Please prepare Schedule FS.14.a listing any assets impaired during the current fiscal year. Please send a "nil" report if there were no impairments at your university.
  • An insurance recovery may be associated with a capital asset impairment or it may be related to a recovery in the event of theft of a monetary asset. During the fiscal year, did your agency receive any insurance recoveries or accrue the recognition of any insurance recoveries? Please prepare Schedule FS.14.b listing any insurance recoveries recorded during the current fiscal year. Please send a "nil" report if there were no recoveries at your university.

 

EA. PREPARATION OF REQUESTS FROM THE EXTERNAL AUDITORS

EA1. Accounts Receivable Listings

  • Backup SIS TBRACCD table on calendar date June 30, 2007, 5:00 p.m., after all FY 2007 activity and application of payments have been performed.
  • Due before close of Period 14, July 25, 2007, 5:00 p.m.
  • Use Schedule EA.1 FOR SIS A/R ONLY
  1. SIS A/R: Submit an aged detail listing supporting SIS A/R balances in the June 30, 2007 General Ledger accounts. Aging categories should include: less than 1 year, 1-2 years, 2-3 years, 3-4 years, 4-5 years, and over 5 years. Include a reconciliation to the June 30 general ledger - by fund and account. (See Item CB.6.) Backup SIS TBRACCD table on calendar date June 30, 2007 and retain for audit purposes. Retain TBRACCD backup data for duration of 2006-2007 audit.
  • Due July 27, 2007, 5:00 p.m.
  1. Other A/R: Retain a copy of the detail and aging reports of each department's non-SIS accounts receivables. (Includes Service Department, Auxiliary Enterprise, and Designated Operations accounts receivables from entities that are external to OUS and the member institutions. Inter-institutional and internal accounts receivables should be recorded as Due to/Due from, not Other A/R.)
  2. Grant/Contract Receivable: All reimbursable costs incurred but uncollected on contracts and grants at June 30, 2007, are reported as accounts receivable for the Restricted Funds in accordance with FASOM 01.20.

EA2. ALLOWANCE FOR DOUBTFUL ACCOUNTS

  • Due August 21, 2007, 5:00 p.m.
  • Submit to the Controller's Division the methodology and calculation of the Allowance for Doubtful Accounts for Student Accounts. The auditors will use this to review the reasonability of the allowance.

EA3. DETAIL OF PERKINS LOANS NOTES RECEIVABLES

  • Due August 21, 2007, 5:00 p.m.
  • Submit to the Controller's Division the detail of the Perkins Loans Notes Receivables which has been reconciled to the GL. The auditors will use this as part of the verification of the existence of the receivables.

EA4. SCAN POST-CLOSING CHECK REGISTERS

  • Due August 21, 2007, 5:00 p.m.
  • Check registers created after the June 30, 2007 closing need to be scanned for checks larger than $250,000 to verify that the liability was recorded in the proper fiscal year end.

EA5. DETAIL LISTING OF STORES INVENTORIES

  • Due August 21, 2007, 5:00 p.m.
  • Please retain a listing in your business office of the stores inventories and organized departmental storerooms that comprise the university's totals in the GL. The auditors may use this listing as part of the verification of the existence of the stores inventories and organized departmental storerooms.
CI. OTHER COMPLIANCE ISSUES

CI1. TWO-YEAR OLD OUTSTANDING REVOLVING FUND CHECKS (OSU only)

  • Due July 11, 2007, 5:00 p.m.
  • Use Schedule CI.1

  • Outstanding revolving fund checks dated June 30, 2005, or earlier, of all institutional and departmental revolving funds should be listed on CO-117 (Schedule CI.1). The total amount of the two-year old outstanding checks will be transferred by the Controller's Division out of the revolving fund for remittance to the State Lands Division. (See also FASOM section 13.03J for further information).

CI2. Designated Operating Funds Report

  • Due July 31, 2007, 5:00 p.m.
  • Required for FY2007
  • Use Schedule CI.2.a for carry forwards
  • Use Schedule CI.2.b for fund balances
  • (This procedure is mandatory for years at the end of the biennium. June 2007 is the end of a biennium.)

  • Carry Forwards - A limited amount of fund balances may be carried forward from one year to the next for continuation of the program or for student scholarships. Fund balances carried forward may not exceed $25,000 or 20% of the annual revenue credited to the fund, whichever is greater. Please report fund balance carry forwards on Schedule CI.2.a.

    There may be an unusual case in which a designated operation has intentionally accrued a fund balance greater than $25,000 or 20% of revenues. A possible example would be saving funds to purchase capital assets needed for the designated operation. However, this would be an unusual case. The institutional Vice President for Finance and Administration, or designee, must approve these exceptions and documentation justifying the exception should be included when submitting Schedule CI.2.a.

  • Excess Fund Balances - Excess fund balances at year end and funds designated for departmental operating expenditures are transferred to the Education and General Fund and expended from a related Educational and General expense account if within the expenditure limitation, or to a Current Auxiliary Enterprise fund, if appropriate. Excess fund balances transferred to Education and General Funds (fund type 11) may be returned to the source designated operating fund if approved by the institutional Vice President for Finance and Administration, or designee, as well as the Vice Chancellor for Finance and Administration, or designee. Please attach the journal voucher(s) showing the transfer of "Excess Uncommitted Funds," if any, to the institution's General Fund operations, using a transfer code and summarize the activity on Schedule CI.2.b.

CI3. Abandoned Property in Agency Funds

  • Due August 14, 2007, 5:00 p.m.

Note: This does not apply to payroll agency funds

  1. Please provide a list of all abandoned agency or trust fund property over five years old at June 30. Please list the names and last known addresses of property owners. See FASOM Section 18.02 for administrative requirements.
  2. Also submit a journal voucher to transfer the balances to Chart K, Fund 001005, Account B0303 (Abandoned Property).

CI4. Account Reconciliations and Detail Lists

  • The Controller's Division does not require institutions to submit detail lists or account reconciliations except as specifically noted in this document. However, institutions have the obligation to generate supporting detail and account reconciliations for asset and liability accounts to support year end balances, in accordance with good accounting and reconciliation procedures to ensure adequate internal control.

CI5. CHECK STOCK CONTROL PROCEDURES

  • The following procedures were established as a result of an internal audit recommendation. We recognize that the monitoring of check stock control should take place more frequently than annually. The following closing of the books instruction is to provide a reminder to ensure that the monitoring and review of the check stock control procedures has been performed. In compliance with FASOM Section 10, Part 8, "Check Control," please perform the following procedures:
    1. Inventory the check stock and reconcile to control log.
    2. Store reconciliation records in compliance with retention standards.
    3. Confirm that the reconciliation was performed by a staff member who does not have physical access to the check stock or responsibility for check issuance.

CI6. Service Department Working Capital

  • Review definitions and working capital standards at OUS Fiscal Policy Manual Section 05.713 before preparing and submitting the following report.
  • CI.6

  • Institutions will prepare and submit for fund type 13 a report of compliance (Schedule CI.6) with this policy to the Controller's Division as a part of the annual closing of the books process. This report will include:
    • listing of all service center funds reconciled to the general ledger
    • computation of compliance with limits
    • notation of plans for eliminating excesses or deficiencies
    • notation of any exceptions to the policy
  • The Controller's Division will report any material concerns to the Board.

Last updated: 06/14/07

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