Fiscal Year 2018-2019 Year-End Closing Schedule and Guidance

In order to finalize the annual financial report, we are providing the following year-end closing schedule and guidance.

Please review this memo in conjunction with the May 15 year-end email from Procurement,  the May 20 year-end email from Payroll, and any communications issued from Grant and Contract Accounting (GCA) regarding Sponsored Projects.

YEAR-END CLOSING SCHEDULE

Please note: Your Chancellor’s Office or Central Business offices may direct you to have earlier deadlines to conduct internal reviews before the deadlines outlined below. Be sure to consult with your respective office.

Date Topic Action
July 2019    
Tuesday, July 9 Cash Receipt Journals Cash journals prepared and submitted to Cashier’s Office for approval in the June FY19 period.
Tuesday, July 16 Cash Receipt Journals Cashier’s Office to have all FY19 Cash Journals approved.
Friday, July 19 Accounts Payable Accounts Payable application will close for FY19.
August 2019    
Friday, August 2
12:00 noon
Final Day for Units to Enter Transactions Final day to prepare general ledger and Project entries for the June FY19 period. Units/Schools deficits must be cleared by this date.
Monday, August 5 through Friday, August 9            12:00 noon Controller’s Office and Chancellor Office Accounting Entries Controller’s Office to work on final close out entries in the Project sub-ledger and general ledger in the June FY19 period.  Chancellor’s Offices may also have entries to record in the June FY19 period.
Monday, August 12 Reports Schools/Units can run reports on final FY19 activity/balances.
Monday, August 12 until the end of the financial statement audit JUN-ADJ Period Opens University Controller’s Office will record adjusting entries for financial statement purposes to the June Adjusted 2019 period.  Please note that during this period, entries may be recorded to your unit’s U-D-O as appropriate when recording entries such as invoice accruals as we continue the search for unrecorded liabilities through the end of the audit.

* Dates are subject to change.

OTHER YEAR-END GUIDANCE

NON-SPONSORED PROJECTS

Units should ensure that all non-sponsored projects, including designated, gifts, endowment operating, and capital have positive balances and all deficits are cleared.

CASH JOURNALS

Cash journals, to be reflected in the June FY19 period, should be prepared and submitted by Tuesday, July 9, 2019. This will permit time for the Cashier’s Office to review and approve these journals by Tuesday, July 16, 2019.

PAYROLL

The last salary payroll of the year will be on Friday, June 28, 2019. Accordingly, there will not be a salary payroll accrual at the fiscal year end.  Central Accounting will be preparing a manual journal entry to accrue for hourly payroll through Friday, June 28.  Please refer to the Payroll communication on May 20 for important dates related to Employee Charging Instructions (ECI).

INVOICE ACCRUALS

The Controller’s Office will record Accounts Payable invoice accruals in the June FY19 period after the Accounts Payable ledger is closed which will be approximately on Friday, July 19.  Departments should not record invoice accruals without contacting the Controller’s Office and providing supporting documentation. We will ensure that the invoice has not been accrued and will record the entry on the unit’s/school’s behalf for any invoice $25,000 and greater.  Departments will be responsible for recording invoice accruals which are less than $25,000.

REVENUE ACCRUALS

Please remember that any revenue related to FY19, but not received in FY19, should be accrued for appropriately with the recording of a receivable and revenue as the university reports its financials on an accrual basis of accounting as opposed to a cash basis.  The Controller’s Office should review all supporting documentation attached to the general ledger journal entry for any revenue accruals that are booked.  Therefore, revenue accruals will need to have a secondary approval from the Controller’s Office. 

Units should use the general ledger journal entry ‘categories’, entitled “RU Accrual/Deferral”, and “RU PGM Revenue Accrual” to be able to create year end (JUN-19) journal accruals and/or deferrals that will automatically reverse in the JUL-19 period.  These new categories, when used with a date of 6/30/19, will require two levels of approval. The first level will be the preparer’s finance approver and the second level of approval will be in the University Controller’s Office. The second level of approval is only required during the year end close. Please attach appropriate backup to these journals so the first and second level approvers can evaluate the appropriateness and understand the implications of the entries.

The “RU Accrual/Deferral” category is used when creating an accrual journal for departmental general ledger accounts. “RU PGM Revenue Accrual” category is used for Non-Sponsored projects. 

PROJECT TO GL COST TRANSACTIONS

For year-end (JUN-19) project cost accruals, follow the job aid for Project to GL cost transactions with the following exceptions:

In the header section of the journal, select Yes in the Accrual Batch field. The Non Labor Expenditure Batch spreadsheet does not have a category field, therefore, by selecting “Yes” in the Accrual Batch field, the system recognizes the journal as a cost accrual.
In the journal line section of the journal, use the date of 6/30/19 in the Expenditure Item Date.

For year-end (JUN-19) revenue accruals, follow the job aid for Project to GL revenue transactions with the following exceptions:

Change the journal category to RU PGM Revenue Accrual.
Ensure the contract number, project number and task number are entered in the Account Details region.

ACCRUING RECEIVABLES OR PAYABLES

If you are accruing a receivable or a payable, please use your U-D-O-L with the same fund type as the revenue or expense and a business line of 9999.  When accruing a receivable, please use, A/R Miscellaneous #12845.  When accruing a payable, please use Accounts Payable Year End #20306, unless you find a more appropriate value to use.  Additional guidance on accruals/deferrals can be obtained from the following job aid on the Controller’s website.

INVOICE ACCRUALS

Central Accounting will be recording invoice accruals manually for invoices dated after July 1 for invoices related to FY2019 goods and services that are $25,000 and greater.  For sponsored projects, the accrual will be recorded in the general ledger but not to the project.  All other non-sponsored invoice accruals will be to the project if applicable.  If you have an invoice related to FY2019 that should be accrued which was not, then please contact finance_helpcenter@finance.rutgers.edu.

FINANCIAL REPORTS

In order to assist users with running appropriate financial reports, the Controller’s Office has compiled a list of the most frequently used reports called the “Go-To Reports”. The reports in this list are grouped by subject areas, such as GL, Sponsored Projects, Procure-to-Pay, etc., along with brief description and associated job aids (e.g. user guides, step-by-step instructions) as applicable.

In addition, specifically to help users with year-end activities, the Financial Information Systems team has created the following resources:

a) Video: Account Analysis Report (RU GL 089) – This report provides detailed GL transactions, including relevant sub-ledger information, such as project#, task, PO#, revenue source, etc. for reconciling sub-ledger transactions to the GL.
b) Video: Scheduling a BI Publisher report (e.g. Project cost detail report – RU PJ 073) – This video outlines the reasons why scheduling a report would be beneficial and also walks the user through the process of scheduling a sample BI publisher report and email the report output.

Please visit the Reports and Procedures section of the controller’s website for additional information about other reports, job aids, procedures, communications, etc.

It is important to communicate the dates and information in this memo to the appropriate members of your staff.  Please ensure your staff is closely reviewing their Financial Reporting Studio and project queries in detail to record their correcting entries sooner than later during the closing process.

Thank you for your partnership as we prepare for a successful fiscal year-end close.

Regards,

 

Ernie DiSandro

Interim University Controller