2016-17 PEOPLESOFT YEAR-END CLOSING … PEOPLESOFT YEAR-END CLOSING WORKSHOP ... Journal Line Reference: ... Object 9140 cash collected awaiting deposit is zero.

2016-17 PEOPLESOFT YEAR-END CLOSING

WORKSHOPDistrict Financial ServicesFinancial Accounting & ReportingMay 24, 2017

PeopleSoft Closing Workshop AgendaPowerPoint Presentation1. General Accounting

Information2. Closing Schedules3. Checklists4. Closing Entries &

Accruals5. Indirect Costs6. Accounting Updates

Demonstrations1. OPEB Accounting2. CAT Form

SECTION 1General Accounting information

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Business Advisory Consultants

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SECTION 2Closing Schedules

Important Dates- 16/17 Closing

June 27th by 2 p.m.All Deposits to Wells Fargo

June 29th by Noon1617 Commercial Warrants

June 29th by 10 a.m.Auditor’s Transfers to FA

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Important Dates- 16/17 Closing

July 10th by 5 p.m.Finalize all 1617 PO’sEnter goods received by June 30th

July 11thFinancial Accounting:Receipt AccrualPO Rollover

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Important Dates- 17/18 ProcessingJuly 1st

New FY activity beginsNo need to wait 3 days!

July 6thFirst day commercial warrants are issued forFY 17/18

July 17th

Period 12 closes at 5 p.m.

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Customer Resource Center (CRC )Training

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• Support Sessions for Year End Closing• Purchasing• Inventory• Finance• Open Labs

• CRC Website• http://crc.sdcoe.net/calendar/yearendclosing

SECTION 3Checklists

Closing Steps Before June 30th

Clear prior year accruals:Accounts receivable LiabilitiesDue-to (object 9610)/Due-from (object 9310)

- Must be repaid in same fiscal year or following fiscal year if transfer takes place within last 120 days of fiscal year

Clear Suspense through June

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Payroll Adjustments

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NEW Journal Source “PAJ”Recommended steps

1. Download & save PEDR each month2. Filter for adjustments

a. Suspenseb. Funding changesc. Year-end adjustments (ie. EPA)

3. Enter PAJ journala. Journal Header Description: justification for payroll adjustmentb. Journal Line Description: Employee namec. Journal Line Reference: Employee ID

4. Print & file for auditors along with print-out of applicable PEDR lines

Payroll Adjustments- continued

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Interfund Payroll Adjustments (transfers that cross funds)Recommended steps

1. Download & save PEDR each month2. Filter for adjustments

a. Suspenseb. Funding changesc. Year-end adjustments (ie. EPA)

3. Enter PAJ journala. Journal Header Description: justification for payroll adjustmentb. Journal Line Description: Employee namec. Journal Line Reference: Employee IDd. Offset: Due to/ Due from other funds (9310 & 9610)

4. Enter AT journal to clear DTF entries5. Print & file for auditors along with print-out of applicable PEDR lines

Closing Steps Before June 30th Continued

InventoryConduct physical countAdjust G/L to match Actual InventoryFor stores inventory, see CRC Training Guide “IN2 Inventory Count & Reconciliation”http://crc.sdcoe.net/resources/peoplesoft/guides

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Closing ChecklistPosted on the Financial Accounting website under “Quick Links”http://www.sdcoe.net/business-services/financial-services/financial-accounting/Pages/financial-accounting.aspxRun FAR queries, and check by fund/resource:

Suspense objects (7999XXX & 8999XXX) are zeroContributions (8980s & 8990s) net to zero by fundSuspense resource 9999 is zero(Pre) Encumbrances are zero50% of objects 8081-8082 have been transferred to 8691

Debit(+) 8089 Credit(-) 8691

Object 9140 cash collected awaiting deposit is zeroAll Prior year accruals are zeroObject 9910s payroll holding accounts is zero

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Closing Checklist (continued)Run FAR queries, and check by fund/resource:

Asset accounts have debit balancesObjects 9100 – 9399

Liabilities have credit balancesObjects 9500 – 9699

Verify expenditures in resource 8150 meet requirementsFor 2016-17Lesser of:

a) 3% of 16/17 total general fund expenditures (GFE) (E.C. 17070.75)b) FY 14/15 contribution to resource 8150

For 2017-18 through 2019-20Greater of:

a) Lesser of 14/15 amount or 3% of total GFEb) 2% of total GFE

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Closing Checklist (continued)SACS Technical checks are “passed”

Review explanations with your district’s Consultant or Financial Accounting

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SECTION 4Closing Entries & Accruals

State Aid Accruals

1. Clear PY Accruals: LCFFFebruary – June

Financial Accounting posts PY recomputations & adjustments to suspenseClear to PY accrual (A/R 9290 or A/P 9590)Difference goes to object 8019

2. EPAPY Adjustment posted to suspense in March

AT A004530 3/24/17Clear to object 8019Don’t forget to post the EPA Expenditure report on your district website

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LCFF Accrual- ReceivableYear-end Calculation:

Receivable from the State:Res Goal Func Obj DR CR

Due from Grantor Governments0100 0000 0000 9290 $3,000

LCFF 0100 0000 0000 8011 $3,000

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Projection Actuals lowerLCFF Apportionment:

P-2 Property Taxes 50,000$ 48,000$ Current Year EPA 25,000 24,000 State Aid 25,000 25,000

Total 100,000$ 97,000$ LCFF Calculator amount 100,000$ Receivable due from State 3,000$

LCFF Accrual- LiabilityYear-end Calculation:

Liability due to the State:Res Goal Func Obj DR CR

LCFF 0100 0000 0000 8011 $8,000Due to Grantor Government

0100 0000 0000 9590 $8,000

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Projection Actuals lowerLCFF Apportionment:

P-2 Property Taxes 50,000$ 55,000$ Current Year EPA 25,000 28,000 State Aid 25,000 25,000

Total 100,000$ 108,000$ LCFF Calculator amount 100,000$ Receivable due from State (8,000)$

Accrual Journal Entries in PeopleSoft

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Reversing Journal Entries in PeopleSoft

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Payroll Accruals

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• Districts will enter payroll data in July• Any FY 1617 time MUST be entered with a combo code (ie.

June hourly, overtime, adjustments, VPO, etc.)• July payroll runs• All time worked prior to July will be posted to June as an

accrual• This entry will automatically reverse in July• The accrual reversal entry will clear the expenses in July and

move them to 9510000

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STRS, PERS, SUI Accruals

FIS Process

• STRS, PERS, & SUI AT’s are posted to suspense in July

• District accrues amounts in June Debit 9910Credit 9510

• District clears suspense to accrualDebit 9511Credit 7999

PeopleSoft Process

• STRS, PERS, & SUI AT’s are part of post cash process“No-Post” AT’sNo suspense for the district to clear

• District accrues amounts in June as a reversing entryDebit 9910Credit 9510

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Liability Accruals

FIS Process

• Accrue to object 9510• Beginning Balances roll to

9511• Pay liabilities out of 9511• Clear remaining liabilities

out of 9511

PeopleSoft Process

• Accrue to object 9510• Beginning Balances roll to

9510• District options:

1. Pay liabilities out of 95102. DO journal to reclass Beg Bal

to 9511 & pay out of 95113. Reversing journal entries

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Receipt Accrual & PO Rollover

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PURPOSE: To accrue the liability for items received by June 30th and roll PO’s from 1617 to 1718By July 10th at 5 p.m.

1. Enter receipts with June date 2. Close all PO’s that should not roll to 1718 3. Final 1617 weekly PO close process runs July 10th

On July 11th, Financial Accounting will run two processes:1. Receipt Accrual 2. PO Rollover

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Receipt Accrual & PO Rollover• Receipt Accrual

• Opt-out option – please email Financial Accounting by Friday June 23rd

with request to opt-out

• PO Rollover• NO opt-out option

• CRC Finance Year End Closing Guides

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Liability Accruals- Receipt Accrual

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• Important Notes:Applies to districts with “receiving required” Purchase OrdersApplies to PO’s with line items (physical goods to be received)Applies to items physically received by June 30, but not paid by June 30

• For all items received at a district location by June 30th, enter receipts in PS with June date (ie. 06/30/2017)Must be completed by July 10th at 5 p.m.

• Financial Accounting will run the Receipt Accrual process on July 11th and e-mail report to districts with results

Liability Accruals- Receipt Accrual

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Liability Accruals- Receipt Accrual

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Liability Accruals- PO Rollover

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• Important Notes:Applies to PO’s in Approved or Dispatched status

• Process identifies all PO’s ready to roll• Closes encumbrances in PY• Closes PO’s in PY• Opens encumbrances in CY

Requires valid budget (chartstring) to be set up in new fiscal year

• Opens PO’s in CYPayments can now be applied in new fiscal year

Liability Accruals- PO Rollover

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Requisitions & POs for 1718• Option to input REQs & POs for 17-18 in 16-17 fiscal year

• See CRC “PS Finance Year End Closing Guide v4.4” page 30 for requirements

• Email SDCOE Financial Accounting to open period

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Chartfield Configuration

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SECTION 5Indirect Costs

Indirect Costs

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• Definition: General management costs consist of administrative activities necessary for the general operation of the agency, such as accounting, budgeting, payroll preparation, personnel services, purchasing, and centralized data processing

• Indirect Cost Rate (ICR): percentage of an organization’s indirect costs to its direct costs and is a standardized method of charging individual programs for their share of indirect costs

• Purpose: standardized, efficient way to recover a share of general management costs from individual (restricted) programs

Indirect Costs

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• Approved rates are posted on the CDE web site:• http://www.cde.ca.gov/fg/ac/ic

• Must use the lesser of the CDE approved rate or a grant stated max each year

• Food Service programs: use the lesser of the districts’ approved rate or the statewide average rate of 4.92% for FY 2016/17

• 7310 must net to zero by function & object at the fund level

• 7350 must net to zero by function & object between funds

Indirect Costs

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Total Exp.1000-5999 10,500$ Less Obj 5100 (500) Adj Exp. 10,000$ ICR 6%Indirect Cost 600$

Title I

Sample entry0100-3010000-1110-7210-7310 600$ 0100-0000000-0000-7210-7310 600$

Indirect Costs

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Total Exp.1000-5999 10,500$ Less: Obj 5100 (500) Adj Exp. 10,000$ ICR 4.92%Indirect Costs 492$

Food Services

Sample Entry:1300-5310000-0000-7210-7350 492$ 0100-0000000-0000-7210-7350 492$

SECTION 6Accounting Updates

Donated Food Commodities• Object 8221, Donated Food Commodities• Record fair market value of donated food commodities in the

period when all eligibility requirement are met (typically at the time of donation).

• Use required beginning 2016-17 (was optional in 2015-16)

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Prop 39 Energy Fund

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• Resource 6230: California Clean Energy Jobs Act• Funding based on approved expenditure plan

• Districts have been encouraged to complete construction, some times ahead of receipt of funds

• Funding has not been appropriated in the State budget beyond the current year• Does not qualify as Accounts Receivable

• CDE recommends leaving the resource with a negative ending balance at FYE if district has expenditures, but not revenue• Contributions are considered one-way transfer of funds, so this is also

not a recommended solution

E-Rate Accounting

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• New guidance in 2016 edition of CSAM• See Procedure 560 & November 2015 SACS Forum meeting

minutes for further information• LEA’s should now report costs of telecommunications goods &

services at gross• E-Rate subsidy is local revenue

• Fund 01, Unrestricted Resource, Object 8699

• Federal Programs exception• Only NET expenditure should be charged to the Federal resource• Remaining expenditure and corresponding E-Rate subsidy should be

recorded in General Fund unrestricted

STRS On-Behalf Contributions

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• STRS On-Behalf Journal Entry - Resource 7690• Required entry in the District’s books before closing• CDE created Excel template to create journal entry – New Financial

Reporting Requirements for Pensions (Dated 02-Jul-2015)• http://www.cde.ca.gov/fg/ac/co/

• 1617 STRS on-behalf rate: Two Methods of Calculating Rate• http://www.calstrs.com/general-information/gasb-67-68-frequently-

asked-questions

STRS On-Behalf Contributions Calculation Utilizing CalSTRS CAFR June 30, 2016

• CalSTRS Comprehensive Annual Financial Report for Fiscal Year Ended June 30, 2016• http://www.calstrs.com/sites/main/files/file-attachments/cafr2016.pdf

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STRS On-Behalf Contributions Calculation Utilizing CalSTRS CAFR June 30, 2016

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Benefits Funding Component2.017000% Base Rate4.31100% EC 22955.1(b)(1)(c)

6.328000%

31,910,000,000

797,750,000 EC 22954 (b) 2.5% of creditable compensation(72,000,000) EC 22954 (c) Less: $72M725,750,000 Total State Contributions for SBMA

2.274365% State Contribution for SBMA as % of total creditable compensation

8.602365% Total STRS On-Behalf Rate for 2016-17

8.578248% CDE's preliminary 2016-17 STRS on-behalf rate0.024117% Variance

Total Creditable Compensation (Schedule of Contributions From Employers and Nonemployer Contributing Entity [Schedule III] - CAFR June 30, 2016 page 82

2016-17 STRS On-Behalf Calculation

Supplemental Benefit Maintenance Account

Component

STRS On-Behalf Contributions Calculation Utilizing CalSTRS CAFR June 30, 2016

Benefits Funding Component2.017000% Base Rate

4.81100% EC 22955.1(b)(2)6.828000%

31,910,000,000

797,750,000 EC 22954 (b) 2.5% of creditable compensation(72,000,000) EC 22954 (c) Less: $72M725,750,000

2.274365% State Contribution for SBMA as % of total creditable compensation

9.102365% ESTIMATED STRS On-Behalf Rate for 2017-18

Total Creditable Compensation (Schedule of Contributions From Employers and Nonemployer Contributing Entity [Schedule III] - CAFR June 30, 2016 page 82

ESTIMATED 2017-18 STRS On-Behalf Calculation

Supplemental Benefit Maintenance Account

Component

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STRS On-Behalf Contributions Calculation Utilizing CalSTRS CAFR June 30, 2016

• Mock Calculation

• Find the STRS reports on SDCOE’s Retirement Reporting website: http://www.sdcoe.net/business-services/financial-services/retirement-reporting/Pages/retirement-reporting.aspx

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15,000,000 District's creditable compensation (PERS/STRS Year-to-Date Summary)8.602365% STRS On-Behalf Rate per June 30, 2016 CAFR Information1,290,355 District's On-Behalf Contributions

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OPEB

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http://www.sdcoe.net/business-services/Pages/psexcel.aspx

CAT Form

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http://www.sdcoe.net/business-services/financial-services/financial-reporting/Pages/Forms-and-Documents.aspx