Auxiliary Financial Statement Training Session

Auxiliary Financial StatementTraining Session

For Fiscal Year 2010-2011Presented by:Finance and AccountingGeneral Accounting

Agenda

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Agenda Discuss the detailed steps required for preparing

and submitting financial statements for auxiliaries, including:

The accrual information – Adjusting Entries nVision Reports Adjusted Trial Balance Notes to SNA and SRECNA

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Reporting Criteria Only auxiliaries with annual revenues greater

than one million dollars are required to submit quarterly and annual (year-end) financial statements to General Accounting.

Auxiliary Financial Statements vs. UF Fund Level Financial Statements

UF Fund Level Financial Statements consolidate an entire fund:

Does not include assets (Funds 801-802) Accruals related to ID Sales are not

recorded Inventory and Compensated Absences are

often posted in a generic DeptID Substantial supporting documentation is

required5

Auxiliary Financial Statements vs. UF Fund Level Financial StatementsAuxiliary Financial Statements: Auxiliary

considered as a self-standing entity Includes assets Accruals related to ID Sales are recorded Inventory and Compensated Absences are

posted in specific auxiliary DeptID Use as reference for preparation of UF

Fund Level Financial Statements and for Auxiliary Enterprise Committee meeting

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Preparing Financial Statements:Process Overview

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Process Overview

Collect accrual information Prepare adjusting entries Submit adjusting journals to General Accounting Run nVision and copy report in the workbook Run Trial Balance query and format TB Provide details for the Accounts Receivable and

Accounts Payable Explain any significant variations on the SNA and

SRECNA in comparison to prior period.

PROCESS→ Adjusting Entries - Accruals

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Adjusting Entries – Journal template All adjusting entries must be prepared on a journal

template using PeopleSoft chartfield values to be posted to the adjustment ledger.

Note: The journal template has been changed following MyUFL upgrade.

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Adjusting Entries – Debits and Credits

Account Type

To Increase To Decrease

Asset Debit (+) Credit (-)

Liability Credit (-) Debit (+)

Revenue Credit (-) Debit (+)

Expense Debit (+) Credit (-)

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Possible Adjusting EntriesDebit (+) Credit (-)

Accrued Accounts Receivable 132200 440400/440500

Accrued Accounts Payable

719300/729200/731100742200/799900

211000

Deferred Revenue 440500 263000

Prepaid Expense 170000719300/729200/731100

742200/799900

Accrued Interest 134100 521000

Inventory 151000 /152000 731100

Compensated Absences Liability 699000 291000

Allowance for Doubtful Accounts 870000 139100

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Adjusting Entries

All adjusting entries can be posted to one single department ID in your auxiliary range.

All adjusting entries will be automatically reversed on the first day of the following period except the Compensated Absences Liability and the year-end Capital Assets reconciliation.

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Adjusting EntriesCompensated Absences Liability

Note: Please refer to separate instructions on how to retrieve the report.

The entire amount of the liability must be adjusted since the prior year amount will be reversed by General Accounting. This adjustment is only required at year end and the same balance will be carried over until next fiscal year.

Enter on a separate journal. The entry will not be reversed as of 07/01/2011.

$190,000.00

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Adjusting Entries - Capital Asset Reconciliation

Complete the Capital Assets tab in the workbook (yellow highlighted cells):

CAPITAL ASSETS            

   Ending Capital Assets on YE 2010 FS 217,795.39 (+) Capital Assets Expenses 2011 - 78xxxxx Balances 6,335.94 (-) Accrued AP 2010  (+) Accrued AP 2011  Total Capital Assets per Financial Statements     224,131.33       Capital Assets per Depreciation Report     222,000.00    Variance to adjust to account 183000/541100     (2,131.33)             

ACCUMULATED DEPRECIATION ( all negative figures)    

   Accumulated Depreciation on YE 2010 FS (159,293.33)(-) Depreciation Expenses FY 2011 per Depreciation Report (6,500.00)Total Depreciation per financial statements     (165,793.33)      Accumulated Depreciation per Depreciation Report   (163,000.00)   Variance to adjust to 193000/541100     2,793.33              

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Adjusting Entries - Capital Asset Reconciliation The tab includes a journal template that will

be automatically populated:

Keep the Capital Assets reconciliation entries on a separate journal.

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Adjusting Entries - Capital Asset Reconciliation

After adjustment for capital assets all 78xxxx accounts on the Adjusted Balance column should be zero except for Depreciation Expense:

The entry will not be reversed as of 07/01/2011.

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Adjusting Entries – Journal Mask

Use the appropriate journal mask (3 letters) followed by AJ, year, month and 1 thru 9:

JRUAJ11061JRUAJ11062

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Adjusting Entries – Posting

Submit your journal templates to [email protected]

General Accounting will post them and notify you.

Once all your adjusting entries are posted, you can run the nVision report.

PROCESS→ nVision Report

nVision Report In MyUFL ,navigate to People Soft

and Financials PeopleTools.

In the new window, navigate to Reporting Tools / PS/nVision / Define Report Request.

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nVision Report On the Report Request page,

search for report ID AUX_REP

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On the nVision Report Request page, select the appropriate date: 06/30/2011 for year-end.

Click on Scope and Delivery Templates.

nVision Report Search for Report Scope

starting with AUX.

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Each auxiliary has its own scope.

Select the appropriate scope and click OK to return to prior page.

nVision Report Click Run Report on

the nVision Report Request page.

Click OK on the Process Scheduler page.

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nVision Report Click Process

Monitor on the nVision Report Request page.

On Process Request page, click refresh to update the status

Wait for Success and Posted

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nVision Report Navigate to

Report Manager either through the nVision Report Request page or the top menu.

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On the Report Manager page click on Administration tab and retrieve the report.

nVision Report – Copy to workbook

Copy the SNA and the SRECNA for both yearsTo do so:

Copy separately each of the 4 blocks: SNA current and prior period, SRECNA current and prior period.

Paste each in the appropriate area of the workbook (SNA&SRECNA tab) using paste special value

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PROCESS→ Trial Balance – ACTUALS + UF_AUX_ADJ

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Trial Balance – ACTUAL and UF_AUX_ADJ

Run trial balance query: UF_AUX_TB_FS with the appropriate prompts:

Download in Excel:

Note: The same query is used to pull the balances from both ledgers.

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Trial Balance – ACTUAL and UF_AUX_ADJ

Save the file.

Format using Excel pivot table tool.

Remove any subtotals from the Pivot Table.

1 3

2

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Trial Balance – ACTUAL and UF_AUX_ADJ Copy the entire pivot table (excluding the headers) in

the workbook under tab - Adjusted Trial Balance:

Pivot Table

Workbook

PROCESS→ Accounts Receivable Detail

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Accounts Receivable

Accrued accounts receivable should be categorized between interdepartmental sales (ID Sales) & Non UF Sales, then by age.

Provide the status of any receivables over 120 days.

Accounts Receivable

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PROCESS→ Accounts Payables Detail

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Reconciliation – Recap of Accrued AP

Accrued accounts payable should be listed by vendors and categorized by age.

Provide the status of any payables over 60 days.

Accrued Accounts Payable

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Accrued Accounts Payable

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If no record is available the following query can be used:FR_VOUCHER_LOOKUP2

PROCESS→ Notes to SNA and SRECNA

Notes to SNA and SRECNA

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Provide a brief explanation for any significant variations on the SNA and SRECNA in comparison to prior period.

Pay special attention to the following lines: Cash & Investments, Accounts Receivable, Operating Revenues, Employee Compensation and Benefits and Services & Supplies.

Available Queries

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Available Queries UF_AUX_TB_FS

Trial Balance for ACTUALS and UF_AUX_ADJ ledger UF_GL_TB_BY_FUND_DEPT_AUX_QRY

Trial Balance for ACTUALS ledger UF_GL_JOURNAL_DETAIL_QUERY2

Provides the entries making up the ACTUALS Trial Balance

UF_AUX_ADJ_JRNL_DETAIL Provides the entries making up the UF_AUX_ADJ Trial

Balance FIT Cube

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Financial Statement Due Date

August 5, 2011

Submit your completed workbook to

[email protected] no later than:

Any Questions?

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ContactsWe are happy to assist you!

Patrice Lecomte [email protected] 392-1326 ext. 303

Jennifer Lu [email protected] 392-1326 ext. 403

Sheela Moudgil [email protected] 392-1326 ext. 410