Auxiliary Financial Statement Training Session For Year End 2012 Presented by: Finance and Accounting…

Auxiliary Financial StatementTraining Session

For Year End 2012Presented 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

Discuss the information requested for quarters 1 through 3

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Reporting Requirement Auxiliaries with annual revenues greater than

one million dollars are required to submit annual (year-end) financial statements only: www.fa.ufl.edu/directives-and-procedures/auxiliaryeducational-business-accounting/#financial

Each quarter the same auxiliaries must provide the detail of the outstanding accounts receivable and accounts payable.

Auxiliary Financial Statements and UF Financial Statements Auxiliaries having their own fund will not

prepare Fund Level statements for FY12. The accrual information provided within

auxiliary financial statements will still be included by General Accounting/Financial Reporting in the preparation of the University financial statements.

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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 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 on the adjustment ledger.

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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

Note: Adjusting entries should not include or generate any cash lines.

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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

Note1: Please refer to separate instructions on how to retrieve the report.

The entire amount of the liability must been adjusted since the prior year amount has be reversed by General Accounting. Enter on a separate journal.

The entry will be reversed only in June 2013.

$115,000.00

Note 2: Numbers reported in this presentation are for training purpose only and do not necessarily represent accurately the financial position of University Press of Florida.

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Adjusting Entries - Capital Asset Reconciliation Complete the

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

Refer to your Q1 Financial Statements for the beginning Capital Assets and Accumulated Depreciation after adjustment for new capitalization threshold.

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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 07/01/2012.

ACCOUNT FINANCIAL STATEMENT CODE ACTUALS BALANCE UF_AUX_ADJ BALANCE ADJUSTED BALANCE 781100 Other Operating Expenses 19,503.00 (19,503.00) 0.00 788000 Depreciation 7,500.00 7,500.00 TOTAL   19,503.00 (12,003.00) 7,500.00

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Adjusting Entries – Journal Mask

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

UPFAJ12061UPFAJ12062

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Adjusting Entries – Posting

Submit your journal templates to [email protected]

Please submit your adjusting entries at least two days prior to the August 3rd deadline.

General Accounting will post them and notify you.

Once all your adjusting entries are posted, you can run the nVision report and the final adjusted trial balance.

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: 06/30/2012 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 Actuals and UF_AUX_ADJ 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 using paste special value:

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_AP_QTR_ACCRUAL

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 3, 2012

Submit your completed workbook to

[email protected] no later than:

Please submit your adjusting entries at least two days prior to

the deadline.

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Quarterly Information - Accounts Receivable and Accounts Payable

Auxiliaries with annual revenues greater than one million dollars are required to report the accounts receivable and accounts payable at the end of each quarter.

This information is included in the quarterly report to the Board of Trustees and it is also reported to the Auxiliary Enterprise Committee.

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Quarterly Information – Variance Analysis Report

General Accounting will send a variance analysis report at the end of the second and the third quarter

This report is on a cash basis and groups GL accounts in just a few broad categories.

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Quarterly Information – Variance Analysis Report

Provide a brief explanation for any significant variations

Any Questions?

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ContactsWe are happy to assist you!

Patrice Lecomte [email protected] 294-7256

Jiachun Zhan [email protected] 294-7258

Sheela Moudgil [email protected] 294-7255