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Fiscal Year-end Closing Procedures

It is important to ensure that all financial activity for the year is accurately recorded in your accounts prior to closing the accounts. Refer to the following sections for specific year-end requirements. In particular, please refer to AMS System Availability during the week prior to system close.

Year-end Processing

Data Management Activities

Year-end Reporting Deadlines and Training


General Contacts

Summary of Year-end Deadlines and Contact Information

Year-end Processing

Income and Expense Recoveries

Where a department or division has rendered a service or delivered a product in the year, the income or expense recovery should be recorded by:

  • preparing and sending invoices to your external customers. Invoices should be submitted for processing by the Accounts Receivable Invoice deadline to Accounts Receivable, 215 Huron Street, 2nd Floor
  • depositing all cash received for cash sales and recoveries directly to the bank or to the Cashier’s Office by the Cashier/Bank Deposit deadline.
  • preparing and processing journal entries to record your internal income and expense recoveries by the journal entry deadline .

Expenses

Where a division/department has received goods or services prior to April 30, the expense should be recorded by:

Accruals

An accrual is a means of recording an expense before actually processing the supplier’s invoice and is intended to ensure that all significant expenses for the year are recorded. Accruals are not intended to achieve precise accuracy.

Where a department has incurred an expense (i.e. service or goods, with no PO recorded in FIS) but has not yet received an invoice, an accrued expense must be recorded in your accounts. In order to have the accruals recorded in your accounts, please submit a signed journal entry to Lou Ranalli, Financial Services Department no later than the year-end accrual/deferral deadline . The journal entry would include the accounts to be charged, including a brief description of the expenses being accrued, leaving the credit side of the journal entry blank. The back-up documentation does not have to be submitted with the journal entry; however, it must be supplied upon request.

Deferrals

A deferral is a means of delaying the recording of an expense or revenue to a future year. A deferral would need to occur when an expense has already been recorded in FIS in the current fiscal year but all or part of that expenditure should be recorded as an expense in the next fiscal year, or when revenue has been recorded in FIS but has not yet been earned.

When a department has recorded an expense in FIS but has not yet received part or all the service by April 30, a deferral of expenses must be recorded in your accounts. An example would be a lease payment that extends into the new fiscal year.

Where a department has recorded revenue but has not yet performed the service or delivered the goods, a deferral of the revenue must be recorded in your accounts.

In each of these cases, a journal entry is required to be processed within FIS. In order to have the deferral recorded in your accounts, please submit a signed journal entry to Lou Ranalli, Financial Services Department no later than the year-end accrual/deferral deadline . The journal entry would include the accounts to be charged, including a brief description of the expense/revenue being deferred, leaving the respective debit side/credit side of the journal entry blank. The back-up documentation does not have to be submitted with the journal entry; however, it must be supplied upon request. This journal entry is intended to properly reflect all significant revenue and expenses within FIS.

Prebillings

As a general rule, invoices for services which you will provide in the next fiscal year should not be processed in the current fiscal year. However, where it is necessary to prebill, it is important to highlight this on the accounting copy of the invoice which is sent to the Financial Services Department. These invoices will be recorded in a deferred income account and transferred to your income or expense recovery accounts at the beginning of the new fiscal year.

Note:
Internal revenue/expense recovery entries for services to be provided in the next fiscal year
should NOT be processed in the current fiscal year.

Existing Purchase Orders and Commitments

To ensure the year-end statement of accounts reflect the correct Purchase Order reserve, you should submit to Procurement Services any cancellations or adjustments by the recommended timelines provided by Procurement Services .

Please note that a large number of new Purchase Requisitions are also submitted for processing during this period. Please submit any Purchase Order change requests immediately, and no later than end of day Thursday, April 13, 2017.

You can obtain a list of outstanding Purchase Orders by running the Display a List of POs with Outstanding GR or IR.

All Purchase Orders and reserve commitments are carried forward into the next fiscal year irrespective of whether they reside in a Fund Centre or Fund account.

For Fund accounts (namely Research) with end dates earlier than May 1 of the next fiscal year, it is important that all Purchase Orders and reserve commitments be finalized prior to the fund end date. The SAP system will not permit these items to be carried forward and, therefore, they will not be available for further processing after May 1 of the next fiscal year. If you have any questions or concerns, please contact your Research Accountant.

You can cancel a Purchase Order less than $25,000 by following the Finalize and Cancel PO reference guide.

Data Management Activities

Goods Received and Processed against a Purchase Order

In order to ensure that the University reports the correct accrued liability for goods received with no invoice processed to date and reports the correct funds reservation in departmental accounts, we are requesting departments to review the status of all outstanding Purchase Orders, particularly those that have a goods receipt document processed for which an invoice receipt is still outstanding. On March 28, 2017 we will be reversing all goods receipt documents posted prior to December 31st of the current fiscal year, which meet the following criteria:

  • no corresponding invoice receipt document was processed
  • an invoice receipt document was processed but differences exist between the goods receipt and the invoice document.

Should you require any goods receipt document to remain active in FIS, please provide a list of goods receipt document numbers meeting the two conditions noted above to Russell Smith ( ) no later than the GR/IR clean up deadline to ensure that they are NOT reversed.

Outstanding Rejects

A number of transactions are processed in AMS through interfaces between AMS and its modules such as ROSI. These transactions are posted in AMS as “batched” entries and can be rejected due to insufficient funds, while external parties continue to receive payments or credits. An example would be rejects for student award payments processed through ROSI. Students receive credits in their accounts, while the corresponding charges to divisions are rejected. To ensure that the expense (already paid) is appropriately recorded in the fiscal year and that divisional carryforwards reflect their true ending position, divisions should ensure that all such rejects are cleared. This can be done by either transferring funds to the NSF CF Center or finding an alternative source of funding.

Parked Documents

Please review all of your parked FIS documents and ensure that you POST all FIS documents that pertain to the current fiscal year. Any parked documents having a posting date earlier than January 31st of the current fiscal year will be deleted from the system during the April month-end processing. See the documentation on posting or deleting a parked document for more information

New Fund Centres

In order to provide sufficient time to correctly classify and report all account activity, the set up and activation of new Fund Centres for the current reporting year will be suspended effective the deadline for new master record requests for fund centres . All requests received after that date will be activated for the next fiscal year.

AMS System Availability

In order to accommodate fiscal year-end closing, the following summarizes the AMS system availability during the week prior to year-end closing:

  • Tuesday, April 18, 2017 – system open until 1:00 am (next day)
  • Wednesday, April 19, 2017 – system closed for monthly payroll phase 1 at 6:00 pm
  • Thursday, April 20, 2017 – system closed for monthly payroll phase 2 at 5:00 pm
  • Friday, April 21, 2017 – system closed for “Copy Plan to Budget” at 7:00 pm
  • Saturday, April 22, 2017 and Sunday, April 23, 2017 – system open regular hours on the weekend
  • Monday, April 24, 2017 – system closed for bi-weekly payroll at 6:00 pm
  • Tuesday, April 25, 2017 – system is open until 7:00 pm

This year, AMS will close for year-end processing on Tuesday, April 25, 2017 at 7:00 pm and will re-open on Friday, April 28, 2017 at 7:00 am (except uSOURCE and the capital projects portal which will open Monday, May 1, 2017 at 9:00 am.)

For information on the impact of the year-end closing dates on reporting and processing, please refer to the year-end impact matrix .

Year-end Reporting Deadlines and Training

 

Divisional Operating Reserve Report

Every year, each division must provide a report outlining their plan on how the operating reserve (formerly carryforward) funds will be spent, or in the event of a deficit, a plan for its elimination. Again this year, the Financial Services Department will report to governance the divisional operating reserve balance and disclose how each division will use these reserve funds. Please refer to the Divisional Operating Reserves section for more detailed information on how to prepare your report. As a result of our tight financial deadlines to governance, we request that you submit your operating reserve report by the deadline for divisional operating reserves report.

Year-end Training

The Financial Advisory Services & Training (F.A.S.T) team will be holding year-end related workshops.

The following workshops are offered in 2015:

  • Year-end Operating Reserves workshop: Covers such topics as running and downloading your carryforward report and reconciling it with your total funding activity report.
  • Negative FM Balances workshop: Covers such topics as tracing negative balances to their origin and how to clear negative balances.

These sessions will be held in room 103 at 256 McCaul Street .

To register for these workshops, or for information on the dates and times of these sessions, please see the Year-end Deadlines and Contact Information page.

General Contacts

Specific questions may be referred to the following individuals:

Accounting Services Lou Ranalli 416-978-8185
Training Sessions Rames Paramsothy 416-978-4675
Restricted Funds Helen Choy 416-978-2981
AMS Availability Lorena Gaudio 416-978-2802
Purchase Orders at or over $100,000 Umesh Kalia 416-946-7475
Purchase Orders between $25,000 and $99,999 Shauna Hipwell 416-978-7025
uSOURCE Shauna Hipwell 416-978-7025