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Auxiliary Financial Statements

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  • 1. Auxiliary Financial Statement Training Session For Fiscal Year 2007-2008 Presented by: General Accounting Finance and Accounting
  • 2. Agenda
  • 3. Agenda
    • Discuss the general flow of information related to preparing year-end financial statements for auxiliaries.
    • Discuss the detail steps required for preparing and submitting financial statements for auxiliaries, including
      • Identifying and reconciling the data
      • Preparing the financial statements in the proper format
    • Review available queries
    • Discuss due date - August 08, 2008
  • 4. New this Year
    • Only auxiliaries with annual revenues greater than one million dollars will be required to submit quarterly and annual (year end) financial statements to General Accounting.
    • New Financial Statement template
      • Some minor modifications on the SRECNA and the SNA
      • One single sheet with all the reconciliations and adjustments
  • 5. Process Overview
  • 6. Process Overview
    • Run a trial balance query, download to Excel, and organize the data with a pivot table.
    • Transfer the numbers from the trial balance pivot table to the Trial Balance Reconciliation sheet.
    • Enter the numbers from the prior year Statement of Net Assets (SNA) to the Trial Balance Reconciliation sheet.
    • Reverse prior year accruals – Reversing Entries.
  • 7. Process Overview (cont)
    • Prepare current year accruals on the Trial Balance Reconciliation sheet.
    • Input information from Depreciation Report.
    • The last column of the Trial Balance Reconciliation sheet will automatically populate the Financial Statements - SRECNA & SNA.
    • Complete SRECNA for prior year: Comparative information only.
    • Provide details for the accrued Accounts Receivable and accrued Accounts Payable.
  • 8. PROCESS -> Trial Balance
  • 9. Trial Balance Query – Navigation
    • Security Roles Needed:
    • UF_FI_FUNC_USER
    • UF_GL_RESEARCH_REPORTING
    • PeopleSoft>Financials People Tools>Reporting Tools> Query>
    • Query Viewer
  • 10.
    • Search for query
    • UF_GL_TB_BY_FUND_DEPT_AUX_QRY
    • Aux year end TB by Fund & Dept  
          • Run to HTML
    Trial Balance Query – Procedures
  • 11.
    • Input criteria for query
      • Fiscal Year = 2008
      • Accounting Period = 12
      • SetID = UFLOR
      • From Fund = Dept Fund
      • To Fund = Dept Fund
      • From Dept = Beginning Dept ID
      • To Dept = Ending Dept ID
        • (Dept IDs and Funds that you are preparing financial statements for)
      • View Results
    Trial Balance Query – Procedures (cont) All data used in this presentation are for training purposes only and do not necessarily represent accurately the departments’ activities.
  • 12.
    • Download into Excel
    • Save file as
    • Dept ID_fund_TB_2008
    • (ex.13500xxx_149_TB_2008)
    • *Cannot create Pivot Table w/o first saving file.
    • Organize Data with Pivot Table Function
    Trial Balance Query – Procedures (cont)
  • 13. Pivot Table – Steps
    • In Excel, open the saved Trial Balance file just created.
    • Step 1 - Go into
    • Data -> PivotTable and PivotChart Report
    1 1
  • 14. Pivot Table – Steps (cont)
    • Step 2 – Accept the default settings and click “Next”.
    2
  • 15.
    • Step 3 - Verify that the cells selected include all cells with data.
    • Step 4 - Click “Next”
    • Step 5 – Click “Layout”
    Pivot Table – Steps (cont) 3 5 4
  • 16.
    • Step 6 – Construct the Table
      • A – Drag “Fund” & “DeptID” to COLUMN
      • B – Drag “Fin St Code” to ROW
      • C – Drag “Sum of Net Balance” to DATA
    • Step 7 – Click “OK”
    Pivot Table – Steps (cont) 6 B A 7 C
  • 17. Pivot Table – Steps (cont)
    • Step 8 - Click “Finish”
    8
  • 18. Pivot Table – Steps (cont) Format cells:
  • 19. PROCESS -> Trial Balance Reconciliation
  • 20. Trial Balance Reconciliation: Purpose
    • Reconcile and combine data from different sources:
      • PeopleSoft Trial Balance
      • Prior Year Financial Statement
      • Depreciation Report from Asset management
      • Internal Records
    • Adjust PeopleSoft Trial Balance for any relevant accruals:
      • Accrued Accounts Receivable
      • Accrued Accounts Payable
      • Deferred Revenues
      • Prepaid Expenses
      • Allowance for Doubtful Accounts
      • Inventory
      • Compensated Absences
      • Others
  • 21. Trial Balance Reconciliation: Structure
    • Assets
      • Cash
      • Accounts Receivable
      • Inventory
      • Loan Receivable
      • Prepaid Expenses
      • Capital assets
    • Liabilities
      • Accounts Payable
      • Compensated Absences
      • Deferred Revenues
      • Loan Payable
    Rows
    • Revenues
    • Operating Revenues
    • Nonoperating Revenues
    • Expenses
    • Personnel Services
    • Services and Supplies
    • Utilities and Communications
    • Overhead
    • Nonoperating Expenses
    • Gain/Loss on Capital Assets
    • Transfers In/Out
    • Net Assets
  • 22. Trial Balance Reconciliation: Structure
    • PeopleSoft Trial Balance
    • Statement of Net Assets (SNA) as of 06/30/07
    • Reversing Entries
    • Adjusting Entries
    • Asset Management Data
    • Adjusted Trial Balance
    • Financial Statement Template
    Columns
  • 23. Trial Balance Reconciliation: Overview Financial Statement Template
  • 24. Trial Balance Reconciliation: Start
    • Save blank Aux FS Forms as FS_Dept ID_fund_YE08
    • (ex. FS_13505xxxx_149_YE08)
    • Copy the PeopleSoft Trial Balance data to the FS template: TB-Data tab.
    • Copy the PeopleSoft Trial Balance Pivot Table to the FS template: TB-Pivot Table tab. Use Paste Special – Values and number formats.
    FS Tabs 3 2
  • 25. TB Reconciliation – Header Information
    • At the top of TB Reconciliation (TBREC) enter your Auxiliary’s
      • Name (cell E3)
      • Dept ID (starting from cell G5)
      • Fund (starting from cell G6)
    • Other sheets will be automatically populated with this information.
    Auxiliary Name Fund Dept ID
  • 26. TB Reconciliation – Balances from Pivot Table
    • Enter departmental balances from the Pivot Table in the appropriate cells on the TB Reconciliation sheet for each financial statement code (Cash, Op Rev, Overhead…).
    • PeopleSoft figures should be entered in the yellow colored cells only.
    • Insert new columns if necessary.
    TB Reconciliation
  • 27. TB Reconciliation – Balances from Pivot Table TB Pivot Table TB Reconciliation *All balances in debit (credit) are reported as positive (negative) figures. Just report the numbers as they appear on PS TB.
  • 28. TB Reconciliation – Balances from Pivot Table
    • Once completed, the sum of the debits and credits of each individual column should be zero.
    TB Reconciliation
  • 29. PROCESS -> Previous Year SNA Balances
  • 30. TB Reconciliation – Previous Year SNA
    • Enter all the balances from the 2007 Statement of Net Assets (SNA) in the appropriate cells on the TB Reconciliation.
    • SNA figures should be entered in the orange colored cells only.
    • These balances will automatically populate the 2007 column on the SNA.
    TB Reconciliation
  • 31. TB Reconciliation – Previous Year SNA
    • Once completed, the sum of the debits and credits in the Previous Year SNA column should be zero.
    TB Reconciliation
  • 32. TB Reconciliation – SNA
    • At this point on the SNA tab, 2007 and 2008:
    • Total Assets - Total Liabilities and Net Assets = 0
    • All subsequent entries should not modify this status.
    • The financial statements are not yet completed.
    SNA
  • 33. PROCESS -> Reversing Entries
  • 34. TB Reconciliation – Reversing Entries
    • The reversing entries are required to reverse the prior year accrual entries.
    • The gray colored cells are for the reversing entries.
    • All reversing entries are automatically computed.
    • Review them and verify they are logical and accurate.
  • 35. TB Reconciliation – Reversing Entries
    • All reversing entries are double side entries: Debit and Credit
  • 36. TB Reconciliation – Reversing Entries
    • The sum of the debits and credits of Reversing Entries column should be zero.
  • 37. PROCESS -> Adjusting Entries - Accruals
  • 38. TB Reconciliation – Adjusting Entries
    • The Adjusting Entries are required to reflect any information not yet entered in PeopleSoft or to comply accounting principles: Revenue Recognition, Matching Principle…
    • Adjusting entries should be entered in the blue colored cells only.
    • The information is from different sources including your internal records.
  • 39. TB Reconciliation – Adjusting Entries
    • All reversing entries must be double-sided entries: Debit and Credit
    Credit (-) Debit (+) Expense Debit (+) Credit (-) Revenue Debit (+) Credit (-) Liability Debit (+) To Increase Credit (-) Asset To Decrease Account Type
  • 40. TB Reconciliation – Adjusting Entries Accrued Accounts Receivable
  • 41. TB Reconciliation – Adjusting Entries Deferred Revenues
  • 42. TB Reconciliation – Adjusting Entries Compensated Absences Liability Note: The Compensated Absences Liability report is only available at year end. Please use the same liability number for quarterly FS
  • 43. TB Reconciliation – Possible Adjusting Entries Expenses Prepaid Expense (Asset) Prepaid Expense Interest Revenue Interest Receivable Accrued Interest Deferred Revenue (Liability) Op Revenues Deferred Revenue Accrued Accounts Payable Expenses Accrued Accounts Payable Op Revenues Accrued Accounts Receivable Accrued Accounts Receivable Credit Debit
  • 44. TB Reconciliation – Possible Adjusting Entries AR Allowance for Bad Debt Write-off Allowance for Doubtful Accounts (Contra-Asset) Bad Debt Expense Allowance for Doubtful Accounts Cash Petty cash Petty cash (Asset Reclassification) Compensated Absences Liability Personnel Expenses Compensated Absences Liability Credit Debit
  • 45. TB Reconciliation – Adjusting Entries
    • The sum of the debits and credits of Adjusting Entries column should be zero.
  • 46. PROCESS -> Capital Assets
  • 47. TB Reconciliation - Capital Asset Reconciliation
    • A reconciliation to the Depreciation Report is required.
    • The accurate information is from this Depreciation Report.
    • All reconciliations are prepared on the TB Reconciliation: No more specific Capital Asset Reconciliation schedule
    • Depreciation Report data should be entered in the light green colored cells only.
  • 48. TB Reconciliation - Capital Asset Reconciliation All data used in this presentation are for training purposes only and do not necessarily represent accurately the departments’ activities. Please provide a reconciliation sheet if the figures you use are different from the Depreciation Report. Depreciation Report
  • 49.
    • The reconciliation is automatically computed on the adjusted TB Reconciliation.
    • The results are a gain or loss on the capital assets and on the accumulated depreciation. Both are combined on the SRECNA.
    TB Reconciliation - Capital Asset Reconciliation
  • 50.
    • Capital Assets
    • Ending Capital Assets on FS (2007)
    • (+) Capital Assets Expenses (2008)
    • (-) Accrued AP (2007)
    • (+) Accrued AP (2008)
    • Total Capital Assets per FS
    • Compare to:
    • Capital Assets per Depreciation Report
    • Any difference will result in a gain or loss on Capital Assets.
    Accumulated Depreciation Ending Accumulated Depreciation on FS (2007) (+) Depreciation Expense (2008) Total Accumulated Depreciation per FS Compare to: Accumulated Depreciation per Depreciation Report Any difference will result in a gain or loss on Accumulated Depreciation. TB Reconciliation - Capital Asset Reconciliation
  • 51. PROCESS -> Adjusted Trial Balance Column
  • 52. Adjusted Trial Balance Column
    • All totals are automatically computed in the Adjusted TB column.
    • If new rows are added for entry types not already designed on the template, the adjusted TB column might required some modifications. For support contact General Accounting.
  • 53. Adjusted Trial Balance Column
    • The sum of the debits and credits of Adjusted Trial Balance column should be zero.
  • 54. Adjusted Trial Balance Column
    • The numbers from the Adjusted Trial Balance column will automatically populate the SRECNA and SNA.
    • No data should be entered directly on the SRECNA (except prior year balances) or SNA.
  • 55.
    • No adjustment needed for Amount to be Financed in the Future (Compensated Accumulated Liability).
    • No adjustment needed for Replacement Cash: Asset reclassification.
    • The Adjustment to Net Beginning Asset is not the magic solution to bring the FS in balance.
    • Any adjustment to Beginning Net Asset must be justified by appropriate documentation.
    TB Reconciliation – Adjustment to Beginning Net Asset
  • 56.
    • The Ending Total Net Assets on the SRECNA and on the SNA should be the same.
    Ending Total Net Assets: SRECNA & SNA
  • 57. PROCESS -> Recap of Accrued Accounts Receivable
  • 58. Reconciliation – Recap of Accrued AR
    • Input current year Accrued AR and break it down by interdepartmental sales (ID Sales) & Non UF Sales.
    • Break down the AR by age.
    • This total will be the same as the TBREC.
  • 59. PROCESS -> Recap of Accrued Accounts Payables
  • 60. Reconciliation – Recap of Accrued AP
    • Accrued AP should be divided into PS Accounts.
    • Break down the AR by age.
    • The total on the Recap of Accrued AP is the total on the Accrued Accounts Payable on the TBREC.
  • 61. Available Queries
  • 62. Available Queries
    • UF_GL_JOURNAL_DETAIL_QUERY2
      • Provides the entries making up the Trial Balance
    • UF_GL_JOURNAL_DETAIL_QUERY2_AR
      • Provides ONLY AR journals from direct deposit
    • UF_VOUCHER_LOOKUP2
      • Provides vouchers for a certain account or vendor payment
    • UF_EX_RPTS_FOR_JRNLID
      • Provides Expense reports with Travel Journal ID
  • 63. Review of the Process
    • Run a PS trial balance query.
    • Transfer trial balance pivot table balances to the Trial Balance Reconciliation sheet.
    • Enter the numbers from the prior year SNA to the Trial Balance Reconciliation sheet.
    • Reverse prior year accruals (automatic).
    • Prepare current year accruals.
    • Input information from Depreciation Report.
    • Complete SRECNA for prior year.
    • Provide details for the accrued AR and accrued AP.
  • 64. Financial Statement Due Date
    • Remember that financial statements are due to Auxiliary Accounting by
    • August 8, 2008
    • Financial Statements can be submitted in electronic format. You can either request your director to submit them by email or include a scan copy of the signed cover sheet.
  • 65. Any Questions?
  • 66. Contacts
    • We are happy to assist you!
    • Patrice Lecomte
      • Email: [email_address]
      • Phone: 392-1326 ext. 626
    • Sheela Moudgil
      • Email: [email_address]
      • Phone: 392-1326 ext. 410