59 April 30 2005 Fiscal Year end Closing

PDAD&C #59, 2004-05

Memorandum

To: Principals, Deans, Academic Directors and Chairs
From: Sheila Brown, Chief Financial Officer
Date: March 10, 2005
Re: April 30, 2005 Fiscal Year-end Closing
cc:  

Divisional Business Officers via AMS listserv
Divisional Financial Officers via DFO listserv



As we approach the end of the 2004-2005 fiscal year it is important to ensure that all financial activity for the year is accurately recorded in your accounts prior to closing the accounts.

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 April 25 to Accounts Receivable, 215 Huron Street, 2nd Floor
  • preparing and processing debit memos to your internal customers by Friday, April 29
  • depositing all cash received for cash sales and recoveries by noon on April 27.

Expenses

Where a division/department has received goods or services prior to April 30, 2005 the expense should be recorded by:

  • processing suppliers' invoices by April 29
  • processing  expense reimbursement by April 29

In the case of goods or services purchased from another University department, it is the responsibility of the selling department to ensure that debit memos are processed by April 29.

Accruals

In most cases, your expenses will be recorded in your accounts simply as a result of meeting the processing deadlines.  However, in a very few instances, this is not so.  For example, even though a supplier has delivered goods or services to you before April 30, the supplier's invoice may not reach the University in time to meet the processing deadline.

In these cases an accrued expense should be recorded in your accounts.  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.  In order to have the accruals recorded in your accounts, please submit a signed debit memo to Lou Ranalli, Financial Services Department no later than April 25, 2005.  The debit memo would include the accounts to be charged, including a brief description of the expense being accrued, leaving the credit side of the debit memo blank.  The backup documentation does not have to be submitted with the debit memo; however, it must be supplied upon request.

Note that accruals may also refer to income.  However, it is expected that all sale invoices and debit memos will be processed by April 29 and, therefore, it should not be necessary to accrue income.

Purchase orders

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 April 25 for purchase orders greater than $25,000.  You can obtain a list of outstanding purchase orders by following the documentation available at:

www.utoronto.ca/amsfis/46C/qrgs/po/DisplayDocs.htm

You can cancel a purchase order less than $25,000 by following the process outlined in the documentation available at:

http://www.finance.utoronto.ca/English/Finalize-a-Purchase-Order.html

Prebillings

As a general rule, invoices for services which you will provide in 2005-2006 year should not be processed before May 2005.  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: Debit memos for services to be provided in 2005-2006 must NOT be processed in the current year.

Carry forward of divisional funds

Every year, each division provides a report outlining a plan on how the carry forward funds will be spent, or in the event of a deficit, a plan for its elimination.  Again this year, we will report to governors the balance carried forward and disclose how your division will spend these funds.

The spending plans should be reported NET of any purchase order commitments and use the following categories and definitions below.

a) Independently funded projects:

Included in this section are a number of projects housed in operating units which exist because they generate their own source of funds (i.e. self funded units). Examples would be continuing education programs and “fee for service” contracts.  The funds generated are expected to only be applied to future expenses of that unit.

b) Research:

Funds set aside for research would be included in this section.  This includes funds allocated to Principal Investigators as a result of the Faculty members and Librarians expense reimbursement program, overheads, research allowance or start-up funds.  Also included are funds set aside for Canada Research Chairs and EAF Chairs including any related research allowance.

c) Student assistance:

This category captures all funds set-aside for scholarships, bursaries and other student assistance.

d) Infrastructure:

This category is intended to capture funds that have been set-aside by the unit in anticipation of a major renovation to their facility; infrastructure upgrades, such as computer networking, security, equipment and furniture renewal; and associated moving costs.

e) Other academic purposes:

This section includes divisional funds that are used for purposes other than those identified above.  Funds in this category would include funds set aside for anticipated budget reductions, voluntary early academic retirements, professional development and start-up funds.

Please provide your academic spending plans for this fiscal year using these five categories which in turn will be published in the supplementary financial report.

It should be noted that there is a system report to obtain your carryforward balances in FIS.  This report is located under the “year-end reports” reporting tree in the funds management area of FIS.  This report is a detailed view of the carryforward activity for each CF Centre within your division.  The report does provide summary figures of the purchase order and divisional carryforwards.

As a result of our tight financial deadlines to governance, we request that you submit your spending plans by May 13, 2005.

I would also like to alert you to the fact that the Financial Advisory Services & Training team will be holding year-end related workshops.  The Year-End Carry forward workshop will cover such topics as running and downloading your carry forward report and reconciling it with your total funding activity report.  The Identifying and Correcting Negative Balances workshop will cover such topics as tracing negative balances to their origin and how to clear negative balances prior to year end.  These sessions will be held in Room 210 of the Koffler Institute for Pharmacy Management building at 569 Spadina Avenue on the following dates:

Identifying & Correcting Negative Balances

Tuesday, March 22, 2005                       2:00 pm – 4:00 pm
Thursday, April 13, 2005                        2:00 pm – 4:00 pm

Year-end carry forward

Wednesday, April 18, 2005                     2:00 pm – 4:00 pm
Thursday, May 9, 2005                          2:00 pm – 4:00 pm

Specific questions may be referred to the following:

Accounting Services: Lou Ranalli  

978-8185

Training Sessions: Chris Dimitriadis

946-3153

Restricted Funds : Helen Choy 

978-2981



University of Toronto
April 30, 2005 Fiscal Year End

I

Accounts Payable

Submission
Deadline

Queries
Call

 

1. Supplier's Invoices

 

 

 

All invoices should be processed by Business Officers by April 29.  This applies to goods/services received by April 29.

All overseas invoices requiring draft payments by April 30 should be processed by Business Officers no later than April 24.

 

 

 

 

2.     Accountable Advances

April 25

8-6593

 

All accountable advances due on or before April 30 should be settled with Financial Services Department by April 25. Processing of requests for accountable advances for activity taking place after April 30 will begin May 2.

 

 

 

 

3.     Petty Cash & Imprest Bank Reimbursements

 

 

 

All reimbursements should be processed by Business Officers by April 29.

 

 

 

 

4.     Closing Opening/Increasing Petty Cash & Imprest Bank Accounts

April 25

8-6593

 

Requests should be submitted to Financial Services Department by April 25.

 

 

 

 

5.     Accruals

April 25

8-8185

 

 

 

 

II

Purchasing

 

 

 

1.     Purchase Orders Less Than $25,000

 

 

 

Processing can continue to April 29 as long as two quotations are obtained for orders over $5,000 but not exceeding $25,000.

 

 

 

 

2.     Purchase Orders Over $25,000

April 25

8-7447

 

Requisitions and associated written quotations must be forward to Procurement Services by April 25.

To ensure the year-end statements of account reflect the correct purchase order reserve, cancellations or adjustments to purchase orders must be submitted by April 25.

 

 

April 25

 

 

8-7447

 

 

 

 

III

Other

 

 

 

1.     Accounts Receivable Invoices

April 25

8-2073

 

Invoices should be submitted to Accounts Receivable, 215 Huron Street,
2nd Floor.

 



 

2.     Debit memos

 

 

 

Can be processed by Departmental Business Officers until April 29.

 

 

 

 

3.     Cash Deposits

April 27

8-2144

 

All cash deposits must be deposited with Cashiers or Bank by 12:00 noon April 27.  This requires departments NOT to process cash receipts in FIS which will not reach the Cashiers office by 12:00 noon on April 27.  Deposits and processing can resume effective May 2, 2005.

 

 

 

 

4.     Donations

April 22

8-0811

 

DIS will be closed for fiscal year end beginning at 5:00 pm, April 29.  All donations requiring processing for the fiscal year 2004-2005 must be received by the Division of University Advancement, 21 King's College Circle, no later than 5:00 pm on April 22. 

 

 

 

 

5.   AMS

April 29

 

 

AMS will close at 10:00 pm on Friday, April 29 and reopen at 7:30 am on May 2.