Year End Procedures 2013/14Sarah Kellagher and Tanya Hitchen

Introduction• Overview including changes to prior year

• High-level Timetable

• CD forms – When to use them, how to use them and examples

• Internal trading

• Research accounting

• Premises recharges

• Other year-end procedures

• Summary

Overview

• Year-end debrief with ACMs after 2012/13

• Early access to CD forms

• Clarification re Payroll auto accrual

• Best practice for staff expenses prepayments- in workshop

• Workshop regarding automatic accruals for external suppliers

• Deadlines to be sent via Outlook to key contacts

• Sign off of CD forms and auto accruals to be agreed Mid July

High level timetable HEFCE filing deadline 30th November

HESA Return deadline 14th December

Council – virtual meeting end of November

Audit Committee – 4th November

KPMG audit - commences 15th September

APTOS Closedown to all except Corporate Accounting – 31st August 5pm – with temporary closedown on 31st July 5pm until 1st August 10am to allow critical year-end reports to be processed

CD forms

• What are they?

• Where can they can be found?

• What process do they follow?

http://www.exeter.ac.uk/finance/planning/yearendprocesses/

CD forms

Types of CD form available:• CD1_2014-A Creditors• CD1_2014-B Prepayments • CD1_2014-C Non-Staff & Student Expenses • CD2_2014-A Debtors • CD2_2014-B Income in Advance

• CD3 forms for internal transactions are available on request from Tanya

Hitchen.

• Code checkers now integrated, so please use these!!

CD formsWhen should I use CD forms?

• Where we have received goods/services before 31st July 2014 and there is no

Purchase order – CD1_2014-A Creditors

• Where we have provided services/goods but we have not yet raised an invoice

by the year-end deadline – CD2_2014-A Debtors

• Where we have paid in advance for goods/services (this could include payment

that spans the year-end, or staff travel ) – CD1_2014-B Prepayments

• Where an external invoice has been raised by the University, but the supply of

goods/services will happen after 1st August 2014 – CD2_2014-B Income in

advance

CD forms – Do’s and Don’ts Look at dates goods/service has been received, NOT the invoice date

Use the code checker and ensure all codes are active before sending them

Always send in supporting documentation to evidence the entries included to

Corporate Accounting, Room 254, Northcote House

Check if you are uncertain which form to use/ whether an entry is allowable

before the deadline

Use the minimum number of CD forms possible (consider materiality of £500)

For research ledger codes, CD forms to be reviewed by research accounting

Submit all electronic and paper copies by the 8th August 2014 to

financialreporting@ex.ac.uk . Send them in as early as you like!

CD forms – Do’s and Don’ts Never use a CD1/CD2 form for any internal income/expenditure

Never defer income that is not allowable by the funder

Do not send in a form without checking the codes are valid first. If

invalid/closed codes are submitted the form will be returned to the sender and will

only be input if form is returned before the deadline with valid codes.

More examples of unallowable CD forms

Internal tradingThroughout the year

Supplying department issues invoice within 30 days of providing the service

Receiving department processes the invoices within 30 days of the invoice date.

Disputes

Need to notify both Finance Services and the service provider in writing within 10 days of the invoice receipt.

The person responsible for the customer account must then work proactively to resolve the dispute.

Year end dispute process

Colleges/Services wishing to dispute an invoice must inform both the service provider and Trish Tester in writing (email is acceptable) by Wednesday 31st July.

The person responsible for the customer account must then work proactively to resolve the dispute, wherever possible before year end close on Friday 8th August.

Where the amount is less than £100, the invoice will not be placed into dispute but will be charged to the customer’s account. The customer may then seek resolution with the supplier.

Any invoices still in dispute as at Friday 8th August will be cancelled in 2013/14 year, reinstated in 2014/15.

All other invoices (not in disputed) will be cleared and the charge will be ‘direct debited’ to the receiving College/Service header account

Unresolved disputes

Internal Sales invoices dated on or after 1st August 2014

These will not be able to be processed by the receiving college or service until Tuesday 12th August when the old internal ledger has been closed and the new year internal ledger has been opened.

Key dates and deadlines for internal trading• 25th July last day to issue sales invoice for 2013/14

• Any disputed invoices should be notified by email to the supplying department and Trish Tester by 31st July.P.E.Tester@exeter.ac.uk

•Disputes must be resolved by Friday 8th August otherwise the invoice will be moved to 14/15. NB Invoices for less than £100 will not be placed into dispute.

• All remaining invoices must be processed by Friday 8thAugust; after 8th they will be “direct debited” into the College/Service header account on Monday 11th August.

• Tuesday August 12th new internal ledger opens for processing

Research Ledger CD Forms

Material limit previously stated Use code checker as indication of eligibility Corporate Accounting liaise with Research Accounting for sign-off

Audit Checks Follow KPMG guidance and liaise with RAFT teams during July/August

Split Grants Performed monthly Therefore year-end as per monthly procedure but later

Grant Statements

Priority given to year-end tasks

Premises recharges

Includes EDS projects & furniture, Property Services maintenance, Stores

Final Planon weekly recharges w/c 28th July - jobs marked complete

Work in progress charged via reversing journal

WIP to include time charges, actual costs plus receipts to 31st July

No CD3’s

Other year-end procedures – External sales invoices 2013/14 invoices – raise as soon as possible, dated when raised or 31st July

2014 (Period 12 closes 7th August 2014.)

Credit notes against 2013/14 invoices to AR by 7th August 2014.

Payments received re 2013/14 invoices send immediately to AR. Deadline 12 noon 31st July for inclusion in 2013/14.

2014/15 supplies to be invoiced as normal dated August 2014.

Invoices not raised by 7th August need to be included on CD2/2013/A received by 8th August.

Income received Cash/cheques/card for cashiers, and cash for transit to the bank by professional

carrier, for income up to and including 31st July 2014 to be with Cashier’s by 1st August.

2013/14 receipts MUST be kept separately from 2014/15 receipts.

Cash received by Finance Services after 1st August will be processed in 2014/15, irrespective of the date on the paperwork.

Additional cash collections can be arranged with Estate Patrol.

External purchase invoices

All invoices for goods/services where the invoice is matched to the purchase order and goods receipted before 31st July 2014 will be processed in the purchase ledger period 12 on Aptos.

All invoices matched or goods receipted after 31st July 2014 will be included on 2014/15 purchase ledger.

External purchase invoicesOn July 31st an auto accrual will be run centrally for all purchase orders that have

been goods receipted and not matched to an invoice by 5pm on the 31st July 2014.This will be circulated to colleges and services by Monday August 4th.

Automatic accrual to be reviewed by Colleges and Services, and manual adjustments to be made to the proposed accruals, and returned to Corporate Accounting by 8th August.

Detailed guidance of this process is set out on the finance webpages

There is a detailed workshop reviewing this process after this session

External purchase invoices

Invoice is paid

This would be posted as expenditure included as a year-end creditor if not yet paid-PO

commitment is released Invoice is matched to Purchase order

(posted by 31 July)

Accounts Payable receive Invoice

Mark as Goods receipted in Aptos

Receive the goods/Service

Raise and approve Purchase order

This should be included as expenditure

PO is fulfilled

If no Purchase order raised and goods/services received on or before 31st

July , include on CD1\2014\A form

These will be included on the automatic accrual list for review

Unfulfilled purchase order will appear as £0 on automatic accrual list, can be

overwritten with value and comment, NOT RECEIPTED IN TIME

Purchases for new suppliers Please allow time for setting up new suppliers

In July, Accounts Payable will prioritise setting up of new suppliers for urgent 13/14 spend, definite delivery before July 31st.

Foreign Payment Requests (not in IMS) 2013/14 foreign payment requests to Accounts Payable by 18th July.

2013/14 foreign payment requests,(relating to goods and services received by July 31st), not received until after 18th July need to be accrued on CD1/2014/A which need to be returned to Corporate Accounting by 8th August.

During July please clearly mark each request with ‘2013/14’ or ‘2014/15’ before sending to Accounts Payable.

Purchasing Cards and Online expenses

All claims fully approved by 12 noon on Tuesday 29 July 2014 will be processed to Aptos in 2013/14

On Tuesday 5 August, electronic accruals will be generated from: an extract taken from Aptos of all items dated prior to 1 August 2014; an extract taken from Expenses of all claims submitted but not yet approved and dated prior to 1 August 2014; an extract taken from Expenses of all claims started but not yet submitted and dated prior to 1 August 2014; and an extract taken of all un-reconciled purchase card transactions (ie these will not have been submitted). These items will be from all card statements up to and including the July 2014 statement.

Purchasing Cards and Online expenses These electronic accruals will be circulated to finance staff in Colleges and

Services by 10am August 6th to confirm: all items should be accrued confirm/add coding where required (unapproved/unreconciled lines)

Once Colleges and Services have confirmed all the accrual data the accruals will be posted to 2013/14  Deadline for returning electronic accrual schedules 5pm on Friday 8 August.

Any expense claims, relating to activity in 2013/14, entered onto the expenses system after August 5th will need to be accrued on a CD1/2014/C form.

Purchasing Cards and Online expenses Expenses for costs that relate to 2014/15 will need to be entered as a

prepayment on a CD1/2014/B form.

These prepayments can be extracted as follows;

Run a report from the expenses-on-line system for all claims submit in year and scrutinise the narrative for activity in 2014/15, looking for dates and material values. Items likely to be claimed for in advance of activity will be travel, conference fees, hotel bookings etc.

Detailed guidance of this process is set out on the finance webpages

Non-staff/student expenses Hard copy expense claims for non-staff/students RECEIVED in Accounts Payable

by 18th July will be processed in 2013/14.

2013/14 claims received by 18th July, that relate to activity in 2014/15 will need to be entered as prepayments on CD1/2014/B by 8th August.

2013/14 claims received after 19th July, that relate to activity in 2013/14 will need to be accrued on CD1/2014/C by 8th August.

2013/14 claims received after 19th July, that relate to activity in 2014/15 should not be accrued on CD1/2014/C .

Payroll claims Any Payroll claims received in August will be processed into 2014/15.

However, ‘Claims Payroll’ claims relating to work done in 2013/14, and clearly marked so, that are RECEIVED by Payroll by 8th August will be automatically accrued for in 2013/14 centrally. Corporate accounting will communicate with colleges & services when done. (PD82s, PD85s; not PD107 or PD71)

Any ‘Main Payroll’ claims received by 8th August that relate to work done in 2013/14 will need to be accrued on CD1\2014\C (Includes PD107 or PD71)

July staff bank claims received by 8th August will be accrued for centrally, including recharges to Colleges.

Petty Cash For expenditure up to and including 31st July 2014, send petty cash book and

claim for reimbursement to Cashier’s office by 1st August.

DO NOT send in a claim for reimbursement which spans both years.

It is acceptable to close off petty cash earlier than 31st July 2014 and include all subsequent expenditure in 2014/15 unless material to the budget unit.

EquipmentCapital Equipment schedules (> £25,000) to be issued in July 2014 and returned

by 6th August 2014.

Inventory schedules (over £500) confirmations to be issued in July 2014 returned by 6th August 2014. Inventory schedules may be requested for inspection during the external audit.

Journals and key dates 18th July: Student Expense Claims, Foreign Payments, Non-Staff Expenses 25th July: Internal Sales Invoices 31st July: APTOS closed at 5pm, Central automatic accrual run 1st August: APTOS re-opened 10am, last day for cash income 6th August: Capital & Inventory Schedules, External Sales Invoices 8th August: return auto accruals 8th August: Internal Purchase Invoices, CD Forms, return Expense and

purchasing card accruals.13th August College/Service to post their own journals

NOTE: When entering journals in the period between 1st and 8th August you will have to overwrite the date to 31st July otherwise the voucher will default to current August date

31st August: APTOS closed to all except Corporate Accounting

ANY QUESTIONS OR FEEDBACK?

Contact us:Sarah Kellagher– Ext 5872Tanya Hitchen – Ext 5009http://www.exeter.ac.uk/finance/planning/yearendprocesses/