Acceleration of Closing Out of Prior Year Funds

Oracle Funds 1005, 1405, & 1605

University Controller’s Memo to Account Managers

Date: September 18, 2006
To: Account Managers
From: Lorretta A. Leavitt, University Controller
Subject: IMPORTANT CHANGES
Update: Early Deadline, Revised

Following and attached memos explaining the Acceleration of Closing Out of Prior Year Funds (Oracle funds 1005, 1405 and 1605) have been slightly revised, eliminating two paragraphs referencing changes to future processes. Additional information will be forthcoming on those items.

Please review and share as appropriate, and don’t hesitate to contact me or any of those listed in the memo for assistance or clarification.

Lorretta A. Leavitt
University Controller

Account Analysis and Review

As an Account Manager, you have the opportunity to analyze and review your accounts to assure you receive the benefit of any changes to transactions booked as of June 30, 2006, but still pending. However, there is limited time to complete Fiscal Year 05/06 General Fund (Oracle Funds 1005, 1405, 1605) transactions. Due to the CSU Chancellor’s Office implementation of a Revenue Management Program, all prior year transactions (expenditures, revenues and reimbursements) must be completed and submitted to the state by November 1, 2006. We recognize that this date is a full month earlier than usual; however it is the schedule the campus has been instructed to observe.

In addition, after this year, we will no longer be required to close out the prior year general fund. Our Fiscal Year 06/07 General Fund value, Fund “1006”, will remain as such indefinitely; there will no longer be a fiscal year differentiation by fund value. This makes it imperative that you place the appropriate GL date on your requisitions, as this will indicate the Budget year it will be charged against.

You are encouraged to do periodic, monthly or quarterly reviews of your open purchase orders, to ensure they are being completed in a timely fashion, and that the money is spent within the same Budget year that the Purchase Order was initiated. A formal process will be developed by the University Controller’s offices and will be published out to the campus once defined.

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What This Means to You

You must submit all transactions, both invoices and receipts, and close out all open purchase orders for Oracle Funds 1005, 1405, and 1605, by October 25, 2006. The Budget Office will review balances as of June 30, 2006 and compare those balances to the October 25, 2006 balances, to assure the divisions receive the benefit of cleaning up these transactions via the university carry-forward process.

Note: Disencumbered funds are not available to be re-encumbered within Fund 1005, and any funds made available after October 25th will not be included in the amounts made available to the division.

After November 1, 2006, any remaining open orders will be disencumbered; unpaid invoices will be processed against current year funds, and receipts for reimbursements will be credited to current year funds.

Below are instructions to assist you with this process. If you need further assistance, please do not hesitate to contact staff members in Accounting Services at ext. 4-4765; Accounts Payable at ext. 4-0894; and Contract and Procurement Management at ext. 4-5243.

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Reimbursements

If you have amounts due to your reimbursed account (Fund 1405) or revenue account (Fund 1605), you should work with Liz Lockwood in Accounting Services to ensure that an invoice has been issued. If the invoice is issued but unpaid, you may wish to contact the customer and assist them in issuing payment to SDSU. To be credited to fund 1405 or fund 1605, payments from the customers must be received by October 25, 2006.

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Expenditures

Please review your September expenditures very carefully, paying particular attention to Fund 1005. You can do this by running the All Transactions (Actuals) Inquiry, an Oracle database query. If final payment has not been made to the vendor and the invoice has not yet been received by SDSU, contact the vendor and request that they invoice us as soon as possible. When you submit the final invoice to Accounts Payable for payment, clearly indicate on the face of the invoice “FINAL, FUND 1005, PAYMENT — PLEASE FINAL CLOSE PO” and indicate the PO line number to be finally closed. To be paid out of fund 1005, the vendor must be paid by October 25, 2006.

Continue to review your account after payment has been made to verify that all encumbrances are cleared. If you find there is an outstanding encumbrance, submit an online Final Close Request to Contract and Procurement Management.

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Encumbrances

Continue to review your encumbrances for Fund 1005 by running the Encumbrance Inquiry, Oracle database query. Refer to the Encumbrance Review Flowchart [PDF] to determine which action(s) to take to clear Fund 1005 encumbrances by October 25, 2006. Download and print the flow chart, and refer to the hints outlined below to complete the task.

Have all invoices for the PO been paid?

The final invoice must be paid before the final close request form can be submitted. If the PO is finally closed before the final invoice has been paid, you’ll need to submit a new requisition to Contract and Procurement Management, to add a new line to the PO before the invoice can be paid.

Note: Wednesday, October 25, 2006 is the deadline for submitting final close requests for Fund 1005 and for submitting final invoices to Accounts Payable.

How to determine if the final invoice for the PO has been paid.

If you know the invoice number, use the following method to determine whether the final invoice was in fact paid:

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Tips for Improving your Search

• Do not enter the Purchase Order number to search because it will limit your search to only invoices that have been matched to the PO. Entering the PO number may cause you to miss unpaid invoices.
• Always use percentage signs “%” as wild card characters in the invoice number; i.e., “%1234%”
• Use the <Date> fields if necessary to narrow your query to a specific time period
• Use the <Amount> fields to filter out canceled invoices, entering a value between <.01> to <1,000,000>. However, this is not advised when searching for unprocessed credits.

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Results

• If invoices have been paid you will see the amount of the payment reflected in the Amount Paid field
• If the Distribution Total field is populated with red zeros (0.00) then the invoice has not yet been matched to the PO and has NOT been paid
• If the Distribution Total field is populated with the amount of the invoice, it has been matched to the PO
• If payment has been issued the Amount Paid field will be populated with the payment amount

Note: You may notice some peculiar encumbrance activity on multi-year orders and on orders where some changes to distributions were processed, leaving credit encumbrance amounts showing in the General Ledger. If you find this type of error, please submit your request for correction to Dana McCoy.

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Final Close Requests

Subsequent to your review of the above reports, utilize the online Final Close Request form to release outstanding encumbrances for orders that are complete and paid. Questions regarding this form may be directed to Cathy Garcia, Contract and Procurement Management.

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This page last updated  November 6, 2006
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