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Year End Processing Requirements

 Year End Processing Requirements
April 30, 2015

To: All University Employees
From: Controller’s Office
Date: April 30, 2015
Subject: Year End Financial Processing Requirements
Wilkes University's fiscal year ends on May 31, 2015. In an effort to ensure we have accounted for all transactions applicable to the current fiscal year; we have established the following deadlines for information processing:
Transaction                          Due date                    Detail
  • Purchase Requisitions     May   6, 2015 
  • Purchase Orders             May 13, 2015              Last day to process PO’s
  • PCARD Purchases          May 15, 2015              Date of last purchases
  • Accounts Payable           June 3, 2015               Check Requests
                                                                                 Travel Reimbursements

                                                                                 Grant funded expenditures

  • Receiving documents      June 5, 2015               Packing slips, etc.
Materials Received
All materials which are to be charged to the 2015 budget year must be received by Sunday, May 31, 2015.  Any item received on or after June 1, 2015 WILL be charged to the next fiscal year.  All receiving documents (packing slips, purchase orders, etc.) and invoices in department possession must be forwarded to the Controller’s Office by June 5, 2015.
See attached guidance for more information on charging to the correct fiscal year.
Services Rendered
All services must be charged to the fiscal year in which they are performed.  All services exceeding $3,000 will be reviewed by the Accounting Department for correct recording and charged/ adjusted accordingly.
Summer Travel
Summer travel occurring on or after June 1 must be charged to FY 2016.  All travel expenses exceeding $3,000 will be reviewed by the Accounting Department for correct recording and charged/ adjusted accordingly.
Budget Accounts
Please review your accounts carefully. Transfers and reallocations cannot be processed after the accounting close on June 9th.
It is imperative that all of the above information receive the proper approvals, are processed through the Controllers’ Office, and that the University adheres to these deadlines in order to allow adequate processing time. As always, thank you for your cooperation. 
Wilkes University Controller’s Office
General Accepted Accounting Principles (GAAP) mandate that expenses be charged to the period (fiscal year) in which they are incurred.  For services rendered, GAAP requires us to record the expenses in the fiscal year in which the service is performed; for goods and merchandise, GAAP requires us to record the expense in the fiscal year in which they are received. The date that the invoice is received and/or paid does not determine what budget year the expense should be charged to. Although we may not be billed for services/merchandise until after the fiscal year ends, the University is still responsible to record and accrue those expenditures in the period the activity occurred.   Likewise, if the University pays for something in advance of when it is received (not going to be received until the next fiscal year); we cannot charge it to the year we pay it. Any time we become aware of such expenditure, with the exception of immaterial amounts, accounting transactions are made to “move” and record them to the correct period.
How this impacts individual budgets:
-Recurring subscriptions and periodicals, dues, service agreements, maintenance agreements etc. that are expensed over a period of several months to years:
During the year, as these types of recurring expenditures occur, the Controller’s Office will perform the accounting for the proration of the expenses to the correct month through a separate University organization (org) number. This is done as a convenience to the budget managers in order to assist with Budget management and ease of Banner viewing.  Because these types of expenditures are generally recurring in nature, the individual’s organization budget will generally get charged once per year while the correct accounting occurs in the background. 
-Travel and all other one-time expenses (lecturer fees, etc.):
Travel and one-time expenses (i.e.  speakers for lectures, etc.)  must be charged to the year in which the services are performed or activity will occur. While we understand that sometimes it is beneficial and necessary to pre-pay expenditures in order to receive discounts or assure time spots, etc.; please be aware that in order to properly account for these expenses, the Controller’s office must make accounting adjustments to charge these expenditures to the correct budget year.  If you have made an expenditure that exceeds $3,000, it will most likely be reviewed and an accounting adjustment may be made by the Controller’s office to charge the expense to the correct budget year within your department.  If you are planning to prepay travel expenses, please let us know the amount and method of payment so that we can correctly adjust the charge as needed.   Most, if not all, adjustments are made at the department level, rather than the general University level, to maintain an accurate accounting of department expenditures by fiscal year.   If departments were allowed to charge expenses to whatever year they have available funds, this would be against GAAP principles and would skew the department budgets with the actual expenditures for the year;  creating overall artificial budget surpluses because the actual expense is not charged to the period when it is incurred.
Capital Carryover
Capital items are purchased from a special capital fund ;  funds that have been  transferred to a  capital account prior to year-end may be carried over and used for an item that will be received in the next year, PROVIDED THAT A VALID PURCHASE ORDER HAS BEEN RECEIVED BY THE VENDOR BY MAY 31.