Year End Processing Requirements
Wilkes University's fiscal year ends on May 31, 2016. Please see below from the controller's office.
Year End Processing Requirements
April 29, 2016
To: All University Employees
From: Controller’s Office & Business Operations
Wilkes University's fiscal year ends on May 31, 2016. 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
Purchase Requisitions May 4, 2016
Purchase Orders May 11, 2016
PCARD Purchases May 13, 2016
Accounts Payable June 1, 2016
Receiving documents June 3, 2016
Last day to process PO’s
Date of last purchases
Travel Reimbursements Grant funded expenditures
Packing slips, etc.
All materials which are to be charged to the 2016 budget year must be received by Tuesday, May 31, 2016. Any item received on or after June 1, 2016 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 3, 2016.
See attached guidance for more information on charging to the correct fiscal year.
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 occurring on or after June 1 must be charged to FY 2017. All travel expenses exceeding $3,000 will be reviewed by the Accounting Department for correct recording and charged/ adjusted accordingly.
Please review your accounts carefully. Transfers and reallocations cannot be processed after
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
GUIDANCE FOR CHARGING EXPENDITURES TO THE CORRECT YEAR
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 fiscal
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 fiscal 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.
Unused lab fee funds will be transferred into a capital rollover account for use in
subsequent years, provided that the organization has not produced an operating fund
Funds that have been transferred to a capital account prior to year-end may be carried over and used for a capital item that will be received in the next year, PROVIDED THAT A VALID PURCHASE ORDER HAS BEEN RECEIVED BY THE VENDOR BY MAY 31.