# Presentation: 162585

## Year End Closing 

- ITA – August 2005

- Year End Training August 2005

**Notes:**
Year End Training

We are very pleased to have you in training today, so that we can work together on making the year end closing process as smooth as possible.  

We have a lot of material to cover and we hope the material is presented in an easy to follow format. Please feel free to ask any questions during the training, but if we start to get bogged down, we might ask you to hold your questions until after each session.

We would like to make this informal and interactive, so that you receive the most benefit from the session.  We will be writing down the most relevant questions and providing answers to all participants, not only in this class, but in all the classes.

## Training Overview

- Certification Reports
- Year End Closing Procedures
- Signature Cards
- Questions

- Year End Training August 2005

**Notes:**
Training Overview
The major topics we will be covering are:
	Defining what an accrual is
	What this year requirements will be for the Certification Reports
	Year End Closing Procedures, highlighting major activities
 		and hopefully at the end, we will have time to answer any of your Questions
Our major focus for these topics, is year end requirements.  We want to make year end processing easy for everyone, which also includes us!  At year end, we are required to do certain functions that might seem redundant and a waste of time, because maybe we don’t fully understand the underlying requirements.  Hopefully, this class will reduce some of the confusion of year end.  

I also want to mention, that the class is targeted for individuals that have had some previous experience with working with ITA accounting reports and providing documentation for obligations and payments to NBC.  In a 3 hour training session, it would be impossible to explain every item in detail, so once again our primary focus is on year end reporting requirements.

## Certification Reports

**The Director of Accounting will certify ITA’s  consolidated  Unliquidated Obligations and Accruals Reports**
**Officially designated Resource Coordinators are the responsible manager at the organization level**
**Certification reports list all of an organization’s unliquidated orders and accounts payable at a month end**

- Year End Training August 2005

## Certification Reports

- ITA143 Unliquidated Obligations by Organization Certification Report as of July 31, 2005
- ITA673 Accruals by Organization Certification Report as of July 31, 2005

- Year End Training August 2005

**Notes:**
These are the 2 reports which must be certified.

## ITA143 Unliquidated Obligations

- Every transaction listed for your organization must be validated for the following:
**Correct cost structure  **
**Correct dollar amount**
**Will the transaction require future payment by ITA?**
- Yes, mark the transaction as “Valid”
- No, mark the transaction as “In-valid”, and NBC will deobligate the transaction
- However, if billed in the subsequent year, current year funding will be applied

- Year End Training August 2005

**Notes:**
Even though the instruction say you can use a check mark, we would prefer that you write valid of in-valid, because we don’t know if you are checking that it is valid or in-valid.

## ITA143 Unliquidated Obligations

- If the transaction is correct and will require future payment, but not accurately charged to the correct accounting code, then:
- Mark the transaction as “Invalid – AOC” and attach an Advice of Correction to the ITA143 Report
- Contact Roxanna Allen of OFM Accounting if unsure how to correct errors

- Year End Training August 2005

## ITA143 Unliquidated Obligations

- Is there a transaction which you feel should be obligated, but is not on the report?
- Attach a copy of the obligating document to the report and write the Order # on the ITA143 Report

- Year End Training August 2005

**Notes:**
NBC will contact you if there is a legitimate reason why it’s not showing on your report (already paid; charged to another cost center.)

## ITA143 Unliquidated Obligations

- Non-Travel Unliquidated Obligations marked as “Valid”:
- We need you to tell us if the order will be received by September 30, 2005
- We need you to estimate the dollar amount of the Unliquidated Obligation that will be received by September 30.  Record this amount in the “9/30 Accrual Amount” column.  This will be the basis of the accrual for year end

- Year End Training August 2005

## ITA143 Unliquidated Obligations

- Example
- Valid obligation for $10,000 for a piece of equipment, estimated delivery date is August 15, 2005
- Input in the “9/30 Accrual Column” $10,000

- Year End Training August 2005

**Notes:**
NBC will enter the accrual into FFS.  If the invoice is paid before year end, then the payment will liquidate the accrual.  

## ITA143 Unliquidated Obligations

- Example
- Valid obligation for $100,000 for a Contractor to provide a service from July 1, 2005 to September 30, 2005
- Input in the “9/30 Accrual Column” $100,000

- Year End Training August 2005

**Notes:**
NBC will enter the accrual into FFS.  If the invoice is paid before year end, then the payment will liquidate the accrual.

## ITA143 Unliquidated Obligations

- Example
- Valid obligation for $15,000, for a training class held for Interns. Class dates October 14th through October 17th. (Class dates are after 9/30)
- Input in the “9/30 Accrual Column” $0

- Year End Training August 2005

**Notes:**
There will be NO services received by 9/30.

## ITA143 Unliquidated Obligations

**The officially designated Resource Coordinator must print their name and sign the ITA143 form.  Please include phone number**
**Validation must be completed by Wednesday August 31****st**
**Send to Roxanna Allen, Room 4113 HCHB**
**The Director of Accounting will contact Resource Coordinators with any questions regarding validation**

- Year End Training August 2005

## ITA143 Unliquidated Obligations

- 			EXAMPLE

- Year End Training August 2005

## ITA673 Accruals

- Every transaction listed for your organization must be validated for the following:
**Correct cost structure  **
**Correct dollar amount**
**Will the transaction require future payment by ITA?**
- Yes, mark the transaction as “Valid”
- No, mark the transaction as “In-valid”, and NBC will deaccrue and deobligate the transaction
- However, if billed in the subsequent year, current year funding will be applied

- Year End Training August 2005

## ITA673 Accruals

- If the transaction is correct and will require future payment, but not accurately charged to the correct accounting code, then:
- Mark the transaction as “Invalid – AOC” and attach an Advice of Correction to the ITA673 Report
- Contact Roxanna Allen of OFM Accounting if unsure how to correct errors

- Year End Training August 2005

## ITA673 Accruals

- Remember....accruals are for goods received or services performed, which have not been paid
- Accruals should be fairly current since it is very unlikely that a contractor would perform a service or deliver goods, without wanting to be paid

- Year End Training August 2005

## ITA673 Accruals

**The officially designated Resource Coordinator must print their name and sign the ITA673 form.  Please include phone number**
**Validation must be completed by Wednesday August 31****st**
**Send to Roxanna Allen, Room 4113 HCHB**
**The Director of Accounting will contact Resource Coordinators with any questions regarding validation**

- Year End Training August 2005

## ITA673 Accruals

- EXAMPLE

- Year End Training August 2005

## ITA143 and ITA673 Reports

- Discussion of program specific questions related to the ITA143 and ITA673 reports will follow at the end of the session.

- Year End Training August 2005

## Year End Closing

- Internal Timeframes
- Procedures
- How can you help?
- Contacts

- Year End Training August 2005

**Notes:**
In this section of the training we will be getting into the specific year end closing procedures. We have include NBC and ITA contacts you can call for any types of questions. And will summarize how you can help in the year end closing.

## Year End - Timeframes

- OMB Bulletin 01-09, Form and Content of Agency Financial Statements and the Department of Commerce internally mandated dates drive when year end reporting must be completed
- Financial Statements due date:
- ITA must complete data by September 30,2005
- Department of Commerce must complete data by October 11, 2005

- Year End Training August 2005

## Year End Closing

- Commitments
- Commitments will be recorded in FFS beginning August 1, 2005
- All CD-410s, CD-435s and MOUs should be sent through OFM Accounting
- Commitments appear in FFS reports as RQ documents
- Commitments reduce funds availability

- Year End Training August 2005

## Year End Closing

- Commitments continued...
- Any commitments that do not have an award document by September 30, 2005 will be cancelled
- Cancelled commitments reinstate available funding
- OOMS will provide status of open commitments to OFM Accounting on a weekly basis
- OFM Accounting will monitor open commitments on a weekly basis and provide status to Resource Coordinators.

- Year End Training August 2005

## Year End Closing

- Obligations
- Requisition number is populated in the Description field of the ITA100 and the ITA102 reports
- Required cut-off date is October 3rd for entry of obligations into FFS

- Year End Training August 2005

**Notes:**
We need you to work with you procurement offices, know when the deadlines are for getting procurements processed.  

At year end, you want to know how you are doing against your budget, if obligations are not entered in FFS, it is hard for you to project.  We hope to have all obligations from your procurement offices, in the system by October 3rd.

## Year End Closing

- Travel – TDY
- Travel orders must be received at OFM Accounting by September 30th
- Travel, using expiring funds (2004/2005), that will take place in FY 2006, can be obligated until September 30, 2005
- Travel, using no-year funds, that will take place now until October 15, 2005 can be obligated until September 30, 2005
- Any travel, using no-year funds, that has a requirement for reservations to be made in advance of September 30th, and will not be completed until later than October 15, 2005, can be obligated until September 30, 2005

- Year End Training August 2005

**Notes:**
TDY travel processing will be the same as last year.  Accruals will be automatically done in FFS, based upon the obligations recorded in the system on October 3rd.  This means,  if there is a travel order in FFS on October 3rd for travel occurring in September and prior, an accrual will automatically be established.    You do not have to complete a Year End Accrual Form, but you did need to make sure that the obligation amounts are correct since this will be the basis for the accrual.

The travel accrual will be a “YE” document.  This document will reduce the obligation and create an accrual.  The number of the “YE” document will be the same as the travel order number.

Also, during 9/25 - 10/03, no travel reimbursement will be processed, this is due to year end cash cutoff requirements with Treasury.

## Year End Closing

- Travel-TDY continued...
- Automated process for travel accruals will be based upon obligation amounts recorded in FFS as of October 3, 2005
- FFS Document number will be a “YE” with the same travel order number
- Travel vouchers will not be processed from September 27th through September 30, 2005 due to disbursement deadlines designated by the Department of the Treasury

- Year End Training August 2005

## Year End Closing

- Payroll
- Pay period 0518, ending September 17th will be the basis for the year end accrual of 100%
- Payroll accruals will be reflected in Accounting Reports dated September 26th
- Payroll accrual amounts cannot be adjusted
- Cash Awards accrued from the ‘Cash Award Report’ prepared by Human Resources with input from Resource Coordinators

- Year End Training August 2005

**Notes:**
Pay period 18, ending September 20th will be the basis for the year end accrual.  This means, that when PP18 is posted, it will automatically accrue 7 additional days of payroll costs.  The costs will be posted to the same accounting structures that were posted on PP18.  The accrual amounts cannot be adjusted in FFS, since the accrual is done through the payroll interface process, but remember it is only an estimate.  The accrued will be in the October 6th reports.

Cash award accruals will be based on the remaining amount of each Deputy Assistant Secretary’s approved cash award pool after pay period 0318 is processed. ITA has approximately 25 cash award pools.   ITA Headquarters Personnel Office will provide to ITA Budget Personnel the ‘Cash Award Report’.  This report will show how much of the each DASs cash award pool  is remaining after PP0318.  Budget will work with the Resource Coordinators to determine the accounting codes to assign each cash award accrual listed on the report.  If the remaining award amount shown on the report will not be fully used, then the accrual amount can be reduced.

## Year End Closing

- Contracts/Grants/Purchase/Federal Orders _**obligated**_ in FFS
- Amounts obligated at 7/31/05, the accrual will be based upon input from the ITA143 and ITA673 reports
- OFM Accounting will determine the accrual amount based upon review of the purchase order or contract terms for those items obligated or modifications to obligations made after August 1st

- Year End Training August 2005

**Notes:**
This is a new procedure!
The accruals for Contracts/Grants/Purchase Orders and Federal orders that are obligated in FFS the accruals will be based upon:

Either the:
 The amount you told us to accrue on the Certification reports for obligations that were recorded in FFS on June 30, 2003
or
2) If the obligation was created or modified on or after July 1, 2003, NBC will be determining the accrual amount based upon review of the purchase order or contract terms.

You will not have to complete a year end accrual form for items that have a formal obligating document.  

## Year End Closing

- Items _**not**_** **_**obligated**_ in FFS, but goods and or services will be received by September 30th :
- Complete a “Year End Accrual Form” for items $1,000 and greater, need to be at NBC by September 30th.  This includes credit card charges not posted to your Citibank statement by September 30th, EEO Settlements, Medical Payments and SF-1164s that have not been filed by September 30th
- OFM Accounting will accrue Domestic Phone Bills
- OOMS will provide the accruals for phone services charged to Centralized Services

- Year End Training August 2005

**Notes:**
The accruals for items which do NOT have a formal obligating document but goods or services will be received by September 30th and are NOT CREDIT CARD PURCHASES.
An accrual form will be required, and should be submitted to Denver by 10/03.  We are requesting that a form only be submitted for items greater than $1,000.  These forms must first go to your budget office before sending to Denver.

An example of this type of accrual would be a work order for repairs in the HQ building.  The number of these types of accruals should be minimal.

Domestic phone bills, NBC  will be estimating the accruals, from the phone bill logs that are maintained by NBC.

This is basically the same procedure as in previous years.

## Year End Closing

- Credit Card Purchases
- Account code changes for purchases made prior to the September 5th statement, need to be received at NBC no later than September 16, 2005
- Purchases are and will continue to be posted to your Citibank account statement daily,  through September 30, 2005.
- The ITA100 Itemized Transaction Report will be run on a daily basis for September 2005.

- Year End Training August 2005

**Notes:**
Purchases posted to your 9/22/03 Citibank statement will be accrued automatically.  This is the same as last year.  NBC will have the 9/22/03 invoice as the basis for the accrual.

New procedure this year.  Purchases posted to your Citibank statement from 9/23/03 to 10/02/03, will also be automatically accrued.  We will be receiving a file from Citibank as the basis for the accrual.  We picked 10/02 as the cutoff date, since it should capture all of your purchases made prior to September 30th.  

## Year End Closing

- Credit Card Purchases (continued)
- Please review transactions and submit AOC’s weekly beginning September 12, 2005 for any corrections other than Budget Object Class.
- Statements can be reviewed on-line on CitiDirect to verify purchases posted to your account through 09/30/05.  It is suggested review be done weekly.

- Year End Training August 2005

**Notes:**
We have been told that maybe all of your purchase made prior to September 30th, might not post to your account, so purchases made prior to September 30th NOT posted to your account by October 2nd, you will need to submit a Year End Accrual Form.  

We are requesting that the accrual form only be completed for items greater than $1,000.  Lets say you have 4 $250 purchases,  you can aggregate them on one line of the form.  Each cardholder should submit only one form and on the form include the cardholders name and last 4 digits of the credit card number.  Instructions for completing the accrual form can be found in the year end closing procedures memo.

If cardholders do not follow these instructions, and submit accrual forms for items posted to their accounts by 10/02, they could get double accrued, which might make you overspend your budget. 

## Year End Closing

- Credit Card Purchases (continued)
- Purchases made prior to 9/30/05, **NOT** posted to your account by 09/30/05, **and** are greater than $1,000.00, submit a “Year End Accrual Form”, to OFM Accounting by September 30th, 2005.
- Include Cardholders Name and last 4 digits of Credit Card number on the “Year End Accrual Form”

- Year End Training August 2005

**Notes:**
- Cardholders can review their statements on-line on Citidirect to verify purchases posted to their account through 10/02/02. 
 - It should be noted that account code changes for purchases made prior to the September 22nd statement, need to be received at NBC no later than October 3rd, for the changes to be made.
 - The accruals that will be recorded from the Citibank file, for purchases made September 23 - September 30th, you cannot change to accounting structure, it will be recorded against the default accounting code associated with each cardholder.  The change cannot be made based on how the entry is being recorded in FFS, so it might make sense to get your purchases done so they hit the September 22nd statement.
To summarize the credit card process:
- Purchases on the 9/22 statement will be automatically accrued and account code changes can be made if received at NBC no later that October 3rd.
 - Purchases made from 9/23 - 9/30 will be automatically accrued if posted to the cardholder account by 10/02.  Account code changes cannot be done on these purchases, they will remain on the cardholders default account.
- Purchase made but not posted to the cardholders account by 10/02, will only be accrued if a Year End Accrual Form is completed and sent to NBC by October 3rd.
 - Accruals can get doubled up, if accrual forms are submitted for purchases posted to cardholders accounts by 10/02.

## Year End Closing

- Collections
- Lockbox collections must be at the lockbox by September 30th
- Credit card collections must be accomplished by September 30th

- Year End Training August 2005

**Notes:**
Collections 
Lockbox collections must be at the lockbox by September 30th 
Credit card collections must be accomplished by September 30th 
Entry into E-Menu must be accomplished by  October 3rd

All the lockbox and credit card collections that are accomplished by September 30th should appear on your October 6th document direct reports.

## Year End Closing

- Reimbursable Agreements – ITA is the servicing agency.
- Review all charges in reimbursable accounts for accuracy, submit an AOC for any changes
- OFM Accounting is monitoring funding balances of agreements.  Resource Coordinators will be notified of availability issues

- Year End Training August 2005

**Notes:**
Reimbursable Agreements – ITA is the servicing agency.  These are Fund 08 accounts.
Review all charges in reimbursable accounts for accuracy, submit an AOC for any changes
Ensure adequate funding is available

We have established some default accounts, mainly for overseas charges from the State Department that must be cleared timely and have a zero balance when the books are closed.  As for any reimbursable account, we cannot close the books if any account is overspent.  So we really need you to stay on top of these accounts.

## Year End Closing

- Accounts Receivable
- Billing documentation needs to be received by September 21st:
- Gift and Bequest
- Other Miscellaneous billings (very rare)

- Year End Training August 2005

**Notes:**
Accounts Receivable
Billing documentation needs to be received by September 24th
Gift and Bequest
Other Miscellaneous billings (very rare)

ITA does not have much activity in this area, but to allow us to send out bill, we need them at least 3 workdays before the end of the year.

## Year End Closing

- Advice of Corrections (AOC)
- Review Document Direct Reports each week, and daily beginning September 26th, and request AOC’s immediately upon discovery of a correction
- AOC submitter and date submitted are populated in the Description field of the ITA100 and the ITA102 reports
- Last day to process AOC’s in FFS is Monday October 3rd, due to disbursement deadlines designated by the Department of the Treasury

- Year End Training August 2005

**Notes:**
Advice of Corrections (AOC)
Review Document Direct Reports each month, weekly in September, and request AOC’s immediately upon discovery of a error
Last day to process AOC’s in FFS is Friday October 3rd, due to year end cash cut-offs with Treasury

I need to stress the October 3rd deadline, we cannot be flexible on this.  If AOC’s are received after this date, they can still be processed, but in FY2004.  ITA personnel have been really good this year on submitting AOC’s throughout the year, so hopefully the numbers at year end should not be that significant.

## Year End Closing

- All Year End Accrual Forms must be delivered to OFM Accounting, Roxanna Allen
- All Advice of Corrections (AOC) must be delivered to OFM Accounting, Roxanna Allen

- Year End Training August 2005

**Notes:**
To ensure that funding is available for accruals and AOC’s, OFM is requiring that all accrual forms be submitted through your budget analyst and the accrual form has been modified to include a signature line for your budget analyst. Since the procedures have changed this year, really the only Year End accrual forms required, should be for UNOBLIGATED items and CC purchase not posted to cardholders accounts by 10/02.  The number of accrual form this year should be reduced significantly.

The accrual forms and AOC’s are due to Denver by Friday October 3rd, so you should have them to your Budget analyst no later than Thursday October 2nd.

## Year End – How can you help?

- Continually review your weekly reports, daily beginning the September 26th
- Send AOCs to OFM Accounting, Roxanna Allen, immediately upon discovery of an error
- Perform the Certifications – Obligations/Accounts Payables
- Timely submit credit card purchase statements for changes to accounting codes

- Year End Training August 2005

**Notes:**
So to summarize the year end requirements, that you can assist with are:

Continually review your monthly reports, weekly during the month of September
Send corrections to NBC for entry immediately upon discovery of a error
Perform the Certifications – Obligations/Accruals
Timely submit credit card purchase statements for changes to accounting codes

## Year End – How can you help?

- Complete “Year End Accrual Forms” for items not formally obligated, that will be received by year end (should be a minimal number):
- Call Contacts with any questions

- Year End Training August 2005

**Notes:**
Complete “Year End Accrual Forms” for items not formally obligated, but will be received by year end (should be a minimal number)
Work Orders
Call NBC Contacts with any questions.

## Year End - Contacts

| Area | Name | Phone Number |
| --- | --- | --- |
| Lead Year End Coordinator | Leslie Hyland | (202)482-5434 |
| General Questions | Roxanna Allen | (202)482-8363 |
| Budget | Kathie Laws | 303-969-7780 X2533 |
| Obligations | Sheila Dougherty | 303-969-7780 X2419 |
| Travel | Chris Barned | 303-969-7780 X2407 |
| Payroll Accruals | Tammy Goracke | 303-969-7780 X2514 |
| Non-Payroll Accruals | Wendy Fark | 303-969-7780 X2468 |
| Advice of Corrections | Wendy Fark | 303-969-7780 X2468 |
| Citibank Statements | Sandy Neff | 303-969-7780 X2234 |
| Interagency Agreements | Billie Kramer | 303-969-7780 X2528 |
| IPAC Charges | Kristine Claiborne | 303-969-7780 X2637 |
| Miscellaneous Receivables | Billie Kramer | 303-969-7780 X2528 |
| Collections | Karen Hall | 303-969-7780 X2515 |
| Property | Judi Lombardi | 303-969-7780 X2535 |

- Year End Training August 2005

**Notes:**
This is a list of people at NBC that can help you with any question or problem you might have, by functional area.  Please use it, so that we can assist you in understanding what needs to be done.

## Signature Cards

- Authorizing officials should ensure a valid signature card is on file as of September 15, 2005.
- Verify with Resource Coordinator as to your ability to authorize spending
- Designated officials should both print and sign their names when approving spending documents
- Travel orders, CD-435, CD-410, certification reports, AOC, SF-1, SF-1164, year end accruals, credit card approvals, etc.
- Non-compliance of the above will result in processing delays of documents.

- Year End Training August 2005

## Year End Closing 

- QUESTIONS ?

- Year End Training August 2005