# Presentation: 162606

## Year End Closing 

- ITA – August 2006

- Year End Training August 2006

**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

- Financial Coding Database
- 2 Year Funding Issues
- Year End Closing Procedures
- Questions

- Year End Training August 2006

**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.

## Financial Coding Database

- What is it? List of Valid Accounting Codes to replace EMenu Financial Coding Web site
- How is it used? Show PDF file(s)
- How is it updated? Request to ITA OFM for new organization, project code.  Exception: New Trade Event projects from E-Menu (PAY.GOV), State Department RFMS
- How is it accessed? Web site:  https://ourplace.ita.doc.gov/

- Year End Training August 2006

**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.

## Financial Coding Database - old

- Year End Training August 2006

**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.

## ITA Financial Coding Web site-new

- Year End Training August 2006

## 2 Year Funding Issues

- In FY 2007 ITA will have 3 different “buckets” of available funding
- (13 6/7 1250) Carryover plus recoveries from obligations made in FY 2006 against 2006/2007 funding
- (13 7/8 1250) New authority under 2007/2008
- (13X1250) Recoveries of No-Year funding*
- ***Use of recoveries is requested thru OFM **
**(ITA Accounting Memorandum 2006-06, 07/13/2006)**

- Year End Training August 2006

**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.

## 2 Year Funding Issues

**13 6/7 1250 Funding**
- This funding will be used domestically
- De-obligations of prior year obligations (recorded in FY 2006) will generate recoveries*
- 13 6/7 1250  funding, carryover and recoveries, will expire on September 30 2007.  In future years any recoveries generated or unused carryover balance cannot be used for new obligations
- * **Use of recoveries is requested thru OFM **
**(ITA Accounting Memorandum 2006-06, 07/13/2006)**

- Year End Training August 2006

**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.

## FY 2007 portrayal of ITA503 Report

- Year End Training August 2006

## ITA503 for No-Year O&A Funding

- Year End Training August 2006

## ITA500 – FY 2006 & Upcoming 2007

- Year End Training August 2006

## 2 Year Funding Issues

- 13 7/8 1250 Funding
- New authority for use in FY 2007/2008
- Normal spending occurs with this funding as it was with 13 6/7 1250 funding
- Starting in PP 2006 20, the majority of Payroll costs will be charged to this funding
- Citibank purchase card account codes will be changed to this for the majority of accounting code setup in   Citi-Direct the first part of October by OFM

- Year End Training August 2006

**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.

## Cable Funding

- Yearend cutoff for sending out Post held cables:  Must be released to State Department no later than Sept 22, 2006
- Yearend cutoff for sending out Washington held cables:  Must be released to State Department no later than Sept 29, 2006
- Contingent upon receiving FY 2007 O&A authority, Program areas need to send out a Global broadcast cable providing funding under the likely scenario of a Continuing Resolution.  The cable needs to be routed through OFM no later than October 6, 2006. The cable needs to cite 13 7/8 1250 funding
- Deposit Spending Authority (13 X1250) funding is no-year in nature and cable authority is available as soon as apportioned amounts are provided by OFM Budget

- Year End Training August 2006

## Post Held Withdrawal – Sept 30, 2006 (13X1250 Account)

- Withdrawals are tied to prior year recoveries, i.e., obligated in prior fiscal year(s) but deobligated or payment less than obligation in current fiscal year
- State Department will automatically withdraw any unobligated balance from each post allotment for no-year accounts, 13X1250.
- Starting in FY 2007 and continuing in a real-time basis, all recovered amounts during the year will automatically be withdrawn from post held allotment funds for no-year accounts, 13X1250.
- Program areas do not have to issue manual cables to withdraw funding, this will be a automated State Department process.  Note: The 13X1250 account includes the Deposit Spending funding.

- Year End Training August 2006

## Withdrawl of Funding – 13 6/7 1250 Account

- OFM will withdraw any unobligated funding from the post held funding, 13 6/7 1250 account as of 09/30/2006, exception is AID funding 13 6/71250 issued but that has a zero obligation allotment amount at 09/30/2006 will not be withdrawn
- Program areas should not issue withdrawal cables to handle unobligated yearend funding balances for 13 6/71250
- Periodically, in FY 2007, OFM will withdraw any recoveries made for the post held funding for 13 6/7 1250
- Cable issuances for FY 2007 O&A funding will cite 13 7/8 1250 funding authority

- Year End Training August 2006

## Upward Spending Treatment for Post Held Allotments

- During Fiscal Year 2007, for the limited exceptions where a payment exceeds the obligation amount for a post held authority where no funding remains for the allotment account, 13X1250/13 6/7 1250, contact OFM, Roxanna Allen

- Year End Training August 2006

## Year End Closing

- Internal Timeframes
- Procedures
- Contacts

- Year End Training August 2006

**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 Circular A-136, Financial Reporting Requirements, and the Department of Commerce internally mandated dates drive when year end reporting must be completed
- Financial Statements due date:
- ITA must have completed data by September 29, 2006

- Year End Training August 2006

## Year End Closing

- Commitments
- Commitments appear in FFS reports as RQ documents, See ITA143 example for outstanding commitment balance
- Any commitments that do not have an award document by September 30, 2006 will be cancelled
- Cancelled commitments increase available funding

- Year End Training August 2006

## Commitment Balance on ITA143

- Year End Training August 2006

## Year End Closing

- Obligations
- Requisition number is populated in the Description field of the ITA100 and the ITA102 reports

- Year End Training August 2006

**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**
- Under 31 U.S.C. Section 1501; “The travel order in itself does not constitute a contractual obligation... the obligation is not incurred until the travel is actually performed.”
- Travel orders where travel will begin prior to September 30, must be received at OFM Accounting by **September 26****th**.
- Only the amount of expense that will be incurred as of September 30th will be obligated, i.e. tickets and per diem.

- Year End Training August 2006

**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
- FFS travel accrual document will be a “YE”
- Travel vouchers will not be processed from September 26th through September 30, 2006 due to disbursement deadlines designated by the Department of the Treasury

- Year End Training August 2006

## Year End Closing

**Travel-Permanent Change of Station (PCS)**
- Under 31 U.S.C. Section 1501; “for all [reimbursable] travel and transportation expenses of a transferred employee, the agency should record the obligation against the appropriation current when the employee is issued travel orders.”
- PCS travel orders must be received at OFM Accounting by **September 26****th**.
- The entire amount of the order will obligated
- In FY2007, revised procedures for processing financial management documents for PCS will be implemented
**    ****ITA Accounting Memorandum 2006 – 14, 07/03/2006)**

- Year End Training August 2006

## Year End Closing

- Payroll - NFC
- Pay period 0618, ending September 16th 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 will be prepared by the Resource Coordinators, and forwarded to OFM, Roxanna Allen by September 27th.

- Year End Training August 2006

**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 7/31/06, 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 2006

**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**, and send to OFM, Roxanna Allen or Crystal Bush, by **September 29th**.  This includes EEO Settlements, Medical Payments and SF-1164s
- OFM Accounting will accrue Domestic Phone Bills
- OOMS will provide the accruals for phone services charged to Centralized Services

- Year End Training August 2006

**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 4th statement, need to be received at NBC no later than **September 15****th**.
- Purchases are and will continue to be posted to your Citibank account statement daily,  through September 29, 2006.
- The ITA100 Itemized Transaction Report will be run on a daily basis for September 2006.

- Year End Training August 2006

**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 to OFM, Roxanna Allen or Crystal Bush, beginning September 11, 2006 for any corrections other than Budget Object Class.
- Statements can be reviewed on-line on CitiDirect to verify purchases posted to your account through 09/29/06.  It is suggested review be done weekly.

- Year End Training August 2006

**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 9/29/06, **NOT** posted to your account by 09/29/06, **and** are **greater than $1,000.00**, submit a “Year End Accrual Form”, to OFM, Roxanna Allen or Crystal Bush, by **September 29****th**.
- Include Cardholders Name and last 4 digits of Credit Card number on the “Year End Accrual Form”

- Year End Training August 2006

**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 29****th**
- Credit card collections must be processed by **September 29****th**

- Year End Training August 2006

**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 to OFM, Roxanna Allen or Crystal Bush, for any changes
- OFM Accounting is monitoring funding balances of agreements.  Resource Coordinators will be notified of availability issues by OFM, Vanessa Barksdale

- Year End Training August 2006

**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 20th**:
- Gift and Bequest
- Other Miscellaneous billings

- Year End Training August 2006

**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 18th, 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
- All AOC’s must be received in OFM Accounting by **September 29****th**,

- Year End Training August 2006

**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 - Contacts 

- Lead Year End Coordinator – HQ
-     	Roxanna Allen (202)482-8363
- Lead Year End Coordinator – NBC
-     	Tammy Goracke (303)969-7780 x2514

- Year End Training August 2006

## Year End Closing 

- QUESTIONS ?

- Year End Training August 2006