From: C.D. Crepps To: Department Contacts Cc: Finance Office Subject: year-end special accounting-part 1 Sent: THU,MAY30@1:03PM GREETINGS, It’s Friday Eve! The weekend is practically here! This reminder message is specifically for staff that may assist in the department’s purchasing processes. Please forward to other appropriate staff that may need to receive this message. I will be periodically broadcasting information to all of you via email, yet please do not hesitate to contact me by phone or email if you should have any questions or concerns for me about what is communicated. SPECIAL ACCOUNTING In preparation for our fiscal year-end and extra information needed, please see actions described below. Three areas of concern are: a. payments to make b. payments to receive c. other special accounting d. unused postage and other prepaid amounts e. inventory stock of supplies, materials, fuel, or other items The subject of this message includes parts a thru c from the above list. The remaining items will be discussed in a separate email sent a few weeks later. A. PAYMENTS TO MAKE Special year-end accounting is needed for payments for services that include periods of time from two or more fiscal years. For instance, with year-end purchasing, you’ve already been asked to see that vendors report services through June 30 separately from services performed after June 30. And, with goods or materials purchased, the delivery date (not the order date) determines what fiscal year the items will be charged to, which is one reason you are asked not to place new orders during the "new order blackout period" from June 9 to July 8 and the primary reason you are asked to have any ordered good and materials shipped by June 25. Also, remember to request from your vendors that all invoices should indicate a date or date range for services performed or to be performed. This requirement for a date range also applies to subscriptions, membership dues, and many other items that aren't considered goods and materials. When we issue payments in July, we can still charge the expenditure code from the previous fiscal year. We practice doing so throughout August, also. There is no need to rush a payment by June 30 to charge the expenditure code of the current fiscal year. To process an invoice after July 1 that is for the period before July 1, the payment in July will be charged to a special account, then the Finance Office will follow-up to make entries into our software that will charge the expenditure code from the previous fiscal year. When entering a requisition, choose among these couple of options: (1) Please make a note in the system as part of the requisition. Each line has a field for comments. In those comments, please enter the letters “PY”, then approve the requisition for processing payment. (2) Alternatively, please make a note on the documents attached to the requisition. Please have someone to record the expenditure code from the previous year and mark the letters PY on both sides of the expenditure code that you write (e.g. “PY 11.3.3.443.210 PY”), then approve the requisition for processing payment. Please contact Mary Kennedy or myself for more guidance on the special accounting needed for payments to make on your behalf. B. PAYMENTS TO RECEIVE Similarly, with payments received, we should separate out amounts that belong to a future fiscal year or a past fiscal year. a. Many departments operate on a cash basis, such as when the permit gets issued once payment is received (not before); thus, no special accounting may be needed on such payments received. b. Some departments bill their customers/patients/taxpayers and will share with me information concerning the outstanding/uncollected amounts; thus, no special accounting may be needed on such payments received (yet special accounting may still be needed for amounts billed). c. For other items not formerly billed through an accounts receivable system, special accounting may be needed on payments received when the payment amount or a portion of the payment amount relates to a future or past fiscal year. Example: Think about the County’s lease of airport hangars. A single lease payment may involve multiple months. If a lessee pays for the months of June and July in the same check, the amounts entered into the system will be prorated based on what portion belongs to each month that is in a different fiscal year and the accounts used will be different for the amount that belongs to a different fiscal year. Typically, prorating the amounts belonging to each fiscal year is the preferred calculation. Please contact Mary Kennedy or myself for more guidance on the special accounting needed for payments you receive. C. OTHER SPECIAL YEAR-END ACCOUNTING -JUN08: In this fiscal year, the last day to place new orders is June 8. (Continue creating purchase requisitions for invoices and other bills received.) -JUN11: To request an increase in total expenditure budget due to an award of grant funding, donations, or other special monies, and where expenditures will start before June 30, send information to Finance one week before its presented to the Board of County Commissioners. Information should include 1) the sources and amounts for each revenue code and 2) the accounts and amounts for each expenditure code. For new grants, send the grant award letter. -JUN23: Moving budget among expenditure lines/codes must be completed within the MCSJ financial system by Sunday, June 30. Please submit requested budget revisions at least a week earlier, by June 23. -JUL01: Send bank deposit (for ALL monies collected by the end of the workday on or before June 30) to Finance by 1p on Monday, July 1. (Reminder: ALL monies collected each entire day should be included in a bank deposit by the very next business day. If you are still cutting off earlier than the end of the workday, you will need to process an extra deposit for the amounts collected through the end of the workday on June 30. -JUL02: If you need checks written during the first check-write of July, do not create those purchase requisitions before July 2. Create those purchase requisitions on or after the second business day (Tuesday, July 2). -JUL09: In next fiscal year, the first day to place new orders starts on July 9. -JUL10: In next fiscal year, the first check-write is scheduled for July 10. Year-round, when an invoice does not indicate a date or date range that services were performed, write the applicable date or date range on the invoice and enter that same date or date range as the date reference with the description of the purchase requisition. The date reference is always the first thing entered in the purchase requisition description. CONCLUSION As June 30 approaches, excitement lingers in the air both within and around the Finance Office. This time of year brings about many extra steps as we strive to account for payments coming in and payments going out in the most appropriate way. When handling items related to next month (July) or other periods involving next fiscal year, up through June 30, special care should be taken to account for these items appropriately. Also, after June 30, when handling items related to periods involving a prior fiscal year, special care should be taken to account for these items appropriately. We appreciate your time and cooperation with handling these special matters. CONTACT ME I am available for one on one discussion and will gladly assist you in any way necessary. Best regards! --CD, 910-576-4221, ext. 1303