Financial Administration

Fiscal 2004 - 2005

  1. Fund 990 Clearing: Ensure that the cash balance in fund 990 is zero before the mid July cutoff. All revenue should initially be deposited to fund 990 and should be coded to 9198. Amounts should be cleared from 990 on SFS account 9182. Since the recommended accounts for deposit and clearing crosswalk to the same DOA code, the activity for 990 nets to $0 as required by the State Controller’s Office. Institutions that need to record other account codes in fund 990 for deposit and clearing must consult the DOA crosswalk table on the SFS website to ensure that deposit and clearing occur on the same DOA account code.

  2. Advanced Deposits: Ensure that advanced deposits are properly recorded in the old and new fiscal years. Revenues for the new fiscal year collected prior to June 30 should be recorded as deferred revenue in the old fiscal year with a debit to cash (6100) and a credit to deferred revenue (7400). All advanced deposit revenue initially deposited to fund 990 should be cleared to the appropriate fund so that the fund 990 balance at the end of the fiscal year is zero.

  3. Fund 966 Advance Tuition Fee Revenue: Fund 966 should only be used by those former WARF institutions that cannot record advance tuition deposits to fund 990 due to programming restrictions. Institutions still using fund 966 for advanced tuition deposits are strongly encouraged to move to fund 990 for all revenue deposits. The mechanics of using fund 966 should follow the instructions for fund 990 above.

  4. Deferred Revenue Clearing: During the July accounting period of the new fiscal year ensure that all amounts recorded to deferred revenue (7400) are cleared with a debit to deferred revenue (7400) and a credit to the appropriate revenue account.

  5. Vouchers Payable Between Years: During the July accounting period of the new fiscal year ensure that all amounts recorded to vouchers payable between years (7105) are cleared with a credit to vouchers payable between fiscal years and a debit to the appropriate expense account.

  6. Fund 402 M and D Programs: Spend budgets down prior to June 30. Verify that the combination of supply/expense, capital and financial aids budgets are not exceeded. Excess salary/fringe budget balances may not be used to offset deficits on other major classes. Institutions should contact Financial Administration as soon as it is known that excess 402 funds are available for reallocation to another institution

  7. Fund 420 and 421 Auxiliary funding for Lawton and Advanced Opportunity Grants: Verify that revenue transfers have been made from fund 128 and that the entire current year allocation has been spent. Important: these funds will not be available in FY06. Any cash balances remaining will lapse to the state general fund.

  8. Fund 128 Seg Fee Distributions: Ensure netting to zero.

  9. Federal overhead: Verify that fund 150 revenue in account 9905 (SFS institutions) equals fund 144 expenditures on account 3930 (SFS institutions).

  10. Fund 133 / Account 3930 (SFS institutions) expenditures: Must net to zero.

  11. Minnesota Reciprocity: Ensure that all balances on Account 9199 are in Fund 100.

  12. Extension Credit Fees: Verify that there are no credit extension fees in fund 131. Verify that there are no regular 131 credit instruction fees in fund 189.

  13. Funds 189 and 132 De-pooling: Verify that fund 104 expenditures equal budget and that there are no program /activity 2 expenditures on fund 104. Depooled institutions record all program 2 expenditures directly on fund 189.

  14. 107 matching funds for federal loan programs (Perkins, Nursing): Verify that match has been made for the correct amount. System guidelines require that the matching requirement for all institutions be satisfied before excess funds are available for resident undergraduate financial aid.

  15. Academic Excellence Scholars: Each institution should verify that the current year cash match contributed to the program is at least equal to the amount contributed in 91-92.

  16. Faculty salary advances: Verify a zero balance account 6160 for SFS institutions.

  17. Funds 123 and 124: Cash balance must be zero. Revenue to cover all expenditures must be transferred from fund 128 or from other PR funds.

  18. Review of Small Dollar Encumbrances: Institutions should review small dollar purchase orders resulting from failure to fully liquidate a purchase order when the obligation no longer exists. Purchase orders that have had no activity in the past 12 months should be closed at fiscal year end. All encumbrances under $50 should be closed by the mid July cutoff.

  19. Purchase Order Blankets: All blanket orders should be liquidated at fiscal year end. Carryover encumbrance budget authority should not include amounts for blanket orders. Only legally enforceable commitments for services and goods maybe encumbered. Purchase orders for Sundry Vendors, Miscellaneous Vendors or other nonspecific vendors may not be carried over.

  20. Purchase Order Justification: If it is necessary to carryover a purchase order for a second year the institution must justify the encumbrance carryover. Per DOA guidelines, written justification for all purchase orders carried over for a second year need to be on file with the System Controller by May 31.

  21. Library encumbrances: Institutional blanket encumbrances for library books may be adjusted to reflect the lesser of the unencumbered budget balance for library books and periodicals or the outstanding book orders at June 30. No budget transfers may be made to increase the book budget.

  22. Fund 136 payroll default accounts: Verify that any balances are appropriate.

  23. Segregated funds (160, 161, 162, 164, 168, 190, 191): Verify that balances are appropriate, with no overdrafts. Verify that all expenditures are within budgets by major class. Transactions that cause Segregated State funds to overdraft by major class will reject in WiSMART.

  24. Federal administrative expense: Verify that the combined administrative expense reimbursement on (Account 9905 SFS) for funds 145, 146, 147 and 148 is offset by the (Account 9905 ) total in fund 144.

  25. Travel Advances: Verify that only SFS accounts 6165 and 6166 are recorded on this fund. SFS Accounts for travel expenditures may not be used on fund 991. Institutions should be able to substantiate the balance of travel advances recorded in SFS.

  26. Inter-Institutional Agreements (IIAs): Ensure that all IIAs for the closing fiscal year have been processed by both the buying and the selling institutions.

  27. Fund 118 Industrial Development Research: Verify that fund 118 budget has been spent down to zero and that matching requirements have been met. Unspent dollars in this appropriation lapse back to the state general fund at fiscal year end. Institutions should report any unneeded budget balance to the System Controller’s Office as soon as possible.

  28. Fund 119 Distinguished Professors: Verify that fund 119 budget has been spent down to zero and that matching requirements have been met. Unspent dollars in this appropriation lapse back to the state general fund at fiscal year end. Institutions should report any unneeded budget balance to the System Controller’s Office as soon as possible.

  29. Accounts Receivable Write-offs: Verify that uncollectable accounts receivable have been written off.

  30. Credit Memo Write-offs: Verify that worthless credit memos have been written off.

  31. Fund 145 Workstudy Fringes: Verify that there is no employer share of workstudy fringes on fund 145.

  32. Accounts Payable Balances: Verify that any outstanding balance in Accounts Payable (7100) is reconciled to the detail unpaid vouchers supporting that total. Submit an electronic report containing that reconciliation data to Financial Administration by July 30th. By agreement with the State Controller’s Office the UW System will be able to provide a detail reconciliation of the summary accounts payable balance in WiSMART.

  33. Accounts Receivable Balances: Verify that any outstanding Accounts Receivable balances (6200 and 6210) are reconciled to the detail unpaid invoices that support the total. Submit a report containing that reconciliation data to Financial Administration by July 30th.

  34. Out of Balance Journal Verification: Run out of balance queries and Nvision reports to verify that there are no outstanding orphan transactions.

CONTROLLER CERTIFICATION: I certify that the yearend checklist procedures listed above have been performed.

_________________________________________________________________ Date______________________