Year End Close

The fiscal year 2022 will end on Thursday, June 30, 2022.

As in the past, FAS will close the books through a series of steps called "closings."  The information below will help FAS successfully close the books.

Review the Year End Calendar

Review University holidays and plan your department's or organization's needs accordingly.

Review the Year End Calendar for all FY22 year end deadlines.  Some key dates include:

  • June 23:  Concur reports submitted and approved
  • June 23:  Final FY22 invoices to Accounts Payable
  • June 30:  Buy-to-Pay (B2P) holds resolved
  • July 13:  Internal billings deadline
  • July 15:  Accruals, deferrals, and prepaid expense journals
  • July 15:  All remaining journal entries due


There is a shared calendar in Outlook called "FAS Finance Deadlines" that contains deadlines and events.

To view the shared calendar in Outlook, click Open Calendar-> Open Shared Calendar and type in FAS Finance Deadlines in the Name field.

Finance Calendar

Finance Calendar

Check Fund Balances for Deficits

Verify that gift, endowment, and unrestricted designated funds are not in deficit at fiscal year end.

* This step is important because funds in deficit as of the final June 30th closing will be charged interest in the following fiscal year. *

There are two ways to determine if an account in your area is carrying a deficit balance.
 
Method One:  Deficit Summary in the FAS Reporting Application

Run the Deficit Summary report in the FAS Reporting application located at FINReport.fas.harvard.edu.   Log in with your Harvard Key and chose Visit the app under the FAS Reporting Application. Click on the reports tab and select the Deficit Summary Report.
 

Deficit Summary

 

Choose the Tub/Division/Department/Org as appropriate and select the desired output format, either PDF or XLSX (Excel). This report will list Restricted Gifts, Restricted Endowments, and Unrestricted Designated funds that are currently in deficit.  It will also include offsetting surpluses and deficits by Org for the Fund in the Department.

 

Method Two:  Fund Management in HART

Run the Fund Management (FA) report within HART. Choose the balance as of the most recent month. Include the Tub and Primary Managing Org, and limit the Fund Types to RE (Restricted Endowment), RG (Restricted Gifts), and UD (Unrestricted Designated).

Select the radio button for Funds in Deficit Only:

funds in deficit only

If an account(s) in your Department is currently carrying a deficit balance, please take the necessary steps to clear it. The preferred process is to move expenses to another account that has similar terms and has a sufficient balance to cover the expenses in question. AEA should not be moved to another account. If you wish to zero out an account (carrying either a debit or credit balance), please contact Keith Bitely in the FAS Finance Office @ keith_bitely@harvard.edu.

 

* It is also important to review fund 016110 - FCOR^Faculty Start Up to ensure that all charges are assigned to a root.  There should be nothing on root 00000. *

Recognize Accruals, Deferrals, and Prepaids

It is important that the University recognizes both expenses and revenues in the correct period.  This includes:

  • AP Accruals:  Expenses for goods and services received in FY22 that have not been paid for in FY22
  • AR Accruals:  Revenue earned in FY22 that has not been received in FY22
  • Deferred Revenue:  Revenue earned in FY23 that has been received in FY22
  • Prepaid Expenses:  Expenses for goods and services that will be received in FY23 (or later) but have already been paid for in FY22

AP Accruals Guidelines

  • During the week of July 5th, departments should run Transaction Listings in HART and download to TLA Macro - Vz 5.1 to find FY22 invoices to accrue.
  • Departments should also check for FY22 invoices received, but not in B2P, and create a separate journal for these invoices, along with an Invoices to Accrue_Template for Departments.
  • All journal entries, along with completed invoice TLA template or Invoices to Accrue template, should be returned to Christine Boyer, christine_boyer@harvard.edu, in FAS Finance.
  • Accruals will be posted daily.

AR Accruals, Deferred Revenue, and Prepaid Expenses Guidelines

  • For AR accruals and deferred revenue, look at prior year Transaction Listing reports for examples of external revenue your department typically receives - pay attention to revenue received around year end and evaluate for which period it belongs
  • For prepaid expenses, ask yourself if your department has any expenses that are paid in a lump sum and span a long period of time.  Examples include service contracts, rental and lease contracts, license and software agreements.
  • For AR accruals and deferred revenue, journal entries and their support should be returned to Christine Boyer, christine_boyer@harvard.edu, in FAS Finance.
  • For prepaid expenses, journal entries and their support should be returned to Maria Geovanos, geovanos@fas.harvard.edu, in FAS Finance

The last day for Accruals, Deferrals, and Prepaids is Friday, July 15th at 5pm.

Resources

Review Transactions

Pay close attention to the following:

  • Process any outstanding reimbursements as soon as possible.
    • Concur reports must be approved by June 23rd
  • Process any outstanding invoices as soon as possible.
    • Send Payment Requests to AP by June 23rd to have the most complete financial view for the first close. All complete invoices received by AP by June 23rd will be available in reporting applications on July 2nd.
    • The final deadline for AP is June 23rd at 5:00pm.
  • Process all AR transactions in a timely manner.
    • For departments using Oracle AR, all invoices and credit memo information must be entered by July 6th.
  • Run dashboards to verify transactions have been posted accurately. Create correcting journals as quickly as possible. Export transaction listing data to TLX macro spreadsheet to facilitate journal entry creation and preserve audit trail. TLX is available here. The WEB ADI template is available here. In addition, users can cut and paste the costing from the new template to an Excel spreadsheet to verify that the costing does not violate cross validation rules. The Chart Validator spreadsheet is available here.

Final checks on transactions and balances:

  • Run transaction listings, budget variances, or other reports to determine:
    • Have all expenses been appropriately recorded?
    • Have all revenue been appropriately recorded?
    • Are all expenses and revenue recorded on the correct org/fund/activity/subactivity and root?
  • Check fund balances for deficits. Funds in deficit at the end of the year will be charged interest.

Use FAS Recommended Reports

There are dashboards that are available to help department in year end activities. The dashboard names, what they show, and why to run them are listed below. Please reach out to the ASAP team at fasasap@fas.harvard.edu if you have any questions.

Recommended Reports

System

Dashboard/Report Name

Purpose

Results

FINReport

Detail by COA Segment

  • To compare financial activity at 33 digit level actuals to budget
  • Summary financials at 33 digit level

HART

Budgets and Actuals Comparison
(any version)

  • To compare budget v. actual spending rates for prior and current fiscal years to confirm spending is aligned with budget
  • Annual operating, YTD budget and actual data for prior fiscal and current fiscal years

B2P

Open Commitment

  • To monitor purchase orders and prevent overspending on funds. Allows users to know if open POs exist on closed funds/grants, if goods are being received and suppliers are being paid in a timely manner
  • Open POS where funds have been opened but expenses have not yet posted to the General Ledger

HART

Transaction Listing
(any version)

  • To reconcile monthly financial transactions
  • To ensure income is recorded correctly
  • To ensure income/expense transfer have been completed
  • Details regarding every transaction posted to the General Ledger

FINReport

Deficit Summary

  • To review all deficits in Gifts, Endowments and Unrestricted Designated Funds
  • Funds that are in deficit in aggregate for the department.  Includes offsetting deficits and surpluses at the Org level

HART

Fund Management

  • To monitor fund balances and ensure that a deficit does not occur
  • To confirm income is recorded correctly
  • Prior year balance, income and expense of current year, and ending balance for all fund types

FINReport

Faculty Start Up Spending

  • To confirm there are no deficits in Faculty Start Up accounts and all Start Up is recorded to a Faculty member and not Root 00000
  • Faculty Start Up Balances by Root

B2P

Invoice Holds

  • To monitor PO invoice(s) that are awaiting receipts or have a pricing discrepancy that needs to be resolved for payment
  • A list of POs/Invoices that have not been received by a Shopper, list of invoices on hold for price or quantity issues

Who to Contact

General Accounting Inbox
Email:  fas_accounting@fas.harvard.edu


Nancy Guisinger                                         Christine Boyer                                          Maria Geovanos
Controller                                                      Assistant Controller                                     Financial and Compliance Analyst
Email:  nancy_guisinger@harvard.edu       Email:  christine_boyer@harvard.edu       Email:  geovanos@fas.harvard.edu


Linda Kuros                                                  Keith Bitely
Manager of Endowments and Gifts            Endowment and Gift Administrator
Email:  l_kuros@harvard.edu                      Email:  keith_bitely@harvard.edu