Year End Close

The fiscal year 2021 will end on Tuesday, June 30, 2021. As in the past, FAS will close the books through a series of steps called "closings." Steps 1 through 5 will assist in the facilitation of those closings.

Adhere to Key Dates

Review the Year End Calendar to see all of the deadlines for the FY21 Year End Close. It is very important that we recognize all FY21 revenue and expenses in FY21. Be mindful of any deadlines and deliverables.

Some key dates include:

arrow June 24 - Concur Reports Submitted and Approved

arrow June 24 - Final FY21 Invoices to AP

arrow July 13 - AP Accrual information due from FCOR, Museums and IFI

arrow July 14 - All journal entries due


Also, to help keep track of deadlines, we have created a shared calendar in Outlook called "FAS Finance Deadlines" that also 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 Balances

It is important to verify that gift, endowment, and unrestricted designated funds are not in deficit at Fiscal Year End (FYE). Funds that are 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.

Deficit Summary in FAS Reporting Application

The first way is to run the Deficit Summary report in the new 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 (Orange).
 

Deficit Summary

 

Choose the Tub/Division/Department/Org, as appropriate and select the desired output format- 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.

 

 

Fund Management in HART

The second way is to 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 Type to RE, RG, and UD. 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 off 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.

 

Also, please review centrally controlled funds to ensure that charges are correct: 000760, 000780, 000800, 000801, 000802, and 016110.

Recognize 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 FY21 invoices to accrue.
  • Departments should also check for FY21 invoices received, but not in HCOM/B2P, and create a separate journal for these invoices, along with an Invoices to Accrue_Template for Tubs_Depts.
  • 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.
  • Last day for Accruals is Tuesday, July 13th at 5pm.

Resources

Review Transactions and Balances

Pay close attention to the following:

  • Check fund balances for deficits. Funds in deficit at the end of the year will be charged interest.
  • Process any outstanding reimbursements as soon as possible.
    • Concur reports must be approved by June 24th
  • Process any outstanding invoices as soon as possible.
    • Send Payment Requests to AP by June 24th to have the most complete financial view for the First Close. All complete invoices received by AP by June 24th will be available in reporting applications on July 2nd.
    • The final deadline for AP is June 24th 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 7th.
    • 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.

    In addition, to help in your review, please follow the Year End Checklist for FAS Units.

    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
    • Don't Forget

      COA validator is available to verify costing is valid for all users. Available Here
    • Don't Forget

      The weekly and biweekly paychecks paid to employees on Friday, July 2 is for worked performed in FY21 and will be posted into June FY21. In addition, two days from the weekly paycheck on 7/9/21 and biweekly paycheck on 7/16/21 will be accrued in June FY21.

       

       

       

    More Info

    AEA on June Gift expenses will be posted throughout the close. The initial assessment will be posted after AP is closed and will be in HART on July 6th. Subsequent expenses will be picked up throughout the close and will be updated in HART on July 8th, July 13th, July 16th and July 20th. See the calendar for more details.

    arrowYear End Checklist

    Who to Contact

    nancyHeather Fusco contact informationChristine Boyer contact informationmiguelina rodriguez contact informationmiguelina rodriguez contact info