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. *

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.
 

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:

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 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 15^th at 5pm.

Resources

• Year End AP Accrual Instructions
• AR Accrual Quick Guide
• Deferred Revenue Quick Guide
• Prepaid Expense Quick Guide
   
• Controller’s Corner – Open office hours for any and all accounting questions.  No question too small! 
  • July 11^th, 12^th, 13^th, 14^th and 15^th from 10 am to 11am. Click here for Zoom link.

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.

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.