MEMORANDUM NUMBER 2006-19 Year-End Closing for Purchasing and Disbursement Services for Fiscal Year 05-06

Michael V. McKee, University Controller

It is time to begin planning for fiscal year end June 30, 2006. Departments are encouraged to begin reviewing all outstanding purchase orders (PO) and travel authorizations (TA). Remember, for all recurring charge POs to internal vendors, such as PPD, ACS, Postage or CNS, you will need to estimate your June bill so only the June estimated amount will be carried forward. Any PO not currently needed should be canceled. This must be performed in the following manner:

PO and/or PO lines not previously vouchered against – Complete a change order to cancel the PO and forward to Purchasing. Instructions on completing change orders can be found at:
http://www.purchasing.ufl.edu/peoplesoft.asp#Change%20Ordes

The change order form can be found at:
http://fa.ufl.edu/forms/pdf/fa-pds-pocr.pdf

PO that has been vouchered against – Finalize the PO on the last voucher. Navigate to: Accounts Payable>Review>Interfaces>Purchase Order Inquiry. Key in your Purchasing Business Unit and select the PO. This will list all vouchers applied against the PO. Note the latest voucher number. Retrieve this voucher in Accounts Payable and finalize the PO by clicking on the “Finalize” icon in the top right corner. You will need to budget check by clicking the budget check icon to release the funds.

Note:  A PO that has had the entire amount vouchered for payment (open amount of $0.00) and has not been finalized will need to be finalized to close the PO.

New Outstanding Encumbrance Report
A new outstanding encumbrance report for open POs and TAs will be available in Enterprise Reporting on May 8th, 2006 and can be found by navigating to the following:

Enterprise Reporting>Access Reporting>Monthly Financial Reports>Open Encumbrance Report

Departments will be required to run this report and perform the following tasks for all outstanding POs and TAs:

Purchase Orders
Appropriated Funds (101, 102, 103, 111, 112, 113, 191, 221 & 222)

The following process should be followed:
1.  POs no longer needed – Cancel or finalize per the above instructions.
2.  All amount only blanket POs not issued to a UF internal vendor must be canceled or finalized.
3.  Any PO’s that are not canceled by Purchasing or finalized by the department will be carried forward.

The following FY06 encumbrances are authorized to be carried forward:
*  Established POs to outside vendors for the purchase of goods, but not amount only blanket POs
*  An estimated amount to allow for the payment of June services for service POs

A process called PO Rollover will be initiated by Purchasing and Disbursement Services to roll remaining POs to FY07. The PO number will not change from the existing FY06 number. FY06 PO distribution lines will be canceled and a new distribution line will be generated for the same \amount and classified as FY07 CYFWD (101-113) or CRRNT (191, 221-222).

The FY06 budget balance equal to the total of POs not canceled or finalized will be moved to the FY07 budget (CYFWD or CRRNT as applicable) if adequate budget exists.

Cash Based and the 201/209 Funds
The cumulative budget feature of these funds will allow for POs to remain open across fiscal years. Although all POs funded by cash and budget based funds will remain open, departments should use this opportunity to clean up any POs no longer needed. Cancel or finalize POs per the instructions above.

Deadlines
June 9th – Last day to submit change order to Purchasing to cancel a FY06 purchase order
June 16th – Last day for departments to finalize a purchase order that has been vouchered against

Travel
Travel Authorizations
Cancel all TAs not needed in the Travel and Expense Module by Friday, June 23rd. The Open Encumbrance Report can be used to identify all open TAs on your budgetary cost centers. Purchasing and Disbursement Services will re- establish the TAs (TA number in FY07 will remain the same as the existing FY06 number) based on the following criteria:

Funds (101-113)
Travel start date < = 6/30/2006 – The FY06 budget balance equal to the total of TAs not canceled or deleted meeting this criteria will be moved forward to FY07 CYFWD budget reference.

Travel start date > 6/30/2006 – The budget reference will be changed to FY07 CRRNT

All Other Funds
For all remaining TAs, the budget reference will be changed to FY07 CRRNT

Orders above $50,000 that require competitive bidding should be submitted by May 10th to ensure that FY06 funds are encumbered. A sealed bid/solicitation requires at least 30-45 days to specify, advertise, open, evaluate, award and post, before a purchase order can be issued.

All requisitions for FY06 must be input into the University’s accounting system by Friday, June 9th to ensure POs are encumbered against FY06 funds. For FY06 requisitions after this date, contact Purchasing to coordinate any requests to encumber funds.

After 6/09/06, the ePro module will be set to default to FY07 dates. Departments may begin to input FY07 requisitions but these will need to be “Saved for Later”. Departments will be notified when FY07 budget is available and FY07 requisitions may then be submitted. If a requisition is submitted instead of saved for later, it will be deleted.

Because of timing issues with vendors submitting purchasing card transactions to their bank, there is no way to determine the exact date a transaction will be sent to UF by our bank and loaded into the PCard module. The last day to approve PCard transactions on FY06 funds will be Tuesday, 6/27/06. You may continue to use your UF purchasing card and approve charges through the end of the fiscal year, with the following restriction in mind:

*  All transactions received or approved after 6/27/06, charges will be applied against FY07 funds.

The following deadlines have been established to assist you in the year-end process.

Friday, June 9th
Final day to input a requisition into the Purchasing module against FY06 funds.

Deadline for submitting ALL Change Orders on outstanding encumbrances.

Friday, June 16th
Deadline for departments to finalize POs that have been vouchered against for FY06.

Friday, June 23rd
Revenue Refund requests should be input to ensure posting against FY06 funds.

Last day to input a voucher (regular, E2E, E2R) to ensure payment from FY06 funds. No input will be allowed in the Accounts Payable module after 6/23.

Cash Expense Refunds should be remitted to the Cashier, S- 113 Criser Hall. E&G refunds against current year expenditures will be lost by the department if not input by fiscal year end.

Last day to input and approve a travel authorization or a travel expense report to ensure encumbrance/payment from FY06 funds. No input will be allowed in the Travel and Expense module after 6/23.

All travel advances for FY06 must be settled.

Monday, June 26th
Last day to upload vouchers thru the interface process into AP (Internal Vendors, Library, etc.)

Tuesday, June 27th
Last day to approve PCard transactions to ensure encumbrance/payment against FY06 funds.

All supporting documentation MUST be received by the appropriate approval office to ensure vouchers input by the June 23rd deadline are approved and paid before year end. A failure to meet this deadline may cause input vouchers to be deleted.

Friday, June 30th
All vouchers input must be cleared of matching exceptions and budget errors. Purchasing and Disbursement Services will be working these errors and contacting departments for assistance.

Monday, July 10th Accounts Payable and Travel modules will be opened for FY07 processing. These modules need to be closed until FY07 budgets are established and FY06 POs and TAs are closed.

This fiscal year-end schedule and information for Purchasing and Disbursement Services can also be found at the following website:
http://fa.ufl.edu/apps/uas/yes/default.asp

If you have any questions concerning these procedures and cutoff dates, you can contact us at: purchasing@ufl.edu or disbursements@ufl.edu or by calling:

Purchasing
Lisa Deal
2-1331

Accounts Payable
Randy Staples
2-1241

Cash Expense Refunds
David Segura
2-9057

Travel
Brett Wallen
2-1245