The General Ledger collates information from the rest of the system about all the transactions that have been processed. This information is then summarised into various departmental accounts. The information can then be utilised for both management and reporting purposes.
|Tasks required||Final date for completion||Y|
|CUEF unit dealing for 2015 -16||Fri 17 Jun|
|Process and reconcile petty cash||Fri 5 Aug|
|Process journals for credit card expenditure||Wed 17 Aug|
|Movement of monies on deposit||Mon 22 Aug|
|Clear trust fund deficits||Fri 26 Aug|
|Prepare spreadsheets for income and expense accruals||Fri 26 Aug|
|Ensure expenditure is coded against the same source of funds as related income and clear deficits||Mon 5 Sep|
|Module closes at 5pm||Mon 5 Sep|
|Return signed year-end certificate(s) via Finance Manager||Fri 7 Oct|
In case of queries please contact the General Ledger Helpdesk
- CUEF unit dealing for 2015-16
- Process and reconcile petty cash
- Credit card expenditure
- Monies on deposit
- Unearned revenue
- Other debtors
- Accruals/deferrals and internal partners
- Matching the source of funds for related expenditure and income
- Clearing deficits
- Roll forward
- Trust funds
There are no purchases / sales of Cambridge University Endowment Fund (CUEF) units at 31 July. The last day for dealing for 2015-16 is Fri 17 June. Contact Treasury if there are any queries.
- The department’s petty cash needs to be closed as at 31 July 2016. The GL journal (and Grants journal if necessary) needs to have a July 2016 date.
- Petty cash expenditure for August 2016 must be journalled into August 2016.
- The department’s petty cash control account balance should reflect the amount of cash held.
NB. It may be that your first visit to the University Cashier after the year end includes two petty cash forms, one for each year. This is expected and acceptable.
- Monthly Barclaycard statements will be available to departments on 12 August, prior to the closure of AP. Expenditure will be split between July and August purchases.
- The appropriate receipts and necessary authorisation of expenditure needs to be collected and retained.
- The department’s default GL credit card account(s) should be cleared for the year-end.
- The GL journal and/or Grants journal for July expenditure needs to have a July 2016 date
- Monday 22 August is the last date for placing eligible funds on deposit as at 31 July.
- Departments are reminded that monies should be taken off deposit to reduce account deficits.
- Deposit account and CUEF interest will be posted on Tuesday 23 August.
- Details on eligible source of funds, how to place money on deposit and taking money off deposits are available in the Investments manual
These are amounts owed by the department for goods and services that they have received prior to 31 July. Therefore, their costs need to be included in the 2015-16 financial year. This is done by the process of “accruals”.
Expenditure accruals occur where:
- Goods/services have been received on or before 31 July but no invoice has been received and therefore not processed on UFS; or
- Goods/services have been received on or before 31 July and the invoice has been received after AP module has closed and therefore the invoice will be processed in AP in 2016-17 financial year.
|Accruals should only be raised for transactions over £1,000|
Departments have two ways to raise accruals:
(a) Identify departmental accruals and allow Central and Research Accounting to process them
Provide details to the Central and Research Accounting team and they will then process a GL journal. These journals will be automatically reversed in the August period of the 2016-17 account.
(b) Departments can create their own accruals by GL journal.
Further guidance on creating journals for accruals is detailed in Appendix A.
- By using the ‘Auto Reversal’ journal category these journals should be automatically reversed into the AUG-16 period. Ensure that you post the July journal.
- If the journal category ‘Accrual’ is used then you must remember to manually reverse it in the AUG-16 period using the ‘More Actions’ button and to post both journals.
Sometimes journals need to be reversed in a period later than August for example if income has been accrued in July but is not received until September then the Jul-16 journal should be ‘Accrual’ type and should be manually reversed in September.
Where accruals for a single Department total over £200,000, you must send supporting details to Central and Research Accounting by Friday 26 August.
Detailed supporting working papers must be retained for all Departmental accruals for the purposes of audit inspection
Income should be “deferred” where it has been received by the department in advance of the goods or services being supplied (eg. trading, course fees). If income received in advance is not deferred then it will be credited and shown in the incorrect financial year.
Like expenditure accruals above, departments can choose to defer income themselves (see Appendix B) or identify the deferral and ask Central and Research Accounting to process the journal.
Detailed supporting working papers must be retained for audit inspection.
These are amounts owing to the department for services/goods provided but unbilled at the year-end. They are the opposite of the accruals described above. They will arise from goods or services provided to external customers but not yet invoiced on the AR module.
As described under ‘Accruals’, departments can choose to defer income themselves (see Appendix C) or identify the deferral and ask Central and Research Accounting to process the journal.
This course of action should only be used for material adjustments ≥ £10,000.
A prepayment occurs when a payment has been processed on UFS in advance of the goods or services being received. When this occurs over the year-end the proportion of the payment that relates to goods or services received in the new financial year (August 2016 and beyond) has to be calculated. The expenditure for 2015-16 is then reduced by this prepaid amount.
Departments can choose to set up prepayments themselves (see Appendix D) or identify the prepayment and ask Central and Research Accounting to process the journal.
Prepayments are only necessary for transactions > £10,000.
If the expenditure or income that is being accrued or deferred relates to a transaction with another department (e.g.. internal trading) please check with the General Ledger helpdesk before posting the journal. The Helpdesk will be able to check that the other department is making the equal and opposite accrual/deferral. This is important to ensure that the elimination of internal transactions is correct.
Recording expenditure against the same source of funds as the related income will be an important process for departments.
The method to achieve the transfer between sources of funds is to move or transfer, the net balance of each type of expenditure by a GL journal, using the original expenditure transaction code for both the debit and credit entries of the journal.
U. Dept. CC . AAAA . ESFZ
U. Dept. CC . GAAA .ESFZ
This procedure should not be used to correct miscoding and applies to movement of expenditure between sources of funds only.
If you require clarification please contact your Finance Adviser
Detailed supporting working papers must be retained for audit inspection.
Once departmental accounts have been reviewed and adjustments made to:
- Correct miscoding
- Match the source of funds coding for related expenditure and income (as above)
- Account for accruals, prepayments, other debtors and income accruals (as above)
- Remove monies from deposit
Deficits may be off-set against surpluses on non-restricted and trading sources of funds by journaling expenditure using the Transfer Codes EZXX.
Care should be taken with this process and the transaction code EZXX must be used on both sides of the journal.
Further information and guidance on their use is available from:
Year-end income and expenditure totals by source of funds and cost centre will be rolled forward, in accordance with University policy, to create the bought forward balances for 2016-17, by close of Tuesday 13 September.
As part of the preparation of the final accounts,adjustments may be necessary. This means that balances rolled forward may change. Any such adjustments will be communicated to departments.
Two adjustment periods have been set up on GL for this purpose ADJ1-16 and ADJ2-16. In no circumstances should anybody attempt to post journals into either of these periods. All year-end postings should be entered into Jul-16, and Jul-16 should be used for all year-end reporting.
Individual statements for all trust funds will be sent to departments as follows.
|7 Jul||30 June statement|
|8 Aug||1st interim statement as at 31 July (will exclude Jul-16 distribution)|
|24 Aug||2nd interim statement as at 31 July (will include Jul-16 distribution)|
|12 Sep||Final statement as at 31 July|
- Journals are to be processed centrally to transfer expenditure to trust funds relating to appropriations in aid and overhead charges. It is planned that all such journals will be included on the 1st interim statement.
- Clear any trust funds deficits based on a review of 2nd interim statements by Friday 26 August.
In case of queries please contact the Trust Fund Helpdesk