You may run final reports for September tomorrow, October 8.

You may run August reports after the dashboard updates at 10 pm tonight.

Zoom office hours FY 2025

Join Zoom Meeting https://riceuniversity.zoom.us/j/96837277242?pwd=oF8bDGPHoCPs7HabVDcbbOKo6lJbbB.1 Meeting ID: 968 3727 7242 Passcode: 229392

September 11: ft. Lisa Smithies.  Capital equipment purchase coding, and how expense/expenditure type drive natural account

October: ft. Monique Smith, Manager of Payables and Expenses

November: ft. Alexis Melendez from the Budget Office on Balance Transfers

Strategic Sourcing – Wed Sept 11 9 – 10:30 am, https://emdz.fa.us2.oraclecloud.com/fscmUI/redwood/learner/learn/catalog-details?launchedFrom=wtl&learningItemId=300001133946771&learningItemType=ORA_COURSE&tab=explore

Procurement and AP: Wed Sept 25 11 – 11:30

Join Zoom Meeting https://riceuniversity.zoom.us/j/93734443632?pwd=UzBZdzlQWEEydU9zck1veDRjSUM1Zz09 Meeting ID: 937 3444 3632 Passcode: 247860

You will notice a change in the natural account associated with the purchase of capitalized equipment. Do not change the account in the chart string.

Capitalized equipment has a useful life over one year and costs $5,000 or more. When you create a requisition for purchase of capitalized equipment, the expenditure type will fill in a natural account that begins with 14xx. In the past this natural account would have begun with 85xx. For example, a golf cart was 8515 and will now be 1442. This is not an error; do not change the account.

IO uses two different accounts for capital equipment transactions, one to capitalize the asset and one to deduct the cost from your budget or fund balance. Property Accounting has always needed to make a behind-the-scenes entry to ensure both accounts are used in a transaction. In the past you started with the expense and they booked the clearing, now you’ll start with the clearing and they will book the expense. The end result is the same. The change is being made to make the capitalization process more efficient and accurate, taking advantage of certain Oracle features. It is important that you do not change the account that IO selects for you.

Please use the capitalizable equipment procurement category/expenditure type for all lines in the requisition associated with the main equipment purchase, including accessories and freight. The only exception is for extended warranties, which you should use the maintenance and service agreements category. Also, the fabrication expenditure type should only be used for fabrication projects.

If you have any questions or concerns, please contact Lisa Smithies or Crystal Davis.

July is closed.  Reports and queries will be available in the dashboards tomorrow, August 8.

The fund balance roll for FY2024 to FY2025 was posted in July business in account 4999 and is visible on the finance dashboard.

The entry summarizes all activity in FY2024 in revenue, transfer, and expense accounts for each unique combination of entity, org, fund type, fund source, program, activity, and location.  The entry does not include 100.000000 since that carryover process is managed by the budget office.

If you work for Rice Management Company, note that this process is run for investment and endowment corpus funds at the end of August.

Just a refresher on fund balance roll, since we do this only once a year.

Fund balance roll is the process of taking the ending balance from June and making it the beginning balance in July.  The entry for the change in net assets posts in July business in account 4999.  This is the only entry that should post in 4999.  Transfers and corrections go in transfer account 6800.

Fund balance roll happens in fund types that have fund balance.  This includes designated funds, gifts, endowment spending, service centers, auxiliary, and agency funds.

Fund balance roll does not happen for budgetary funds or budgeted projects.  Therefore, it does not apply to 100.000000, which has a separate carryover process handled by the Budget Office.

Fund balance roll does not apply to projects in the Project Portfolio Module (sponsored, capital, or faculty funds.)  The fund balance in fund type 109 (faculty funds), fund type 04 (sponsored), fund type 150 (capital) does roll, but nothing happens in the projects.  Projects hold only budget and expenditures.

The fund balance roll amount is the sum of all activity in revenue, transfer, and expense accounts for the entire year just closed.  This is the change in net assets.  The change in net assets is added to (or subtracted from) the existing balance in net assets to arrive at the new beginning balance for the fund.

Let’s look at an example.

101.019000 has this activity in FY 2024 in June when June is closed:

Actual YTD – End of Period

4999 net assets (beginning balance)                (87.00)

6500 miscellaneous revenue                               (10,000.00)

6800 transfer                                                          1,000.00

8345 miscellaneous expense                                6,000.00

The activity during the year is a total of (3,000).  The sum of the beginning balance from last July and the activity during the year is (3,087.00).  In July FY 2025 this will happen to net assets:

Period Activity                     Actual YTD – End of Period

4999 net assets (beginning balance)                (3,000.oo)                              (3,087.00)

The fund balance roll will post to net assets before the close of July, which is scheduled for August 7.

June is now closed.  Final data will be available through the finance dashboard tomorrow.

The fund balance roll entry will post between July 31 and August 7.  That entry is the one that updates the beginning balance in account 4999 in July FY 2025 for the income and expenses posted in FY 2024.

July general ledger close is scheduled for August 7.

FY 2024 is now closed for correcting entries.  Next, central offices are going to perform a few final processes, such as depreciating fixed assets and posting budget carryover.  You can run final FY 2024 reports on July 30.

The beginning balance for July can be updated only after the ending balance for June is final, so that means your net asset balance in account 4999 will be updated in FY 2025 between July 31 and August 7.

Basically everything is pushed back two days due to hurricane Beryl:

July 12   Original entries to be submitted

July 15   First close reports available on dashboards

July 19   Second close – final day for corrections to be submitted

July 29   Final reports available on dashboards after 10 p.m.

Please contact crystald@rice.edu if you have questions.