Accounting & Fiscal Services Update – Interim Week

Sent to AFS-Update on July 8, 2024

In This Message: Submit Accruals and Deferrals Starting July 9, Period 12 Deadline is July 15, Account Edit & Copy Disabled

Submit Accruals and Deferrals Starting July 9

The Year-End Department Accrual (YEDA) e-document will be available for use starting Tuesday, July 9. KFS users who need to submit accruals and deferrals for expenses and income should use the YEDA to do so no later than 4 p.m. on Monday, July 15.

What Must be Accrued or Deferred?

Accrual and deferral entries are recorded based on a materiality threshold, which is $10,000 for FY 2023-24. Individual transactions should be evaluated for accrual/deferral. If they meet or exceed the above threshold, they must be recorded to the appropriate fiscal year using the YEDA e-document. The threshold of $10k applies to most expenses and income, but some limited exceptions are listed in the fiscal closing instructions.

Other Considerations: Purchase Orders (encumbrances) do not need to be accrued. Invoices (Payment Requests and Credit Memos) that post to the wrong fiscal year may need to be accrued or deferred if they meet the materiality threshold. PREQs post to the fiscal year based on the date of the vendor’s invoice but should be recorded to the same fiscal year the items were received or service was performed.

C&G Accruals

No contract or grant funding should be used on the YEDA e-document. If departments have any accruals for C&G funds, provide the information to Griselda Duran at griseld@uci.edu by Thursday, July 11. Emails requesting expense accruals on C&G funds must include the following: fund number, Purchase Order (PO) number, a brief explanation, and a copy of the invoice.

What Documentation is Required?

The YEDA document requires specific documentation. Before you submit an accrual or deferral, please make sure you’ve provided the following:  

• A brief explanation for why you are submitting your accrual or deferral. The explanation must be very clear (i.e. to an outside auditor) as to why the accrual or deferral is needed.
• For accruals – An invoice and other supporting documents must be provided that verifies that the goods/services were received or provided during FY 2023-24 but booked in FY 2024-25.
• For deferrals – An invoice and other supporting documents must be provided that verifies the goods/services were received or provided in FY 2024-25 but booked in FY 2023-24.

Please also provide any workbooks that contain calculations that support the entry. Backup documents should be attached using the Notes & Attachments tab in the YEDA document.

YEDA Approval Requirement

The initiator of a YEDA document must ad-hoc route their MAABO or unit director for approval before submitting. If the MAABO or unit director is the initiator of the document, they must ad-hoc route an appropriate approver for approval – preferably their supervisor – to satisfy the requirement of two department reviewers (Submitter + Approver = 2).

If you are not sure if you need to create an accrual or deferral transaction, please discuss the potential transaction with your organization’s financial management and then contact General Accounting as needed.

Deadline for Period 12 Activity is July 15

All campus units must submit their accruals and deferrals, final budget alignments, and error corrections no later than Friday, July 15. No exceptions will be made. Departments must close the fiscal year in a solvent condition. All KFS documents must be in final status to be included in the period.

Cancellation of Non-Final Period 12 & 1 Docs

At the end of the day on July 15, any GEC, BA, BAT, YEDA, or AV documents for Period 12 of 2023-24 and period 1 of 2024-25 that are not in final status will be canceled by the system.

It is recommended that any FY 2024-25 documents be initiated after July 15 to avoid unintended system cancelation. If a transaction in a canceled document should be recorded in period 1, it will have to be re-entered or copied.

Account Edit & Copy Disabled

Per the fiscal year-end closing instructions, the edit and copy features in the Account Lookup on ZotPortal are currently disabled. This was done intentionally to limit account changes and creation during fiscal year-end close.

Sub-Object Codes: Similarly, campus units should also refrain from making changes to sub-object codes at this time because edits will not be copied over to the new 2024-25 fiscal year.

The Account Global Document is still available for changing fiscal officers and other account responsibility attributes. Please contact Contracts & Grants Accounting if you have a C&G account that requires a modification.