1

RECONCILIATION SECTION:INSTRUCTIONSDUEDATEFORMS TO SUBMIT

R01.

BANK ACCOUNTS GENERAL

All bank accounts over which you have control must be reconciled as of June 30. Exhibit I is to be completed for each of the accounts to reconcile the bank balance and your cashbook balance. All supporting data is to be retained for each account for that period. This includes bank statements, canceled checks, debit/credit memos and deposit slips. A copy of the bank statement must be attached and sent with Exhibit I. To assist with abandoned property reporting, please attach a list detailing the individual check amounts in the outstanding total on Exhibit I.

Please note that Exhibit I is a self-balancing reconciliation between a cashbook and a bank statement; thus both sides must be completed.

Exhibit IV must be prepared for each campus bank account to reconcile the June 30 balance per the general ledger (the imprest amount) and the balance per your cashbook. An example of a reconciling item is disbursements which have not yet been replenished. 7/13EXHIBIT IEXHIBIT IV

R02.BANK ACCOUNTS CREDIT CARDSThe credit card bank accounts must be reconciled as of June 30. Exhibit I is to be completed for each of the accounts to provide reconciliation between the bank balance and the general ledger balance.7/13EXHIBIT I

R03.IMPREST CASH FUNDSExhibit IV should be prepared for each imprest cash fund to reconcile the June 30 balance per the general ledger (the imprest amount) and the cash balance on hand. An example of a reconciling item is disbursements which have not yet been replenished. 7/13EXHIBIT IV

R04.RECEIVABLE

A. STUDENT ACCOUNTS

A trial balance report run by the System Accounting Department from Campus Solutions the morning of July 1 will be the official report of outstanding student receivables as of June 30. The balance on this report must be reconciled to the general ledger student accounts receivable balance as of June 30 using Exhibit II.

The Aging and Allowance Report from the PS Student Financial System that is sent to your University on July 7th by the System Accounting Department must be reconciled to the total debit balances on the June 30 Trial Balance Report.

Journal entries must be prepared and entered for any reconciling adjustments needed to adjust the student accounts receivable general ledger balance as of June 30, 2014. Write-off of student receivables must be made by charging your Allowance for Doubtful Accounts (account code 13003). The Allowance for Doubtful Accounts is also to be funded to a minimum of the calculated benchmark level.7/13

7/13

7/17

EXHIBIT II TRIAL BALANCE

B. NONSTUDENT ACCOUNTS PS STUDENT FINANCIALS SYSTEMA trial balance report run by the campus from the Campus Solutions Reporting Database the morning of July 1 will be the official report of outstanding nonstudent receivables as of June 30. The balance on this report must be reconciled to the general ledger nonstudent accounts receivable balance as of June 30 using Exhibit II. An electronic version of the trial balance report should be submitted to the System Accounting Department along with Exhibit II.

Journal entries must be prepared and entered for any differences and be reported on Exhibit II. Write-off of nonstudent receivables must be made by charging your allowance for doubtful accounts (account code 13003).

The outstanding nonstudent account receivables are to be aged and reconciled to the Trial Balance Report as of June 30. Exhibit IIC must be completed to provide an aging of the nonstudent receivables. 7/13EXHIBIT II EXHIBIT IICTRIAL BALANCE

C. NONSTUDENT ACCOUNTS MAS90Exhibit II must be used to reconcile the June 30 balance per the general ledger and per the MAS90 system. An Accounts Receivable Aged Invoice Report from the MAS90 system must be forwarded with Exhibit II.7/13EXHIBIT IISPECIAL REPORT

D. NONSTUDENT ACCOUNTS OTHER SYSTEMSExhibit II must be used to reconcile the June 30 balance per the general ledger and per your system for tracking other nonstudent receivables. Exhibit IIC must be completed to provide an aging of the nonstudent receivables. 7/13EXHIBIT IIEXHIBIT IIC

E.ARAS/ISIS CLEARING ACCOUNTS Reconciliation of the ARAS/ISIS Clearing accounts needs to be completed by the preparation of an Exhibit II using the June 30 accounting reports.7/13EXHIBIT II

F.DIRECT LOAN FUNDS ADVANCEDAll direct lending accounts must be reconciled to detail records as of June 30. Refer to the Direct Loan Reconciliation Process Guide at www.maine.edu/about-the-system/system-office/finances/instructions-and-forms-for-the-general-ledger-close/ .7/13EXHIBIT II

R05.LOANS RECEIVABLE - PERKINS AND NURSINGExhibit IX must be prepared for each Loan Fund, reconciling ECSIs records to PeopleSoft. Any differences must be corrected by journal entries and entered by the campus, so that PeopleSoft agrees with ECSI at June 30.

A detailed listing of student payments is required in support of the Perkins/NSL Miscellaneous Deposit Account Balance (Exhibit IXA).7/13EXHIBIT IXEXHIBIT IXA

R06.LOANS RECEIVABLE UNIVERSITY

A. DETAILED TRIAL BALANCEOutstanding principal balances for University Loans Receivable must be aged using Exhibit IIC. The aging must be reviewed for recommended write-offs. If write-offs are required, prepare and enter journal entries debiting account code 65200 and crediting the appropriate loan receivable account code 13700.7/13EXHIBIT IIC

B. RECONCILIATIONExhibit II must be prepared for each chartfield combination listed in the specific requirements for your campus and journal entries submitted for any difference.7/13EXHIBIT II

R07.INVESTMENTSThe detail of all other investment accounts, which are campus controlled or administered, is to be submitted on Exhibit III. All passbooks must be posted as of June 30 showing interest earned. 7/13EXHIBIT III

R08.PLEDGES RECEIVABLE

A. OUTSTANDING PLEDGES AND CASH FLOWS

The following information must be provided as of June 30 for each outstanding pledge:

Donor name Original pledge amount Pledge balance outstanding (total balance left to be paid) The amount to be collected from the donor in each future fiscal year Program title and the general ledger chartfield combination to which the pledge payments will be posted. Note that the total cash flows must equal the total pledges outstanding.7/13ADVANCE REPORT

B. PLEDGE REQUIREMENTS NOT YET METOccasionally a donor makes a pledge to the University but requires that the University fulfill certain requirements (e.g., raise a matching amount of money) before the donor will pay the pledge. Pledges of this type must not be included in the Universitys financial statements until all requirements have been fulfilled. Therefore, any such items that are included on the list of outstanding pledges from item R08.A above must be identified. Exhibit XIII must be used to report such pledges. Needed information includes the donors name, pledge date, pledge amount, general ledger chartfield combination, and a description of the unfulfilled requirements remaining as of June 307/13EXHIBIT XIII

C. UNCOLLECTIBLE PLEDGES

Specifically identify or provide a percentage of the total outstanding pledges you estimate will be uncollectible.7/13CAMPUS REPORT

R09.

SUMMER SESSION REVENUE DEFERRAL AND OTHER DEFERRED REVENUESThe summer session accounts and other deferred revenues and deposit accounts must be reconciled as of June 30 using Exhibit II. You need to ensure that the allocation process run by the System Accounting Office in April, May, and June deferred the amounts you intended based on the list of summer session accounts you previously provided.Please note that only a portion of expenditures and revenues related to summer session activities will be deferred to FY2015. Salaries and wages and the related benefits will not be deferred at all, but will remain as FY2014 expenses.

If you still have pre-April 1st items in your summer session accounts that must be deferred, the deferral adjustment will have to be processed as a June 30 entry after the allocations for June 30 have been processed. Report such items on a journal entry form, label them as additional summer session deferral, and send them to the attention of Darla Reynolds in the System Accounting Department. The adjustment will be made for you after the allocations have run for June. The monthly allocation process will generate the wrong deferral amount if the adjustment is made before the allocations run. 7/13EXHIBIT IICOPY OF JEs

R10.INVENTORIES AND PREPAID EXPENSES

A. Cafeterias, Dining Halls, UNIONS, Commissaries, University Press, Central Supply

These inventories are required as of June 30. Exhibit VIIA, or a facsimile thereof, must be used in preparation of inventory detail in the absence of any computer listings or printouts. The value of these inventories must be stated at cost. 7/10EXHIBIT VIIA

B.INVENTORIES BOOKSTORES

A physical inventory count is required for all campuses as of June 30. Exhibit VIIA, or a reasonable facsimile, may be used in lieu of computer listings. Stated value is to be at cost. Please note that if your computerized inventory system provides the actual cost of each item in inventory, use the actual cost instead of using cost ratios to roll the inventory back to estimated cost from the retail amount. If it is necessary to roll back the inventory from retail, the percentages used in devaluing to cost must be indicated on Exhibit VIIB which is the Bookstore Inventory Summary. The following schedules in support of your physical inventory must also be included:

(1) Returns, for which credit has not been received using Exhibit VIIC.(2) Received-not billed using Exhibit VIID. This is for inventory which has been counted and included in the physical inventory, but for which the appropriate invoices have not been received and/or processed and included on the June 30 Financial Reports.(3) Any obsolete, damaged or extremely slow-moving inventory must be separately counted, valued and identified by category; i.e. books, novelties, etc. The detail for this inventory must be reported on Exhibit VIIA and the totals carried forward to Exhibit VIIE. Your estimates of net realizable value and recommendation for disposition must also be noted or commented upon with an attachment to Exhibit VIIE.

7/10

EXHIBIT VIIAEXHIBIT VIIBEXHIBIT VIICEXHIBIT VIIDEXHIBIT VIIE

C.PREPAID EXPENSES - GENERALOnly the cost of materials or services received by the campuses during FY2014 (July 1 to June 30) should be recorded in the general ledger as expenses (account codes 6xxxx). If you paid for items in FY2014 that you will not receive in whole or in part until after FY2014, you must record these items as an asset called prepaid expenses (account code 15000). An example of an item that is generally prepaid, at least in part, is software support or maintenance costs. The bill is paid in one fiscal year; however, the period covered by the maintenance agreement falls partly in the current fiscal year and partly in the next fiscal year. The dollar amount of the invoice must be prorated so that the costs allocable to the next fiscal year are recorded as a prepaid expense. See the Systems Administrative Practice Letter Section I-A, Prepaid Expenses and Deferred Revenues for more information.

Exhibit VIIA must be completed, detailing the items that comprise prepaid expenses. 7/10EXHIBIT VIIA

D.PREPAID TRAVELPrepaid travel accounts (15101) must be reconciled with the balance in the PeopleSoft travel and expense module. Please feel free to contact the Travel Administrator for help with these items.7/10EXHIBIT II

R11.GIFTS PENDING, GIFT CLEARING AND PAYROLL GIFT CLEARING ACCOUNTSThese accounts must be reconciled at June 30 and any differences adjusted by journal entries.

A listing must be provided to support the June 30 balance in these accounts. The listing must include the following information: date of gift, donors name, amount of gift, title of the program code to be created/chartfield combination to which the gift will eventually be credited, and restrictions.

7/13EXHIBIT IICAMPUS LIST

R12.OTHER LIABILITY ACCOUNTS

A. PURCHASING CARD ACCOUNTSThe campuses purchasing cards must be reconciled to the June 30 general ledger balance. Completed reconciliations must be forwarded to the System Accounting Department. 7/18CAMPUS REPORT

B. OTHER LIABILITY ACCOUNTSThe campuses are responsible for certain liability accounts in the general ledger, and although the accounts should be reconciled monthly, they must be reconciled at June 30. The reconciliation must be prepared on Exhibit II and any differences adjusted by journal entries. Detail support must be available upon request.7/13EXHIBIT II

R13.STUDENT ACTIVITY ACCOUNTSBalance sheets and trial balances are to be completed for each student activity bank account still open as of June 30.7/13EXHIBIT XIEXHIBIT XII

R14.

PAYROLL SUSPENSE ACCOUNTS

Payroll suspense accounts must be reconciled as ofJune 30 using form Exhibit II. The balance in these accounts must be brought to a zero balance prior to the general ledger being closed for FY2014. To accomplish this, all labor adjustments to clear out the June 30 balance must be made by July 18.7/18EXHIBIT II

R15.OTHER SUSPENSE AND CLEARING ACCOUNTSThe campuses are responsible for certain suspense and clearing accounts in the general ledger. Although the accounts should be reconciled monthly, they must be reconciled at June 30 and the balances brought to zero.

7/13EXHIBIT II

R16.CAPITAL ASSETS

A.CAPITAL EQUIPMENT INVENTORY

Information needed to update your capital equipment inventories must be forwarded to the System Accounting Department. Here are a few reminders:

Capital equipment (including furniture and motor vehicles) includes any items with a unit cost of $5,000 or more with a useful life of more than one year. See Administrative Practice Letter Section I-G.2 General Accounting for Capital Assets for more information on capital assets. Equipment should be recorded in the inventory system only if it has been received and must be recorded at actual cost, not at the purchase order amount. The chartfield combination to be entered in the inventory system is the combination that was charged for the purchase. Thus, if the equipment was purchased with grant money, the grant project combination must be entered, not the departments fund 00 combination. Campuses are responsible for tagging all capital assets and reporting the information to the System Accounting Department.7/31SYSTEM GENERATED / CAMPUS REVIEWED

B.CAPITAL PROJECTSThe following project attributes must be reviewed to ensure that they accurately reflect information for the project as of June 30th: Depreciation status Useful life of the building and/or improvements other than buildings In-service date Categorized expenses

7/17SYSTEM GENERATED / CAMPUS REVIEWED

C.GENERAL LEDGER ACCOUNTS 17XXXAll general ledger accounts for capital assets (account code series 17xxx) must be reconciled to the supporting detail. Note that these reconciliations will be prepared by the System Accounting Department.8/22SYSTEM GENERATED

R17.GIFT REVENUE ACCOUNTSYear-to-date gift revenues per the general ledger and per the Advance system must be reconciled.

In Advance, run the Allocation Summary Report for July 1, 2013 to June 30, 2014. In PeopleSoft, run the general ledger Reconciliation Report year-to date for Period 12. The campuses need to resolve the discrepancies and make adjustments as needed to the general ledger or Advance system.

7/1 and 7/17EXHIBIT II

UNIVERSITY OF MAINE - INSTRUCTIONS FOR THE YEAR-END GL CLOSE FY2014Exhibits referred to in this document and University specific requirements are located on the Finance and Administration web site at www.maine.edu/about-the-system/system-office/finances/general-ledger-close-exhibits/ .

PLEASE NOTE THAT JUNE 30 BALANCES IN THE GENERAL LEDGER WILL NOT BE FINAL UNTIL JULY 8.**END OF INSTRUCTIONS**1 of 7