Finance Process Document - Financial Reporting and Audits

Transcription

1 REVISION HISTORY Revision Date Details of Change Process Owner No. 1 20/08/2007 Initial Release Liam Ryan 2 19/09/2014 Updated QMS 2014 Liam Ryan 3 12/01/2015 Revised in line with new template for 2015 QMS review Liam Ryan PURPOSE Preparation of Annual of the University. RESPONSIBILITY The Director of Finance has line responsibility for the preparation of the annual financial statements of the University. PROCEDURE The are prepared by staff in the Finance Department following a detailed year end audit schedule timetable which is circulated and managed by the Financial Accountant. The completion of the requires the following procedures to be followed: Confirm opening balance to prior year accounts Input any adjustments required for opening balances Write to the HEA for a detailed schedule of grants received by the University. This confirmation will act as an audit trail and independent verification to the grants received figures booked I the Statutory Accounts of the University Obtain copies of all HEA letters for Financial Year (Letters will act as back-up to figures posted in the ). Write to Banks to confirm balances / interest and charges at 30th Sep List all Bank Balances as at 30th Sep Reverse all Accruals / Prepayments relating to prior year Reconcile Deposit Interest to Bank Certificates (Independent verification of deposit interest) Calculate & Transfer Deposit Interest to Current Income & Expenditure by end of week 2. Confirm bank balances, interest and charges at year end by end of week 2. Analyse Other Debtors A/C Balance at year-end Analyse Sundry Debtors Account Calculate & Input Prepayments to Debtors Accounts Accruals relating to PWC Audit Fees / C&AG, Bank Interest / Charges by end of week 2. Calculation and transfer of Final Recurrent Grant to the Income & Expenditure A/C Prepare details of subsidiary grants for full year PD-FAC-011 Finance Department Page 1 of 8 Version 3

2 Details of minor works grants for full year by end of week 4. Transfer of prepaid state grant to Debtor Account by end of week 4. Calculate and transfer final student fees to Current I&E Account Prepare schedule for fees reasonableness test by end of week 4. Run first I & E Account plus Balance Sheet extract to the end of September from Agresso Calculation of deferred state grant as at the of September Reconciliation of Fees on Agresso Debtors Ledger to Fees System Preparation of bad debt schedules plus supporting calculation analysis Preparation of Audit File for Current Year s Statutory Audit Agree the format of draft accounts with prior year figures Reconciliation Cost Centre Range to I&E A/C Input of Final Journal Adjustments into Agresso Run Draft I&E plus Balance Sheet Account Schedule of General Reserve Movements Completion final adjustments and input to Agresso Preparation of PWC Audit Schedules Preparation of Expenditure headings and compare to prior year Produce Draft Final accounts for review internally Final Adjustments to audited accounts Final Accounts prepared and validated Agree format for additional financial information report with Director of Finance Annual Report prepared by Director of Finance to be included in HEA Following completion of the audit, the HEA are presented to the Audit & Risk Management Committee (ARMC) by the Director of Finance/Financial Controller/Financial Accountant for approval. The ARMC also meet with PWC to discuss their audit findings. The ARMC then recommend to the Governing Authority that they authorise the President and Director of Finance to sign the HEA Financial Statements. Prepare GAAP Audit File for PWC Final GAAP adjustments from PWC Final GAAP Accounts typed and checked Annual Report prepared by Director of Finance to be included in GAAP Following completion of the audit, the GAAP are presented to the Audit & Risk Management Committee (ARMC) by the Director of Finance/Financial Controller/Financial Accountant for approval. The ARMC also meet with PWC to discuss their audit findings. The ARMC then recommend to the Governing Authority that they authorise the Chancellor and President to sign the GAAP. DOCUMENTATION Available on UL Network at: \\iota\k\audits\audits\ PD-FAC-011 Finance Department Page 2 of 8 Version 3

3 RECORDS The University s financial statements are available on the University website at: Refer to UL s Records Management and Retention Policy. PROCESS VERIFICATION The Financial Accountant ensures that the Financial Accounts of the University are prepared in accordance with an annual timetable and an associated schedule of tasks and activities to ensure that all transaction deadlines and cut-offs are adhered to in order to meet this timeline. The are audited by PWC and C&AG. The are reviewed by the Audit & Risk Management Committee and recommended by them to the Governing Authority for approval. PD-FAC-011 Finance Department Page 3 of 8 Version 3

4 Version 1.01 Date: 19 th September 2014 Transaction Source Financial Accounting Output Reporting Timeframe - 01 st October => 30 th September Confirm Opening Balances on Agresso to Prior Year Accounts Financial Accountant inputs any adjustments to Opening Balance Confirm schedule of grants received with HEA by getting written confirmation Obtain Copies of all HEA letters for full year Confirm bank balances / interest charges with banks List all Bank Balances at 30 th Sept Reverse all Accruals / Prepayments P/Yr Reconcile Deposit Interest to Bank Certificates Page 2 PD-FAC-011 Finance Department Page 4 of 8 Version 3

5 Version 1.01 Date: 19 th September 2014 Transaction Source Financial Accounting Output Page1 Calculate & Transfer Deposit Interest to Current I&E A/C Confirm bank balances, interest and charges at year end Analyse Other Debtors A/C Balance Analyse Sundry Debtors A/C s Calculate & Input Prepayments to Debtors A/C s Accruals - Audit Fees PWC / C&AG - Bank Interest/Charges Page 3 PD-FAC-011 Finance Department Page 5 of 8 Version 3

6 Version 1.01 Date: 19 th September 2014 Financial Accounting Transaction Source Output Page 2 Calculate & Transfer Final Recurrent Grant to I & E A/C Prepare details subsidiary grants for full year Details of minor work grants for full year Transfer Prepaid State Grant to Debtors A/C Calculate / Transfer Final Student Fees to Current I&E A/C Schedule for Fees reasonableness Test Run first I & E A/C plus Balance Sheet to 30 th September Calculate Deferred State Grant to 30 th September Page 4 PD-FAC-011 Finance Department Page 6 of 8 Version 3

7 Version 1.01 Date: 19 th September 2014 Transaction Source Financial Accounting Output Page 3 Reconcile Agreso Fees Debtors with fees system Agree Bad Debt Provision & Analyse Prepare Audit File Agree format draft accounts with p/year figures Reconcile Cost Centre to I &E A/C Review Transaction Cut-Off Input Final Journal Adjustments Run Draft I & E + Balance Sheet Schedule of General Reserve Movements Complete Final Adjustments and input to Agresso Page 5 PD-FAC-011 Finance Department Page 7 of 8 Version 3

8 Version 1.01 Date: 19thSeptember 2014 Transaction Source Financial Accounting Output Page 4 Prepare PWC Pack (Audit Schedules) Review Expenditure headings and compare to P/Y to ensure that all appropriate accruals have been entered Produce draft final accounts Internal Review of Financial Statements by FC / Director of Finance HEA presented to the Audit Committee for approval Final adjustments from PWC Annual Report prepared by Director of Finance to be included in HEA Financial Statements Final HEA Accounts typed and checked Final Accounts received from Printers Agree Format Additional Information Report Prepare GAAP Audit File for PWC GAAP presented to the Audit Committee for approval Final GAAP adjustments from PWC Final GAAP Accounts typed and checked Annual Report prepared by Director of Finance to be included in GAAP Financial Statements Final Accounts received from Printers PD-FAC-011 Finance Department Page 8 of 8 Version 3