The University of St. Thomas’ current fiscal year will end on June 30, 2010. The new fiscal year ’11 (FY ’11) will begin on July 1, 2010, and end on June 30, 2011. Purchasing Services and Accounts Payable must verify that expenses are charged to the correct fiscal year. Your help and cooperation are needed to ensure that this is successfully accomplished.
Budget managers and requesters should plan ahead by using the following guidelines regarding the purchase of goods and services as we transition from one fiscal year to the next.
Charging appropriate fiscal year
The date that goods or services are received is used as the determining factor in deciding which fiscal year to charge. This method is based upon Generally Accepted Accounting Principles.
Payment should be made out of the current FY ’10 budget if:
- Supplies and products are received on or before June 30, 2010.
- Services were performed on or before June 30, 2010.
Payment should be made out of the FY ’11 budget if:
- Supplies and products are received on or after July 1, 2010.
- Services are performed on or after July 1, 2010.
- A trip occurs on or after July 1, 2010, even if a Prepaid Expense Report is submitted earlier.
- Services are performed on or after July 1, 2010, even if they are prepaid.
Services that will cross over both fiscal years will be charged to the year in which most of the services are provided. For example, if a consultant begins providing service on June 24 and ends services on July 19, the entire amount will be charged to FY ’11.
FY ’10 purchases
Before you place your order, verify that the vendor can and will deliver before June 30! Your purchase requisitions for FY ’10 must be complete and through the approval process by Friday, June 11, 2010.
FY ’11 purchases
You may start to order goods or services against the new budget on Monday, June 7, 2010. To use the new budget, the transaction date must be changed to July 1, 2010, or later, and goods or services must be delivered on or after July 1, 2010. The vendor should be aware that they must deliver after July 1, 2010. Keep in mind that if the goods or services purchased are received before June 30 they will be charged in the current FY ’10.
Payments processed in Accounts Payable
Submit all FY ’10 employee reimbursements, prepaid requests, cash advances, independent contractor requests, check requests, invoices, purchase order invoices, and miscellaneous payment requests by Friday, June 25, 2010. If you incur expenses between June 26 and June 30, submit payment requests by Wednesday, July 6, 2010. Remember that the current fiscal budget must have funds available to cover these expenses.
If you are using a UST WellsOne Commercial Card to make material purchases near year-end, you must be aware that the bank cycle ends on June 30, 2010. Please be aware that if purchases are made close to the bank cycle end date, it is not guaranteed that the charges will be charged to FY ’10 (because there may be a timing delay from when the actual purchase was made and when the vendor submits the credit card charges to WellsOne). Return completed reconciliations to Room 204, Aquinas Hall, or mail them to Mail #AQU 204 by July 9, 2010.
For more information regarding these procedures, e-mail: Phyllis Meath, Purchasing Services; Edie Dull, Accounts Payable; and Allison Hanson (for budget matters), Controller’s Office.
Timeline for 2010
- Monday, June 7, 2010: FY 2011 budget opens.
- Friday, June 11, 2010: All FY ’10 requisitions must be complete and through the approval process.
- Friday, June 25, 2010: All FY ’10 payments need to be submitted.
- Friday, July 9, 2010: All June WellsOne reconciliations must be turned in to Room 204, Aquinas Hall, or Mail #AQU 204.