*** UIS/OAS Financial News ***

University News and Announcements

Accelerated University Financial Reporting Process

While Harvard has historically issued its financial report in mid-December, almost six months after the end of our fiscal year, the University has determined that the users of the financial and individuals would benefit from having access to this information in a timelier manner.

As a result, beginning with fiscal year 2007, the University has made the decision to accelerate the financial close and annual audit, as well as reengineer the financial reporting process. The goals are to close the books and complete the annual audit by mid-September, to clear the annual audit and the financial report with the Joint Committee on Inspection at its meeting in early October, and to issue the financial report to the public by mid-October (two months earlier than in past years).

What does this mean for UIS/OAS?

While the close process, itself, has not changed from last year, Financial Partners may require additional information from UIS/OAS management and directors regarding year-end variances and balance sheet transactions. Related analysis and supporting schedules must now be completed by early August, almost a month earlier than in prior years. We thank you in advance for your cooperation during this transition to a more efficient and effective financial reporting process at Harvard.

New Corporate Card Application Process

Effective May 1st, the Corporate Card application process has changed from a paper based to an on-line process. The new procedure, as well as other information about Harvard Corporate Cards, including how to obtain a corporate card and cardholder responsibilities, can be found in the UIS/OAS Corporate Card Policy.

Important Dates and Reminders

FY07 Year End Deadlines

The year-end financial closing schedule was recently published by the Office of Human Resources (OHR) in the May Administrative Systems e-News on May 4th, and contains strict guidelines, which must be adhered to. It is especially important that we process all financial transactions (e.g. capital, accounts payable, expense reimbursements, customer invoices, etc.) affecting fiscal year 2007 in a timely manner.

A separate memo detailing specific dates about the year-end closing was sent out recently by UIS/OAS Finance. If your responsibilities include cash, capital, accounts payable, PCard, and/or billing, please refer to this memo as it contains important closing deadlines. If you have any questions, please contact your financial partner.

Policy Highlights and Updates

Revenue Recognition & Billing Periods

As year-end approaches, please remember that internal billing transactions should be processed as soon as possible after the goods or services have been provided. In particular, internal billings must be processed within the proper quarter and, most importantly, fiscal year periods.

Internal Billing transactions that are more than three months in arrears since the date that goods or services were provided may not be billed.

Please also remember that pre-billing internal Harvard departments for goods and services that have not yet been delivered is strictly prohibited. Requests from internal customers for pre-billing of products or contracted services is most commonly seen at year-end when departments have unspent dollars in their current operating budgets, but the goods/services cannot be delivered or provided until the next fiscal year. UIS/OAS businesses should deny all such requests and contact their Financial Partner if unable to resolve the issue with the customer.

For more information, please see the “Interdepartmental Billing Policy” and the “Revenue Recognition & Billing Periods Policy”.

We hope that this issue of the UIS/OAS Financial News has been helpful and informative.  If you have any questions, or would like to see a specific topic covered in a future publication, please email us at uisfin_news@harvard.edu