deltek insight 2010: month-end reconciliations made easy

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GCS-220 Month-End Reconciliations Made Easy Presented by: Stacey McCarver © Deltek Systems, Inc.

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GCS-220 Month-End Reconciliations Made Easy

Presented by: Stacey McCarver

© Deltek Systems, Inc.

Abstract

• Month-end reconciliations are a necessary evil for all accountants. Attend this session and ease your pain and stress at month-end. We will analyze the GCS Premier key reports, utilities, and a model for reconciling the Contracts module to the General Ledger.

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Reconciling within GCS Premier

• Timing

• Reports to be reconciled

• Main reconciliation points

• Sample reconciliation

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Timing IS Everything!

• Reconcile on a monthly basis– Don’t wait until end of fiscal year

– Accounting period closing steps

– Always reconcile the YTD column

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Getting Started

Reports to be Reconciled:

• Income Statement (I/S)

• Contract Revenue Summary

• Contract Cost Summary

• Statement of Indirect Expenses (SIE)

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Income Statement to Contract Revenue Summary

• Tie the Gross Profit from Operations on the I/S to the year-to-date Contract Fee on the Contract Revenue Summary (A)– The contract fee should be within .005% of the gross profit

• Tie revenue on the I/S to revenue on the Contract Revenue Summary (F)

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Answers

• Item A:– Income Statement Gross Profit from Operations: $23,982.77

– Contract Revenue Summary Year to Date Fee: $23,986.46

• Item F:– Income Statement Year to Date Revenue: $689,384.07

– Contract Revenue Summary Year to Date Revenue: $689,384.07

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Income Statement to Contract Cost Summary

• Tie indirect costs on the I/S to each indirect pool amount on the YTD Contract Cost Summary (B,C,D,E)– May be off up to .005% due to rounding

• Tie direct costs on the I/S to direct costs on the YTD Contract Cost Summary (H,I,J,K,L,M,N)– Can do this cost by cost or in total

– Should match exactly

© Deltek Systems, Inc.

Answers

• Item B:– Income Statement Year to Date Fringe Benefits: $60,212.71

– Contract Cost Summary Year to Date Pool Amount: $60,221.00

• Item C: – Income Statement Year to Date Overhead : $143,320.80

– Contract Cost Summary Year to Date Pool Amount: $143,318.00

• Item D: – Income Statement Year to Date Subcontract Handling: $4,053.66

– Contract Cost Summary Year to Date Pool Amount: $4,055.00

• Item E: – Income Statement Year to Date G&A :

$148,213.43

– Contract Cost Summary Year to Date Pool Amount: $148,201.00

© Deltek Systems, Inc.

Answers

Income Statement Contract Cost Summary

Year to Date Total Direct Costs Year to Date Total Direct Costs

• Total -Item N: $411,962.37 $411,962.00

• Item- Description:

• H- Direct Labor: $178,857.37 $178,857.00

• I- Direct Travel: $ 42,273.00 $ 42,273.00

• J- Direct Consultants: $ 55,022.00 $ 55,022.00

• K- Subcontracts: $ 35,500.00$ 35,500.00

• L- Direct Materials: $ 93,587.00 $ 93,587.00

• M- Other Direct Costs: $ 6,723.00 $ 6,723.00© Deltek Systems, Inc.

Income Statement toContract Cost Summary

• Reconcile the (over)/under applied indirect cost variance on the I/S to the (over)/under applied indirect cost variance on the YTD Contract Cost Summary (G)

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Answer

• Item G:– Income Statement Over/Under Applied Cost $102,361.67

– Contract Cost Summary Year To Date

Over/Under Applied Indirect Costs $102,361.00

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Income Statement and Statement of Indirect Expenses

• Each indirect pool on the I/S should tie back to each pool on the SIE (B,C,D,E)– If it is your policy not to post an Inter-pool entry, the individual pools will not

tie; however, the total for all the pools will tie

– On the SIE, the amounts being allocated to higher tiered pools will need to be subtracted from the originating pool

– May be off up to .005% due to rounding

– The total is reconciling answer for Item O.

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Answer

• Item B:– Income Statement Year to Date Fringe Benefits: $60,212.71

– Statement of Indirect Expenses Fringe Pool Amount: $70,034.03

– Less the amounts moved to other pools- Tiering

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© Deltek Systems, Inc.

Item B - Fringe Reconciliation

• Item B:– Income Statement Year to Date Fringe Benefits: $60,212.71

– Statement of Indirect Expenses Fringe Pool Amount: $70,034.03

Total Fringe Cost - SIE pg.5 $70,034.03

Total Fringe Base – SIE pg.6

Less Amounts Applied:

-OH Labor (10,551.37*33.67%) pg.7 3,552.13

-Subcontractor (100.00*33.67%) pg.9 33.66

-G&A Labor (7,762.21*33.67%) pg.11 2,613.16

-B&P Labor (9,635.06 +1,124.93)*33.67% 3,622.37

$60,212.71

© Deltek Systems, Inc.

© Deltek Systems, Inc.

Item C – Company Overhead Reconciliation

• Item C:– Income Statement Year to Date Overhead : $143,320.80

– Statement of Indirect Expenses Co Overhead Pool: $151,041.50

Total Overhead Cost - SIE pg.7 $151,041.50

Total Overhead Base – SIE pg.8

Less Amounts Applied:

-B&P 39 Labor (9,635.06*80.13%)-pg.7 7,720.70

$143,320.80

© Deltek Systems, Inc.

© Deltek Systems, Inc.

© Deltek Systems, Inc.

Item E – G&A Reconciliation

• Item E:– Income Statement Year to Date G&A : $148,213.43

– Statement of Indirect Expenses G&A : $148,213.43

Total G&A Cost - SIE pg.11 $148,213.43

G&A per Income Stmt pg.2 148,213.43

Total Cost Base Pool

Does not Allocate to other Pools

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Income Statement to Statement of Indirect Expenses

• Tie the direct labor on the Income Statement to the direct labor base on the SIE (H)– If you have multiple overhead pools, the bases of all the overhead pools may

need to be added together

– 39-42 direct labor suffixes, detailed descriptions in Suffix Account File is key.

• Indirect Costs from Income Statement (O) to SIE.

• Total costs less G&A from the Income Statement should equal the total base for G&A on the SIE (P)

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Total Base for G&A Pool

Item P:

Total Costs from the Income Statement

Income Statement pg.2:

Total Direct Costs $411,962.37

Total Indirect Costs 355,800.60

Direct Consultants (55,022.00)

Subcontracts (35,500.00)

Subcontract Handling (4,053.66)

G&A Costs (148,213.43)

$524,973.88

Year to Date G&A Base pg.12: $524,973.88

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Troubleshooting Tips

• Recompute Costs\Post Revenue

• Recompute the Statement of Indirect Expenses– Verify your processing steps

– Inter-Divisional and Inter-Pool

• Ensure the Statement of Indirect Expenses is not reporting any unabsorbed amounts – “Unabsorbed” are amounts that do not get applied

– Tolerance level of .005% of base

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Troubleshooting Tips

• Review the FS-Code Account Summary Report

– Verify all accounts are pointed to the correct FS-Code

• An unallowable indirect pool not being allocated.

– Included on the Income Statement, but not on Contract Cost Summary

• Cost of Money will always be a reconciling item.

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Questions?

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