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Year End

Year End Calendar

There may be budget changes associated with the establishment of the Central Services Officer and this may affect the timing of budget activites.

Year End Audit FY22

Audit Work Schedule 

A spreadsheet setting out the year end 2022 schedule is available here.

Objective

To have a full set of unaudited financial statements for the year ended 30 September 2022 made available to Mazars before they commence their final audit visit here around the middle of January 2023 and to be available to upload to the C&AG by their 31 January 2023 deadline.

Background

As part of our compliance regulations on US Federal Aid funding, we are required to submit fully signed audited financial statements for the year ended 30 September 2022 to the US Authorities in respect of accounts prepared under FRS 102 format and US GAAP format by 31 March 2023 or risk our future funding.

The Financial Reporting unit extracts a trial balance from the eFinancials software which is primarily set up and geared toward facilitating a set of HEA Funding Statements.  In order to be GAAP compliant, approximately 80 journals need to be prepared by various units within the Finance office and uploaded to a detailed GAAP spreadsheet along with workings for various ancillary and subsidiary operations in order to produce figures in the format that is required for the University’s consolidated financial statements.

Several of these journals require extensive analysis based on what transactions are recorded within eFinancials and can take weeks to prepare.  As a result, it is important that all transactions that are required to be entered to eFinancials are done so promptly in order that the necessary analysis and reclassification work can be carried out in a timely fashion to meet the required audit deadlines imposed by the C&AG and Mazars and ultimately, the US Authorities. 

Detailed audit files are also prepared in advance of the visit of the external auditors showing the reconciliation from the extracted trial balance to the figures to be disclosed in the financial statements.

Main planning/processing issues

The target date for the close off of period 13 for 2022 is roughly the same as in previous years as the deadlines for the auditors remain very tight with the same volume of complex work to be completed before their arrival. 

Mazars will pay an interim visit at the end of November 2022.  This visit will be used to carry out compliance testing such as enquiry of processes and controls currently in place.  They will evaluate such information and then carry out specific testing on the relevant controls. 

In addition, they will review some elements of the year end related work which are complete at the time of their interim visit. These areas will be agreed with them at an audit planning meeting.  It is imperative that the agreed audit files are complete and accurate as any amendments have to be carried over for review at the final audit stage, slowing up that process.

It is important that all deadlines are achieved especially as to the completeness of entries posted to period 13. We will be required to provide Mazars with a trial balance from eFinancials at the beginning of the interim audit along with a complete datafile of all transactions for the full financial year on which they can then carry out their data analytics analysis.

Late journals have to be included as new GAAP journals and a reconciliation is needed to show the external auditors the current eFinancials position versus the original produced to them and the impact on the GAAP accounts. Late journals also mean that certain GAAP journals from previous years have to be identified and reversed. In addition, late journals have a significant impact on the GAAP journals prepared as part of the consolidation workings as these journals need to be reviewed again to assess and correct the impact of the late journals. All this causes undue delay in getting clearance from the external auditors as they need to understand and verify what we are processing. Given the tight deadlines again this year, it’s important we avoid the need to have any of these late journals.

The consolidation process will be substantiated by Mazars when they returned for their final visit around the middle of January 2023. In order for the consolidation process to be completed on time all intercompany trading details for ancillaries and subsidiaries will need to be submitted by 10 December 2022.

A list of files and a list of “prepared by client” points normally generated by the external auditors each showing the targeted deadline date to facilitate the audit process will be circulated.  Again, items received after the deadline slow up the process and require a review of other known impact areas, so completion by the deadline is imperative to keep the whole process on track.

Mazars will be required to audit the US GAAP accounts in conjunction with the Irish GAAP accounts due to the deadlines imposed by the US Department of Education to file audited US GAAP accounts as well as our own FRS 102 accounts.  The draft US GAAP accounts are based on the Irish GAAP version submitted for audit subject to a number of journals to account for the differing GAAP regulations as between the two codes. Any subsequent amendments to Irish GAAP figures are mirror imaged in the US GAAP accounts during the audit clearance process so it’s important to avoid any late adjustments.

UCD Finance Office

1st Floor Tierney Building University College Dublin Belfield Dublin 4 Ireland
T: +353 1 716 7777