Overview of Year End Closing
(Fiscal Year 11-12)
Our primary objective at Fiscal Year End is to produce a financial report that accurately reflects the University's financial position as of June 30th. The following briefly summarizes the process:
JUNE - 1ST CLOSING - 7/9/12 - APPROXIMATE MAILING DATE 7/10/12
This is a normal monthly closing. Every effort should be made to record transactions on this closing so that errors can be identified and corrected on the 2nd closing.
JUNE - 2ND CLOSING - 7/20/12 - APPROXIMATE MAILING DATE 7/23/12
This closing is for corrections and last minute entries that were too late for the 1st closing. Since this is the last opportunity for departments to submit entries, extreme care should be taken to avoid duplications and errors. Accounts payable accrual entries will be processed through this closing only.
JUNE - 3RD CLOSING - 8/6/12- FINAL MAILING
This closing is to record reserve transfers and various closing entries. A copy of the Ledgers will be issued reflecting final balances. Transactions for this closing are initiated exclusively by the Controller's Office. Expected mailing date is August 6th.
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In order to generate the financial report on a timely basis, it is necessary to process the June closings in rapid fashion. As indicated previously, the June 1st Closing Ledgers are scheduled to be mailed to departments on July 10, 2012, with Web Ledgers available on that date as well. Since this leaves only 8 working days for departments to make corrections for the June 2nd closing, it is imperative that ledgers be reviewed immediately. As a result, we encourage you to review your Web Ledger periodically during this time frame and contact the appropriate office with any question or concerns. June 2nd closing is the last opportunity for departments to process transactions against the 11-12 fiscal year.
INTERDEPARTMENTAL INVOICES (II's)
During the month of July, II's are being processed for both the 11-12 fiscal year (June) and the fiscal year 12-13 (July). To insure that II's are recorded in the proper year, please indicate the month (June or July) on the top of the form. For those who submit electronic entries, please indicate on the Batch Fax Sheet which fiscal month the entry should be processed to.
When submitting II's for the June 2nd closing, extreme care should be taken to avoid errors and duplication because this is the final closing in which departments can make corrections.
Please review the minimum data requirements for single and multiple IIs carefully. This information, along with the latest version of the IIs, is located under the Forms & Instructions section of our website. We do not want to delay your entry or have it processed incorrectly due to missing or incorrectly formatted data.
INVOICE PROCESSING
At year end Accounts Payable (A/P) processes all invoices for which they have the appropriate receiving documents. In some cases goods have been received (or services performed), the receiving document has been sent to A/P, but the vendor has not yet invoiced the University. Since the goods or services have been received, the University must account for them on the financial statements. This is done by recording or "booking" the expense for the goods or services against the account in the old fiscal year. This entry is reversed by the Accounting Department in the new fiscal year. The entry that will appear on the June ledger sheet contains the following offset account:
0-15004-2100 AP YEAR-END ACCRUAL
Under the column marked 2nd Reference on the ledger sheet, the Purchase Order (P.O.) number will appear. In July, the credit will appear against the same account as referenced, again referenced by the offset account 0-15004-2100.
When the invoice arrives in July and is processed, the charge in July will be offset by this credit in the new fiscal year.
Items less than $1,000.00 are not significant in relation to the overall University budget, and therefore, are generally not recorded unless specific request is made by the department. This includes Purchase Orders, Request for Check, and Travel Reports.
PURCHASE ORDERS
All goods and services received by June 29, 2012 must be recorded against the old fiscal year, either as an expense (paid) or as an unpaid invoice. In order to do this, receiving documentation for goods and services received by June 29, 2012 must be delivered to the Controller's Office by noon on June 29th. This documentation must show that the goods or services were received by June 29, 2012.