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Fiscal Year-End Process

Fiscal Year-End Process. Overview. Objectives. What is a fiscal year? What happens at the end of a fiscal year? Annual Financial Report Document Processing Fiscal Year End adjustments Roll Over, Roll Forward 13 th and 14 th Month processes Departmental Ledgers

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Fiscal Year-End Process

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  1. Fiscal Year-End Process Overview

  2. Objectives • What is a fiscal year? • What happens at the end of a fiscal year? • Annual Financial Report • Document Processing • Fiscal Year End adjustments • Roll Over, Roll Forward • 13th and 14th Month processes • Departmental Ledgers • What resources are available?

  3. What is a Fiscal Year? • The University of Texas operates on a 12 month fiscal year which runs from September 1 to August 31. • Budgets, appointments, and other transactions are all recorded within this 12 month period. • Accounting balances are maintained on a current basis, but also on a monthly and fiscal year basis.

  4. What is a Fiscal Year? • Each month throughout the year closes usually on the 5th working day of the following month. • August usually closes a day or two earlier. • When August closes, the Fiscal Year also closes.

  5. Annual Financial Report • At the end of the fiscal year, the Office of Accounting prepares an Annual Financial Report (AFR). • This report is sent to UT System and is combined with reports from other UT campuses.

  6. Document Processing • Accounting processes must briefly stop at the end of the year, so that the AFR information is accurate. • Document processing deadlines are established for this reason. • These deadlines are published by the Office of Accounting and are available through askUS.

  7. Document Processing • Documents not processed by the deadlines are automatically returned. • Many documents can be converted into the new fiscal year, once the new year has started.

  8. More Document Processing • Some documents in the old fiscal year may have service dates in the new fiscal year. • These transactions will then“Roll Forward” into the new year.

  9. More Document Processing • Preliminary documents are created so that departments may see which transactions will roll forward. • Adjustments can then be made to the documents with these transactions before the actual roll forward.

  10. More document processing • How does this work exactly? • 1) *DEFINE will display a list of preliminary document ID numbers. • 2) Paste these document ID numbers into the GT6 screen, misc field, to see what transactions are in your view. • 3) The original department doc ID numbers will be in the transaction descriptions.

  11. More document processing • 4) Enter the original doc ID numbers in the GT6 screen to see their transactions. • 5) Enter a “T” next to a transaction to Travel to the original document. • 6) Then go into the line items and blank out the moreable on the far right side. > • 7) Review and adjust the department service dates, if necessary.

  12. Roll Forward Transactions • Get Preliminary Document ID and paste in GT6 • Get Original Document ID and paste in GT6 • Travel to original document • and go into the line items section • Blank out the moreable, then adjust • Departmental Service Dates

  13. Fiscal Year End Information • Accounts are fiscal year specific. • At the end of each fiscal year, accounts are copied into the new fiscal year. This process is called “Roll Over”. • Transactions are not copied, but remain fiscal year specific.

  14. Fiscal Year End Information • Many account balances are brought forward into the new fiscal year (depending on the account group rules). This process is called “Balance Forward”. • Other accounting adjustments are also made for the fiscal year end and for the new fiscal year.

  15. Fiscal Year End Information • Examples of these other accounting adjustments include: • Initial Balance Forwards • Correcting object codes • Correcting account numbers • Adjusting Inventory • Clearing overdrafts • Lapsing expired account balances

  16. Fiscal Year End Information • Balance Forward Rules • Different Rules for each account group. • Many accounts move balances and encumbrances forward, some do not. • All rules are listed with the Account Groups handout in the Handbook of Business Procedures.

  17. Fiscal Year End Information • Extra processing time is needed for the balance forwards, adjustments and to prepare the AFR. • Two extra months provide this time within the Fiscal Year: • 13th month – end of old year • 14th month – start of new year

  18. 13th Month • The 13th month is a “virtual month” which runs during the calendar months of September, October and sometimes November. • Any activity in the 13th month is recorded in the old fiscal year with August 31 as the record date. • Transactions and balances are displayed in records for “THR”.

  19. 14th Month • Once the 13th month is closed, the ending balances for the month are copied into the 14th month. • The 14th month is always recorded in the new fiscal year and only includes balance forward entries. • The 14th month shows the true beginning balance for the new fiscal year.

  20. Departmental Ledgers • Departments using code schemes must copy them into the new year. • Only office managers or delegates can do this – using UC3 in *DEFINE. • This can only be done once!

  21. Departmental Ledgers • Departments who reconcile their accounts using LMM should post the year end transactions “as is”. • Material encumbrance adjustments with 0299 object codes can be safely rejected – using LP8.

  22. REVIEW • The UT Fiscal Year is September 1 through August 31. • Documents have processing deadlines before the year closes. • The year closes when August closes. • Accounts “roll over” into the new year (unless they expire).

  23. REVIEW • Initial balances “balance forward” into the new year (depending on the rules). • Transactions with service dates in the new year also roll forward.

  24. REVIEW • A 13th month happens at the end of the fiscal year – and runs until the October or November. • Adjustments are processed during the 13th month.

  25. REVIEW • A 14th month happens at the beginning of the new fiscal year – after the 13th month closes. • The final balance of the 13th month becomes the balance of the 14th month – and shows adjusted balance forward for the new fiscal year.

  26. REVIEW • Once the fiscal year end process is completed and all adjustments have been made, an Annual Financial Report (AFR) is prepared for UT Austin. • This report is sent to UT System.

  27. REVIEW • Code schemes should be copied forward using UC3. • Departmental records should be posted as they appear. Those with object code 0299 may be rejected.

  28. RESOURCES • Document Deadlines • Fiscal Year-End Handout • Account Group Rules

  29. RESOURCES • Training Resources http://www.utexas.edu/business/accounting/et/training/training.php#fye • AskUS: askUS@austin.utexas.edu • https://austin-utexas.custhelp.com/ • User Services Helpline: 512-471-8802

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