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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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Presentation Transcript
  • 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?
what is a fiscal year
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.
what is a fiscal year1
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.
annual financial report
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.
document processing
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.
document processing1
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.
more document processing
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.
more document processing1
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.
more document processing2
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.
more document processing3
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.
roll forward transactions
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
fiscal year end information
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.
fiscal year end information1
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.
fiscal year end information2
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
fiscal year end information3
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.
fiscal year end information4
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
13 th month
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”.
14 th month
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.
departmental ledgers
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!
departmental ledgers1
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.
  • 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).
  • Initial balances “balance forward” into the new year (depending on the rules).
  • Transactions with service dates in the new year also roll forward.
  • 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.
  • 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.
  • 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.
  • Code schemes should be copied forward using UC3.
  • Departmental records should be posted as they appear. Those with object code 0299 may be rejected.
  • Document Deadlines
  • Fiscal Year-End Handout
  • Account Group Rules
  • Training Resources
  • AskUS:
  • User Services Helpline: 512-471-8802