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Fiscal Year-End Closing

Fiscal Year-End Closing. Local Government Corporation. Fiscal Year-End Closing. General Overview. Clean up and correct current fiscal year data. Ensure all current year accounting activity has been processed. Make entries in preparation for next fiscal year.

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Fiscal Year-End Closing

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  1. Fiscal Year-End Closing Local Government Corporation

  2. Fiscal Year-End Closing General Overview • Clean up and correct current fiscal year data • Ensure all current year accounting activity has been processed • Make entries in preparation for next fiscal year • Close the PO File (if applicable) • - Make Pre-Closing Backup • Close the month of June • - Make Mid-Closing Backup (recommended) • Close the fiscal year • - Make Post-Closing Backup

  3. Fiscal Year-End Closing Clean up and correct current fiscal year data • Things to look for: • - • - • - • - • Some “Red Flags” are: • - • - • - • - • Over expenditures that need budget amendments • Payables & receivables from prior fiscal year that need adjusting • Miscellaneous posting errors that need correcting • “Due to” and/or “Due from” accounts Liability accounts with debit balances (balance sheet report) Asset accounts with credit balances (balance sheet report) Expenditure accounts greater than 100% of budget (expenditure report) Liability accounts with left over pennies (balance sheet report) The following screens demonstrate typical errors

  4. A Problem Balance Sheet Fiscal Year-End Closing Miscellaneous posting errors Odd debit balances Leftover pennies Major Problem

  5. Over Expenditure? Fiscal Year-End Closing

  6. Posting Error? Fiscal Year-End Closing

  7. A favorite report displaying potential budget problems Fiscal Year-End Closing The following screen shows you where to get the above report

  8. Where to get GL detail Fiscal Year-End Closing This is where to get the GL Detail Listing report from previous screen

  9. Fiscal Year-End Closing Ensure all current year accounting activity has been processed • Are there any entries needed to Reserve Accounts? NOTE: GASB54 Reporting: The GASB54 Balance Sheet will not print during the year end closing. GASB54 Accounting will be maintained in a data directory, separate from your regular set of data files. The GASB54 Accounting process can be ran anytime after the Fiscal Year End process has been completed. For detailed instructions for GASB54 processing, visit http://lgdocs.lgcinternal.com/fg/fye/pdf/GASB54%20Yr%20End%20Instructions.pdf • Reprint reports to verify corrective entries had the desired effect? • Clean up PO file (if applicable) • - • - • - • - Have all current year PO’s been entered? Are there partially liquidated PO’s that need liquidating? Do current year PO totals match 34110-Current Year Encumbrance Control? Any prior year PO’s that need canceling?

  10. Fiscal Year-End Closing Purchasing - Fiscal Year End Update Year To Date Totals Clears and updates the fiscal year to date totals on the vendor activity screen. It should be run by entering July 1 of the NEW fiscal year and June 30 of the NEW fiscal Year Before running Year End PO Closing you might want to run the PO Balancing Report (if applicable)

  11. Fiscal Year-End Closing Purchasing - Fiscal Year End If your PO’s are making encumbrance entries to the ledger, the PO Balancing Report is a very useful tool to help troubleshoot PO problems.

  12. Fiscal Year-End Closing The PO Balancing Report These amounts are from PO’s that were processed in Feb but mistakenly given a July date. So, they posted to the next fiscal year. The PO’s were then voided but they were voided with an effective date of Feb. The correction didn’t post to the same fiscal year as the original encumbrance. Therefore, these amounts are still an outstanding problem.

  13. Fiscal Year-End Closing Cleaning up the PO File • Cleaning the PO file only needs to be done if your PO’s are making encumbrance entries to the ledger • If you are satisfied that all outstanding PO’s are valid And • No additional PO’s for the current fiscal year need to be entered Then • You are ready to close the PO file Closing the PO file makes the necessary GL entries to roll current year encumbrances to Prior Year encumbrances

  14. Fiscal Year-End Closing Before Closing PO File • Enter PO’s dated June • Enter PO’s dated July • Print checks dated June on June PO’s • Print checks dated July on July PO’s You May . . . You must not print checks dated July on June (or current year) PO’s

  15. Fiscal Year-End Closing After PO file closed but before year end closing You may . . . but then you must run Update Year End PO Closing option • Enter PO’s dated June – • Enter PO’s dated July • Print checks dated June - • Print checks dated July on July PO’s as long as it’s not attached to ANY PO’s You must not print checks dated June attached to ANY PO’s

  16. Fiscal Year-End Closing After PO file closed but before year end closing If you should need to enter June PO’s after running the Year End PO Closing, you may do so but you will need to run the Update Year End PO Closing process. It will update only the PO’s entered since running the previous PO Closing option.

  17. Fiscal Year-End Closing After Year-End Closing Business as usual - all checks and accounting entries must be dated July 1 or later At this point you are about ready to actually begin the closing process. But before you do a few reminders. You may . . .

  18. Fiscal Year-End Closing Reminders . . . • Make sure your LGC remote support capability is working properly • No one should be processing ANY work while you are closing June or Year End • Make sure you have needed supplies, toner/printer ribbons, 2-part paper, etc.

  19. Fiscal Year-End Closing Reminders . . . 1. “Pre Year-End Backup” (daily) 2. “Mid Year-End Backup” (daily) 3. “Post Year-End Backup” (system) 4. Copy Files to Work Directory

  20. Fiscal Year-End Closing Reminders . . . You may want to check your accounting date To do this go to . . . Accounting, File Handler, File Maint. System Maint. Accounting Parameter Maint And be sure the Accounting Date is June

  21. Fiscal Year-End Closing Reminders . . . Check the Update Budget File at Year-End parameter Make sure that this field is set to ‘NO’ so that system won’t update the budget after the year is closed. Using the ‘NO’ setting you will have to manually update your prior year totals.

  22. Fiscal Year-End Closing Month End Closing The month end closing for June looks and acts like any other month end closing Process the 4 steps in sequence as you normally would

  23. Fiscal Year-End Closing Beginning the closing process Make “Pre Year-End Closing Backup” (daily) Close month of June – same as you would any other month Before beginning the Year End Closing Process be sure to load the Year-End update from LGC

  24. Fiscal Year-End Closing Year-End Closing Process • After closing June • Make “Mid Year-End Closing Backup” (Daily) • Copy Files to Work Directory

  25. Fiscal Year-End Closing Year-End Closing Process If you attempt to enter the Year End Closing option without completing this process you will be presented with the following error message . . .

  26. Fiscal Year-End Closing Year-End Closing Process Click OK then go back and run the option to copy files to work Directory

  27. Fiscal Year-End Closing Year-End Closing Process Click OK then go back and run the option to copy files to work Directory

  28. Fiscal Year-End Closing Year-End Closing Process Depreciation Updated? A reminder to update G/L from Fixed Assets

  29. Fiscal Year-End Closing Year-End Closing Process City Year-End Menu After copying files to work directory, Run these steps in sequence to close the year end

  30. Fiscal Year-End Closing Year-End Closing Process After completing step 3 stop and send a daily backup to LGC if we are printing your reports

  31. Fiscal Year-End Closing Year-End Closing Process Once your reports have returned from LGC you need to complete step 4 by running SCL ACF007

  32. How To Run ACF007 Fiscal Year-End Closing • Go to 'Sys Opt', and select 'Run Freestanding SCL' • At the program name, enter ACF007 • • Press <enter> at the 'Continue' prompt • • For 'Period', enter a '2' for Year End • • Under 'Process Status', press <enter> down to 'Accounting Reports' and enter '9' for 'Completed' • • Press 'Update' (F4) and press <enter> at 'Yes' • • Press 'Esc' key to exit and go back to the GL Year End menu. This allows you to pick up with Step 5.

  33. Fiscal Year-End Closing Year-End Closing Process Step 6. Point of No Return For Counties! Once this step is started you cannot restart the closing process without reloading a backup

  34. Fiscal Year-End Closing Year-End Closing Process Step 5. Point of No Return For Cities! Once this step is started you cannot restart the closing process without reloading a backup

  35. Fiscal Year-End Closing Post Year-End Closing Process • After running all steps of End of Year Process make “Post Year-End Closing Backup” (System) • Compare June 30 Trial Balance that printed during Month End to the Trial Balance that printed during Year End. Make sure balances rolled correctly

  36. Fiscal Year-End Closing Post Year-End Closing Process County Trial Balance Ending balances for Asset and Liability accounts should roll to the July 1 beginning balances The balance in the Fund Balance Account reflects the net difference between Revenues/ Expenditures, Prior Year Encumbrances, and Reserve Expenses For Prior Year

  37. Fiscal Year-End Closing Post Year-End Closing Process County Trial Balance Balances from Revenues and Expenditures close into the Fund Balance account. The Current Yr Expenditure and Revenue Control accounts always begin the fiscal year with a zero balance (they never roll to the next fiscal year) Only Beginning Balances will show on this report (no July entries)

  38. Fiscal Year-End Closing Post Year-End Closing Process City Trial Balance Ending balances for Asset and Liability accounts should roll to the July 1 beginning balances The balance in the Fund Balance Account does not roll. It reflects the net difference between Revenues and Expenditures

  39. Fiscal Year-End Closing Post Year-End Closing Process City Trial Balance Balances from Revenues and Expenditures close into the Fund Balance account. These accounts always begin the fiscal year with a zero balance (they never roll to the next fiscal year) Only Beginning Balances will show on this report (no July entries)

  40. GASB54 Accounting The GASB54 Balance Sheet will not print during the year end closing. GASB54 Accounting will be maintained in a data directory, separate from your regular set of data files. The GASB54 Accounting process can be ran anytime after the Fiscal Year End process has been completed. For detailed instructions for GASB54 processing, visit: http://lgdocs.lgcinternal.com/fg/fye/pdf/GASB54%20Yr%20End%20Instructions.pdf

  41. GASB 54 Accounting

  42. July to June: • 34120-Reserved for encumbrances • 34990-Reserverd for other general purposes • 39000-Undesignated Fund Balance Changes to Fund Balance Copy Files for GASB reporting • GASB 54 • 34200-Nonexpendable • 34500-Restricted • 34600-Committed • 34700-Assigned • 34900-Unassigned Journal Entry to Restate Equity Balances

  43. Fiscal Year-End Closing Year-End Closing Process Congratulations! You have successfully completed the Year End Closing Process If you have any questions, call LGC support

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