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. Clean up and correct current fiscal year data
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. Fiscal Year-End Closing
Over Expenditure?

6. Fiscal Year-End Closing
Posting Error?

7. A favorite report displaying potential budget problems
Fiscal Year-End Closing
A favorite report displaying potential budget problems
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. Ensure all current year accounting activity has been processed
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
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 Current Year Encumbrance Control?
Any prior year PO’s that need canceling?

10. Purchasing - Fiscal Year End
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. Purchasing - Fiscal Year End
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. The PO Balancing Report
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. Before Closing PO File You May . . .
Fiscal Year-End Closing
Before Closing PO File
You May . . .
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 must not print checks dated July on June (or current year) PO’s

15. After PO file closed but before year end closing
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. After PO file closed but before year end closing
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. After Year-End Closing
Fiscal Year-End Closing
After Year-End Closing
You may . . .
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.

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

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

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

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

29. Year-End Closing Process
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. Year-End Closing Process
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. Year-End Closing Process
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. Fiscal Year-End Closing
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. Year-End Closing Process
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. Year-End Closing Process
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. Post Year-End Closing Process
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. Post Year-End Closing Process
Fiscal Year-End Closing
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. Post Year-End Closing Process
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. Post Year-End Closing Process
Fiscal Year-End Closing
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. Post Year-End Closing Process
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:

41. GASB 54 Accounting

42. Changes to Fund Balance
July to June:
34120-Reserved for encumbrances
34990-Reserverd for other general purposes
39000-Undesignated Fund Balance
Copy Files for GASB reporting
GASB 54
34200-Nonexpendable
34500-Restricted
34600-Committed
34700-Assigned
34900-Unassigned
The redistribution will be through the posting of a journal entry. As you can probably gather, the key step is the preparation of the entry.
Journal Entry to Restate Equity Balances

43. Year-End Closing Process
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