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Fiscal Year-End Closing Local Government Corporation.

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Presentation on theme: "Fiscal Year-End Closing Local Government Corporation."— Presentation transcript:

1 Fiscal Year-End Closing Local Government Corporation

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

3 Things to look for: - - - - Some Red Flags are: - - - - Fiscal Year-End Closing Clean up and correct current fiscal year data 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 Miscellaneous posting errors Odd debit balances Leftover pennies Major Problem Fiscal Year-End Closing A Problem Balance Sheet

5 Fiscal Year-End Closing Over Expenditure?

6 Posting Error? Fiscal Year-End Closing

7 The following screen shows you where to get the above report A favorite report displaying potential budget problems

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

9 Fiscal Year-End Closing 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.pdfhttp://lgdocs.lgcinternal.com/fg/fye/pdf/GASB54%20Yr%20End%20Instructions.pdf Ensure all current year accounting activity has been processed Reprint reports to verify corrective entries had the desired effect? Clean up PO file (if applicable) - Have all current year POs been entered? Are there partially liquidated POs that need liquidating? Do current year PO totals match 34110-Current Year Encumbrance Control? Any prior year POs that need canceling? Are there any entries needed to Reserve Accounts?

10 Fiscal Year-End Closing 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) Purchasing - Fiscal Year End

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

12 Fiscal Year-End Closing These amounts are from POs that were processed in Feb but mistakenly given a July date. So, they posted to the next fiscal year. The POs were then voided but they were voided with an effective date of Feb. The correction didnt post to the same fiscal year as the original encumbrance. Therefore, these amounts are still an outstanding problem. The PO Balancing Report

13 Fiscal Year-End Closing Cleaning the PO file only needs to be done if your POs are making encumbrance entries to the ledger Cleaning up the PO File If you are satisfied that all outstanding POs are valid And No additional POs 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 Enter POs dated June Enter POs dated July Print checks dated June on June POs Print checks dated July on July POs You May... You must not print checks dated July on June (or current year) POs Fiscal Year-End Closing

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

16 After PO file closed but before year end closing If you should need to enter June POs 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 POs entered since running the previous PO Closing option. Fiscal Year-End Closing

17 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... Fiscal Year-End Closing

18 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. Fiscal Year-End Closing

19 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 Fiscal Year-End Closing

20 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 Fiscal Year-End Closing

21 Reminders.. Reminders... Make sure that this field is set to NO so that system wont update the budget after the year is closed. Using the NO setting you will have to manually update your prior year totals. Fiscal Year-End Closing Check the Update Budget File at Year-End parameter

22 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 Fiscal Year-End Closing Month End Closing

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

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

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

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

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

32 Fiscal Year-End Closing How To Run ACF007 Go to 'Sys Opt', and select 'Run Freestanding SCL' At the program name, enter ACF007 Press at the 'Continue' prompt For 'Period', enter a '2' for Year End Under 'Process Status', press down to 'Accounting Reports' and enter '9' for 'Completed' Press 'Update' (F4) and press 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 Step 6. Point of No Return For Counties! Once this step is started you cannot restart the closing process without reloading a backup Fiscal Year-End Closing Year-End Closing Process

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

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 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 County Trial Balance

37 Fiscal Year-End Closing Post Year-End Closing Process 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 ) County Trial Balance

38 Fiscal Year-End Closing Post Year-End Closing Process 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 City Trial Balance

39 Fiscal Year-End Closing Post Year-End Closing Process 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 ) City Trial Balance

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 http://lgdocs.lgcinternal.com/fg/fye/pdf/GASB54%20Yr%20End%20Instructions.pdf

41 GASB 54 Accounting

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

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


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