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 13 th and 14 th 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 5 th 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 thenRoll 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 calledRoll 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 calledBalance 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 14 th month – start of new year

18. 13 th Month The 13 th month is a virtual month which runs during the calendar months of September, October and sometimes November. Any activity in the 13 th 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. 14 th Month Once the 13 th month is closed, the ending balances for the month are copied into the 14 th month. The 14 th month is always recorded in the new fiscal year and only includes balance forward entries. The 14 th 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 13 th month happens at the end of the fiscal year – and runs until the October or November. Adjustments are processed during the 13 th month.

25. REVIEW A 14 th month happens at the beginning of the new fiscal year – after the 13 th month closes. The final balance of the 13 th month becomes the balance of the 14 th 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/accounti ng/et/training/training.php#fye http://www.utexas.edu/business/accounti ng/et/training/training.php#fye AskUS: askUS@austin.utexas.edu askUS@austin.utexas.edu https://austin-utexas.custhelp.com/ User Services Helpline: 512-471-8802