Overview
Provides an overview of the University’s month-end and year-end financial closing process.
Purpose
This policy is to provide an overview of the University’s month-end and year-end closing process including training, deadlines and departmental reviews.
Definitions
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The University’s official book of record for financial transactions
- Governmental Accounting Standards Board which establishes and improves standards of accounting and financial reporting for U.S. state and local government organizations
Policy
The University’s financial records are to be prepared on an accrual basis in accordance with accounting principles prescribed by GASB and generally accepted in the United States.
All departments are responsible for meeting monthly and annual fiscal close related deadlines.
Departments are responsible for ensuring their monthly financial results are reasonable, ensuring all transactions have been appropriately recorded, the results are in line with expectations, and trend fluctuations are acceptable.
Annually, the Controller’s Office provides fiscal close training. Individuals with financial close related responsibilities are required to participate in the year-end financial close training in order to ensure they have a clear understanding of the year-end requirements.
A monthly calendar is published on the Controller’s Office website to communicate specific cutoff dates.
Departmental staff should note the key deadline dates for submitting various documents to ensure revenues and expenses are recorded in the appropriate fiscal year.
All journal entries must have adequate supporting documentation and should be independently validated and approved by the appropriate level of review before posting.
Individuals reviewing and approving journal entries should ensure the journal entry is accurate and has been made in compliance with any external restrictions and in accordance with any specifications additionally communicated by the Controller’s Office or Budget and Resource Management.
On a monthly basis, Departments are responsible for reviewing monthly financial results for reasonableness to ensure all transactions have been appropriately recorded, results are in line with expectations, and trend fluctuations are acceptable.
All general ledger balance sheet account reconciliations must be prepared, reviewed and approved within 60 days following the last day of the month. It is important that management set clear timelines with their staff to ensure that this deadline is met. Appropriate documentation to support the general ledger account balance must be attached to the reconciliation and reconciling items must be clearly documented and resolved as needed in a timely manner.
Annually, the Controller’s Office communicates specific additional year-end deadlines.