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Fiscal Year End Process - The University of Texas at Austin_1_


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									Fiscal Year-End Process

• What is a fiscal year?
• What happens at the end of a fiscal
     •Annual Financial Report
     •Document Processing
     •Fiscal Year End adjustments
        • Roll Over, Roll Forward
     •13th and 14th Month processes
     •Departmental Ledgers
• What resources are available?
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.
What is a Fiscal Year?
  Each month throughout the year
 closes usually on the 5th working day
 of the following month.
  August usually closes a day or two
  When August closes,
 the Fiscal Year also closes.
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.
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.
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.
More Document Processing
 Some documents in the old fiscal
 year may have service dates in the
 new fiscal year.
 These transactions will then
 “Roll Forward” into the new year.
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.
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
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.
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
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 called
 “Roll Over”.
 Transactions are not copied, but
 remain fiscal year specific.
Fiscal Year End Information
 Many account balances are brought
 forward into the new fiscal year
 (depending on the account group
 rules). This process is called
 “Balance Forward”.
 Other accounting adjustments are
 also made for the fiscal year end
 and for the new fiscal year.
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
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.
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
  14th month – start of new year
13th Month
 The 13th month is a “virtual month”
 which runs during the calendar
 months of September, October
 and sometimes November.
 Any activity in the 13th month is
 recorded in the old fiscal year with
 August 31 as the record date.
 Transactions and balances are
 displayed in records for “THR”.
14th Month
 Once the 13th month is closed, the
 ending balances for the month are
 copied into the 14th month.
 The 14th month is always recorded
 in the new fiscal year and only
 includes balance forward entries.
 The 14th month shows the true
 beginning balance for the new
 fiscal year.
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!
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.
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).

Initial balances “balance forward”
into the new year (depending on
the rules).

Transactions with service dates in
the new year also roll forward.
A 13th month happens at the end of
the fiscal year – and runs until the
October or November.
Adjustments are processed during
the 13th month.
A 14th month happens at the
beginning of the new fiscal year –
after the 13th month closes.
The final balance of the 13th month
becomes the balance of the 14th
month – and shows adjusted balance
forward for the new fiscal year.
 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.

Code schemes should be copied
forward using UC3.

Departmental records should be
posted as they appear. Those with
object code 0299 may be rejected.
 Document Deadlines
 Fiscal Year-End Handout
 Account Group Rules
 Training Resources

 AskUS: askUS@austin.utexas.edu

 User Services Helpline: 512-471-8802

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