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FISCAL YEAR END CHECKLIST

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					 FISCAL YEAR-END CHECKLIST

Year-end closing is the process of reviewing and adjusting all accounts to

ensure that they accurately reflect the activities for the fiscal year. It is the

final step in the accounting cycle before preparing a financial statement. The

goal of year-end closing is to provide readers of a school district’s financial

statements with the most accurate financial picture possible. To do this,

school districts apply various recognized policies. These policies are derived

from several sources, including the California School Accounting Manual and

the pronouncements of the Governmental Accounting Standards Board

(GASB).



After the closing entries have been made and all revenue and expenditure

accounts have been closed, the ending fund balance is known and available

for making adjustments to the current budget year.




                                      3.1                                    May 2008
PROCEDURES TO ENSURE ACCURATE
           CLOSING
 1.   Prepare a closing schedule. The first step in the closing process is to
      plan and develop a schedule of events. There are various due dates
      that must be met such as report deadlines, data processing deadlines
      at the County Office of Education and within the LEA, physical
      inventory and so forth. A calendar combining all of the important
      events should be established and followed throughout the closing
      process.

 2.   Review all asset accounts. Various asset accounts must be reviewed
      at year-end. A reconciliation of all cash accounts must be prepared
      and any adjusting entries must be recorded. The stores inventory
      account must be adjusted to agree with the physical count. Prepaid
      expenditures must be reviewed and analyzed to ensure that no
      adjustments are needed.

 3.   Analyze and close out prior year receivable and payable accounts. At
      year-end, the agency must close out any amounts remaining in the
      prior year receivable or payable accounts. During the year,
      differences will occur between amounts actually received or paid
      versus what had been accrued. These adjustments should be made
      throughout the year as they occur, but a final analysis must be made if
      a balance remains on these accounts.

 4.   Accrue accounts receivable. Various sources of revenues are due to
      the agency at year-end. These amounts must be recorded as
      accounts receivable. This will record the revenue in the proper fiscal
      year. There are specific revenue recognition policies referring to such
      items as revenue limit, special education master plan, interest,
      deficits, state lottery, etc. that provide guidance on how to calculate
      these receivables.

 5.   Accrue accounts payable. Any amounts due to others at year- end for
      receipt of goods or services must be recorded as accounts payable.
      This will record the expenditure in the proper fiscal year. There are
      common types of payables such as payroll, employee benefits,
      utilities, contracts and so forth.




                                    3.2                                  May 2008
6.    Adjust grants and entitlements: Specific recognition policies must be
      followed in accounting for grants and entitlements. Each project must
      be reviewed separately and appropriate entries must be made. The
      FORM CAT in the SACS software must be completed prior to closing.

7.    Ensure accurate accounting for leases, COPs and Mello-Roos. A
      variety of accounting entries relating to these must be recorded before
      or during the year-end closing process.

8.    Ensure that all inter-program and inter-fund transactions are
      reconciled. Any transfers of expenditures between programs or funds
      must be reconciled.

9.    Review unique closing procedures for other funds and account
      groups. Unique items must be considered at year-end regarding
      funds other than the general fund.

10.   Properly identify the components of the ending fund balance. Year-
      end entries are necessary to classify the components of the ending
      fund balance correctly. Amounts may be reserved, legally restricted,
      designated or undesignated.

11.   Are the books ready for the annual audit? The goal of year-end
      closing is to ensure that the LEA’s financial statements are accurate
      and ready for audit.

12.   Complete the year-end closing checklist. A master checklist that is
      provided by the County Office of Education should be completed to
      ensure that all areas have been addressed.




                                    3.3                                  May 2008
   YEAR-END CHECKLIST

The next few pages contain a checklist for your use
during the closing process. Some districts may vary
the order from that shown on this checklist, but the
SACS FORM RL and the CAT FORM need to be
completed before the district is closed.




                        3.4                            April 2010
             YEAR-END CLOSING CHECKLIST

Entries Made Prior to Closing
            Clear Prepaid Expense (9330)
            Clear Deferred Revenue (9650)
            Clear Deposits in Transit (9140)
            Balance Prior Year Accounts Receivable accruals (9201/9202)
            Clear Prior Year Due To / Due From (9312 & 9612)
            Balance Prior Year Current Liabilities (9510/9511)
            Clear Suspense for all funds (Resource 9999 &/or
            Objects 7999 & 8999)
            Transfer of in-lieu property taxes to Charter Schools
            (refer to EC 47635)
            Physical Inventory
            Post Audit Adjustments / COE
            (Independent districts and Comm. Colleges post their own)
            Remove Vendor Invoices (FIS Report) / COE process
            Clear Encumbrances (FIS Report) / COE process


Closing Entries/Accruals
            Close Out Current Liabilities - Prior Year (9510/9511)
            Close Out Accounts Receivable - Prior Year (9201/9202)
            Schedule of Expenditure Accruals (9510)
            Schedule of Income Accruals (9201)
_____       State Aid RL
            Adjust Unemployment Insurance Calculation based on actual
            data
            Verify & Post Cafeteria Reimbursement Accrual
            Balance Cafeteria Account vs. Fund
            Verify & Post Child Development Accruals
            Verify & Post State School Building Accruals
            Fund 21-10 - Post interest earned on bond proceeds invested
            outside of the County Treasury
            Reconcile Petty Cash
            Reconcile Revolving Cash
            Reconcile Clearing Accounts


Payroll Accruals - 9910s
            Accrue 9910 Balances




                                 3.5                               April 2010
       YEAR-END CLOSING CHECKLIST

Direct/Indirect Costs
             Direct Costs
                   Intrafund in Balance (5710)
                    Interfund in Balance (5750)
             Indirect Costs
                    Intrafund in Balance (7310)
                    Interfund in Balance (7350)


Special Transfers
_____      Special Ed Revenue Limit Transfer (optional)
            Community Day Schools Transfer for the ADA portion only
            Revenue Limit 50% Reduction
            PERS Reduction Transfer
            Meals for Needy Transfer
           Other


Categorical Programs
            Accrue Lottery (Resources 1100 & 6300)
            Accrue CSR (use of resource 1300 is optional)
            Instructional Materials Interest Transfer (Not required from 2008-09 to
             2014-15)
            Federal Transferability
            Distribute accumulated NCLB administrative costs to participating
            programs
            Special Education Encroachment to the Unrestricted
            General Fund
            Transportation Encroachment to the Unrestricted General
            Fund
            Routine Restricted Maintenance Account Transfer from Unrestricted
            General Fund
            Complete FORM CAT
            Post Accounts Receivable
            Post Deferred Revenue
            Federal Interest




                                    3.6                                 May 2011
             YEAR-END CLOSING CHECKLIST

Deferred Maintenance (optional)
           Deferred Maintenance Transfer (Auditor’s Transfer and/or
           Due To/Due From)
                 Use local funds
                 Use current year excess RMA
                 Use subsequent year excess RMA
           Deferred Maintenance Certification


Reserves
            Establish Reserves for Revolving Cash Fund
            Reconcile Stores General Ledger to Physical Inventory
            Establish Reserves for Stores
            Establish Reserves for Prepaid Expenditures
            Establish Reserves for legally restricted balances
            Establish Reserves for Economic Uncertainties and/or Other
            Designations
            Prepare a crosswalk for new fund balance reporting for auditor
            Check Regional Occupational Program/Center Balance for 15%
            carryover


GASB 34
            Verify all expenditures charged to function 8500 and/or
            object 6XXX
            Extract fund data into GASB 34 component of SACS
            software. Analyze results. Review SACS accounting for
            reconciliation.
            Ensure that ASSET & DEBT forms match GSNA


GASB 45
            Verify that Normal Costs and UAAL Costs are charged in all funds
            appropriately
            Review government-wide statements to ensure that accounts have
            extracted properly into the SACS software and do any necessary
            conversion entries




                                  3.7                                 May 2011
                YEAR-END CLOSING CHECKLIST

District Checklist
            Complete District Checklist
            Complete SACS software Unaudited Actuals Technical
            Review Checks and resolve exceptions
            Call Financial Accounting at (858) 292-3652 or
            (858) 569-5324 so they can begin their audit process. Do
            not post after you have called them.
            Fax or e-mail completed District Checklist and TRC to Financial
            Accounting at (858) 571-7200 or finacct@sdcoe.net
            Wait for Financial Accounting to call with report run date
            Order Reports


Other - Notes

           Other
           Other
           Other
           Other
           Other
           Other




                                3.8                              May 2011
                                       INVENTORY

During year-end closing, these questions should be answered regarding inventory
accounting.




   1.   If inventory is a material asset, has the auditor been notified of the dates that the
        physical inventory is to be taken? (Some auditors like to be present to check
        procedures and do a sampling.)




   2.   If the physical inventory has been completed, have the adjusting entries been
        made to bring the book inventory to actual?




   3.   Have fuel inventories been taken and the expenditures for gas, diesel and oil been
        reduced to properly reflect expenditures in the transportation account?




   4.   Are there other inventories that need to be considered in the transportation,
        maintenance, or food service department?




                                             3.9                                   May 2008
DISTRICT CLOSING CHECKLIST

 After all the year-end processes are completed, it is time
 to begin the final checklist. On-line districts should
 complete this checklist.

 Once this checklist is completed, fax or e-mail a copy to
 Financial    Accounting      at    (858)      571-7200       or
 finacct@sdcoe.net and then call Financial Accounting at
 (858) 292-3652 or at (858) 569-5324, so that they may
 begin their audit procedures. Once finished, Financial
 Accounting will call to inform the district of the final report
 run date.




                            3.10                               April 2010
                                          District Closing Checklist



District                                                                                         Dist #

Completed by                                                                                     Date


1. Use "DDACCT" to find funds in use.                     *** REMEMBER TO USE C/Y ***


2. Use "OBJBAL" to verify ZERO balances for objects 7999 & 8999 for all funds.


           FUNDS      03-00 06-00
       Object 7999
       Obj-SUBS?
       Object 8999
       Obj-SUBS?
       Object 8980
       Object 8990




3. Use "EXPINQ" & "REVINQ" with a resource of 9999 to verify ZERO balances for resource 9999 for all funds.


           FUNDS      03-00 06-00
       Resouce 9999



4. Use "EXPINQ" with function MAJOR to verify all major object balances are POSITIVE.
   Encumbrances must be ZERO.


           FUNDS      03-00 06-00
            1000
            2000
            3000
            4000
            5000
            6000
            7000




                                                           3.11                                               May 2011
                                            District Closing Checklist



5. Use "REVINQ" to verify Non-Revenue Limit Adjustment has been made as appropriate for your district.
   Fifty percent (50%) of the amount in revenue accounts 8081-8082 must be transferred from Revenue Limit
   Sources to Other Local Income.


      03-00 - 8081                                X 50% =                               (A)

      03-00 - 8082                                X 50% =                               (B)

                                          Total A + B




      03-00 - 8089                                          =    03-00 - 8691
                          Debit balance equaling                                   Credit balance equaling
                               total of A + B                                           total of A + B



6. Using "OBJBAL" to verify that the following accounts are equal in each fund.


 Fd       Asset Account                                          Reserve Account
        9130                                                    = 9711                                       Revolving Cash
        9320                                                    = 9712                                       Stores
        9330                                                    = 9713                                       Prepaid Expense

        9130                                                    = 9711                                       Revolving Cash
        9320                                                    = 9712                                       Stores
        9330                                                    = 9713                                       Prepaid Expense

        9130                                                    = 9711                                       Revolving Cash
        9320                                                    = 9712                                       Stores
        9330                                                    = 9713                                       Prepaid Expense



7. Use "OBJBAL" to verify any balance in 9140. The only balance should be a deposit sent to Wells Fargo Bank
   by June 30 and not posted until July.

   Use "GLTRBL" to verify 9790-ACTUAL is either a POSITIVE or ZERO fund balance.

         FUNDS       03-00 06-00
           9140
           9790-A




                                                                3.12                                         April 2010
                                         District Closing Checklist



8. Use "GLTRBL" to verify ZERO balances. (Be sure to check for SUB ACCOUNTS)
   Use "OBJBAL" if there are no SUB ACCOUNTS.

         FUNDS      03-00 06-00
          9202
          9204
          9312
          9505
          9511
          9513
          9612
          9620
          9720
          9910
          9830



9. Use "OBJBAL" with Resource Total checked to verify the following accounts have DEBIT balances.
   A positive amount signifies a debit balance.

         FUNDS      03-00 06-00
          9120
          9130
          9135
          9201
          9203
          9290
          9311
          9315
          9320
          9330
          9340
          9350
          9785




                                                         3.13                                       April 2010
                                           District Closing Checklist


10. Use "OBJBAL" with Resouce Total checked to verify the following accounts have CREDIT balances.
    A positive amount signifies a credit balance.


         FUNDS         03-00 06-00
          9502
          9510
          9512
          9590
          9611
          9641
          9650
          9661
          9662
          9664
          9665
          9666
          9667
          9668
          9669
          9711
          9712
          9713
          9719
          9730
          9740
          9770
          9780


                               When you have completed the District Checklist,
              fax or e-mail a copy to Financial Accounting (858) 571-7200 or finacct@sdcoe.net
                        and call Financial Accounting (858) 292-3652 or (858) 569-5324
                                    to tell them you are ready to be audited.


11. Report Ordering.

                         Please wait for Financial Accounting to finish your audit before ordering reports.

     a. Financial Accounting will order your Monthly Transaction report on Report Manager (TREEV).
     b. Financial Accounting will also give you a RUN DATE to use for your report ordering.
     c. Be sure to use END DATE of 06/30/CY and Fiscal Year C/Y for your reports.




                                                           3.14                                               April 2010

				
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