105.1 - Statewide Accounting Policy - Accounting Cycle

Policy Area: Accounting and Financial Reporting
Policy Sub Area: State Financial Reporting
Authority:  General Statute 143B-426.39 and 143B-426.40H
Effective Date: 7/1/2006
Last Revision Date: 4/30/2017
Policy Owner/Division: Statewide Accounting


The State of North Carolina recognizes a fiscal year beginning July 1 and ending June 30. Budgetary reporting, budgetary control, and financial reporting in accordance with GAAP are based on this accounting cycle. 
Unless exempted by the State Controller, newly created or acquired component units of the State are required to have the same fiscal year as the State of North Carolina.

The accounting cycle begins, and is built on, daily updating and monthly reporting of the statewide general ledger. This monthly reporting is used by the Statewide Accounting Division of the Office of State Controller, the Office of State Budget and Management, and the General Assembly's Fiscal Research for statewide management purposes. 

NCAS agencies and component units that interface to NCAS will report for 12 accounting periods on the budgetary (i.e., cash) basis. These 12 periods are system defined to generally reflect, on the NCAS general ledger, the 12 months of the fiscal year. The NCAS general ledger also has 13th and 14th accounting periods available for posting. During the accrual process, accrual transactions and adjustments are made to the 13th period. These entries are needed to adjust year-end budgetary balances to reflect their reporting in accordance with GAAP. Agencies and Interface component units must develop adequate documentation to support their 13th period entries in order to provide a clear audit trail back to the agency files. The 14th period is for specialized life-to-date reporting situations used primarily in grant accounting. 

All state agencies and component units are required to submit their year-end package to OSC within 60 days after the fiscal year end. 

OSC prepares the Comprehensive Annual Financial Report on or before October 31 and publishes it on or before December 31.


Refer to the NCAS training manual for accounting procedures.

Accounting Guidance


Related Documents (Memos/Forms)


Revision History

4/30/2017 - Updated wording of third paragraph from “the OSC’s Cash Management Division” to “the Statewide Accounting Division….”  Updated the “Procedures” section to state, “Refer to the NCAS training manual for accounting procedures.”