Preparing for Year-End Close

Before the prior fiscal year can be closed, four important tasks must be completed. All accounting entries related to the prior fiscal year must be posted to the General Ledger, the company closing account/center must be designated in the company policy record, and the accounting distribution to which a company and each budget fund within a company closes must be active in the company's chart of accounts.

Recording Prior Year Adjustments

The current and the prior fiscal years remain open on the NCAS system while the Comprehensive Financial Accounting Report (Annual Report) for the prior fiscal year is completed and audited. Between October and December of the current fiscal year, Annual Report level entries and audit adjustments are identified for various agencies. These entries must be posted to the prior fiscal year in the NCAS system by OSC system accountants before the prior fiscal year end close program is executed

Verification of Closing Accounting Distributions

During the prior fiscal year end close, the net of all balances in accounts having a class type other than 1, 2 or 3 are closed to the appropriate budget fund equity account/center combination and the company year end closing account/center. To process the year end close, an active closing account/center combination must exist in the chart of accounts for each budget fund within a company and for the year end closing account/center combinations defined by company policy.

Year End Close Accounting Distributions for Budget Funds

The equity closing account to which all financial transactions close is either fund balance (account 32XXXX) or retained earnings (account 330000), depending on the GASB number associated with the fund. The budget fund closing center will be the 'fund level' reported on the Center Trial Balance report (C-U-GL-CNTR-TRIAL-BALANCE) located in the GLPUBLIC library. The OSC will evaluate the propriety of the year end closing account/center combinations established for the budget funds in each company and ensure the accounting distributions are active on the chart of accounts.

Year End Close Accounting Distributions for General Ledger Companies

As each budget fund within a company is closed, an off-setting entry is generated to the company closing account/center. The prior fiscal year end closing account/center combination for each company is account 390000, Company Closing Account, and center 9998, Company Closing Center. This company closing account/center combination is defined on the company policy record and may be viewed by inquiring on screen 010 in the General Ledger. It is the OSC's responsibility to verify the company closing account/center is appropriate and active on the chart of accounts.

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