Processing the Year-End Close

Once all accounting entries related to the prior fiscal year have been correctly posted to the NCAS system and the prior fiscal year end closing account/center combinations are verified, the end of year programs are run. There are two programs run to close the prior fiscal year. The first program is an IE program developed specifically for the NCAS system and is generally referred to as the custom year end close program. The second is programmatic. It closes the entire company and moves all prior year transactions to the Closed Years File.

Custom Year End Program

The custom year end close program is executed prior to running the programmatic year end close. It allows each company to close its financial and budgetary account balances by budget fund, creating Budgetary Control (BC) journal voucher transactions that are posted to the General ledger. The BC transactions are posted with an effective date of 07-01-2XXX. The document number for these transactions is generated as follows:

Position Description

1-2 Agency Number
3-6 Fiscal Year
7-10 Company Number

An example of a document id for the OSC's general fund would be 1420001401.

These transactions post the net of the prior year's financial and budgetary account balances as increases or decreases to fund balance or retained earnings, as appropriate, for each budget fund within a general ledger company with an off-setting entry to the company's year end closing account/center combination. For example, assuming a fund's revenue balances exceeded its expenditure balances, the entry to close an agency's general fund would be processed as follows:

Debit to 390000 - 9998
Credit to 32XXXX - 1000

The account balances used to generate the BC transactions include only the following account class types:

Class Description
4 Actual Revenues
5 Actual Expenditures
63 Authorized Revenues
68 Certified Revenues
73 Authorized Budget (Expenditures)
78 Certified Budget (Expenditures)

Class types associated with balance sheet accounts (assets, liabilities, encumbrances, and equity accounts) and life-to-date accounts (class 65 and 75 accounts) are not closed. Any balances in these accounts will carryforward to the next fiscal year.

Each company is closed by budget fund during a nightly production run when the actual custom year end program is executed. Once completed, a prior year close trial balance report is generated, the results of which are reviewed by the OSC and agency personnel. Financial and budgetary account balances should equal zero and the year end balance of each budget fund equity account should equal the sum of its beginning balance and the net of year-to-date financial and budgetary activity. The OSC is responsible for verifying the results of the year end close and evaluating any discrepancies. If no errors are reported, the programmatic year end program is executed.

Programmatic Year End Close

The programmatic year end close program is executed after the custom year end program is successfully run. The programmatic year end program actually closes the fiscal year for each company and also performs the delete function, which removes invalid accounts and accounting distributions from the chart of accounts.

Closing the Company

When the programmatic year end close program is run, the balances in all actual and budgetary financial accounts within a company are zeroed out and an off-setting entry to the company closing account/center (390000 - 9998) is generated. The year is closed and all fiscal transactions for that year are moved from the Open Years File to the Closed Years File. As a result of the programmatic close, only the current fiscal year remains open on the NCAS system and adjusting entries can no longer be processed against the prior fiscal year.

The Delete Function

The delete function performs general ledger chart of account maintenance as part of the prior fiscal year end close process. During the programmatic year end close, the delete function works as follows:

- It deletes any centers that are inactive and have no period ending balances associated with them in any fiscal year retained on the Open or Closed Year Files.

- It deletes accounts that have no centers.

It is the agency's responsibility to inactivate invalid accounting distributions. Accounting distributions can be inactivated on-line by changing the status code of a company/account/center from '0' to '1' on screen 287 of the General Ledger Module or by batch maintenance. (Contact the OSC for additional information concerning general ledger batch maintenance procedures.)

It is important to note that an account is deleted only after all the center records, including any summary centers, associated with that account are inactivated. Until all the accounting distributions residing on the chart of accounts for an account are inactivated, the account itself will not be deleted.

The IE report that confirms inactive accounting distributions is "C-U-GL-CNTR-STATUS" and is located in the GLPUBLIC library. This report should be generated before the end of year programs are run so it can be compared with the output from the programmatic year end close. The year end close program automatically produces a report that identifies the accounting distributions and/or accounts which have been deleted from the agency's chart of accounts. The report title is "Master Record Deletion List" and lists the deleted general ledger company accounts and centers with a message indicating their deletion status.

IE Report Parameter Changes

When the new fiscal year is opened, all custom IE reports which contain a prior year indicator as a report parameter must be changed by the agencies from 'Y' to 'N'. Changing this parameter prevents the duplication of life-to-date balances in the reports.

Details

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