107.2 - Statewide Accounting Policy - General Ledger Standards

Policy Area: Accounting and Financial Reporting
Policy Sub Area: Uniform North Carolina Accounting System
Authority:  GS 143B-426.39
Effective Date: 7/1/2005
Last Revision Date: 4/30/2017
Policy Owner/Division: Statewide Accounting

Policy

Each state agency is responsible for maintaining a complete general ledger and supporting subsystems for all funds and accounts for which it has responsibility. All financial transactions should be posted in detail in accordance with the prescribed statewide uniform chart of accounts and approved NCAS accounting policies and procedures. The ledgers should be posted, balanced, and reconciled at least monthly; however, it is strongly recommended that all agencies move toward more frequent updates with the ultimate goal of daily update cycles. On-line NCAS agencies will follow the prescribed procedures for the NCAS on-line general ledger. 

Each agency must provide an adequate audit trail between the NCAS ledgers and agency-maintained ledgers or subsystems in such a manner that the composition of the NCAS ledger can be easily traced to the agency-maintained ledger if it is different from NCAS. This means that detail transactions can be analyzed. Agencies must reconcile NCAS summary ledgers to agency-maintained ledgers at least monthly to ensure that proper balances are reflected in the State's financial records. (On-line NCAS agencies would follow the recommended month-end reconciling procedures). 

General ledger transactions of on-line NCAS agencies are automatically included in NCAS with no additional interface requirements. NCAS timing requirements are fulfilled by complying with the Office of State Budget and Management's (OSBM) month-end closing schedule.

 
The agency-level systems that support the State's accounting and financial management functions must provide financial transactions to NCAS. Transactions in acceptable electronic form reflecting total agency financial activity (including accruals when appropriate) must be submitted at least monthly. For interface agencies, the transactions must be provided in time to meet the OSBM month-end closing schedule. Transactions for interface agencies operating on OSC-supported financial system software are automatically included in the NCAS general ledger upon monthly closing. NCAS transactions will be created from the off-line NCAS agency's general ledger file and formatted into an NCAS record containing the needed data elements to allow conversion of the agency's accounts to the on-line NCAS chart of accounts format that is identified by the company, account and center.

Procedures

Month-end reconciling procedures are located here.  Select procedure type/month-end and click apply.

Accounting Guidance

N/A

Related Documents (Memos/Forms)

N/A

Revision History

  • 7/1/2013 - Changed the name of the procedures from “balancing procedures” to “month-end reconciling procedures” to agree with the name of the procedures on the SIG.  Changed the following sentence, “For interface agencies, the transactions must be provided no later than 10 working days after the close of the month” to “For interface agencies, the transactions must be provided in time to meet the OSBM month-end closing schedule.”  OSBM establishes the time frame for month-end procedures; OSC enforces it.  OSC revised this sentence to be consistent with the preceding paragraph.  
  • 1/26/2017 - Updated information under Procedures.

  • 4/30/2017 - Updated the link in the procedures section to the correct location on the OSC website.