Local Government Corporation General Overview Clean up and correct current fiscal year data Ensure all current year accounting activity has been processed Make entries in preparation for next fiscal year Close the PO File (if applicable) - Make Pre-Closing Backup Close the month of June - Make Mid-Closing Backup (recommended) Close the fiscal year - Make Post-Closing Backup Clean up Current Fiscal Year Data Things to look for - - Over expenditures that need budget amendments - Payables & receivables from prior fiscal year that need adjusting - Miscellaneous posting errors that need correcting - Due to and/or Due from accounts Some Red Flags are - - Liability accounts with debit balances (balance sheet report) - Asset accounts with credit balances (balance sheet report) - Expenditure accounts greater than 100% of budget (expenditure report) - Liability accounts with left over pennies (balance sheet report) 1
A Problem Balance Sheet Miscellaneous posting errors Odd debit balances Leftover pennies Major Problem Trial Balance Problem Over Expenditures? 2
Posting Errors? Should there be YTD activity if nothing is budgeted? A favorite report displaying potential budget problems The following screen shows you where to get the above report Where to get GL detail This is where to get the GL Detail Listing report from previous screen 3
Ensure all current year accounting activity has been processed Are there any entries needed to Reserve Accounts? NOTE: The GASB54 Balance Sheet will not print during the year end closing Reprint reports to verify corrective entries had the desired effect? Clean up PO file (if applicable) Have all current year PO s been entered? Are there partially liquidated PO s that need liquidating? Do current year PO totals match 34110-Current Year Encumbrance Control? Any prior year PO s that need canceling? Purchasing - Fiscal Year End Update Year To Date Totals Clears and updates the fiscal year to date totals on the vendor activity screen. It should be run by entering July 1 of the NEW fiscal year and June 30 of the NEW fiscal Year Before running Year End PO Closing you might want to run the PO Balancing Report (if applicable) Purchasing - Fiscal Year End If your PO s are making encumbrance entries to the ledger, the PO Balancing Report is a very useful tool to help troubleshoot PO problems. 4
The PO Balancing Report A Good Clean PO Balancing Report Outstanding PO s & YTD Enc amounts equal There are no conflicts between PO totals & amounts posted to the GL = The PO Balancing Report This report has issues Calculated Differences column in a perfect world would typically be blank Why would there be no PO totals yet encumbrance amounts posted to GL The PO Balancing Report Outstanding PO Amount minus YTD Encumbrances Plus any - + = Future Posted Enc (PO s processed in Feb but given a July date) Equal Calculated Difference 5
The PO Balancing Report There are no PO Totals yet there are PO amounts posted to the GL as Encumbrances Future Posted Enc are PO s processed in Feb but given a July date The PO s were voided with a Feb. effective date Problem Remains EC entry in July PO entry in Feb Cleaning up the PO File Cleaning up the PO file only needs to be done if your PO s are making entries to the ledger If you are satisfied that all outstanding PO s are valid And No additional PO s for the current fiscal year need to be entered Then you are ready to close the PO file Closing the PO file makes the necessary GL entries to roll current year encumbrances to Prior Year encumbrances Before Closing PO File You May... Enter PO s dated June Enter PO s dated July Print checks dated June on June PO s Print checks dated July on July PO s All entries will post to Current FY All entries will post to New FY Why? Checks will post to New FY but PO s are encumbered against Current FY 6
After PO file closed but before year end closing You may... Enter PO s dated June but you must run Update Year End PO Closing option Enter PO s dated July Print checks dated July on July PO s` Print checks dated June - as long as it s not attached to ANY PO s Why? All PO s are now Prior Year PO s but June checks are Current FY After PO file closed but before year end closing After Closing the PO File you may enter more June PO s but You must run the Update Year End PO Closing option (it may be run multiple times) It only updates the PO s entered since running the Year-End PO Closing option Once the Year-End is Closed Business as usual - all Checks & PO accounting entries will be posted to New FY 7
Before beginning the Year End Process A few Reminders Be sure your LGC remote support capability is working properly (Bomgar, Teamviewer) No one should be processing ANY work while you are closing June or Year End (no check printing, transaction posting, anything updating the GL) Make sure you have needed supplies, toner, printer ribbons, 2-part paper, paper pre-punched holes, backup media, etc. Reminders... 1. Pre Year-End Backup (daily) 2. Mid Year-End Backup (daily) 3. Post Year-End Backup (system) 4. Copy Files to Work Directory Reminders... You may want to check your accounting date To do this go to... Accounting, File Handler, File Maint. System Maint. Accounting Parameter Maint Be sure the Accounting Date is June 8
Reminders... Check the Update Budget File at Year-End parameter Most people prefer the Update Budget File at Year End parameter to be set to NO Setting to NO allows you to determine when prior year totals are updated to the Budget Handler Beginning the Year End closing process Make Pre Year-End Closing Backup (daily) Before beginning the Year End Closing Process be sure to load the Year-End update from LGC Close month of June same as you would any other month Month End Closing - June Entering the option to close June prompts a reminder to run the depreciation process 9
Month End Closing - June The month end closing for June looks and acts like any other month end closing Process the 4 steps in sequence as you normally would Year-End Closing Process After closing June Make Mid Year-End Closing Backup (Daily) Copy Files to Work Directory Year-End Closing Process If you attempt to enter the Year End Closing option without completing this process you will be presented with the following error message... Click OK then go back and run the option to copy files to work Directory 10
Year-End Closing Process After running the copy process you will receive the message below. If you receive any error messages in this process STOP call LGC support Year-End Closing Process Process the steps in order It is permissible to run June closing & Year End closing on consecutive days As long as No transactions are posted in the interim Year-End Closing Process Step 6. Point of No Return! Once this step is started you cannot restart the closing process without reloading a backup 11
Post Year-End Closing Process After running all steps of End of Year Process make Post Year-End Closing Backup (System) Compare June 30 Trial Balance that printed during Month End to the Trial Balance that printed during Year End. Make sure balances rolled correctly GASB54 Accounting The GASB54 Balance Sheet will not print during the year end closing. GASB54 Accounting will be maintained in a data directory, separate from your regular set of data files The GASB54 Accounting process can be ran anytime after the Fiscal Year End process has been completed Detailed instructions for GASB54 processing are posted on our web site GASB 63 New Account Types added to Balance Sheet New Asset Group - Deferred Outflows of Resources New Liability Group - Deferred Inflows of Resources To be expressed as Assets + Deferred Outflows = Liabilities + Deferred Inflows Or Assets + Deferred outflows of resources - Liabilities - Deferred inflows of resources = Net position 12
GASB 63 New Asset Group - Deferred Outflows of Resources 15100 ACCUM DEC IN FAIR VALUE OF HEDGING DERIVITIVES 15200 DEFERRED LOSS ON SALE-LEASEBACK 15300 DEFERRED CHARGE ON REFUNDING GASB 63 New Liability Group - Deferred Inflows of Resources 29925 ACCUM INC IN FAIR VALUE OF HEDGING DERIV 29930 DEFERRED GAIN ON SALE-LEASEBACK 29935 DEFERRED TAXES RECEIVED IN ADVANCE 29940 DEFERRED CURRENT PROPERTY TAXES 29945 DEFERRED DELINQUENT PROPERTY TAXES 29950 DEFERRED GRANTS RECEIVED IN ADVANCE 29955 DEFERRED SERVICE CONCESSION ARRANGE RECE 29960 DEFERRED CHARGE ON REFUNDING 29990 OTHER DEFERRED/UNAVAILABE REVENUE Changes to Fund Balance July to June: 34120-Reserved for encumbrances 34990-Reserved for other general purposes 39000-Undesignated Fund Balance` Copy Files for GASB reporting to a secondary data directory Journal Entries to Restate Equity Balances GASB 54 34200-Nonexpendable 34500-Restricted 34600-Committed 34700-Assigned 34900-Unassigned 13
GASB 54 Accounting The Copy Files to Work Directory also prepared your system to continue with the GASB54 reporting process If you have multiple data sets you are likely to get an error if not corrected last year If you get an error during this step you MUST call support for assistance or you will not be able to complete the GASB54 process GASB 54 Accounting A previous release created: Login - GASB54 password - REPORTS Optional - Purchasing Closing Entries Report shows amounts rolled to Prior Year Encumbrance Close GASB54 GL Accounts can only be run once GASB54 Closing Balance Sheet shows balances as of June 30 closing GASB 54 Accounting Manual Transaction allows you to enter transactions to move amounts from Undesignated Fund Balance to the various Restricted categories prescribed by GASB54 rules 14
GASB 54 Accounting Standard Reports are the same as before however it allows you to print modified reports for GASB54 reporting after manual transactions have been made to various reserve accounts Year-End Closing Process You have successfully completed the Year End Closing Process If you have any questions, call LGC support Post Year End Closing Process County Trial Balance Ending balances for Asset and Liability accounts should roll to the July 1 beginning balances The balance in the Fund Balance Account reflects the net difference between Revenues/ Expenditures, Prior Year Encumbrances, and Reserve Expenses For Prior Year 15
Post Year End Closing Process County Trial Balance Balances from Revenues and Expenditures close into the Fund Balance account. The Current Yr Expenditure and Revenue Control accounts always begin the fiscal year with a zero balance (they never roll to the next fiscal year) Only Beginning Balances will show on this report (no July entries) Post Year End Closing Process City Trial Balance Ending balances for Asset and Liability accounts should roll to the July 1 beginning balances The balance in the Fund Balance Account does not roll. It reflects the net difference between Revenues and Expenditures Post Year End Closing Process City Trial Balance Balances from Revenues and Expenditures close into the Fund Balance account. These accounts always begin the fiscal year with a zero balance (they never roll to the next fiscal year) Only Beginning Balances will show on this report (no July entries) 16