Sent to the KFS-Update mailing list on July 12, 2018
Period 12 of the 2017-18 fiscal year will close on Wednesday, July 18. This is the last period in which departments—other than central Accounting—can make adjustments. During these final days, department financial managers should be reviewing ledgers and approving fiscal year-end Action List items before the deadline on July 18. Departments must close the fiscal year in a solvent condition, and all KFS documents must be in Final status to be included in the period.
Financial managers should be giving special attention to the following:
Final General Error Corrections and Budget Alignments
This is your last opportunity to submit any final adjustments or corrections for your ledgers, including General Error Corrections (GEC) and Budget Adjustments and Appropriations (BA/BAT). These types of e-documents must be approved by 8 p.m. on Wednesday, July 18.
Accruals and Deferrals
Departments should be completing any necessary accruals and deferrals using the Year End Department Accrual/Deferral (YEDA) e-document during this time. Accrual and deferral entries are recorded based on a materiality threshold, which is $10,000 for the 2017-18 fiscal year. Some limited exceptions to the threshold can be found in the closing instructions. YEDA documents must be approved by the Fiscal Officer (or delegate) by 4 p.m. on Wednesday, July 18. All YEDA documents route to central office approvers for further review. Please include a detailed Explanation within the document, to clarify the reason for the accrual or deferral.
Control Account Income
UCI requires all Control Accounts (UCxxxxx) to end the fiscal year with an income variance of zero. Income must be aligned with budget to the extent of KFS Chart/Account/Object. This must be done by Wednesday, July 18. To accomplish this, you will need to use the Budget Appropriation Transaction (BAT) e-document to increase or decrease your Income Budget so that it matches your actuals. This help guide explains this process in detail.
Operating Accounts/Unrestricted Funds
- Operating Accounts on unrestricted funds can only carryforward account balances if they are in a positive status. The Summary/Total line of all operating accounts should be in a solvent condition, i.e. (Income YTD Actuals – YTD Budget) + (Expense YTD Budget – YTD Actuals) is positive.
- Encumbrances are not included when calculating solvency or the carryforward balance.
- Balances will be carried forward for each account in Period BB, Fiscal Year 2018-19, Object code 0008.
At the end of the day on July 18, any GEC, BA, BAT, YEDA, or AV documents for Period 12 of 2017-18 and Period 1 of 2018-19 that are not in Final status will be canceled by the system. Please wait until after July 18 to initiate fiscal year 2018-19 documents to avoid unintended system cancelation.
For more information about all of these topics, see the Fiscal Closing website.