Sent to the AFS-Update mailing list on July 16, 2020
Period 12 of the 2019-20 fiscal year will close on Friday, July 17. This is the last period in which most campus departments 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 17. 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 July 17.
- 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 2019-20 fiscal year. Individual transactions should be evaluated for accrual/deferral. If they meet or exceed the above threshold, they must be recorded to the appropriate fiscal year using the YEDA e-document. Some limited exceptions to the threshold can be found in the closing instructions. YEDA documents must have all department approvals by 4 p.m. on July 17. All YEDA documents route to central office approvers for further review. Please remember to include the following:
- A brief explanation for why you are submitting your accrual or deferral. The explanation must be very clear (i.e. to an outside auditor) as to why the accrual or deferral is needed.
- For accruals – An invoice and other supporting documents must be provided that verifies that the goods/services were received or provided during fiscal year 2020 but booked in fiscal year 2021.
- For deferrals – An invoice and other supporting documents must be provided that verifies the goods/services were received or provided in fiscal year 2021 but booked in fiscal year 2020.
- 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 July 17. 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 2020-21, object code 0008.
At the end of the day on July 17, any GEC, BA, BAT, YEDA, or AV documents for period 12 of 2019-20 and period 1 of 2020-21 that are not in final status will be canceled by the system. Please wait until after July 17 to initiate fiscal year 2020-21 documents to avoid unintended system cancelation.
For more information about all of these topics, see the Fiscal Closing website.