Flexgen Fiscal Year-End Closing 2016 Resource - FG Fiscal Year End Flexgen Fiscal Year-End Closing Local Government Corporation Resource 2018

Fiscal Year-End Closing 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 Fiscal Year-End Closing 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)

A Problem Balance Sheet Fiscal Year-End Closing Miscellaneous posting errors (Cost center?) Odd debit balances Leftover pennies Major Problem

Fiscal Year-End Closing Trial Balance Problem The ending balance grand total at the bottom right should always be 0.00 P

Fiscal Year-End Closing Over Expenditures?

Posting Errors? Should there be YTD activity if nothing is budgeted? Fiscal Year-End Closing Posting Errors? Should there be YTD activity if nothing is budgeted?

A favorite report displaying potential budget problems Fiscal Year-End Closing A favorite report displaying potential budget problems The following screen shows you where to get the above report

Fiscal Year-End Closing Where to get GL detail Fiscal Year-End Closing This is how to access the GL Detail Listing report from the Reports menu

Ensure all current year accounting activity has been processed Fiscal Year-End Closing 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 liquidated?

Purchasing - Fiscal Year End 2016 Resource - FG Fiscal Year End Fiscal Year-End Closing 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 07/01/2017 Before running Year End PO Closing you might want to run the PO Balancing Report (if applicable) 06/30/2018

Purchasing - Fiscal Year End Fiscal Year-End Closing 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.

The PO Balancing Report 2016 Resource - FG Fiscal Year End Fiscal Year-End Closing The PO Balancing Report This is an example of a PO Balancing Report that is in balance Outstanding PO’s & YTD Enc amounts equal There are no conflicts between the PO totals & amounts posted to the GL Outstanding PO Amount is what shows on the Purchasing side. The Year To Date Encumbrances is what shows on the GL side. =

The PO Balancing Report 2016 Resource - FG Fiscal Year End The PO Balancing Report This is an example of the PO Balancing report showing out of balance by $200.00 on the GL account 110-71100-001 The po was added (EC entry) in June (Current FY) and partially liquidated (PO entry) in July (New FY) The po should have been liquidated in June since the PO file has not been closed. Calculated differences should be corrected before closing the PO file The EC entry for the PO was in the current fiscal year. But the PO entry (liquidation) for $200.00 was dated July for the new fiscal year. This makes both fiscal years out of balance for this account by $200.00. Because the current fiscal year is missing the PO entry and the new fiscal year is missing the EC entry. You should not change or liquidate any po in the new fiscal year (July) that was added in the current year (June or before)until you close the PO file. The top PO Balancing report will be for current year for all outstanding accounts and the bottom PO balancing report will be for new year. Future Posted Encumbrances will show entries that have hit the GL for the New Fiscal year

The PO Balancing report 2016 Resource - FG Fiscal Year End The PO Balancing report This is an example of the PO balancing report after correcting the calculated difference for $200.00 before closing the PO file. After closing the PO file the outstanding po amt is blank. This is because the PO’s are no longer considered current year. They have become prior year po’s because the PO file was closed. Once you close the PO file the Outstanding PO amount will show blank for current year totals. Because the Po’s have been rolled to Prior Year. The Year to Date Encumbrances will show what the GL has. And Calculated Differences should be the same totals as Year To Date Encumbrances. Future posted encumbrances mean there has been a change, add or delete on a po in the new fiscal year. Once the po file is closed the po’s are rolled to 34120. The outstanding po detail by account report will reflect this.

Fiscal Year-End Closing 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 . . . Fiscal Year-End Closing 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 You must not print checks dated July on June PO’s Why ? Checks will post to New FY but PO’s are encumbered against Current FY

After PO file closed but before year end closing Fiscal Year-End Closing 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 for July PO’s Print checks dated June - as long as it’s not attached to ANY PO’s You must not print checks dated June 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 2016 Resource - FG Fiscal Year End Fiscal Year-End Closing 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 ran multiple times) It only updates the PO’s entered since running the original Year-End PO Closing option You will get a error message PS81-PSF200 Pos have already been closed for this fiscal year. After adding PO, run ‘Update Year end PO Closing’ OK.

Once the Year-End is Closed Fiscal Year-End Closing Once the Year-End is Closed Business as usual * all Checks & PO accounting entries will be posted to New FY

Before beginning the Year End Process A few Reminders Fiscal Year-End Closing Before beginning the Year End Process A few Reminders Be sure internet is working in case you need support No one should be processing ANY work while you are closing June or Year End Make sure you have needed supplies, toner, printer ribbons, 2-part paper, paper pre-punched holes, backup media, etc.

2016 Resource - FG Fiscal Year End Fiscal Year-End Closing Reminders . . . 1. Pre Year-End Backup (daily) 2. Mid Year-End Backup (daily) 3. Post Year-End Backup (Daily) Daily backup usually consists of FG4 and Files

Reminders... You may want to check your accounting date Fiscal Year-End Closing 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

Fiscal Year-End Closing Reminders. . Check the Update Budget File at Year-End on the Accounting parameter. More customers prefer this 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 Fiscal Year-End Closing Beginning the Year End closing process Before beginning the Year End Closing Process be sure to load the Year-End update from LGC Make “Pre Year-End Closing Backup” (daily) Close month of June – This is the same Process for closing any other month

Month End Closing - June Fiscal Year-End Closing Month End Closing - June Selecting the option to close June prompts a reminder to run the depreciation process

Month End Closing - June Fiscal Year-End Closing Month End Closing - June The month end closing for June is the same process as closing any other month Process the 4 steps in sequence

Year-End Closing Process Fiscal Year-End Closing Year-End Closing Process After closing June Make “Mid Year-End Closing Backup” (Daily) Copy Files to Work Directory

Year-End Closing Process Fiscal Year-End Closing 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 select the option to Copy Files to Work Directory

Year-End Closing Process Fiscal Year-End Closing Year-End Closing Process After running the Copy files to work directory for each file set you have. You will receive the message below. If you receive any error messages in this process – STOP – call LGC support ! This option needs to be ran for each set of files you have.

Year-End Closing Process Fiscal Year-End Closing 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 2016 Resource - FG Fiscal Year End Fiscal Year-End Closing 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 It is step 5 for Cities.

Post Year-End Closing Process Fiscal Year-End Closing Post Year-End Closing Process After running all steps of End of Year Process make “Post Year-End Closing Backup” (Daily) Compare June 30 Trial Balance that printed during Month End to the Trial Balance that printed during Year End. Make sure balances rolled correctly

2016 Resource - FG Fiscal Year End Fiscal Year-End Closing 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

2016 Resource - FG Fiscal Year End Fiscal Year-End Closing 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

2016 Resource - FG Fiscal Year End Fiscal Year-End Closing 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

2016 Resource - FG Fiscal Year End Fiscal Year-End Closing 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 2016 Resource - FG Fiscal Year End Fiscal Year-End Closing 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 GASB 54 34200-Nonexpendable 34500-Restricted 34600-Committed 34700-Assigned 34900-Unassigned The redistribution will be through the posting of a journal entry. As you can probably gather, the key step is the preparation of the entry. Journal Entries to Restate Equity Balances

2016 Resource - FG Fiscal Year End Fiscal Year-End Closing GASB 54 Accounting The Copy Files to Work Directory prepared your system to continue with the GASB54 reporting process This step was selected before you started the fiscal year end process. You will not need to select it again.

2016 Resource - FG Fiscal Year End Fiscal Year-End Closing GASB 54 Accounting A previous release created: Login - GASB54 password - REPORTS Close GASB54 GL Accounts can only be run once Optional - Purchasing Closing Entries Report shows amounts rolled to Prior Year Encumbrance GASB54 Closing Balance Sheet shows balances as of June 30 closing

2016 Resource - FG Fiscal Year End Fiscal Year-End 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

2016 Resource - FG Fiscal Year End Fiscal Year-End Closing 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

Post Year-End Closing Process Fiscal Year-End Closing 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

Post Year-End Closing Process Fiscal Year-End Closing 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 Fiscal Year-End Closing 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 2016 Resource - FG Fiscal Year End Fiscal Year-End Closing Post Year-End Closing Process 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) City Trial Balance Only Beginning Balances will show on this report (no July entries)

Year-End Closing Process Fiscal Year-End Closing Year-End Closing Process Congratulations! You have successfully completed the Year End Closing Process If you have any questions, call LGC support