1. FLEXGEN FISCAL YEAR-END CLOSING Local Government Corporation Resource 2016

2. GENERAL OVERVIEW  Ensure all current year accounting activity has been processed Fiscal Year-End Closing  Clean up and correct current fiscal year data  Close the month of June- Make Mid-Closing Backup (recommended)  Close the PO File (if applicable) - Make Pre-Closing Backup  Make entries in preparation for next fiscal year  Close the fiscal year- Make Post-Closing Backup

3. 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)

4. Miscellaneous posting errors (Cost center?) Fiscal Year-End Closing A PROBLEM BALANCE SHEET Odd debit balances Leftover pennies Major Problem

5. Fiscal Year-End Closing TRIAL BALANCE PROBLEM

6. Fiscal Year-End Closing OVER EXPENDITURES?

7. POSTING ERRORS? Fiscal Year-End Closing Should there be YTD activity if nothing is budgeted?

8. Fiscal Year-End Closing The following screen shows you where to get the above report A FAVORITE REPORT DISPLAYING POTENTIAL BUDGET PROBLEMS

9. Fiscal Year-End Closing This is where to get the GL Detail Listing report from previous screen WHERE TO GET GL DETAIL

10. Fiscal Year-End Closing ENSURE ALL CURRENT YEAR ACCOUNTING ACTIVITY HAS BEEN PROCESSED  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?  Are there any entries needed to Reserve Accounts?  NOTE: The GASB54 Balance Sheet will not print during the year end closing

11. Fiscal Year-End Closing 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 07/01/2016 06/30/2017

12. Fiscal Year-End Closing 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. PURCHASING - FISCAL YEAR END

13. Fiscal Year-End Closing A Good Clean PO Balancing Report THE PO BALANCING REPORT Outstanding PO’s & YTD Enc amounts equal = There are no conflicts between PO totals & amounts posted to the GL

14. Fiscal Year-End Closing This report has issues Calculated Differences column in a perfect world would typically be blank THE PO BALANCING REPORT Why would there be no PO totals yet encumbrance amounts posted to GL

15. Fiscal Year-End Closing Plus any Future Posted Enc (PO’s processed in Feb but given a July date) THE PO BALANCING REPORT Equal Calculated Difference Outstanding PO Amount minus YTD Encumbrances =+ -

16. Fiscal Year-End Closing Future Posted Enc are PO’s processed in Feb but given a July date THE PO BALANCING REPORT The PO’s were voided with a Feb. effective date Problem Remains EC entry in July PO entry in Feb There are no PO Totals yet there are PO amounts posted to the GL as Encumbrances

17. Fiscal Year-End Closing  Cleaning up the PO file only needs to be done if your PO’s are making entries to the ledger CLEANING UP THE PO FILE  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

18. BEFORE CLOSING PO FILE  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 You May... Fiscal Year-End Closing All entries will post to Current FY All entries will post to New FY Checks will post to New FY but PO’s are encumbered against Current FY Why ?

19. 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 Fiscal Year-End Closing Why ? All PO’s are now “Prior Year” PO’s but June checks are Current FY

20. 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 Fiscal Year-End Closing

21. ONCE THE YEAR-END IS CLOSED BUSINESS AS USUAL * ALL CHECKS & PO ACCOUNTING ENTRIES WILL BE POSTED TO NEW FY Fiscal Year-End Closing

22. BEFORE BEGINNING THE YEAR END PROCESS A FEW REMINDERS  BE SURE INTERNET IS WORKING INCASE YOU 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. Fiscal Year-End Closing

23. REMINDERS... 1. PRE YEAR-END BACKUP (DAILY) 2. MID YEAR-END BACKUP (DAILY) 3. POST YEAR-END BACKUP (SYSTEM) Fiscal Year-End Closing

24. 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

25. REMINDERS... 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 Check the Update Budget File at Year-End parameter Fiscal Year-End Closing

26. BEGINNING THE YEAR END CLOSING PROCESS MAKE “PRE YEAR-END CLOSING BACKUP” (DAILY) CLOSE MONTH OF JUNE – SAME AS YOU WOULD ANY OTHER MONTH Before beginning the Year End Closing Process be sure to load the Year-End update from LGC Fiscal Year-End Closing

27. MONTH END CLOSING - JUNE Fiscal Year-End Closing Entering the option to close June prompts a reminder to run the depreciation process

28. MONTH END CLOSING - JUNE Fiscal Year-End Closing 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

29. YEAR-END CLOSING PROCESS  AFTER CLOSING JUNE  MAKE “MID YEAR-END CLOSING BACKUP” (DAILY)  COPY FILES TO WORK DIRECTORY Fiscal Year-End Closing

30. 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 Fiscal Year-End Closing

31. 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 Fiscal Year-End Closing

32. YEAR-END CLOSING PROCESS Fiscal Year-End Closing 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

33. Step 6. Point of No Return! Once this step is started you cannot restart the closing process without reloading a backup YEAR-END CLOSING PROCESS Fiscal Year-End Closing

34. 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 Fiscal Year-End Closing

35. 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 Fiscal Year-End Closing

36. 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 Fiscal Year-End Closing Assets + Deferred outflows of resources - Liabilities - Deferred inflows of resources = Net position

37. 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 Fiscal Year-End Closing

38. 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 Fiscal Year-End Closing

39. CHANGES TO FUND BALANCE GASB 54 34200-Nonexpendable 34500-Restricted 34600-Committed 34700-Assigned 34900-Unassigned 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 Fiscal Year-End Closing

40. GASB 54 ACCOUNTING Fiscal Year-End Closing The Copy Files to Work Directory also prepared your system to continue with the GASB54 reporting process 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 If you have multiple data sets you are likely to get an error if not corrected last year

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

42. GASB 54 ACCOUNTING Fiscal Year-End Closing Manual Transaction allows you to enter transactions to move amounts from Undesignated Fund Balance to the various Restricted categories prescribed by GASB54 rules

43. GASB 54 ACCOUNTING Fiscal Year-End Closing 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

44. POST YEAR-END CLOSING PROCESS 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 County Trial Balance Fiscal Year-End Closing

45. POST YEAR-END CLOSING PROCESS 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 ) County Trial Balance Fiscal Year-End Closing

46. POST YEAR-END CLOSING PROCESS 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 City Trial Balance Fiscal Year-End Closing

47. POST YEAR-END CLOSING PROCESS Only Beginning Balances will show on this report (no July entries ) City Trial Balance Fiscal Year-End Closing 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)

48. YEAR-END CLOSING PROCESS You have successfully completed the Year End Closing Process If you have any questions, call LGC support Fiscal Year-End Closing