Financial Management Year-End Financial Review - General Guidance
Organizations should be reviewing their financial reports on a regular basis, but it’s especially important as we approach fiscal year-end. Running the Spendable Balance Report is a good first step to reviewing your financial activity. Any chartstrings with a negative available balance (deficit) should be further investigated. Organizations should review the detail posted to these chartstrings (using Ledger Detail Report) to ensure that no transactions were posted in error. Corrections must be made through Labor Accounting if the transaction is labor based. Funds Management will be communicating more specific ChartField guidelines in the near future. Any questions can be directed to Finance & Treasury Funds Management.
The Year-End Close process provides an opportunity for departments to review departmental labor charges to ensure that labor costs are being appropriately and accurately associated with their relevant source of funds in the General Ledger. It is also an opportunity to ensure the accuracy of any remaining encumbrances at year-end.
What You Should Do
Review labor charges in LA:
- For individuals, confirm Labor Accounting expense charges, including graduate student support, are reflected against earnings codes and against correct chartstrings.
- Confirm FY19 and FY20 distributions are correct.
- Move any staff who may have defaulted to A0000 or A0001 to other funds, if part or all of their compensation is to be covered by other fund sources.
- Confirm open encumbrances reflect outstanding unpaid payroll commitments.
- Review any remaining FY19 and FY20 encumbrances for clean-up and resolution:
- FY19 remaining labor encumbrances will be automatically removed as part of the Final Close-out process, during the FY20 year-end process.
- FY20 remaining labor encumbrances will be restated in FY21 on the General Ledger as part of the FY20 year-end process.
Labor Accounting Year End Close Reference Guide
This Labor Accounting (LA) job aid includes 4 sections:
- Invalid Distribution Chartstrings for Labor Charges
- Labor Accounting Warehouse Reports for Evaluating Departmental Labor Costs
- Finding help in LA for Making Changes to Commitments and Distributions
- Helpful links for further information about LA.