What You Should Know
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 by Department, Spendable Balance by Fund, and/or Spendable Balance by Program Reports 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 Transaction Detail by Chartstring Report) to ensure that no transactions were posted in error. Corrections can be through Labor Accounting if the transactions are labor related. 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’s 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 FY17 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 FY16 and FY17 encumbrances for clean-up and resolution. FY16 remaining labor encumbrances will be removed as part of the FY16 Close-out process, during the FY17 year-end process. FY17 remaining labor encumbrances will be restated in FY18 as part of the FY17 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.