____________________________________________________________________
FISCAL MANAGEMENT OPERATIONS GUIDE

Year End Closing

The University of Texas operates on a 12-month fiscal year which runs from September 1 to August 31. Budgets, appointments, and external reporting are all done for this 12-month period. A lot of accounting activity takes place as the old fiscal year ends and the new fiscal year begins. This outline explains what happens during this time.

Overview of what happens at year end

The accounting records for the old fiscal year are adjusted and closed and the accounting records for the new fiscal year are opened. The balances in certain fund groups at the end of the fiscal year are brought forward into the new fiscal year.

The Office of Accounting also prepares the Annual Financial Report (AFR) for UT San Antonio. These reports are combined with other UT components into the Consolidated Annual Financial Report for the University of Texas System. This consolidated report is then combined with other state agency reports into the Texas Annual Financial Report.

In order to make these reports meet Generally Accepted Accounting Principles (GAAP), and state requirements, various adjusting and closing entries are required. These entries include various accrual entries made to match income and related expenses for the same time period. These entries are referred to as roll forward (prepaid expenses) and roll back (accounts payable) entries.

This is also the time for departments to turn in to the Office of Accounting any final corrections that need to be made to their accounts. August ledgers are mailed out for a last review. The various accounting and disbursements deadlines for processing are given to the departments in August. It is extremely important for the departments to follow these deadlines.