INTRODUCTION TO YEAR-END FINANCIAL REPORTS - 7950

(Revised: 06/2021)

Agencies/departments must follow the instructions in the State Administrative Manual (SAM) to prepare and submit accurate year-end reports to the SCO. In addition, Finance provides annual year-end trainings, eLearning, and other useful resources on its website. Agencies/departments should refer to these training materials and resources to develop their year-end work plan and the skillsets required for year-end activities.  The SCO also issues instructions to agencies/departments for the preparation and submission of year-end financial reports annually. Agencies/departments should review these instructions and be familiar with changes.

 

Agencies/departments must prepare a separate set of year-end financial reports for each fund. Accounts of two or more funds will not be commingled in department statements, except in rare instances, and only upon written permission from the Department of Finance, Fiscal Systems and Consulting Unit (FSCU).

 

Agencies/departments will prepare year-end financial reports soon after June 30 to meet the required due dates and to estimate accruals with reasonable accuracy. See SAM section 7930 for Calendar of Reports and Actions for due dates and SAM 7951 Illustration for a list of the required year-end financial reports and their distribution. Agencies/departments should plan for the additional distribution of all standard reports to meet their internal management needs.

 

For agencies/departments to meet deadlines, the following is required:

 

1. Issue a work plan for year-end activities. List the specific year-end activities, due dates, responsibilities, and other important information for the timely completion of year-end financial reports.
2. Train accounting staff in the year-end financial report preparation procedures.
3. Keep all phases of transaction processing and month-end closing current during the fiscal year. Management must ensure all reconciliations are current, complete, and accurate. Reconciling items must be resolved timely. See SAM section 7901 – 7924 for additional information on reconciliations.
4. Start to perform preliminary year-end activities before June 30. Agencies/departments should anticipate problem areas, review and identify issues early to allow for sufficient time to resolve them in the current year. Agencies/departments experiencing or expecting serious difficulty in completing the required year-end financial reports on time should contact FSCU for assistance.
5. Review the condition of the agency/department’s cash, appropriation, and category balances throughout the fiscal year to determine if sufficient funds will be available to meet expenditures. If sufficient funds are not available, agencies/departments have the following options:

1. Begin negotiations with other agencies/departments for prompt payment of reimbursements, if applicable.
2. Begin negotiations with the Finance budget staff to obtain approval for additional funding.
3. Return a portion of an advance (e.g., DGS Service Revolving Fund, State Fund, or Office Revolving Fund) to the appropriation it was originally withdrawn from.

In addition to the above, the following is recommended:

1. Schedule vacations so they will not conflict with the preparation of the year-end financial reports.
2. Submit year-end financial reports to the SCO on a flow basis as each fund is completed.
3. Estimate receivable and payable accruals when it is not possible to obtain actual documentation. Retain lists of all accrual documents, estimated accruals, and amounts for audit purposes.
4. Provide deadlines and instructions to employees for submitting documents necessary to prepare the year-end financial reports (e.g., travel expense claims, purchase documents, and invoices)
5. Review and implement any policy guidance issued by Finance or contained in the SCO year-end guidelines timely, and communicate new requirements or changes to existing requirements to staff.

The SCO will provide the following documents for year-end closing:

• SCO Reconciliation Report
• Journal entries for June
• Prior Year Accrual Summary Report
• Report of Accruals to Controller’s Accounts
• Adjustments to Controller’s Accounts
• Final Reconciliation of Controller’s Accounts with Final Budget Report/Agency Records.

The SCO will notify agencies/departments in the Budgetary/Legal Basis Year-End Financial Reports Procedure Manual of the approximate dates they may expect to receive the Controller’s documents.