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Policy 102

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Vanderbilt University - Office of Financial Affairs Policy 102: Year End Closing


Purpose

To provide an overview of the University’s year-end closing process including departmental reviews to correct any errors or omissions.


Introduction

The following information provides an overview of the fiscal year-end closing process for Vanderbilt University. While there may be some minor changes, these procedures generally are consistent from year to year.


Policy

Proper classification and cut-off for transactions are required in order to prepare external financial statements in accordance with generally accepted accounting principles (GAAP) on a timely basis. Financial statements prepared in accordance with GAAP are important within the context of demonstrating that the University has been a responsible trustee for funds obtained from a multitude of stakeholders.

Goods and services received in June should be recorded as current year fiscal expenditures; goods and services received after June 30 should be recorded in the ensuing fiscal year. In addition to ongoing review of transactions and balances in applicable cost centers at year-end, departments should pay particular attention to appropriate cut-off for transactions during June and July.


Procedures

Each year the Office of Financial Affairs (OFA) distributes flyers with May financial reports providing (1) a summarized closing schedule and (2) year-end closing pointers. Additionally, for those involved with corporate finance responsibilities, a technical closing calendar also is prepared. Information for specific years is available on the OFA Website.

Departmental staff should note the key deadline dates for submitting various documents, e.g., travel claims and invoices, to ensure expenses are recorded in the appropriate fiscal year. For areas such as petty cash reimbursements, receipts for July purchases should not be mixed with those of June or earlier.

Payments for items such as subscriptions, dues, maintenance agreements and other services covering a period of time generally should be made in the fiscal year in which service begins. If the period of service begins in July, however, maybe may be made in the prior fiscal year.


Cross References

None.


Related Forms

None.


Effective Date

Effective: June 2001