Year-End Closing Workpaper Instructions
Please read the ENTIRE document
The Audited Annual Financial Report of the University of Utah reports on all general ledger balances at the end of Thermidor. The year-end closing process requires a review of all general ledger balances to ensure accurate financial reporting.
The following nine steps are required to complete the year-end closing process:
- Make a copy of last year’s Working Trial Balance workbook and rename the file referencing FY2016.
- READ ALL INSTRUCTIONS ON THE “INSTRUCTIONS” SHEET IN THE WORKBOOK..
- Update your workbook with this year’s data.
- Review your Account balances in each Activity.
- If necessary, Process Thermidor Journal Entries to adjust balances for material changes. Make sure the journal entries are coded with all the proper chartfield values.
- Post all Thermidor Journals to the Working Trial Balance.
- Make sure the formula for the Adjusted Balance column is accurate.
- Document all balance sheet items.
- Return the package to General Accounting no later than Monday August 1, by 5:00 p.m.
WORKING TRIAL BALANCE WORKBOOK
- Working Trial Balance Workbook–This is an Excelworkbook with instructions and spreadsheetsfor the purpose of reporting and documenting fiscal year-end balances for a specific Fund. The sheets included in theworkbook are:
- Balance Sheet
- Revenues & Expenses
- Documentation Indexing
- Fund Information
- Fund Transfer Summary
- Reports you create and add to your workbook:
- FYE Balance Sheet Activity – This report is created by executing a query found in the Financial Information Library (FIL) in the “Fiscal Year End” folder. This report lists amounts by Account for each Fund. For each Account, the Activities with balances in that Account are listed. Add the Excel formatted results of this query to the Working Trial workbook.
- FYE Rev and Exp Activity – This report is created by executing a query found in the Financial Information Library (FIL) in the “Fiscal Year End” folder. This report lists amounts by Account for each Fund. For each Account, the Activities with balances in that Account are listed. Add the Excel formatted results of this query to the Working Trial workbook.
- FYE Rev and Exp Summary – This report is created by executing a query found in the Financial Information Library (FIL) in the “Fiscal Year End” folder. This report lists amounts by reporting category for various ranges of Accounts in a Fund. Add the Excel formatted results of this query to the Working Trial workbook.
To enable you to perform Step #5, a pdf of Thermidor JE forms can be accessed from the following links:
- Thermidor Accrual Journal Entry (TAC)
- Thermidor Adjusting Journal Entry (TAD)
- For journal continuation form use the regular General Journal Entry – Continuation form
- The Thermidor Accrual Journal Entry is to be used for processing adjustments, which will automatically be reversed in the New Year. Regular General Journal Entry Continuation forms may be used for accrual entries that require more than one page.
- The Thermidor Adjusting Journal Entry is to be used for processing adjustments, which will not be reversed in the New Year. If another Responsible Person’s Activity or Project is being affected, you must obtain her/his signature on the entry. Regular General Journal Entry Continuation forms may be used for adjusting journal entries that require more than one page.
All changes to June 30 balances must be done by means of these Thermidor Journal Entry forms and posted to the Working Trial Balance sheets in the workbook. All Thermidor adjustments must be shown on the Balance Sheet and/or Revenue & Expenses sheet(s).
JOURNAL ENTRY AFFECT to CLAIM on CASH (ACCOUNT 10500)
All journal entries affect Claim on Cash. Journal lines adjusting Claim on Cash are required on all Thermidor Journal Entries that have any journal lines that are not Business Unit 01. However, if a journal entry has only Business Unit 01 lines, a process has been developed to post the adjustment to Claim on Cash for that journal entry. Therefore, no Claim on Cash (10500) lines are required for any journal entry that has lines only affecting Business Unit 01. If there are any questions as to whether a Claim on Cash (10500) line is required for any journal entry, please contact General Accounting.
The University must be able to prove that it actually has all the assets and liabilities on which it reports. Consequently, all balance sheet amounts must be supported by adequate documentation. Accounts receivable, for example, must be supported by an aging schedule, and inventories by copies of the count sheets or summaries. Complete schedules for some balance sheet amounts may be too voluminous to include in these workpapers. At the very least, the total page(s) which show the amount being documented should be included. The complete schedules should remain in your office for at least 3 years.
A consequence for failing to provide documentation for any given balance is that General Accounting must write the Account balance down to zero by charging your current year operations. If the total in the Account is different from the total documented, the Account total will be adjusted in a similar fashion.
PDF forms to document the balances of Petty Cash or Due To/From Other Funds are available by clicking on the following links in the Indexing Convention Guide below.
In order to facilitate auditing, it is helpful to have documentation indexed in some way so that it is possible to determine which documentation belongs to which balance without having to read more than the index number. Below is a guide to indexing workpaper documentation.
Indexing Convention Guide:
|A-1||10100-10109||Petty Cash||Cash Count Form*|
|A-2||10200-10212||Other Cash||Copy of Bank Statement & Reconciliation|
|N||11000-11092||Investments||Provided by Investment Manager’s Office|
|C||16600-16629||Inventories||Physical Inventory Summary|
|W||16700-16819||Other Assets||Lists, Correspondence, etc.|
|E||16850-16999||Due From Other Funds||Schedule E*|
|BB||20000-20509||Payables||Copies of Vouchers, Receiving, Reports, Invoices, etc.|
|DD||20600-20819||Other Liabilities||Lists, Correspondence, etc.|
|E||20900-21009||Due to Other Funds||Schedule E*|
*Use this link to access a form to document reported balances.
Here is an example of its use:
- Activity #12345 has two receivables, one in Account 15300, and one in 15301.
- The indexes on the documentation pages should be written in the lower right hand corner of each page. The accounts receivable index reference is B. Since there are 2 A/R’s, the aging schedule for the first (15300) will be indexed B-1 and the second (15301), B-2. If the schedules run over one page, the pages will be indexed for page 1, for page 2, for page 3, and so on.
- The B-1 and B-2 references should also be written to the right of the “Adjusted Balance” amount on the Working Trial Balance to enable easy reference.
- If there is only one receivable Account and one page of documentation the index would simply be B. If there are multiple page the indexing would be for page 1, for page 2, for page 3, and so on.
WHAT TO DO WITH YOUR COMPLETED WORKBOOK & WORKPAPER FILE
Keep an electronic copy of your Working Trial Balance workbook for future reference and to use as the starting point for next year-end. Also, email a copy to .
The hardcopy work paper file should include the following documents:
- Printed copies of the Working Trial Balance “Balance Sheet”, “Revenue & Expense”
- “FIL” reports (formatted to aid in reading)
- Documentation for all balance sheet amounts (except for Accounts 10500 & 30000).
- Fund Transfer Summary Report.
- Two printed copies of all Thermidor journal entries – one to be retained in the file and one for data entry.
Summary of the dates and deadlines are listed below:
- Year-end begins – first day of Thermidor
- Deadline for all accruals and adjustments
- Workpaper files due in General Accounting
- General Accounting review period begins
- Run July Management Reports with correct beginning balances
Should you have any questions about these procedures or your part in them, please call your cognizant accountant in General Accounting, or call Todd Kapos, extension 1-8826. They will do whatever is needed to help you be successful with your part of the year-end financial reporting process.