Number: 
03-150-201
Type: 
Rule
Policy Steward: 
Manager of Analytical Ops
Format Updated: 
University Policy & Standards Converted: 
Status: 
Current
Revision Date: 
Thursday, August 15, 2013

* This information replaces FIS 505 How to Determine Fund, Account, Budget Balances & FIS 801-10/11/12/13 Fiscal Year End Processing of Funds with Negative Cash Balances, Funds with Negative Fund Balances, Clearing Funds (095XXX) & Inactive Funds & FIS 801-14 Fiscal Year End Balance Sheet Analysis & FIS 801-15/16 Fiscal Year End Revenue & Expenditure Analysis

 

Cash and Fund Balance

Finding a cash balance or fund balance (sometimes referred to as an account balance) is appropriate for self-support funds. This would include 05xxxx (designated operations funds), 09xxxx (service center funds), 1xxxxx (auxiliary funds), 4xxxxx (endowments), Mxxxxx (gifts/scholarships), FSxxxx (gifts/scholarships-OSUF), and FAxxxx (gifts-ARF). For General Fund indexes or other budgeted funds and grants, the budget balance is most important.

To find your fund balance (cash plus receivables, etc.), go to FIS Banner form FGITBSR and query on your fund with the current fiscal year indicated. Your calculated fund balance is given in the Current Fund Balance field at the lower right-hand corner of the screen. To find your cash balance, go to FGITBSR and query on A0901 Cash on Hand.

Budget Balance

This is appropriate for General Fund indexes (fund = 001100) and other budgeted funds. Grants will have an expense budget which will also be discussed below.

To find your budget balance go to FIS form FGIBDST and query on your index for the current fiscal year (for grants see below). Usually, budgeted amounts will only be in certain general account codes, not distributed to all the account codes in which you have had transactions. FGIBSUM might also be helpful as it gives budget balances for the major budget categories and the net available balance.

For grants, go to FRIGITD and query on your grant. Refer to the Grants, Contracts and Gift Accounting Manual for further information.

Charges (or Credits) to Index

Go to FIS form FGITRND. Find the transaction and its document number and drill down to the document itself.

If the document is a journal voucher with the ordinary J prefix or an invoice with the usual I prefix, you can find the name of the person who input the transaction (the originating user) by going to FOIAPPH or FOIAPHT and running a query on the document number. This should allow you to identify the source of the transaction.

If the document begins with two letters, the transaction was sent electronically to FIS. The source of the transaction is identified by these letters, e.g. VP = Printing and Mailing. For a complete list of document types see FIS 1100 Banner Processes.

Each year, the Office of Business Affairs distributes Year End Closing instructions with specific dates and deadlines for that year.

Funds with Negative Cash Balances

Effective: 01/01/2003
Revised: 12/09/2010

Gift Funds (M’s and some FA).  Gift Funds require a positive cash balance.  Cash received and posted after noon on the last working day in June will be reported in the next fiscal year and will not show as cash (A0901) in the current fiscal year.  Therefore, it is important that gift fund balances are closely watched and that expenditures are not made against those funds unless cash is positive.  

All Mxxxxx funds must have a positive cash balance at the close of period 12.  If there is an overdraft at that time, the expenses will be moved to the unit general funds to clear the negative cash balance.  Reminder – direct payments such as Printing/Mailing, Motor Pool, Telecommunications, and OSU Bookstore process with June 30th or before dates, and because these are JV’s, they immediately affect cash even though the process may be run up to period 12 close (in July).

Funds with Negative Fund Balances

Effective: 01/01/2003
Revised: 06/22/2020

OSU Foundation Reimbursement Funds: FSxxxx, FExxxx, and 438xxx OSU Foundation reimbursement funds are also considered gifts to the University and must be at a positive fund balance. A receivable from OSUF for late June expenses is accrued with the concurrence of the Foundation that funds are available for payment in July. This accrual is completed by Business Affairs. Units must not do accruals for these funds.

Clearing Funds

Effective: 01/01/2003
Revised: 12/09/2010

At year-end, no balances can remain in any general ledger accounts (account codes = Axxxx, Bxxxx, or Cxxxx) of clearing funds.  Units with clearing funds have until the date specified in the current year’s schedule to complete journal vouchers using a June 30 transaction date to make the necessary adjustments.  Most clearing funds are the responsibility of Business Affairs.

Inactive Funds

Effective: 01/01/2003
Revised: 03/18/2016

  1. For inactive funds with a $0 dollar balance, submit all requests for termination of FOAPA chart of accounts elements and indexes to the Office of Budget and Fiscal Planning by the May date specified in the current year’s schedule for Year End Close.
  2. For inactive funds with a dollar balance, discuss appropriate action necessary to clean up funds with Business Affairs staff.

Fiscal Year End Balance Sheet Analysis

Each year, the Office of Business Affairs distributes Year End Closing instructions with specific dates and deadlines for that year.

Balance Sheet Reconciliation:  General Ledger

Purpose:  The purpose of Balance Sheet Account Code reconciliation is to ensure and demonstrate that:

  • The ending balance for a balance sheet account is equal to the total of all supporting detail.
  • All amounts in the ending balance are appropriate for that account (for example, an accounts payable item contained in the reconciliation detail list is owed to a vendor).
  • The items contained in the detailed list are current items.

All reconciliation detail schedules of Balance Sheet Accounts will be available to Busienss Affairs and the independent auditors of OSU’s Financial Statements to support the reported balances.  The auditors may use them to confirm balances with vendors or customers and subsequent tracing to disbursements or cash deposits in order to verify the reported balances.

Responsibility: See FIS Ex003-19: Fund Reconciliation Responsibility by Unit for individual unit responsibilities.

Requirement: The following requirements relate to all Balance Sheet Account Code reconciliation for all Fund Groups:

  • Prepare a detailed reconciliation for all Balance Sheet Account Codes A1xxx, A2xxx, A3xxx, A5xxx, B03xx, B4xxx, and B5xxx that appear on your specific Fund’s Balance Sheet (i.e. 05XXX, 09XXX, 1XXXX, 9XXXX).  Submit the completed listings to “Office of Business Affairs” by the date specified in the current year’s schedule for Year End Close.
  • When preparing this reconciliation only Fund numbers are used in conjunction with account codes beginning with “A” or “B”.  Indexes are not used.  List amounts owed by vendor or person and the date.
  • Note: Refundable cash deposits (Account Code B4XXX) for keys, uniforms, telephone, facility rental, plan & specs, etc. are recorded in Fund 001998.
  • Exclude:  Do not reconcile Account Codes posted by the SIS Accounts Receivable System.  This is done by the Office of Business Affairs.

BALANCE SHEETS and REPORTS ARE REQUIRED FOR ALL FUNDS AS OF JUNE 30 of the current fiscal year. Different fund groups have additional requirements specific to the type of fund involved. In addition to the requirements in this portion of these instructions, be sure to follow the specific instructions for the fund group or groups which apply to your area. 

See FIS Ex003-18: Fund Reconciliation Responsibility by Fund.

Fiscal Year End Revenue and Expenditure Analysis

Each year, the Office of Business Affairs distributes Year End Closing instructions with specific dates and deadlines for that year.

Expenditure Review

Throughout the fiscal year, but in particular by period 12, units must review expenses appropriate for funding type.

Note:  All of the revenue and expense accrual Journal Vouchers entered in the current fiscal year must be reversed during July of the new fiscal year by using a July transaction date. Use Rule Code 3JV1 for accrual entries during period 14 and a June 30 transaction date.  Use rule code 3JV1 to reverse accrual with July date.

Revenue Review

See FIS-Ex003-17: External Receipts Account Code Guidance. Note:  All of the revenue and expense accrual Journal Vouchers entered in the current fiscal year must be reversed during July of the new fiscal year by using a July transaction date. Use Rule Code 3JV1 for accrual entries during period 14 and a June 30 transaction date.  Use rule code 3JV1 to reverse accrual with July date.