Number: 
03-150-408
Type: 
Rule
Policy Steward: 
Director of FA&A
Format Updated: 
University Policy & Standards Converted: 
Status: 
Current
Revision Date: 
Thursday, December 9, 2010

* This information replaces FIS 801-10 & 801-11 & 801-12 & 801-13 for Fiscal Year End Processing of Funds with Negative Cash Balances & Funds with Negative Fund Balances & Clearing Funds (095XXX) & Inactive Funds

 

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

801-10 Funds with Negative Cash Balances

Fiscal Operations Manual
Section 800: Fiscal Year End Processing 
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).

801-11 Funds with Negative Fund Balances

Fiscal Operations Manual
Section 800: Fiscal Year End Processing
Effective: 01/01/2003
Revised: 7/1/2014

Specific funds may not have negative fund balances at June 30.  The necessary adjusting entries to resolve any negative fund balances must be recorded in the current fiscal year accounting records by the specified date on the current year’s schedule, using a June 30 transaction date. 

  • Negative Designated Operations (05XXXX) Fund Balances: Determine the Fund Balance as of June 30 by using Banner screen FGITBSR.  If the fund balance shows as negative (Debit Balance) and funding is necessary, process a journal voucher that debits the unit general fund index using account code 92255 and credits the designated operating index using account code 91255
  • Negative Service Center (090XXX) Fund Balances: Determine the Fund Balance as of June 30 by using Banner screen FGITBSR.  If the fund balance shows as negative (Debit Balance) and funding is necessary, process a journal voucher that debits the unit general fund index and account code 92255 and credits the service center index using account code 91255
  • Auxiliary Funds (1xxxxx) Fund Balances: Determine the Fund Balance as of June 30th by using Banner screen FGITBSR.  If the fund balance shows as negative (Debit Balance) funding is necessary.  Normally the only source of funding available to Auxiliary Funds is a loan from another Auxiliary Fund.

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.

801-12 Clearing Funds

Fiscal Operations Manual
Section 800: Fiscal Year End Processing 
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.

801-13 Inactive Funds

Fiscal Operations Manual
Section 800: Fiscal Year End Processing 
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.