Policy Steward: 
Director of FA&A
Format Updated: 
University Policy & Standards Converted: 
Revision Date: 
Monday, June 22, 2020

* 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.

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.