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Year End Closing and Accounting

The University of Texas at San Antonio operates on a 12-month fiscal year that begins September 1 through August 31. Operating budgets, employee appointments, and external reporting are all based on this 12-month period. There is a large volume of accounting activity at the end and beginning of each fiscal year.

The Controller’s Office is responsible for advising the Deans, Directors, Department Heads, and other administrative personnel of the various processing deadlines to assure both timely starts and close-outs of the fiscal year.  This is critical to provide staff sufficient time to prepare the Annual Financial Report in accordance with due dates set by the UT System Controller’s Office.


13th & 14th Months
The thirteenth month is used to record adjustments and closing entries that are processed by central offices within Financial Affairs.   Closing entries consist of accruals, prepaid and deferred revenue.
The fourteen month is related to the new fiscal year (Sept. 1-Aug. 31) and reflects beginning balances (balance forward entries.) The 14th month provides a picture of what the account looked like at the beginning of the fiscal year.

Service Dates
The service date of a document determines to which fiscal year the expenditure or revenue should be recorded.  Accounting Services will move expenditures and revenues to the appropriate fiscal year based on the service dates if the total item is greater than $1,000.

Documents entered in August with current fiscal year service dates will be recorded in August. Documents entered in the first week of September with the prior fiscal year service dates will be recorded in the 13th month of that year.

Documents entered in August with service dates for the next fiscal year will be reversed in the 13th month so the expense may be recorded in September.

Last Business Day of the Fiscal Year  
The final check run of the year will be on the last business day in August. This check run will be processed before the business day begins. There should be no new documents created on this day and any document created on that day will be returned for re-entry during the new fiscal year.

 Balance Forward

Balances are forwarded from the prior fiscal year to the current fiscal year based on lapse rules established by each Vice President.  Refer to the Budget Office website for more information.  


 

Definitions

Accrual  The financial reporting of the university is on an accrual accounting basis.  Therefore, an accrual is required whenever payment has not yet been made due to timing for any goods or services that have been received but have not been paid by yearend.  UTSA does not book accruals for amounts under $1,000 per item.
Prepaid Expenditure Any expenditure that has been paid in the current fiscal year, in which, the goods or services will be received in the following fiscal year (paid in advance). Materiality threshold of $1,000 per item.
Deferred Revenue  Cash payments received in the current fiscal year, but for services to be rendered in the following fiscal year.  The best examples of this are tuition and fees paid by students in August for the following Fall Semester; season ticket purchases for athletic events that have not yet occurred is another example.   

 


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