Fund Accounting-Fiscal Year End Checklist

General Notes

This checklist was designed as a quick reference guide to assist you in transitioning from the current fiscal year to the new fiscal year. The steps are listed in processing order and may include options irrelevant to your site’s needs for fiscal year-end processing. If you have any questions regarding these procedures or the processes involved with Fiscal Year End, please direct them to Support.

PowerSchool recommends that backups be completed at specific steps during the Fiscal Year-End processing. For hosted customers, a nightly backup is completed and available if needed.

Task Coordination

Certain Fund Accounting Fiscal Year-End tasks may impact users outside of Fund Accounting. When scheduling the transition to a new fiscal year, it is important to know what each process will do and who it will affect to coordinate year-end activities between departments and eFinance modules appropriately.

Key Reports

Fund Accounting Reports: (Main Menu > Fund Accounting > Reports > Audit Trails)
- Options to verify your budget codes are in balance:
  • General Ledger Audit Trail
  • Expenditure Ledger Audit Trail
  • Revenue Ledger Audit Trail
  • Project Ledger Audit Trail (if applicable)
Payroll Reports: (Main Menu > Human Resources > Reference Tables > Payroll)
- Run payroll table reports - select each table and select Print on the Toolbar to print table information.
  • Deduction Table
  • Confirm the Withholding and Benefit Accounts
  • Confirm Override Accounts

Fund Accounting End of Year Checklist

Fund Accounting Year-End Planning
• Has the district performed a Final Close for the prior year?
• What is the Year on the Fund Accounting Profile and Budget Prep Profile?
• What is the Year on the Ledgers? (General, Expenditure, Revenue)
• Has the district already run an initial extract in Budget Prep?
• Does the district use Payroll Encumbrances?
• Does the district use Summer Pay Fiscal Accruals?
• Has the district liquidated payroll encumbrances?
• Has the district inactivated all the Expenditure Accounts?
Check Ledger Balances - (Main Menu > Fund Accounting > Reports > System Maintenance > Check Ledger Balances)
- It is recommended that the Check Ledger Balances report be run often during the Fiscal Year-End process to ensure that a task does not cause funds to go out of balance. If this ever occurs, contact PowerSchool Support for assistance.
- Run Audit Trail Reports: Main Menu > Fund Accounting > Reports > Audit Trails > General Ledger, Expenditure Ledger, Revenue Ledger & Project Ledger options
  - Tip: There is a notification setting that can be set to alert of an Out of Balance Situation.
Verify Fund Accounting Profile - (Main Menu > System Administration > Administration > Profiles > Fund Accounting Profile)
• Purchasing Setup (Next Year Requisitions / Purchase Orders)
• Verify Fiscal Year
• Verify Last Year / Current Year Journal Entries
- If your organization encumbers payroll, check the Fund Accounting profile to ensure the account numbers in the Enc Control, Pay Res For Enc, Res For Enc, and Pay Enc Cntrl fields differ.
Extract Accounting Data - (Budget Prep Main Menu > System Administration > Administration > Profiles > Budget Prep Profile)
- Review the Budget Prep Profile to confirm the current Budget Prep year
- Before Running the Extract, you can Inactivate Accounts in the Expenditure Ledger that are no longer needed.
- Main Menu > Budget Prep > Budget Administrator > Extract Information
  - Tips:
    • The New Budget Year Extract Type is only run once.
    • Update Extracted Data may be run multiple times.
    • Current vs Original determines what Budget Amounts are loaded.
    • When extracting, select the latest period (Recommend Period 12).
    • Do not include Inactive Accounts to clean up unused accounts.
Step 5 Budget Prep Reference Tables and Ledgers
- Main Menu > Budget Prep > Reference Tables > Account List and Organization Chart
- If the accounts were inactivated before Extract, they will not appear in the ledgers. Any records that are extracted but are not required for the new fiscal year should be removed from the ledgers in Budget Administrator.
- Update the following:
  - Remove “old/inactive” ledger records.
  - Review each level of the chart of accounts.
  - Update Titles
  - Remove unneeded chart of account entries.
Start New Year Procedures
1. Main Menu > Fund Accounting > Periodic Routines > Year-End > Year End
2. Select the Start New Year Procedures button
3. This step is only done once a year to reset the checkboxes as well as reset the year end process.
  • Step 7 must be completed to create Next Year Requisitions for purchasing and warehouse.
  • Steps 7 and 8 must be completed to create Next Year Purchase Orders.
Create Ledgers (Expenditure, Revenue, Project)
- This step may be completed from two locations in eFinancePlus:
  - Main Menu > Budget Prep > Budget Administrator > Post Budget
  - Main Menu > Fund Accounting > Periodic Routines > Year-End > Year End > Create New Year Ledgers
- IMPORTANT: DO NOT POST LEDGERS AT THIS TIME. ONLY USE THE CREATE OPTION.
- Select the Create New Year Ledgers button.
  - This step copies budget year ledgers from Budget Preparation to new year ledgers in Fund Accounting with zero-dollar balances.
  - This step can be completed multiple times and should be run any time updates are made to accounts, organizations or ledgers in Budget Preparation.
General Ledger (New Fiscal Year)
- General ledger creation is required prior to moving Fund Accounting to new fiscal year. The General Ledger option must be selected, but it is highly recommended to check all options to ensure all ledgers include the most up-to-date information.This step will create the General Ledger accounts with zero balances for the new fiscal year.
  - Main Menu > Fund Accounting > Periodic Routines > Year-End >Year End > Create New Year Ledger > General Ledger
- When you run the option, the processing is as follows:
  - General Ledger accounts are created for all new year Organization Chart funds.
  - Funds from the previous year that do not appear in the new year Organization Chart are documented on an error log.
  - You can run this option again after correcting any errors. Run as many times as needed to ensure that all new year General Ledger accounts are properly set up.
  - Once all New Year General Ledger accounts are properly set up, you can enter purchase orders in the new fiscal year while still working in the old fiscal year.
  - If next year's requisitions have been entered, they can be converted to purchase orders, which will be posted to Fund Accounting in Period 1 of the new fiscal year.
Next Year Requisitions & Purchase Orders
- To activate the Next Year's Requisitions and Purchase Orders options, choose the Create options from the menu selections.
  - Main Menu > Purchasing > Requisitions > Next Year Requisitions
  - Main Menu > Purchasing > Purchase Orders > Next Year Purchase Orders
Payroll Encumbrances
- Main Menu > Human Resources > Periodic Processing > Liquidate Payroll Encumbrances
- Liquidate all payroll encumbrances if applicable.
Close Purchase Orders
- Main Menu > Fund Accounting > Periodic Processing > Close Purchase Orders
  - If you do not want to roll specific prior-year encumbrances forward into the new year, use the Close Purchase Orders option to clear the encumbrances.
  - If you do want to roll encumbrances forward to a liability or equity account, verify the account and its offset account are on the balance sheet
    - Tips:
      - Roll Selectively by Fund: Enter a Fund, leave blank to roll all, or use a pipe symbol to select specific Funds.
      - Roll Forward to New Fund: leave this field blank to use the same fund.
      - Roll Forward to option: Recommend leaving the default.
      - Liability Account: Only used if you selected “L”
      - Offset Account: Enter the Liability Account you want the encumbrance to roll to.
      - Increase Budget for Encumbrance: Increases the new year’s budget by the
        amount of the prior year's encumbrance.
      - Skip “R” Accounts: check to exclude purchase orders written to “R”
        accounts.
      - Retain Rolled POs: leave PO in the prior year without liquidating the encumbrance.
      - Prefix for Prior Year PO Number: if the Retained Rolled POs are checked, you decide here what prefix to add to the front of Purchase Orders. Most districts will start with A and increase each year.
      - Use Skip or Process (you can only use 1) if you would like to enter ranges of Purchase Orders.
Year End Reports
- Main Menu > Fund Accounting > Reports > Audit Trails
- Main Menu > Fund Accounting > System Maintenance > Check Ledger Balance > Check Balances Per Fund
- Main Menu > Fund Accounting > Reports > General Ledger > Batch Journal Entries
- Main Menu > Fund Accounting > Reports > Budget Ledgers > Batch Budget Adjustments and Batch Budget Transfers
- Main Menu > Fund Accounting > Reports > Payable Entry > Batch Accounts Payable
- Main Menu > Fund Accounting > Reports > Vendor Checks > Batch Manual Checks
- Main Menu > Fund Accounting > Reports > Receipts > Batch Receipts and Batch Receivables
- Main Menu > Fund Accounting > Reports > Encumbrances > Batch Encumbrances
- Main Menu > Fund Accounting > Reports > Accounts Payable > Cash Requirements
- Main Menu > Fund Accounting > Reports > Financial Statements > Encumbrance Status Report
- Main Menu > Fund Accounting > Reports > Financial Statements > Balance Sheets
Closing Transactions
Complete any entries in the current fiscal year and rerun reports, as necessary, to retainprinted documentation of the system’s data.
• Automated Payroll Interface
• Batch Entry (Journal Entries, Accounts Payable, Receipts)
Backup Fund Accounting to Disk:
- Main Menu > System Administration > Backups to Disk > Backup Fund Accounting to Disk
Update Ledger (Period 1 / Period 13)
- Main Menu > Fund Accounting > Periodic Routines > Year End > Update Ledgers
  - This process updates the Fund Accounting Profile to Period 1 of the new fiscal year.
  - It also updates the General Ledger with the prior fiscal year period 12 ending balances.
  - After this step is complete, Period 13 for the Prior Year is available for processing.
Fund Accounting Profile Confirmation
- Review the Fund Accounting Profile and update as needed.
  - Main Menu > System Administration > Profiles > Fund Accounting Profile
Check Ledger Balances
- Rerun the Check Ledger Balances report to verify all funds are in balance.
  - Main Menu > Fund Accounting > Reports > System Maintenance > Check Ledger Balances > Check Balance Per Fund
Backup Fund Accounting to Disk:
Main Menu > System Administration > Backups to Disk > Backup Fund Accounting to Disk
Post Ledgers
- Main Menu > Budget Preparation > Budget Administrator > Post Budget Or
- Main Menu > Fund Accounting > Periodic Routines > Year End > Post Ledgers
- When ready, post approved budgets to Fund Accounting for the new fiscal year.
Fund Accounting Reports
- Rerun the following reports and review them for accuracy:
  - Main Menu > Fund Accounting > Reports > Audit Trails (minimally, run first 4 audit trail reports)
  - Main Menu > Fund Accounting > Reports > Financial Statements > Balance Sheets
  - Main Menu > Fund Accounting > Reports > Financial Statements > Trial Balance
  - Main Menu > Fund Accounting > Reports > System Maintenance > Check Ledger Balances > Check Balance Per Fund
Encumbrance Reports
- Run the encumbrance reports to retain a record of the prior year’s information.
  - Main Menu > Fund Accounting > Reports > Financial Statements > Encumbrance Status
  - Main Menu > Fund Accounting > Reports > Financial Statements > Encumbrance Activity Reports
Roll Prior Year Encumbrances
- Main Menu > Fund Accounting > Periodic Routines > Year End > Roll Prior Year Encumbrances
  - This step will roll encumbrances from the old fiscal year to the new fiscal year.
  - You can roll encumbrances multiple times using different options as needed. Make sure to review options carefully.
Interim Close
- Execute Interim Close to update the general ledger with Period 13 transactions (Main Menu > Fund Accounting > Periodic Routine > Year End > Interim Close):
  - This option can be run multiple times as needed whenever general ledger balances need to be updated until the Final Close is completed. This process will:
    • Leave Period 13 open for the Prior Year
    • Updates the new year’s Fund Balance account with Period 13 revenue transactions minus the period’s expenditure transactions.
    • Updates the new year’s Budgetary Fund Balance account with the balance from the Budget Revenue Control ledger minus the balance from the Budget Expenditure Control ledger.
Final Close Preparation
- Complete the following in preparation for the Final Close:
  - Ensure all transactions in Period 13 of the prior year are entered and the audit is complete.
    - Main Menu > Fund Accounting > Reports > System Maintenance > Check Ledger Balances
    - Main Menu > Fund Accounting > Reports > Audit Trails
    - Main Menu > Fund Accounting > Reports > Financial Statements >Balance Sheets
    - Main Menu > Fund Accounting > Reports > Financial Statements >Project Status Reports
Final Close
- Execute Final Close to close the previous year to all transactions:
  - Main Menu > Fund Accounting > Periodic Routines > Year End > Final Close
    - Run this option once after all processing in the prior year has been completed.
    - Executing Final Close prevents any further posting to the prior year.
Optional “Clean Up” Tasks
- The following tasks delete the prior year’s information that is no longer needed:
  - Main Menu > Fund Accounting > Periodic Processing > Delete Prior Year Transactions
  - Main Menu > Fund Accounting > Periodic Processing > Delete Prior Year Ledgers
  - Main Menu > Fund Accounting > Periodic Processing > Purge Payment History
  - Main Menu > Fund Accounting > Periodic Processing > Purge Vendor Check History

Any time you delete or purge information from the system, it is recommended to create an archive backup first.