Year-End Close Procedures


Purpose

To describe the year-end closing procedures for the AUI.

Procedure

  1. The AUI/NRAO Chief Accountant ensures that all invoices for services provided during the fiscal year have been received and entered into the general ledger.
  2. For services provided during the fiscal year but will not be billed or the invoice will not be available in time for the fiscal year cutoff date, the AUI/NRAO Chief Accountant analyzes and enters an accrual journal entry to account for these expenses. The AUI/NRAO Chief Accountant makes sure that the accrual entries are reversed in the next fiscal year.
  3. The NRAO Chief Accountant completes the JP Morgan Bank reconciliation.
  4. After the reconciliations have been completed and all Accounts Payable transactions have been entered, the AUI/NRAO Chief Accountant prints the General Ledger and reviews to ensure that all entries have been posted to the correct accounts and enters any reclassifying journal entries if needed.
  5. The AUI/NRAO Chief Accountant records the revenue and any related accounts receivable and then completes a final review of the General Ledger.
  6. After the AUI/NRAO Accountant’s final review of the General Ledger, it is provided to the AUI Controller for review and approval.
  7. The AUI/NRAO Chief Accountant then prepares the AUI Financial Statements and provides them to the AUI Treasurer and AUI Controller for review and approval.
  8. After approval, the AUI/NRAO Accountant notifies the Management Information Systems Manager to close the fiscal year.
  9. An external audit is then performed and any client request entries or audit adjustments are entered and MIS will rerun the year-end close.