Fiscal Year End Procedures
Jacksonville State University operates on a state fiscal year basis with the year beginning on October 1 and ending on September 30. At the end of the fiscal year, financial records must be closed and financial statements are prepared. On approximately September 15 of each year, routine purchasing is suspended. Purchase orders are issued after this time for emergency items only, or for goods/services needed during the time the entire financial system is shut down (approximately October 1 - 15 of each year). Budget managers should plan for purchases that will need to be made during this time and obtain purchase orders prior to September 15. Open purchase orders for supplies, etc. are useful for this time period.
Purchasing requests from September 15 through September 30 are submitted on a purchase requisition form. The form must be completed and signed by the budget manager and then forwarded to the Office of Procurement & Fixed Assets. Purchase orders for goods or services to be received in the next fiscal year can be issued prior to fiscal year end. If funds are not available in the current year budget to enter the purchase request, a Request to Encumber Next Fiscal Year Funds can be approved by the appropriate vice president and submitted with the purchase requisition. This form is necessary only if there is not sufficient budget for the requisition to be entered in the current year budget.
Goods or services received within a fiscal year must be charged to the budget in that fiscal year. This includes employee travel. Receiving reports should be submitted to Accounts Payable as soon as possible in the month of September. Purchase orders can be carried over from one fiscal year to another if they are not complete.
Invoices not received prior to September 30 for items received in that fiscal year will be accrued. An accrual means that an item will be charged to the budget in fiscal year that has ended, but payment will be made in the new fiscal year. An accrual results in no charge to the new fiscal year budget if the accrual amount is the actual cost of the goods or services.
Travel or other expenditures that will occur in the next fiscal year but must be paid prior to fiscal year end will be set up as pre-paid expenditures. The expenditure will be paid in the current fiscal year, but be charged to the new fiscal year budget.
A year end schedule will be provided to budget managers and other employees in August. Budget managers should review the schedule and plan accordingly. Questions should be directed to the Controller or the Director of Procurement & Fixed Assets.