Financial Accounting and Controls

FISCAL CLOSE INFORMATION FOR 2015-16

 Accounting and Controls home Fiscal Close Information Financial Controls Year-End Accrual Procedures The Use of Spreadsheets Key Controls Checklist SAS 115 

For your unit’s fiscal close activities, please review the following documents carefully to ensure that all relevant steps are taken according to the schedule.

Should there be changes or additions to any of the information covered in the Campus Checklist or Monthly Close Schedule, a Berkeley Financial System (BFS) listserve message will be distributed to notify you.

Annual Financial Results and Financial Statements

Financial (actual) balances and transactions posted in the BFS general ledger are subject to audit by PricewaterhouseCoopers (PwC), University of California’s external audit firm.  Central administration offices provide PwC with most of the information it requests. However, campus units may receive requests for information pertaining to internal controls, financial transactions and balances and other information that is not available in a central office.

Campus divisions are responsible for the integrity and accuracy of their financial transactions. Divisions should review their revenues, expenses, and any balance sheet items under their control for propriety and make necessary corrections by the relevant fiscal close deadlines. Divisions which have unrecorded revenues for services rendered or goods delivered to third-parties (not campus units) on or prior to June 30, 2016 should process an accrual journal entry to recognize the revenue in the current fiscal year. Divisions which have received services or goods from third-parties on or prior to June 30, 2016 but have not received or processed the invoice should process an accrual journal entry to recognize the expense in the current fiscal year. All accrual journal entries should be supported with appropriate documentation. For additional information on year-end accrual journal entries, go to the Year-End Accrual Procedures page found on this website. For assistance in processing accruals for revenue or expenses, please contact Financial Accounting & Controls at gao@berkeley.edu.

After the cut-off for campus unit processing of June journal entries (July 13), if you identify a material (> $1,000,000) unrecorded or erroneous financial transaction for fiscal year 2015-16, contact Financial Accounting & Controls at gao@berkeley.edu.

Please be aware that valid postings to your chartstrings may occur subsequent to the campus unit deadline of July 13 for reviewing and approving on-line financial journals. This may occur because central campus units will still be processing transactions, such as intercampus responding entries, in accordance with system-wide procedures and deadlines. However, procedures are in place at the campus to minimize these transactions.

Questions about annual campus financial results and general fiscal close matters should be e-mailed to gao@berkeley.edu.

Deficit Resolution Policy and Waiver Request

All units are expected to meet their operating needs within their available funding, and deficits should be cleared throughout the year. Any deficits remaining on the ledger at fiscal year-end will be cleared by the Contracts and Grants (C&G) Accounting Office for C&G funds and by the Campus Budget Office for non-C&G funds according to the campus policy on deficit resolution. All current funds – including contract and grant funds, gifts, general funds, and recharge funds – are subject to the deficit clearing program. Exceptions will be made only for deficits with an approved, written deficit resolution plan on file. The full policy is available at: http://budget.berkeley.edu/resources/deficitresolution .

Requests for new or revised deficit waivers for FY 2015-16 must be submitted to the Campus Budget Office or Contracts and Grants Accounting no later than June 10, 2016. Instructions and information about the deficit waiver process will be forthcoming on the BFS listserve.

Questions about deficit resolution should be directed to your divisional finance leader. Divisional finance leaders should work with their Portfolio Budget Officer for non-C&G deficit, or email budget@berkeley.edu, and with Contracts and Grants Accounting for C&G deficit, or email cgahelp@berkeley.edu.