Monthly Closing & Reporting

Scope

This policy applies to responsibilities around monthly closing and reporting of the University’s financial operations. 

Reason for Policy

This policy establishes the University’s process for closing the monthly accounting period and related financial reporting to ensure the integrity of financial data within the general ledger.

Policy Statement

The University’s reporting period for financial purposes is on an annual basis ending June 30^th. The financial records are in accordance with Generally Accepted Accounting Principles (GAAP). Monthly financial records are maintained with transactions created, edited and posted on a daily basis.  At the end of each month, the UM System Controller’s Office performs various functions to close the current month’s accounting period. 

During the closing process, the financial records are validated for assurance all journals have posted and have been balanced.  Certain tasks are performed by the UM System Controller’s Office to ensure appropriate expenses have been accrued and revenue has been recognized in accordance with GAAP. 

Once the closing process is complete the UM System Controller’s Office generates a set of financial reports for review by System and Campus Leadership. 

Definitions

Accountabilities

UM System Controller’s Office:

• Ensure all transactions are posted and balanced prior to closing the current accounting period.
• Ensure any applicable accruals and receivables have been posted prior to closing the current accounting period.
• Produce a set of financial reports assessable to System and Campus Leadership.

Campus Division of Finance:

• Monitor daily activity for edit and budget errors to ensure all transactions are posted within the correct accounting period.
• Annually, provide signed sub-certification letter to Office of Controller attesting to accuracy of financial records.

Additional Details

Forms

Related Information

Policy 21101 on Fiscal Responsibility
Policy 21105 on Internal Controls – Sub-Certification Process

History

Formerly Accounting Policy Manual 3.40 – Month End Closing (revised 5/14/2007)

Procedure

General Ledger Monthly Closing Calendars