1. Perform Bank Account Procedures
1.
Final Bank Reconciliation
– perform the final monthly reconciliation in Trans Entry- Bank
Statements - for each bank account plus any petty cash accounts.
2. Print an Unpresented Cheques list for each bank account,
as at year end point.
3. Cancel any unpresented items that are out of date or
unlikely to ever be presented now. Enter an equal but opposite
entry, then reconcile the opposite entry to the original.
4. Print the Bank Account Balances summary printout, up to the year
end date, in Trans Entry - Bank Account Balances.
2. Perform Balance Sheet Integrity Check
1. Run and print a Summary Balance Sheet up to the year end date,
from Screen Enquiries and Reports. First check that the top and
bottom sections are indeed in balance. If they are not, it is most
likely to be a transaction dated beyond the period of the report.
Next, check that the Excess of Income over expenditure figure is
zero. If it is not, it will be because one or more accounts have
been deleted with an outstanding balance. Go to Screen Enquiries -
Reports by Account - Excess of Income History to see what accounts
have been deleted. Use Trans Entry - Transfers to move money out of
Excess of Income to one of your short code accounts. Finally,
check that the balances for each bank account on this report are
identical to the balances printed in Bank Account Balances.
3. Perform Income & Expenditure Reconciliation
1. Run
and print an Income & Expenditure report up to the month end date,
from Screen Enquiries and Reports. Check the movement in period
figure equals the movement in period figure on the Summary Balance
Sheet. Check the income and expenditure columns look reasonable, and
that the closing balances are also generally as expected.
4. Run Year End Reports
Which
reports you decide to print depends on your school and your
requirements. However, these will usually include:
Income
and Expenditure Report – dated to year end
Summary Balance Sheet Report – dated to year end
Balance Sheet - dated to year end
Cheque Report with To and From dates for the year
Full Audit Trail – DO NOT PRINT - we recommend you have this saved
in an Excel file which can be referenced and manipulated, rather
than a printed list.
Individual Reports by Account for budget holders/trip leaders as
appropriate
5.
TAKE A PRE YEAR END ARCHIVE - in Period End - Archives.
THIS STEP IS VITAL!!
E E
6. Get ready for the Year End
Closedown
a.
It takes the Closing Balance for each short code and makes it the
Opening Balance for the new financial year
b.
Clears all transactions from the short codes, leaving only the
opening balance.
c.
Clears all reconciled transactions from the Bank Statement area,
leaving only unreconciled items.
d.
Allows short codes that were used in the previous financial year,
but will now not be needed, to be deleted.(Period End–Delete) If the
short codes has a balance, positive or negative, and is
deleted the balance will be transferred to “Excess of Income over
Expenditure” which appears on the Balance Sheet. (Money can be
transferred out of Excess of I over E perhaps to a new short code
that inherits a balance, using the Transfer of Short Code Income
option.)
e.
Allows students, responsible people, suppliers, classes etc to be
deleted if no longer required.( Period End – Delete)
f.
Purges all transactions from all areas of the system, except the
audit trail.
Year end is the time when old accounts that will not be needed
during the next financial period can be removed. It is important
however to follow the correct procedure to do this: -
Before Year End but after Year End reports run
Transfer any balance on the account to another account that is to
remain in the next financial year. This could be a GENERAL or
RESERVE type account if you have one, or any other account that is
to receive the excess or make up the shortfall.
This should done through TRANSACTION ENTRY – TRANSFERS and use SHORT
CODE INCOME transfers if the account you are closing is in credit,
or SHORT CODE EXPENDITURE transfers if the account is in debit.
Print an Income and Expenditure report after your transfers to make
sure that all accounts you wish to close have a zero balance. Take
a SECOND ARCHIVE now, called YEAR END 07/08 AFTER TRANSFERS
After
Year End
Delete
the accounts specified above using PERIOD END – DELETE.
If
you do not zero balances before year end
If
you delete accounts that have not had their balance zeroed prior to
year end, the balance will be transferred to a ‘holding’ area called
Excess of Income Over Expenditure which appears on the Balance Sheet
report. You will then need to use Transfers to move it elsewhere.
If you zero balances after the year end, you will not be able to
delete the account because it will have had transactions during the
financial year.
7.
Perform
Year End Closedown
Once you are sure that all checks and reconciliations have
performed, all balances transferred and all report printed you can
start on the closedown process.
Go
to Period End – Year End. Select your Year End date, Confirm that
you have an Archive and click button to close the year.
Run an Income and Expenditure report, and make sure that the Opening
Balances are exactly the same as the Closing Balances for previous
year, for each Short Code. Run a Balance Sheet and check that
Movement in Period is Zero and that it balances.
If you now wish to clear and close accounts that you cleared to ZERO
before the year end. Delete any redundant short codes you wish to
that have a zero balance using Period End – Delete
Your Year end is complete!!