University of California, San Diego

May 8, 1996
SUBJECT: Fiscal Closing Changes
The purpose of this message is to follow up on the previous campus notice dated April 16, as well as numerous campus meetings on the changes to the fiscal closing process for this year end.
The more significant changes you can expect are as follows. There will only be two closing cycles, Preliminary and Final. While the Preliminary Closing on July 12 will be six days later than last year, no departmental activity will be allowed in ledgers after that date. The final closing will be on August 2, nine days earlier than last year.
The major change in practice to facilitate accomplishing the new fiscal closing process is to not lapse any General Fund or other current unrestricted funds balances at the departmental level. Generally, all such budget balances, whether positive or negative, will automatically be carried forward to the new fiscal year in the same department where they resided as of year end. However, it is campus policy that academic salary dollars do not carry forward. Also, the revised process does not change any budgetary controls which may be required within specific Vice Chancellors' areas, which will be specified in closing instructions you will receive from the appropriate Vice Chancellor's Office.
Since General Fund balances do not lapse at year end at the departmental level, all of the previous extraordinary lien activity associated with covering those funds will be unnecessary and should not be done. The accelerated closing process deadlines will not permit most of this activity to be processed even if a department attempted to do so. There will continue to be a process to identify significant unrecorded liabilities.
For any accruals that your unit may require, we strongly urge you to determine that information as early as possible, as accruals for year end must be recorded before the preliminary cutoff. The traditional "13th month payroll" will also not be run. Any "fund clean up" required should be performed based on preliminary information so the July 12 cutoff can be met, or deferred until July business after the closing is completed.
In a few days, the General Accounting Division of BFS will be distributing detailed fiscal closing instructions and time frames. At about the same time, if applicable, you should also receive more specific instructions from the applicable Vice Chancellor's Office. Please read these instructions carefully. If you have any questions, please contact Laurie Martin at 4-4992 or Nick Johnston at 4-4736.
Donald A. Larson