Fiscal Year-End (FYE)
May 6, 2022
Memo for FY2022 year-end published for the community. If there are changes or clarifications, a note will be made in this section of the memo. The full fiscal year-end memo and procedures are in a Google Doc. Keep in mind that in the past it's been necessary to make updates to the memo throughout the year-end process, either to clarify matters, fix errors, or provide updates, so please check back on this page or the Google Doc periodically throughout the process.
|May 10, 2022||Budget target allocations were loaded early (on May 6). Was scheduled for May 31.|
|May 18, 2022||Clarification for the JE & Retro processing community: On weekends, journal entries post on Sunday nights and Retros post on Saturday nights.|
|May 18, 2022||June 20 deadline was moved to June 21. Sales Tax: Last day to prepare a JE to record sales tax payments entered on the State of Minnesota web site.|
Why is fiscal year-end important?
Each fiscal year, the University is required to prepare consolidated financial statements in accordance with Generally Accepted Accounting Principles (GAAP). These financial statements provide an overview of the University’s financial position as of June 30 and its activities for the fiscal year (July 1 through June 30). The statements cover the entire University system and its legally separate component units, for example, the University of Minnesota Foundation.
Why is fiscal year-end important to departments?
Fiscal year-end is important to departments because accurate reports are required for management accounting, sponsors and donors want accurate reporting, and the University must receive clean audits to maintain funding. To ensure that the University can meet these requirements, all revenues must be recorded when they are earned and all expenses must be recorded when incurred.
- Revenues are earned when a business transaction to sell goods or services has been completed, and those goods or services have been delivered or completed.
- Expenses are incurred when a business transaction to purchase goods or services has been completed, and those goods or services have been received by the University.
All revenue and expense transactions must be recorded in a timely manner so the University’s financial records can be closed to allow for sufficient time for preparation of the financial statements and allow timely management reporting within the departments and for the University as a whole. Therefore, it is imperative that all departments follow the transaction and reporting deadlines.
Emergency purchasing procedures for year-end
Each year there is a period of time (about five business days) at the end of the year where requisitions, receipts, purchase orders, PO change orders, and vouchers may not be entered in the financial system.
To minimize disruptions and problems, please work with your departments to plan ahead as much as possible. Everyone understands that purchasing activities cannot completely cease during this window. Please start planning now to ensure adequate supplies (including oxygen, dry ice, and food/bedding for animals), equipment, and services are ordered ahead of time.
If you need to make a purchase during the pause in recording procurement-related transactions in EFS, there are a number of options. If it is unclear what action to take, contact your local administrative support staff or the Financial Helpline at [email protected]
- Phone orders may be accepted by U Market Services for select items
Only items sold by the supplier "U Market Stock" or “U Market Controlled Stock” in U Market may be ordered by contacting 612-624-4878 or [email protected] Departments must provide ChartField string information that is valid in the new fiscal year because these orders cannot be billed until the new fiscal year opens.
- $0 to $2,500
Use the PCard up to the limits ($2,500 per order and $10,000 per month). All normal PCard rules and procedures apply. Capital equipment or professional services must NOT be paid for out-of-pocket, using the PCard, or Travel Card.
- An emergency situation that requires a PO
There should be very few of these emergency orders. If a situation arises, email [email protected] and request assistance from Purchasing Services.
- Existing Blanket Orders
Continue to order off existing blanket orders and enter the transactions after the new fiscal year opens.
- Professional Services up to $2,999.99
Direct the supplier to perform the work and enter the transaction in the new fiscal year on or after July 1. Services must NOT be paid for out-of-pocket, using the PCard, or Travel Card.
- For Professional Services $3,000 and greater
Email [email protected] and request assistance from Purchasing Services. Services must NOT be paid for out-of-pocket, using the PCard, or Travel Card.
If emergency situations arise where goods or services are needed and it is unclear what action to take, contact your campus or college Chief Financial Manager or the Financial Helpline at [email protected].
U Market year-end
The deadline for departments to pull U Market shopping carts over into EFS and turn them into requisitions for the fiscal year being closed will be the same as for any requisition. U Market will remain open, irrespective of whether shopping carts can be brought into EFS for final processing and dispatch to suppliers. After the deadline, shoppers will still be able to put items in carts and assign carts but no carts can be turned into EFS requisitions until July 1. Billing in the fiscal year being closed for U Market purchases ends with invoices received from the suppliers by the deadline for processing vouchers.