CLASSIC YEAR-END PROCEDURES

CLASSIC YEAR-END PROCEDURES December 2014 A Subsidiary of Baker Tilly Virchow Krause, LLP Ten Terrace Court P.O. Box 7398 Madison, WI 53718-7398 (608) 240-2600 (888) 241-1517 FAX (608) 249-1050 Website: www.civicsystems.com Civic Systems, LLC

Table of Contents ACCOUNTS PAYABLE... 1 CHANGING FROM CASH TO ACCRUAL BASIS AT FISCAL YEAR-END... 1 A. Print and Review Unpaid Invoice Report and GL Reconciliation Summary Report Before Proceeding... 1 B. Make the Change from Cash to Accrual... 2 C. Entering Invoices... 3 D. Updating the General Ledger... 3 E. Setting the System Back to Cash Basis... 4 YEAR-END PROCESSING... 5 A. Check Data Integrity, Run Checkout and Backup Data... 5 B. Verify Federal ID#... 6 C. Accounts Payable Steps Checklist Year-End Steps... 7 C. Accounts Payable Steps Checklist Year-End Steps 1099s... 10 ACCOUNTS RECEIVABLE... 19 YEAR-END PROCESSING... 19 A. Check Data, Run Checkout and Backup Data... 19 B. Delete Customer History (Optional)... 20 GENERAL LEDGER... 23 FISCAL YEAR-END PROCESSING... 23 A. Check Data Integrity and Backup Data... 23 B. General Ledger Steps Checklist Year-End Steps... 24 C. Other Year-End Tasks... 35 Civic Systems, LLC

Accounts Payable Changing from Cash to Accrual Basis at Fiscal Year-End ACCOUNTS PAYABLE Note: Perform a BACKUP of the current Accounts Payable files (APW.MDB) using your customary backup procedures. CHANGING FROM CASH TO ACCRUAL BASIS AT FISCAL YEAR-END Many of you will want to record accounts payable transactions on an accrual basis rather than a cash basis after the fiscal year-end. This will eliminate the need to make adjusting journal entries to record prior year payables. If you are currently on a cash basis, all accounts payable transactions post to the General Ledger based upon the check date. After year-end, you may not want this to occur. You will want invoices being paid in the current fiscal year for services rendered or goods received in the prior fiscal year recorded as expenditures in the prior fiscal year. This is called the accrual basis of accounting. Update to current year A. Print and Review Unpaid Invoice Report and GL Reconciliation Summary Report Before Proceeding 1. It is recommended that you print and review the Unpaid Invoice Report through year end. Select Reports Unpaid Invoice Report. 2. Pay all invoices shown before changing the accounting basis. 3. Run the GL Reconciliation Summary Report. Select Reports GL Reconciliation Summary Report. Change the date to include the entire year: Each month will be shown on a separate page. If non updated items are present, a Yes will appear in the un-posted column. To update month where Yes is present, go to Miscellaneous General Ledger Update. Civic Systems, LLC Page 1

Accounts Payable Changing from Cash to Accrual Basis at Fiscal Year-End B. Make the Change from Cash to Accrual Note: In the following example, fiscal year-end is 12/31/YY. The change is usually done on the first working day of the new fiscal year, or before the first group of invoices is entered in the new fiscal year. 1. From the Applications Menu, select Financial Accounts Payable. 2. Select Maintenance Control. 3. Click on the GL Info tab. 4. At the Accounting Basis field, select Accrual from the drop down. Make this change to accrual after the last check run in the current fiscal year or before the first group of invoices are entered in the new fiscal year. The field GL Period Based on Invoice Date will become active. Check this field if you want the system to determine the accounting period the invoice will be posted to based upon the invoice date (See step C. 1. below). Important Note: Marking this check box will assign each invoice a GL posting period based on the invoice date. For example, if you receive an invoice in January 2014 with an invoice date of November 11, 2013, the system will assign a November 2013 posting period (period 11/13). We recommend the GL Period Based on Invoice Date field be left unchecked. The user will then have control over the period to which the invoice is charged (see step C. 2. below). Civic Systems, LLC Page 2

C. Entering Invoices Accounts Payable Changing from Cash to Accrual Basis at Fiscal Year-End 1. GL Period Based on Invoice Date Checked: If the GL Period Based on Invoice Date is checked in Control, the GL Posting Period in Invoice Entry will automatically populate based on the entered invoice date. You may edit this field once it is populated. 2. GL Period Based on Invoice Date Unchecked: If the GL Period Based on Invoice Date is unchecked in Control, you have control over the period to which the invoice is charged. As you enter Data Entry Invoice Entry a new field will appear allowing you to select a GL Posting Period. Select correct GL Period We suggest that you separate invoices between prior fiscal year invoices and current fiscal year invoices. Specify the GL Posting Period the invoices should be recorded upon entering Invoice Entry. This will be the default GL period for invoices entered during that session. When you have completed entry of the prior year invoices, either change the GL Posting Period: at the applicable invoice, or select the Options on the toolbar to change the GL Posting Period. Note: When doing Invoice Payment Selection, the GL period you assign to the check should be based on the check issue date and not the GL period assigned to the invoice. If you have any questions regarding this, call Civic Support. D. Updating the General Ledger 1. When updating the General Ledger, do not forget to update applicable periods. You may find yourself updating several accounting periods in the prior fiscal year and in the current fiscal year. For example, if you entered an invoice to be posted to the prior fiscal year (assume 12/31 fiscal year-end), updating January will only update the check to the General Ledger and not the invoice. December will also need to be updated to post the invoice to the appropriate expense account in the prior fiscal year. You can continue to leave the system on an accrual basis as long as you find the need to post invoices to the prior fiscal year. Civic Systems, LLC Page 3

Accounts Payable Changing from Cash to Accrual Basis at Fiscal Year-End E. Setting the System Back to Cash Basis 1. When all invoices have been recorded for the prior fiscal year and you wish to return to a cash basis: a. Select Maintenance Control. b. Click on the GL Info tab. c. At the Accounting Basis field, select Cash from the drop down. All invoice transactions will now post to the General Ledger as of the check date. d. Click Close. Civic Systems, LLC Page 4

YEAR-END PROCESSING Accounts Payable - Year-End Processing The IRS changes 1099 form layouts almost every year. Make sure you have the latest program release installed. 1099/W2 & W3 instructions can be downloaded at www.irs.gov/formspubs/index.html. The year-end closing process creates year-end summary totals and changes the designated current year to reflect the correct current balances for each vendor. We suggest that you check the data integrity by performing the following steps before getting started. Once this is completed, you will be able to start the 1099 and year-end process for Accounts Payable. A. Check Data Integrity, Run Checkout and Backup Data 1. Perform a BACKUP of the current accounts payable files (APW.MDB) using your customary backup procedures. 2. Go into Caselle and from the Applications Menu, select System Management Caselle Application Tools. Make sure that all users are out of the system. 3. Select Database from the menu. 4. Highlight apw.mdb from the Select Database(s) section. 5. Click Compact and Repair. a. Wait for the message: Finished Compacting selected database(s) on the left. 6. Click Fix NULLs. a. Wait for the message: Finished fixing NULLs on the left. Civic Systems, LLC Page 5

Accounts Payable - Year-End Processing 7. Click Close. 8. Select Exit from the menu. 9. From the Applications Menu, select Financial Accounts Payable. 10. Select Miscellaneous Checkout. a. Verify the Vendor Information boxes are checked as shown below. They do not automatically default to checked. b. Click the Transaction Information check box. c. Click the drop-down arrow by As of GL Period date. Select applicable period from the list. This function will check for un-updated transactions to the General Ledger through this period. Be patient as this process may take several minutes. Choose correct period d. Click GO. e. Verify printer settings and click Print. f. Address all checkout errors before proceeding. B. Verify Federal ID# 1. Go to Maintenance Control, at the General tab, verify that the Federal ID No. is present and correct. Civic Systems, LLC Page 6

Accounts Payable Year-End Processing C. Accounts Payable Steps Checklist Year-End Steps The generic steps checklist appears on the following page. For more detailed instructions on how to complete each step, please go to page 10. Civic Systems, LLC Page 7

Accounts Payable Steps Checklist Year-End Steps Accounts Payable Year-End Processing IMPORTANT!!! >> The IRS changes 1099 form layouts almost every year. Make sure you have the latest Caselle program release installed. >> The year-end closing process creates year-end summary totals, changes the designated current year to reflect the correct current balances for each vendor, and deletes vendor history prior to number of years shown. >> CHANGE FROM CASH BASIS TO ACCRUAL BASIS AT YEAR-END? SEE INSTRUCTIONS ON PAGE 1. 1. Print a 1099 Reconciliation Report for 1099 verification (REPORTS). 2. Review the information on the list. Any corrections for Vendor Type and 1099 ID should be entered through Vendor maintenance (MAINT). Correct 1099 amounts using 1099 Adjustments (MISC). Note: Adjustments or changes can also be made in Government Reporting database. 3. Print a FINAL copy of 1099 Reconciliation Report for 1099 verification (REPORTS). 4. Print a Vendor History for applicable vendors (OPTIONAL). 5. From the Accounts Payable Main Menu, select Applications, select W-2 & 1099. You may be prompted to create the GRW.MDB database. (Rename if wanting to keep prior year data.) 6. Convert 1099 information from Accounts Payable files (W-2 & 1099/MISC). 7. Review the Conversion Report. 8. Verify the 1099 Control File information (MAINT). 9. Run the 1099 Recipient File Checkout (MISC). 10. Verify the totals and the converted vendors. Correct 1099 amounts through Recipient Maintenance (MAINT). 11. Print sample 1099 to plain paper (REPORTS). Civic Systems, LLC Page 8

Accounts Payable Year-End Processing 12. Repeat Step 11 for each 1099 Type (DIV, INT, MISC, etc.). 13. Review and verify the items in each box of the 1099 form. 14. Repeat steps 10 through 13 until sample 1099 s are correct. 15. Print each 1099 type to actual 1099 forms (REPORTS). 16. Run Year-End Update Accounts Payable (MISC). Civic Systems, LLC Page 9

Accounts Payable Year-End Processing C. Accounts Payable Steps Checklist Year-End Steps 1099s 1. Print a 1099 Reconciliation Report for 1099 verification. From the Applications Menu a. Select Financial Accounts Payable. b. Select Reports 1099 Reconciliation Report. c. Change Payment Date(s) if necessary. You may want to deselect Include Non- 1099 Invoices. Update to current year d. Click Print. e. Verify printer settings and click GO to print the report. 2. Review the information on the list. Vendors missing from the listing or invoices not marked as a 1099 invoice can be corrected by completing the following steps: Marking a Vendor as a 1099 Vendor or Change the Vendor Type a. Select Maintenance Vendor. b. Select the applicable vendor. c. At Type: select the proper 1099 Type from the drop down menu. d. At the 1099 ID No: field, enter the applicable 1099 ID number. e. Repeat steps 2.b. 2.d. for all applicable vendors. f. Click Close. Civic Systems, LLC Page 10

Accounts Payable Year-End Processing Marking Invoices as 1099 Invoices a. Select Miscellaneous 1099 Adjustments. b. Enter applicable vendor number. Check the box to indicate those invoice amounts to be included as a 1099 amount. Change to correct year end date c. If the Total 1099 Amount is still incorrect, click in the 1099 Adjustment Amount field and enter the amount of the adjustment. This can be either a negative or positive amount. d. To verify the adjustment, the following information screen will appear. Click Yes. 3. If any changes to the Vendor Type and 1099 ID were needed, print a FINAL copy of the 1099 Reconciliation Report for 1099 verification. a. Select Reports 1099 Reconciliation Report. Change date range as needed and deselect Include Non-1099 Invoices. Civic Systems, LLC Page 11

Accounts Payable Year-End Processing 4. Print a Vendor History for ALL vendors desired (Optional). a. Select Reports Vendor History. b. Verify Transaction Date(s) range includes the entire year. If it does not, click the ellipsis button to change the dates. Update to correct year From the Select Report Dates box choose the correct date either from the calendar, or by selecting the applicable Types. Select the current calendar year-end date. Click Accept. Select current calendar year end date c. Change the Selection Criteria to include those vendors you wish to include in the report if other than ALL. If you wish to include ALL vendors, skip to step C. 4. d. (1) Double-click on the Value section for Vendor.Vendor No. Civic Systems, LLC Page 12

Accounts Payable Year-End Processing (2) Enter the vendor number(s) you would like to appear on this report in Enter Value. (3) Click Accept. d. Verify printer settings and click Print. e. Click GO. 5. Create the GRW.MDB database. The GRW.MDB database is used to store all 1099 and W-2 information. a. From the Accounts Payable menu, select Applications W-2 & 1099. b. If no GRW.MDB exists, a message box will appear asking you if you Would like to create an empty database? (1) Click Yes. (2) Click Yes at Okay to continue? (3) Click Yes at The Grw database revision of 2.X.XX does not match the most current revision of 2.X.XX. Okay to update the database?. (4) Click OK when Database updated successfully. 6. Convert 1099 information from Accounts Payable files. a. Select Miscellaneous Convert from Accounts Payable. b. Verify the current year is displayed. Will show year being converted You now have the option of converting vendors with a Zero 1099 Amount by placing a check mark in this box. Civic Systems, LLC Page 13

Accounts Payable Year-End Processing c. Click GO. d. At the following prompt, click Yes. e. If 1099 s were printed from Caselle last year, a message will appear, Okay to delete 20YY information from the 1099 Recipient Table? Click Yes to delete the prior year recipient data. If you do not click Yes, 1099 s will include data from both the prior year and the current year. f. Verify printer settings and click Print. 7. Review the Conversion Report. 8. Verify the 1099 Control File Information is complete. a. From the Government Reporting menu, select Maintenance Control. Verify or complete all information on the General tab. Set 1099 Misc Limit. The amount has been 600.00 and has not changed for 2014 1099 s. Civic Systems, LLC Page 14

Accounts Payable Year-End Processing b. Complete the Magnetic Media screen if applicable. c. Click Close. 9. Run the 1099 Recipient File Checkout. a. Select Miscellaneous Checkout. Civic Systems, LLC Page 15

Accounts Payable Year-End Processing b. Deselect the W-2 Employee Information check box. c. Click GO. d. Verify printer settings and click Print. e. Address all checkout errors before proceeding. 10. Verify the totals and the converted vendors. Correct 1099 amounts through Recipient Maintenance. a. Select Maintenance 1099 Recipients. b. Browse the vendors using the Data Control arrows. Verify and correct name and addresses on the General tab. Note: Gross Proceeds Paid to Attorney needs to be moved. The amount paid an attorney will appear in the Non employee Compensation box. Cut and paste this amount to the Gross Proceeds Paid to Attorney box for proper 1099 reporting. Verify the amount field on the 1099-Misc tab and all other applicable tabs. Civic Systems, LLC Page 16

Accounts Payable Year-End Processing c. If 1099 recipients were not setup in Accounts Payable, they may be added through 1099 Recipient Maintenance by clicking the New icon. Vendor information can be entered at the General tab and applicable amounts on the appropriate tab. Click Save. Continue adding vendors as needed. Note: If any changes and/or additions are made in this area, they will be overwritten if convert year end is repeated. d. Click Close. 11. Print sample 1099 s to plain paper. See sample forms at the end of this section. a. Select Reports Form 1099. b. Select the appropriate report from the drop down menu for the type of vendor that you are going to print 1099 s. c. Deselect the Include 1099 s below Minimum Limit: check box. d. Print forms to paper initially and verify alignment. (1) Click Print. (2) Select Yes, Okay to print the Forms? (3) Click GO. (4) Click No to Form Alignment. e. Review and verify alignment by laying the sample over the actual form. 12. Repeat step 11 for each 1099 Type (DIV, INT, etc). 13. Review and verify the items in each box of the 1099 form. 14. Repeat steps 10 through 13 until sample 1099 s are correct. 15. Print each 1099 type to actual 1099 forms, repeating for each copy. Upon completion of printing all copies, Close. Civic Systems, LLC Page 17

Accounts Payable Year-End Processing 16. Run Year-End Update. The year-end closing process creates year-end summary totals; deletes invoices, checks, PO s and requisitions that are paid/closed prior to the number of years of history as shown. Example: The Control Table is set to 3 years of history. Run year-end update to move from 2013 to 2014. The system will purge data prior to 2011. You can change the number of history years the system will keep in Maintenance Control. The process also changes the designated current year totals to reflect the correct current balances for each vendor. a. Return to Accounts Payable. b. Select Miscellaneous Year-End Update. c. Verify proper year is displayed. d. Click GO. e. Upon completion, the following information will appear f. At the prompt click OK. Civic Systems, LLC Page 18

Accounts Receivable Year-End Processing ACCOUNTS RECEIVABLE YEAR-END PROCESSING A. Check Data, Run Checkout and Backup Data 1. From the Applications Menu, select System Management Caselle Application Tools. Make sure that all users are out of the system. 2. Select Database from the menu. 3. Highlight arw.mdb from the Select Database(s) section. 4. Click Compact and Repair. Wait for the message: Finished Compacting selected database(s) on the left. 5. Click Fix NULLs. a. Wait for the message: Finished fixing NULLs on the left. 6. Click Close. 7. Select Exit. 8. Select Financial Accounts Receivable. Civic Systems, LLC Page 19

Accounts Receivable Year-End Processing 9. Select Miscellaneous Checkout. This function will check customer information as shown: a. Click GO. b. Verify printer settings and click Print. 10. Perform a BACKUP of the current accounts receivable files (ARW.MDB) using your customary backup procedures. B. Delete Customer History (Optional) 1. Print a Customer History report prior to deleting any history. a. Select Reports Customer History. b. Verify report date range. Change as needed. c. Change the Selection Criteria to include those customers you wish to include in the report if other than ALL. (1) Double-click on the Value section for Customer.Customer No. Civic Systems, LLC Page 20

Accounts Receivable Year-End Processing (2) Enter the customer number(s) you would like to appear on this report in Enter Value. (3) Click Accept. d. Click Print. e. Verify printer settings and click GO. 2. Delete customers. This function will delete unwanted customers and all invoices or transactions tied to those customers. Note: Delete customers with caution. We do not recommend deleting any customers with history in the current or prior fiscal years for audit purposes. a. Select Miscellaneous Delete Customers. b. Enter the customer number(s) or range of customers. c. Click GO. Civic Systems, LLC Page 21

Accounts Receivable Year-End Processing 3. Delete History. This routine will delete all closed invoices and the transactions associated with a closed invoice prior to a specified date. a. Select Miscellaneous Delete History. b. Review the warning note. c. Enter the customer number(s) or range of customers if other than ALL. d. Enter a statement date. Records will be deleted prior to this date. Note: We do not recommend deleting any history for the current or prior fiscal years for audit purposes. e. Click GO. Civic Systems, LLC Page 22

General Ledger Fiscal Year-End Processing GENERAL LEDGER FISCAL YEAR-END PROCESSING A. Check Data Integrity and Backup Data 1. From the Applications Menu, select System Management Caselle Application Tools. Make sure that all users are out of the system. 2. Select Database from the menu. 3. Highlight glw.mdb from the Select Database(s) section. 4. Click Compact and Repair. a. Wait for the message: Finished Compacting selected database(s) on the left. 5. Click Fix NULLs. a. Wait for the message: Finished fixing NULLs on the left. 6. Click Close. 7. Select Exit. 8. Select Financial General Ledger. 9. Perform a BACKUP of the current general ledger files (GLW.MDB) using your customary backup procedures. Civic Systems, LLC Page 23

General Ledger Fiscal Year-End Processing B. General Ledger Steps Checklist Year-End Steps The generic steps checklist appears on the following page. For more detailed instructions on how to complete each step, please go to page 27. Civic Systems, LLC Page 24

General Ledger Steps Checklist Year-End Steps General Ledger Fiscal Year-End Processing 1. Review the journals and verify all data for Cash Receipts, Payroll, Accounts Payable, Accounts Receivable, and Utility Billing, etc. have been updated for the fiscal year. 2. Finish the normal General Ledger steps for the last month of the fiscal year (i.e. 12/YY, 4/YY, 6/YY, 8YY) per the General Ledger Steps Checklist. 3. Run Automatic Allocations (CASH ONLY) for period 14/YY (DATA). 4. Run Checkout for period 14/YY (MISC) correct any errors and checkout again before continuing. OPTIONAL REPORTS: (may be required by auditor) 5. Print a Working Trial Balance for 14/YY for the Auditor (REP) or Export Amounts (MISC). 6. Print Detail Ledger for the year (0/YY to 14/YY to include all entries for the year) (REP). 7. (Optional) Print all Journals for the year (i.e. 0/YY to 14/YY) (REP). END OF OPTIONAL REPORTS 8. Print Financial Statements for the last month of the year for the Auditor (i.e. 14/YY to include year-end adjustments) (REP). 9. Perform Year-end Closing (MISC). Upon completion, open (MAINT) Control. Verify the new current year change. Check Control Dates. Make sure the Current GL Period is in the new fiscal year. Print the 00/YY OBACT Journal (REP). 10. Run Checkout for the zero period for the new year (0/YY) (MISC). 11. Print Opening Trial Balance for the zero period of the new year (i.e. 0/YY). Verify all Revenue & Expenditure accounts are 0. (If your Trial Balance report is set to exclude accounts with a zero balance, deselect this box.) 12. Print a Financial Statement for the zero period of the new year (i.e. 0/YY) (Optional). 13. Review the Financial Statement. Check the Balance Sheet account balances match the report printed on step 8. The Fund Balance will reflect net change of revenues and expenditures. 14. Review the Financial Statement budget amount against the approved budget for the new year. Check for parentheses in the BUDGET column to help locate possible errors. Correct any budget errors in Budget Entry (DATA). **AFTER THE AUDIT HAS BEEN COMPLETED Civic Systems, LLC Page 25

General Ledger Fiscal Year-End Processing 15. When the audit is completed, enter the audit adjustments in the AUDIT journal, period 14/YY of the prior year, in Journal Entry (DATA). 16. Run Automatic Allocation (CASH ONLY) for 14/YY of the prior year (DATA). 17. Run Checkout for period 14/YY of the prior year correct any errors and checkout again before continuing. 18. Print a final copy of the Financial Statement for period 14 of the prior year (REP). 19. Print a final Detail Ledger for period 14 of the prior year (REP). 20. Run Recompute Beginning Balances (MISC). 21. Print the opening Trial Balance for the new year (i.e. 0/YY). 22. Review the Trial Balance. Match balances to the Financial Statement period in step 20 for the 14 th period. Civic Systems, LLC Page 26

General Ledger Fiscal Year-End Processing B. General Ledger Steps Checklist Year-End Steps (cont.) 1. Print all journals for the last month of the fiscal year-end. Review the journals and verify all data for Cash Receipts, Payroll, Accounts Payable, Accounts Receivable, and Utility Billing, etc. have been updated for the year. a. Select Reports Journals. b. Select the appropriate report from the drop-down menu for the report order definition that you desire. c. Verify period/report date(s). d. Click Print. e. Verify printer settings and click GO. 2. Finish the normal General Ledger steps for the last month of the year per the General Ledger Steps Checklist. 3. Run Automatic Allocations for period 14/YY. a. Select Data Entry Automatic Allocations. b. Verify the period date is 14/YY. Uncheck the Payables Allocation, if applicable. c. Click GO. d. When the allocation is complete, click OK. e. Click Close. Update to the year you are closing 4. Run Checkout for period 14/YY correct any errors and run checkout again before continuing. a. Select Miscellaneous Checkout. b. Change the Check Through Period to 14/YY. c. Click GO. d. Verify printer settings and click Print. Civic Systems, LLC Page 27

e. If during the Checkout process you are told to recalculate: (1) Select Miscellaneous Recalculate. (2) Click GO. (3) At the prompt: Recalculate Completed, click OK. General Ledger Fiscal Year-End Processing 5. Print a Working Trial Balance for 14/YY for the auditor and/or export the Trial Balance to a file. a. Print a Working Trial Balance. (1) Select Reports Working Trial Balance. (2) Change GL Period to Update to correct year (3) Click Print. (4) Verify printer settings and click GO. b. To export a Trial Balance to a file for the auditor: (1) Select Miscellaneous Export Amounts. (2) From the drop-down, select the applicable report. If you need assistance initially setting up this file, call Support. (3) Verify the accounting period. Civic Systems, LLC Page 28

General Ledger Fiscal Year-End Processing (4) Verify file path of export file at the Miscellaneous tab. Be sure to add.csv to the end of the file name. (5) Verify the data to export at the Fields tab. (6) Click Preview to generate the file and create a report to preview. 6. Print Detail Ledger for the year (0/YY to 14/YY to include all entries for the year). a. Select Reports Detail Ledger. b. Change the report date(s) to encompass the entire year. (1) Click the ellipsis button. Using the small left and right arrow buttons, expand the date range to include the entire fiscal year. c. Click Accept. d. Click Print. e. Click GO. Civic Systems, LLC Page 29

General Ledger Fiscal Year-End Processing 7. Print ALL Journals for the year (i.e. 0/YY to 14/YY to include year-end adjustments). (Optional) a. Select Reports Journals. b. Select the report from the drop-down menu for the desired report order definition. c. Customize the report date(s) to encompass the entire year. Click the ellipsis button. Using the small left and right arrow buttons, expand the date range to include the entire fiscal year. d. Click Print. e. Verify printer settings and click GO. 8. Print a Financial Statements for the last month of the year for the Auditor (i.e. 14/YY to include year-end adjustments). (If you customarily use Reports, Batch Reports, you may wish to print your reports as a group and control the current accounting period from Maintenance Control). a. Select Reports Financial Statement. b. Select desired report from the drop down menu. c. Change GL Period to. Update to correct year d. Click Print. e. Verify printer settings and click GO. f. Repeat as necessary. 9. Perform Year-End Closing. This routine will close out all revenue and expenditure accounts and create beginning balances for balance sheet accounts in the new fiscal year. Note: This can be done prior to audit. Audit entries do not need to be entered prior to performing year-end close. a. Select Miscellaneous Year-end Closing. The following warning will appear: Civic Systems, LLC Page 30

General Ledger Fiscal Year-End Processing b. Click GO. Should show the year you are ending. Should show the new year end date. c. Click Yes, at the prompt. d. Upon completion the system will prompt: e. At Maintenance Control, the new fiscal year should appear. Change the Current GL Period if appropriate. f. At this time you may want to print the OBACT Journal. Select Reports Journals. Change accounting period to reflect 00/YY as shown, and select the OBACT Journal. Code at Selection Criteria and click Print Civic Systems, LLC Page 31

General Ledger Fiscal Year-End Processing 10. Run Checkout for the zero period of the new year (0/YY). a. Select Miscellaneous Checkout. b. Change Current Year to 0/YY. c. Click GO. d. Verify printer settings and click Print. e. Analyze and correct reported issues. f. Correct any errors until the Checkout report reads - NO ERRORS FOUND. g. If during the Checkout process you are told to recalculate: (1) Select Miscellaneous Recalculate. You must check the boxes to recalculate. (2) Click GO. (3) At the prompt: Recalculate Completed, click OK. 11. Print Opening Trial Balance for the zero period of the new year (i.e. 0/YY). a. Select Reports Trial Balance. b. Change GL Period to. c. Click Print. d. Verify printer settings and click GO. e. Verify all Revenue & Expenditure accounts are 0. 12. Print Financial Statements for the zero period of the new year (i.e. 0/YY). (Optional) a. Select Reports Financial Statement. (If you customarily use Reports Batch Reports, you may wish to print your reports as a group and control the current accounting period from Maintenance Control.) b. Select desired report from the drop down menu. Update c. Change GL Period to. d. Click Print. e. Verify printer settings and click GO. f. Repeat as necessary. Update Update 13. Review the Financial Statement for balance sheet accounts. Match balances to the Financial Statement printed in step 8 for the 14 th period. Check that the Balance Sheet account balances match the report. The Fund Balance will reflect net change of revenues and expenditures. 14. Review the Financial Statement budget amounts against the approved budget for the new fiscal year. Correct any budget errors in Budget Entry. Civic Systems, LLC Page 32

General Ledger Fiscal Year-End Processing **AFTER THE AUDIT HAS BEEN COMPLETED** 15. When the audit is completed, enter the audit adjustments in the AUDIT journal. Enter these entries in period 14/YY of the fiscal year under audit. a. Select Data Entry Journal Entry. b. Select Audit from the Journal Code drop-down listing. c. Enter 14/YY at Period. d. The following prompt will appear. Click Yes. e. Click Accept. f. Enter audit entries. 16. Run Automatic Allocations for 14/YY of the prior year. (If Automatic Allocation is not part of your Steps Checklist routine, skip this step.) a. Select Data Entry Automatic Allocations. b. Verify the period date is 14/YY. Uncheck the Payables Allocation, if applicable. Year ending c. Click GO. d. When the allocation is complete, click OK. e. Click Close. Civic Systems, LLC Page 33

General Ledger Fiscal Year-End Processing 17. Run Checkout for period 14/YY of the prior year correct any errors and run checkout again before continuing. a. Select Miscellaneous Checkout. b. Select 1 under Prior / Future Year(s). c. Click GO. d. Verify printer settings and click Print. e. Analyze and correct reported issues. f. Correct any errors until the Checkout report reads - NO ERRORS FOUND. 18. Print a final copy of the Financial Statement for period 14 of the prior year. a. Select Reports Financial Statement. (If you customarily use Reports, Batch Reports, you may wish to print your reports as a group and control the current accounting period from Maintenance Control.) b. Select desired report from the drop down menu. c. Change GL Period to. d. Click Print. e. Click GO. f. Repeat as necessary. 19. Print a final Detail Ledger for period 14/YY of the fiscal year under audit. a. Select Reports Detail Ledger. b. Change the report date(s) to encompass the entire year. (1) Click the ellipsis button. Using the small left and right arrow buttons, expand the date range to include the entire fiscal year. Change to encompass the entire fiscal year c. Click Print. d. Verify printer settings and click GO. Civic Systems, LLC Page 34

20. Reprint the opening Trial Balance for the new year (i.e. 0/YY). a. Select Reports Trial Balance. b. Change GL Period to. c. Click Print. d. Verify printer settings and click GO. General Ledger Fiscal Year-End Processing New year 21. Review the Trial Balance. Match balances to the Financial Statement printed in step 18 for the 14 th period. C. Other Year-End Tasks 1. At this time, if you haven t already done so, close prior year periods: a. Select Miscellaneous Close GL Period. b. Choose the appropriate period from the drop down box (i.e. 14/YY). Update to proper periods c. Click GO. d. At the prompt: Current GL period changed to #/##, click OK. e. Click Close. 2. Delete Detail (Optional). As your database grows, you may find a need to delete history. The number of years of history is established in Control Maintenance. To change the years of detail, period summary, or annual summary, open Maintenance Control. Change the settings in the History box. Generally, two years of history, three years of period summary, and five years of annual summary transactions are kept. It is all right to increase the number of years, if you so desire. a. Delete Transactions. (1) Select Miscellaneous Delete Transactions. The number of years of history, period summaries, and annual summaries will appear on the screen. Clicking GO will perform the following tasks: Summarize the transaction detail into a single transaction for each account in each period for the specified years (period summary). Summarize the period summaries into a single annual transaction for each account for the specified years (annual summary). Delete transactions prior to the first date listed in the Years of Annual Summary to Keep field. Summarize transactions tied to each grant if the transaction period falls within the specified grant dates. Summarize transactions tied to activities. Civic Systems, LLC Page 35

General Ledger Fiscal Year-End Processing (2) If the number of years listed is acceptable, click GO. (3) Click Yes to begin deleting transactions. (4) Click OK when the Finished box appears. (5) Click Close. b. Delete Budget Transactions (Optional). (1) Select Miscellaneous Delete Budget Transactions. The number of years of history, period summaries, and annual summaries will appear on the screen. Clicking GO will perform the following tasks: Summarize the transaction detail into a single transaction for each account in each period for the specified years (period summary). Summarize the period summaries into a single annual transaction for each account for the specified years (annual summary). Delete transactions prior to the first date listed in the Years of Annual Summary to Keep field. Summarize transactions tied to each grant if the transaction period falls within the specified grant dates. Summarize transactions tied to activities. (2) If the number of years listed is acceptable, click GO. (3) Click Yes to begin deleting transactions. (4) Click OK when the Finished box appears. (5) Click Close. Civic Systems, LLC Page 36