OAKS FIN Year-End Close

Overview, Benefits, and Timeline of Events

Applicable or Related Code Sections

ORC Section 126.21 (A)(2) - Accounting duties of director of budget and management

Overview of Year End Close

OBM State Accounting with the OBM Requirements and Configuration Management (RACM) group are responsible for maintaining the financial modules of the state's accounting system known as Ohio Administrative Knowledge System (OAKS). As part of this process, there is an annual maintenance that occurs at fiscal year-end. This process, known as "year-end close", completes the cash-basis accounting records for the fiscal year, finalizes open entries in the OAKS FIN modules, and populates the new appropriations for the upcoming fiscal year. The entire execution plan for this process takes about three months to perform and efforts are taken to minimize the impact to the business. Access to OAKS FIN is restricted for a minimum of six working days to complete the necessary procedures.

Purpose of Year End Close Process by OAKS Module

Accounts Receivable and Billing Modules

Open revenue transactions must be posted to the general ledger to ensure revenue is recognized in the correct period.
All pending items must be corrected and posted prior to year-end close; and
All deposits must be processed and approved prior to year-end close.

Accounts Payable Module

All open vouchers must be resolved and paid for proper financial reporting; and
Unmatched or incomplete vouchers need to be completed or removed to avoid an accumulation of pending entries in the accounting system.

Purchasing Module

All requisitions using current year budget must be sourced to purchase orders before year-end close; and
Purchase Orders referencing current year budget should be dispatched prior to year-end close.

Asset Management

Incomplete asset management entries need to be resolved for proper financial reporting.

Travel and Expenses Module

All open authorizations and expense reports must be resolved for proper financial reporting.

Budget and Planning Module

After all operational entries are complete for the fiscal year, new appropriations levels, as authorized by the state legislature, are populated in the accounting system for use on July 1.

State Financial Reporting

Resolution of open items and incomplete entries in the OAKS FIN modules during the closing process minimizes the number of adjustments required to either record or eliminate these transactions during the financial reporting process; and
After all operational entries are complete for the fiscal year, an image of fiscal year cash transactions and encumbrances are made to initiate the state's annual financial reporting process.

General Ledger Module

After all operational entries are complete for the fiscal year, the cash-basis accounting records are closed for the fiscal year through one large journal entry that "zeroes" the appropriate accounts in the ACTUALS ledger. This closes out the revenue, expense and transfer accounts for the fiscal year to the fund balance for each fund; and
After all operational entries are complete for the fiscal year; the remaining balance of the general revenue fund (GRF) is available to transfer to the budget stabilization fund (rainy day fund) as necessary.

Timeline of Events

OBM State Accounting and the OBM RACM group execute the year end close using the following high level process:

Activity	Date
OBM State Accounting sends a year-end communication memo to state agencies outlining key dates and processes for year-end close. OBM State Accounting runs queries in various OAKS modules and alerts agencies of open items. RACM works with the managed service vendor to create the year-end test environment and review security procedures.	April
OBM meets with selected state agencies to coordinate activities, primarily related to interface files with RACM. RACM works with the managed service vendor to finalize security scripts and year-end close execution plan. OBM State Accounting performs preliminary cleanup of various modules with open or unbalanced entries.	May
OBM State Accounting coordinates Controlling Board activities for the final meeting in June. Per dates established in the year-end communication memo calendar, security roles for central security designees and end users are turned off starting the third week of June. OBM State Accounting coordinates June payroll journals and monitors cash availability.	June
OBM State Accounting and RACM monitor all general ledger balances including the general revenue fund. RACM arranges interface payment files with agencies required to make payments the last week of June. OBM State Accounting will delete pending entries in the various OAKS FIN modules as appropriate. RACM coordinates with the Treasurer of State for cut off of revenue on last working day of June. OBM State Accounting and RACM coordinate with DAS Human Resources Division to process the final monthly and biweekly payrolls so they are posted in the correct fiscal year. RACM copies Actuals Ledger on June 30 to capture ending fund balances before transactions begin in the new fiscal year. OBM State Accounting and RACM perform a system backup and run final close procedures. The next year appropriations are populated and capital PO rollover is run every other year.	Late June
RACM coordinates security access restoration and OBM State Accounting communicates OAKS availability. RACM processes held interface files and lockbox transactions.	Early July