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Gadsden State Community College

Financial Services

Year-End Procedures

The fiscal year of the College begins October 1 and ends September 30.  At the end of the fiscal year, the financial records of the school are closed and financial statements are prepared.  The reports required are processed in the Financial Services division; however, it is important that financial transactions be recorded in the correct fiscal year.


    Goods or services received within a fiscal year are to be paid for within that same fiscal year.  This includes employee travel, which takes place during the fiscal year.  This applies also to budgets of which the fiscal year differs from the fiscal year of the College.  For example:  a budget's fiscal year is October 1 to September 30.  That budget would need to submit invoices for items received in September for payment to the Accounts Payable Office within the month of September.  Invoices must be submitted early enough for payment to be made in the month of September.  All budgets must comply with the fiscal year policies of the College.  Items received in one fiscal year and submitted to the Accounts Payable Office for payment in the following fiscal year are considered a violation of Generally Accepted Accounting Principles; therefore, a completed justification form is required in order to be processed for payment.


     If it is known that items received in the current fiscal year will not be invoiced until the next fiscal year, the Budget Manager can contact the Director of Financial Services so that she may accrue the items.  A fund two budget can be accrued if it does not end on September 30.  If an item has been accrued, a completed justification form is not necessary.


    Approval of purchase orders is discontinued around the middle of August except for the Cabinet member's Offices.  The President of the College decides the date for each fiscal year.


    Unpaid purchase orders carry over into the next fiscal year unless the Purchasing Agent is notified to cancel the purchase order.  If an activity is taking place the first week of October, the purchase order should be requested in September.


    Salaries and benefits paid with funds 1 and 3 are posted to the current budgets through the September payroll. 

    Salaries and benefits paid with fund 2 are posted to the current budgets through the September payroll.


    To insure that transactions are recorded in the proper fiscal year, a year-end schedule is sent to budget managers in August.  Budget managers should carefully review and adhere to the schedule.  In September of each year, a memorandum detailing year-end procedures is sent to all employees.  Please read the memorandum and be aware of the procedures.