AP Badge #14 - Fiscal Year End-AP Badge #14 Recording

Video Transcription

Video Summary

The transcript explains year-end accounts payable procedures for school districts, focusing on fiscal year 2027–28. It defines common fiscal year terms and clarifies that districts often use the last year (e.g., FY28) while systems may use the first year (FY27). It reviews fiscal year-end accounting rules: expenditures are recognized when goods or services are received, not when invoices are paid.  <br /><br />Key topics include prepaid items, which are paid before year-end but used later, such as next-year supplies or multi-year insurance policies. These are recorded as assets in GL 430 and reversed in the new fiscal year. The presentation also covers expenditure accruals, including invoices received after year-end for services performed before year-end, estimates for unbilled construction work, retainage held by the district, and late purchasing card or travel claims.  <br /><br />Finally, it explains how to handle purchase orders at year-end: close outdated POs, roll over ongoing contracts, and decide how to treat long-term agreements and capital projects. The process must be completed within the district’s hard deadline of October 25 for financial reporting.

Keywords

year-end accounts payable

fiscal year

modified accrual accounting

expenditure recognition

prepaid items

expenditure accruals

purchase order rollover

blanket purchase orders

school district accounting

accounts payable

year-end procedures

fiscal year 2027-28

purchase orders

school districts

financial reporting deadline

general ledger 430