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

Video Transcription

Video Summary

This training covers year-end accounts payable procedures for school districts. It explains fiscal year terminology and notes that many systems use the first year of the fiscal year, while accountants often refer to the last year, which can cause confusion. The presenter defines a fiscal year and explains why the district’s fiscal year runs from September 1 to August 31.<br /><br />A major focus is expenditure recognition under modified accrual accounting: expenditures are recorded when goods or services are received, not when invoices arrive. The video contrasts this with prepaid items, which are paid in advance but benefit the new fiscal year, such as textbooks, supplies, insurance, software licenses, or ASB uniforms. These are recorded as assets in GL 430 and later expensed in the proper year.<br /><br />The training also covers expenditure accruals after year-end, including invoices received late, construction estimates, retainage, travel claims, and purchasing card charges. It explains reversing entries, handling invoices without exact amounts, and the importance of deadlines, especially the district’s hard October 25 closing date.<br /><br />Finally, it discusses how to review and roll over purchase orders, including blanket POs, personal service contracts, long-term contracts, and capital projects.

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