Carry Forward

Introduction

Each year, at the end of the fiscal year, accounting goes through a process called “carry forward”. It affects all Projects that are on the fiscal year cycle. Generally, these are departmental, gift, etc. funds. Extramural funding does not usually have a fiscal year. This is done because campus accounting treats the affected Account Fund combinations as different entities in each fiscal year. Because central accounting is authoritative, GUS mirrors the operation. The carry forward process typically starts in late June and continues into August.

Summary

The basic carry forward process consists of five steps.

Screencast Overview

  1. Planning: Decide how to organize the projects in the new fiscal year This may be a simple duplication of the current projects. However, it may be more desirable to create new projects rather than to duplicate the current project. GUS provides the ability to preset choices so that they may be automatically carried out at the appropriate time.

    Screencast for Step 1

  2. Create new fiscal year projects: Old projects will be put on hold during the transition between the old fiscal year and the new fiscal year. It is at this point that new fiscal year projects are made and set to ‘active’.

    Screencast for Step 2

  3. Change links: Depending upon which portions of GUS are being utilized using, there may be payroll, recharge or purchasing activities which are related to projects in the old fiscal year. These may need to be changed to relate to projects in the new fiscal year. For Personnel, distributions from the old fiscal year may need to be carried forward into the new fiscal year.

    Screencast for Step 3

  4. Move liens/unreconciled expenses After the June Final ledger has been released the old fiscal year projects are reconciled. If there are remaining unreconciled expenses or outstanding liens in the old fiscal year, they may need to be moved into the new fiscal year. If there are balances remaining in the old fiscal year, they will need to be posted into the new fiscal year along with any new funding that received. GUS does not carry forward the balance automatically as some departments opt to sweep certain funds at fiscal close.

    Screencast for Step 4

  5. Close old projects Once all of the unreconciled transactions, outstanding liens and balances have been dealt with, the project status in the old fiscal year project is changed to “Closed”.

Attention

You must have Budget_Mgr or Full_Access permissions in order to use the Carry Forward Assistant.

Attention

You don’t have to wait until you have reconciled your June ledgers to do the first three carry forward steps. Do everything through step 2 before you post any data into GUS in the new fiscal year.

Process

Opening the Carry Forward Assistant by going to Utilities -> Carry Forward

carryforward-menu

The Carry Forward Assistant window has five tabs:

carryforward-overview

Chronologically, these steps should occur:

Before fiscal close Step One - Planning
As close to fiscal open as possible Step Two - Create New FY Projects
After fiscal open Step Three - Change Links
After June final has been reconciled Step Four - Move $
After all of unreconciled transactions, outstanding liens and balances have been dealt with Step 5 - Close Projects

Overview

The Overview tab contains a brief summary of the carry forward process and the steps to follow.

Step One - Planning

Clicking on this tab will display all of the Projects in the database which are associated with the old fiscal year. If there are already projects for the new fiscal year they will also be displayed (in blue).

carryforward-step1

Data columns to the left of the check boxes show information about the displayed projects. Data columns to the right of the check boxes show information about what GUS is expecting to do with the displayed projects.

Initially GUS assumes that any Active project in the old fiscal year will have its status changed to CF-Hold. Any new fiscal year project with status Pending will be made Active.

To recreate an old fiscal year project for use in the new fiscal year, check the box in its row. Check all of the boxes by option-clicking (Mac) or alt-clicking (Windows) one of the checkboxes.

When an old fiscal year project is checked, the CF-Action will change from “Status -> CF-Hold” to “Status -> CF-Hold, Duplicate”. This means that the project status on the old fiscal year project will be changed to CF-Hold and that the project will be duplicated for use in the new fiscal year. The new fiscal year project will be identical to the old fiscal year except for its fiscal year and its award and funding dates.

Once the actions for each of the projects has been decided, the ‘Activation Method should be determined’.

Choosing the ‘Manual’ radio button GUS will not make any changes until someone logs into GUS to initiate the carry-forward (Step Two- Create New FY Projects). Manually doing this portion of the carry forward will typically take only a few minutes.

If ‘Automatic’ is selected (with a corresponding future date), GUS will perform the changes to old projects and creation of new projects the first time someone logs in on or after the target date.

For example, if plans are made (Step One - Planning) on June 15 and the automatic activation date is set to July 01, then the first time a user logs in (on or after that date) all of the preset CFActions will be performed.

Step Two - Create New FY Projects

Attention

This needs to be done as close to the beginning of the new fiscal year as possible. This is important because, as of July 1, you will need a place to post the financial transactions for the new fiscal year.

If new fiscal year entries are posted into the old fiscal year projects, they will be posted into the wrong fiscal year. Each mistaken posting will then have to be carried forward into the new fiscal year. This will create more work as well as cluttering up the database.

If carry forward actions from Step 1 were set to the ‘automatic activation method’, the new fiscal year projects will be created when someone logs into the database on or after the trigger date.

If the ‘manual activation method’ was selected, projects will not be created until someone clicks on the ‘Create Projects’ Now button.

In either case, a message box will briefly appear indicating that the preset actions are being performed.

Typically this process will take only a few minutes.

Step Four - Move $

Attention

Step four should not be started until after you have reconciled to the June Final ledger.

Move Unreconciled expenses and Outstanding Liens

After the June Final ledger has been reconciled, there may be outstanding liens and unreconciled expenses from the previous fiscal year that must be moved to the new fiscal year. GUS will display all of the account-fund combinations associated with the old fiscal year. For combination will display the number of Projects, the reconciled balance, an Outstanding Liens total and an Unreconciled expenses total.

carryforward-step4

Note

When the Outstanding Liens and Unreconciled totals are zero there is nothing to move.

If no balance is shown for an Account-Fund line, double click on that line and GUS will display totals for all of the Projects associated with that Account-Fund pair.

carryforward-step4-accountfund

An Unreconciled balance and the number of transactions that make up that balance will be displayed for each project. All transactions may not need to be moved into the new year. Especially if it is known that certain transactions will never hit future ledgers. For that reason the transaction count is split between the number of transactions which have not been moved and the number which have been moved. Outstanding Liens are displayed similarly.

If there is no UnReconciled or Outstanding Lien balance for a Project then there is nothing for to be done. If there is a balance then double-click on the project line to see the individual transactions.

carryforward-step4-unreconciled

Tip

Note that there are two tabs; one for UnReconciled Expenses and one for Outstanding Liens. You will need to look at both tabs before you are done.

Also note that the old fiscal year project is displayed as the ‘Source Project’ at the upper left and that there is a ‘Destination Project’ on the upper right. The destination project may be changed to another project as long as it has the same account and fund number. Allowable options will be displayed in the ‘Destination Project’ pulldown.

As long as there is a project in the new fiscal year which matches the old fiscal year project, GUS will default to choose the same project code.

Examine each of the transactions to be sure that those are the ones to be carried forward. Transaction details can be seen by double-clicking on the transaction.

To carry transactions forward either command-click (Mac) or control-click (Windows) on one or more of the transactions. Selected transactions are highlighted with a salmon or dark-blue background. The line Status should also change to ‘Selected’.

Click on the ‘Carry Forward’ button.

When the carry forward is complete the lines will change to a normal (white or black) background and the line Status column will show that the transactions have been carried forward.

Repeat this process with the Outstanding Liens.

carryforward-step4-liens

Repeat this process for all other Projects associated with this Account-Fund combination.

Allocate funds into the new fiscal-year Project.

When the new-fiscal year carry-forward balance and allocations are known, open the Project setup form for the new fiscal-year Project. Go to the ‘Budget Information’ tab and enter the funds in the ‘Project Increments’ area. For clarity we recommend that entering the carry forward balance and the new allocations as separate increments with meaningful descriptions; e.g. something like “Carry forward from 15-16” and “Budget Allocation for 16-17”.

When these steps have been completed for all of fiscal-year Projects the carry forward is done.

Step 5 - Close Projects

The carry forward is now complete. To wrap up, close out the previous fiscal year project so that only the current project shows up in the new fiscal year. Under Current Project Status, select CF-Hold to filter the projects with CF-Hold status, then select “Closed”, then “Change Proj Status”

carryforward-closingprojects

FAQ

Does the Carry Forward utility carry forward balances?

No. This is done manually. We suggest that in the new project, creating two carry forward lines in the project increments:

  1. the balance from the current FY from Accounting (found in June ledger)
  2. the new appropriation for the new FY (found in July ledger)

Does the Carry Forward utility carry forward cost centers?

No. This is done manually.

How do mid/late June expenses affect the carry forward?

It shouldn’t. If mid/late June expenses are anticipated to hit the June ledger, continue normally with the carry forward utility process. If mid/late June expense is anticipated to hit the July ledger, the Step 4 - move $ tab will move all of the expenses from the old fiscal year to the new fiscal year.

Attention

Having two open same-name projects with two different fiscal years could be noisy and be prone to errors for users who want to post expenses to that project