'Closing' refers to the process of finalizing an entity's financial information and creating reports after a specified accounting period has ended. Closing procedures are performed on an interim and year-end basis to keep accounting data organized and ensure all transactions for the period are properly accounted for and recorded on a timely and accurate basis.
The Office of the University Controller requires Constituent Reporting Units (CRUs) to perform closing procedures at the following frequencies:
- Interim Close Key fiscal officer responsibilities included in interim close procedures include reviewing IU Accounting Standards, reviewing system and user roles, financial statement variance analysis, balance sheet balance substantiation, posting and reviewing accruals, and account reconciliation.
- Year-End Close Key fiscal officer responsibilities included in year-end close procedures consist of interim closing activities in addition to specific year-end items such as org reversion, covering cash balances, and sub-certification.
Both interim and year-end closing procedures are accompanied by a checklist to be submitted by the CRU alongside required materials.
Closing Standards provide detailed information on closing procedures such as analysis and substantiation of financial information as well as requirements and best practices related to those procedures.
A CRU is determined by meeting a $35,000,000 threshold in revenues, expenses, or net assets for a minimum of 2 consecutive years. A CRU will be removed from the list if the threshold is not met for 3 consecutive years. Refer to the list of CRUs here.
A detailed closing calendar is shown below to note when all procedures should be completed: