Clearing accounts (68 accounts) are designated to be a holding area for funds when it is unclear which operating account is appropriate to use for a given transaction. It is appropriate for an item to remain in a clearing account for a period up to 30 days. This should provide sufficient time for each clearing account manager to identify the appropriate operating account for a transaction, and transfer the funds to that operating account. Items remaining in clearing accounts over 30 days should have the approval of UCO.
Income and expense activity in clearing accounts is reclassified to the university balance sheet for inclusion on the annual financial report. This reclassification is accomplished via a period 13 adjusting entry posted in the clearing accounts by UCO after Final Close. As a result, no entries are allowed in clearing accounts after Wednesday, July 12, 2023.
Units are required to move the maximum number of transactions possible out of the clearing accounts to their appropriate operating account by Friday, June 30, 2023 using either current year or year-end documents.