Blog

Year-End Close Reminder for Municipalities

May 15th, 2022 • Blog

Share:
Bridget Costello, MSA

Here, we have compiled a list to help municipalities prepare for year-end. If you have any questions on these items, please reach out to you auditor and they will be able to assist you.

Here are a few entries that should be made before the general ledger is closed for the year:

  • Circuit Breaker – 4th quarter receipts*
  • June OPEB interest/investment earning (balances per the actuary/bank/general ledger need to agree)
  • Warrants/accounts payable
  • Reserve for expenditures (General Fund and Enterprise fund(s))
  • Community Preservation Act fund balance reserves*

 

Here are a few areas you should review before closing the general ledger:

  • Review deficit balances in grant/Chapter 90 funds*
  • Ensure the ending balance in the Circuit Breaker fund does not exceed current year revenues*
  • Reconcile debt service activity to the Treasurer
  • Ensure the budgets balance
  • Ensure transfers balance
  • Ensure that due to/froms balance
  • All budgeted trust fund transfers have been made and balances reconciled to the Treasurer
  • Ensure Custodial Funds (previously referred to as Agency Funds) are classified in compliance with GASB 84 in the General Ledger

 

Here are a few areas where you will want to make inquires of outside parties:

  • Reach out to the Actuary to start OPEB valuation/update
  • Reach out to Retirement System to get timeline for their audit and valuation reports
  • Reach out to service organization to obtain SOC report covering through June 30th (if applicable)      

 

Lastly, here are a few other areas to work on pulling together for the audit:

  • Collector detail – run reports on June 30th
  • Police outside detail – run reports on June 30th
  • Compile invoices that were paid after the end of the fiscal year that relate back to the audit year for the year-end adjustment
  • Start pulling together fixed asset additions and disposals and send the fixed asset listing to departments to review
  • Prepare compensated absence (accrued sick and vacation time) listing as of June 30th
  • Prepare GASB 87 lease listing as of June 30th

 

*Specific to Massachusetts

Sign Up for Our Newsletter

Want to keep up-to-date on what's happening at Melanson and in the accounting world? Our newsletter offers tips and tricks for planning and preparation all year long.

Learn More About Melanson

As a privately-held regional public accounting firm, Melanson is committed to serving the greater New England area.
About Melanson

Inquiry