Fiscal Year 2006-2007 Year-End Accounting of Clearing Funds

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The following provides illustrations of year-end accounting entries for clearing funds. Examples use Chancellor's Office Budgeted Operation Fund (001005). ANY appropriate non-clearing fund may be used to clear Clearing Fund balances at year end.

For Operating Ledger account codes

1. If fund has both income and expense activity
   1. Reclass expense to income OR

   2. Reclass income to expense so that each account type nets to zero
2. If fund has year-end expense balance
   1. Credit expense account code in clearing fund and debit prepaid expense in non-clearing fund
      1. Dr 001005 A50xx $100
      2. Cr 095xxx 28999 $100
3. If fund has year-end revenue balance
   1. Debit revenue account code in clearing fund and credit undistributed income in non-clearing fund
      1. Dr 095xxx 0xxxx $100
      2. Cr 001005 B5xxx $100

1. For General Ledger account codes

1. If clearing fund has Account Payable balance at year end, the balance must be reclassified to a non-clearing fund using account code B0103, "Invoices Payable Clearing Fund Reclass".
   1. Debit to Clearing Fund B0103, credit to appropriate non-clearing fund B0103
      1. Dr 095xxx B0103 $100
      2. Cr 001005 B0103 $100
2. If clearing fund has Accounts Receivable balance at year end, the balance must be cleared to a non-clearing fund using the appropriate Accounts Receivable account code.
   1. Credit to clearing fund Accounts Receivable, debit to appropriate non-clearing fund, same Accounts Receivable account code
      1. Dr 001005 A3xxx $100
      2. Cr 095xxx A3xxx $100

2. Indirect Cost Recoveries

1. If Indirect Cost Recovery clearing fund has balance at year end, the balance must be cleared to a non-clearing fund using the F&A Cost Recovery income account code.
   1. Debit to clearing fund income account code, credit to non-clearing fund income account code
      1. Dr 095xxx 03400 $50
      2. Cr 001005 03400 $50