Fiscal Year-End Close

Each year, the University of California (UC) prepares annual financial statements that reflect the institution’s financial position. UC Campuses, including UCSF, and the UC Office of the President contribute key financial data used in the University of California's audited annual financial report. These statements support informed decision-making by stakeholders and demonstrate the University of California's accountability to the citizens of California as a public institution.

UCSF fiscal year-end close procedures prepare the financial records for the annual financial statement reporting of all the activity that occurred during the fiscal year and the balances as of the end of the fiscal year period. The fiscal year period for University of California begins on July 1, and ends on June 30.

Fiscal year-end close procedures begin after June 30 and continue until consolidated financial information for UCSF is finalized and the reporting requirements of the University of California Office of the President and external auditors are met. Refer to the Financial Close Calendar for key dates and deadlines.

The final step of the fiscal year end close procedures is to close all income statement accounts into net position. Income statement accounts record current fiscal year activity and are zeroed out and transferred to the balance sheet at the end of each fiscal year in order to begin recording activity for the subsequent fiscal year period. 
 

Departments are responsible for maintaining timely, accurate and complete financial records in the general ledger, in compliance with applicable accounting standards, regulations and University policies. 

This includes:

• Reviewing financial transactions for accuracy and completeness
• Ensuring revenue and expenses are recorded in the appropriate fiscal year
• Recording accruals for revenue earned, but not yet received as of June 30
• Recording accruals for expenses incurred, but not yet paid out as of June 30
• Following year-end deadlines as published in the Financial Close Calendar; this includes completing transactions, posting entries, reconciling financial data and submitting requested information or responding to year-end inquiries promptly  
• Participating in the annual fiscal year-end close presentation and training(s) hosted by the Controller’s Office

This letter certifies that the financial information which is incorporated into the financial statements and report is a fair representation and conforms to generally accepted accounting principles.

Who Must Certify

Vice Chancellors, Vice Provosts, Deans, and other designated senior leaders must complete a Fiscal Close Certification Letter annually. 

Fiscal Close Certifications provide assurance for the assertions made in the Campus Management Representation Letter to be signed each year by the Chancellor, Executive Vice Chancellor and Provost, Senior Vice Chancellor Financial and Administrative Services, Senior Associate Vice Chancellor and Chief Financial Officer, and the Associate Vice Chancellor and Controller for UCSF. 

Likewise, the Campus Management Representation Letters received from all the UC Campuses, provide assurance for the assertions made in the University of California Management Representation Letter signed by the UC Office of the President.  

The certification process supports the UCSF financial statements and provides assurance that financial information is complete, accurate, and compliant with applicable accounting standards and regulations.

Annual Timeline

• August: Certification letters distributed via email by the Controller via DocuSign
• September: Signed certifications due to the Controller’s Office
• September: Campus Management Representation Letter signed
• September: Certifications provided to external auditors

Certification Statements

Certifications made by senior management to the best of their knowledge and belief, include confirmation that:

• University policies and procedures have been followed
• Appropriate internal controls are in place and functioning
• Material transactions and liabilities have been properly recorded
• Known compliance issues have been disclosed
• Known fraud or suspected fraud has been reported
• Funds have been managed in accordance with applicable laws, regulations, grants, contracts, and donor restrictions
   

What does "to the best of my knowledge and belief" mean?

Certifiers are expected to disclose information they know or reasonably should know. The certification does not require absolute assurance or guarantee.

Is there a materiality threshold?

No. Departments should ensure all transactions are properly recorded. Materiality determinations are made centrally by the Controller's Office.

What should be accrued or deferred?

Expenses and revenues must be recorded in the fiscal year in which they are incurred or earned, regardless of when payments are made or received. The Controller's Office provides guidance on accruals and deferrals.

How should disclosures be made?

Any exceptions, compliance concerns, fraud allegations, or financial reporting issues must be disclosed in writing to the Controller.

What if there are campus-wide control weaknesses?

Certifications focus on the department's own operations and controls. Departments are responsible for appropriately using campus-wide systems and may note exceptions if needed.

Is there personal liability for signing?

The certification is based on good-faith representations. It is not a guarantee and does not create personal liability absent intentional misconduct or recklessness.

What due diligence is expected?

A recommended best practice is for leaders to meet regularly with their staff directly responsible for day-to-day operations of financial and accounting systems to discuss the topics outlined in the Fiscal Close Certification Letter. 

What happens if a certification letter is not signed?

In general, management is expected to exhibit leadership, responsibility and accountability. 

The lack of response is presumed to be indicative of a systemic exception in a particular area. The Controller will inform the Chancellor, proceed to evaluate the circumstances and determine the additional review or audit procedures that will be required. 

If there is a concern about signing the certification, a preferred alternative is to sign the certification subject to a specific exception or qualification. In such case, the Controller is responsible for further evaluating the nature of the qualification and determining whether or not additional procedures are required. 

What if a leader was appointed mid-year?

The certification still applies. Leaders should certify based on available information, discussions with staff, and any known issues requiring disclosure. Certifications cover an entire fiscal year period from July 1 through June 30. In addition, any subsequent events that relate to the fiscal year being certified must also be disclosed through the date that the certification letter is signed, typically in August.  

Additional Information

Departments should consult annual fiscal close instructions and attend the Controller's Office year-end presentations for current deadlines, procedures, and reporting requirements.