University Cash Carryforward Procedures for Appropriated Funds

Universities must obtain authorization from the Office of State Budget and Management to carryforward funds obligated in the current fiscal year to the next fiscal year. Fiscal year-end cash carryforwards for appropriated funds are recorded as expenditures in the current fiscal year and are posted to account 5389AA, Agency Carryforward. "AA" is agency defined and may be used to identify specific carryforward transactions. Cash carryforwards are receipted as revenues in the next fiscal year and are credited to account 4389AA, Agency Prior Year Carryforward.

Cash Basis Requirements - Appropriated Funds

Once authorized by OSBM, a budget transfer request is processed on OSBM's Budget Revision System as a BD606. This records the transfer of budgeted funds encumbered or obligated from the previous fiscal year to the current fiscal year.

Manual or system check(s) are written payable to the issuing agency. System checks must be issued by June 29. After June 29, cash carryforward checks are processed as manual checks in the AP module with an effective date of June 29. Agencies must submit a request to OSC to open the NCAS GED, so the manual check can be printed with June 29 date.  Agencies must also submit a manual disbursement journal in NCFS with June 29 date. The issuance of the cash carryforward is recorded as follows. XX represents the. agency ID number.

Comp Account Center DR/CR

• XX01 5389AA Detail Center DR

  XX01 111250 Fund to which cash automates CR

The check is deposited in the subsequent fiscal year and recorded as a cash receipt in BC with an effective date equal to the deposit date. The journal voucher to record the deposit must be keyed with a "21" in the third and fourth positions of the document ID. The amount of the carryforward should be included in the certified deposit amount for July. The entry to record the deposit follows. XX represents the agency ID number.

Comp Account Center DR/CR

• XX01 111270 Fund to which cash automates DR

  XX01 4389AA Detail Center CR

Accrual Basis Requirements - Appropriated Funds

Cash carryforwards receipted in July must be reversed on June 30, to properly reflect financial data under the modified accrual basis of accounting. Prior year cash carryforward reversals are processed on BC journal vouchers as closed period adjustments with an effective date of June 30. These journal vouchers require a "32" in the third and fourth positions of the document ID. The entry to record the reversal follows. XX represents the agency ID number.

Comp Account Center DR/CR

• XX01 4389AA Detail Center DR
  XX01 111230 1000 CR

Cash carryforwards must be reclassified on June 30, to convert financial data from the cash basis to the modified accrual basis of accounting. The reclassification is processed on a BC journal voucher as a closed period adjustment with an effective date of June 30. These journal vouchers require a "34" in the third and fourth positions of the document ID. The entry to record the accrual follows. XX represents the agency ID number.

Comp Account Center DR/CR

XX01 111230 1000 DR
XX01 5389AA Detail Center CR