We are currently in the lapse period for FY25 state funds. Below is a quick overview of what this means and how to ensure accurate accounting during this important timeframe:
- The lapse period, established by the State of Illinois Comptroller, occurs annually during July and August (the first two months of the new fiscal year).
- It allows state agencies to finalize all outstanding accounting issues on the prior fiscal year’s state fund before it is officially terminated on August 31.
- During the lapse period, both the prior fiscal year’s state fund (100025) & the current fiscal year’s state fund (100026) are both open.
- Since both funds are open at the same time, it increases the risk of posting expenses to the wrong fund.
- Thus, it is important to regularly reconcile your state fund activity during this period of time to ensure your expenses are posting to the correct state fund.
- To help prevent the miscoding of expenses, remember the following:
- The 100025 state fund can only be used for goods or services which were received or contracted for on or before June 30.
- The 100026 state fund can only be used to pay for goods or services which were received or contracted for on or after July 1.
Once August business closes, the 100025 state fund will be officially terminated, and no further adjustments will be allowed.
Contact
For further details, search on “State Funds” in the Search box of the Business & Finance Who to Ask list and reach out to the applicable subject matter expert on this topic.
