Did you know that we are in the midst of the lapse period for state fund reporting? To ensure proper accounting and financial reporting during the lapse period, keep the following points in mind:
- The lapse period occurs during the first two months of each new fiscal year (i.e., July 1 through August 31).
- During this time frame, the primary state fund for both the prior fiscal year (100023) & current fiscal year (100024) are open.
- Since both funds are open at the same time, it increases the risk of posting expenses meant for one fund to the other, and vice versa.
- To help prevent the miscoding of expenses, remember the following:
- The 100023 state fund can only be used topay for goods or services which were contracted for or received on or before June 30.
- The 100024 state fund can only be used to pay for goods or services which were contracted for or received on or after July 1.
- Once August business closes, the 100023 state fund will be terminated, and no further corrections or adjustments involving that fund will be allowed.
- This is why it is so important to perform a detailed reconciliation of your unit's state C-FOAPALs before the close of August business. This will help ensure that any erroneous transactions are identified and reclassified in Banner before the end of the lapse period on August 31.
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For questions related to this topic, refer to the State Funds section of UAFR's Who to Ask list.
