Overview
Month-end procedures are tasks performed every month (or period) prior to and following the closedown of the relevant CUFS modules (e.g. the General Ledger).
CUFS modules are 'closed down' for each period as this provides a clear "cut-off" point to review (or to report on) the financial position of the department/University.
It is good practice to closedown financial systems for each period to allow the institution to compile its management accounts (e.g. showing the actual expenditure v. budget) to assess its financial position. Therefore, month-end procedures will involve running reports to check transactions and balances, as well as preparing management accounts to assess the financial position of the Department.
Departments should ensure that a member of staff is responsible for ensuring month-end procedures are completed - typically the Departmental Administrator.
The benefits to Departments of month-end procedures include:
-
Providing a cut-off point on which to report on the financial position of the department. This is essential for accurate management reporting.
-
Helps to ensure transactions/invoices are processed in the correct GL period.
-
Prevents backposting of transactions by closing off earlier periods so previously reported financial information is not affected.
-
Improving your efficiency by routinely completing pre-planned procedures to a set timetable.
-
Helps with the preparation of your department's year-end accounts.
-
Helps to improve the University's financial position by:
- allowing good quality management information to be produced for better decision-making
- for collecting debts from our customers more quickly
- banking receipts more promptly
This guidance sets out the key procedures that departments should be undertaking each month, analysed within each CUFS module. It has been prepared in the context of the University's overall month-end timetable.
It provides a summary of the general departmental month-end procedures. It is intended to be flexible and departments may wish to amend and add to these procedures based upon their own organisational requirements. As such these pages only provide a guide of minimum best practices for departments and do not represent a definitive list of month-end procedures.
This guidance should be used together with the Finance Training Manual 'How to Run Month-End', which expands upon these instructions to include the relevant CUFS reports.