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Year-End Closing Process

 

Accruals and Deferrals for Self-Supporting Departments

Various departments conduct special programs that may begin before or soon after the start of the new fiscal year (July 1). In some cases, payment for these activities may be received in advance and related expenses may be paid either in advance or following the completion of the program. Generally, it has been the University’s policy to recognize income and expenses evenly over the duration of these programs. Using accounting terminology, revenues or expenses are “deferred” if they are received or paid in advance and apply to the subsequent fiscal year. That portion of revenues or expenses not yet received or paid are “accrued” if they apply to the current fiscal year.

Each year deferrals and/or accruals must be requested from the Director of General Accounting by submitting a written request including the following information:

Department name

Requests lacking such documentation will not be processed.

The General Accounting Department will review the accrual and deferral requests to determine materiality and appropriateness. This process can only be used for the proper matching of revenues and expenses and is not to be used to carry forward surplus or deficit balances.

For additional information contact Lee Edwards at (412) 624-2762.

 

Compensated Absences Accrual

The University of Pittsburgh is required to record and report in its fiscal year-end financial statements a liability for employees’ rights to receive compensation for certain future absences. In May of each year the General Accounting Department must obtain certain information from University Check Distribution Centers (CDC’s) regarding absences for all union members. All responses must conform to union contracts and be submitted in a timely manner.    Staff data is retrieved from PRISM TRKS and reported in accordance with University of Pittsburgh Staff Handbooks http://www.pitt.edu/HOME/PP/pp_handbooks.html#adm1.

 

Unclaimed Property

Unclaimed Property is a financial asset owed to a business or an individual. Property is considered unclaimed when there has been no owner (Payee) contact for a specified period of time. When efforts by the holder ( University of Pittsburgh) to locate the owner fail, the funds must be turned over to the state of the owner’s last known address.

The General Accounting staff does not handle inquiries regarding unclaimed properties. If you would like to determine if the Pennsylvania State Treasury Bureau of Unclaimed Property is holding funds on your behalf, visit the Pennsylvania Unclaimed Property website at www.patreasury.org or contact the Unclaimed Property Bureau Customer Service Department at 1 (800) 222-2046, Monday – Friday, 7:30 a.m. – 4:30 p.m. Eastern Time. The customer service representatives will assist you in your search for unclaimed property or answer any questions that you have regarding your claim.