10 Timing: The year end closure process includes additional processes which adjust the timing of the closure. Due to the timing for the submission of the Financial Report to the Health Assembly, the year end accounts are to be presented to the External Auditor in accordance with the timetable agreed by the External Auditor and the Comptroller.
20 Year end closure instructions: Detailed year end closure instructions are issued by the Head Accounts and Financial Reporting by last quarter of each year.
30 Year end closure activities: All of the month end activities are also required for the year end closure. There are a number of additional year end processes which need to be followed:
- Bank and imprest reconciliations: The year-end bank reconciliations should be prepared by the respective account owner. Full details of all reconciling items should be provided, e.g. full listings of outstanding cheques, copies of bank deposit slips stamped by the bank for outstanding deposits, photocopies of all payment instructions to banks (including standing orders) where these appear in the reconciliation statement. Explanations must be given for outstanding items for more than 90 days.
- Cash certificates: At the close of business on 31 December all cash in the hands of cashiers must be counted in the presence of a senior official of the regional or other office and a certificate must be prepared. A separate cash certificate is required for each currency and account. Any discrepancy between the cash certificate and the corresponding cash book balance (as per the general ledger) or imprest account (as per the general ledger) must be explained in full, above the signatures on the certificate.
- Accruals: At the end of each year Accounts (ACT) reviews the levels of accruals and makes adjusting entries where necessary. Complex accruals for staff benefits such as accrued annual leave and repatriation benefits may need the support of external actuarial services. Similarly the year end calculations for the After Service Health Insurance (ASHI) liability are also calculated with the help of actuaries.
- Un-invoiced receipts: As a part of the year end closure a report is generated to identify all un-invoiced receipts. Based on this report, GSC prepares an expenditure batch to post the respective expenditure with an offsetting entry to a liability account. This entry ensures that all expenditure is recognized on the accrual basis. On the first day of the next period the entry is reversed thus posting a credit to expenditure in the new year. When the actual expenditure is posted the net effect to expense for the year is zero.
- Interest apportionment: Interest is calculated and apportioned to the funds that earn interest.
- Actuarial results: Actuarial transactions are reviewed and recorded according to the latest actuarial reports.
- Eliminations: All eliminations needed for the preparation of the financial report are posted as journal entries in the official accounting database.
- Account control sheets and note clearance forms: All account control sheets and notes clearance forms are submitted to the Head Accounts and Financial Reporting according to the year-end closure schedule.
