How does The University of Texas at Austin structure its fiscal year?
The University of Texas operates on a 12 month fiscal year which runs from September 1 to August 31. Budgets and external reporting are all done for this 12 month period.
At UT Austin a fiscal year is referenced by the two years it spans. For example, the fiscal year starting Sept 1, 2018, is the “18-19” fiscal year. The fiscal year starting Sept 1, 2019, is the “19-20” fiscal year.
Significant accounting activity takes place as the old fiscal year ends and the new fiscal year begins. The accounting records for the old fiscal year are adjusted and closed and the accounting records for the new fiscal year are opened.
Accounting and Financial Management prepares the Annual Financial Report (AFR) for UT Austin which is sent to UT System. The AFR is then combined with other UT System institutions and is sent to the Texas Comptroller’s Office to be combined with other state agency reports into the Consolidated Annual Financial Report (CAFR) for the State of Texas. In order to make these reports meet generally accepted accounting principles (GAAP) and other state requirements, various adjusting and closing entries are required. These are processed in a virtual “13th Month” after August has closed and have an August 31st record date. A virtual "14th Month" is opened in the new fiscal year with Balance Forward entries having a September 1st record date. The 14th Month is the true beginning of a new fiscal year.