MEMORANDUM NO. SAD 03-36
 

TO:	Business Managers
FROM:	Don Waugh  Assistant State Controller
SUBJECT:	Year End Close Package for June 30, 2003

The year end close package for June 30, 2003 is on the Office of the State Controller’s web page at the following address: http://www.osc.state.nc.us/sigdocs/sig_docs/sigYear_End_Activities.html. The files are available for downloading as indicated in the instructions on our web page. There are several  changes to the year end requirements for the Comprehensive Annual Financial Report (CAFR) for this year, so please read and follow the memo and instructions carefully.
 
The year end close package consists of the following:

Attachment 1  Community College Instructions

Attachment 2  Letter of Representation

Attachment 3  College Proforma Statements and CAFR Footnote Worksheets

Attachment 4  CAFR Financial Worksheets

Attachment 5  Single Audit Reporting Package

One complete copy of the required year end close package is due to the OSC by August 29, 2003 in accordance with G.S. 143-20.1.  The community colleges must prepare their financial statement Exhibits A and B using the  proforma financial statements referenced in Attachment 3 above. These proforma statements as well as all the required CAFR worksheets are included in the same Excel workbook file. This is a change from last year when there were two separate Excel files. The OSC is requesting that the community colleges e-mail by August 29, 2003 the Excel workbook file containing their financial statements and CAFR worksheets to OSC. This file should be e-mailed to both Darlene Langston and Helen Vozzo at these addresses: dlangsto@mail.osc.state.nc.us and hvozzo@mail.osc.state.nc.us. The colleges are no longer required to submit this information in hard copy form. Only the letter of representation is still required to be mailed to the OSC by August 29, 2003. Submitting the letter of representation by mail and the Excel financial statement and worksheet file by e-mail by August 29, 2003 will satisfy the college’s year end close package requirement for the Comprehensive Annual Financial Report (CAFR).

The colleges are required to prepare a Statement of Cash Flows using the direct method for their separately issued financial statements. A Cash Flow proforma has been issued separately by OSC in conjunction with the Office of the State Auditor and the Community College System Office.  There is a direct method cash flow template available on  the OSC website at this address: http://www.osc.state.nc.us/financial/34gasb/34gasb.html.  Any modifications to the  cash flow template that a college may need are the responsibility of the college.  The colleges are not required to submit the statement of cash flows as part of the year end CAFR package, but must disclose in their letter of representation that the cash flow statement will be prepared by September 15, 2003.

Attachment 5 of the year end close package is the Single Audit Reporting Package.  The Single Audit Reporting Package should be submitted separately to the Office of the State Controller per the instructions by August 29, 2003.  Do not include this package with your year end CAFR financial package.

The community colleges’ timely completion of the accrual process, financial statements, and CAFR worksheets will significantly improve the Office of the State Controller’s ability to prepare the 2003 CAFR for the State of North Carolina.

Please note the Office of the State Controller’s mailing address:
1410 Mail Service Center
Raleigh, NC  27699-1410

Please use the location address for Federal Express:
3512 Bush Street
Raleigh NC 27609

If you have any questions or concerns regarding these year end procedures, please contact Helen Vozzo at (919) 981-5483 or email hvozzo@mail.osc.state.nc.us. Your cooperation and timeliness are greatly appreciated.  Thank you.