MEMORANDUM NO. SAD 03-37
 

TO:	Chief Fiscal Officers  Vice Chancellors
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 home 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. The Office of the State Controller (OSC) will not be mailing copies of the year end close package, so please make sure you are able to access and download the necessary files.

The year-end close package consists of the following:

(Attachment 1)  Agency Year End Activity Check List and Instructions

(Attachment 2)  Letter of Representation

(Attachment 3)  CAFR Footnote Worksheets

(Attachment 4)  CAFR Deposits and InvestmentsWorksheets

(Attachment 5)  CAFR Financial Worksheets

(Attachment 6)  Statement of Cash Flows

(Attachment 7)  Single Audit Reporting Package

Each agency is required to submit one copy of the year end close package to the Office of the State Controller by August 29, 2003 in accordance with G. S. 143-20.1.  For interface agencies not on the North Carolina Accounting System (NCAS), a copy of their financial statements must be submitted  along with the information requested in this package to satisfy the G. S. 143-20.1 requirement.

Attachment 7 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 close package.

Under the GASB 34 reporting model, Business Type Activities are required to prepare a Statement of Cash Flows using the direct method. The CAFR worksheets for preparing the statement of cash flows are included in the year end package, and there is also a direct method cash flow template available on the OSC website. Component Units issuing separate financial statements are also required to complete the Statement of Cash Flows using the direct method.   Any modifications to the cash flow template that a Component Unit may need are the responsibility of the Component Unit.  Component Units are not required to submit the statement of cash flows as part of the year end package, however, they must disclose to OSC in the letter of representation that the statement of cash flows has been completed by September 15, 2003.
 
The NCAS financial statements will be delivered to the agencies through the NCAS Decision Support System (DSS). A copy is not required to be sent with the package, but the NCAS agencies are required to have the NCAS financial statements correct and complete when the package is submitted.

In preparing the Comprehensive Annual Financial Report for the State of North Carolina, the separate footnote disclosures from each agency must be combined by the OSC.  To facilitate the footnote combining process, OSC is requiring that the agencies provide footnote disclosure information in formats prescribed in the attached CAFR Footnote Worksheets.  For those footnotes that do not apply to your agency, indicate N/A on the workbook index sheet and submit this index sheet with your package.

The agencies' timely completion of the accrual process, financial statements, and footnote worksheets will significantly improve the OSC's ability to prepare the 2003 CAFR.

The OSC has committed to submitting a statewide accrual file to the Office of the State Auditor by September 15, 2003 and requests the agencies strict adherence to their accrual closing deadline of August 29, 2003. 

Please note the Office of 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 27609-7509
 
If you have any questions regarding these year end procedures, please contact your analyst at the Office of the State Controller.  Your assistance and cooperation is most appreciated.


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