Financial Close and Reporting Policy

Responsible Unit: Finance | Executive lead: CFO 
Created: 1/2008 | Reviewed/Revised: 5/2011; 6/2015/ 1/27/2023 | Effective: 1/27/2023
Compliance: NWCCU 2.E.1 
Approving Body: BOT | Classification: Institution-wide 

Policy:  
This policy outlines the responsibility of the finance staff to ensure that all transactions are posted in a timely manner and that all exceptions are identified for inclusion during the closing processes.  

PNWU will systematically close and prepare monthly financial reports as soon after the end of the period as feasible for internal and external users following consistent procedures.[1] 
  
Financial reports are prepared in conformance with GAAP unless other methods or requirements are explicitly communicated to the user (i.e. special report format for external party, etc.).[2] 
  
Any alternative accounting treatments are communicated clearly to the leadership team and the Finance Committee when applicable.[3] 
  
Monthly financial reports will be prepared on a consistent and standard timeline. Any variations to this timeline or to other financial close and reporting procedures must be reviewed for validity and approved by the CFO.[4] 
  
GL sub ledgers or other supporting documents are reconciled to the general ledger on a monthly basis. Any exceptions are clearly documented (i.e. depreciation estimates) in narrative form to users no less than annually.[5] 
  
Any non-routine event or transaction will be assessed only after evaluating all necessary data to make the decision, treated using consistently applied methodology, and communicated, if material, via the report narrative.[6] 
  
The university may utilize clearing or suspense accounts to simplify the reconciliation process between various systems. All clearing or suspense accounts must be reconciled at least on a monthly basis with supporting documentation approved by the CFO.[7] 
  
All related-party events and transactions are identified and authorized, appropriately accounted for, and disclosed in the appropriate accounting period.[8] 
  
All journal entries made to the general ledger must be adequately documented and approved by the CFO.[9] 
  
Accruals and adjustments to allowance accounts are recorded, in accordance with GAAP.[10] 
  
PNWU prepares a monthly trial balance that supports and reconciles with the final monthly financial statements.[11] 
  
Audit preparation procedures are documented and followed by applicable accounting personnel.[12] 
  
Existing contracts and/or material legal matters are reviewed by the appropriate level of administration, which may include legal counsel or auditors to determine whether commitments, contingencies, or adjustments require disclosure in the financial statements.[13] 
  
IC26,27,28 – N/A to PNWU  

Definitions:  
N/A 

Procedure:  
Expenditure and Disbursement Policy 

Related Documents: 
N/A 

Policy Resources

For assistance with policies and procedures contact:

Lori Fulton
lfulton@pnwu.edu