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Policy & Procedure
Policy Title :
Financial Year End Close Policy
Policy Number :
IV.A-11
Responsible Party :
Financial Affairs
Effective Date :
28/11/2013
Revised Date :
_______________________

Purpose

The purpose of this policy is to provide guidelines for closing the accounts at year end.

Statement :

In order to properly recognize and clarify the results of the University operations and the financial position, the accounting books should be closed annually. The accounting books shall also be tentatively closed at the end of each month for the purpose of internal analysis and for management reporting requirements.

Procedure :
  1. Send the Balance confirmation to all customers, suppliers, petty cash holders and banks.
  2. Conduct the fiscal count for all the fixed assets and other inventory such as (stationery– cleaning materials – books).
  3. Record the accumulated depreciation for the fixed assets and the amortization for the pre-paid expenses.
  4. The Fiscal Count Committee reviews the inventory of the cash and the checks in the main safe to compare it with the book balance and take the necessary action if there is any shortage or excess. 
  5. Check the trial balance and review all accounts individually.
  6. Closing the net income at accumulated profit and loss account.
  7. Preparing the provisions for doubtful debts, end of service, vacation, tickets and zakat.
  8. Check all bank reconciliation to clear un-reconciled amounts.
  9. Prepare the amendment entries (if needed).
  10. Post all JV entries and close the financial year at the accounting system.