4.9.1 End of Year Processing Overview

4.9.1 End of Year Processing Overview

Once all transactions have been processed for a financial year (i.e. demands raised, receipts posted, supplier invoices processed and payments recorded) the end of year processing can be performed.
Firstly a set of financial reports can be run to review the financial position of the block.
Accessed via the block -> block reports.
The key reports to review are as follows:
  • Service Charge Financial Pack - accumulation of 10 different reports:
    • Service Charge Expenditures
    • Leaseholder Account History
    • Creditors Control Account
    • Bank Charges And Interest
    • Service Charge Debtors
    • Cash Account Summary
    • Bank Statement
    • Service Charge Expenditures By Schedule - Summary
    • Service Charge Expenditures By Service and Schedule - Details
    • Unallocated Supplier Invoices
  • Income and Expenditure
  • Balance Sheet
  • Any others that you wish to run off the reporting list
If, after a review of the reports, changes are necessary then these should be made in the Blocks Online system.
NOTE: The system works off accrual based accounting including the reports. 
If the reports accurately reflect the financial position then you are ready to submit the reports to your accountant in order to produce the accounts for the year.
When you do submit the reports to the accountant you should record this in the system:
Access via the menu option: finance -> accountant submission


This screen displays all the financial years within the block. The information displayed on the screen can be edited by clicking on the 'Details' button. 
The system allows the user to lock a financial year down once you enter the submitted and published date. This is to prevent any financial transactions from being entered accidentally as the accounts are with the accountant. You can unlock a financial year by removing these dates. We do keep an audit trail if these dates have been removed by someone as well for security reasons. 
You can also rename financial years just like in the annual budget screen when budgets are being drafted. 

Date accounts submitted to the accountant – This date should be entered when all of the accounting information / reports have been produced for the current financial year.
When this is entered the current year will be ‘partially locked’. Financial transaction can still be entered for the year, but the user is given a warning message informing them that accounting information has been submitted to accountants. This allows for changes to be made based on feedback given by accountants.

Once the accountants have confirmed that the information is correct and they have produced the accounts then you are ready to close the financial year:
Date accounts published – This date should be entered when the accounts are finalised. Once a date is entered the financial year is ‘fully locked’: no further financial transactions can be posted.

Year End Surplus/Deficit
If there is a surplus or deficit, you can generate ad-hoc invoices to credit or invoice the  leaseholders service charge account via the fee collection screen.
Choose the Ad-Hoc Collection option and then Service Charge - Percentage.
To identify the Surplus/Deficit, you can run the Actual vs Budget by Schedule report (providing the expenditure split has been done correctly) that outlines the variance between the budgeted amount and the expenditure or the Income & Expenditure report. 
The total variance for each schedule can be seen at the bottom of the report and if you entered this figure into an ad-hoc, then you can generate the invoices/demands. 





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