Just a refresher on fund balance roll, since we do this only once a year.
Fund balance roll is the process of taking the ending balance from June and making it the beginning balance in July. The entry for the change in net assets posts in July business in account 4999. This is the only entry that should post in 4999. Transfers and corrections go in transfer account 6800.
Fund balance roll happens in fund types that have fund balance. This includes designated funds, gifts, endowment spending, service centers, auxiliary, and agency funds.
Fund balance roll does not happen for budgetary funds or budgeted projects. Therefore, it does not apply to 100.000000, which has a separate carryover process handled by the Budget Office.
Fund balance roll does not apply to projects in the Project Portfolio Module (sponsored, capital, or faculty funds.) The fund balance in fund type 109 (faculty funds), fund type 04 (sponsored), fund type 150 (capital) does roll, but nothing happens in the projects. Projects hold only budget and expenditures.
The fund balance roll amount is the sum of all activity in revenue, transfer, and expense accounts for the entire year just closed. This is the change in net assets. The change in net assets is added to (or subtracted from) the existing balance in net assets to arrive at the new beginning balance for the fund.
Let’s look at an example.
101.019000 has this activity in FY 2024 in June when June is closed:
Actual YTD – End of Period
4999 net assets (beginning balance) (87.00)
6500 miscellaneous revenue (10,000.00)
6800 transfer 1,000.00
8345 miscellaneous expense 6,000.00
The activity during the year is a total of (3,000). The sum of the beginning balance from last July and the activity during the year is (3,087.00). In July FY 2025 this will happen to net assets:
Period Activity Actual YTD – End of Period
4999 net assets (beginning balance) (3,000.oo) (3,087.00)
The fund balance roll will post to net assets before the close of July, which is scheduled for August 7.