Year-End Budgetary Closing Entries (Estimated Revenues & Appropriations)
Closing the budgetary control accounts (Estimated Revenues, Appropriations, and Encumbrances) at fiscal year-end — the government-specific reversal of the budget adoption entry.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Appropriations Control (Reversed at Year-End) | Budgetary Dr (Close) | 39,500,000.00 | - |
| Budgetary Fund Balance (Reversed) | Budgetary Dr (Close) | 2,500,000.00 | - |
| Estimated Revenues Control (Reversed at Year-End) | Budgetary Cr (Close) | - | 42,000,000.00 |
💡 Accountant's Note
The budgetary entry recorded at the start of the fiscal year (Estimated Revenues Dr, Appropriations Cr, Budgetary Fund Balance Cr/Dr) is reversed in its entirety at year-end as part of the closing process. This reversal removes the budgetary control accounts from the ledger, leaving only the GAAP accounts (revenues, expenditures, fund balance). The budgetary comparison schedule in the CAFR/ACFR uses the actual activity from the GAAP accounts compared against the adopted and final budget amounts — the comparison is made AFTER the budgetary accounts are closed.
Practitioner & Systems Framework
💻 ERP Architecture
Budgetary closing is handled separately from the GAAP closing process in government ERP systems. The sequence matters: (1) Close outstanding encumbrances (roll forward or lapse), (2) Close budgetary accounts, (3) Close GAAP accounts, (4) Run post-closing trial balance. New year budget entry is typically made at the same time as the prior year budgetary close.
⚠️ Audit Flags
Auditors confirm that budgetary accounts are properly closed and do not carry forward balances (other than encumbrances carried by governing body action). Residual budgetary account balances after closing are a system error. The budgetary comparison schedule must reflect the final amended budget — any budget changes made after year-end that apply to the completed fiscal year require disclosure.
📄 Required Documentation
Budgetary close run confirmation from ERP, post-budgetary-closing trial balance (budgetary accounts at zero), outstanding encumbrance list before close, final amended budget document, new year budget entry confirmation.
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