Clearing accounts (68 accounts) are designed to be a holding area for funds when it is unclear which operating account is appropriate to use for a given transaction. It is appropriate for an item to remain in a clearing account for a period up to 30 days. This should provide sufficient time for each clearing account manager to identify the appropriate operating account for a transaction, and transfer the funds to that operating account. Items remaining in clearing accounts over 30 days should have the approval of FMS.
Income and expense activity in clearing accounts is reclassified to the university balance sheet for inclusion on the annual financial report. This reclassification is accomplished via a period 13 adjusting entry posted in the clearing accounts by FMS after Second Close. As a result, no entries are allowed in clearing accounts after Second Close on Wednesday, July 13.
Please make a special effort to move as many transactions out of your clearing accounts to their appropriate operating account by Thursday, June 30, 2016.
Any questions regarding clearing accounts should be addressed to Bill Overman at (812) 855-2557.