Monthly Closing Project Plan: Instructions

This template outlines a sample financial closing process for a nonprofit organization.

Columns A and B number and list typical steps in a financial close.

Column C lists suggested staff responsibilities for each activity. "Staff" refers to front-line fiscal office staff (e.g.
accountant). "Senior Staff" refers to senior fiscal office personnel (e.g. senior accountant, controller, director of fi
Note that the assignments listed here are general in nature and should be used only as guidelines; these may b
according to the structure of your organization's finance function. You may overwrite each cell with the title of th
name of the individual responsible for each task in your own organization.

Column D notes whether performing an activity is dependent on the completion of a prior activity. If so, the num
that must be completed first will appear in this cell.

To use the template as a project plan or Gantt chart, place an "X" in the appropriate cell in Columns E through X
target completion date of each activity. Be aware of any tasks that depend on the prior completion of another a
fiscal office staff (e.g. bookkeeper, staff
controller, director of finance, CFO).
uidelines; these may be adjusted
cell with the title of the position or

activity. If so, the number of the activity

n Columns E through X to identify the

mpletion of another activity.
 Week 1 Week 2 Week 3 Week 4
Staff Prior
Activity/Task Responsible Activities 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Notes
Asset Account Analysis and Revenue Recognition Activities
Cash Accounts
Print cash receipts summary reports after final day's receipts are Staff
1.1 recorded

Senior Staff
1.2 Close cash receipts and post to General Ledger (GL) 1.1

Staff
1.3 Complete bank reconciliations for each cash account 1.2
Review and approve bank reconciliations; ensure all reconciling Senior Staff
1.4 items have been researched and properly resolved 1.3
Accounts Receivable
Prepare vouchers or invoices based on personnel and OTPS
expenses allocated to government grants/contracts or restricted Staff
2.1 funds

Staff
2.2 Generate A/R Aging report
Review A/R Aging report and determine strategy for collection or Senior Staff
2.3 write-off of aging A/R 2.2
Post pledges receivable to GL and reconcile to balances per Staff
2.4 development department
Reconcile to revenue reports from the development department Senior Staff
2.5 and update GL 1.2
Prepaid Expenses
Establish pre-paid expenses (e.g., insurance, interest expense, Senior Staff
3.1 etc.) to recognize expense in proper month
Fixed Assets
Review new purchases made in the previous month to verify
they have been recorded properly with the correct depreciation Senior Staff
4.1 schedule
Review disposals of fixed assets and remove from fixed asset Senior Staff
4.2 records

Senior Staff
4.3 Record depreciation expense for the current month
Investments

Senior Staff
5.1 Post interest and dividend income to GL

Senior Staff
5.2 Reconcile any investment activities for the period
Other Assets
Ensure any other asset accounts are current and reconcile as Senior Staff
6.1 necessary
Accounts Payable / Liability Account Analysis
Payroll

Senior Staff
7.1 Post payroll to GL
Accounts Payable (other than payroll)
Submit all employee expense reports (Including original backup Program Staff
8.1 documentation) and vendor invoices to finance
Review credit card statements and other reimbursement
expense reports; match to supporting documentation for
approved travel and other reimbursement expenses; verify Staff
8.2 coding 8.1

Staff
8.3 Close A/P and post to GL 8.2
 Week 1 Week 2 Week 3 Week 4
Staff Prior
Activity/Task Responsible Activities 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Notes

Senior Staff
8.4 Review A/P and other payables for possible accrual 8.3
 Week 1 Week 2 Week 3 Week 4
Staff Prior
Activity/Task Responsible Activities 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Notes
Notes Payable
As applicable, analyze notes payable accounts (e.g., notes
payable for mortgages or lines of credit) and post any Senior Staff
unrecorded interest and principal outstanding; reconcile to
9.1 statements received from source(s) of financing
Other Liabilities
Ensure any other liability accounts are current and reconcile as Senior Staff
10.1 necessary
Reporting
Financial Reporting Activities
Run preliminary budget-to-actual expense reports by Staff all of the
11.1 department, program, and contract above
Review and analyze month-end financial data; record Senior Staff
11.2 adjustments as necessary 11.1
Generate full final financial package and complete month-end Senior Staff
11.3 financial statements for executive team and board 11.2
Distribute appropriate reports to executive team, board, and Senior Staff
11.4 program and development managers 11.3
Meet with appropriate management levels to discuss variances Senior Staff
11.5 and projections 11.4

QUARTERLY Close Activities

The following activities should be part of the closing process for the months ending a quarter, and should be completed prior to the issuance of that month/quarter's financial statements.
Review open purchase orders and uninvoiced services rendered Staff
Q.1 to establish accruals or encumberances against budget

Staff
Q.2 Reconcile 941 quarterly tax filings to GL 7.1

Senior Staff
Q.3 Review 941 quarterly tax filing reconciliations Q.2
Analyze net asset accounts to ensure net assets are properly
classified as unrestricted, temporarily restricted or permanently
restricted, including releasing any restrictions that have been Senior Staff
Q.4 satisfied
(After issuance of financial statements)Conduct quarterly
financial review incorporating senior leadership from finance, Senior Staff
Q.5 development and program 11.4