Congratulations on making it through year-end! While some agencies are still finalizing their financial statements, most have crossed the finish line—and that is worth celebrating.

We are pleased to report that more than 89% of agencies cleared all exceptions by Phase 2 Close—6% more than last year. Thank you for your hard work and dedication!

Some agencies were unable to meet the deadlines or still have exceptions that require additional research and correction in fiscal year 2027. We understand that staff turnover and limited resources can affect timelines. However, completing the Annual Comprehensive Financial Report (ACFR) accurately and on time depends on every agency submitting complete entries in AFRS and the Disclosure Forms. Missed deadlines can delay the overall process.

Looking ahead, we encourage each agency to hold a “lessons learned” session to discuss what went well and what could be improved next year, such as:

  • What went well and should be recognized, repeated, or expanded?
  • What steps could have been completed earlier?
  • How could you address the roadblocks or issues you encountered?
  • What issues remain from the FY2026 close that need attention in FY2027?

To prepare for next year:

  • Complete GL reconciliations on time, including corrections to reconciling items.
  • Review and clear exceptions each month.
  • Assign clear ownership: Designate one person to manage the exception list and identify who is responsible for resolving each issue.
  • Ask for help early: If your team cannot resolve a question, contact your agency’s assigned OFM Statewide Accountant as soon as possible.
  • Create or update your agency’s closing checklist using what you learned from the FY2026 close.

We truly appreciate the time, effort, and attention to detail that fiscal staff contributed to closing the fiscal year. Your work is essential to producing accurate, high-quality financial data for the ACFR and other financial reports.

Thank you again for your commitment. We can all be proud of what we accomplished together this year!