Fiscal Year-End Transition to June 30 – Key Information

Elon University will transition its fiscal year-end from May 31 to June 30, effective with FY2027. Beginning July 1, 2026, the fiscal year will run from July 1 through June 30. This change aligns Elon with peer institutions and standard practices across higher education.

We recognize this is a significant change and appreciate your partnership in managing the transition. Taking action now—particularly around invoice timing and vendor coordination—will help reduce operational and financial impacts.

Q&A Session

Watch the recording of the Zoom Q&A session

·         What this change means for you

·         Actions to take now

·         What to expect in June 2026 during the transition period

·         What to expect beginning July 1, 2026.

What does this change mean for you?

  • The current fiscal year (FY2026) will still end on May 31, 2026.
  • June 2026 will serve as a one-month transition period.
  • Purchase orders for FY2027 cannot be opened until the new fiscal year is available in the system (anticipated mid-June 2026). Purchasing will work with departments that have time-sensitive needs to place orders with vendors.
  • Accounting and reporting impacts (including OnTrack Budget vs. Actuals) are being evaluated. Additional guidance will be shared as details are finalized.

Actions to take now (before May 31, 2026)

To minimize disruption and ensure accurate financial reporting:

  • Submit invoices promptly for purchase orders expected to close in May
  • Encourage vendors to submit invoices as early as possible
  • Submit all FY2026 invoices and check requests by June 5, 2026
  • Review open purchase orders to confirm goods/services are received and invoiced timely. Please advise Purchasing of open purchase orders that may be closed.
  • Coordinate with vendors on timing of annual payments:
  • If payments are typically made in June for services beginning July 1 or later, request vendors delay billing until July
  • Many vendors are willing to accommodate adjustments due to this change

What to expect in June 2026 (transition period)

  • June will serve as a transition month between fiscal years
  • Department budgets will not be loaded in June; however, this will not impact the ability to process invoices or check requests. Standard approval processes remain in place
  • There may be temporary limitations on opening new FY2027 purchase orders until system updates are complete
  • FY2027 is expected to open in mid-June, after which new purchase orders can be created
  • Additional guidance will be provided regarding any process or reporting changes during this period

What to expect beginning July 1, 2026

  • FY2027 officially begins
  • Full-year budgets will be loaded and available in MyBudgets
  • Purchasing processes will resume under the new July–June fiscal calendar
  • Any updates to reporting, budgeting tools, or OnTrack will be communicated in advance

We recognize this is a significant change and appreciate your partnership in managing the transition. Taking action now—particularly around invoice timing and vendor coordination—will help reduce operational and financial impacts.

Questions

For questions about this transition, please watch the recorded Q&A session or contact Kelly McKinney.

FAQs

Will FY 2026 end on May 31, as usual?

  • Yes, May 31 is our current FY2026 period.

Will budget deadlines for FY28 change?

  • The timeline for the FY28 budget cycle will be communicated when appropriate.

Will June 2026 be treated as its own fiscal year or as a separate reporting period?

  • June 2026 is not necessarily its own “fiscal year” but is a separate reporting period. We are referring to June as our “transition” month.
  • June 2026 will be a standalone reporting period.

What will departmental budgets look like in June 2026?

  • Departmental budgets will Not be uploaded in June.
  • Budgets will be uploaded in early July 2026 for Fiscal Year 2027.

Will departments have a budget for June 2026?

  • Due to the University’s transition to a June 30 fiscal year end, June 2026 falls outside of the normal Board-approved annual budget cycle and will not have a separately approved budget.

Can departments still spend in June?

  • Normal University operations will continue, and departments may proceed with necessary and time-sensitive expenses during June.

How should we approach spending without a budget?

  • Departments are EXPECTED to exercise prudent financial stewardship during this transition period.
  • Priority should be given to essential, committed, or time-sensitive expenses, while discretionary or deferrable spending should be postponed to July where feasible.

Will a 12-month budget be compared to 13 months of actuals June (stub month) and July 1 – June 30?

  • No, 12-month Budget will be compared to the 12-month Actuals, July 1, 2026 – June 30, 2027

Will payroll be impacted by the FY change?

  • No, payroll should not be impacted by the FY change
  • If you have specific payroll-related questions, please reach out to Payroll 

Purchasing Related FAQs

Do normal approval processes still apply?

  • All standard approval and review processes remain in place and should be followed for June transactions.

How will this affect our ability to fund and complete summer projects that start June 1 and end July 31, spanning two different fiscal years?

  • If there are projects scheduled during summer, those projects will proceed as planned.
  • It is understood that we must continue operations and should encounter no delays to already planned and approved projects.

In some cases, we may need vendors to change remittance dates for goods or services from June to July. Do we have a document we can share with vendors to confirm that this request is due to the fiscal year change?

  • No, if goods or services are rendered in June then the invoice should reflect that; we are not asking vendors to change their terms.
  • If there is something that can wait until July, then that is also an option, but it is not best practice to expect a vendor to change their payment terms.

How will this change impact departments that typically delay purchases until the end of the fiscal year (historically May) to confirm available funds?

  • You may always confirm available funds in Ontrack.
  • Waiting is not a best practice.

 How should departments handle end-of-year purchasing if a 10-month program assistant normally coordinates these purchases but is only on contract from August to May?

  • This will need to be discussed and determined within your own department. We are happy to be a resource as you make these shifts.

In units with no other departmental staff on contract in June (e.g., some academic departments), would the purchasing window effectively be shortened by a month, or would another staff member outside the department need to take over?

  • This is similar to the above question in that this would be a discussion within the department to make the necessary shift to meet the needs of the department.

Travel Related FAQs

I’m attending a conference in June. The registration fee has already been paid, but I’ll incur lodging, mileage, and meal expenses. How should these June expenses be handled if the new fiscal year doesn’t begin until July?

  • If payment is made prior to May 31 and is for June, you will see the expense post to your budget in June. If you have questions, please reach out to Accounting.

How will faculty travel/professional development allocations be managed for June 2026? We have been telling faculty that their funds are available until 5/31/26 to this point. Some folks travel in June and may have used their available funds for 25-26 already thinking their available funds started over June 1. Units may go over budget if we put June 2026 travel on the 25-26 budget.

  • FY2026 budgets will end on May 31, 2026. Although there will be no budget loaded in June, we are aware that some expenses must occur.
  • Accounting, Purchasing and Leadership understand that there may be variances in FY2027 as it relates to the changing of the Fiscal Year.

Contract Related FAQs

How will we handle contracts that have already been signed and require payment on June 1? Can we issue purchase orders (POs) in May to cover June payments? If so, should we issue a one-month PO for June and a full-year PO starting in July?

  • If payment is required by June 1, there will be no interruptions to the current process.
  • POs should be submitted prior to June 1, and payment will be processed.

Will this change shorten the time academic units have to process adjunct contracts through approvals, HR/payroll processing, and bargaining unit requirements? Deans and department chairs still need timely information about available funds, so they can fill vacancies as early as possible.

  • The adjunct hiring process will not be affected by the FY change.

Reporting Related FAQs

How will the fiscal year change affect the annual reporting and metrics the university completes, and how will associated timelines shift for campus partners who provide input?

  • This is dependent on your department and the specific reporting needs. Please reach out to your campus partner(s) to discuss further.

Will you notify the IRS regarding the Form 990 reporting?

  • Yes, Elon’s Tax Manager will ensure accurate reporting to the IRS.