This chapter contains these topics:
At the end of each plan reimbursement year, flexible spending accounts must have a zero balance. To bring all flexible spending accounts to zero and review the year-end reports, complete the following tasks:
Reviewing Flexible Spending Account Reports
Running the Integrity Report
Running the Year-End Close
First, you must run the Integrity Report to check the flexible spending account for discrepancies between balance revisions and claims.
You can bring all flexible spending account balances to zero using the Year End Close report. Run the Year End Close Report after the Integrity report balances. This brings all flexible spending account balances to zero.
From Human Resources (G08), choose Flexible Spending Accounts
From Flexible Spending Accounts (G08F1), choose World Writers
You can review reports to provide you with current information on flexible spending accounts. In addition to running these reports at year end, you can run them as often as necessary to provide you with up-to-date reference information.
Choose the version of the report that you want to review. You can choose from the following reports:
Account Balances Dependent Care
Review this report to identify any account balances that each participant has in the dependent care flexible spending account. Use this report before the year ends to notify participants if they have a balance they might want to use before the year ends.
Review this report to identify any account balances that each participant has in the medical care flexible spending account. Use this report before the year ends to notify participants if they have a balance they might want to use before the year ends.
From Human Resources (G08), choose Flexible Spending Accounts
From Flexible Spending Accounts (G08F1), enter 27
From FSA Advanced/Technical Operations (G08F3), choose Integrity Report - Claims Detail
When you run the integrity program, the system compares the claims from the Flexible Spending Accounts Clams table (F08371) to the Flexible Spending Accounts Balances table (F08370) and generates a report. The Integrity report lists the balance for each account and the associated claims in the detail rows. The figures in the balance row and the detail, or claims, rows should match.
The system always assumes that the detail, or claim, information is correct. If there is any discrepancy, you can make corrections on Single Claim Entry or Balance Revisions.
You can set the processing option and create a program version to only print a report. You can review the report for errors. You can make corrections to either the claims or the balance and run the integrity report until both the balance and detail information match. After you run this program in update mode, you can run the year-end program.
The following two conditions can cause errors on the integrity report:
The claim detail does not match the balance.
If you can identify the cause, make the correction on Single Claim Entry or Balance Revisions.
If you cannot identify the cause, set the processing option for the integrity report to repost the information and rerun the integrity program. The system reposts and adjusts the balance to equal the detail.
The claim detail does not balance, or cross-foot.
To cross-foot, the system performs the following calculation:
Requested claims - rejected - pending - amount to pay = 0
If the claim record does not cross-foot, you must review the claim documents and payments and manually enter the correction on Single Claim Entry.
Discrepancies can occur when you make a manual entry on Balance Revisions, but do not make a balancing entry on Single Claim Entry. Remember the following practices to reduce discrepancies:
If you make an entry for a manual check on Single Claim Entry, the system automatically updates Balance Revisions.
If you revise Balance Revisions for a reimbursement, make an entry for a manual check on Single Claim Entry. If you do not, the balance and detail figures on the integrity report might not match.
You can also run the Integrity report anytime throughout the year to confirm the accuracy of your claims. If you review the integrity and correct the information periodically throughout the year, your year-end closing will take less time than if you wait to do this at year-end only.
From Human Resources (G08), choose Flexible Spending Accounts
From Flexible Spending Accounts (G08F1), enter 27
From FSA Advanced/Technical Operations (G08F3), choose Year End Close
After you run the Integrity report and verify the accuracy of the account information, you can run the year-end close. You must run the year-end close to bring all flexible spending account balances to zero. A processing option allows you to run the year-end close without performing any update functions. You can create a version with the option set to run a proof version of the year-end close to review the status of the flexible spending accounts. When you run only the report, the report lists all account information as if you had created close-out claims. Close-out claims bring the flexible spending account balance to zero.
When you are satisfied with the accuracy of the information, you must run a version of the program to create the close-out claims and bring the accounts to zero. After you close a flexible spending account, you cannot enter any new claims for that calendar year.
Set up a service provided code (08/SC) to reimburse claims for the next plan year while you are closing out the current year. See Section 25.6, "Setting Up Codes for Services Provided."
Set up a pay type attached to the service provided code (08/SC) to reimburse claims for the next plan year while you are closing out the current year. See Section 23.2, "Setting Up Pay Types."
Run the integrity program and review the report to ensure both claims and balances are correct. SeeSection 19.3, "Running the Integrity Report."