AGENCY CFO MEETINGJune 21, 2011

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– 06/2011Agenda Welcome and Introductions Financial Reporting Tips and Tricks WCO – AP Transformation Payroll Paycard Travel Project Questions

FINANCIAL REPORTING UPDATE

Financial Reporting

2011 Budgetary Compliance Reports (BCR) Compliance with Accounting Directive on use of

Fund Balance Accounts (AD201101) Majority of agencies are in compliance Non-compliance may result in an audit finding

SAO sending out preliminary BCRs (P/S agencies only) with May/June data in preparation for year-end

Included with this is a confirmation of P/S Fund mapping to BCR/CAFR reporting entity

Due from agencies to SAO 6/30/11

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– 06/2011

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– 06/2011Financial Reporting Update

Year-end calendar/deadlines Available on SAO’s website (www.sao.georgia.gov)

Home > Reporting > Year-End Reporting

Year-end forms Available on SAO’s website (www.sao.georgia.gov)

Home > Reporting > Year-End Reporting > Reporting Forms The following items will be available by 6/30

• Post Closing Adjustment form• Forms applicability grid• Entire package as a zip file

Acknowledgement form due back to SAO 7/15 New ‘Not Applicable’ form There is a new form this year is for Pension/OPEB

contribution information All forms training will be done via online videos

Financial Reporting Update

GASB Statement 54 Fund Balance Reporting and Governmental

Type Definitions Changes the way fund balance is

classified at the Fund Level Does not apply to Budget Fund

statements. NO IMPACT TO BCR!! SAO in the process of reviewing the

GASB54 classification of funding sources – this will be the primary source for 2011 fund balance classification (P/S organizations)

Encumbrances not reported separately Accounting Directive coming soon

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– 06/2011Financial Reporting Update

Post Closing Adjustments In order to ensure timely preparation of the BCR/CAFR,

please try to limit the number of PCAS For FY 2011 there is a change in the approval process

• Upon SAO review, SAO will be posting all post closing adjustments

• Any post closing adjustments not approved by DOAA will result in an Audit adjustment entry to reverse out the effect of the PCA

• Any PCAs submitted after the deadline will not be accepted by SAO. These will need to be submitted to the audits and will be provided to SAO by DOAA as an audit adjustment entry

CFO M

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– 06/2011Financial Reporting Update

Year-end checklist SAO has developed a year-end checklist to assist

agencies with their year-end closing and review process Use of this checklist for FY2011 is encouraged and will

not be mandatory or issued as final for FY2011 close

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– 06/2011Financial Reporting Update

Upcoming PeopleSoft/Policy Changes Closing of new 3xxxxx fund balance accounts Additional fields for new funding source requests Clearing Account policy revised to say 196050/196051 must

net to zero in total by fund type New PeopleSoft Queries

GL080_TB_44_WITH_FS_TYPE• Like the GL080 (the 44-series reports in query format) except

data is summarized similar to the BCR• Includes FS_TYPE• Includes Program at the 5-digit level

0GL081_JRNL_IMPORT_TB (coming soon)• Fields are the same as in a JE upload template• Useful when cleaning up account balances

CFO M

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– 06/2011Financial Reporting Update

Tips and Tricks When searching for policy information on SAO’s website users may

find it helpful to try the following:• Use Advanced Search to limit search to just SAO’s website• There is an option at the bottom to repeat search with omitted results

included – this may bring back additional data

WORKING CAPITAL OPTIMIZATION

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– 06/2011WCO Workstreams

9

8

7

6

5

4

3

Cash Cost Service

Prevent Early Payments• Eliminate early payments

without payment discount• Quarterly reporting to monitor

numbers of days to pay vendors

Maximize discounts• Negotiate payment discounts• Implement dynamic discounting

process to earn discounts even when not negotiated.

Recover Lost Costs• Implement recovery process• Identify duplicate and erroneous

payments and contract performance violations

Reduce Transaction Cost• Convert checks to electronic

forms of payments• Minimize document handling,

processing, and audit costs

Exploit Technology• To enable reduced document

handling (imaging, workflow, p-card, and e-purchasing)

Reduce Discrepancies• Discrepancies can be

eliminated by effective dispute management - identify and solve

Create Scalability• This can be attained by

structural change such as Shared Services

Strategy * Policy * People * Organization * Process * Technology * Metrics * Information

2

1Change Payment Clock• Move from invoice date to later

of receipt of invoice or goods• Reinforce recording of correct

date in accounting system

Extend Payment Terms• Segmented vendor focus• Consider move from Net 30 to

Net 45• Quarterly reporting

Efforts to Date – Vendor Conversion Focus Group

Comprised of agencies• Series of meetings (Sept-Feb 2010)• DOC,DJJ, Forestry, DBF,DECAL,DPS,SOS,DHS• Very thankful for agency participation in this project!!! Can

not do this without you!

214 of the 1,400 (15%) vendors assigned to all agencies have been converted

196 of the 966 (20%) vendors assigned to focus agencies have been converted

Overall 805 vendors have been converted.

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– 03/2011

ACH Utilization Percentages

July August September October November December January February March April May0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

21%

24% 24% 24%25% 25%

23% 23%26% 26%

28%

ACH Payment Percentages by Month FY11 - PeopleSoft Agencies (includes baselines for 2009/2010)

2011 2009 2010

PAYROLL PAYCARD

TRAVEL PROJECT UPDATE

Travel Update – What’s changing? Updated travel policy

New travel agent - Travel Incorporated Government travel experience Agent and online help Trained specifically for GA travel policies

New online travel and expense booking tools - Concur

What is Concur? Expense

Expense reporting system for travel expenses incurred by employees on behalf of the State of Georgia

Travel Web-based reservation system providing competitive

fares and discounts to State of Georgia employees Saves reservations as fully formatted Expenses which

can be rapidly imported into Expense Reports

Benefits to the State Improved internal controls and compliance

(protects the State) Provides meaningful spend reporting Negotiating power for the State of Georgia Standardizes Automates process and eliminates paper

Benefits to the Employee Guides employees to follow State of Georgia policy Provides State negotiated rates for business travel Minimizes data entry and approval routing time Reduces time to reimburse employees

How is Concur Rolling Out?

1. Pilot Population – early August 20112. Wave 1 agencies November 20113. On-boarding of future agencies to occur quarterly

until completed

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MEETING

– 06/2011