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Finance Department Year-End Presentation
Fiscal 2019 September 11, 2019
Miami-Dade Finance Department 1
Welcome/Introduction Accounting and Reporting FEMA System Initiatives & Other Updates Construction Payable Accounts Payable/IWA Adjournment
Miami-Dade Finance Department 2
Welcome/Introduction Finance Team Changes ◦ Departures Blanca Padron, Finance Deputy Director Connie White, Finance Systems Division Director Maria Rivero, Assistant Controller ◦ New Staff and Roles Barbara Gomez, Finance Deputy Director Maria Hernandez, Assistant Controller ◦ Changing Landscape
Miami-Dade Finance Department 3
Miami-Dade Finance Department 4
Prior Year Audit Results New GASB Pronouncements Important Dates Start of System Entries (Post Closing Entries) Year-End Accruals Vehicle Capital Leases Accounts Receivables Bank Reconciliations Petty Cash Storage Tanks Single Audit
Miami-Dade Finance Department 5
Miami-Dade Finance Department 6
GASB Statement No. 83, Certain Asset Retirement Obligations • Effective Date: Reporting periods beginning after June 15, 2018 (MDC FY 2019) • Establishes guidance for reporting on obligations that are incurred when governments retire certain
types of assets that have complex environmental impacts (e.g. nuclear reactors, wind turbines, underground septic tanks, x-ray machines, sewage treatment plants or assets with environmental disposal restrictions).
• Next Steps: All departments will be required to submit a full population of their tangible capital assets that have a legal requirement to perform future asset retirement activities related to those tangible capital assets.
GASB Statement No. 84, Fiduciary Activities • Effective Date: Reporting periods beginning after December 15, 2018 (MDC FY 2020) • Establishes general criteria for determining when a government has a fiduciary role for managing
certain types of assets. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists.
• Next Steps: Finance is evaluating the relevant criteria and will send out communication as needed.
GASB Statement No. 87, Leases • Effective Date: Reporting periods beginning after December 15, 2019 (MDC FY 2021) • Establishes a single model for lease accounting based on the foundational principle that leases are
financings of the right to use an underlying asset. Generally, all leases should be presented on the face of the balance sheet (e.g. Government-Wide) of the lessee (liability) and lessor (receivable).
• Next Steps: Require that all departments submit a full population of their operating leases to the Finance Department’s Accounting and Reporting section.
Link to GASB website for guidance: https://www.gasb.org/jsp/GASB/Page/GASBSectionPage&cid=1176160042391
Miami-Dade Finance Department 7
A legally enforceable liability associated with the retirement of tangible capital assets.
Legally enforceable = Generally, legally enforceable liabilities arise from legislation of other levels of government or contractual relationships, which may be written or oral.
Retirement = Permanently removed from service by means of sale, abandonment, recycling, or disposal of the asset
Tangible capital asset = Physical substances that are used in operations and that have initial useful lives extending beyond a single reporting period
Miami-Dade Finance Department 8
Department Consideration: Is there a significant capital asset within your Department, with complex environmental impact that would have a legally enforceable liability upon retirement?
Example of assets within scope: 1. Sewage treatment plants 2. Power plants/utilities 3. Underground gas tanks 4. Oil wells 5. Wind turbines that contractually require land restoration 6. X-ray machines or magnetic resonance imaging (MRI) machines 7. Research facilities 8. Coal strip mines 9. Nuclear research reactors
If yes, provide the Finance Department a complete listing of these assets. Send an electronic copy to Eric Herrera; Finance Department.
Miami-Dade Finance Department 9
ITEM DUE DATE NOTES Signature Authorization Forms
September 16, 2019 - Forms indicate who they should be delivered to in Finance.
Report of Collections (ROC) for cash on hand Monday, September 30, 2019 or before
October 2, 2019 - To be delivered to Finance. - ROC must be dated September 30, 2019, with fiscal period 12/2019. - Departments using Approval Path (“RIMS”) must complete input by Noon, Tuesday, October 1, 2019.
Interdepartmental Journal Entries cut-off
October 11, 2019, NOON
Entries affecting other Departments and accruals.
Intradepartmental Journal Entries cut-off
October 15, 2019 Entries affecting your own Departments.
Grant adjustment Journal entries cut-off
October 15, 2019
Fund Financial Statement Folders
November 8, 2019 - Submit to Patrick Price. - Please follow included checklist and sign off. - Important: include detailed variance analysis narrative.
Miami-Dade Finance Department 10
Deadlines and cut-offs:
Automated Charges- FY2019 (energy, telephones, mobile equipment)
To be processed no later than September 27, 2019
Payroll accruals Will be posted September 25, 2019
1st Preliminary Rollover Reports Available in OnDemand and in Data Warehouse Monday, October 7, 2019
2nd Preliminary Rollover Reports Available in OnDemand and in Data Warehouse Monday, October 14, 2019
Final Year-End Reports Available in OnDemand and in Data Warehouse Monday, October 21, 2019
Miami-Dade Finance Department 11
Billing and Reports:
Goal…Reduce number of post-closing adjusting entries or Start Of the System entries (SOS)
Review adjusting entries posted in FY2018/Mo. 13 in FAMIS (screens 6400 -Trial Balance & 6750 - Income Statement) for possible adjustments in FY2019, and process entries before closing whenever possible
Provide adequate supporting documentation and clear description with entries. All SOS entries are audited.
Reminder: If moving expenses from one fund to another include description, document reference number, and check number, for each line. Needs to be traceable.
Miami-Dade Finance Department 12
Review prior year accruals and determine whether reversal is required.
Supporting documentation for all accruals is required and has to be submitted with all journal entries.
Accrue FY 2019 invoices not processed by Accounts Payable deadline of October 10, 2019 but for which goods and services were received prior to September 30, 2019.
Do not accumulate old year invoices for payment in the New Year.
If an audit adjustment is proposed by the external auditor, we will notify you of amount of accrual.
Miami-Dade Finance Department 13
Departments under the Vehicle Capital Lease program must submit reimbursement packages to Bond Administration no later than September 16, 2019 in order to post in FY 2019. These reimbursement must be processed prior to closing.
Miami-Dade Finance Department 14
Review A/R as of 9/30/19 and related revenues to ensure that only amounts expected to be collected by December 31, 2019 are recognized as revenue.
Revenues related to A/R’s not expected to be collected by December 31, 2019 must be reversed and recorded as Unavailable Revenue (GL 244, subsidiary required). Refer to GASB 65.
Prior year audit finding
Miami-Dade Finance Department 15
When preparing bank reconciliation please:
include evidence of review by both a preparer and a reviewer and
prepare on a timely basis throughout the year – deadline is 30 days after month-end. Avoid Management Letter comment.
All FY 2019 bank reconciliations are due to Lourdes Julien by October 30, 2019. Make sure you are reconciling to the FAMIS cash balance after the final close.
Miami-Dade Finance Department 16
As stipulated in the AO, departments are responsible for : ◦ establishing written departmental Petty Cash Fund
procedures, ◦ ensuring a secured on-site storage facility to
safeguard the funds, ◦ immediately notifying the Finance Director of
changes in custodian via “Petty Cash/Change Fund Change Form”, and ◦ performing independent verifications of petty cash
usage and balances at least annually.
Miami-Dade Finance Department 17
For departments that manage storage tanks: ◦ It is the department’s responsibility to make sure
that the storage tank list is up-to-date. ◦ The list can be found in the Finance Department
website as part of the State of Florida Certification of Financial Responsibility and Storage Tank Local Government Bond Rating Test (http://www.miamidade.gov/finance/library/financi al-responsibility-certification.pdf). ◦ Any changes to the list (additions or deletions)