january 18, 2011. general ledger update month-end process other updates project costing cleanup ...

ENCOMPASSTOWN HALL MEETING

January 18, 2011

Agenda General Ledger Update Month-End Process Other Updates Project Costing Cleanup PEN Products Process Document Approvals SDO Process Q&A

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GENERAL LEDGERUPDATE

General Ledger Update

Recent change AOS GL Audit Procedures

Journal Entries Approve/Recycle – Notifications Payroll Allocation

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GL Journals –Requirements for saving journals

GL journal must have valid values entered on for core chartfields: Fund, Program, Account, Department and Budget Reference.

At least one line must have BU that matches BU on journal header.

Done so that Journals can’t post with blank core chartfields

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AOS GL Audit Procedures

Journal Entries AOS approves Journal Entries from Worklist Document Retention

Hardcopy of journal entries/backup not required for approvals.

Documentation is required in response to audit questions.

Document corrections must be done within 3 months of the original document date

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AOS GL Audit Procedures

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Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-100

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

JE Approvals by Month

AOS GL Audit Procedures Journal Entries – Journal Header

Required Fields Long Description – Detailed explanation of entry

purpose Ledger Group – ACTUALS Source – Any valid value except IDB, PAY and

subsystem sources (AR, AP, AM, …) Optional Fields

Reference Number Journal Class

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Long Description If you are doing allocation or correction in

G/L: - List original document and BU (if

different than yours) for corrections - List time period when

expenses/revenue were originally recorded for allocations

- List which chart fields you are correcting/ allocating

- If only moving portion of original amount, include either original amount or line number from original entry.

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Long Description List any MOU or Indiana Code (I.C.)

citation that authorizes you to do entry List person’s name if someone has given

you permission to do unusual entry (does not preclude requirements on prior slide)

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AOS GL Audit Procedures Journal Entries

Journal Status and Budget Status – must be Valid to submit

Lines should be entered in debit/credit order if possible

Required ChartFields Account – only use these in special cases:

Cash (11xxxx), Liabilities (2xxxxx), Internal Service Funds (64xxxx & 65xxxx), Transfers (74xxxx & 75xxxx), Fund Balance (3xxxxx), Fixed Assets (55xxxx)

Fund Department Program Budget Ref

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AOS GL Audit Procedures Journal Entries

Approvers – please review chartfields for correctness, especially Budget Reference and Account

Budget Reference should be 2011 Account should start with 4, 5, 64 or 65 in

all cases 74 and 75 accounts are for Budget Agency

use only

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AOS GL Audit Procedures Journal Entries – continued...

All Agency approvals must be complete before AOS will approve.

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Approve/Recycle – Notifications Approve - No notification

Monitor queries or online approval pages SOIGL024 –

Journals not posted provides approval status Approved/posted journals will not appear in the query

results

Recycle Notify initiator via e-mail

AP corrections must be done via GL Journal Entries Long description - details of transaction being

corrected Journals not approved by month-end should

be copied to new month or deleted by agency. AOS will delete them after 3 business days

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Payroll Allocations AOS creates the GEAC payroll entries

Agencies provided ENCOMPASS with default ChartField string by Level 3/4/5 (old fund center) – updated every Friday on ENCOMPASS website

To change default payroll mapping, submit GMIS issue

Agency responsible for allocation from defaults to actual payroll distributions AOS reviews allocation entries to verify Payroll

Expense Accounts are not over-allocated

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MONTH-ENDPROCESS

MONTH END REMINDER GL Deadlines for Remainder of Fiscal Year

Submit to AOS by 4:30 PM Closing Date

Jan Feb 3 Feb 7 Feb Mar 3 Mar 7 Mar Apr 4 Apr 6 Apr May 4 May 6 May Jun 3 Jun 7 Jun Jul 1 Jul 6

GL entries not approved/posted before month is closed must be copied forward or re-entered in the next month.

Entries will be deleted after 3 business days 17

MONTH END PROCESS - AP Closes on the Last Day of the Month Transactions are posted to AP after

edited and budget checked whether or not they are approved

Posted in AP and then GL in nightly batch process

Please do not submit AP items to AOS if they have edit errors or budget checking errors

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MONTH END PROCESS - AR Per State law, agencies are required to

deposit cash received no later than 1 business day following receipt of funds.

Accounting Date = date Treasurer approves deposit

Deposits approved by Treasurer and completed by Agency Approver in AR will budget check and post to GL in nightly batch process

Must enter and approve accounting entries by 7 PM on last day of month for revenue to count

Accounting entries should be entered and approved the same day as the deposit is made

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MONTH END PROCESS Monthly GMIS workshops to help

agencies with processing items will resume in March

Pagelets / queries should be used to monitor outstanding items from the previous slides

See the ENCOMPASS website calendar for the complete schedule and for the training schedule

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UPDATES

Year-End Preparation Like last year, we need your help in getting

documents processed in preparation for year-end

Clean Up queries posted monthly at ENCOMPASS Documents 2011 Document Cleanup

Each of us is accountable for the success of our agencies with respect to year-end

Accountable for accuracy of accounting transactions Periodic review of Alchemy reports should be

done Please do not submit AP items to AOS if

they have edit errors or budget checking errors

Year-End Preparation All Funds with Negative Appropriation

Balances must be addressed before the books are closed

State Budget Agency has pre-loaded FY12 budgets

PO Rollover will be run again in June More information to follow

Periodic review of Fund Trial Balance in Alchemy should be done to identify errors

Year-End Preparation New public queries have been developed

to monitor Reqs and Purchase Orders without recent activity

SOIPO_NO_RECENT_ACTIVITY_AMTS – Shows POs by BU entered before and with no payments after a prompted date. Includes dollar amounts.

SOIPO_NO_RECENT_ACTIVITY_PYMNT – Shows POs by BU entered before and with no payments after a prompted date. Includes last payment date.

SOIEP_NO_ACTIVE_PO_DETAIL – Shows reqs entered before a prompted date that are not tied to any open POs. Includes dollar amounts.

Asset Management FY11 Clean Up continues Monthly Close / Depreciation entries

on horizon AM Town Hall Meeting

Jan 25, 11 10:00 AM – 12:00 PM, Conf Rm B

AP – SOIAPOO8 query This query should be run and

reviewed for pre-auditing vouchers (prior to agency approval) Especially when using control groups

Should also be used as resource to verify outstanding AP transactions and for month end clean up

Please do not submit AP items to AOS if they have edit errors or budget checking errors

PROJECT COSTING CLEANUP

Project Costing Cleanup All agencies using projects attended GMIS

workshop Phase B Query clean up should be

complete by now Ongoing monitoring of pagelet/queries is crucial

to success Next sub-phase: Run Project Costing

Reports for 2010 A-133 data With agencies’ permission, FND rows will be re-

generated Next phase: Reconciliation of Projects and

Funding Sources to Appropriations in Federal Fund

All phases need to be complete by April 1st

Project Costing Cleanup Prior to Sept 2010, payroll journals

were not generated to PROJ_RESOURCE. This problem was corrected going

forward. Pre-Sept 2010 payroll journals will be

pulled into PROJ_RESOURCE by defaulting the GLE analysis type and resetting the distribution status for Project Cost Collection.

Project Costing Cleanup Agencies should be using the

Checklist in Appendix A of the Project Costing Job Aids to insure compliance with the model and to prevent future cleanup

Don’t forget to enter budget journals to increase APPROP, ALLOT_CTRL, ALLOT budgets for Federal Funds when a new funding source is set up for a grant award

CONGRATULATIONS!!!

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AND MANY THANKS TO THESE BUSINESS UNITS WHO HAVE SUCCESSFULLY “CLEANED UP” THEIR PROJECTS AND ARE IN COMPLIANCE WITH ENCOMPASS PROJECT COSTING PROCESSES.

THIS PROJECT, WHEN COMPLETED, WILL ENABLE ALL TO RUN CUSTOM REPORTS FOR FEDERAL REPORTING AND BE CONFIDENT THAT THE CONTENT OF THESE REPORTS IS ACCURATE.

BYE, BYE, SPREADSHEETS!!!

“GREEN” AGENCIES IN PROJECT COSTING BU00022 – Supreme Court BU00035 – Gov Council for People

w/Disabilities BU00038 – Lt. Governor BU00044 – Protection Advocacy Services BU00057 -- State Budget Agency BU00058 -- Tobacco Prevention &

Cessation BU00061 -- Dept. of Administration BU00063 -- Election Board BU00090 -- Dept. of Revenue BU00200 -- Utility Regulatory

Commission BU00225 -- Dept. of Labor BU00250 – Professional Licensing Agency BU00258 -- Civil Rights Commission BU00260 -- Economic Development Corp BU00263 -- Housing and Comm. Dev. BU00285 -- Public Safety Training Inst. BU00286 –Integrated Public Safety

Comm BU00322 -- Kankakee River Basin Comm BU00385 -- Dept of Homeland Security BU00400 – Dept of Health BU00405 -- Family & Social Services

Admin. BU00410 -- Division of Mental Health BU00415 -- Evansville Psych Children Ctr

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BU00435 -- Logansport State Hospital BU00550 – School for the BlindBU00560 -- School for the DeafBU00570 -- IN Veteran's Home BU00580 -- Soldiers/Sailors Children's HomeBU00607 -- Henryville Corr. FacilityBU00610 -- Public Defender CouncilBU00615 -- Dept. of CorrectionBU00616 -- North Central Juv Corr FacilityBU00630 -- Pendleton Corr FacilityBU00635 -- Corr Industrial FacilityBU00650 -- Putnamville Corr FacilityBU00655 -- Pendleton Juv Corr FacilityBU00667 -- Madison Corr FacilityBU00675 -- Branchville Corr FacilityBU00685 -- Rockville Corr FacilityBU00687 -- South Bend Juv FacilityBU00690 -- Plainfield Corr FacilityBU00700 -- Dept. of EducationBU00705-- IN Arts CommissionBU00715 -- State Student AssistanceBU00718 -- School Lunch Div – DOEBU00719 – Comm for Higher EducationBU00720 -- Faith Based & Community InitiativesBU00730 -- State Library

PEN PRODUCTS PROCESS

PEN Products Process Effective February 1, 2011 the PEN

Products Interagency Billing process will be going away! Moving forward, payments to PEN

Products will be treated like paying any other vendor

PEN will no longer build vouchers on the agencies’ behalf

PEN Products Process The payment process will be more

streamlined and consistent with all other vendor payments PEN will issue an invoice and the

purchasing agency will create an AP voucher copied from the appropriate PO Receipt

There are no changes to the process for placing orders with PEN Products Internal Service Accounts Must Still

be Selected on the PO

PEN Products Process There is a updated document posted

to the ENCOMPASS website outlining this process The document is located under

ENCOMPASS Documents>Training Documents>Accounts Payable>PEN Products Information>PEN Ordering and Payment Process

APPROVALS – A CRITICAL STEP

Importance of Approvals

If errors are made by entry staff in Fund, Department, Program or Account, it is the responsibility of the agency approver to deny the transaction and send back to the entry staff to correct.

This is important in ALL ENCOMPASS modules; transactions should be error-free when moved to AOS and should have NO edit or budget checking errors.

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Negative Results of Incorrect Entries ePro – Encumbrances might be to the

wrong fund or account, affecting budget decisions.

AP – Expenditures and related payments in wrong chartfield (fund, department, account, project, etc.) will result in errors in financial information.

AR – Deposits made to wrong chartfields result in money in incorrect fund or revenue account. Also, all entries must be made and approved by last day of month to be included as revenue for the month.

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Negative Results of Incorrect Entries GL -- Expenditures and subsequent

payments in wrong chartfields will result in errors in financial information and financial statements.

AM – Assets in wrong category result in incorrect asset depreciation; also possible non-asset items entered as assets.

Garbage In, Garbage Out -- When incorrect entries are approved and posted, output from the system will be incorrect. Many management decisions, both at the agency and State level, are made based on this output. This could also result in audit findings.

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Negative Results of Incorrect Entries

DO NOT DEPEND ON AOS TO CORRECT THESE ERRORS; IN MANY CASES, ONLY THE AGENCY KNOWS THE CORRECT CHARTFIELDS.

We strongly encourage agency approvers to attend the entry classes in order to fully understand this process.

SDO PROCESS

SDO Process The entire SDO process, including some

system processes, has recently been revised and is in the State Accounting Manual, chapter 6, section 6.4.10. A flowchart showing these processes is in 6.5.4 (Appendices).

Remember, the SDO checking account is to be used mainly for non-repetitive purchase that must be paid immediately. Most purchases can be paid through the AOS, as they now process these quickly and also process special requests when needed.

ITEMS OF INTEREST A section for closing SDO accounts has

been added in 6.4.10.11 and in the flowchart.

If manual check entries, to verify accuracy of entries, prior to Record and Save, run query SOIAP008.

If system check entries, run this query to verify accuracy prior to agency approval of payment.

If bank fees are charged to SDO account, enter one voucher for total fees for month (see 6.4.2.5 for detail).

ITEMS OF INTEREST Apply for AOS reimbursement ONLY

after your checks clear the bank. How to know whether checks have

cleared bank?Run SOI_SDO_PAYMENT_DETAIL public query. Use of this query can help you avoid requesting reimbursements prematurely and possibly requesting reimbursements more than once for the same payment. It can also help to avoid duplicate check entries.

SDO PAYMENT DETAIL QUERY

SDO Payment Cancel SDO Pmt SDO SDO Vchr

LPN number Fund Payment # Status Status Action Date Voucher Account Amount

0444395000 60420 0000005989 Paid REC No Cancel 5/17/201000003468 591020 18.480







0444395000 60420 0000005991 Paid UNR No Cancel 9/20/201000003649 599093 50.000



0444395000 60420 5988A Paid REC No Cancel 1/21/201000003280 591020 42.000

0444395000 60420 5988A Paid REC No Cancel 1/21/201000003280 591020 54.000

0444395000 60420 A5988 Paid REC No Cancel 4/6/201000003412 591020 42.000

0444395000 60420 A5988 Paid REC No Cancel 4/6/201000003412 591020 54.000

0444395000 60420 SC12010 Paid REC No Cancel 4/7/201000003281 592010 0.720




SDO Payment # = Check numberPayment Status = Paid indicates cleared bankStatus = Whether reconciled or not (UNR)

SDO PAYMENT DETAIL QUERY

SDO SDO Vchr Reimb Reimb Pay Reimb Pmt Reimb Reimb

Voucher Account Amount Status Pmt # Status Status Action Date Voucher Pmt Amt

00003468 591020 18.480Paid 003984236 REC P N 5/28/201000003503 56.000

00003468 591020 28.560Paid 003984236 REC P N 5/28/201000003503 56.000

00003468 591020 6.160Paid 003984236 REC P N 5/28/201000003503 56.000

00003468 591020 2.240Paid 003984236 REC P N 5/28/201000003503 56.000

00003469 591020 12.760Paid 003984236 REC P N 5/28/201000003504 44.000

00003469 591020 14.520Paid 003984236 REC P N 5/28/201000003504 44.000

00003469 591020 3.080Paid 003984236 REC P N 5/28/201000003504 44.000

00003649 599093 50.000Paid 004160580 REC P N 9/24/201000003660 50.000

00003232 599036 51.840Paid 003936350 REC P N 4/29/201000003446 96.000

00003232 599036 44.160Paid 003936350 REC P N 4/29/201000003446 96.000

00003280 591020 42.000Submitted 0.000

00003280 591020 54.000Submitted 0.000

00003412 591020 42.000Paid 003936350 REC P N 4/29/201000003444 96.000

00003412 591020 54.000Paid 003936350 REC P N 4/29/201000003444 96.000

00003281 592010 0.720Paid 003936350 REC P N 4/29/201000003445 36.000

00003281 592010 0.720Paid 003936350 REC P N 4/29/201000003445 36.000

00003281 592010 11.880Paid 003936350 REC P N 4/29/201000003445 36.000

00003281 592010 10.800Paid 003936350 REC P N 4/29/201000003445 36.000

Reimb Status = Whether Submitted to or Paid by AOSReimb Date = Date reimbursed by AOSReimb Voucher = AOS AP voucher number

ITEMS OF INTEREST Voided checks? All checks must be

accounted for in ENCOMPASS. See 6.4.10.10.1 for details.

Return of excess SDO balance – issue SDO check to AOS, charging expenditure account 599981, Return of Excess SDO Balance; this account is not subject to budget checking. Do not include this in future reimbursement requests.

Watch for info in the near future about system reconciliations and what to do with outstanding checks over 2 years.

REMINDERS / Q & A

Reminders Make sure GL staff receives slides Please continue efforts on Project Costing

cleanup Importance of Approvals Now is the time to prepare for year-end AM Town Hall next week

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Contact Information (cont.) ENCOMPASS Website

http://myshare.in.gov/sba/encompass If you are having technical issues,

submit them to GMIS https://financial.gmis.in.gov/psc/guest/

EMPLOYEE/ERP/c/SOI_CUSTOM_APPS.SOI_GMIS_ISSUE.GBL

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We Welcome Your Feedback / Questions / Comments

Contact Information Steve Daniels, Auditor of State’s Office

e-mail: [email protected] phone: (317) 233-9817 Ryan Downham, Auditor of State’s Office

e-mail: [email protected] phone (317) 234-1626 Joe Fistrovich, State Budget Agency

e-mail: [email protected] phone (317) 232-2974 Paul Jasheway, GMIS

e-mail: [email protected] Kim Logan, Treasurer of State’s Office

e-mail: [email protected] phone (317) 233-0921 Marilyn Rudolph, State Board of Accounts

e-mail: [email protected] phone: (317) 234-4929

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