joe fistrovich, controller, state budget agency steve daniels, deputy auditor, auditor of state june...
TRANSCRIPT
Joe Fistrovich, Controller, State Budget Agency
Steve Daniels, Deputy Auditor, Auditor of State
June 7, 2012
Introduction /Background on State Chart of Accounts and Accounting System
Budget Close PO Rollover Year-End Cleanup Financial Close Balancing Budget with Financial Ledgers Questions
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FUND 5 digits - Primary means for tracking and
relating specific sources and uses of revenues or budget authority
Generally, do not cross Agencies Multiple Attributes are assigned to each Fund
value to assist with Financial, Budgetary, Federal and Capital Project Reporting
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LEGAL FUND (ATTRIBUTE OF FUND): 4 digits - collection of Funds Reporting Level for Financial (CAFR) and
Budgetary (Budget Bill) 1000 = General Fund If Funds are appropriated by Budget Bill or
Federal Grant is received, new Legal Fund is created
Legal Fund for Federal Funds = by Federal Granting Agency
Budget Agency Revenue Forecast Tracks General Fund Revenue, Control 3 Funds
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CONTROL CODE (ATTRIBUTE OF FUND): Control Code 3: Appropriations Revert;
Receipt of Revenue has no Budget Impact Control Code 4: Biennial Appropriations;
Receipt of Revenue has no Budget Impact Control Code 5: Non-Reverting; Receipt of
Revenue increases Appropriations Control Code 6: Non-Reverting; Receipt of
Revenue increases Appropriations and Allotments
Control Code 7: Non-Reverting; Receipt of Revenue has no Budget Impact
Used for Federal grants and Capital projects
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ACCOUNT One set of values used across all agencies First digit represents major financial reporting classification:
Balance Sheet 1 = Assets, 2 = Liabilities, 3 = Fund Balance
Income Statement 4 = Revenues, 5 = Expenditures 6 = Internal Service Fund Revenues “64” and Expenses
“65” 7 = Other Financing Sources “74” and Uses “75”
Rarely used by anyone except AOS, SBA
Separate set of Accounts for Budgetary control / ledgers
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Projects (Federal grants & Capital Projects)
General Ledger / Commitment Control
Purchase Order (ePro)
Requisition (ePro)
Asset Management
Billing
Accounts Receivable
Time & Labor
PeopleSoft Human Resources
Inventory
RFQ (ePro)
Receiver (ePro)
Travel& Expenses
Accounts Payable
All GL Entries must balance at the Fund Level. When an entry doesn’t balance, System inserts lines with InterUnit/InterFund Cash (111500) to make it balance. Inter Unit account is considered to be part of Cash
Balance of Fund Entries must have valid Edit and Budget Checking
Status to post to GL System summarizes the Subsystem entries each
day by chart string, so if there are 10 deposits that have the same chart string, they will result in one entry in the General Ledger. Details exist in the subsystem
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Commitment Control Module – Accounts start with E
APPROP Ledger – Appropriations established by General Assembly
(Budget Bill) or Federal Grant Award Controlled Ledger (can’t be exceeded without
override)
ALLOT_CTRL Ledger – allows Control at Personal Services / Other Than Personal Services level
ALLOT Ledger – Tracking purposes for agency use
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Biennial Budget Bill passed in odd-numbered year of General Assembly
Funds in Budget Bill – fixed appropriation unless augmentation authority explicitly granted
Some Funds not in Budget Bill Federal Funds – Grant Award sets
appropriation Dedicated Funds – supported by revenue
received
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Agency Spending Plans Quarterly – how will agency stay within
budget Special focus on General Fund ALLOT_CTRL, ALLOT reflect spending plan Reserve requirement – money not allotted
Administrative Action SBA moves money within an agency, usually
monthly State Board of Finance
SBA/AOS/TOS move money between agencies13
Goal – push documents through the system and abide by AOS/IDOA year-end deadlines AP – vouchers must post, budget
errors resolved AR – deposits made at TOS,
accounting entries completed GL/AM – entries made by deadlines
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Daily / Weekly monitoring of Funds with negative APPROP balances Goal : no Funds negative at year-end close
Administrative Actions as needed State Budget Agency has pre-loaded FY13 1st quarter
allotments.
Initial Budget Allotment schedules and 1st Quarter Transfer List (matching funds) to be loaded by July 1st.
Balance General Fund with AOS
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No outstanding requisitions at year-end Either Purchase Order or start again in new
year PO will retain Budget Reference, but
Budget Periods will become 2013.
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Agency staff will not be allowed in PeopleSoft from 4:00 PM on June 29th until 8:00 AM on July 1st (Indy time)
Budget Close withdraws budgets in current year and prepares budgets in new year Need to operate at beginning of July until
financial close is complete
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FY12 ALLOT_CTRL and ALLOT ledgers will be reduced to zero using Budget Close process.
FY12 Budget for non-reverting Control 7 Funds are manually rolled forward to FY13 for ledgers based on APPROP available balance.
Control 5 and 6 Funds will be manually rolled forward to FY 13 based on available cash balance.
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AP: Pay vouchers by June 30th – insure payments made from current budget year
GL: Post journal entries as soon as possible after June 30th
AM: Close AM books (separate ledger) as soon as possible after June 30th
Balance General Fund reserve with SBA Make Statutory Transfers (Rainy Day Fund,
Build Indiana Fund) Monitor Fund and Legal Fund Cash Balance
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Deadline for submitting FY12 Journal Entries and ID bill Journal Entries to AOS 4:30 PM June 22nd
Automatic exception for allocating June 13th, June 20th and June 27th payroll entries Deadline for these entries is 4:30 PM July
2nd No exceptions!
June 27th payroll will be loaded by morning of June 25th (potentially June 23rd)
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Agency staff will not be allowed in PeopleSoft from 4:30 PM on July 13th until 8:00 AM on July 16th (Indy time)
Necessary to allow processing of Financial Close
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Appropriations in Control 3 Funds are pre-funded with “cash” from the Legal Fund Done via “Intrafund transfers” from
Closing Center (ends in 99) - eliminated
Year-end treatment depends on: Account Type
Balance Sheet balances roll forward Income Statement balances close
to Fund Balance and start new year at $0
Control Code of Fund
Example – 1 Fund in General Fund - Budget Agency $1,000 Revenue Estimate $1,000 Budget 3% Reserve Requirement ($970 Allotments) $970 in Expenses $1,050 in Revenue
Cash is deposited at TOS, but recorded in AOS Fund
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InterUnit 111500
BB Approp 750002
BB Approp 740002
Fund
10520
Budget Agency
1000
InterUnit 111500Fund
10099
Closing Center
1000
1000
1000
Bal =
-1,000
Bal =
-1,000
Bal =
1,000
Bal = 1,000
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InterUnit 111500
Cash 110100
Salaries & Wages 510101
Fund
10520
Budget Agency
970
InterUnit 111500Fund
10470
Auditor of State
970
970
970
Bal =
970
Bal =
970
Bal = 30
Bal =
-970
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InterUnit 111500
Cash 110100
Sales Tax 412010
Fund
10520
Budget Agency
1050
InterUnit 111500Fund
10470
Auditor of State
1050
1050
1050
Bal =
-1,050
Bal =
-1,050
Bal = 1,080
Bal =
1,050
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July 1st – June 30thPeriod 0Period 996
Period 999
State Fiscal Year
BeginningBalance
Adjusting Entries
Ending Balance
Control Code of Fund Control Code 3: Asset Balances swept to Closing Fund
(same first 3 digits but last 2 are 99) Cash left behind for AP and Encumbrances only Fund Balance account 311300 (Unassigned) is
used
Control Code 4: Odd year – works like control 3 Even year – works like control 5
Control Code 5, 6, and 7: Retain asset balances Income Statement accounts close to Account
311310 (Assigned) Certain Fund Types close to Restricted,
NonSpendable or Committed
Before Year-End Close is run, allocations are run to Close out InterUnit Cash to Cash
All balances in 111500 moved to 110100 Made in adjustment period – special prefix in Journal
ID (FYA) Revert Asset Balances for Control 3 Funds
Asset Balances swept to Closing Fund (same first 3 digits but last 2 are 99) in same Legal Fund
Except cash is left behind for Accounts Payable not yet paid
Made in adjustment period – special prefixes (FYC, FYD, FYF)
Sweep Revenue received for Federal funds to Closing Fund
Revenue balances and associated cash swept to Closing Fund
Made in adjustment period – special prefix (FYH)
When Year-End Close is run, Income Statement Accounts are closed out to Fund
Balance Year begins typically with balances in Cash (110100)
and Fund Balance (311300 or 311310) Query or inquiry results with periods 0 through 999 for
revenue or expense accounts will show $0 balance Query or inquiry results that include periods 1 through
999 for balance sheet accounts will not include amounts that rolled forward from a prior year
Fund Balance accounts are rarely used throughout year only for material correcting entries where revenue or
expenses have closed to fund balance
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InterUnit 111500 Sales Tax 412010Fund
10520
Budget Agency
1080 1050
1600
InterUnit 111500
Cash 110100Fund
10470
AOS Fund
80 80
InterUnit 111500
BB Approp 750002Fund
10099
Closing Center
1000 1000
BB Approp 740002
1000
Salaries & Wages 510101
970
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InterUnit 111500 Sales Tax 412010Fund
10520
Budget Agency
1080 1050
InterUnit 111500
Cash 110100Fund
10470
AOS Fund
80 80
InterUnit 111500
BB Approp 750002Fund
10099
Closing Center
1000 1000
BB Approp 740002
1000
Salaries & Wages 510101
970
Fund Balance 311300
80
Cash 110100
80 80
801000
1080 97010001050
1000
Budget Agency reports $1,000 Budget $80 Reserve Balance consists of
$30 Unspent Appropriations (Reversions) $50 Revenue Over Forecast
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From State Budget Agency website: Budget Information, Fiscal Year Close-Out Statements
General Fund Reserve must be positive
$0.06 in FY02
Automatic Taxpayer Rebate?
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Steve Daniels, Auditor of State’s [email protected] (317) 233-9817
Joe Fistrovich, State Budget [email protected] (317) 232-2974
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