Welcome to theBusiness Users Group

Thursday, May 5, 2005

1:00 – 4:30 pm

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Today’s Agenda

• Welcome and Opening Remarks • Announcements• Presentations

– Encumbrance Process– Fixed Assets– Timeline for Closing the Books– End-of-Year Checklist

• Expert Assistance

Announcements

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Pre-Note Functionality

• The vendor pre-note inquiry may indicate why a payment has not processed.

• Click on Pre-note Inquiry/Update

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• Enter the Vendor’s Address Book number in the Address Number field.

• Click Find.

Pre-Note Functionality

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• If a date appears in the Prenote Date field, payments to the vendor will not process until the day after that date

Pre-Note Functionality

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Financial Reporting Package

• Accrual Information Form– Don’t have to report IBTs

• Lease Response Form

• Cash and Investments Form

• Nonmonetary Transactions Form

• Capital Grant Reporting Form

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Document Type P9• When entering an accounts payable

transaction for a FY 2005 obligation, use the menu for prior year payables.

• Use Voucher Entry with or without PO

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Audit Process

• State Auditors are doing the CAFR audit this year.

• Timeline is different from the past.• Be sure and notify State Accounting when the

auditors arrive in your office to do any CAFR, single audit, or other review work.

• This also holds true for any federal or outside auditors.

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ACH Payments

• Vendors do not get all payment information now.

• There is a new national procedure coming soon.

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Payroll Card

• Available to employees soon!• How will it work?• U.S. Bank program

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Changes to State Accounting Website

• Checklists• Chart of Accounts• Contact Information• Capital Outlay Policy

ENCUMBRANCESENCUMBRANCES

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I OWE, I OWE,

SO

ENCUMBERING

I MUST GO !

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What is an Encumbrance?

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Encumbrances

Transactions that represent a valid financial obligation of a

fiscal period for which appropriation should be

reserved to meet that financial obligation.

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Certified Encumbrances

Valid encumbrances that an agency chooses to reserve to

meet a future financial obligation.

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Valid Encumbrance (State Statute 81-138.01):

• A purchase order is issued, but the goods and accompanying invoice were not received and paid during the same biennium;

• Goods or services were received, but an invoice has not been received and paid;

• Goods or services and an invoice were received, but payment could not be made during the same biennium;

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Valid Encumbrance (State Statute 81-138.01):

• Salaries have been earned and are payable to the employees, but have not been paid as of the end of the biennium as a result of pay periods not being consistent with the end of the biennium

• Higher education institutions may encumber payrolls for the remainder of the summer session which is in progress at the end of the state's biennium if they have been budgeted and appropriated in such manner.

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Valid Encumbrance (State Statute 81-138.01):

• A written agreement for a grant or award to distribute aid was signed but was not paid during the same biennium.

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There are four ways in NIS to identify prior year obligations:

• Prior Year Voucher Without P.O.(P9 transaction created in expense accounts)

• Prior Year Voucher With P.O.(P9 transaction in the Received not Voucher Payable)

• Manual Encumbrance(J9 transaction created in Journal Entries)

• Automatic Encumbrance(Purchase Order Transaction)

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• Use the Prior Year Voucher Processing Menu

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Prior Year Voucher With P.O.

This transaction is created when a purchase order is created after June 30, for a prior year obligation.

The purchase order did not exist on June 30 so it is not included in the outstanding purchase orders at June 30 (PC ledger).

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Prior Year Voucher With P.O. (continued)

When received an expenditure is created but it is not identified with a P9 since it is not a voucher transaction.

A Received Not Vouchered Payable is created as an OV transaction type.

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Prior Year Voucher With P.O. (continued)

When the voucher is processed, a three way match occurs.

Using the PRIOR YEAR VOUCHER PROCESSING Menu, the accounts payable entry and the offsetting Received Not Vouchered Payable entry (Debit to Object Code 211700) are created as a P9 transaction.

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Prior Year Voucher With P.O. (continued)

The Biennial Carryover Report is designed to look at the P9 transactions in the Received Not Vouchered Payable Liability object code.

Dates are checked to insure that RNV P9 documents associated with purchase orders created before June 30 are not included. This would double the encumbrances.

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Prior Year Voucher With P.O. (continued)

The Purchase Order number is identified and the related expenditure account is looked up on the purchase order.

These transactions are identified as a P9 transaction on the Biennial Carryover Report and the Encumbrance Detail Report.

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Manual Encumbrances• Can be entered in two different places

Agency Budget Menus

General Accounting Menus

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• Agency Budget Menus– Click on Enter/Adjust Manual Encumbrances

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• Click Add.

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• Enter J9 in the Doc Type/No/Co field.• Ledger Type automatically populates with PB.

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• General Accounting Menu– Click on Journal Entries with Debit/Credit Format

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• Click Add

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• Enter J9 in the Doc Type/No/Co field.• Change the Ledger Type from AA to PB.

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Manual Encumbrance Steps

Doc Type J9 Fund G/L Date – using today's date Explanation – such as 'To encumber prior year' Ledger Type PB

Transaction must be APPROVED and POSTED

in the month created.

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Types of Manual Encumbrances

• Payroll

• Grants that have been awarded but not paid.

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Automatic Encumbrance

Purchase Orders that were open at June 30, 2005.

State Accounting takes a “snapshot” of all open purchase orders at June 30 and records that information in the PC Ledger.

(This is a mirror image of the PA Ledger at June 30.)

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Certification Process

• July 5, 2005 – August 31, 2005

Enter Vouchers using PRIOR YEAR VOUCHER PROCESSING menu.

• September 2, 2005

August 31, 2005 Certified Biennial Carryover Report available for review

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Certification Process (continued)

• July 11, 2005 – Run the Encumbrance Detail Report (NIS 594A) to ensure that your encumbrances are recording correctly.

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• Choose the Standard Version (NIS0001) and click Select.

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• Do not change ANYTHING on this Data Selection.

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• Ending Fiscal Year is the year just completed• Transactions dated through this date will be

selected.• PUT IN YOUR AGENCY NUMBER!!

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• On the Printer Selection window, be sure CSV is checked on the Document Setup Tab.

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$9,478.97

$19,294.64

$1,056.22

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$1,056.22$19,294.6

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Certification Process (continued)

August 1, 2005

• State Accounting will run a 7-31-05 State Wide Biennial Carryover Report.

• Review the Encumbrance Detail Report to ensure that amounts agree to the Biennial Carryover Report.

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Certification Process (continued)

September 2, 2005

• August 31, 2005 Certified State Wide Biennial Carryover Report on the State Accounting website for review.

August 29, 2005

• August 26, 2005 State Wide Biennial Carryover Report on the State Accounting website for review. Review carefully to ensure it is accurate.

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Certification Process (continued)

September 9, 2005

• August 31, 2005 Certified State Wide Biennial Carryover Report signed by Agency Director due to State Accounting.

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Certification Process (continued)

September 9-26, 2005

State Budget will review Certified Encumbrances and provide re-appropriations.

September 28, 2005

State Accounting will load Re-Appropriations into Budget Status after Agency approval.

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KEY DATES

• July 5 – August 31

Enter Vouchers• July 11

Run Encumbrance Detail to ensure accuracy• August 1

State Accounting runs 7-31-05 Biennial Carryover Report for review purposes. This should agree with the 7/31/05 Encumbrance Detail.

• August 29

State Accounting runs 8-26-05 Biennial Carryover Report for review purposes.

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• September 28/31/05 Certified Biennial Carryover Report available for review

• September 9 Agency Director signed copy of Certified Biennial Carryover Report due to State Accounting

• September 2 – 30State Accounting review of encumbrances

• September 30State Budget Re-AppropriationState Accounting Load Budget Status with Re-

Appropriations

KEY DATES

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Encumbrance Information

NIS Training Manuals:Training Materials>

• Budgeting > Manual Encumbrances• Mini Manuals > Manual Encumbrance• Mini Manuals > Manual Encumbrance Report• Mini Manuals > Post Certified Encumbrances Process Flash Memos:• Prior Year Obligations Memo (5-30-03)• Encumbrances (8-4-03) – links to:

– Manual Encumbrance Mini Manual– Manual Encumbrance Report Mini Manual

• Post Certified Encumbrances Process (10/15/03) – (Different from Mini-Manual; has Budget Division Process Memo)

• Allotment Status Encumbrance Detail Report (1-25-05)

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Fixed Assets

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• Run Unposted Fixed Asset Transaction Report:– After April has been closed– After May has been closed– Weekly during month of June

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• Run the F/A No Cost Integrity Report

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• Utilize Auditor’s Fixed Asset Listing to begin physical inventory

• For Work Instructions on how to run the report, navigate to the NIS Training Manuals.

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• Pay special attention to new data selection • Note: If you add a line above the line with

“Or” in the Operator field, the line will also have to be added below and vice versa.

Timeline for Closing the Books

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Monday, June 27, 2005:

• LAST DAY TO POST FISCAL YEAR END 6-30-05 TRANSACTIONS.

• This includes purchase orders and purchase order receipts, fixed assets, voucher processing, journal entry activity, etc. Agencies who require access to the system for specific June 30 business transactions can send an email to Wes Mohling, 471-0601 in State Accounting and we will determine the best way to coordinate the completion of your year-end work. State Accounting, in coordination with the NIS Team, will be monitoring the queues.

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Friday, July 1, 2005:

• Disbursements without a purchase order created and approved for new Fiscal Year ’05 (FY 05-06) – NO POSTING. (Remember to use prior year payable menu for voucher processing when appropriate.)

• Preparation for the biweekly payroll for 7/6/05 allowed for Agency HR teams.

• No purchasing activity by anyone in the State of Nebraska without authorization.

• State Accounting will roll over outstanding purchase orders at June 30, 2005 into the new fiscal year.

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Saturday, July 2 – Monday, July 4, 2005:

• FISCAL YEAR – JUNE 30, 2005 – SCHEDULED CLOSE.

• If there are outstanding issues for your agency on Friday, July 1, that will have a financial impact, contact Bruce Snyder.

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Tuesday, July 5, 2005

• NIS will be available for Fiscal Year - June 30, 2006 transactions on Tuesday, July 5, 2005.

Year-End Checklist

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Year-End Checklist

• Review monthly checklist items.• Review Balance Sheet account balances

including Received Not Vouchered Payable (Object Code 211700) for all funds to ensure balances are correct.– Received Not Vouchered Report (R5509699)

• Review open Purchase Orders to ensure the order is valid. Open POs will be rolled over to July 1, 2005.– Allotment Status Encumbrance Detail Report (R5509730)

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Year-End Checklist

• Review reports for any unusual account balances that need to be investigated and/or corrected before year end closing.

• Review the account used for the Treasurer’s Credit Card Suspense transactions (usually object 486600) to determine the need for additional journal entries.

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Expert Assistance

• Please visit an expert in the room to discuss questions and issues.– Fixed Assets – Amy Wilson and Gregg Yaussi– Accounts Payable (and PO’s) – Stacey Mundt and

Nyla Thomsen– Grants and Accounts Receivable – Ron Carlson

and Treasurer’s Office– Payroll – Shelley Reed– Budget/Encumbrances – Patty Richard and Lyn

Heaton– Security – Dwane Rauscher

Thank you for coming!

Please remember to fill out an evaluation!