Business User Group

May 7th, 2009

9:00 AM – 11:30 AM

Business User Group

• Announcements

• Presentations~ Technical House Cleaning Items~ Accounting 102~ Remark Field on Vouchers / Examples of Proper Data Entry~ Clean up Purchase Orders~ Received Not Vouchered Report~ Accounting Year End Reminders & Closing the Books

~ Biennium Encumbrances

• Questions and Answers

Today’s BUG Agenda

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Opening Remarks

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Paul Carlson

Announcements

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Pre-auditor / Internal Control Coordinator (Paul)

Technical House Cleaning ItemsBrian Svik

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Technical House Cleaning Items

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Accounting 102Paul Carlson

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Remark Field on Vouchers/Examples of Proper Data Entry

Paul Carlson & Bruce Snyder

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Voucher Processing – Invoice Number and Remark Fields

It is important to have pertinent information for the vendor in Invoice Number and Remark fields for the vendor to identify payments. This is becoming more important as more payments are made through ACH.– Invoice Number – use the supplier’s

invoice number.– Remark – use agency name and phone

number.

Remark Field on Voucher/Examples of Proper Data Entry

Cleaning Up Purchase OrdersAmy Wilson

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STATE ACCOUNTING IS SEEING• POs open that should be cancelled – Agency is not

going to receive the goods or services― Sent out listing of open POs to agencies

• Cancel date in the future

• Purchasing tables that are not the same ― State Accounting has a report that identifies faster

• Rounding

Open PO Report

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FINANCIAL PROBLEMS w/ POs• Send email to State Accounting’s mail-in database using

the following link: http://www.das.state.ne.us/accounting/nis/contacts.htm

• Select link for Purchasing • Provide in email

– Order #– Order Type – Short description of problem

Open PO Report

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http://www.das.state.ne.us/accounting/nis/contacts.htm

REMEMBER

June 30, 2009 is end of biennium and all open Purchase Orders will be

encumbrances

DON’T DON’T DELAYDELAYDON’T DON’T DELAYDELAY

Open PO Report

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Received Not Vouchered ReportAmy Wilson

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Trial Balance by Object Account InquiryNIS Menu- Accounting – Agencies > Inquiries & Reports > Accounting Inquiries > Trial Balance Inquiries > T/B by Object Account

Received Not Vouchered Report

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NIS Menu :

Accounting – Agencies > Inquiries & Reports > Accounting Reports > Received-Vouchered Reports > Received Not Vouchered Report

Purchasing – Agencies > Inquiries & Reports > Accounts Payable Reports > Received Not Vouchered Report


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Correcting theReceived Not Vouchered Account1. Reverse receipt the Purchase order

http://www.das.state.ne.us/nis/trainingmanuals/810_training_manuals/proc/111_PR_WI_L9_T1.b_Reversing_Receipts.pdf

• Post the reverse receipt batch – O Batch Type

2. Cancel the purchase orderhttp://www.das.state.ne.us/nis/trainingmanuals/810_training_manuals/proc/101_PR_WI_L8_T1.a_Revising_a_Purchasing_Document

.pdf

• Text Attachment appears - Enter reason for change, date of the change, and the initials of the person who made the change.


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Accounting Year End RemindersAmy Wilson & Bruce Snyder

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Run Fixed Asset Reports• Auditor F/A Listing Report• Unposted Fixed Asset Transactions Repor

t– Report has to be blank by June 25

• F/A No Cost Integrity– Blank by June 25 except for assets not

received *Click each report title above for work instructions on how to run the report.

Accounting Year End Reminders

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http://www.das.state.ne.us/nis/trainingmanuals/810_training_manuals/fa/COM_WI_810_FA_Running_Auditor_FA_Listing_Report.pdf

http://www.das.state.ne.us/nis/trainingmanuals/810_training_manuals/fa/COM_WI_810_FA_Running_Unposted_FA_Trans_Report.pdf

http://www.das.state.ne.us/nis/trainingmanuals/810_training_manuals/fa/COM_WI_810_FA_Running_Unposted_FA_Trans_Report.pdf

http://www.das.state.ne.us/nis/trainingmanuals/810_training_manuals/fa/051_FA_WI_L6_T5.c_Running_FA_No_Cost_Integrity_Report.pdf

Capital Projects• Make sure that State Accounting is aware

of large projects that have been started or completed within the fiscal year.

―Construction of Buildings―Major Renovation of Buildings―Development of Software

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Accounts Payable• Use the Prior Year Voucher Menus when

paying for all goods or services received in the prior fiscal year.


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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, 2009.– Allotment Status Encumbrance Detail Report (R5509730)– Open PO Detail by Branch/Plant (R43632)


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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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Review Balance Sheet Accounts• Liabilities

– 214100 Deposits– 211200 Due to Vendors– 215100 Due to Fund– 213100 Due to Government– 211700 Received not Vouchered– 215101 Sales Tax Payable


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Thursday, June 25, 2009:• LAST DAY TO POST FISCAL YEAR END 6-30-09

TRANSACTIONS.

• This includes purchase orders and purchase order receipts, fixed assets, voucher processing, journal entry activity, etc.

Note: No purchasing activity by anyone in the State of Nebraska without authorization until July 1, 2009.

• Agencies who require access to the system for specific June 30 business transactions can phone Wes Mohling at 471-0601. State Accounting will determine the best way to coordinate the completion of your year-end work. State Accounting will be monitoring the queues.

• Preparation for the biweekly payroll for 7/1/09 allowed for Agency HR teams until 1:00 P.M. payroll deadline

Closing the Books

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Friday, June 26, 2009:• Normal transaction processing for Cash Deposits and Receipts

Through the Treasurer’s Office

• State Accounting will process payment groups for vouchers with due dates through 7/3/09

• Disbursements without a purchase order created and approved for new Fiscal Year ’09 (FY 09-10) – NO POSTING. (Remember to use prior year payable menu for voucher processing when appropriate.)

Closing the Books

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Monday, June 29, 2009:• Normal transaction processing for Cash Deposits and Receipts

Through the Treasurer’s Office

• State Accounting will process only volume voucher payments and emergency payments

• Disbursements without a purchase order created and approved for new Fiscal Year ’09 (FY 09-10) – NO POSTING. (Remember to use prior year payable menu for voucher processing when appropriate.)

Closing the Books

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Tuesday, June 30, 2009:• Treasurer cut off for deposits at 9:00 A.M. Deposits after this should

have a 7/1/09 GL date

• All activity in NIS, including FY09 activity, reports, FY09 Payroll, etc. must cease by 3:00 P.M. NIS will be shut down for all agencies except State Accounting.

• State Accounting will roll-over outstanding purchase orders at June 30, 2009 into the new fiscal year.

Closing the Books

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Wednesday, July 1, 2009:• No posting until Flash Memo is received that year end close is

complete – anticipated by 7:00 A.M.

• State Budget provides partial allotment of new appropriations.

• Bi-weekly payroll for July 1 pay date posted by State Accounting

• Agencies should use prior year voucher processing menus when appropriate

• July 1, 2009 Allotment Status Report, with FY10 data, will be available on MREPORT

• Review purchase orders to determine year end rollover is correct

Closing the Books

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Fiscal Year End (June 30, 2009) Closing schedule Memo from Paul Carlson at:

http://www.das.state.ne.us/accounting/nis/Pauls_Correspondence/fy09_ye_closing.htm

Closing the Books

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Biennium EncumbrancesBruce Snyder

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What is an Encumbrance?

Biennium Encumbrances

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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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• 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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• 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

Accounts Payable Role, Path – Payables > Prior Year Voucher Processing > PY Voucher Entry

This is used to identify all accounts payable where goods or services were received in the prior fiscal year.

Encumbrance processing uses these P9 transactions so agencies do not have to enter them again for encumbrance certification, because all accounts payable represent valid carryover encumbrances.


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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.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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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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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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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– Agency Budget Menu > Agency Budget

Management > Enter/Adjust Manual Encumbrances > Enter/Adjust Manual Encumbrances

General Accounting Menus– General Accounting – Agencies > Manage

Journal Entry > Journal Entries with Debit/Credit Format


• Enter J9 in the Doc Type/No/Co field.• The Ledger Type field has a default of PB.


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

Transaction must be APPROVED , PREAUDITED

and POSTED in the month created.


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Types of Manual Encumbrances

• Payroll – Biweekly, for most agencies this will be the 7/1/09 payroll and .7 of the 7/15/09 payroll.

• Grants that have been awarded but not paid.


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Manual Encumbrances Manual Encumbrances affect the current authority.

You will see them on your allotment status and budget status until they are liquidated after the certification process.

Manual Encumbrances can be used to offset other encumbrances.

If a purchase order for June 30, 2009 has the incorrect amount or should not have been open at June 30, a negative manual encumbrance (credit amount) can be used to offset the encumbrance.

If a document is incorrectly created as a prior year obligation (a P9 document) a negative manual encumbrance (credit amount) can be used to offset the encumbrance.

If a document is incorrectly created as a current year obligation (a PV document) a manual encumbrance (debit amount) can be used to create the encumbrance.

A negative manual encumbrance will show on your current allotment status as a negative amount.


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Automatic Encumbrance

Purchase Orders that were open at June 30, 2009.

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

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


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Certification Process

• July 1, 2009 – August 31, 2009

Enter Vouchers using PRIOR YEAR VOUCHER PROCESSING menu.

• September 2, 2009

August 31, 2009 Certified Biennial Carryover Report available for review


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Certification Process (continued)

• July 6, 2009 – Run the Encumbrance Detail Report (NIS 594A) to ensure that your encumbrances are recording correctly.


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Encumbrance Detail Report is

available from two menus • General Accounting – Agencies > Inquiries

& Reports > Budget Reports > Other Budget Reports

• Budget – Agencies > Inquiries & Reports > Budget Reports > Other Budget Reports


• Ending Fiscal Year is the year just completed• Transactions dated through Last transaction date

will be selected.• PUT IN YOUR AGENCY NUMBER!!• On the printer selection, CSV is checked by default


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$9,478.97

$19,294.64

$1,056.22


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$1,056.22 $19,294.64


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August 4, 2009

• State Accounting will run a 7-31-09 State Wide Biennial Carryover Report.

• Review the Encumbrance Detail Report to ensure that amounts agree to the Biennial Carryover Report. Use a Last transaction date of 7-31-09 in processing options.


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September 2, 2009

• August 31, 2007 Certified State Wide Biennial Carryover Report on the State Accounting website for review.

August 31, 2009

• August 28, 2009 State Wide Biennial Carryover Report on the State Accounting website for review. Review carefully to ensure it is accurate.


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September 11, 2009

• August 31, 2009 Certified State Wide Biennial Carryover Report signed by Agency Director due to State Accounting.


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September 11-30, 2009

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

October 2, 2009

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


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Trouble Shooting Encumbrances Manual Encumbrances not created with a document type J9. Manual Payroll Encumbrance not created with a J9 document

type in PB ledger. Prior Year Obligation entered as a PV document type – not

showing up on the Encumbrance Reports. Current Year Obligation entered as a P9 document type –

showing up on the Encumbrance Reports. Purchase Order at June 30, 2009 is for the incorrect amount or

is not valid and is showing up on the Encumbrance Reports. Amount recorded for a Purchase Order or payable is incorrect.


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KEY DATES• July 1 – August 31

Enter Vouchers and Manual Encumbrances• July 9

Run Encumbrance Detail to ensure accuracy• August 4

State Accounting runs 7-31-09 Biennial Carryover Report for review purposes. This should agree with the 7/31/09 Encumbrance Detail.

• August 31

State Accounting runs 8-30-09 Biennial Carryover Report for review purposes.


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• September 28/31/09 Certified Biennial Carryover Report available for review

• September 11 Agency Director signed copy of Certified Biennial Carryover Report due to State Accounting

• September 2 – 30State Budget and Accounting review of encumbrances

• September 30State Budget Re-Appropriation

October 2State Accounting Load Budget Status with Re-Appropriations

KEY DATES


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Encumbrance InformationNIS Training Manuals:

Training Materials>• Budgeting > Entering/Adjusting Manual Encumbrances• Budgeting > Manual Encumbrance Report• Budgeting > Liquidating an Encumbrance • Accounting > Allotment Status Encumbrance Detail Report • Mini Manuals > Payroll EncumbranceFlash Memos:• Prior Year Obligations Memo (5-30-03)• Post Certified Encumbrances Process (10/15/03) – (has Budget Division

Process Memo)State Accounting Manual (www.das.state.ne.us/accounting/nis/amcon.htm):• General Policy #11 - Encumbrances• Mid-Biennial PSL Encumbrance Process• Encumbrance Correspondence


Questions & Answers

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Business User Group

Documents

Transcript of Business User Group