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 Officesdaniels@auditor.in.gov (317) 233-9817

Joe Fistrovich, State Budget Agencyjfistrovich@sba.in.gov (317) 232-2974

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