March 2007

The Office of Planning and Budget and The State

Accounting Office

Presents

Balancing BudgetNet to PeopleSoft (Reconciliation)

March 2007

Facilitators

Bart HaberboschManager - Financials (SAO)

Susan BanksBusiness Strategy (SAO)

I. Opening/Introductions• Session Facilitators• Why Are You Here?• Tools Needed For Reconciliation • Key Concepts for Basic Understanding

II. Taking the Plunge for the 3-Point Reconciliations

• New Policy/Procedure • Flow Diagram• Tools Needed For Reconciliation • Hands-On Session – Interactive

III. Summary and Wrap UpIV. Questions

Agenda

Why Are You Here?

• Financial Management Process and Procedures Project recognized need to develop training at the appropriate levels

• 2006 Audit Report Findings• New policy/procedure on Reconciliation of

BudgetNet to PeopleSoft• To understand what is required of the

agencies in order to be in compliance with procedures relative to program budgeting

Dive Deep into PeopleSoft Budgets

Tools Needed To BeginUser must:• Understand how the Appropriations Bill

translates in PeopleSoft• Understand the underlining concepts of

trees and their structures• Understand the various PeopleSoft

Ledgers (ORG, DeptSum, Class, Revest, Allot, Program)

• Understand how Trees and Ledgers work together

Key Concepts for Basic Understanding

•Appropriations Bill

•Understand Trees and their Structures

•Ledgers

•Knowing the Health of Your System within the Program Budget Structures

•Understand Your Agency’s Business Processes

Appropriation Bill

High Level Project Focus

Revenue Recognition

Expenditure Control

Reconciliations

Reporting

Fund Sources – Maps to BCM_FUND_SRC tree

Program – Maps to KK_Program Tree

Appropriations Bill Translated in PeopleSoft HB 1027

Even though Agency and Other Funds are shown

separately in the Bill, they are mapped to Other at

the FS_TYPE level

Budgetary Compliance -Fund Sources in PeopleSoft

• For Federal Funds (FS_CAT = FED1)– There are 16 detail items in the bill (FS_TYPE)

• For Other Funds (FS_CAT = OTH1)– There are 10 detail items in the bill (FS_TYPE)

CFDA # Name FS_TYPE CFDA # Name FS_TYPE99.999 Federal not specifically ID FED2 93.958 Community Mental Health BG CMHSB93.558 Temporary Assistance BG TANF 93.959 Prev and Treat Subs Abuse BG PTSAB93.667 Social Services BG SSBG 20.205 Federal Highway Admin FHAHP93.575 Child Care and Development BG CCDBG 20.500 Federal Transit Admin FTACI93.658 Foster Care Title IV - E FCIVE 93.767 State Children’s Insurance SCIP93.994 Maternal and Child Health BG MCHSB 93.569 Community Services BG CSBG93.778 Medical Assistance Program MAP 93.568 Low-income Home Energy LIHEA93.991 Preventive Health Services BG PHHSB 93.558 TANF BG Unobligated TANFU

Name FS_TYPE Name FS_TYPEAgency Funds OTH2 Self Insurance Trust Fund SITFPOther Funds OTH2 Health Insurance Payments HIPResearch Funds RESRC Other Intra-State Governmet Transfers OISGPRecord Center Storage Fee RCSF Retirement Payments MSPOAIndigent Care Trust Fund ICTF Medical Services Pay –Other Agencies RP

•Trees are key!

•Know your trees and tree levels

BudgetNet and SAO Peoplesoft Financial Integration - Trees

Tree Chart

Fund Source

Agency Agency/SAO Agency

Tree Owner MaintainsDefinition

s

Account SAO SAO Statewide

Fund SAO SAO Statewide

Department Agency Agency/SAO Agency

Program OPB SAO/OPB Statewide

Project Agency Agency/SAO Agency

Fund Source

Agency Agency/SAO Agency


Program OPB SAO/OPB Statewide


•Two trees are critical for BudgetNet to PeopleSoft reconciliations:– Program Tree– Fund Source Trees

Fund Sources – Maps to BCM_FUND_SRC tree

Program – Maps to KK_Program Tree

Appropriations Bill Translated in PeopleSoft HB 1027

Even though Agency and Other Funds are shown

separately in the Bill, they are mapped to Other at

the FS_TYPE level

Understanding PeopleSoft Ledgers

CLASS

Ledger

ORG

Ledger

DEPTSUMLedger

REVESTLedger

ALLOTMENT

Ledger

PROGRAM

Ledger

BudgetNetPeopleSoft

Application Ledgers

AOB/

Amendments

ALLOTMENT

Agency

ORG Ledger- PurposeTracks expenses against budget at the department

(ORG) level

How it Works

ChartfieldHow

PopulatedBudgetary

Control• Account

• Fund Code

• Department

• Program

• Class

• Project

• Funding Source

• Budget Load (BUDJRNLX

Process)

• Encumbrance, Expense Transactions

• Track

PeopleSoft Ledgers

DEPTSUM Ledger- PurposeTracks or Controls expenses against budget at the

department summary level by Class

How it Works

ChartfieldHow

PopulatedBudgetary

Control

• Fund Code

• Department

• Program

• Class

• Budget Load (BUDJRNLX Process)

–Similar to APPROP Ledger in 7.02


• Track or control at Agency/Business Unit discretion

• Currently, most all are set as Control

PeopleSoft Ledgers

CLASS Ledger- PurposeTracks or Controls expenses against budget at the

Program level by Class

How it Works

ChartfieldHow

PopulatedBudgetary

Control

• Fund Code

• Program

• Class


Process)


• Track or control at Agency/Business Unit discretion

• Currently, most all are set as Track

PeopleSoft Ledgers

REVEST Ledger- PurposeTracks revenue against budget at the department level

How it Works

ChartfieldHow

PopulatedBudgetary

Control

• Account

• Fund Code

• Department

• Program

• Project

• Funding Source


Process)

• Budget Check Revenue Transactions

• Track

PeopleSoft Ledgers

CLASS

Ledger

ORG

Ledger

DEPTSUMLedger

REVESTLedger

ALLOTMENT

Ledger

PROGRAM

Ledger

BudgetNetPeopleSoft

Application Ledgers

AOB/

Amendments

ALLOTMENT

Approval ofAOB/Amendmenttriggers update

to Program LedgerAgency

PROGRAM Ledger- PurposeTracks expenses against Program/Funding Source

as identified in the Appropriations Act. BudgetNet interface into PeopleSoft is performed

nightly

• Compliance with Program budgeting

• New Program Chartfield and Program ledger eliminate need for agencies to account for Program data in other Chartfields

• PeopleSoft reporting now possible at Program level

• OPB approved AOBs and amendments are in PeopleSoftHow it Works

Chartfield How PopulatedBudgetary

Control• Program

• Fund Source (FS_TYPE)

• BudgetNet


• Track

PeopleSoft Ledgers

CLASS

Ledger

ORG

Ledger

DEPTSUMLedger

REVESTLedger

ALLOTMENT

Ledger

PROGRAM

Ledger

BudgetNetPeopleSoft

Application Ledgers

AOB/

Amendments

ALLOTMENT

Agency

Warrant approvaltriggers update to Allotment Ledger

ALLOTMENT Ledger- PurposeTracks expenses against Program/Funding Source as requested

through the Allotment process in BudgetNet. BudgetNet interface into PeopleSoft is performed

nightly.Allotment is the allocation of a portion of budget spending

authority

How it Works

ChartfieldHow

PopulatedBudgetary

Control

• Program

• Fund Source (FS_CAT)

• BudgetNet


• Track Federal and Other Funds

• Track State Funds

• Control State Funds as Agencies roll onto Streamlined Banking

PeopleSoft Ledgers

Trees and Ledgers Working Together

•See Link on SAO Website:Tree_Ledgers_Process_

030607.xls

Maintaining the Health of the Commitment Control Module

Partial Posting of Amendments

• Whenever a partial post situations occurs, ALWAYS email [email protected]

• SAO will post the remainder for you. DO NOT attempt to make any changes on any of the Journals. After we post it for you, corrections can be made by creating a new amendment with reversing entries.

After Posting Budget Journals, always ensure

every Budget Journal

posted

Post situations cause managerialto be Out of Balance

mailto:[email protected]

Control Budget Balances Report

Use Control Budget Balances report to identify any ledgers that are out of balance

Navigate:

Main Menu >

Commitment Control >

Control Budget Balances


Input: Business Unit= 46200Budget Year = 2007

Click Run

Click Ok in the

Process Scheduler Request Page


Click on the Process Monitor link



If Run Status = SuccessClick Details link


Click on the View Log/Trace link


Click on the Trace File link to access the report

The Deptsum Ledger is not in balance with Org, Revest and Class Ledgers. Program Ledger, derived from BudgetNet, is not in balance either. (The Appropriation Ledger is no longer used, and the Allotment Ledger is always a portion of the budget, and never will be in balance with the others until year end). Contact SAO.

Deptsum Ledger not in balance

with Org, Revest and Class Ledgers

Program Ledger not in balance

NAMING CONVENTIONS ARE CRITICAL

FOR AOB, AMENDMENTS, AND INTERNAL REVISIONS

Purposes Of the Naming Convention

• If you do not follow the naming conventions, many of your budget reports will be incorrect

– The Program Budget Comparison Summary and the Budget Comparison Report group by this naming convention, and populate the AOB column versus the Adjusted AOB column.

– The Amendment Impact report also uses this naming convention to populate each of its columns. If this report is utilized it can help agency reconcile their managerial / operational ledgers to BudgetNet.

Naming Convention for the Amend ID Field

Each Annual Operating Budget (AOB), Amendment, and Internal Revision will be tracked in the PeopleSoft System using the Amend ID field. Agencies must create a unique

Amend ID code for each type and occurrence.

Description of Convention

Naming Convention

Example Comment/Notes

AOB

AOByyyyx

AOB2007 ‘yyyy' is the full year and 'x' is the letter if needed

AOB2007A

AOB2007B

Amendment

Ayyxxx

A07001yy' is the Year and 'xxx' is the

amendment number and letter if needed

A07002

A07003

Internal Revision

IRyyxxx

IR070001‘yy’ is the Year and ‘xxx’ is the

revision number, followed by a letter if needed

IR070002

Plunge Right In – The Waters are N-I-C-E

Three- Point Reconciliations

Policy and Proceduresand

Flow Diagram

Policy/Procedures for Balancing BudgetNet to

PeopleSoft

3 Point Reconciliation must be performed at least quarterly

Suggested the reconciliations be performed after every budget event

Reconciliation Procedures

– Understanding the Overall Business Process Flow of Transactions from both BudgetNet and PeopleSoft is important

– The touch points on the business process flows are important to ensure where reconciliations need to be performed

Appropriation BillSigned by the Governor

Agency EntersAOB/Amendment

in BudgetNet

Agency EntersAOB into PSoft

OPB ApprovesAOB/Amendment

Program Data InBudgteNet

Interfaces toPSoft

Transactions Okay toEncumber Prior toJuly 1st, First Qtr

Allotments availableinto June after Budget

is approved byComptroller

OPB ApprovesAmendments &

ComptrollerIssues Warrant

Request any Program changes needed per Appropriation BillVerify Program changes have been made in PeopleSoft

Verify BCM/ KK Tree Changes have been made in PeopleSoft

Both Activities may bedone concurrently

Allotment Data InBudgteNet

Interfaces toPSoft

PeopleSoftProgram Ledger

PeopleSoftAllotment Ledger

Reconcile BudgetNet toPeopleSoft Program Ledger

Reconcile BudgetNet toPeopleSoft Allotment

Ledger

BudgetNet PeopleSoft

Agency EntersAllotment

Request intoBudgetNet

Reconcile PeopleSoftRevest Ledger to

PeopleSoft Program Ledger

3 Point Reconciliation

BudgetNet and PeopleSoft Process Flow Diagram

Tools Needed For Reconciliations

User must:•be familiar with Excel•have access to BudgetNet

and PeopleSoft applications to run queries and reports, etc.

1. BudgetNet AOB/Amendments to PeopleSoft Program Ledger

2. BudgetNet Allotments to PeopleSoft Allotment Ledger

3. PeopleSoft Financial Revest Ledger to PeopleSoft Program Ledger

PeopleSoft Reconciliations

1st Point Reconciliations – BudgetNet AOB/Amendments to PeopleSoft Program Ledger

Run Reconciliation Reports -

PeopleSoft BudgetNet

OBD10 Query using Program Ledger or Program Budget Comparison Summary Report

Report 296 - AOB Amendment All Funds*

Report 231 - AOB Amendments Federal and Other*

* Both reports show approved amendments only

Variance:Variances should only consist of amendments approved in BudgetNet during the day, that have not yet gone through the nightly interface process into PeopleSoft.

2nd Point Reconciliation – BudgetNet Allotments to PeopleSoft Allotment Ledger

Run Reconciliation Reports

PeopleSoft BudgetNet

OBD10 Query using Allotment Ledger

Report 100 - Budget Allocation of Funds Confirmation Report for the last allotment with the status of “Final”This report shows approved warrants only

Variance:Variances should only consist of allotments with warrants approved in BudgetNet during the day, that have not yet gone through the nightly interface process into PeopleSoft.

3rd Point Reconciliation – PeopleSoft Financial Org Budgets to PeopleSoft Program Ledger Budgets

Run Reconciliation Reports

PeopleSoftRevest Ledger to Program Ledger Balancing Report (New- BDXXX0410 where ‘XXX’ is the Business Unit)•This report displays PROGRAM_BD Ledger data along with REVEST_BD Ledger data, which is summarized to the same level as the Program Ledger. The last column calculates the variance between the two.

Variance:Any variances may require running detail reports in both BudgetNet and PeopleSoft to identify potential adjusting entries.

Reconciliation Template and Formats

Microsoft Word documents are listed below:– 2007_ALLOT Ledger to BudgetNet Recon V1– 2007_KK Recon Revest to Program_V1– 2007_Program Ledger to BudgetNet Recon V1

• Check for other available courses and sessions at the SAO website http://www.sao.georgia.gov (OPB will have a link on their website directing others to the SAO website)

• Sign up for future training when the announcements go out

• Stay up to date on the project by frequently visiting the SAO web site

Summary and Wrap Up

http://www.sao.georgia.gov/

Questions

March 2007

Documents

Transcript of March 2007