05/06 Year End Meeting Reconciliation of Campus Records to State Controller – SAM99 SAM99...
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Transcript of 05/06 Year End Meeting Reconciliation of Campus Records to State Controller – SAM99 SAM99...
05/06 Year End Meeting
Reconciliation of Campus Records to State Controller – SAM99
SAM99 Reconciliation and Year End Submission
05/06 Year End Meeting
Agenda Why?
Business Requirement
How and When? SAM99 Primary Functions Transaction Flow and Overview SAM99 Warning Messages Review Transactions Manage Reconciling Factors Create Year End SAM99 File Summary
Where? FOA Web Site
05/06 Year End Meeting
Why?Business Requirement
Section 7900 of the State Administrative Manual (SAM) requires state agencies to prepare a monthly reconciliation of Receipts & Disbursements Budget Balances
to the State Controller’s Office records
05/06 Year End Meeting
How?SAM99 Primary Functions The SAM99 is a tool that was created for
the CSU to meet State mandated reconciliation requirements by… Comparing Receipts and Disbursements
processed at the State Controller’s Office to Receipts and Disbursements recorded by the Campus - R&D Recon
Comparing Balances of funds available at the State Controller’s Office to Budget Balance Available on Campus records – BBA Recon
05/06 Year End Meeting
SAM99 Primary Functions Simply stated, the SAM99 brings
together SCO Records and Campus Records to compare… Receipts and Disbursements
Balances of Funds Available
To enable campuses to meet SAM Section 7900 Business Requirements
05/06 Year End Meeting
SAM99 Primary Functions SCO Records - Receipts, Disbursements
and Balance Available as displayed on the Tab Run
Disbursements
Receipts
Year to Date
Activity
BBA
05/06 Year End Meeting
SAM99 Primary Functions SCO and Campus Records Compared
R&D Recon & BBA Recon
SCO R&D and BBA Same as
Tab Run
SCO R&D and BBA Adj by Campus
Accruals
Campus R&D and BBA
Displayed on SAM99
05/06 Year End Meeting
Transaction Flow and Overview Today’s World - Campus R&D
Transactions processed at the State Controller’s Office (SCO) include… Claims Payroll Plans of Financial Adjustment Controller’s Transfer Cash Remitted
05/06 Year End Meeting
Transaction Flow and Overview Typical flow of Transactions processed at the
SCO - The Rules of the Game -
Campus Records R&D Transaction Campus offsets R&D Transaction with an Accrual
Campus submits Transaction to the SCO
When the SCO processes R&D Transaction… Campus clears Accrual against Fund Balance
Clearing
05/06 Year End Meeting
Transaction Flow and Overview What is Fund Balance Clearing ???? FIRMS Object Code 305022
Important to Know: Campuses recognize the SCO has processed an R&D transaction by making an entry to Fund Balance Clearing on campus records
In other words, to balance the SAM99, campus R&D transactions that have been processed by the SCO must be offset by Fund Balance Clearing
The year to date activity in Fund Balance Clearing 305022 on campus records should equal the year to date amount on the SAM99 Tape for Receipts and Disbursements processed by the SCO
Differences are reported by the SAM99 as Warning Messages
05/06 Year End Meeting
SAM99 Warning Messages
When adjusted SCO Receipts/Disbursements does not equal the campus Receipts/Disbursements, the SAM99 prints a Warning and calculates the difference
WARNING: Campus Records Total does not Equal Expenditures Difference is $
When the adjusted SCO Balance does not equal the campus BBA amount, the SAM99 prints a Warning and calculates the difference
WARNING: Calculated Unexpended Balance does not Equal Campus Records Total Balance Difference is $
05/06 Year End Meeting
SAM99 Warning Messages “Campus Records Total does not Equal
Expenditures” This warning is associated with the first
reconciliation requirement from SAM 7900… The reconciliation of total
Receipts/Disbursements on campus books to total Receipts/Disbursements processed by the SCO, adjusted by campus Assets and Liabilities – also referred to as “Accruals”
Year to date R&D activity on the Controller’s books is compared to year to date R&D activity on the campus books
05/06 Year End Meeting
SAM99 Warning Messages “Calculated Unexpended Balance does
not equal Campus Records Total Balance” This warning is associated with the second
reconciliation requirement from SAM 7900… The State Controller’s Balance adjusted by campus
Assets and Liabilities (Accruals) is compared to campus Budget Balance Available - Campus Budget Balance Forward adjusted by current year Receipts Disbursements and Encs
The balance of funds remaining on the Controller’s books is compared to the balance of funds remaining on the campus books
05/06 Year End Meeting
SAM99 Warning Messages The Receipts/Disbursements warning is the
result of an issue related to R&D Transactions
When there is a warning for R&D, there will be a warning for BBA
Reason: BBA is a calculation that is impacted by R&D transactions
Usually, you receive both messages for the same dollar amount
05/06 Year End Meeting
SAM99 Warning Messages
R & D PresentationSCO Total R&D
Campus Assets & Liabilities
Adjusted SCO Total R&D
Campus total R&D
Expenditure Warning
05/06 Year End Meeting
SAM99 Warning Messages When you receive a Receipts/Disbursements warning, find
out…
Was the Receipt/Disbursement recorded in the wrong fund? If so, reclass it to the correct fund
Was the Receipt/Disbursement recorded in the correct fund? If so, clear the Accrual against FBC If not, record the Receipt/Disbursement against FBC
When the R&D and BBA warnings are for the same $ amount, an Actuals Journal will resolve both warnings
BBA is a calculation that is impacted by R&D transaction
05/06 Year End Meeting
SAM99 Warning MessagesR&D Example…
Campus Receives Cash Debit Cash Credit Revenue
Campus Remits Cash to the SCO Debit Remit in Transit Credit Cash
SCO Posts Cash Remitted – Campus Does Not Out of Balance Situation is created for R&D Warning is generated on SAM99
Actuals JE Needed: Clear the Accrual against FBC
Debit Fund Bal Clear Credit Remit in Transit
05/06 Year End Meeting
SAM99 Warning Messages R&D Example…
Disbursement was not recorded on campus books
SCO posts AD NOAT - Campus Does Not Out of Balance Situation is created for R&D Warning is generated on SAM99
Actuals JE Needed: Record Disbursement directly against FBC Debit Expense Credit FBC
05/06 Year End Meeting
SAM99 Warning Messages Review… One of the primary functions of the
SAM99 is to reconcile Campus Receipts/Disbursements activity with Receipts/Disbursements processed by the SCO
Campuses initiate R&D transactions and make Fund Balance Clearing entries when the SCO processes them
For the SAM99, campus transactions that flow thru the SCO begin with R&D and end with Fund Balance Clearing
05/06 Year End Meeting
SAM99 Warning Messages
BBA PresentationSCO Bal Available
Campus Assets & Liabilities
Adjusted SCO BBA
Campus BBA
BBA Warning
05/06 Year End Meeting
SAM99 Warning Messages If you receive a BBA warning only, there is a
difference between campus and SCO recorded Budget Balance amounts
Remedy… Query the LEDGER_BUDG table to review campus budget entries and identify differences with the SCO
Work closely with your Budget Office to review the issue
As appropriate, clear the difference with a Budget Journal
05/06 Year End Meeting
SAM99 Warning Messages Common sources of BBA differences
include:
Not posting beginning net Budget balances Not posting an Allocation Order or posting it
for a different amount or to a period different from the SCO
Not cross posting a remittance Not posting special budget entries for funds
that roll Project to Date Receipts and Disbursements
05/06 Year End Meeting
SAM99 Warning Messages If you receive R&D and BBA messages for
different dollar amounts, it is the result of a combination of the previously mentioned scenarios
Remedy… Correct each type of error individually using queries and Journals to resolve the issues
Start with the suggested approach for the R&D error message
This strategy resolves all of the R&D difference, part of the BBA difference and identifies the remaining BBA amount clearly
05/06 Year End Meeting
When?Review Transactions Manage the R&D and BBA Recons by
reviewing transactions as they flow from Campus to the SCO
To prepare for year end, Review Transactions routinely as the Fiscal Year progresses - Daily, Weekly and Monthly
Campus Transaction Review SCO Transaction Review
05/06 Year End Meeting
Review Transactions Campus Transaction Review
Keep in mind… Campuses recognize the SCO has processed an R&D transaction by making an entry to Fund Balance Clearing on campus books
The review of Campus FBC Transactions can be facilitated by:
Creating Unique Campus Accounts that map to Fund Balance Clearing
Querying Journal Lines for FBC Object Code 305022 to ensure that campus books remain current with SCO transactions
Using Journal Sources to isolate specific types of transactions that flow thru the SCO
05/06 Year End Meeting
Review Transactions SCO Transaction Review
SCO Transactions can be reviewed by: Printing SCO Journals from ViewDirect Viewing transactions through CIRS/SCO
online ACL Account detail Analyzing transactions by querying the
CSU_SAM99_TAPE table after loading the SCO Monthly Tapes at mid month and at month end
Printing the Tab Run provided to campuses each month from ViewDirect
05/06 Year End Meeting
Review Transactions The State Controller uses Transaction Codes
to summarize and identify different types of entries
SCO entries are formatted to include a posting date, Transaction Code, posting reference and dollar amount
Transaction Codes can be seen on the Tab Run, ViewDirect, CIRS/ACL Account Detail
The CSU_SAM99_TAPE table captures Transaction Codes in Release 050
05/06 Year End Meeting
Review Transactions – Common SCO Transaction Codes
23 – Budget/Adjustment – Cross Post 24 – Budget/Adjustment – AO’s 33 – Cancelled Warrant 35 – Journal Entry – transmittal 36 – Journal Entry (PFA) 37 – Payroll Clearance 38 – Payroll Accounts Receivable 39 – No Warrant Transfer (Prison Industry/DGS) 47 – Cash Remittance 49 – Claim Schedule Reversal/Void 50 – Claim Schedule
05/06 Year End Meeting
Review Transactions Strategy: Bridge the gap between detail and summary
by breaking the SAM99 recon down into manageable components
Position yourself well for Year End
Associate SCO Transaction Codes with PeopleSoft Fund Balance Clearing Activity (TC-XX = 3058xx)
Query campus FBC Journal Lines and tie campus activity to R&D transactions processed by the SCO
Review transactions routinely as they flow from Campus to the SCO
05/06 Year End Meeting
Manage Reconciling Factors When activity recorded in FBC on
campus books does not match the amount of SCO Receipts and Disbursements on the SAM99, campuses must identify and resolve the Reconciling Factors that comprise the difference Correction Required Timing Difference Year End – No Timing Differences
05/06 Year End Meeting
Manage Reconciling Factors Correction Required Certain Reconciling Factors require
immediate correction PFA coded inaccurately Claim booked against the wrong fund Remittance submitted with inaccurate SCO
revenue account Transaction for another agency charged to
yours Campuses should work with the SCO to
resolve these issues promptly
05/06 Year End Meeting
Manage Reconciling Factors During the year, campuses are required
to Reconcile the SAM99 Identify all differences between
campus and SCO records - i.e. Reconciling Factors
Manage their clearance Reconciling factors are often the result of
a “timing difference” between the posting of transactions on campus records and the SCO’s
05/06 Year End Meeting
Manage Reconciling Factors Creating Efficiency can cause a Timing Difference –
Example…
LCD entries post directly to FBC and create Reconciling Factors every month - One Journal DR: Exp CR: FBC
LCD entries can be identified easily by using a campus specific FBC account – 3058xx (same as SCO TC-37)
These factors clear with the submission of a PFA to the State Controller
Result: SAM99 has out of Balance Warnings, but it is Reconciled
It’s all about Managing the Reconciliation and Timing Differences throughout the Fiscal Year
05/06 Year End Meeting
Manage Reconciling Factors Year End – No Timing Differences During the year, campuses are required
to Reconcile the SAM99 Identify differences between campus and
SCO records Manage their clearance
At year end, campuses are required to Balance the SAM99 Eliminate all Reconciling Factors Accrue all Timing Differences Campus books must match the SCO’s at June
30
05/06 Year End Meeting
Create Year End SAM 99 File Create your year end file when your
June SAM99 matches SCO records Be sure that….
SCO Accrual Reversal File has been loaded, run and reviewed since April close
Reconciling Factors Eliminated Timing Differences Accrued CMP Business Unit = CSU Business Unit
05/06 Year End Meeting
Create Year End SAM 99 File PeopleSoft will create a file that contains data
for your Campus Governmental Funds
On the SAM99 Run Control, be sure “Accrual Reversal” and “Year End File” options are checked
Designate the Data Center destination where your file will be FTP’d and Name the File
05/06 Year End Meeting
Create Year End SAM 99 File
When you submit your file… Make sure the CO has signed off on your
FIRMS submission and Business Units and Ledgers are in Synch
Use the SCO naming convention for your file FISCAL.MMDDYYA.AGYACR
FTP your SAM99 file to the SCO for final review of the year’s activity
S end email notification to the appropriate authorities
05/06 Year End Meeting
Summary The SAM99 is a CSU mod that enables
campuses to meet state reconciliation requirements detailed in SAM Section 7900
R&D and BBA
Campuses initiate R&D transactions, post them at a Detail Level for Campus Customers, and submit them to the SCO
Campuses acknowledge that the SCO has processed their transactions by making Fund Balance Clearing entries
Therefore… Every SCO and FBC entry represents a campus R&D
transaction at a summary level and can be tied to a detailed Source Document
05/06 Year End Meeting
Summary Strategy: Break the SAM99 Recon down into
manageable components Use PeopleSoft functionality to tie campus FBC
entries to SCO activity Campus specific FBC accounts Journal Sources Query
Review transactions routinely as they progress from R&D to FBC
Reconcile Monthly – Display Reconciling Factors Clear Reconciling Factors promptly Accrue Timing Differences at Year End