FISCAL YEAR-END 15 & 2015-17 BIENNIAL BUDGET

BUILDWORKSHOP

May 27, 2015

Small Agency Financial Services

Communicate and Informour customers of important annual reminders about the state

fiscal year close and the biennial budget build process.

Find Out and UnderstandWho does what

What’s required and what needs to be done

Where the information goes

When are the important due dates

How the processes work and

Why these are important

Workshop Objectives

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Important Dates

June 15th - Cost coding for FY 16 due

(dependent upon budget approval)

June 30th - Comp time cash out

July 1st - Payroll due

– June 16th - 30th activity

– Board/Commissioner stipends

– Commute Trip Reduction (CTR)

Payroll

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Questions about year-end payroll?

Payroll

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Important Dates

June 30th – cash cut off

Checks dated 6/30 and before are to be recorded in FY15.

Cash Receipts

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Important Dates

July 8th – submit invoice information to DES Finance for DES prepared invoices (on goods/services delivered by 6/30). DES will be sure to record and send your invoices to all agencies and colleges before 7/23.

Cash Receipts

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Important Dates

July 23rd – deadline for submitting your agency prepared invoices (for goods/services delivered by June 30th) to state agencies and colleges.

After this date DES will work with other agencies to balance Due to/from GLs for CAFR.

Deadline: August 21st

Cash Receipts

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Questions about year-end cash receipts?

Cash Receipts

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Purchases

Invoices

Cash Cut-off

Accruals

Travel

Belated Claims

Year-end Accounts Payable

For FY15 funds, goods/services must be received by June 30th

Mark date received on invoices/back up

Include packing slips

US Bank statements – Identify correct fiscal year of purchases on backup

Purchases

Deadline: July 15th

Send to: DESsmallagencyap@des.wa.gov

MS 41465

Split A45s between years: FY15 and FY16

Be proactive

Track down invoices

Set up new vendors ASAP

3 business days to set up vendor in AFRS

7 -10 business days to set up EFT/direct deposit

Invoices

What does it mean?

State Treasurer deadline for cash transactions is June 30

Accrual vs. Cash Basis

Payments or fund transfers after June 30 are considered accruals for FY15, since the Treasurer will move the money in FY16

Different trans codes necessary for moving expenses between funds

Cash Cut-off

Deadline: July 24th

Determine if Amount is Estimated or Actual

Fill out template

Backup needed – Contracts, purchase orders, field orders, quotes, etc.

Backup needed – Reports, analysis, etc.

Accruals

Accrual Template

Deadline: July 15th

Send to: DESsmallagencytravel@des.wa.gov

MS 41465

Submit it! Make sure employees submit requests timely

Approve it! Make sure approvers approve requests timely

Pending reimbursements? Let us know!

Travel

What are they?

Old year expenses paid with new year funds

What do you have to do?

Get Budget analysis

Get OFM approval

Belated Claims

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Questions about AP?

Key Dates

July 15 - All payment documents must be received by DES

July 15 - All travel reimbursement requests must be received by DES

July 24 - All expenses to be accrued must be received by DES.

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Let’s Take a Break

Five minute break

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Break Time Remaining

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A capital asset is– Any tangible or intangible assets held and

used in state operations, which have a service life of more than one year. SAAM 85.60.10

– $5,000 or more in value for a tangible asset OR is a small and attractive item, such as laptops, cameras, smart-phones, special equipment, etc.

– $1,000,000 or more in value for an intangible asset.

Capital Assets

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Each agency is required by SAAM to complete a physical inventory of capital assets at least once a biennium SAAM 30.45.10

What we need from youPerform a physical inventory of items.

Inform SAFS budget analysts of any added items during the period or any items that were disposed of.

What you can expect from usA most recent listing of capital assets for your agency.

Input changes into CAMS to ensure for proper reconciliation of General Ledgers for year end and disclosure reporting.

Accounting for Capital Assets

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By June 30th complete a physical inventory

By July 15th submit all payments of equipment received on or before June 30th.

By July 20th notify your SAFS budget analyst of any unrecorded assets or disposed assets.

Questions about Capital Assets?

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Disclosure forms are how the agency provides OFM with detailed financial information for use in preparing the state comprehensive annual financial report (CAFR).

Disclosure forms also provide assurances that the agency is following good accounting and internal control practices.

SAAM 90.40.10 Each agency is REQUIRED to submit disclosure forms to OFM.

SAFS will prepare all the necessary disclosure forms.

Disclosure Forms

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Required state disclosure formsMiscellaneous disclosure form

Financial disclosure certification form

Other common state disclosure formsCash on hand and in bank

Capital assets – summary of activity

Lease disclosure

Liabilities by major class

Deferred and unearned revenue

State Disclosure

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Required federal disclosure formsFederal assistance certification

Federal financial assistance direct

Federal identification numbers

Other federal disclosure formsFederal assistance received from nonfederal sources

Federal loan balances

Federal nonfinancial assistance

Federal nonfinancial assistance inventory balances

Federal Disclosure

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What we need from you

Your SAFS budget analyst prepares the forms and will send these to you with a cover memo.

Review the forms.

Sign the state/federal certification

State due to OFM by September 16th

Federal due to OFM by December 4th (signing delay)

Email your signed certification form to back to SAFS budget analyst (end of August).

Provide any required supplemental information (i.e. pending lawsuits).

Finalize the Forms

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Questions on Disclosures?

Mid July, State Disclosure system opens, your DES budget analyst will be working with you to complete the forms.

Late August, you will receive a memo and copy of the disclosures from DES. Return the signed certification sheet promptly to DES budget by email.

Now to the preparation of your next two year spending plan for the 2015-2017 Biennium.

Allotments

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Where are we in the Budget Process?

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Preparing for here.We are here.

SAFS will begin drafting the two year spending plan based on historical spending. We’ll add in the changes we are aware of such as:

Changes to central service costs

Step increases

Any raises submitted as part of the compensation data model last year

Any other known changes

Allotments - Basic Process

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We’ll prepare the plan in a format that separates and allocates fixed and discretionary costs to show you where your spending flexibility may be.

Fixed Costs are expenses that do not change as a function of the activity of the business.

Discretionary Costs are everything else.

Allotments - Basic Process

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Allocate Fixed Costs

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Allocate Discretionary Costs

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Allotments

Questions about the basic process?

Next, budget meetings will be scheduled in June or July.

We’ll meet with your agency to discuss changes to the draft spending plan and finalize it.

Once final, SAFS will electronically submit the spending plan to OFM.

When we meet with You

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The goal of the allotment meeting is to resolve any difference between

the draft spending plan and the authorized spending authority.

Allotment Meeting Goal

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– Expenditure Authority Schedule.

– Budget bill.

– Recommendation summary.

– Copies of the central service model.

– Salary projections.

– Preliminary estimates of fixed and discretionary costs.

Documents SAFS will bring

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Budget Meetings

Questions about the budget meetings?

We need your help to know what is changing.

The earlier we know, the more we can incorporate in the initial draft we bring out to you.

What we need from you

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Some examples of what we may need from you are:– Grant or contract award amounts

– Updated interagency agreements or leases

– Planned raises, new hires, and retirements

– Updated revenue estimates

– Changes due to legislative action or agency restructure

– Impacts of changes in your line of business, practices, or policies

– Unusual costs

– Equipment needs

What we need from you

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Over and Over and Over and Over…

Who?Effective when?For how long?How much?How many?

When we are done with known factors, where do you want the remaining balance/cut to go?

You WILL hear from us

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Remember the goal of the meeting?

The goal of the meeting is to resolve any difference between the draft spending plan and the authorized spending authority.

If we cannot achieve a plan for all the spending authority, a due date for additional information will be assigned.

Remember…

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SAFS will take your input and incorporate it into the spending plan to create a final spending plan.

We will send your spending plan to you for review and approval.

Once final, SAFS will electronically submit the spending plan to OFM.

Next Steps

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August 3rd

August 7th

August 11th

SAFS internal deadline is about two weeks prior.

We will contact you with a deadline.

If you need to adjust your due date for commission or board approval please contact your SAFS budget analyst.

OFM Allotment Deadlines

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For those agencies with fiscal staff, we will work with you to determine which areas you need assistance from SAFS.

FY16 Supplemental – Start working on in September.

Final Thoughts

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Allotments and what we need from you

June or July, SAFS will schedule an allotment meeting with your agency.

Questions on Allotments?

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Thank you for your questions during the workshop. We have captured those questions and answers below.

Q: If it is after July 15 (payables due date) and before July 24 (accrual due date), do we send in the invoice for payment or accrue it?

A: You will need to do both. Include it in the accrual template AND send it over for payment in the new fiscal year (FM01).

Q: What general ledgers (GLs) will the accruals hit?

A: The accruals will be in GL 6505 Accrued Expenditures/Expenses and GL 6560 Estimated Accrued Expenditures/Expenses.

Q: How long will the budget allotment meetings be?

A: We are scheduling one hour meetings to review allotments with your agency.

Q: How can the agencies get invoices to DES to pay by July 15 or accrue by July 24 when the initiating agency doesn’t mail the invoice out until July 23 rd?

A: If DES does not receive the invoices for accrual prior to July 24, it is best to send DES an estimate accrual.

Q&As