Welcome to the Business Users Group

1. Welcome to theBusiness Users Group Thursday, May 5, 2005 1:00 – 4:30 pm

2. Today’s Agenda • Welcome and Opening Remarks • Announcements • Presentations • Encumbrance Process • Fixed Assets • Timeline for Closing the Books • End-of-Year Checklist • Expert Assistance 2

3. Announcements

4. Pre-Note Functionality • The vendor pre-note inquiry may indicate why a payment has not processed. • Click on Pre-note Inquiry/Update 4

5. Pre-Note Functionality • Enter the Vendor’s Address Book number in the Address Number field. • Click Find. 5

6. Pre-Note Functionality • If a date appears in the Prenote Date field, payments to the vendor will not process until the day after that date 6

7. Financial Reporting Package • Accrual Information Form • Don’t have to report IBTs • Lease Response Form • Cash and Investments Form • Nonmonetary Transactions Form • Capital Grant Reporting Form 7

8. Document Type P9 • When entering an accounts payable transaction for a FY 2005 obligation, use the menu for prior year payables. • Use Voucher Entry with or without PO 8

9. Audit Process • State Auditors are doing the CAFR audit this year. • Timeline is different from the past. • Be sure and notify State Accounting when the auditors arrive in your office to do any CAFR, single audit, or other review work. • This also holds true for any federal or outside auditors. 9

10. ACH Payments • Vendors do not get all payment information now. • There is a new national procedure coming soon. 10

11. Payroll Card • Available to employees soon! • How will it work? • U.S. Bank program 11

12. Changes to State Accounting Website • Checklists • Chart of Accounts • Contact Information • Capital Outlay Policy 12

13. ENCUMBRANCES

14. I OWE, I OWE, SOENCUMBERINGI MUST GO ! 14

15. What is an Encumbrance? 15

16. Encumbrances Transactions that represent a valid financial obligation of a fiscal period for which appropriation should be reserved to meet that financial obligation. 16

17. Certified Encumbrances Valid encumbrances that an agency chooses to reserve to meet a future financial obligation. 17

18. 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; 18

19. Valid Encumbrance (State Statute 81-138.01): • 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. 19

20. Valid Encumbrance (State Statute 81-138.01): • A written agreement for a grant or award to distribute aid was signed but was not paid during the same biennium. 20

21. 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) 21

22. Use the Prior Year Voucher Processing Menu 22

23. 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). 23

24. 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. 24

25. Prior Year Voucher With P.O.(continued) 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. 25

26. Prior Year Voucher With P.O.(continued) 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. 26

27. Prior Year Voucher With P.O.(continued) 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. 27

28. Manual Encumbrances • Can be entered in two different places Agency Budget Menus General Accounting Menus 28

29. Agency Budget Menus • Click on Enter/Adjust Manual Encumbrances 29

30. Click Add. 30

31. Enter J9 in the Doc Type/No/Co field. • Ledger Type automatically populates with PB. 31

32. General Accounting Menu • Click on Journal Entries with Debit/Credit Format 32

33. Click Add 33

34. Enter J9 in the Doc Type/No/Co field. • Change the Ledger Type from AA to PB. 34

35. Manual Encumbrance Steps • Doc Type J9 • Fund • G/L Date – using today's date • Explanation – such as 'To encumber prior year' • Ledger Type PB Transaction must be APPROVED and POSTED in the month created. 35

36. Types of Manual Encumbrances • Payroll • Grants that have been awarded but not paid. 36

37. Automatic Encumbrance Purchase Orders that were open at June 30, 2005. State Accounting takes a “snapshot” of all open purchase orders at June 30 and records that information in the PC Ledger. (This is a mirror image of the PA Ledger at June 30.) 37

38. Certification Process • July 5, 2005 – August 31, 2005 Enter Vouchers using PRIOR YEAR VOUCHER PROCESSING menu. • September 2, 2005 • August 31, 2005 Certified Biennial Carryover Report available for review 38

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40. Certification Process(continued) • July 11, 2005 – Run the Encumbrance Detail Report (NIS 594A) to ensure that your encumbrances are recording correctly. 40

41. 41

42. Choose the Standard Version (NIS0001) and click Select. 42

43. Do not change ANYTHING on this Data Selection. 43

44. Ending Fiscal Year is the year just completed • Transactions dated through this date will be selected. • PUT IN YOUR AGENCY NUMBER!! 44

45. On the Printer Selection window, be sure CSV is checked on the Document Setup Tab. 45

46. $1,056.22 $9,478.97 $19,294.64 46

47. $19,294.64 $1,056.22 47

48. Certification Process(continued) August 1, 2005 • State Accounting will run a 7-31-05 State Wide Biennial Carryover Report. • Review the Encumbrance Detail Report to ensure that amounts agree to the Biennial Carryover Report. 48

49. Certification Process(continued) August 29, 2005 • August 26, 2005 State Wide Biennial Carryover Report on the State Accounting website for review. Review carefully to ensure it is accurate. September 2, 2005 • August 31, 2005 Certified State Wide Biennial Carryover Report on the State Accounting website for review. 49

50. Certification Process(continued) September 9, 2005 • August 31, 2005 Certified State Wide Biennial Carryover Report signed by Agency Director due to State Accounting. 50