Inter Agency Transfers Inter Agency Transfers Inter Agency Transfers FI- -CO CO- -004 004 FI FI-CO-004 October 1, 2008 October 1, 2008 October 1, 2008 LaGOV LaGOV Version 2.0
2 Before we get started ... Logistics
Ground Rules Has everybody signed in? Everybody participates – blueprint is not a spectator sport Silence means agreement Focus is key – please turn off cell phones and close laptops Challenge existing processes and mindsets Offer suggestions and ideas Think Enterprise Ask questions at any time One person at a time please Timeliness – returning from break Creativity, cooperation, and compromise 3
Controlling Workshops Session ID Date Business Process Goals FI-CO-001 08/05/08 Cost Centers - Intro to SAP Finance & Controlling - Intro to Cost Centers - Cost Center Numbering Schema - As-Is Processes for Cost Centers - To-Be Processes for Cost Centers: Master Data Maintenance & Settlement FI-CO-002 08/19/08 Account Code Structure - Intro to Internal Orders: True Orders & Statistical Orders – Internal Orders - Internal Orders Numbering Schema - As-Is Processes for Internal Orders - To-Be Processes for Internal Orders: Master Data Maintenance - Integration with FI-GL & FM FI-CO-003 09/23/08 Labor Costing & Time - Intro to Controlling: Primary & Secondary Postings Entry Postings - As-Is Discussion: Current Time-Entry and Labor Costing practices - Discussion of Options for Labor Costing and Time Entry (Old Name: Time Entry - To-Be Processes for Time Entry & Labor Costing: Controlling, Project Systems, Postings) Plant Maintenance & Grants Management perspectives FI-CO-004 10/01/08 – Inter Agency Transfers - Intro to Inter Agency Transfers 10/0208 - As-Is Processes for Inter Agency Transfers - To-Be Options: Inter Agency Transfers: - CO Allocations, FI-GL Option & AP-AR Options FI-CO-005 10/14/08- Periodic Processing/ - Periodic Processing & Cost Allocations - Overview 10/15/08 Cost Allocations - Statistical Key Figures & Activities - As-Is Processes for Cost Allocations - To-Be Processes for Cost Allocations FI-CO-006 10/30/08 Management Reporting - Intro to Management Reporting - Reporting Requirements - Controlling Standard Reports FI-CO-Validation 12/08/08- CO Validation - Review CO Blueprint Design & Documentation 12/09/08 - Validate CO Blueprint Design & Documentation 4
Work Session Objective Review current processes used in the State for Inter Agency Transfers and discuss To-Be Design Options for LaGov ERP System 5
Session Topics Controlling Overview: “As-Is”: Review and capture current Agency processes and practices in the State for Inter Agency Transfers “To-Be” Design Options: Inter Agency Transfers Summary & Decisions Action Items & Next Steps 6
7 AS-IS Discussion Linn McNary
As Is - IAT IAT Definitions General Notes Agency Specific Examples – DOL – DHH – DSS – DOA – OYD – DOTD
Inter Agency Transfers – Definitions & Notes 13.2.10 Interagency Transfers - Expenditure* Interagency transfers are the transfers of funds for expenditures from one agency to another agency. Unless stated otherwise, the personal services related objects can be coded in ISIS HR 13.3.9 Interagency Transfers – Revenue* This type of Interagency Transfer represents revenue received from a state agency for the sales of goods and services or other receipt of funds by a non ancillary or enterprise fund. * Source: §13.2.10 & 13.3.9 OSRAP CONTROL AGENCIES POLICIES AND PROCEDURES MANUAL
IAT – General Notes IAT always involves the transfer of cash Can be intra-departmental or inter-departmental – Also discussed intra-agency transfers (across programs or across districts) Numerous types of agreements – some examples are: – Services (accounting, IT, legal, etc) – Rental payments (buildings) – Payments made from Grantee Agency to Sub-Grantee Agency Unclear as to whether agreement must be documented Accounting entries in AFS: – J-4 - generally for variable recurring IAT’s • Requires approval of both parties – II – for one time or fixed rate IAT’s • Payer approval not required
As Is – Inter Agency Transfers DEPARTMENT OF LABOR Receipt of Funds – from Office of Finance & Support Services (OFSS) – CDBG Grant administered by OFSS – Invoices received by DOL and entered into AFS (supplies, repairs, etc.) for payment to Vendors – OFSS pays DOL based upon invoices Payments – Examples: Office of Telecommunications Management, State Police, Risk Management – OTM initiates entries for payments in AFS – Two way approval - Each agency approves own journal line
As Is – DOL CDBG from DOA (OFS) Process : DOL - CDBG IAT Sub-Process : Monthly IAT for Reimbursement 3 rd Party Vendor Services Invoice Start Cash Receipt provided to DOL Generated DOA - OFS OFS Approves Payment DOL Accounting Accounting Receive Invoice Accounting – Supervisor Invoice Paid Funds Received End Enter Payable in Create J-4 approves – DOL AFS J-4 Line
As Is – Inter Agency Transfers DEPARTMENT OF HEALTH & HOSPITALS Receipt of Funds from DOA – Grant for Permanent Support of Housing – Essentially a federal pass-through to DHH DHH allocated a portion of this grant via Cooperative Endeavor Agreement with DOA DHH paid from AFS via J-4 process (Inter Agency Transfer entry) Payments – Example: Office of Telecommunications Management is the largest – Cash taken from DHH via J-4 process
As Is – Inter Agency Transfers DEPARTMENT OF SOCIAL SERVICES Has normal IAT like other Agencies Additionally, administrative costs are allocated from Office of the Secretary (357) to other DSS Agencies and billed monthly – See visio
As Is – DSS Billing for Allocated Overhead Process : DSS IAT Sub-Process : Billings from Cost Allocations – Example Agency 357 bills Agency 370 Agency 357 (Secretary) Monthly Admin Costs Report 2C04 Billing Allocations captured in Pool II entry created II Entry generated Start Report Cash Received End performed in F102 for Agcy for IAT Billing approved prepared* AFS 370 Agency 370 (Community Services) Cash II entry transferred to approved Agency 357 * Billing includes total allocated costs plus direct costs charged to agency 357
As Is – Inter Agency Transfers DIVISION OF ADMINISTRATION (DOA) Interagency Transfers are handled in various ways: – AFS • J-4 • II document – CFMS – Interagency Transfers set up as contracts J-4 – Initiated by the billing agency (agency receiving the revenues) – Approval required by each side (revenue and expenditure) – Usually used for periodic services or when a set rate is not known beforehand (State Mail, Forms Management, Prison Enterprises) II Documents – DOA receives coding and approval from various agencies and supplies schedules to Budget Office which includes amounts in agencies annual budgets – Billing agency sends out II (billing) and receives funds automatically (monthly or annually) (Ex: ORM, OTM and UPS)
As Is – Inter Agency Transfers DIVISION OF ADMINISTRATION (DOA) Various DOA Agencies Billing for Services – OCS – Computing Services – OFC - Office Facilities Corporation (rent) – OSUP – Payroll, Garnishments, Related Benefits Payments – OFS – Accounting Services to Agencies • Board of Regents • Cosmetology Board – OTM – Unemployment Compensation – Civil Service – Group Benefits
As Is – OYD Grant IAT from DOE Process : IAT with Sub-Grant (OYD) Sub-Process : Monthly IAT for Reimbursement Education Dept of Report Received Approved DOE J-4 Line Office of Youth Development $$ Expended Accounting Run Prepare Reimb. Supervisor – Submit Claim to Start from Operating B.O. Report - Claim & Create Approve J-4 Funds Received End DOE Fund Monthly J-4 Review Claim
Journal Entries Example - OYD (1) OYD spends $500 on Advertising related to Title I grant (they are sub grantee to DOE) (2) IAT for reimbursement of $ spent (3) Warrant Voucher created to transfer cash from the IAT account to Operating Cash Account Agency Object Description Dr Cr (1) 2710 403 Printing Expense $500 6000 403 Disbursement Cash (operating agency fund) $500 * (2) 6015 403 Cash - Interagency Transfers $500 1940 403 Interagency Receipt of Funds $500 * (3) 6000 403 Disbursement Cash (operating agency fund) 500* 6015 403 Cash - Interagency Transfers $500 * Note: Cash account is inferred from the AFS Organization
DOTD – Inventory IAT Process : DOTD IAT Sub-Process : Inventory (Printer Paper) Transfer (Accounting Impact) (Administration) Agency 273 Treasury Cash Inventory Interfund Monthly Receipt of Credited for Start purchased from Payable Intrafund End Inventory Inventory 276 Created Settlement Purchase Agency 276 (Eng. & Operations) Treasury Cash Request for Interfund Monthly Inventory Issued Debited for Inventory Receivable Intrafund End to 273 Inventory Received Created Settlement Purchase
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