Office of Operations 2013 Fall Conference November 6-7 Back to Basics Rec econcil oncilia iations: tions: Led edger gers s an and Cas ash Suzette Baker, CPA, CGFM Executive Director Jennifer Hallanan, CGFM Supervising Accountant Laura Canham-Lunde Associate Accountant Office of Operations John Traylor, Executive Deputy Comptroller New York State Office of the State Comptroller Division of Payroll, Accounting and Revenue Services Thomas P. DiNapoli, Comptroller Christopher Gorka, Deputy Comptroller Dave Hasso, Assistant Comptroller STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER
WHY RECONCILE? To ensure transactions correctly captured across all ledgers. To address accounting errors and system failures. To match Commitment Control (Budgets) revenues and expenses to the general ledger. To tie cash balances in SFS to bank account balances. To ensure financial reports accurately reflect the true financial position of the State. STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER
RECONCILIATION WORKFLOW STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER
ANALYSIS OF TRANSACTIONS IN MODULES Modules (AR, AP, TR and GL- Bank Reconciliation General Ledger Module KK (Budget) Ledger Modified Accrual Cash Accrual Payroll Module AP Vouchers/Payments AP Inter-Agency Vouchers KK (Budget) Ledger (Sub-module Modified Accrual Cash Ledger GL Journals created from Ex Employee-Expense Reports entries that are Ledger (Journals (Journals posted Modules (with Journal Recorded in Bank budget checked posted to Mod to Cash Ledger if Source AP, EX, TR, AR to Reconciliation Module AR Revenue/Receipts are posted to the Accrual once they they impact cash identify primary source KK Ledger to are budget and are budget module AR Grant Receipts (OSC Managed) reserve available checked, edited, checked, edited, appropriation approved and approved and AR Inter-agency Receipts balance) posted) posted) TR Cash Management Bank Transfers/EFTs TR Investments GL Journals Not recorded in Bank Online/Spreadsheet Reconciliation Module Upload/Bulkload/ AP Refund of Approps Allocations (with source AGY, GLS, BFR, PAY, ALO, ALS) GL Journals Not recorded in KK, Modified Accrual, Cash or Bank Reconciliation Module Modified Accrual Online/Spreadsheet - and Accrual Accruals (with source BFR) Journals posted for GAAP STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER
RECONCILIATIONS Area Reconci ciliati tion on Descri ript ption on Accounts Ac nts Pa Paya yable • Reconciles transactions that are processed through the Accounts /Empl mployee ee Expenses ses Payable and Expense modules after each payment cycle (Daily) ) o Includes checks, ACH payments, manual wires and Refund of Appropriations. Inter er-Agenc ency • Reconciles transactions that are processed through Inter-Agency (Daily) billing and payables o Timing – Receivables are generated the next business day after the payable is created Cash • Transactions originate with OSC Cash Management Management/ ent/Tre reasur asury o Includes all STIP investments and wires (Daily) o Bank and book transactions are loaded into the Treasury System to allow for easy reconciliation – (banking information is absolute values which causes problems with negative numbers) Accounts Ac nts • Ensure all receipts recorded in the bank are recorded in SFS Receivable/Bi Billing ng (Daily) STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER
RECONCILIATIONS (CONTINUED) Area Reconci ciliati tion on Descri ript ption on Pa Payroll • Reconcile transactions on a modified accrual and cash basis that are (After r each Pay C Cycle) bulkloaded from PayServ to SFS – (Gross Payroll, Taxes, Deductions, and Cash ) Transf nsfer ers s and Due • Confirm all operating transfers and Due to/from balances to/fr from m & Statewid wide • Reconcile Statewide transfers by fund Transf nsfer ers s ( Week ekly ly) Bank Stateme ment nt • Verify all General Checking bank transactions have been recorded in (GenCK) (Monthl hly) SFS Checking king Ac Accounts ts ot other r • Reconcile all transactions not related to the General Checking account than n General Checki king ng to one of the other bank accounts: Occupational Training Account, (Monthl thly) Unemployment Account and Comptroller’s Special Refund Account Balance ce Sheet et Ac Accounts ts • Review all balances in Balance Sheet accounts which are not control accounts Bank Ac Accounts ts outsi side • Reconcile Comptroller’s Exchange Account SFS (Monthl hly) STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER
RECONCILIATIONS (CONTINUED) Area Reconci ciliati tion on Descri ript ption on Out of Balance • Verify that cash balances by fund for the Cash Validation, Modified (Daily) Accrual and Cash Ledgers tie out • Inform key staff of Out-Of-Balance conditions via Email Appropri opriati tion • Verify Expenditures are reflected properly in the KK and Modified Expens nses es (Weekly) y) Accrual Ledgers at a BU-Fund-Program- Budget Reference level Expens nse and Revenue e • Verify Revenue and Expenses are reflected properly in the Modified Ac Accounts nts Accrual and Cash Ledgers (differences will be Receivables and (TBD) Payables) • Currently salary expenses are reconciled monthly Federa ral Grants ts • Ensure revenue and expenses are captured properly under Federal (TBD) Grant Projects and Project Costing • It is critical to make sure that the Customer is set up to be identified as a Federal Grant Cleari ring ng Ac Accounts ts • Review balances in all clearing accounts: P-Card, T-Card, Prompt Payment Interest, ROA, Inter Unit expenses (rounding) STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER
RECONCILIATIONS (CONTINUED) Area Reconci ciliati tion on Descri ript ption on Sole Custody dy • Reconcile agencies Sole Custody Accounts to bank accounts Accounts Ac nts/TM /TMS Ac Accounts ts • Agencies can utilize the TMS system (TBD) Sub-mo modul dule • Reconcile Sub-modules to ensure that outstanding Accounts Payable, (Semi- monthl hly) Account Receivable and Expenses Payable balances tie to the General Ledger by fund. • Ensure the General Ledger ties to nVision trial balance by fund STIP (including uding interest rest • Reconciles all STIP investment balances recorded in SFS to QED received) reports and the related interest received ALRs – Appropr priated ed • Verify that revenues are captured correctly and matched to the Loan Receiva vables es (TBD) appropriations under which the spending has occurred Due To S State (DTS) • Verify that monies due the State is record properly and received timely Prepaid d Procure rement nt • Ensure that correct chartfields are used for procurement and travel and Travel Card card payments accounts nts (TBD) • Verify prepaid balances are clearing correctly to reconciling vouchers STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER
SYSTEM INTEGRATION System Integration: Treasur asury y - TR, CM, FG FG Revenue nue - GR GR, PC, CA, BI, BI, AR AR GL/KK Expendi nditure ures s - AP, E EX, PO, PAY STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER
PEOPLESOFT PROCESS FLOW 10 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER
GENERAL LEDGER (GL) OVERVIEW The General Ledger (GL) module manages the general financial accounting information. The GL is the primary system of record, while the other modules (e.g. PO, AP, AR) are the source systems of transactions (sub-modules). GL journals are generated to post the transactions from the sub-modules to the Modified Accrual and Cash ledgers. Direct GL journal entries are used for the following: To record accounting entries for redistribution and reclassification. Transfer between Funds and Affiliates (e.g. operating transfers and Interagency billing). GL journal entries must ONLY be completed for transactions that cannot be performed in the appropriate sub-modules 11 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER
CASH ACCOUNT LEDGER RECONCILIATION Compare the cash account balances by fund between the General Ledger group (Modified Accrual and Cash ledgers) and the Commitment Control ledger group (Cash Validation). As a result of this reconciliation, numerous system improvements have been implemented. Credit memos remain an ongoing area of concern. 12 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER
STATEWIDE TRANSFERS Fund accounting requires double entry transactions. The cash accounts reside in the NYS01 business unit, whereas the revenues and expenses reside in the agency business units. The transfer account entries balance this process. The “transfer to” and “transfer from” account balances must balance by fund. Any discrepancies are investigated and rectified. 13 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER
STATEWIDE TRANSFERS – MOD_ACCRL TO CASH 14 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER
DAILY CHANGE IN CASH Reconcile the change in cash account ledger balances to the transactions from the sub-modules. Vouchers and expenses that are paid and revenue that is received must be correctly accounted for as a change in cash. Investment transactions that the State has entered in the bank must be reflected in the books. Payroll transactions must be reflected in cash. 15 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER
DAILY SYSTEM RECONCILIATIONS 16 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER
Recommend
More recommend
