presentation for ofma april 10, 2014 lynne bajema, cpa oklahoma state comptroller

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Statewide Accounting Manual Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

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Page 1: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Statewide Accounting Manual

Presentation for OFMAApril 10, 2014

Lynne Bajema, CPAOklahoma State Comptroller

Page 2: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

OverviewStructure of New Manual Comment PeriodOMES ContactsTerminology ChangesNew or Frequently Missed

Guidance

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Page 3: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Introduction

ContentsHow to Use the ManualGaining Access to the Accounting

SystemContact InformationBrief Descriptions of Relevant

Departments

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Page 4: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

ContentsChapter 10 – CodingChapter 20 – BudgetingChapter 30 – Receipting and DepositingChapter 40 – PurchasingChapter 50 – DisbursingChapter 60 – Reconciling and ReportingChapter 70 – Internal Controls Guidance

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Page 5: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

AppendicesGlossaryAgency ListingRevenue CodesExpenditure CodesFormsReport Listing

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Page 6: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Available in Two FormsWeb Pages

Quick, easy linksWill be updated as procedures are changedNot easily printable into one manualPDF VersionEasily printed in one documentWill be updated less frequently Important to read DCAR newsletters

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Page 7: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Comment PeriodThrough May 31st

PDF version should be on the Comptroller’s website by the end of the day tomorrow

Web pages will be posted by April 21stBoth will be modified to incorporate

comments during comment period and changes in statute from 2014 session.

Send comments to [email protected]

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Page 8: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

DCAR ContactsAccounting and Reporting – Jennie PrattTransaction Processing – Steve WilsonAccounts Payable – Patricia GarciaFinancial Reporting (CAFR) – Matt ClarksonAgency Business Services – Chris Forster or

Steve FunckVendor File Management – Vicky BakerOMES Finance/Flexible Spending – Dan

Melton8

Page 9: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Terminology Changes

To Align with PeopleSoft TerminologyWas ‘Fund’ – Now ‘Class Funding’Was ‘Object of Expenditure’ – Now ‘Account’Was ‘Agency Number’ – Now ‘Business Unit’

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Page 10: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

New Guidance or Reminders

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Page 11: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Chapter 40 - PurchasingAgencies are required to cancel remaining

encumbrance balances through the State Purchasing System as soon as they know the encumbrance will not be used, but no later than November 15th after the fiscal year end.

OMES will cancel any remaining encumbrance when the appropriation is lapsed.

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Page 12: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Chapter 40 - PurchasingThe allowed use of Authority Orders is

limited to purchases under $5,000 for which the standard encumbrance process cannot serve.

Use vendor specific Authority Orders whenever feasible.

Authority Orders should not be used for:Mandatory statewide contract purchasesPostageProfessional Service Contracts

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Page 13: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Chapter 40 - PurchasingP-Card Purchases between agencies

$5,000 ‘Break even’Purchases over $5,000 discouragedThere is a cost to the agency

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Page 14: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Chapter 40 - Purchasing OMES Form VEND Vendor Payee Form Requirements

Adding a New Vendor- including first time payment for your agency Complete all fields legibly to include Vendor signature

Updating Adding New Addresses/Locations

Requires 9-Digit Zip Code Requires Email Address

Changes to IRS Name/TIN Requires completed new form including vendor

signature Requires New Vendor ID

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Page 15: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Chapter 40 - PurchasingReporting Requirements for 1099 Payments

OMES Vendor Payee Form is a substitute W-9 Information must match IRS records Vendor should annotate Exemption and Status

Review all Payments for 1099 Status Agency should review Page 3 of Vendor Payee

Form to determine if payment qualifies for 1099 reporting

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Page 16: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Chapter 40 - PurchasingVendor Registration Process

OK.gov Vendor Portal

Bidder Registration All individuals or businesses considered for contract payments

should register on the OK.gov Vendor Portal

EFT Registration Vendors who already do business with the State should visit the

Vendor Portal to add EFT banking information to their vendor file for payments

FINAL STEP REQUIRED: Confirmation email to vendor PIN activation number Bank Form and instructions

Bank Form should be completed by vendor and their bank Must be submitted to Office of State Treasurer via FAX or mail for

processing –DO NOT EMAIL BANK FORMS16

Page 17: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Chapter 40 - Purchasing Employees Vendor Registration Process

Submit Employee Update Request Form Add Employees for Non-payroll Payments Only

(eg. travel) Employee Payment Location 0001 Default Employee Payments for Independent Services

If employee also provides services as a vendor for the State, they should complete and sign a Vendor Payee Form

New Location in employee vendor file Need written authorization to add employee

direct deposit to this location Payments may be 1099 reportable

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Page 18: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Chapter 50 - DisbursementsScanning Program

Many agencies scan claim documentation and only send OMES a batch slip

Agencies that are not scanning are encouraged to do so

Contact Steve Wilson at 521-4679 for information on the scanning process

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Page 19: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Chapter 50 - DisbursementsMemberships and Dues

Prohibited with the following exceptions: When the fee is for a position and can be transferred to

another employee if the member employee leaves the agency;

When membership can be shown to be in the best interest of the state due to discounts on job-related training, when the discounts obtained are more than the cost of membership

When specific coverage of individual memberships are within the terms of a grant contract. Documentation must be attached.

When the agency has been approved to enter the OMES Human Capital Management Model Project.

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Page 20: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Chapter 50 - DisbursementsHCM Model Project

Based on Human Resource issuesAgency who wants approval to participate

should send letter to HCM explaining and detailing the need

Contact person is Ron Wilson 522-0422

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Page 21: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Chapter 50 - DisbursementsPayroll Processing Timeline

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Page 22: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

There are several key dates within the biweekly payroll process.

Page 23: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Pay period

Two-week work

period ends.

Employees should

complete timesheets

Supervisors should review

timesheets

Agencies have until 1500HRS (3:00 PM)

Friday to process a 45 step payroll process and

resolve any issues.

Employee Supervisor Payroll Process (45 Step)

Page 24: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Pay period

Employee Supervisor Payroll Process (45 Step)

This process ensures that longevity is included, payroll is approved, calculations tie out, etc. Once the payroll goes

through the final calculations, the agency must run funding reports to see if they have cash and allotments to

run payroll. If not, they must work with their Finance Departments to modify funding codes or take whatever

action is necessary to properly fund the payroll.

This can be a lengthy, time-consuming process, especially for large agencies.

Once payroll is finalized and funded at the agency, the agency runs payroll through the G/L process and the payroll information available to Transaction Processing for release. Additional documentation with proper approvals is sent to Transaction Processing either by e-mail, fax, or paper. Once Transaction Processing has the paperwork for a payroll, it is reviewed against the pending release data to ensure they match and payroll is released. Information is due from the agencies by 3:00 5 business days prior to payday.

Page 25: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Pay period

Employee Supervisor Payroll Process (45 Step)

Drop Dead Payday

Page 26: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Chapter 50 - DisbursementsPayroll Processing Timeline

Very tight timingAgency at risk if deadlines not metOMES will be contacting Directors

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Page 27: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Chapter 60 – Reconciling and Reporting994 Class Fund, 633xxx Accounts Reconciling

HCM Public Query: GO_PY_DED_RUNID_BY_CONFIRM_DT Driven by Confirm Date Includes deduction codes and descriptions, # of employees with

a specific deduction, and general ledger 633xxx accounts to which amounts were posted:

Agencies should complete the voucher build and budget check by the end of the month. Vouchers do not need to be paid, but should be budget checked in order to help with reconciling.

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Page 28: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Chapter 60 – Reconciling and ReportingReconciliation of Clearing Accounts and ASA’sMust reconcile to OST and to State Accounting System

Form 11Deadline – 10th of each month

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Page 29: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Chapter 60 – Reconciling and Reporting

O.S. 62 Section 34.58 Information on income, disbursements and transfers states:

Each state agency shall furnish to the Director of the Office of Management and Enterprise Services, in such form as the Director shall prescribe, detailed information showing the income, disbursements, and transfers for each agency clearing account and each agency’s special account. Income, disbursements and transfers shall be identified in accordance with code designations as provided in the accounting procedures of the Office of Management and Enterprise Services…The State Treasurer shall not honor vouchers disbursing and transferring monies from agency clearing accounts or special accounts, when he or she has been notified by the Director of the Office of Management and Enterprise Services that an agency is not in compliance with the provisions of subsection A of this section.

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Page 30: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Chapter 60 – Reconciling and ReportingFailure to reconcile accounts results in:

Audit issuesDelay of the CAFRIncorrect reporting of the State’s cash position

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Page 31: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Chapter 60 – Reconciling and ReportingAny reconciling items should be listed as such.

PLUG NUMBERS ARE NOT ALLOWED

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Numbers

Plug

Page 32: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Chapter 60 – Reconciling and ReportingReconciliation of Budgeted Cash to Actual

Summary of Receipts and Disbursements Report to –

Allotment of Budgeted Cash ReportLiabilities on the SRD should agree to detail

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Page 33: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Chapter 50 - DisbursementsStatutory Cancellations of Warrants

Review the Outstanding Warrants Report andA/P Statutory Cancellations ReportAddress issues before they cancel by statute.If agency catches prior to stat cancel, they can

cancel the warrant and recover the moneyIf statutorily cancelled, money goes back to the

GRF and the agency loses it.

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Page 34: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Chapter 60 – Reconciling and Reporting1099 Misc Tax Information Report

Agencies should review at least quarterlyMost important – verify the 1099 flagVerify other vendor informationMake sure you are not paying the same vendor

under multiple vendor IDs

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Page 35: Presentation for OFMA April 10, 2014 Lynne Bajema, CPA Oklahoma State Comptroller

Statewide Accounting Manual

Questions???

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