1 / 61

Verifying the Trial Balance - Update

Department of Finance and Administration Financial Control Division Chief Financial Officer Training September 26, 2011. Verifying the Trial Balance - Update. Objectives Provide a list of tools for the monthly verification Month-End Close Checklist Tools from SHARE

cicero
Download Presentation

Verifying the Trial Balance - Update

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Department of Finance and Administration Financial Control Division Chief Financial Officer Training September 26, 2011 Verifying the Trial Balance - Update

  2. Objectives • Provide a list of tools for the monthly verification • Month-End Close Checklist • Tools from SHARE • FY 12 SHARE FINANCIALS Period Closing Schedule • Tips and Tricks Verifying the trial balance - update

  3. Objectives • Review Significant Topics from the Closing Instructions • Request to Pay Prior Year Bills • Warrant Cancelation Process • Closing Encumbrances/Purchase Orders • Stale Date Warrant Process • Accounts Payable • Due To and Due From Verifying the trial balance - update

  4. Objectives • Review Importance of the Manual of Model Accounting Practices • FCD and State Agencies Mission and Objectives regarding financial information • Statewide Accounting System Network • Internal Control Framework • Documents Polices and Procedures • Explain the Help Desk Process Verifying the trial balance - update

  5. Ready… Verifying the trial balance - update

  6. Set… Verifying the trial balance - update

  7. GO… Verifying the trial balance - update

  8. Provide a list of tools for the monthly verification • Month-End Close Checklist (Handout) Verifying the trial balance - update

  9. Provide a list of tools for the monthly verification • Month-End Close Checklist • Tied to the Verifying the Trial Balance Manual • Updated and specifically for agencies only • Use each month in tandem with the FY 12 SHARE FINANCIALS Period Closing Schedule • Start with a trial balance report or trial balance from a query Verifying the trial balance - update

  10. Provide a list of tools for the monthly verification • Month-End Close Checklist • Soft copy available at http://nmdfa.state.nm.us/Manuals.aspx • Share the manual and training with all staff that prepare or use financial information from SHARE Verifying the trial balance - update

  11. Provide a list of tools for the monthly verification • Month-End Close Checklist • Report, Query, and Inquiry Navigation (Handout) http://nmdfa.state.nm.us/Manuals.aspx Verifying the trial balance - update

  12. Provide a list of tools for the monthly verification • Month-End Close Checklist • Report, Query, and Inquiry Navigation • Tools from SHARE including the navigation and criteria requirements • Color-coded by tool type (Report, Query, or Inquiry) • Reports – Information pulled and summarized in a PDF or CSV format Verifying the trial balance - update

  13. Provide a list of tools for the monthly verification • Month-End Close Checklist • Report, Query, and Inquiry Navigation • Color-coded by tool type (Report, Query, or Inquiry) • Query – Detailed information for the Entire General Ledger, Period, Fiscal Year, Account, Department, Fund in Excel or HTML format • Inquiry – On-line inquiry at a summary level or specific transaction on demand and downloadable to Excel • Broken out by FIN or HCM • Working document; add, subtract, or make notations on specific tools • Make the document yours Verifying the trial balance - update

  14. Provide a list of tools for the monthly verification • Month-End Close Checklist • FY 12 SHARE FINANCIALS Period Closing Schedule (Handout) http://nmdfa.state.nm.us/General_Ledger.aspx Verifying the trial balance - update

  15. Provide a list of tools for the monthly verification • Month-End Close Checklist • FY 12 SHARE FINANCIALS Period Closing Schedule • Deadlines for Regular Journals versus Payroll Corrections • Use the Month-End Close Checklist as a reminder to ensure all journals have posted • Copy unposted journals to the next open accounting period and delete all journals not posted in the closed period Verifying the trial balance - update

  16. Provide a list of tools for the monthly verification • Month-End Close Checklist • Table of Contents • Verifying the Trial Balance http://nmdfa.state.nm.us/Manuals.aspx Verifying the trial balance - update

  17. Provide a list of tools for the monthly verification • Month-End Close Checklist • Table of Contents • Verifying the Trial Balance • Complete each month before the month is closed • Helps agencies take a proactive role in the accounting duties • Aids CFOs in taking responsibility for the the general ledger • Ensure the correct accounts are used when preparing accounting transactions • Review all accounts, do not ignore the balance sheet accounts Verifying the trial balance - update

  18. Provide a list of tools for the monthly verification • Month-End Close Checklist • Table of Contents • Verifying the Trial Balance • General Ledger and Report information are only as good as the data behind them • Impacts the Reversion Calculation • Ensures accuracy of available budget • Allows on-the-fly reporting for program managers/management Verifying the trial balance - update

  19. Provide a list of tools for the monthly verification • Month-End Close Checklist • Table of Contents • Verifying the Trial Balance Changes/Updates • Deposits Section • Changes to queries made, better tools • Changed query Verifying the trial balance - update

  20. Provide a list of tools for the monthly verification • Month-End Close Checklist • Table of Contents • Verifying the Trial Balance Changes/Updates • Deposits Section • Changes to queries made, better tools • Deleted duplicate query and Added new query Verifying the trial balance - update

  21. Provide a list of tools for the monthly verification • Month-End Close Checklist • Table of Contents • Verifying the Trial Balance Changes/Updates • Review Outstanding Warrants Section (NEW) Verifying the trial balance - update

  22. Provide a list of tools for the monthly verification • Month-End Close Checklist • Table of Contents • Verifying the Trial Balance Changes/Updates • Review Outstanding Warrants Section (NEW) Verifying the trial balance - update

  23. Provide a list of tools for the monthly verification • Month-End Close Checklist • Table of Contents • Verifying the Trial Balance Changes/Updates • Review Outstanding Warrants Section (NEW) Verifying the trial balance - update

  24. Provide a list of tools for the monthly verification • Month-End Close Checklist • Table of Contents • Verifying the Trial Balance Changes/Updates • Validate Payroll Entries • Updated web reference Verifying the trial balance - update

  25. Provide a list of tools for the monthly verification • Month-End Close Checklist • Table of Contents • Verifying the Trial Balance Changes/Updates • Unposted Journal Entries • Updated journal sources Verifying the trial balance - update

  26. Review Significant Topics from the Closing Instructions • 2011 Closing Instructions http://nmdfa.state.nm.us/FY11_Year_End_Closing.aspx Verifying the trial balance - update

  27. Review Significant Topics from the Closing Instructions • 2011 Closing Instructions • Deadlines Page (Handout) Verifying the trial balance - update

  28. Review Significant Topics from the Closing Instructions • 2011 Closing Instructions • Deadlines Page (Handout) Verifying the trial balance - update

  29. Review Significant Topics from the Closing Instructions • 2011 Closing Instructions • Deadlines Page • Tag/Pull Out/Copy and use each year • Deadlines are relatively the same each year • Allows users to Pre-plan Year End • Discuss issues early, not day of deadline Verifying the trial balance - update

  30. Review Significant Topics from the Closing Instructions • 2011 Closing Instructions • Significant Topics from the Closing Instructions • Request to Pay Prior Year Bills (RTPPYB) – Section CDS7 • Chapter 6-10-4, NMSA 1978 – Agencies can request approval to pay prior year expenditures as long as sufficient funds (budget and cash) were available (Handout) Verifying the trial balance - update

  31. Review Significant Topics from the Closing Instructions • 2011 Closing Instructions • Significant Topics from the Closing Instructions • Request to Pay Prior Year Bills (RTPPYB) – Section CDS7 • New Requirement for Capital Projects/Multi-year Appropriations • Expenditures need to be recognized in the year they occurred • Prepare all vouchers before year end deadline OR • Request approval to record as year end accounts payable Verifying the trial balance - update

  32. Review Significant Topics from the Closing Instructions • 2011 Closing Instructions • Significant Topics from the Closing Instructions • Request to Pay Prior Year Bills (RTPPYB) – Section CDS7 • New Requirement for Capital Projects/Multi-year Appropriations • Any prior year bills related to multi-year appropriations will require RTPPYB (Handout) Verifying the trial balance - update

  33. Verifying the trial balance - update

  34. Review Significant Topics from the Closing Instructions • 2011 Closing Instructions • Significant Topics from the Closing Instructions • Request to Pay Prior Year Bills (RTPPYB) – Section CDS7 • New Requirement for Capital Projects/Multi-year Appropriations • Any prior year bills related to multi-year appropriations will require RTPPYB • Being used as a mechanism to get agencies to record transactions in the proper year • Work closely with local governments to get all bills timely Verifying the trial balance - update

  35. Review Significant Topics from the Closing Instructions • 2011 Closing Instructions • Significant Topics from the Closing Instructions • Warrant Cancellation Process – Section WRT1 • Attachment L • Process Flows for Before and After the Year End Deadline Verifying the trial balance - update

  36. Review Significant Topics from the Closing Instructions • 2011 Closing Instructions • Significant Topics from the Closing Instructions • Warrant Cancellation Process – Section WRT1 • Attachment L • Process Flows for Before and After the Year End Deadline Verifying the trial balance - update

  37. Review Significant Topics from the Closing Instructions • 2011 Closing Instructions • Significant Topics from the Closing Instructions • Warrant Cancellation Process – Section WRT1 • Attachment L • Process Flows for Before and After the Year End Deadline • Type 1 – Warrant reissued to same vendor and same dollar amount • Type 2 – Cancels warrant completely by reversing all accounting entries • Journal entries needed for Payment Loads and Third Party Verifying the trial balance - update

  38. Review Significant Topics from the Closing Instructions • 2011 Closing Instructions • Significant Topics from the Closing Instructions • Warrant Cancellation Process – Section WRT1 • Attachment L • Process Flows for Before and After the Year End Deadline • **IMPORTANT** Warrant must be cancelled before it can be reissued Verifying the trial balance - update

  39. Review Significant Topics from the Closing Instructions • 2011 Closing Instructions • Significant Topics from the Closing Instructions • Close Encumbrances/Purchase Orders – Section ENC4 • Three processes documented • Process 1 – Processing Vouchers in July for Goods and Services Received on or before June 30 • **Important** Change the accounting and the budget dates to June 30 for the transaction to be recorded in the correct accounting period Verifying the trial balance - update

  40. Review Significant Topics from the Closing Instructions • 2011 Closing Instructions • Significant Topics from the Closing Instructions • Close Encumbrances/Purchase Orders – Section ENC4 • Three processes documented • Process 2 – Disencumbering or Closing Encumbrances • Year-End Process 2A – 2F • Preparing Purchase Orders without Attached Voucher for Closing with the Reconciliation Workbench • Preparing Purchase Orders with Attached Vouchers for Closing with the Reconciliation Workbench Verifying the trial balance - update

  41. Review Significant Topics from the Closing Instructions • 2011 Closing Instructions • Significant Topics from the Closing Instructions • Close Encumbrances/Purchase Orders – Section ENC4 • Three processes documented • Process 2 – Disencumbering or Closing Encumbrances • Year-End Process 2A – 2F • Closing Purchase Orders through Reconciliation Workbench (No Requisition) • Preparing Purchase Orders Sourced by Requisitions without Attached Vouchers for Closing with the Reconciliation Workbench Verifying the trial balance - update

  42. Review Significant Topics from the Closing Instructions • 2011 Closing Instructions • Significant Topics from the Closing Instructions • Close Encumbrances/Purchase Orders – Section ENC4 • Three processes documented • Process 2 – Disencumbering or Closing Encumbrances • Year-End Process 2A – 2F • Preparing Purchase Orders Sourced by Requisitions with Attached Vouchers for Closing with the Reconciliation Workbench • Closing Purchase Orders with Requisitions Reconciliation Workbench Verifying the trial balance - update

  43. Review Significant Topics from the Closing Instructions • 2011 Closing Instructions • Significant Topics from the Closing Instructions • Close Encumbrances/Purchase Orders – Section ENC4 • Three processes documented • Process 2 – Disencumbering or Closing Encumbrances • Review each process to determine the appropriate method for closing the encumbrance/purchase order • Benefits • Budget released • Elimination of burden on data storage • Eliminate the need to “ignore” transactions for budget checking process Verifying the trial balance - update

  44. Review Significant Topics from the Closing Instructions • 2011 Closing Instructions • Significant Topics from the Closing Instructions • Close Encumbrances/Purchase Orders – Section ENC4 • Three processes documented • Process 3 – Create or Reestablish 2012 Purchase Orders Verifying the trial balance - update

  45. Review Significant Topics from the Closing Instructions • 2011 Closing Instructions • Significant Topics from the Closing Instructions • Stale Dated Warrants/Outstanding Warrants • Review on monthly basis • Contact vendors with outstanding warrants older than 90 days Verifying the trial balance - update

  46. Review Significant Topics from the Closing Instructions • 2011 Closing Instructions • Significant Topics from the Closing Instructions • Stale Dated Warrants/Outstanding Warrants • Cancel warrant and reissue as appropriate • Stale dated warrants should be few and far between when outstanding warrants are reviewed each month Verifying the trial balance - update

  47. Review Significant Topics from the Closing Instructions • 2011 Closing Instructions • Significant Topics from the Closing Instructions • Year End Accounts Payable Accrual – Section CDS1.003g • An agency cannot obligate the State for liabilities once the appropriation period has lapsed, General Appropriation Act, Laws of 2010 and Chapter 6-10-4, NMSA 1978 • Request approval to set-up accrual for all amounts that cannot be vouchered before deadline • Can be estimated with sufficient information to support estimate • Can prevent RTPPYB process Verifying the trial balance - update

  48. Review Significant Topics from the Closing Instructions • 2011 Closing Instructions • Significant Topics from the Closing Instructions • Year End Accounts Payable Accrual – Section CDS1.003g Verifying the trial balance - update

  49. Review Significant Topics from the Closing Instructions • 2011 Closing Instructions • Significant Topics from the Closing Instructions • Setting up Due From and Due To – Section OPT.001 • For the CAFR, we need both sides to have accrual (interfund and interagency) • Numerous obligations are being set-up on one side with the other side unaware or in dispute Verifying the trial balance - update

  50. Review Significant Topics from the Closing Instructions • 2011 Closing Instructions • Significant Topics from the Closing Instructions • Setting up Due From and Due To – Section OPT.001 • Only set-up amounts as Due From and Due To versus Accounts Receivable or Accounts Payable • Due From/Due To are for the movement of cash with no underlying transaction • All other transactions should be processed/recorded as AR or AP (i.e. services rendered, product received, reimbursements, etc.) Verifying the trial balance - update

More Related