Statewide Accounting Manual

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

2. Overview • Structure of New Manual • Comment Period • OMES Contacts • Terminology Changes • New or Frequently Missed Guidance

3. Introduction • Contents • How to Use the Manual • Gaining Access to the Accounting System • Contact Information • Brief Descriptions of Relevant Departments

4. Contents • Chapter 10 – Coding • Chapter 20 – Budgeting • Chapter 30 – Receipting and Depositing • Chapter 40 – Purchasing • Chapter 50 – Disbursing • Chapter 60 – Reconciling and Reporting • Chapter 70 – Internal Controls Guidance

5. Appendices • Glossary • Agency Listing • Revenue Codes • Expenditure Codes • Forms • Report Listing

6. Available in Two Forms • Web Pages • Quick, easy links • Will be updated as procedures are changed • Not easily printable into one manual • PDF Version • Easily printed in one document • Will be updated less frequently • Important to read DCAR newsletters

7. Comment Period • Through 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 21st • Both will be modified to incorporate comments during comment period and changes in statute from 2014 session. • Send comments to Stephanie.Langs@omes.ok.gov

8. DCAR Contacts • Accounting and Reporting – Jennie Pratt • Transaction Processing – Steve Wilson • Accounts Payable – Patricia Garcia • Financial Reporting (CAFR) – Matt Clarkson • Agency Business Services – Chris Forster or Steve Funck • Vendor File Management – Vicky Baker • OMES Finance/Flexible Spending – Dan Melton

9. Terminology Changes • To Align with PeopleSoft Terminology • Was ‘Fund’ – Now ‘Class Funding’ • Was ‘Object of Expenditure’ – Now ‘Account’ • Was ‘Agency Number’ – Now ‘Business Unit’

10. New Guidance or Reminders

11. Chapter 40 - Purchasing • Agencies 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.

12. Chapter 40 - Purchasing • The 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 purchases • Postage • Professional Service Contracts

13. Chapter 40 - Purchasing • P-Card Purchases between agencies • $5,000 ‘Break even’ • Purchases over $5,000 discouraged • There is a cost to the agency

14. 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

15. Chapter 40 - Purchasing • Reporting 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

16. Chapter 40 - Purchasing • Vendor 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 FORMS

17. 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

18. Chapter 50 - Disbursements • Scanning 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

19. Chapter 50 - Disbursements • Memberships 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.

20. Chapter 50 - Disbursements • HCM Model Project • Based on Human Resource issues • Agency who wants approval to participate should send letter to HCM explaining and detailing the need • Contact person is Ron Wilson 522-0422

21. Chapter 50 - Disbursements • Payroll Processing Timeline

22. There are several key dates within the biweekly payroll process.

23. Agencies have until 1500HRS (3:00 PM) Friday to process a 45 step payroll process and resolve any issues. Two-week work period ends. Employees should complete timesheets Supervisors should review timesheets Payperiod Employee Supervisor Payroll Process (45 Step)

24. 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. Payperiod Employee Supervisor Payroll Process (45 Step)

25. Payperiod Employee Supervisor Payroll Process (45 Step) Drop Dead Payday

26. Chapter 50 - Disbursements • Payroll Processing Timeline • Very tight timing • Agency at risk if deadlines not met • OMES will be contacting Directors

27. Chapter 60 – Reconciling and Reporting • 994 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.

28. Chapter 60 – Reconciling and Reporting • Reconciliation of Clearing Accounts and ASA’s • Must reconcile to OST and to State Accounting System • Form 11 • Deadline – 10th of each month

29. 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.

30. Chapter 60 – Reconciling and Reporting Failure to reconcile accounts results in: • Audit issues • Delay of the CAFR • Incorrect reporting of the State’s cash position

31. Chapter 60 – Reconciling and Reporting • Any reconciling items should be listed as such. PLUG NUMBERS ARE NOT ALLOWED Plug Numbers

32. Chapter 60 – Reconciling and Reporting • Reconciliation of Budgeted Cash to Actual • Summary of Receipts and Disbursements Report to – • Allotment of Budgeted Cash Report • Liabilities on the SRD should agree to detail

33. Chapter 50 - Disbursements • Statutory Cancellations of Warrants • Review the Outstanding Warrants Report and • A/P Statutory Cancellations Report • Address issues before they cancel by statute. • If agency catches prior to stat cancel, they can cancel the warrant and recover the money • If statutorily cancelled, money goes back to the GRF and the agency loses it.

34. Chapter 60 – Reconciling and Reporting • 1099 Misc Tax Information Report • Agencies should review at least quarterly • Most important – verify the 1099 flag • Verify other vendor information • Make sure you are not paying the same vendor under multiple vendor IDs

35. Statewide Accounting Manual • Questions???