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CFO Responsibilities Ricky A. Bejarano, CPA

CFO Responsibilities Ricky A. Bejarano, CPA. Chief Financial Officer Training September 26, 2011 Santa Fe Community College. Desired Outcomes/Objectives. Working Knowledge of y our Role & Responsibilities as CFO

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CFO Responsibilities Ricky A. Bejarano, CPA

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  1. CFO ResponsibilitiesRicky A. Bejarano, CPA Chief Financial Officer Training September 26, 2011 Santa Fe Community College

  2. Desired Outcomes/Objectives • Working Knowledge of your Role & Responsibilities as CFO • Working Knowledge of Statutes, Regulations (NMAC), and Policies Pertinent to Your Role as Agency CFOs • Beginning of On-Going Development of the Group as State CFOs, CPAs, CGFMs and Overall Financial Leaders of the State’s Agencies

  3. Why This is Important Essentially, We Are The Keepers of Truth We act on behalf of the Agency Head We play, or should play, a major role in controlling the money We’re responsible for the overall Internal Control Structure of the Agency We control, or should control, the flow of financial information

  4. Where Does FCD Get Its Authority? Chapter 6 Article 5 NMSA, 1978

  5. Section 6-5-1, NMSA, 1978 • "division" means the financial control division of the department of finance and administration; • "central accounting system" means the accounting system used by the division to process and record payments, deposits and other financial transactions for state agencies and departments; • "model accounting practices" means the accounting methods and procedures used by the state;

  6. Section 6-5-1, NMSA, 1978 • "state agency" means any department, institution, board, bureau, commission, district or committee of the government of the state and means every office or officer of any of the above; • "local public body" means any political subdivision of the state that expends public money from whatever source derived, including counties, county institutions, boards, bureaus or commissions; incorporated cities, towns or villages; drainage, conservancy, irrigation or other districts; charitable institutions for which appropriations are made by the legislature; and every office or officer of any of the above;

  7. Section 6-5-1, NMSA, 1978 • "processing document" means a form, including supporting documents, submitted by a state agency to the division that will be used by the division to record a financial transaction or make payment; • "statewide accounting system network" means the central accounting system, the central payroll system, the central treasury system and all other financial accounting systems operated by state agencies as one system through manual or automated interfaces

  8. Section 6-5-2(A), NMSA, 1978 • The division shall • maintain a central system of state accounts • devise, formulate, approve, control and set standards • prescribe procedures, policies and processing documents for use by state agencies • may require reports from state agencies as may be necessary to carry out its duties and functions.

  9. Section 6-5-2(B), NMSA, 1978 • The division shall issue a manual of model accounting practices; (Annually review/revise if necessary • State agencies shall comply with the model accounting practices established by the division, and the administrative head of each state agency shall ensure that the model accounting practices are followed.

  10. Section 6-5-2(C), NMSA, 1978 • State agencies shall implement internal accounting controls designed to prevent accounting errors and violations of state and federal law and rules related to financial matters • state agencies shall implement controls to prevent the submission of processing documents to the division that contain errors or that are for a purpose not authorized by law

  11. Section 6-5-2.1, NMSA, 1978 • Additional Duties – The Division SHALL - • coordinate all procedures for financial administration and financial control and integrate them into an adequate and unified system • collect and maintain the necessary information to produce ledgers, journals, registers and other supporting records and analyses • maintain information that adequately supports all entries in the state general ledger • conduct all central accounting and fiscal reporting for the state as a whole and produce interim statewide financial reports

  12. Section 6-5-2.1, NMSA, 1978 • state's comprehensive annual financial statements • prescribe, develop, operate and maintain a uniform statewide accounting system network • prescribe the uniform classification of accounts to be used by state agencies • Etc.

  13. Section 6-5-3, NMSA, 1978 • Legality and authority for proposed expenditures determined by division and state agency; encumbering funds.

  14. Section 6-5-4.1, NMSA, 1978 • Annual financial report. • The division shall compile a comprehensive annual financial report. To assist in the compilation of the report, each state agency shall compile, in accordance with generally accepted accounting principles, its financial statements on a schedule established by the division.

  15. Other Statutory Authority/Responsibilities • 6-5-6. Determinations to be made prior to issuance of warrants. • 6-5-7. Warrant or documentation to show fund from which payment is made; settlement of claims against state; account between state and treasury. • 6-5-8. Vouchers. • 6-5-9.1. Procurement card project. • 6-5-10. State agency reversions; director powers; compliance with federal rules.

  16. Chief Financial Officer • 2.20.5.8(A) NMAC • The administrative head of each agency is required to ensure that the model accounting practices, established by the division, are followed • It is incumbent upon the agency head to carry out the responsibilities of the chief financial officer

  17. Chief Financial Officer • 2.20.5.8(B) NMAC • An agency head may assign the responsibilities of the CFO to any employee within the agency that has the educational background, knowledge, and experience necessary to supervise, monitor, and control the state agency’s accounting function. The delegation must be in writing, must be for a specific fiscal, and must be approved by the division.

  18. 2.20.5.8 NMAC – CFO is responsible for ensuring that: • Internal control structure exists and is functioning properly • All transactions are recorded daily in the agency’s accounting records • All transactions are properly classified in the agency’s records • Monthly cash reconciliations • All transactions comply with federal & state law • All expenditures have a public benefit or purpose, are necessary & are consistent with the appropriation and expenditure authority

  19. 2.20.5.8 NMAC – CFO is responsible for ensuring that: • All accounting systems, including subsidiary systems, are recording transactions timely, completely, and accurately • Payments to vendors are accurate, timely • All information requested by the division is provided timely and accurately • All financial information reported to agency management & oversight agencies is timely and accurate

  20. 2.20.5.8 NMAC – CFO is responsible for ensuring that: • The state agency’s annual financial statement is completed by the deadline established by the State Auditor and that the audit report includes an unqualified opinion • A budgetary control system, approved by the state budget division of the department of finance and administration is in place and functioning

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