Verifying the Trial Balance - Update

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VERIFYING THE TRIAL BALANCE - UPDATE

Department of Finance and AdministrationFinancial Control DivisionChief Financial Officer Training September 26, 2011

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VERIFYING THE TRIAL BALANCE - UPDATE 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

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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

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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

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VERIFYING THE TRIAL BALANCE - UPDATE Ready…

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VERIFYING THE TRIAL BALANCE - UPDATE Set…

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GO…

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VERIFYING THE TRIAL BALANCE - UPDATE Provide a list of

tools for the monthly verification Month-End Close

Checklist (Handout)

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VERIFYING THE TRIAL BALANCE - UPDATE 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

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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

http://nmdfa.state.nm.us/Manuals.aspx


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Checklist Report, Query,

and Inquiry Navigation (Handout)




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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

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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

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Checklist FY 12 SHARE

FINANCIALS Period Closing Schedule (Handout)

http://nmdfa.state.nm.us/General_Ledger.aspx





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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

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Checklist Table of

Contents Verifying the

Trial Balancehttp://nmdfa.state.nm.us/Manuals.aspx



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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

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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

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Table of Contents Verifying the Trial Balance Changes/Updates

Deposits Section Changes to queries made, better tools

Changed query

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Deposits Section Changes to queries made, better tools

Deleted duplicate query and Added new query

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Review Outstanding Warrants Section (NEW)

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Validate Payroll Entries Updated web reference

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Unposted Journal Entries Updated journal sources

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VERIFYING THE TRIAL BALANCE - UPDATE Review

Significant Topics from the Closing Instructions 2011 Closing

Instructionshttp://nmdfa.state.nm.us/FY11_Year_End_Closing.aspx

http://nmdfa.state.nm.us/FY11_Year_End_Closing.aspx



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Instructions Deadlines Page

(Handout)

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Instructions Deadlines Page

(Handout)

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VERIFYING THE TRIAL BALANCE - UPDATE 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

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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)

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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

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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)

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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

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Significant Topics from the Closing Instructions Warrant Cancellation Process – Section WRT1

Attachment L Process Flows for Before and After the Year End

Deadline

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Deadline

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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

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Deadline **IMPORTANT**

Warrant must be cancelled before it can be reissued

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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

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VERIFYING THE TRIAL BALANCE - UPDATE Review Significant Topics from the Closing

Instructions 2011 Closing Instructions


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

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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

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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

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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

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Three processes documented Process 3 – Create or Reestablish 2012 Purchase

Orders

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Significant Topics from the Closing Instructions Stale Dated Warrants/Outstanding Warrants

Review on monthly basis Contact vendors with outstanding warrants older than

90 days

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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

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VERIFYING THE TRIAL BALANCE - UPDATE 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

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Significant Topics from the Closing Instructions Year End Accounts Payable Accrual – Section

CDS1.003g

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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

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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.)

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VERIFYING THE TRIAL BALANCE - UPDATE Review Importance of the Manual of

Model Accounting Practices Manual of Model Accounting Practices (MAPs)http://nmdfa.state.nm.us/Manuals.aspx

Statewide Accounting System Network Network = Business Processes Business Processes = Predictable Processes – Objectives

are achieved by processes that predictably produce desired results

Network is based upon strategic, operational, compliance, and reporting objectives, all of which are mandated by law, statute, or rule



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Model Accounting Practices Manual of Model Accounting Practices

(MAPs) FCD and State Agencies Mission and Objectives

regarding financial information

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Model Accounting Practices Manual of Model Accounting Practices (MAPs)

FCD and State Agencies Mission and Objectives regarding financial information

Objectives Strategic, Operational, Reporting, and Compliance (Type of

What) Specific objectives that ensure accurate and timely

financial information (What) Tied to Statutes, Laws, and Rules for compliance and

mitigation of risk (Why) Parties Responsible (Who) Strategy for Achieving Objectives (To Do’s)

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Model Accounting Practices Manual of Model Accounting Practices (MAPs)

Internal Control Framework Tone of the organization

Established by statutes and rules Adoption of Generally Accepted Accounting Practices Best Practices

2.20.5.8 NMAC, Responsibility for the Accounting Function Appendix A – SHARE Chartfields (Handout)

Chart with available chartfields Defining chartfields

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Model Accounting Practices Manual of Model Accounting Practices

(MAPs) Documents Polices and Procedures

Standards, Policies, Procedures, and Processing Flowcharts

FINANCIALS HCM Can be a working document, soft copy is available

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VERIFYING THE TRIAL BALANCE - UPDATE Explain the Help Desk Process

(Handout) http://nmdfa.state.nm.us/Help_Desk.aspx

http://nmdfa.state.nm.us/Help_Desk.aspx

http://nmdfa.state.nm.us/Help_Desk.aspx

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The way to get started is to quit talking and begin doing. – Walt Disney

What you do speaks so loudly that I cannot hear what you say. – Ralph Waldo Emerson

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In the past a leader was a boss. Today’s leaders must be partners with their people…they no

longer can lead solely based on positional power. – Ken Blanchard

Satisfaction does not come with achievement, but with effort. Full effort is full victory. – Mahatma

Gandhi

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It has been my observation that most people get ahead during that time that others waste time. –

Henry Ford

You’ve got to love what you do to really make things happen. – Philip Green

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VERIFYING THE TRIAL BALANCE - UPDATE Questions????

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