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Procurement and Disbursement Guidelines

Bulletin Number: A-630
Date Issued: 2/10/2012 Date Last Updated: 2/10/2012
Bulletin Name: FYE Processing and SFS Cutover Strategy for March - April timeframe
PURPOSE

FISCAL YEAR END CLOSE
To explain Central Accounting System (CAS) fiscal year-end processing of transactions and provide important information that impacts the State’s financial plan and financial reports. 

SFS CUTOVER STRATEGY
To explain cutover issues from the current CAS to the new SFS. These procedures are intended to minimize problems, help facilitate the conversion of appropriation data so that agencies will have access to their funds as quickly as possible and to ensure proper reporting during the cutover. 

This bulletin should be read in its ENTIRETY. 

CAS AVAILABILITY

During the month of March 2012, the CAS will be available, at a minimum, from 8:00 am to 5:00 pm on Saturdays and will also be available from 8:00 am to 5:00 pm on Sunday, March 25, 2012. 

  • Agencies may request CAS availability beyond 6:00 pm weekdays or beyond 5:00 pm Saturdays by contacting the SFS Helpdesk by 3:00 pm the prior business day at (518) 457-7737.
  • Agency staff should ensure that their own financial management systems will be active during extended hours.

FRINGE BENEFIT
AND INDIRECT COST
ASSESSMENTS

All fringe benefit / indirect cost assessments which remain unpaid at this time are PAST DUE and must be paid immediately. Please refer to Accounting Bulletin A-624 issued May 5, 2011 for payment instructions.

It is expected that ALL agencies will promptly review, reconcile and pay their FBIC assessments within 30 days of receipt.  If the unpaid balance shown on the LED080 DOES NOT agree with agency-maintained records and cannot be reconciled by agency personnel, then this must be promptly reported to Bureau of State Accounting Operations (BSAO) - Revenue Accounting Section at (518) 474-8991.  BSAO will make every attempt to resolve differences but ultimate responsibility for reconciliation of unpaid balances rests with the agency since payments at less than the full rate require specific legislation, regulation or an approved waiver from the Division of the Budget.  OSC does not have the authority to forgive or issue waivers for unpaid balances.

In order for a seamless transition from CAS to SFS to occur, all unpaid balances at time of conversion must be zero.  An additional LED080 will be run as of February 29, 2012. Agencies must pay their total balance by March 20, 2012.  OSC will aggressively work with State agencies and the Division of the Budget to ensure that budget certificates are in place and agencies take all actions necessary to make certain that all FBIC assessments are promptly paid. The Fringe Benefit/Indirect Cost billing process for the last quarter of fiscal year 2011-12 will be run on March 30, 2012. No payroll transactions will be processed after March 29, 2012.

PAYROLL

Since April 1 is the beginning of a new fiscal year, no special accommodations will be made to process any 2012-13 payrolls prior to April 1, 2012.

The April 2, 2012 Military & Naval Affairs, April 5, 2012 Institution and April 11, 2012 Administration payroll will be bulkloaded and released in the SFS during the cutover period.

A subsequent Accounting Bulletin will be issued shortly with information related to the split payroll.

NEGATIVE PAYROLL
SEGREGATIONS

In order to avoid conversion issues with agency appropriation/segregation records, it is critical to eliminate all negative personal service segregations.  Any negative personal service segregations as of February 29 must be eliminated before March 16, 2012 and any March negative personal service segregations must be cleaned up immediately. In early February 2012, OSC will provide a report of projected negative personal service segregation status (CTL620P) to make certain that agencies allocate sufficient segregation authority to finance all payroll costs through March 2012. Staff of OSC’s BSAO-Appropriation Accounting Section will review all budget certificates allocating other than personal service to confirm that sufficient segregation authority is available for projected negative personal service costs.  Budget certificates may be held or returned to agencies if it appears that the agency is inattentive to the need to segregate sufficient personal service money to cover agency payrolls charged during SFY 2011-12.

MARCH 31
REQUIREMENTS

Friday, March 30, 2012 is the last business day of State fiscal year (SFY) 2011-2012 (the last day to make a payment is Thursday, March 29, 2012).

Pursuant to various sections of law and to complete the execution of the SFY 2011-12 financial plan, on March 30, 2012:  

  • No voucher payments will be made.
  • Processing of Journal Transfers/Revenue Transfers will be restricted to OSC-generated year-end closing entries.

ACCESS TO OSC

Agencies are reminded that access to deliver important documents to OSC processing units is restricted.  Documents that must be processed by March 30 must be sent through the Receiving Area on the Howard Street side of 110 State Street.  The Receiving area is staffed Monday thru Friday, 8:00 am to 4:00 pm.  The telephone number for the Receiving Desk is 408-3100 and the telephone number for the Mailroom Service Desk is 474-3438.  The Security Desk in the lobby at 110 State Street will NOT accept deliveries. To avoid any last minute problems, please call the numbers above.

BUDGET
CERTIFICATE
PROCESSING

State agencies will need to be proactive in working with the Division of Budget as early as possible in the allocation of funds (processing budget certificates) in order for there to be sufficient segregation authority available on the Central Accounting System before “Go Live”.  This will ensure that all payments can be properly processed at the end of March and also so that all necessary segregations are in place for any mandatory payments that are required to be paid during the “blackout period”, when both CAS and SFS are not operational. 

Approved Budget Certificates establishing either new segregations or new Federal Grant awards (not currently existing in CAS) should be received by the Appropriation Section of OSC as early as possible, but not later than March 16, 2012, to allow for sufficient time in the processing of both the budget certificate, any payments that need to occur, and to update various SFS trees and files.  Budget certificates for existing segregations and/or grant awards must be received no later than March 23.  Budget certificates received after March 23 will be rejected unless sufficient information is provided and determined by OSC that the certificate is necessary for a mandatory payment,  which will occur either at the end of March or during the “Blackout Period”.  All rejected Budget Certificates will need to be resubmitted within SFS because online Budget Journals will need to be created and processed.

FEDERAL GRANTS Federal grant awards will no longer be attached to segregation records in SFS.  Therefore, any Federal grants which have not been previously segregated in CAS must be sent to OSC with the approved Budget Certificate by March 16, 2012 (as noted above).  After March 16, OSC will no longer process “new” grant awards within CAS and State Agencies should send the grant awards directly to OSC (without the Budget Certificate) for initial entry within the SFS Grants and Projects modules after Go-Live.  Agencies will need to adhere to the new policies and procedures concerning this, which will be provided to agencies once finalized.

COST CENTERS

New cost centers established in CAS that are needed for SFS processing must be mapped in the SFS cost center mapping table by March 16, 2012

  • For Phase 1 agencies this relates to all payments made through PayServ (payroll, OT meals, etc) and any cost centers used in a bulkload process. 
  • For Future Phase agencies all cost centers must be mapped. 

PayServ impacts:  

  • Cost center updates to PayServ Position pools need to be completed by March 20, 2012.
  • SFS will provide PayServ with a file of Cost Centers that are properly mapped, have valid chart field values and have appropriate personal service budgets in SFS as part of the second Full Dress Rehearsal (FDR2) to be used in the PayServ conversion to SFS.

Payroll Bulletin 1090 must be referenced for full instructions on updates required in PayServ.

REVENUE
CLASSIFICATIONS
Agencies are required to take necessary steps to prepare and submit Revenue Transfer documents to be received no later than March 28 to properly classify receipts that were initially recorded as Unclassified Miscellaneous Receipts (object 35390) during the current fiscal year.

RECEIPTS-REVENUE
CONTRACTS AND
REPAYMENT
AGREEMENTS
Agencies are reminded that financial and program audits are conducted on a fiscal year basis.  Therefore, it is important that revenue journals are periodically reviewed to determine that revenue contract and repayment agreement receipts are correctly recorded.  Where adjustments are determined necessary, Journal/Revenue Transfer documents (AC22) must be prepared and submitted to OSC’s BSAO’s Revenue Accounting Section for review and processing.  Please refer to Accounting Bulletin A-492, issued on November 13, 2001, for complete instructions relating to the reporting and recording of revenue contract and repayment agreement receipts.

CASH ADVANCE
ACCOUNTS

All cash advance accounts (ie. petty cash, travel, confidential, etc) must be reviewed and closed, if appropriate. Please take the necessary steps to close any unnecessary accounts before March 1, 2012 and see the New York State Accounting System User Procedure Manual, (Volume XI), Section 4.0270 for instructions on liquidating an advance account.  This will reduce the number of cash advance accounts from being converted from CAS to SFS.

For cash advance accounts that must remain open, agencies are required to review the funding levels for advance accounts (e.g. petty cash, travel, confidential, etc.) and reduce the authorized funding levels to the amount actually needed to sustain agency needs.  Use of ‘Quick Pay’ vouchers and credit cards are preferred methods of payment for small dollar purchases and travel expenses.  See the Controls and Special Procedures Manual (Volume XI); Section 4.025 for instructions to reduce a cash advance.

REPLACEMENT
CHECKS

Any check issued on, or before, March 29, 2012, will continue to be processed as they currently are done now in CAS. See Section 7.0100 of the Controls and Special Procedures Manual (Volume XI).

Any checks issued on, or after, April 2, 2012 subsequent to the implementation of SFS, will be processed according to the new procedures which will be available in the Guide to Financial Operations.

UNCASHED CHECKS

Agencies are reminded that Section 102 of the State Finance Law pertains to all State accounts, including agency cash advance accounts.  Any check issued on, or before, December 31, 2010, which remained outstanding as of December 31, 2011 must be canceled and the proceeds of such cancellation are to be transferred to the State’s Abandoned Property Fund following the procedures outlined in Section 7.0500 of the Controls and Special Procedures Manual (Volume XI).   Questions on this section of the user procedure manual may be directed to the Bureau of State Accounting Operations at (518) 474-4006 or RevTaxRptg@osc.state.ny.us.

CONTRACT
APPROVAL

New contracts, contract amendments, change orders, purchase orders, and purchase authorizations not approved by OSC prior to SFS go-live will not be converted to SFS.   To help ensure that OSC review will be completed prior to go-live, agencies are strongly encouraged to submit contract transactions to OSC by March 2, 2012.  Transactions OSC is unable to approve prior to SFS go-live will be non-approved.  The agency will be notified by BOC and required to enter the transaction(s) in SFS once it is operational.  Agencies should refer to Bulletin G-246 Contracting Procedures During Transition to Statewide Financial System for additional information.

Any contract transactions not received by March 27, 2012 will not be reviewed and will be returned to the agency in their entirety.  The agency will be required to enter the transaction in SFS once it is operational, and resubmit the documentation to OSC at that time.

OSC’s Bureau of Contracts will continue to accept Contract Reporter Exemption Requests and Grant Procurement Records for review and approval during the cutover and blackout periods.

CAUTION:  Agencies should ensure that contract transactions, including purchase orders, which must be approved prior to the end of the fiscal year (See Bulletin G-163), are received by OSC with sufficient time to allow review, and should utilize the CAS Contract Batch Inquiry screen, Menu 16 to carefully monitor the status of contract transactions submitted to OSC.

VOUCHERS

All vouchers requiring payment prior to the SFS cutover must be submitted to allow payment on or before March 29, 2012.  

Any voucher not paid prior to the cutover will be returned to the Agency unpaid and must be recreated and resubmitted in SFS after Go Live.

No vouchers will be paid on March 30, 2012.  Vouchers to be paid before March 29, 2012 must be processed as follows:

  • Non-Quick Pay Vouchers must be received by OSC no later than March 23, 2012.
  • Vouchers that require manual keying by OSC personnel must be received by March 16, 2012.
  • Last day to bulkload vouchers to CAS is March 28, 2012.      
  • Quick Pay vouchers, including travel, must be certified by March 28, 2012.
  • Quick Pay Refund vouchers (Batch Type KRA) must be certified by March 27, 2012.
  • Scheduled Payment Dates for Refund Vouchers (CRA or KRA Batch Types) must be on or before March 28, 2012.
  • Any vouchers charging Federal funds should have a scheduled payment date no later than March 28, 2012. Federal vouchers not disbursed in CAS will have to be entered into SFS following the new procedures.
  • Scheduled Payment Dates on all other voucher types must be on or before March 29, 2012.
  • All vouchers should have a liability date no later than March 30.  Vouchers will be rejected with liability dates after March 30.
  • Payments required to be made on the first 2 business days of April to ACH enrolled payees (Municipalities, Debt Service payment recipients, etc) must be submitted as Mandatory Payments to SFS in order to make arrangements to have payments wired in April rather than “backing up” the payment date to effectuate an ACH in March since this will result in financial plan variances.
  • Any non-Federal vouchers not disbursed in CAS by March 29, 2012 will have to be entered into SFS following the new procedures.
  • Any voucher not disbursed in CAS as of March 30, 2012 will be deleted off of the system as an unpaid voucher and will have to be entered in SFS after the cutover period.
  • All Quick Pay Vouchers that were entered onto the CAS, but were not certified for payment, will be deleted off the system by OSC personnel on March 30, 2012.  These vouchers will have to be entered into the SFS following the new procedures.

JOURNAL/REVENUE
TRANSFERS

  • Agencies will not have access to the journal transfer or revenue transfer conversations following close of business March 29, 2012.
  • Payroll charges that need to be distributed to other funds or accounts, must be journal transferred by the close of business March 29, 2012.
  • NO personal service JV’s will be processed after March 29 due to the timing of the Fringe Benefit/Indirect Cost billing processes for the last quarter of FY 2011-12.
  • OSC will not process journal/revenue transfers received after March 28, 2012.
  • All journal/revenue transfers should have a liability date no later than March 30, 2012.  Under no circumstances should a journal/revenue transfer be processed with a liability date in April.
  • Journal/Revenue transfer bulkloads cannot be accepted by OSC after 3:00pm on March 29, 2012.  Do NOT include journal/revenue transfer transactions in any bulkload FTP transmissions for March 30, 2012 as these cannot be processed.
  • Processing of documents will resume when SFS is available after the cutover period.
  • Agencies should make all efforts to fund all rejected vouchers appearing on the daily VOU370 Checkwriter Fund Error Report before March 27, 2012 or they will have to be entered into SFS following the new procedures.

REFUND OF
APPROPRIATION and
REPORT OF MONIES
RECEIVED

FISCAL YEAR END

Refund of Appropriation Expenditure (AC1286) and Report of Monies Received (AC909) documents must be received by OSC Bureau of State Accounting Operations Revenue Accounting Section (BSAO) and the NYS Department of Taxation and Finance Division of the Treasury (Treasury) no later than March 28, 2012 in order to be processed by close of business on March 30, 2012.  Any documents keyed in CAS that have not been processed by close of business March 30, will have to be entered into the SFS following the new procedures and forms posted on the OSC website.   
Agencies are reminded that they are required to data enter the statewide accumulator codes on all Refund of Appropriation documents. All agencies should refer to Section 5.0100 of the Revenue Accounting Procedures Manual (Volume IV) for instruction for preparing refund of appropriation documents. Questions on this section of the manual may be directed to the Bureau of State Accounting Operations at (518) 474-4018 or by email at RevenueAccounting@osc.state.ny.us.

OSC will NOT process Federal Refunds after March 21, 2012.  Refer to Section 5.0500 of the Control and Special Procedures Manual (Volume XI) for instructions in preparing the correct forms when processing a refund.  Any questions should be directed to Mike Affinito at (518) 486-1241.

CUTOVER PERIOD

During the cutover period beginning April 1, 2012, Treasury will continue to make deposits and agencies will be required to send in special cutover period versions of the Refund of Appropriation Expenditure-Cutover (AC1286-cutover) and Report of Monies Received-Cutover (AC909-cutover) forms which contain fields for both the new SFS coding as well as the existing CAS coding to BSAO and Treasury.  Agencies are cautioned to only submit documents for monies received during the cutover period.  BSAO Revenue Accounting will enter all transactions for documents received and deposited during the cutover period.

Upon successful completion of the cutover to SFS, agencies will be required to enter all new transactions utilizing the appropriate SFS accounting module.  New SFS Refund of Appropriation Expenditure (AC1286-S) and Report of Monies Received (AC909-S) forms which contain only SFS coding have been developed for ongoing use.  BSAO and Treasury will still require that paper documents be transmitted to them until a time to be determined by them. Agencies will be notified by BSAO and Treasury when to discontinue the forwarding of paper documents.

Documents are available by scrolling to SFS forms at the following address:http://www.osc.state.ny.us/agencies/index.htm

FEDERAL FUNDS-
PAYMENTS

In order for the State to be reimbursed for payments made from federal funds by March 30, 2012, vouchers and journal transfers including fringe benefit payments must be paid by March 28, 2012. The payment date on vouchers containing charges against federal funds must be on or before March 28, 2012 and the voucher must be received by March 23, 2012.

FEDERAL ADMIN
RECOVERIES
Source 9 requests must be received by March 16, 2012 in order to ensure the transfer can be processed before March 28, 2012.

FUND/SUBFUNDS
ADDS & DELETES
To avoid unplanned conversion issues, any additions or deletions of subfunds in CAS must be completed by March 16, 2012.

FUND
CLASSIFICATION
MANUAL

The Fund Classification Manual (FCM) has been updated to reflect all changes made to the various funds pursuant to legislation enacted during the 2012 session as well as the new SFS chart of accounts fund values.

SOLE CUSTODY
REPORTING and
AGENCY FINANCIAL
REPORTING PACKAGE

The State's accounting and financial reporting system under the control of OSC provides for the collection, summarization and reporting of unique financial data and information maintained at State agencies. Financial data and related information is required to ensure full and proper disclosure in cash, modified accrual and accrual basis financial statements prepared in accordance with State Finance Law requirements and/or generally accepted accounting principles (GAAP).

Sole Custody Reporting
On April 1, 2012, the secure website for reporting agency sole custody account balances will be activated for agencies to use to report reconciled bank account information needed for the State’s annual financial statements.  Agencies are reminded that all bank accounts under their administrative control must be reconciled at least monthly.  Compliance with this requirement contributes immeasurably to accurate, complete and timely filing of required sole custody bank account information.  For more information about sole custody reporting, please contact genledger@osc.state.ny.us.
In addition, agencies are reminded that bank statement balances must be obtained and reconciled and the reconciled bank account balance(s) must be provided to the Commissioner of Taxation and Finance within 7 days of the succeeding month.  Refer to Section 4.0120 of the Control and Special Procedures Manual (Volume XI) for complete information about agency bank accounts, reconciliations and reporting requirements. 

Agency Financial Reporting Package (AFRP)

In March 2012, a secure website for the AFRP will be activated for the purpose of gathering financial data which has not been entered into the State's CAS as of the closing date specified in sections of the AFRP.  The AFRP will be available at:
https://nysosc11.osc.state.ny.us/product/afrp.nsf

For more information regarding the internet-based AFRP, please refer to Accounting Bulletin A-603, issued March 25, 2009, or email finrep@osc.state.ny.us.

SHORT TERM
INVESTMENT POOL
(STIP) INTEREST

Section 98-a of the State Finance Law governs the distribution of interest to agencies’ accounts within the State’s short-term investment pool (STIP). Agencies should review their accounts and proposed legislation submitted with the Governor’s Executive Budget to determine if any changes are necessary.  Pursuant to law, agency requests to ‘opt into’ or ‘out of’ participation in the distribution of STIP interest earnings must be submitted, in writing, within 30 days of the start of the fiscal year or 30 days following the final approval by the Governor of any bill containing temporary loan authorization(s) – whichever is later.  Please direct your request to:

Carrie Piser
Office of the State Comptroller
Bureau of State Accounting Operations
General Ledger Accounting Section
110 State St. – 9th floor
Albany, NY 12236

or email to:  genledger@osc.state.ny.us

CALENDAR
REFERENCE

A summary of calendar activities and important dates is provided as a reference.  Please be aware that this calendar is designed to use in conjunction with the details provided in this bulletin.  It is not intended to include all information regarding each activity.

QUESTIONS Direct questions on this bulletin to the SFS Helpdesk at Helpdesk@osc.state.ny.us or (518) 457-7737.