The scope of the Statewide Financial System (SFS) includes the last three phases of the New York State Financial Cycle as previously outlined in Chapter II New York State Financial Accounting:
- Establish control;
- Execute plans; and
- Evaluate financial performance against plans.
In the establish control phase, the SFS records the appropriation and segregation authorizations made by the State Legislature and the Division of the Budget (DOB). Internal plans made by agency management are also recorded.
In the execution phase, the SFS processes vouchers and encumbrances, provides for the audit of these transactions, and performs other expenditure functions including check-writing. The SFS also records the collection of revenues.
Payroll processing is handled by the separate PayServ system but the payroll expenditures are passed on to the SFS through an automatic interface. Reports and data extracts of processed transactions are made available to agencies that require them.
In the evaluation phase, the SFS provides budgetary reporting which shows spending against appropriations and segregations. Management reporting allows agencies to monitor performance against their internal financial plans along Organization, Program, Project, Fund, and Object lines within the Chart of Accounts.
General accounting information requirements associated with the maintenance of the general and subsidiary books of account are handled within the SFS. It produces financial statements prepared in accordance with generally-accepted accounting principles (GAAP) which are used by the financial markets and the general public to help evaluate the State's financial operations.
The SFS does not generate budget preparation data for bill drafting purposes and is not intended to replace the automated budget system used by DOB.
A key component of the SFS is the Statewide Vendor File. All suppliers of goods and services to New York State must be registered in the Statewide Vendor File. Recipients of grants and/or aid must also be registered, as it is recognized that these entities supply service to the citizens of New York State in conjunction with the grant or aid received. Registered vendors have the ability to manage a level of their business information through direct access to the SFS.
Guide to Financial Operations