Presentation on theme: "Statewide Financial System Program Overview of the Lapsing Process Revised June 16, 2014 Statewide Financial System (SFS)"— Presentation transcript:
Statewide Financial System Program Overview of the Lapsing Process Revised June 16, 2014 Statewide Financial System (SFS)
2 Contents Definition of Lapsing Lapsing Process Execution Impact on Modules: Overview Impact on Modules: Detail Roles and Responsibilities OSC SFS Agencies Inquiry and Reporting Tools Post-Lapsing Follow Up Problem Resolution Contacts: SFS and OSC
3 Definition of Lapsing
4 What is Lapsing Each year, State appropriations (authority to spend in a given time period) that are not re-appropriated expire or lapse pursuant to the State Finance Law sections 40, 99-d and 99-e. Lapsing occurs at the end of June for certain appropriations (i.e., State Operations) and in September (i.e., Local Assistance, SUNY / CUNY). For example: Agencies are allowed to spend the prior year state operations appropriation (FY2013-14) from April 1, 2014 to June 30, 2014 for liabilities incurred prior to March 31, 2014.
5 Lapsing Process Execution
6 The lapsing process is run in two steps: The Lapsed Appropriation Document Closure process deletes / rejects / closes / cancels GL Journals, Vouchers, Expense Reports, Travel Authorizations, Purchase Orders and Requisitions that charge an appropriation that is lapsing as of a given date. The Update Budget Status to Close process closes the eligible appropriation budgets that are lapsing as of a given date. NOTE: The Update Budget Status to Close process is run after validating the results of the Lapsed Appropriation Document Closure process.
7 Impact on Modules: Overview
8 Budget (KK) Budget lapse date is an attribute associated with the appropriation record in SFS. The budget is closed (batch process) by lapse date. Budget will not be available after the specific lapse date. Requisitions (Req) Requisitions that are pre-encumbered do not reduce the budget, with the exception of Requisitions created by GLBUs APA01, LGP01, PRK01. Requisitions not copied into Purchase Orders should be updated to include the appropriate fiscal year, where appropriate, or cancelled.
9 Impact on Modules: Overview Purchasing (PO) Purchase Orders that are not fully expended are cancelled (no vouchers paid against it) or closed (vouchers have been paid against the PO). A Purchase Order may have lines that are charging a non-lapsing appropriation but will be cancelled or closed if there is any line charged to a lapsing appropriation. Accounts Payable (AP) Vouchers that are not paid are deleted or closed (batch process). Travel and Expense (T&E) Travel Authorizations not related to a paid expense sheet are rejected. Expense Reports that are not paid are rejected and Travel Card charges restored to My Wallet.
10 Impact on Modules: Overview General Ledger (GL) General Ledger Journals that are not posted prior to the lapse date are deleted. Accounts Receivable (AR) There is no impact related to lapsing. Grants (GR) There is no impact related to lapsing.
11 Impact on Modules: Detail
12 Lapsing of Requisitions Requisitions that are pre-encumbered against a lapsing appropriation and are not fully sourced to a PO will be cancelled. Requisition status is marked ‘X’. The Budget Check process is run to release pre-encumbrance from the cancelled requisitions. Lapsing of Requisitions is done after lapsing of Purchase Orders. NOTE: Bulkload extracts do not carry any information on Requisitions. When Requisitions are lapsed, no information is available on the extracts.
13 Lapsing of Purchase Orders POs that are fully or partially paid through Voucher activity and used lapsing appropriation will be closed. PO status is marked ‘C’. POs that do not have any paid Vouchers and used a lapsing appropriation will be cancelled. PO status is marked ‘X’. The Budget Check process is run to release the remaining encumbrance balances for both cancelled and closed Purchase Orders. The remaining contract amount will be increased for those Purchase Orders associated with contracts that are closed or cancelled by the lapsing program. Lapsing of Purchase Orders is done after lapsing of vouchers to restore the amount of the deleted voucher to the Purchase Order. Purchase Orders in a Completed or Cancelled status are not impacted by lapsing.
14 Lapsing of Vouchers (Regular, Adjustment, Journal) Unpaid Vouchers approved by OSC and posted to GL, and used a lapsing appropriation, will be closed. Voucher Close status will be marked ‘C’. Unpaid Vouchers not posted to GL, and used a lapsing appropriation, will be deleted. Voucher Entry status will be marked ‘X’. The Budget Check process is run to release the budget from Closed / Deleted vouchers. Purchase Orders are restored for the amount of the closed or deleted PO vouchers. Vouchers that failed cash validation and associated with a lapsed budget are closed.
15 Lapsing of Travel Authorizations All Travel Authorizations not associated to a paid expense report that used a lapsing appropriation are marked as rejected. The Budget Check process is run to delete the pre-encumbrance associated with the rejected Travel Authorizations. Agencies cannot re-use the rejected Travel Authorizations. Lapsing of Travel Authorizations is done after lapsing of Expense Reports to restore the amount of the rejected expense sheet to the Travel Authorization. NOTE: Bulkload extracts do not carry any information on Travel Authorizations. So when Travel Authorizations are lapsed, no information is available on the extracts.
16 Lapsing of Expense Reports All unpaid Expense Reports that charged lapsing appropriations are marked as rejected. The Budget Check process is run to delete the expenditure associated with the rejected Expense Reports. Agencies cannot reuse rejected Expense Reports.
17 Lapsing of GL Journals GL Journals that are not posted and charge lapsing appropriation will be deleted and the budget is released. Agencies will not be able to inquire on deleted GL Journals; however, SFS will provide a list of deleted GL Journals on the SFS Portal. Agencies can determine the Journals deleted by lapsing using the NYAP1547 report that is run before the lapsing process. If agencies created any Model or Standard Journal Templates that used the lapsing appropriation, they will not be deleted since they are only templates and do not impact budget.
18 Roles and Responsibilities
19 Roles and Responsibilities OSC Updated the Guide to Financial Operations, Chapter XVII: Lapsing Appropriations. Section XVII.3: Current Lapsing Transaction Deadlines notifies agencies of the specific time periods for submitting transactions that will be impacted by lapsing.Guide to Financial OperationsChapter XVII: Lapsing AppropriationsSection XVII.3: Current Lapsing Transaction Deadlines Monitor lapsing reports and dispose of lapsing transactions accordingly. SFS Respond to Agency incidents related to lapsing transactions. Provide lapsing reports via Report Manager. Execute the budget close lapsing process.
20 Roles and Responsibilities Agencies Enter transactions into SFS, ensure proper approvals by the specified time period (see GFO Chapter XVII Lapsing Appropriations > 3. Current Lapsing Transaction Deadlines).GFO Chapter XVII Lapsing Appropriations > 3. Current Lapsing Transaction Deadlines Review lapsing reports, dispose of transactions by the specified deadlines. Log an incident with the SFS Help Desk if users are having difficulty entering a transaction charging a lapsing appropriation into SFS or for system-related problems. Contact the appropriate OSC Bureau regarding approval of lapsing critical transactions (follow prior year lapsing process). Timely submission of contract paperwork and transmittal, with LAPSING prominently annotated. Re-enter transactions that were closed, cancelled or deleted by the lapsing process using active chartfield strings. State Finance Law section 40(4) allows for prior year liabilities against current year appropriations.
21 Inquiry and Reporting Tools
22 Inquiry / Reporting Tools Inquiries Budget Definitions > Budget Attributes Reports The following Reports are run by SFS and available under the Lapsing folder in Report Manager: NYKK0004: Appropriations Due to and Not Due to Lapse Report (.csv format, all BUs) NYKK0264: Negative Segregation Balance Report (.csv format)
23 Reporting Tools The following Reports are run by SFS and available under the Lapsing folder in Report Manager: NYAP1547: Pending Transactions for Lapsing Budget (.csv format, all BUs): o Document Type – Journals o Document Type – Vouchers BAO/Refund of Appropriations o Document Type – Vouchers BAO/Journal Vouchers o Document Type – Vouchers BSE o Document Type – Purchase Orders o Document Type – Expenses o Document Type – Travel Authorizations o Document Type – Requisitions
24 Reporting Tools The following Report can be run by Agencies to view a budget as of a certain date, by comparing two ledgers (i.e. KK_APPROP & KK_SEG or KK_PRJP & KK_PRJC). Data is provided by Chartfield string (including Department; Program; Fund; Account; Operating Unit; Project, and Activity) with the Adjusted Budget; Expended Amount; Encumbrance Amount and Remaining Amount. NYKK0043: Budget Inquiry Report
25 Post-Lapsing Follow Up
26 Follow Up: Inter-agency Vouchers Inter-agency Billing Vouchers not in an entry status of “Recycled” will be closed or deleted by the lapsing process. After Lapsing, online agencies will need to create a regular voucher that has the corresponding invoice and amount. BSE monitors inter-agency billing vouchers that used a lapsing appropriation. BSE is following up with agencies to make sure that these vouchers are posted and paid before lapsing.
27 Follow Up: P-Card Related Vouchers Lapsing process will delete any P-Card / NET Card reconciliation vouchers that are not posted and used a lapsed appropriation. If any such P-Card / NET Card vouchers are deleted, SFS will resource the transactions to a verified status for future reconciliation. Agencies should ensure that such P-Card vouchers are posted before lapsing. BSE monitors P-Card vouchers that used a lapsing appropriation. BSE is following up with agencies to make sure that these P-Card vouchers are posted before lapsing.
28 Follow Up: Return to Vendor (RTV) Vouchers Lapsing process will delete any RTV vouchers that are not paid and used a lapsed appropriation. If any such vouchers are deleted, they cannot be regenerated through the system. Agencies need to re- enter these vouchers as Credit Memos after Lapsing. Agencies should ensure that such RTV vouchers are paid before lapsing. BSE monitors RTV vouchers that used a lapsing appropriation. BSE is following up with agencies to make sure that these vouchers are paid before lapsing.
29 Follow Up: Purchase Orders Lapsing process will not close Purchase Orders that are previously Budget Checked to Success but currently in Error because new lines are added to the PO which resulted in a Budget Check error. Agencies should ensure that such Purchase Orders are Budget Checked with a valid string and in Valid status before lapsing.
30 Follow Up: Correct Negative Budget Balances Lapsing process will not close Purchase Orders and vouchers if the available budget balance is negative. BAO Appropriations will contact agencies to make corrections to ensure that the available budget amount is greater than or equal to zero. Report NYKK0264 provides information for making these corrections.
31 Problem Resolution Contacts
32 Problem Resolution: SFS Contact SFS will log Help Desk Incidents for all calls or e-mails. If you have questions regarding SFS reports or are having problems processing a transaction in the system, please contact the SFS Help Desk at (518) 457-7737 or e-mail Helpdesk@sfs.ny.gov.Helpdesk@sfs.ny.gov
33 Problem Resolution: OSC Contacts If you have questions regarding appropriations lapse status, please contact the Bureau of State Accounting Operations – Appropriation Section at (518) 474-8387, your account representative, or e-mail Appropriations@osc.state.ny.us. Appropriations@osc.state.ny.us If you have questions regarding the processing or payment of lapsing vouchers, please contact the Bureau of State Expenditures Customer Service Help Desk at (518) 474-4868 or e-mail firstname.lastname@example.org. email@example.com Please contact the Bureau of Contracts at (518) 474-4622 concerning contract transactions that will utilize lapsing funds.