1. Fiscal Year-end 15 & 2015-17 Biennial Budget Build Workshop
May 27, 2015
Small Agency Financial Services

2. Find Out and Understand
Workshop Objectives
Communicate and Inform our customers of important annual reminders about the state fiscal year close and the biennial budget build process.
Find Out and Understand
Who does what
What’s required and what needs to be done
Where the information goes
When are the important due dates
How the processes work and
Why these are important

3. Payroll Important Dates June 15th - Cost coding for FY 16 due
(dependent upon budget approval)
June 30th - Comp time cash out
July 1st - Payroll due
June 16th - 30th activity
Board/Commissioner stipends
Commute Trip Reduction (CTR)

4. Questions about year-end payroll?

5. Cash Receipts
Important Dates June 30th – cash cut off Checks dated 6/30 and before are to be recorded in FY15.

6. Cash Receipts
Important Dates July 8th – submit invoice information to DES Finance for DES prepared invoices (on goods/services delivered by 6/30). DES will be sure to record and send your invoices to all agencies and colleges before 7/23.

7. Cash Receipts
Important Dates July 23rd – deadline for submitting your agency prepared invoices (for goods/services delivered by June 30th) to state agencies and colleges. After this date DES will work with other agencies to balance Due to/from GLs for CAFR. Deadline: August 21st

8. Questions about year-end cash receipts?

9. Year-end Accounts Payable
Purchases Invoices Cash Cut-off Accruals Travel Belated Claims

10. Purchases
For FY15 funds, goods/services must be received by June 30th Mark date received on invoices/back up Include packing slips US Bank statements – Identify correct fiscal year of purchases on backup

11. Invoices Deadline: July 15th Split A45s between years: FY15 and FY16
Send to:
MS 41465
Split A45s between years: FY15 and FY16
Be proactive
Track down invoices
Set up new vendors ASAP
3 business days to set up vendor in AFRS
7 -10 business days to set up EFT/direct deposit

12. Cash Cut-off What does it mean? Accrual vs. Cash Basis
State Treasurer deadline for cash transactions is June 30
Accrual vs. Cash Basis
Payments or fund transfers after June 30 are considered accruals for FY15, since the Treasurer will move the money in FY16
Different trans codes necessary for moving expenses between funds

13. Accruals
Deadline: July 24th Determine if Amount is Estimated or Actual Fill out template Backup needed – Contracts, purchase orders, field orders, quotes, etc. Backup needed – Reports, analysis, etc.

14. Accrual Template

15. Travel Deadline: July 15th Submit it! Approve it!
Send to:
MS 41465
Submit it!
Make sure employees submit requests timely
Approve it!
Make sure approvers approve requests timely
Pending reimbursements? Let us know!

16. Belated Claims What are they? What do you have to do?
Old year expenses paid with new year funds
What do you have to do?
Get Budget analysis
Get OFM approval

17. Questions about AP?
Key Dates July 15 - All payment documents must be received by DES July 15 - All travel reimbursement requests must be received by DES July 24 - All expenses to be accrued must be received by DES.

18. Let’s Take a Break
Five minute break

19. Break Time Remaining 4 5 3 1 5 4 2 7 6 8 9 1 5 6 4 3 5 2 9 4 5 3 2 1 6 7 2 3 1 8 7 4 1 9 1 8 7 8 6 2 3 8 9 7 6 4 5 4 5 3 4 2 9 3 5 1 2 6 9 8 7
Hours
Minutes
Seconds

20. Break Time Remaining 3 4 3 1 5 4 2 7 6 8 9 1 5 6 4 3 5 2 9 4 5 3 2 1 6 7 2 3 1 8 7 4 1 9 1 8 7 8 6 2 3 8 9 7 6 4 5 4 5 3 4 2 9 3 5 1 2 6 9 8 7
Hours
Minutes
Seconds

21. Break Time Remaining 2 3 3 1 5 4 2 7 6 8 9 1 5 6 4 3 5 2 9 4 5 3 2 1 6 7 2 3 1 8 7 4 1 9 1 8 7 8 6 2 3 8 9 7 6 4 5 4 5 3 4 2 9 3 5 1 2 6 9 8 7
Hours
Minutes
Seconds

22. Break Time Remaining 1 2 3 1 5 4 2 7 6 8 9 1 5 6 4 3 5 2 9 4 5 3 2 1 6 7 2 3 1 8 7 4 1 9 1 8 7 8 6 2 3 8 9 7 6 4 5 4 5 3 4 2 9 3 5 1 2 6 9 8 7
Hours
Minutes
Seconds

23. Break Time Remaining 1 3 1 5 4 2 7 6 8 9 1 5 6 4 3 5 2 9 4 5 3 2 1 6 7 2 3 1 8 7 4 1 9 1 8 7 8 6 2 3 8 9 7 6 4 5 4 5 3 4 2 9 3 5 1 2 6 9 8 7
Hours
Minutes
Seconds

24. Capital Assets A capital asset is
Any tangible or intangible assets held and used in state operations, which have a service life of more than one year SAAM
$5,000 or more in value for a tangible asset OR is a small and attractive item, such as laptops, cameras, smart-phones, special equipment, etc.
$1,000,000 or more in value for an intangible asset.

25. Accounting for Capital Assets
Each agency is required by SAAM to complete a physical inventory of capital assets at least once a biennium SAAM
What we need from you
Perform a physical inventory of items.
Inform SAFS budget analysts of any added items during the period or any items that were disposed of.
What you can expect from us
A most recent listing of capital assets for your agency.
Input changes into CAMS to ensure for proper reconciliation of General Ledgers for year end and disclosure reporting.

26. Questions about Capital Assets?
By June 30th complete a physical inventory By July 15th submit all payments of equipment received on or before June 30th. By July 20th notify your SAFS budget analyst of any unrecorded assets or disposed assets.

27. Disclosure Forms
Disclosure forms are how the agency provides OFM with detailed financial information for use in preparing the state comprehensive annual financial report (CAFR).
Disclosure forms also provide assurances that the agency is following good accounting and internal control practices.
SAAM Each agency is REQUIRED to submit disclosure forms to OFM.
SAFS will prepare all the necessary disclosure forms.

28. State Disclosure Required state disclosure forms
Miscellaneous disclosure form
Financial disclosure certification form
Other common state disclosure forms
Cash on hand and in bank
Capital assets – summary of activity
Lease disclosure
Liabilities by major class
Deferred and unearned revenue

29. Federal Disclosure Required federal disclosure forms
Federal assistance certification
Federal financial assistance direct
Federal identification numbers
Other federal disclosure forms
Federal assistance received from nonfederal sources
Federal loan balances
Federal nonfinancial assistance
Federal nonfinancial assistance inventory balances

30. Finalize the Forms What we need from you
Your SAFS budget analyst prepares the forms and will send these to you with a cover memo.
Review the forms.
Sign the state/federal certification
State due to OFM by September 16th
Federal due to OFM by December 4th (signing delay)
your signed certification form to back to SAFS budget analyst (end of August).
Provide any required supplemental information (i.e. pending lawsuits).

31. Questions on Disclosures?
Mid July, State Disclosure system opens, your DES budget analyst will be working with you to complete the forms.
Late August, you will receive a memo and copy of the disclosures from DES. Return the signed certification sheet promptly to DES budget by .

32. Allotments
Now to the preparation of your next two year spending plan for the Biennium.

33. Where are we in the Budget Process?
We are here.
Preparing for here.

34. Allotments - Basic Process
SAFS will begin drafting the two year spending plan based on historical spending. We’ll add in the changes we are aware of such as:
Changes to central service costs
Step increases
Any raises submitted as part of the compensation data model last year
Any other known changes

35. Allotments - Basic Process
We’ll prepare the plan in a format that separates and allocates fixed and discretionary costs to show you where your spending flexibility may be. Fixed Costs are expenses that do not change as a function of the activity of the business. Discretionary Costs are everything else.

36. Allocate Fixed Costs

37. Allocate Discretionary Costs

38. Questions about the basic process?
Allotments
Questions about the basic process?

39. When we meet with You
Next, budget meetings will be scheduled in June or July. We’ll meet with your agency to discuss changes to the draft spending plan and finalize it. Once final, SAFS will electronically submit the spending plan to OFM.

40. Allotment Meeting Goal
The goal of the allotment meeting is to resolve any difference between the draft spending plan and the authorized spending authority.

41. Documents SAFS will bring
Expenditure Authority Schedule.
Budget bill.
Recommendation summary.
Copies of the central service model.
Salary projections.
Preliminary estimates of fixed and discretionary costs.

42. Questions about the budget meetings?

43. What we need from you
We need your help to know what is changing. The earlier we know, the more we can incorporate in the initial draft we bring out to you.

44. What we need from you Some examples of what we may need from you are:
Grant or contract award amounts
Updated interagency agreements or leases
Planned raises, new hires, and retirements
Updated revenue estimates
Changes due to legislative action or agency restructure
Impacts of changes in your line of business, practices, or policies
Unusual costs
Equipment needs

45. You WILL hear from us Who? Effective when? For how long? How much?
Over and Over and Over and Over…
Who?
Effective when?
For how long?
How much?
How many?
When we are done with known factors, where do you want the remaining balance/cut to go?

46. Remember…
Remember the goal of the meeting? The goal of the meeting is to resolve any difference between the draft spending plan and the authorized spending authority. If we cannot achieve a plan for all the spending authority, a due date for additional information will be assigned.

47. Next Steps
SAFS will take your input and incorporate it into the spending plan to create a final spending plan. We will send your spending plan to you for review and approval. Once final, SAFS will electronically submit the spending plan to OFM.

48. OFM Allotment Deadlines
August 3rd
August 7th
August 11th
SAFS internal deadline is about two weeks prior.
We will contact you with a deadline.
If you need to adjust your due date for commission or board approval please contact your SAFS budget analyst.

49. Final Thoughts
For those agencies with fiscal staff, we will work with you to determine which areas you need assistance from SAFS. FY16 Supplemental – Start working on in September.

50. Questions on Allotments?
Allotments and what we need from you June or July, SAFS will schedule an allotment meeting with your agency.

51. Q&As
Thank you for your questions during the workshop. We have captured those questions and answers below. Q: If it is after July 15 (payables due date) and before July 24 (accrual due date), do we send in the invoice for payment or accrue it? A: You will need to do both. Include it in the accrual template AND send it over for payment in the new fiscal year (FM01). Q: What general ledgers (GLs) will the accruals hit? A: The accruals will be in GL 6505 Accrued Expenditures/Expenses and GL 6560 Estimated Accrued Expenditures/Expenses. Q: How long will the budget allotment meetings be? A: We are scheduling one hour meetings to review allotments with your agency. Q: How can the agencies get invoices to DES to pay by July 15 or accrue by July 24 when the initiating agency doesn’t mail the invoice out until July 23rd? A: If DES does not receive the invoices for accrual prior to July 24, it is best to send DES an estimate accrual.