05/06 Year End Meeting Reconciliation of Campus Records to State Controller – SAM99 SAM99 Reconciliation and Year End Submission

05/06 Year End Meeting Agenda Why? Business Requirement How and When? SAM99 Primary Functions Transaction Flow and Overview SAM99 Warning Messages Review Transactions Manage Reconciling Factors Create Year End SAM99 File Summary Where? FOA Web Site

05/06 Year End Meeting Why? Business Requirement Section 7900 of the State Administrative Manual (SAM) requires state agencies to prepare a monthly reconciliation of Receipts & Disbursements Budget Balances to the State Controller’s Office records

05/06 Year End Meeting How? SAM99 Primary Functions The SAM99 is a tool that was created for the CSU to meet State mandated reconciliation requirements by… Comparing Receipts and Disbursements processed at the State Controller’s Office to Receipts and Disbursements recorded by the Campus - R&D Recon Comparing Balances of funds available at the State Controller’s Office to Budget Balance Available on Campus records – BBA Recon

05/06 Year End Meeting SAM99 Primary Functions Simply stated, the SAM99 brings together SCO Records and Campus Records to compare… Receipts and Disbursements Balances of Funds Available To enable campuses to meet SAM Section 7900 Business Requirements

05/06 Year End Meeting SAM99 Primary Functions SCO Records - Receipts, Disbursements and Balance Available as displayed on the Tab Run Disbursements Receipts Year to Date Activity BBA

05/06 Year End Meeting SAM99 Primary Functions SCO and Campus Records Compared R&D Recon & BBA Recon SCO R&D and BBA Same as Tab Run SCO R&D and BBA Adj by Campus Accruals Campus R&D and BBA Displayed on SAM99

05/06 Year End Meeting Transaction Flow and Overview Today’s World - Campus R&D Transactions processed at the State Controller’s Office (SCO) include… Claims Payroll Plans of Financial Adjustment Controller’s Transfer Cash Remitted

05/06 Year End Meeting Transaction Flow and Overview Typical flow of Transactions processed at the SCO - The Rules of the Game - Campus Records R&D Transaction Campus offsets R&D Transaction with an Accrual Campus submits Transaction to the SCO When the SCO processes R&D Transaction… Campus clears Accrual against Fund Balance Clearing

05/06 Year End Meeting Transaction Flow and Overview What is Fund Balance Clearing ???? FIRMS Object Code Important to Know: Campuses recognize the SCO has processed an R&D transaction by making an entry to Fund Balance Clearing on campus records In other words, to balance the SAM99, campus R&D transactions that have been processed by the SCO must be offset by Fund Balance Clearing The year to date activity in Fund Balance Clearing on campus records should equal the year to date amount on the SAM99 Tape for Receipts and Disbursements processed by the SCO Differences are reported by the SAM99 as Warning Messages

05/06 Year End Meeting SAM99 Warning Messages When adjusted SCO Receipts/Disbursements does not equal the campus Receipts/Disbursements, the SAM99 prints a Warning and calculates the difference WARNING: Campus Records Total does not Equal Expenditures Difference is $ When the adjusted SCO Balance does not equal the campus BBA amount, the SAM99 prints a Warning and calculates the difference WARNING: Calculated Unexpended Balance does not Equal Campus Records Total Balance Difference is $

05/06 Year End Meeting SAM99 Warning Messages “Campus Records Total does not Equal Expenditures” This warning is associated with the first reconciliation requirement from SAM 7900… The reconciliation of total Receipts/Disbursements on campus books to total Receipts/Disbursements processed by the SCO, adjusted by campus Assets and Liabilities – also referred to as “Accruals” Year to date R&D activity on the Controller’s books is compared to year to date R&D activity on the campus books

05/06 Year End Meeting SAM99 Warning Messages “Calculated Unexpended Balance does not equal Campus Records Total Balance” This warning is associated with the second reconciliation requirement from SAM 7900… The State Controller’s Balance adjusted by campus Assets and Liabilities (Accruals) is compared to campus Budget Balance Available - Campus Budget Balance Forward adjusted by current year Receipts Disbursements and Encs The balance of funds remaining on the Controller’s books is compared to the balance of funds remaining on the campus books

05/06 Year End Meeting SAM99 Warning Messages The Receipts/Disbursements warning is the result of an issue related to R&D Transactions When there is a warning for R&D, there will be a warning for BBA Reason: BBA is a calculation that is impacted by R&D transactions Usually, you receive both messages for the same dollar amount

05/06 Year End Meeting SAM99 Warning Messages R & D Presentation SCO Total R&D Campus Assets & Liabilities Adjusted SCO Total R&D Campus total R&D Expenditure Warning

05/06 Year End Meeting SAM99 Warning Messages When you receive a Receipts/Disbursements warning, find out… Was the Receipt/Disbursement recorded in the wrong fund? If so, reclass it to the correct fund Was the Receipt/Disbursement recorded in the correct fund? If so, clear the Accrual against FBC If not, record the Receipt/Disbursement against FBC When the R&D and BBA warnings are for the same $ amount, an Actuals Journal will resolve both warnings BBA is a calculation that is impacted by R&D transaction

05/06 Year End Meeting SAM99 Warning Messages R&D Example… Campus Receives Cash Debit CashCredit Revenue Campus Remits Cash to the SCO Debit Remit in TransitCredit Cash SCO Posts Cash Remitted – Campus Does Not Out of Balance Situation is created for R&D Warning is generated on SAM99 Actuals JE Needed: Clear the Accrual against FBC Debit Fund Bal ClearCredit Remit in Transit

05/06 Year End Meeting SAM99 Warning Messages R&D Example… Disbursement was not recorded on campus books SCO posts AD NOAT - Campus Does Not Out of Balance Situation is created for R&D Warning is generated on SAM99 Actuals JE Needed: Record Disbursement directly against FBC Debit Expense Credit FBC

05/06 Year End Meeting SAM99 Warning Messages Review… One of the primary functions of the SAM99 is to reconcile Campus Receipts/Disbursements activity with Receipts/Disbursements processed by the SCO Campuses initiate R&D transactions and make Fund Balance Clearing entries when the SCO processes them For the SAM99, campus transactions that flow thru the SCO begin with R&D and end with Fund Balance Clearing

05/06 Year End Meeting SAM99 Warning Messages BBA Presentation SCO Bal Available Campus Assets & Liabilities Adjusted SCO BBA Campus BBA BBA Warning

05/06 Year End Meeting SAM99 Warning Messages If you receive a BBA warning only, there is a difference between campus and SCO recorded Budget Balance amounts Remedy… Query the LEDGER_BUDG table to review campus budget entries and identify differences with the SCO Work closely with your Budget Office to review the issue As appropriate, clear the difference with a Budget Journal

05/06 Year End Meeting SAM99 Warning Messages Common sources of BBA differences include: Not posting beginning net Budget balances Not posting an Allocation Order or posting it for a different amount or to a period different from the SCO Not cross posting a remittance Not posting special budget entries for funds that roll Project to Date Receipts and Disbursements

05/06 Year End Meeting SAM99 Warning Messages If you receive R&D and BBA messages for different dollar amounts, it is the result of a combination of the previously mentioned scenarios Remedy… Correct each type of error individually using queries and Journals to resolve the issues Start with the suggested approach for the R&D error message This strategy resolves all of the R&D difference, part of the BBA difference and identifies the remaining BBA amount clearly

05/06 Year End Meeting When? Review Transactions Manage the R&D and BBA Recons by reviewing transactions as they flow from Campus to the SCO To prepare for year end, Review Transactions routinely as the Fiscal Year progresses - Daily, Weekly and Monthly Campus Transaction Review SCO Transaction Review

05/06 Year End Meeting Review Transactions Campus Transaction Review Keep in mind… Campuses recognize the SCO has processed an R&D transaction by making an entry to Fund Balance Clearing on campus books The review of Campus FBC Transactions can be facilitated by: Creating Unique Campus Accounts that map to Fund Balance Clearing Querying Journal Lines for FBC Object Code to ensure that campus books remain current with SCO transactions Using Journal Sources to isolate specific types of transactions that flow thru the SCO

05/06 Year End Meeting Review Transactions SCO Transaction Review SCO Transactions can be reviewed by: Printing SCO Journals from ViewDirect Viewing transactions through CIRS/SCO online ACL Account detail Analyzing transactions by querying the CSU_SAM99_TAPE table after loading the SCO Monthly Tapes at mid month and at month end Printing the Tab Run provided to campuses each month from ViewDirect

05/06 Year End Meeting Review Transactions The State Controller uses Transaction Codes to summarize and identify different types of entries SCO entries are formatted to include a posting date, Transaction Code, posting reference and dollar amount Transaction Codes can be seen on the Tab Run, ViewDirect, CIRS/ACL Account Detail The CSU_SAM99_TAPE table captures Transaction Codes in Release 050

05/06 Year End Meeting Review Transactions - Tab Run SCO Transaction Codes displayed on Tab Run

05/06 Year End Meeting Review Transactions - CIRS/ACL Acct Detail

05/06 Year End Meeting Review Transactions – CSU_SAM99_TAPE

05/06 Year End Meeting Review Transactions – Common SCO Transaction Codes 23 – Budget/Adjustment – Cross Post 24 – Budget/Adjustment – AO’s 33 – Cancelled Warrant 35 – Journal Entry – transmittal 36 – Journal Entry (PFA) 37 – Payroll Clearance 38 – Payroll Accounts Receivable 39 – No Warrant Transfer (Prison Industry/DGS) 47 – Cash Remittance 49 – Claim Schedule Reversal/Void 50 – Claim Schedule

05/06 Year End Meeting Review Transactions Strategy: Bridge the gap between detail and summary by breaking the SAM99 recon down into manageable components Position yourself well for Year End Associate SCO Transaction Codes with PeopleSoft Fund Balance Clearing Activity (TC-XX = 3058xx) Query campus FBC Journal Lines and tie campus activity to R&D transactions processed by the SCO Review transactions routinely as they flow from Campus to the SCO

05/06 Year End Meeting Manage Reconciling Factors When activity recorded in FBC on campus books does not match the amount of SCO Receipts and Disbursements on the SAM99, campuses must identify and resolve the Reconciling Factors that comprise the difference Correction Required Timing Difference Year End – No Timing Differences

05/06 Year End Meeting Manage Reconciling Factors Correction Required Certain Reconciling Factors require immediate correction PFA coded inaccurately Claim booked against the wrong fund Remittance submitted with inaccurate SCO revenue account Transaction for another agency charged to yours Campuses should work with the SCO to resolve these issues promptly

05/06 Year End Meeting Manage Reconciling Factors During the year, campuses are required to Reconcile the SAM99  Identify all differences between campus and SCO records - i.e. Reconciling Factors  Manage their clearance Reconciling factors are often the result of a “timing difference” between the posting of transactions on campus records and the SCO’s

05/06 Year End Meeting Manage Reconciling Factors Creating Efficiency can cause a Timing Difference – Example… LCD entries post directly to FBC and create Reconciling Factors every month - One Journal DR: Exp CR: FBC LCD entries can be identified easily by using a campus specific FBC account – 3058xx (same as SCO TC-37) These factors clear with the submission of a PFA to the State Controller Result: SAM99 has out of Balance Warnings, but it is Reconciled It’s all about Managing the Reconciliation and Timing Differences throughout the Fiscal Year

05/06 Year End Meeting Manage Reconciling Factors Year End – No Timing Differences  During the year, campuses are required to Reconcile the SAM99  Identify differences between campus and SCO records  Manage their clearance  At year end, campuses are required to Balance the SAM99  Eliminate all Reconciling Factors  Accrue all Timing Differences  Campus books must match the SCO’s at June 30

05/06 Year End Meeting Create Year End SAM 99 File Create your year end file when your June SAM99 matches SCO records Be sure that…. SCO Accrual Reversal File has been loaded, run and reviewed since April close Reconciling Factors Eliminated Timing Differences Accrued CMP Business Unit = CSU Business Unit

05/06 Year End Meeting Create Year End SAM 99 File PeopleSoft will create a file that contains data for your Campus Governmental Funds On the SAM99 Run Control, be sure “Accrual Reversal” and “Year End File” options are checked Designate the Data Center destination where your file will be FTP’d and Name the File

05/06 Year End Meeting Create Year End SAM 99 File

05/06 Year End Meeting Create Year End SAM 99 File When you submit your file… Make sure the CO has signed off on your FIRMS submission and Business Units and Ledgers are in Synch Use the SCO naming convention for your file FISCAL.MMDDYYA.AGYACR FTP your SAM99 file to the SCO for final review of the year’s activity Send notification to the appropriate authorities

05/06 Year End Meeting Summary The SAM99 is a CSU mod that enables campuses to meet state reconciliation requirements detailed in SAM Section 7900 R&D and BBA Campuses initiate R&D transactions, post them at a Detail Level for Campus Customers, and submit them to the SCO Campuses acknowledge that the SCO has processed their transactions by making Fund Balance Clearing entries Therefore… Every SCO and FBC entry represents a campus R&D transaction at a summary level and can be tied to a detailed Source Document

05/06 Year End Meeting Summary Strategy: Break the SAM99 Recon down into manageable components Use PeopleSoft functionality to tie campus FBC entries to SCO activity Campus specific FBC accounts Journal Sources Query Review transactions routinely as they progress from R&D to FBC Reconcile Monthly – Display Reconciling Factors Clear Reconciling Factors promptly Accrue Timing Differences at Year End

05/06 Year End Meeting Where? For more details about the SAM99 Reconciliation process, check out the FOA Web Site Find your inner SAM and have a great Year End!