AGENCY CFO MEETING June 21, 2011

CFO M EETING – 06/2011 Agenda Welcome and Introductions Financial Reporting Tips and Tricks WCO – AP Transformation Payroll Paycard Travel Project Questions

FINANCIAL REPORTING UPDATE

Financial Reporting 2011 Budgetary Compliance Reports (BCR) Compliance with Accounting Directive on use of Fund Balance Accounts (AD201101)  Majority of agencies are in compliance  Non-compliance may result in an audit finding SAO sending out preliminary BCRs (P/S agencies only) with May/June data in preparation for year-end Included with this is a confirmation of P/S Fund mapping to BCR/CAFR reporting entity Due from agencies to SAO 6/30/11 CFO M EETING – 06/2011

Financial Reporting Update Year-end calendar/deadlines  Available on SAO’s website ( ) Home > Reporting > Year-End Reporting Year-end forms  Available on SAO’s website ( ) Home > Reporting > Year-End Reporting > Reporting Forms  The following items will be available by 6/30 Post Closing Adjustment form Forms applicability grid Entire package as a zip file  Acknowledgement form due back to SAO 7/15  New ‘Not Applicable’ form  There is a new form this year is for Pension/OPEB contribution information  All forms training will be done via online videos

Financial Reporting Update GASB Statement 54 Fund Balance Reporting and Governmental Type Definitions Changes the way fund balance is classified at the Fund Level Does not apply to Budget Fund statements. NO IMPACT TO BCR!! SAO in the process of reviewing the GASB54 classification of funding sources – this will be the primary source for 2011 fund balance classification (P/S organizations) Encumbrances not reported separately Accounting Directive coming soon

CFO M EETING – 06/2011 Financial Reporting Update Post Closing Adjustments  In order to ensure timely preparation of the BCR/CAFR, please try to limit the number of PCAS  For FY 2011 there is a change in the approval process Upon SAO review, SAO will be posting all post closing adjustments Any post closing adjustments not approved by DOAA will result in an Audit adjustment entry to reverse out the effect of the PCA Any PCAs submitted after the deadline will not be accepted by SAO. These will need to be submitted to the audits and will be provided to SAO by DOAA as an audit adjustment entry

CFO M EETING – 06/2011 Financial Reporting Update Year-end checklist  SAO has developed a year-end checklist to assist agencies with their year-end closing and review process  Use of this checklist for FY2011 is encouraged and will not be mandatory or issued as final for FY2011 close

CFO M EETING – 06/2011 Financial Reporting Update Upcoming PeopleSoft/Policy Changes  Closing of new 3xxxxx fund balance accounts  Additional fields for new funding source requests  Clearing Account policy revised to say / must net to zero in total by fund type New PeopleSoft Queries  GL080_TB_44_WITH_FS_TYPE Like the GL080 (the 44-series reports in query format) except data is summarized similar to the BCR Includes FS_TYPE Includes Program at the 5-digit level  0GL081_JRNL_IMPORT_TB (coming soon) Fields are the same as in a JE upload template Useful when cleaning up account balances

CFO M EETING – 06/2011 Financial Reporting Update Tips and Tricks  When searching for policy information on SAO’s website users may find it helpful to try the following: Use Advanced Search to limit search to just SAO’s website There is an option at the bottom to repeat search with omitted results included – this may bring back additional data

WORKING CAPITAL OPTIMIZATION

CFO M EETING – 06/2011 WCO Workstreams CashCostService Prevent Early Payments Eliminate early payments without payment discount Quarterly reporting to monitor numbers of days to pay vendors Maximize discounts Negotiate payment discounts Implement dynamic discounting process to earn discounts even when not negotiated. Recover Lost Costs Implement recovery process Identify duplicate and erroneous payments and contract performance violations Reduce Transaction Cost Convert checks to electronic forms of payments Minimize document handling, processing, and audit costs Exploit Technology To enable reduced document handling (imaging, workflow, p- card, and e-purchasing) Reduce Discrepancies Discrepancies can be eliminated by effective dispute management - identify and solve Create Scalability This can be attained by structural change such as Shared Services Strategy * Policy * People * Organization * Process * Technology * Metrics * Information Change Payment Clock Move from invoice date to later of receipt of invoice or goods Reinforce recording of correct date in accounting system Extend Payment Terms Segmented vendor focus Consider move from Net 30 to Net 45 Quarterly reporting

Efforts to Date – Vendor Conversion Focus Group  Comprised of agencies Series of meetings (Sept-Feb 2010) DOC,DJJ, Forestry, DBF,DECAL,DPS,SOS,DHS Very thankful for agency participation in this project!!! Can not do this without you! 214 of the 1,400 (15%) vendors assigned to all agencies have been converted 196 of the 966 (20%) vendors assigned to focus agencies have been converted Overall 805 vendors have been converted. CFO M EETING – 03/2011

ACH Utilization Percentages

PAYROLL PAYCARD

TRAVEL PROJECT UPDATE

Travel Update – What’s changing? Updated travel policy New travel agent - Travel Incorporated  Government travel experience  Agent and online help  Trained specifically for GA travel policies New online travel and expense booking tools - Concur

What is Concur? Expense  Expense reporting system for travel expenses incurred by employees on behalf of the State of Georgia Travel  Web-based reservation system providing competitive fares and discounts to State of Georgia employees  Saves reservations as fully formatted Expenses which can be rapidly imported into Expense Reports

Benefits to the State Improved internal controls and compliance (protects the State) Provides meaningful spend reporting Negotiating power for the State of Georgia Standardizes Automates process and eliminates paper

Benefits to the Employee Guides employees to follow State of Georgia policy Provides State negotiated rates for business travel Minimizes data entry and approval routing time Reduces time to reimburse employees

How is Concur Rolling Out? 1.Pilot Population – early August Wave 1 agencies November On-boarding of future agencies to occur quarterly until completed

CFOMEETING–06/2011