March 17, 2014

1.Introduction Brian Bailey, Director, State Budget Agency Suzanne Crouch, Auditor of State 2. Financial Management Circulars Zac Jackson, Deputy Director, State Budget Agency 3. Year-End Budget Closing – Joe Fistrovich, Controller, State Budget Agency Financial Closing – Steve Daniels, Deputy Auditor, Auditor of State’s Office 4. Hyperion Deanna Oware, Deputy Director, State Budget Agency 5. AP Updates – Steve Daniels, Deputy Auditor, Auditor of State’s Office 6. Reminders & QA

 Structural surplus goal is $100M by June 30, 2014  December 2013 Revenue Forecast:  Removed nearly $340M from April 2013 forecast in FY14  Through February 2014 revenues are nearly $90M below forecast from December, and $59.3M below February 2013 collections  Hyperion environment used statewide for FY16/FY17 budget development  Budget Instructions tentative release date early summer

 Reissue of the Travel Policy FMC:  Meal per diems no longer allowable unless accompanied by overnight stay  Mileage reimbursement  Still $0.44 per mile for business miles  Now $0.24 for relocation/moving expenses  Other technical updates 5

 New IRS Audit Compliance FMC  Effective July 1, 2014  There are many things that should be processed as payroll – not AP  Examples:  Board and Commission Members must be paid stipends via Payroll rather than Accounts Payable  Bonuses, Awards, and Tokens of Appreciation  More details will be in the FMC 6

 Thanks for your help thus far in preparation for year end.  For items to be paid / encumbered against FY14 budget, you must comply with deadlines in Auditor of State’s and Department of Administration’s Year End Memos. 8

 IGNORE pre-FY14 requisitions in PeopleSoft.  FOCUS ON purchase orders and project costing cleanup for FY14 transactions. 9

 Timely creation of ROC accounting entries. Review any pending prior month entries not completed.  Timely approval of GL entries. Is your Agency submitting correcting entries within 90 days of original GL entry?  Has your Agency addressed “hanging” AP Vouchers passed their scheduled due date? WHAT ARE YOU WAITING FOR? 10

 REVIEW all current outstanding purchase orders. CLOSE unneeded purchase orders.  POs with any activity against them cannot be cancelled.  Clean up funds with negative APPROP balances.  State Budget Agency has pre-loaded FY15 1 st quarter allotments.  Initial Budget Allotment schedules and 1 st Quarter Transfer List to be loaded before July 1 st. 11

 Prior to PO Roll, all PO Vouchers must be budget checked and posted.  To qualify for rollover, approved POs must be dispatched and NOT have budget errors.  All outstanding FY14 requisitions must be closed by May 30 th. 12

 GMIS will run PO Rollover beginning June 8 th.  Schedule by BU to be posted on ENCOMPASS website in mid May.  Application Announcement and ENCOMPASS Homepage Announcement will be posted when PO payments can resume by business unit.  PO will retain Budget Reference, but Budget Period will become  When a Business Unit is being rolled, security is removed on that day. Users have access to login, but will not be able to see or do anything related to the BU for that day. 13

 POs with no payments since July 1, 2013 must be closed no later than May 30,  Queries included to view vouchers, requisitions, and purchase order with no payments. 14

 Any PO with negative encumbrances must be fixed as instructed or closed no later than May 30,  POs that need to have an advice of change completed (price or quantity changes, incorrect chartfields, etc...) must be adjusted or closed no later than May 30,

 Any PO identified as being tied to an underpaid receipt must be adjusted or closed by the agency no later than May 30,

 Any exceptions to this policy must be approved by the Agency’s SBA Budget Analyst.  Our goal is to be completed with PO Rollover by June 16 th or 17 th. 17

 Agency staff will not be allowed in PeopleSoft from 4:00 PM on June 30 th until 8:00 AM on July 1 st (Indy time).  Reports of Collection due to Treasurer by 3:00 PM and final accounting entries made by 4:00 PM on June 30 th to be counted as FY14 revenue. 18

 FY14 ALLOT_CTRL and ALLOT ledgers will be reduced to zero using Budget Close process.  FY14 Budget for non-reverting Control 7 Funds will be manually rolled forward to FY15 for ledgers based on APPROP available balance.  Control 5 and 6 Funds will be manually rolled forward to FY15 based on available cash balance after Financial Close is complete. 19

 Non-reverting Budgets subject to change based on post-6/30 Administrative Actions for FY14.  Plan: Non-reverting Budgets available by 8:00 AM on July 1 st.  Reverting Funds (Control 3) – FY14 budgets expire. FY15 Budgets will be available by 8:00 AM on July 1 st. 20

 Tracking spreadsheet “ENCOMPASS Cleanup Items” updated monthly now (every Friday later) and posted on ENCOMPASS website under ENCOMPASS Documents  2014 Year End Document Cleanup  /Forms/AllItems.aspx?RootFolder=%2FSBA%2Fencompass%2 FShared%20Documents%2F2014%20Year%20End%20Docum ent%20Cleanup&FolderCTID=0x012000BCB1AAB4C101E043A CA92C4E2CAF12AC&View={F028AA1A-92F6-481F-AD3C- A6A /Forms/AllItems.aspx?RootFolder=%2FSBA%2Fencompass%2 FShared%20Documents%2F2014%20Year%20End%20Docum ent%20Cleanup&FolderCTID=0x012000BCB1AAB4C101E043A CA92C4E2CAF12AC&View={F028AA1A-92F6-481F-AD3C- A6A

 Please do not submit any AP items to AOS IF:  They have not been posted  They have not been fully approved by your Agency  Deadline for submitting FY14 Claim Vouchers, PO payments, Travel Vouchers, SDO Reimbursements to AOS by 4:30 PM June 20 th.  2015 Budget Reference should not be used for transactions with accounting date prior to July 1 st. 23

 Like last year, we will not automatically change AP Defaults to FY 2015 when your agency year-end deadline or extension has passed  To have AP Defaults changed to FY 2015, Agency CFO needs to submit a GMIS Issue to have them changed  We will confirm that processing for FY 2014 has finished 24

 Accounting entries must be completed for all ROCs by 4:00 PM June 30 th to be counted as FY14 revenues.  AR approvers must approve all ROC Direct Journals by 4:00 PM June 30 th.  SDO Reimbursement Voucher Deposits Accounting entries must be completed by agencies by 4:00 PM June 30 th.  Do not use 2015 for Budget Reference until July 1, 2014 on deposit accounting entries. 25

 Capital assets acquired June 30, 2014, or earlier must be reported to prevent a prior period adjustment to the State’s financial statements.  All available FY14 asset related receivers and asset related vouchers must be completely processed through interfaces into Asset Management (AM) by Wednesday, July 2,  Deadline to enter and complete processing of all asset transactions for FY14 will be July 2 nd.  Every pre-interface and interface must be successfully loaded. 26

 Year End Prep Asset Management  Annual inventory must be completed before June 30,  Must be a comprehensive inventory  All updated including asset additions and retirements must be entered into AM by June 30, 2014  Public Query – SOIAM025_PLUS  AM Cleanup Project 2014  Designed to identify and remove inconsistencies from AM  All updates including changes to the descrs, profiles, useful lives, and categories must be entered into AM by June 30,  Public Query - SOIAM_SPECIAL_PROJECT_FY_2014  Additional instructions can be found on Encompass websiteEncompass website 27

 Closing Periods in AM  AM acct periods close monthly - all transactions must be completed by the last day of each month or moved into the next accounting period to be processed.  To avoid additional clean up, transactions entered must use current date as acct date.  Transactions submitted to workflow must be approved before the period is closed. 28

 All available transactions must be charged/allocated to the correct projects prior to year end, including Negative Revenue amounts in the ENCOMPASS Cleanup Items spreadsheet.  Drawdowns for receivables from the Federal Government as of June 30, 2014 need to be done and entered in PeopleSoft by July 31,

 Deadline for submitting FY14 Journal Entries and ID bill Journal Entries to AOS is 4:30 PM June 20 th.  Automatic exception for allocating June 18th, and June 25 th payroll entries  Deadline for these entries is 4:30 PM July 3 rd  No exceptions!  June 25 th payroll will be loaded by morning of June 23 rd (potentially June 21 st ). 30

 Please review trial balances regularly, preferably monthly.  Make corrections on timely basis  Agency Accounting Responsibilities (from Accounting Manual)  Operate within the confines of the established budget.  Maintain an adequate internal control environment.  Maintain adequate internal control procedures.  Properly utilize the state accounting system as prescribed by the ENCOMPASS team.  Maintain an effective and accurate accounting system for necessary subsidiary and supplementary records.  Maintain, and make available for audit, documentation supporting the validity and accountability of monies received or disbursed.  Perform duties in accordance with statute, regulations, state policy, contract provisions, and federal requirements as applicable. 31

 Agency staff will not be allowed in PeopleSoft from 4:30 PM on July 11 th until 8:00 AM on July 14 th (Indy time).  Necessary to allow processing of Financial Close. 32

 Budget Development 16/17 will only be done in Hyperion Environment  IOT/GMIS to manage the Hyperion environment  Additional license purchases  Maintenance in out years  Hardware support  Development/contractual support  Statewide costs ~ will not exceed $612K; will amount to about 7.5% increase in monthly PS Financials charge back in FY15  Existing Hyperion users no longer have to pay for separate maintenance contracts  Reserve flexibility is an option if agencies need assistance in covering increases associated with Hyperion Budget Development expenses 34

 Hyperion Environment can be used for more than developing budgets for the biennium.  Basic vs. Advanced licenses  SBA will not require the purchase/use of an Advanced license  The $612K amount referenced on the previous slide does not include costs for specialized/advanced functions.  Agencies will pay for the advanced features within Hyperion as they do now.  GMIS will monitor Advanced use in case additional hardware is needed to support the entire environment. 35

 Reminder: For subrecipient payments from Federal Funds, include the CFDA Number in the Payment Message field  More details to follow from State Board of Accounts  Requirement per Federal OMB Circular A-133  Do not make AP payments from Salaries & Wages accounts  Account range from – should not be used  Payments should be processed via Payroll 37

 AP PO Vouchers must be posted prior to Reqs/PO’s being closed and prior to PO Rollover.  When a Business Unit is being rolled, security is removed on that day – schedule to be posted in mid-May.  PO Rollover prep deadline is May 30 th. 39

 Ensure all Vouchers submitted and to be paid by AOS are Posted and fully Agency Approved prior to Year End Payables cutoff deadline (June 20 th ).  Year End Deadlines and Shutouts  Asset Management Deadline – July 2 nd  No PeopleSoft access from 4:30 PM July 11 th until 8:00 AM July 14 th. 40

 The PeopleSoft Financials system will be down for a technical upgrade from 6:00 PM on April 17, 2014 to 6:00 AM on April 21,

 Steve Daniels, Auditor of State’s Office   Joe Fistrovich, State Budget Agency (317)  Zac Jackson, State Budget Agency   Deanna Oware, State Budget Agency 

 ENCOMPASS Website  If you are having technical issues, submit to: ERP/c/SOI_CUSTOM_APPS.SOI_GMIS_ISSUE.GBL 43 We Welcome Your Feedback, Questions & Comments