1. Flexgen Trustee Warrants to Checks Resource 2018

2. Warrant System to Checking System
Checking System Advantages/Disadvantages
Approval
Bank Coordination
Department Coordination
LGC Coordination
Disbursement Process
Accounting Entries

3. Checking System Advantages/Disadvantages

4. Checking System Advantages
Truer picture of cash balances
Better reflection of county cash flow
Maintains more accurate department balances
Less disparity between department and Trustee accounting
Can eliminate manual warrant entry
County Audit will love you!

5. Checking System Disadvantages
Potential loss of some interest revenue (currently not as relevant)
Can cause some increase in workload
Transition period can be difficult

6. Warrant System vs Checking System

7. Warrant System
Department disbursements are made to the Trustee’s General Ledger when the warrants are presented to the bank for payment
Department balances are decreased as the warrants clear the bank
A file can be sent to the Trustee from the departments
The Trustee will then reconcile the warrants as they clear the bank
The Trustee will then distribute the reconciled warrants
This eliminates manually entry of individual warrants

8. Checking System
Department disbursements are made to the Trustee’s General Ledger as soon as the checks are written by the departments
Department balances are decreased at the time the checks are issued by the departments
The decrease is the full amount of all checks issued
The Trustee will receive a file from the departments as checks are written
The Trustee will then distribute all checks as they are issued
The Trustee cash account is effected immediately

9. Approval

10. Approval
County Audit
County Commission

11. Bank Coordination

12. Bank Coordination
The transition needs to begin at the start of a month
Bank clearing accounts need to be established
County General
Schools
New checks may need to be ordered
Previously issued warrants will continued to be handled as usual

13. Department Coordination

14. Department Coordination
Transition needs to be coordinated with all departments in the county
Each department (office) on LGC software will create a disbursement file and send to the Trustee after checks are printed
If the department (office) is not on LGC software, a manual entry may be made

15. Department Coordination
A report reflecting totals for each department will be sent to the Trustee along with the disbursement file
Each department (office) will need to notify the Trustee when checks are voided
Outstanding warrants will be handled as usual
The Trustee and the departments need to be mindful of the transition date

16. LGC Coordination

17. LGC Coordination
Contact your LGC Field Representative as early in the planning stages as possible to coordinate the transition
Your LGC Field Representative will schedule a site visit for the transition day and training
Your LGC Field Representative will also coordinate training for the other departments (offices) in the county
Subsequent site visits will be coordinated as needed

18. Department Disbursement Process

19. Disbursement Process Department Process Accounting File Handler
Check Reconciliation
Create Diskette for Trustee
Separate Files will be created for payroll and vendor checks

20. Disbursement Process Trustee Process Trustee Warrants
Load Warrants by New File

21. Disbursement Process Trustee Process Trustee Warrants Warrant Reports
Undistributed Warrants Totals
Totals from this report should agree with the totals sent from the departments with the disbursement file

22. Disbursement Process Trustee Process Trustee Daily Day End Process
Distribute Warrants

23. Accounting Entries

24. Accounting Entries
When checks are distributed, the appropriate department will be debited and the Outstanding Warrants Account will be credited
A check will be written from the Trustee Checking Account and deposited into the appropriate Bank Clearing Account
A CD manual transaction is entered to debit the Bank Clearing Account and credit the Trustee Checking Account

25. Accounting Entries
An electronic funds transfer may be made in lieu of writing a check
In this case, a TR or JE manual transaction is entered to debit the Bank Clearing Account and credit the Trustee Checking Account

26. Accounting Entries
As checks clear the bank, an entry is made for the total checks cleared
This entry is a debit to the Outstanding Warrants Account and a credit to the Bank Clearing Account
The balances of the Bank Clearing Accounts and the Outstanding Warrants Account should be the same
Most Bank Clearing Accounts keep a “cushion balance”, so the balances between the Bank Clearing Accounts and the Outstanding Warrants Account will reflect this difference
The Unreconciled Warrants Report should equal the total in the Outstanding Warrants Account

27. Accounting Entries

28. Accounting Entries Cumberland Clearing Account Balance: $615,521.31
Cushion: $100,000.00
Citizens Clearing Account
Balance: $1,237,109.00
Cushion: $100,000.00
Outstanding Warrants Account
Balance: $1,652,630.31
Cumberland Clearing Account $615,521.31
Citizens Clearing Account $1,237,109.00
$1,852,630.31
Account Cushions - $200,000.00
Net Total $1,652,630.31

29. This completes the Flexgen Trustee Warrant to Checks Presentation Thanks for attending!