Transcript Slide 1

Office of Operations
2010 Fall Conference
New York State Government Accounting
Bureau of
State Accounting Operations
Tom Mahoney
Director
Melody Goetz
Assistant Director
[email protected]
[email protected]
State Government
Revenue Accounting
Budget Overview
Fund Accounting
Appropriations
OSC Website
State’s Financial Condition
STIP
Central Accounting System (CAS)
 The Office of the State Comptroller (OSC) is
responsible for the operation and development
of the NYS Central Accounting System (CAS).
 The CAS is the hub of financial activity in the
State; it is used for accounting for all revenues
of the State, controlling agency appropriations
and spending levels, processing 18 million
financial transactions annually, issuing 15,000
payments daily, reflecting the results of these
transactions in more than 700 reports for a
wide range of users, and generating critical
input to the audited financial statements for
the State.
State Government Structure
 Executive – ALL State Departments
and Agencies
 Legislative – Assembly and Senate
 Judicial – Court Administration
Budget Overview
April - March
Agencies prepare
Budget Requests
for Next Year
Budget
Requests
June - September
Budget
Certificates
April - May
Budget Execution,
Control and
Accountability
DOB
Reviews
Executive
Review
Legislative
Review
October - December
Executive
Decisions
Executive
Budget
Released
Financial
Plan
Appropriations
Established
Legislative
Review &
Enactment
January - March
NEW YORK STATE FINANCIAL CYCLE
Executive and
Legislative
Approval
Agency Budget
Requests
Appropriations,
Segregations,
Cost Center
PLAN
ESTABLISH
CONTROL
Financial
Statement
Management
Reporting
EVALUATE
Revenues
EXECUTE
Budgetary
Reporting
Encumbrances
and
Expenditures
Statutes That Guide Us
 The State Constitution
 State Finance Law
 Article VII Appropriation Bills
 Article VII Language Bills
 Other Consolidated Laws
 Federal Laws and Regulations
State Constitution
 Requires Annual Budget
Submission
 Restricts Payments From State
Treasury
 Restricts Payments from Agency
(sole custody) Accounts
 Defines Appropriation and
Reappropriation
State Finance Law –
Key Fiscal Provisions

Article 2 - GENERAL FISCAL PROVISIONS
Definitions
Additional Definitions
Fiscal Year
Payments, Transfers and Deposits
Duties of Dept of Taxation and
Finance
§8Duties of the Comptroller
§ 8B - Additional Duties of the
Comptroller
§ 40 – Period of Appropriations
§
§
§
§
§
22A 347-
State Finance Law – Key Fiscal
Provisions - continued

Article 6 - (§ 70 - 99-S) FUNDS OF THE
STATE

Article 7 - (§100-122-A) ACCOUNTS AND
AUDITS
State Finance Law
Article 3 – The Budget
 § 20. Division of the Budget
 § 21. Auxiliary Powers of Executive Department
 § 22. The Budget; Contents
 § 22-a. Synopsis of Requests for Appropriations;







Submittal by Budget Director
§ 22-b. Report of the Legislature on the Enacted Budget
§ 22-c. Capital Program and Financing Plan
§ 23. Plans and Estimates
§ 24. Budget Bills
§ 25. Reappropriation Bills
§ 26. Maintaining Capital Assets
§ 27. Scheduled Maintenance Appropriations
Appropriation Accounting
In this segment, we will:

Discuss Executive Budget Submission

Discuss Fundamental Principles for
accounting and controlling authorized
State spending

Examine the nature of an appropriation,
its characteristics and underlying
principles
Executive Budget Submission
Quick Start Budget Discussion

November 5th
Legislative Session Begins

Legislature convenes on the first
Wednesday after the first Monday in
January.
Executive Budget Submission continued
Budget Due
 On or before the 2nd Tuesday following the
annual meeting of the legislature.

On or before the February 1st in each year
following the election of Governor and
Lieutenant Governor.
Bottom Line
 Third Tuesday after the first Monday
in January, except in years following
gubernatorial elections when it must be
submitted by February 1.
Article VII Bills
As part of the Executive Budget,
the Governor presents to the
Legislature a number of
appropriation and language bills
which provide the legal
authorization for spending from
Funds of the State and the means
to finance such spending.
Article VII
Appropriation Bills
 Public Protection and General
Government
 Legislature and Judiciary
 Debt Service
 Education, Labor and Family Assistance
 Health and Mental Hygiene
 Transportation, Economic Development
and Environmental Conservation
Article VII
Language Bills
 Along with the submission of the
Appropriation Bills, the Governor
also submits legislation to amend
State laws governing programs and
revenues.
 This Legislation is needed to
implement the State’s Financial
Plans for the upcoming fiscal year,
and beyond.
Budget Amendments
The State Constitution permits the Governor
to amend or supplement the Executive
Budget within 30 calendar days after its
submission or, with the consent of the
Legislature, at any time before the close of
the legislative session. Such revisions,
additions or deletions, conveyed to the
heads of the fiscal committees in a
memorandum, reflect necessary corrections
or responses to new situations or conditions
arising after the preparation of the
Executive Budget.
Appropriation Bills
Become Law
Executive Budget Appropriations
(those recommended by the Governor)
are Law Immediately Upon Enactment
by the Legislature
EXCEPT



Legislature and Judiciary
Additions by the Legislature
These must be signed by the Governor
Appropriation - Defined
An appropriation is a statutory authorization
to make expenditures during a specific State
fiscal year, and to make disbursements for
the purposes designated, up to the stated
amount of the appropriation:




By a State Dept or Agency
For a Named Program
Payable From A Specified Fund/Account
For Specified Purposes, Activities or Projects
Appropriation Periods

State Constitution – 2 Year Life Maximum

State Finance Law - Section 40
Provides Liability Periods,
Appropriation Periods and Lapse Dates

Budget Bills Oftentimes NOTWITHSTAND
State Finance Law and Permit Liabilities
‘Heretofore’ Or ‘Hereafter’ To Be Paid From
Current Year Appropriations
Deficiency Appropriation

A deficiency appropriation is used to meet actual
or anticipated obligations not foreseen when the
annual budget and any supplemental budgets
were enacted.

It might add to a previously authorized
appropriation anticipated to be inadequate, or
provide a new appropriation to finance an existing
or anticipated liability for which no appropriation
exists.
 A deficiency appropriation typically applies to the
fiscal year during which it is made.
OSC – Appropriation Management
The Appropriation (Budget) Management
function ensures that agencies do not obligate
or disburse funds in excess of those
appropriated or segregated. This function also
provides agencies with tools for managing
appropriations, for example, organization,
program, project and cost center levels.
Appropriation Management consists of
structuring the budget and allocating and
controlling funds In Accordance With State
Laws.
Budget Certificates Required
 Pursuant to State Law – No Spending
From an Appropriation Can Occur
Until Approved by The Budget
Director
 Exceptions – Courts and Legislature
Budget Certificate
EXECUTIVE DEPARTMENT - DIVISION OF BUDGET
CERTIFICATE OF APPROVAL OF AVAILABILITY
Purpose
__ Appropriation Add (SGR)
__ Appropriation Change (SGC)
Originating Organization:
Batch No(s):
__ Interchange (ITR)
______
Certificate Date:
04/01/09
Orig Chapter/Section/Law:
0050/01/09
Reapprop Chapter/Section/Law: cccc/ss/200x
Program Name:
01060
123456
Amends Certificate Dated: MM/DD/YY
Bill Page & Line:
233/1-12
Bill Page & Line:
PPP/LL
POLICING THE THRUWAY
State Operations Program Total $49,939,000
Interchange From Internal # 123456
$0
Suballocations & Transfers
$0
Total Certificate Amount $49,939,000
For services and expenses . . . in accordance
with the following schedule:
APPROPRIATION ATTRIBUTES
Organization Code:
01060
Fund/Subfund:
339-08
Program Code: A13600010
Authority:
090
Internal No. 1234567
Project Code: 01PROJECT
Budget Certificate (continued)
Cumulative
Interchanges
Approp
Appropriation
Approp
Appropriation
Transfers &
Total
Previous
Line
Title
Object
Amount
Suballocations
Available
Allocation
Personal Service - Reg
41
27,714,000
27,714,000
0
Personal Service Temp
42
0
0
0
Overtime/Holiday
Comp
46
5,835,000
5,835,000
0
1,458,750
1,458,750
33,549,000
0
8,387,250
8,387,250
Total Personal Service
33,549,000
0
Curent
Change
Allocation
6,928,500
6,928,500
0
NPS-Supplies &
Materials
53
0
0
0
0
NPS-Travel
54
0
0
0
0
NPS-Misc Contractual
Services (55, 56)
5
0
0
0
0
NPS-Equipment
Acquisition
57
0
0
0
0
NPS-Fringe Benefits
58
15,017,000
15,017,000
0
3,754,250
3,754,250
NPS-Indirect Costs
594
1,373,000
1,373,000
0
343,250
343,250
16,390,000
0
4,097,500
4,097,500
0
12,484,750
12,484,750
49,939,000
(12,484,750)
37,454,250
49,939,000
0
49,939,000
Total NonPersonal
Service
16,390,000
0
TOTAL ALLOCATED
TOTAL UNALLOCATED
TOTALS
49,939,000
0
49,939,000
State Finance Law: Section 24
 For all non-federal state operations
appropriations

by fund type, which at a minimum shall
include general fund, special revenue-other
funds, capital projects funds, and debt
service funds;

for personal service appropriations,
separate appropriations shall be made for
regular personal service, temporary
personal service, and holiday and overtime
pay;
SFL: Section 24 (continued)
 for nonpersonal service
appropriations, separate
appropriations shall be made for
supplies and materials, travel,
contractual services, equipment,
and fringe benefits, as
appropriate.
Budget Reform Appropriation
Model – Personal Service
State Funds
Personal Service
Personal Service –
Regular
Temporary Service
Holiday/Overtime
Comp
Federal, Capital,
Debt Service
Personal Service
Budget Reform Appropriation
Model – Non Personal Service
State Funds
Non Personal Service
Supplies & Materials
Travel
Contractual Services
Equipment
Fringe Benefits
Indirect Costs
Capital Projects
Grants
Debt Service
Federal, Capital,
Debt Service
Non Personal Service
Capital Projects
Grants
Debt Service
Current CAS
 PROGRAM LINE IS APPROPRIATION
 Details below are Segregations
ADMINISTRATION PROGRAM ....................... 4,911,000
Special Revenue Funds - Other / STATE Operations
Miscellaneous Special Revenue Fund - 339
Alcoholic Beverage Account
PERSONAL SERVICE
Personal service--regular ..................... 1,340,000
Holiday/overtime compensation .................. 5,000
Amount available for personal service …… 1,345,000
Budget Reform Model
In SFS - Each of these is an Appropriation
ADMINISTRATION PROGRAM ............................... 4,911,000
Special Revenue Funds - Other / State Operations
Miscellaneous Special Revenue Fund - 339
Alcoholic Beverage Account
PERSONAL SERVICE
Personal service--regular ............................... 1,340,000
Holiday/overtime compensation .......................... 5,000
Amount available for personal service …… 1,345,000
NONPERSONAL SERVICE
Supplies and materials ....................................... 117,000
Travel .................................................................... 37,000
Contractual services ........................................ 2,083,000
Equipment .......................................................... 592,000
Fringe benefits ................................................... 694,000
Indirect costs ........................................................ 43,000
Amount available for nonpersonal service ... 3,566,000
Appropriation Types –
Local Assistance
Used for GRANT Payments to:
 Local Governments
 School Districts
 Not-for-Profit Organizations
 Financial Assistance To, Or On
Behalf Of, Individuals
Local Assistance Appropriation
ADMINISTRATION PROGRAM…………….... 467,000
General Fund / Aid to Localities
Local Assistance Account - 001
For services and expenses of stabilization grants of
up to $50,000 to support the operating expenses of
small and mid-sized arts organizations .. 467,000
Appropriation Types –
Debt Service
 Principal and Interest on State Debt
 Principal and Interest on Public
Authority Debt
 Lease-Purchase and Contractual
Obligations for State Facilities and
Programs Financed with Non-State
Debt
 Debt-Related Expenses
Debt Service Appropriation
DEBT SERVICE FUND-GENERAL DEBT
SERVICE FUND--311
For payment to the Housing Finance
Agency and the Urban Development
Corporation for payment of bonds
issued to finance the State's housing
programs……………..63,000,000
Appropriation Types –
Capital Projects
 State Construction Projects
 State Assistance for Local
Government Projects
 Construction Management
(e.g. Design & Supervision)
Capital Projects Appropriation
Federal Capital Projects Fund - 291
Hazardous Waste Purpose
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
For the federal share of the cleanup of hazardous
waste sites pursuant to the provision of the federal
comprehensive environmental response,
compensation and liability act of 1980
reauthorization or amendments thereto including
personal service (and other incidental
expenses) and suballocation to other state
departments and agencies
(09FS04F7)……………………………………………10,000,000
Budget Certificate (continued)
FEDERAL SECTION:
FEDERAL GRANT AWARD
CFDA NUMBER
PRIMARY INTERNAL NO.
GGGGGGGGGG
NNNNN
NNNNNN
CAPITAL PROJECTS SECTION:
CCP CODE
CCP
ACTIVITY AND CLASS CODE CCxxxxxxxxxx
PERIOD OF USE
20YR
(Note: CCP Code is assigned by DOB, Class Code is provided in
appropriation act.)
Transactions That Affect
Appropriation Records

Contract Encumbrance – Reservation of Unspent
Balance

Voucher Payments – Reduce Unspent
Appropriation/Segregation Balance





Payroll Transactions
Journal Vouchers - Transfer expenditures
Refunds of Appropriation Expense (AC1286)
Repayment of Appropriated Loan Receivable
Bondable Capital Projects (Activity Codes)
Restrictive Language
MUST
Make Sense
 Embedded in Appropriations
 Added to Language Bills
Movement of
Appropriation Authority
There are 4 types:
 Suballocations
 Interchanges
 Transfers
 Allocations (New in 2011)
It is important to understand the differences
between these and the proper way to
reappropriate the available funds if
necessary.

Suballocations
Authorizes the movement of authority
between agencies within the same fund and
for the same program expenditures as
appropriated.
 The appropriation authority maintains its original
appropriation identity including program name
and program code.
 It is not added to an existing appropriation within
the receiving agency.

To continue the availability of funds, the
original appropriation must be
reappropriated. OSC will extend the lapse
date of the original appropriation and all
suballocations associated with it.
Interchanges

Movement of authority between
appropriations within an agency and fund.

Appropriation authority which has been
interchanged takes on the identity of the
receiving appropriation.

To continue the availability of funds, the
appropriation receiving the
interchange must be reappropriated
(rather than the donor appropriation).

Interchanges
State Operations and Aid to Localities
interchanges are authorized by Section 51
of State Finance Law.
 Allows for interchanges within the same agency,
fund/subfund and program without limit.
 Allows for interchanges among programs within
the same agency and fund/subfund as long as
the total amount appropriated for any program
does not increase or decrease by more than the
aggregate of 5% of the first $5 million, 4% of the
second $5 million and 3% of the amounts in
excess of $10 million.
Interchanges

Capital Project interchanges are authorized
by Section 93 of State Finance Law.
 Allows for interchanges within the same agency,
comprehensive construction program (CCP) and
purpose without limit.
 Allows for interchanges among purposes within
the same agency and CCP as long as the total
amount appropriated for such purpose does not
increase or decrease by more than the aggregate
of 25% of the first $5 million, 20% of the second
$5 million, 15% of the third $5 million and 10%
of the amounts in excess of $15 million.
Transfers
Transfers authorize the movement of
appropriation authority between
appropriations within or between agencies,
funds and/or programs.

Transfers between two enacted
appropriations
 The amount transferred-in is additive to
the receiving program appropriation.
 The appropriation attributes and period
of availability (including lapse date) of
the receiving appropriation remain
unchanged.
Transfers (continued)

Transfers requiring the creation of a
new appropriation record in the
receiving fund or agency
 The receiving appropriation will be
assigned a lapse date pursuant to §40
of the State Finance Law that made may
be different than the lapse date of the
appropriation from which the transfer
was made.
 These types of transfers are problematic
to administer and should be
discouraged.
Transfers (continued)

To continue the availability of funds, the
appropriation receiving the transfer
must be reappropriated (rather than
the donor appropriation).
Apportionments
(NEW in 2011)
 Needed to accommodate special
language in Appropriations that
cannot be assigned to Rulesets
established within SFS.
 These do not have specific statutory
authority but are necessary to satisfy
SFS Committment Control rules.
Apportionments
Appropriation Ruleset #1
State Funds Model
Uses Level 4 of Account KK Tree
Appropriation Ruleset #2
Federal, Capital & Debt Funds Model
Uses Level 3 of Account KK Tree








Personal Service – Regular
Temporary Service
Holiday/Overtime Compensation
Supplies & Materials
Travel
Contractual Services
Equipment
Fringe Benefits

Personal Service

Non Personal Service

Fringe Benefits

Indirect Costs

Indirect Costs

Capital Projects

Capital Projects

Grants

Grants

Debt Service

Debt Service
Apportionments
(The PS amount must be apportioned to a separate
appropriation line in SFS)
Federal Capital Projects Fund - 291
Hazardous Waste Purpose
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
For the federal share of the cleanup of hazardous
waste sites pursuant to the provision of the federal
comprehensive environmental response, compensation
and liability act of 1980 reauthorization or
amendments thereto including personal service
(and other incidental expenses) and suballocation
to other state departments and agencies
(09FS04F7)…………………10,000,000
Melody Goetz
Assistant Director
Bureau of State Accounting Operations
Accounting for Revenues
 Taxes:
 General Fund vs. Dedicated
 Refunds
 Check Replacements
 Miscellaneous Receipts:
 Agency-Derived Revenues
Statutory Authority to Collect
Statutory Authority to Deposit
Accounting for Revenues
(continued)
 Federal Grants – Payment
Management
 Based on disbursements made
 Relies on Grant Award contained in
Appropriation/Segregation records
 Revenue Contracts
 Repayment of Appropriated Loans
Receivable (ALR)
How Revenues Are Recorded
in CAS
Forms

Report of Monies Received (AC909)

Refund of Appropriation Expenditures
(AC1286)

Salary Refunds (AC230)
Report of Moneys Received


Wire transfers and checks

Sweep money from sole custody accounts not on
the CAS system



Unidentified receipts (object code 35390)

Reimbursements of accounts receivables (ALR’s &
Cash Advances)
Agency operations (fees, fines, sales, taxes,
federal grants)
Revenue contracts or repayment agreements
Expenditure refunds relating to a lapsed
appropriation (object code 35327)
Refund of Appropriation
Refund of Appropriation (AC1286) is
used by agencies to request a credit to
an active appropriation, for
expenditures made from that
appropriation. These represent a
reversal of the original voucher.
Acceptable Reasons for Refunds

Payments made in error and a check will not be
reissued (PMT)
 Refund of personal service expenses (SVC)
 Other than personal service reimbursements from
non-state entities (telephone, fax, photocopier
usage) (NPS)

Incorrect payee or amount and a check will be
reissued (INC)


Audit disallowances and recoveries (AUD)


Treasury write-offs of checks returned (Treasury use
only) (TSY)
Reduction of cash advance accounts (ADV)
All other refunds and reimbursements authorized in
state appropriation or statute (REI)
Chart of Accounts
The State’s system for accounting
is very complex and includes
dozens of accounting codes that
includes agency, cost center, fund,
subfund (account), year program,
authority, project, activity, object,
etc., etc., etc., etc…
Transaction Account Codes
1xxxx
2xxxx
Assets
Liabilities – Vouchers Payable,
Retainage (OSC)
3xxxx
4xxxx
5xxxx
Taxes & Revenues
Personal Service
NonPersonal Services
(Dept Operations)
6xxxx
7xxxx
Grants
Capital Projects
FUND ACCOUNTING
 What is a fund?
 Why do we have funds?
 How can I get information on my
funds?
 How are funds affected each year?
 What are my responsibilities once
a fund is assigned to my agency?
GENERAL LEDGER
ACCOUNTING
Funds Defined

The State Finance Law Defines and
Mandates the Use of Seven Fund Types





Accounting Standards set by GASB
Separate Accounting Entity
Self-Balancing Set of Accounts
Used to Record Financial Information
Used to Provide Financial Reports to
Interested Parties
GENERAL LEDGER
ACCOUNTING
Accounts or Subfunds
A SUBFUND is a subdivision of a fund

Specific financial transactions and financial
resources are recorded and managed
 Cash is separate and not commingled with
another account

Example: State Special Revenue Fund-339
 Policing The Thruway Account (339-08)
 Love Your Library Fund (339-LL)
GENERAL LEDGER
ACCOUNTING - FUND TYPES
GOVERNMENTAL FUNDS
 General
 Not required to be deposited to another
fund

Special Revenue
 Specific revenue sources
 Legally restricted for specified purposes

Capital Projects
 Acquisition and construction of capital
facilities
GENERAL LEDGER
ACCOUNTING - FUND TYPES
GOVERNMENTAL FUNDS (continued)

Debt Service
 Resources and payment of P&I on GO,
LP and other contractual obligations

Permanent
 Legally restricted to available earnings
Fund Accounting Reporting Hierarchy
Governmental Funds Group
General
Fund
Special
Revenue
State
Special
Revenue
Fund 339
Policing the Thruway
Account - 08
Capital
Projects
Debt
Service

General Ledger Accounting Fund Types (continued)
Proprietary Funds
 Enterprise
 Operate like a business
 Commissaries
 Sheltered Workshops
 Internal Service
 State agencies providing goods and services
for other State agencies
 OGS Centralized Services
 Correctional Industries
General Ledger Accounting

Fund Types (continued)
Fiduciary
 Private Purpose Trust
 P&I benefit individuals, private organizations
or other governments
 Agriculture and Milk Producers
 Agency
 Monies held in trust for someone else
 Health Insurance
 Lottery Prizes
 Pension
 Monies held in trust for the members and
beneficiaries
Creating Funds and Accounts
 Legislation in Budget Bills or Special Acts
 State Finance Law – Article 6
 Statutory authorization
 § 92-g. Motorcycle safety fund. 1. There is hereby
established in the joint custody of the state comptroller
and the commissioner of taxation and finance a special
fund to be known as the "motorcycle safety fund".
 fees collected pursuant to paragraph (c-1) of subdivision
two of section five hundred three of the vehicle and traffic
law .
 Moneys of the fund, following appropriation by the
legislature, shall be made available to the department of
motor vehicles only for the administration and
implementation of the motorcycle safety program
established pursuant to section four hundred ten-a of the
vehicle and traffic law.
Creating Funds and Accounts
Other Purposes

Special Accounting Required
 Federal Grant funds

Agency Request

Temporary until legislation is passed
Sole Custody Funds

Funds or Accounts held in the Sole Custody of a
State Agency outside of CAS
 Patient or Inmate Funds
 HCRA Pools
 Commissary Accounts

Annual Web-Based Reporting
 1,400 reports filed for Fiscal Year ending March 31, 2010
 Updated each year for legislative/administrative changes
 Reported in the Comptroller’s Annual Reports
 SFL §107 requires custodians to report month end cash
balance to the State Treasurer for inclusion in the State
Registry (See Accounting Bulletin A-597)
Short-Term Investment Pool
(STIP) - WHAT IS IT ?

State Finance Law: Section 98-a

Represents:


State’s General Checking Account
Includes ALL Joint Custody Funds of the
State Treasury
Short-Term Investment Pool
(STIP) (continued)


Investment Policies

Distribution based on:
 Average Daily Balance
 Average STIP Balance
 Monthly Interest Yield

State Finance Law - If Temp Loans are
authorized, then agencies must request
interest!
Interest is Shared with all Funds
authorized to receive interest
Financial Reporting
OSC Website
Resources for State Agencies
OSC Website - Information for
State Agency Representatives
Fund Classification Page
Information for State Agencies
OSC WEBSITE – Information
for State Agencies
USER PROCEDURE MANUALS
Bulletins
FORMS
Find Information About
Find Information About….







College Savings
Program
Employment
Opportunities at the
Comptroller’s Office
Freedom of Information
Law (FOIL)
Government Audits
Government
Transparency
Legal Opinions
Local Government
Leadership Institute









Local Government
Training Clearinghouse
NYS & Local Retirement
System
NYS Debt Management
NYS Financial Reports
NYS Public Authorities
Oil Spill Fund
Protecting Your Money
Procurements
Reporting Government
Fraud
OSC Website
STATE FINANCIAL REPORTS
 Cash Basis Reports
 Annual Report on State Funds:
2002 through 2010
 Monthly Reports on State Funds
Receipts and Disbursements: 2001
through 2010
 GAAP Reports
Questions?
Thank You