Transcript Basic Finance with CATMAn An overview of the Office of Finance

Keeping Your Hometown Healthy
Arkansas Department of Health
Basic Finance
with CATMAn
An overview of the
Office of Finance
Providers:
Bob Bennett,
Diane Smithson, and
Doug Hall
Supervision 101: Update Module II
Keeping Your Hometown Healthy
Arkansas Department of Health
Keeping Your Hometown Healthy
Arkansas Department of Health
Compliance Branch

CAFR Section:
 Is
responsible for preparing the year-end
closing book for the State of Arkansas’
Comprehensive Annual Financial Report.
During the year, a review of all financial
transaction in AASIS occurs to ensure they
are recorded in compliance with rules and
regulations for government agencies.
Keeping Your Hometown Healthy
Arkansas Department of Health
Compliance Branch (cont’d)

Cost Allocation Section:
 Is
responsible for ensuring that ADH is
accurately allocating it’s multiple funding
sources to the appropriate programs within
the department in compliance with rules and
regulations for government agencies.
Keeping Your Hometown Healthy
Arkansas Department of Health
Compliance Branch (cont’d)

This is achieved through multiple activities
including but not limited to the
administration of CATMAn (Cost Allocation
Time Management Application) and the
Coding Validation Table.
Keeping Your Hometown Healthy
Arkansas Department of Health
Accounts Payable Branch

Payroll/Benefits Section:
 Is
responsible for verification of payroll
transactions and employee benefits.
 New
employee orientation sharing benefit
opportunities.
 Adjust existing employees benefits as requested.
 Training for timekeepers and time-approvers.
Keeping Your Hometown Healthy
Arkansas Department of Health
Accounts Payable Branch
(cont’d)

Payables Section:
 Is
responsible for the review and verification
of documentation submitted for an issuance of
a state warrant.
Payables – vendor payment.
 Travel Reimbursement – employee reimbursement
(TR-1) and petty cash reimbursement.
 Vendor
Keeping Your Hometown Healthy
Arkansas Department of Health
Managerial Accounting
Branch

Banking Section:
 The
primary role is to receipt, record, and
deposit Agency revenues in an accurate and
timely manner.
 This section also monitors revenue compared
to projections and performs the daily banking
responsibilities.
Keeping Your Hometown Healthy
Arkansas Department of Health
Managerial Accounting
(cont’d)

Budget Section:
 Is
responsible for managing the Department’s
appropriation levels by preparing and
reviewing monthly budget and expenditure
reports.
 Coordinates
input for the development of
the Agency’s biennial and annual
budgets.
Keeping Your Hometown Healthy
Arkansas Department of Health
Managerial Accounting
(cont’d)

Grants Management / Reporting Section:
 Performs
daily letter of credit cash draws for
federal grant expenditures in accordance with
state and federal guidelines ensuring
consistency with state laws, regulations and
federal grantors funding requirements.
 Prepare and submit timely federal
financial reports.
Keeping Your Hometown Healthy
Arkansas Department of Health
Accounts Receivable Section

Accounts Receivable Section:
 Is
engaged in the collection of funds owed to
the Agency.
Office – receives payment from license
issuance and mandatory fees. Includes things
such as Plumbing/HVACR license and plan review.
 Licensing
Keeping Your Hometown Healthy
Arkansas Department of Health
Accounts Receivable Section
(cont’d)

Third Party Reimbursement:
Billing agent for all Medicaid/Medicare
services and flu activity performed in the
Local Health Units.
Keeping Your Hometown Healthy
Arkansas Department of Health
Accounts Receivable Section
(cont’d)
 Miscellaneous
Receivables:
Billing agent for miscellaneous revenues due
to the agency through contracts, MOAs and
various billing sources.
 Collections:
Works to collect outstanding debt due the
agency including civil penalties and
insufficient checks.
Keeping Your Hometown Healthy
Arkansas Department of Health
Procurement Branch
 Purchasing
Section:
Is responsible for commodity
contracts/purchase orders, technical
services and property leases.
 Contract
Support Section:
Is responsible for professional services
and sub-grant contracts/purchase
orders.
Keeping Your Hometown Healthy
Arkansas Department of Health
Procurement Branch
(cont’d)

Inventory Control Section:
Is responsible for management of agency
assets, property management and
coordination for items to Marketing &
Redistribution (M&R).
Keeping Your Hometown Healthy
Arkansas Department of Health
Central Supply

Central Supply is the warehouse for
clinical and office supplies used by the
various programs in the Agency.
 Courier
Service:
Managed through Central Supply for the
delivery of goods and lab specimens to and
from the local health units.
Keeping Your Hometown Healthy
Arkansas Department of Health
Central Supply
(cont’d)

Copy Center:
Reproduce stock forms and special projects
as requested by the programs.

Garage:
Responsible for regular maintenance and
repair on state vehicles.
Keeping Your Hometown Healthy
Arkansas Department of Health
Budget 101
General Definitions
 AASIS:
Arkansas Administrative Statewide
Information System.
 AASIS
is the software application that most
state agencies utilize for all financial and
personnel transactions.
Keeping Your Hometown Healthy
Arkansas Department of Health
Budget 101 (cont’d)
General Definitions

PBAS:
Performance Budgeting and Accountability
System.
 This
is the system where all budgets are
entered when submitting the annual or
biennial budget requests through DFA. Once
all numbers are verified and approved
this data is uploaded into AASIS.
Keeping Your Hometown Healthy
Arkansas Department of Health
Budget 101 (cont’d)
General Definitions
 State
Fiscal Year:
The state cycle runs from July 1st through
June 30th of the following year.
 SFY11
will run from July 1, 2010 through
June 30, 2011.
Keeping Your Hometown Healthy
Arkansas Department of Health
Budget 101 (cont’d)
General Definitions
 Grant
Fiscal Year:
Grant cycle dates are established by the
federal granting agency.
 ADH
has grants ending in almost every month
and multiple grants in some months. A grant
cycle typically runs only one year, however,
some grants are for two or more years.
Keeping Your Hometown Healthy
Arkansas Department of Health
Budget 101 (cont’d)
General Definitions
 Appropriation:
The legislative authority to expense funds.
 Authority
is given during the legislative
session through an appropriation act.
Keeping Your Hometown Healthy
Arkansas Department of Health
Budget 101 (cont’d)
General Definitions
 Funding:
The actual funds or money the agency has
to expense.
 The
appropriation must never exceed the
funding. However, some instances the
funding exceeds the appropriation.
Keeping Your Hometown Healthy
Arkansas Department of Health
Budget 101 (cont’d)
General Definitions

A Certification of Income (COI):
Is completed during the budget process to
inform the Office of Finance the amount of
anticipated revenue expected during the state
fiscal year.
Keeping Your Hometown Healthy
Arkansas Department of Health
Budget 101 (cont’d)
General Definitions
 Budget:
The combination of appropriation and
funding each Section and/or Center is
allowed to expense.
 For
example, if a Section had $100 in
appropriation and $90 funding, the budget
would be $90.
 If a Section had $80 in appropriation and
$110 in funding, the budget would be
$80.
Keeping Your Hometown Healthy
Arkansas Department of Health
Budget 101 (cont’d)
General Definitions
 Budgets
are completed every year according
to the appropriation act passed during the
previous legislative session.
 Every
two years a Biennial Budget is
submitted requesting agency needs for the
next legislative session that will cover two
fiscal years.
Keeping Your Hometown Healthy
Arkansas Department of Health
Budget 101 (cont’d)
General Definitions
 Fund
Center:
A three character reference. The fund
center is how the legislature disburses
appropriation. The main fund center for
Health is 34P.
 Fund:
Is tied to a fund center. Health’s main
fund is PHD0000.
Keeping Your Hometown Healthy
Arkansas Department of Health
Budget 101 (cont’d)
General Definitions

Cost Center:
A six digit number which represents a
work unit or section. The cost center is
linked to a fund center and fund.
Keeping Your Hometown Healthy
Arkansas Department of Health
Budget 101 (cont’d)
General Definitions

Internal Order:
A nine character field which represents a
funding source.
 For
example, ASGR00XX represents pure
general revenue funding. An internal order
ending in XX is typically a non-federal funding
source.
 An internal order ending with a number as in
10 or 11 is usually a federal grant and the
number represents the federal grant cycle.
Keeping Your Hometown Healthy
Arkansas Department of Health
Budget 101 (cont’d)
General Definitions

Commitment Item:
The type of expenditure. Every expenditure
is categorized into a commitment item.
 Below
is a general listing of commitment
items:
– Regular Salaries
 CI01 – Extra Help Salaries
 CI02 – Maintenance and Operations (M&O)
 CI00
Keeping Your Hometown Healthy
Arkansas Department of Health
Budget 101 (cont’d)
General Definitions

Additional Commitment items:
– Fringe
 CI04 – Grants and Aids typically sub-grant
payments
 CI09 – Conference Fees and Travel
 CI10 – Professional Fees (professional services
contracts)
 CI11 – Capital Outlay (asset purchases)
 CI03
Keeping Your Hometown Healthy
Arkansas Department of Health
Budget 101 (cont’d)
General Definitions
 General
Ledger (GL) Code:
Is the code within the commitment item
which specifies the type of expenditure.
 For
example, CI02 is for M&O expenditures
but the GL may be 5090006000 for Office
Supplies.
 Every GL code is “tied” to a commitment
item.
Keeping Your Hometown Healthy
Arkansas Department of Health
Budget 101 (cont’d)
General Definitions

Additional General Ledger (GL) Code:
 When
purchasing goods and services, an
appropriate GL code and commitment item
must be used.
 In the state budget system (PBAS) the GL
code is also known as the cost element.
Keeping Your Hometown Healthy
Arkansas Department of Health
Budget 101 (cont’d)
General Definitions

FITS (Financial Information Tracking
System):
 Internal
ADH system designed to monitor
budget vs. expenditures and commitments by
internal order.
 Information reported in FITS can be found in
Business Objects (ADH’s main database
reporting program)
Keeping Your Hometown Healthy
Arkansas Department of Health
How does all of this fit
together?

State Legislature approves ADH's budget
based on PBAS and DFA submission
providing us appropriation for the
biennium.

The appropriation levels are then loaded
into AASIS.
Keeping Your Hometown Healthy
Arkansas Department of Health
How does all of this fit
together?
(cont’d)
 The
program wants to purchase a widget.
A
purchase requisition must be entered
into AASIS.
A
cost center and internal order are entered.
 A material code for a widget is also entered
which defaults to a specific commitment
item (CI) and GL code.
Keeping Your Hometown Healthy
Arkansas Department of Health
How does all of this fit
together?
(cont’d)
 Before
the user can save the requisition,
AASIS checks to determine if there is enough
appropriation in the fund center and CI to
support the purchase.
 When the requisition is saved, the
appropriation is encumbered or committed.
Keeping Your Hometown Healthy
Arkansas Department of Health
How does all of this fit
together?
(cont’d)
 The
requisition must be approved (released) in
AASIS.
 A purchase order is created and approved.
The widget is ordered by procurement.
 The vendor delivers the widget and invoices
ADH.
 The program verifies receipt of the widget
and performs a goods receipt in AASIS.
Keeping Your Hometown Healthy
Arkansas Department of Health
How does all of this fit
together?
(cont’d)
 The
Payables Section receives the invoice,
reviews and post in AASIS for payment.
 The Grants Management Section (federal
funds) or Banking Section verify the funds are
available to issue a state warrant.
 The funds are “drawn” then deposited.
 A state warrant is then issued to pay the
vendor for the widget.
Keeping Your Hometown Healthy
Arkansas Department of Health
Who watches the budget?

It is the responsibility of the program or
section to stay within their specific
budgeted amount.

AASIS reports reflecting expenditures
along with program tracking and will let
you know where you stand regarding your
specific budget.
Keeping Your Hometown Healthy
Arkansas Department of Health
Who watches the budget?

It is important to
monitor monthly
and watch all
expenditures.
Keeping Your Hometown Healthy
Arkansas Department of Health
Training Opportunities

A-Train Courses:
 Road
to ADH Travel . . . . . . . . . . . . 1015364
 Travel Fraud Indicators . . . . . . . . . .1016579
 Vendor Payables Policy Training . . 1017474
Keeping Your Hometown Healthy
Arkansas Department of Health
Basic Finance
Questions?
Keeping Your Hometown Healthy
Arkansas Department of Health
Break Time
Ten (10) minutes
Keeping Your Hometown Healthy
Arkansas Department of Health
Cost Allocation for
Supervisor’s
A guide to understanding reports
and how they are used throughout
the Health Department.
Keeping Your Hometown Healthy
Arkansas Department of Health
Why Cost Allocation is
Important

WE HAVE NO CHOICE!!!!
 In
order to continue receiving federal funding,
we are required to have an approved Cost
Allocation Plan.
Keeping Your Hometown Healthy
Arkansas Department of Health
Why Cost Allocation is
Important

Help avoid audit findings and potential
repayment of federal dollars.

Cost Allocation is very important to federal
agencies who provide funding to the
Department of Health.


These agencies want to make sure their funding is
being used to support the programs they specify.
If we are unable to prove this, there is the
potential that federal agencies will require us
to repay funding they feel was not properly
utilized.
Keeping Your Hometown Healthy
Arkansas Department of Health
Why Cost Allocation is
Important

Improve accountability for time worked by
employees.
 Gives
supervisors an added tool to ensure
employees are working on appropriate
programs.
Keeping Your Hometown Healthy
Arkansas Department of Health
Why Cost Allocation is
Important

Support ADH’s efforts to secure additional
funding and positions from the State Legislature
and other funding sources.

Programs may not be properly supported by their
current funding. Cost Allocation will help support
this by giving us a total cost of a program.
Keeping Your Hometown Healthy
Arkansas Department of Health
Why Cost Allocation is
Important

Benefit fee-based programs and support
fee increases.
 There
may be instances where a fee based
program is not being supported properly by
the fees it collects. Through cost allocation,
we will be able to provide a cost for
performing a service which may
support fee increases.
Keeping Your Hometown Healthy
Arkansas Department of Health
Direct Costs vs. Indirect
Costs

Direct Cost
Direct Costs are those costs directly related to
the principal activity of the business.
 Ex. – Costs needed to directly operate a program
and the labor costs associated with the work
performed to complete the program
objectives.
Keeping Your Hometown Healthy
Arkansas Department of Health
Direct Costs vs. Indirect
Costs (cont’d)

Indirect Cost
Indirect Costs represent the costs of doing
business that are not readily identified with a
particular grant, contract, project function or
activity, but are necessary for the general
operation of the organization and the
conduct of activities it performs.
Keeping Your Hometown Healthy
Arkansas Department of Health
Direct Costs vs. Indirect
Costs (cont’d)

Indirect Cost Examples:
 Salaries and Benefits of . . .
 Office of Administration Staff including,
 Finance and IT,
 Utilities,
 T1 lines for Internet connection, etc.
Keeping Your Hometown Healthy
Arkansas Department of Health
Entering Leave for Your
Employees

As a supervisor, you have the ability to
enter leave time for employees under your
supervision.

This is a function that should only be used
when an employee is on extended leave
who is unable to enter their own time
within the 4 week time frame
available.
Keeping Your Hometown Healthy
Arkansas Department of Health
Entering Leave for Your
Employees

Instructions on how
to enter leave time
for your employees
can be found on
the CATMAn
Intranet site.
Keeping Your Hometown Healthy
Arkansas Department of Health
Reports Available for Review

Each center has access to CATMAn
information located in Business Objects
that can be used to monitor how its
employee’s activity is being allocated.
 Business
Objects is a database reporting
program that allows ADH to combine multiple
information sources for reporting
purposes.
Keeping Your Hometown Healthy
Arkansas Department of Health
Reports Available for Review

The Cost Allocation Section will provide quarterly
reports that compare CATMAn data to AASIS
expense data as well as budget data.
Keeping Your Hometown Healthy
Arkansas Department of Health
Resources Available

The CATMAn
intranet site has
multiple tools
available to assist
you.