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DATE: May 12, 2003
TO: Agency Addressed (No. 11, 2002-2003)
FROM: Douglas A. Darling, Director
Division of Accounting & Auditing
Department of Financial Services
SUBJECT: Fiscal Year Closeout

The following dates and times have been established for processing transactions affecting the 2002-03 fiscal year.

All times are Eastern Daylight Savings Time.

PAYROLLS

All payrolls and related transactions submitted in accordance with your Agency payroll calendar for June 2003 will be processed as 2002-03 transactions. Please note the supplemental payroll scheduled to process on June 30, 2003 is canceled. It will be rescheduled the first week of July and posted in FY 2003-04. The Bureau of State Payrolls will send out a memorandum to all agencies once the new date is determined.

All negative balances must be cleared by the close of business June 30, 2003. Agencies must input their data into Departmental Accounting by the close of business on June 26, 2003 in order for the voucher to be posted on June 30, 2003. Agencies that have negative balances on June 30, 2003, and no vouchers pending, must provide the Bureau of State Payrolls with one account code so that these balances can be cleared. We will be unable to post to multiple accounts.

We strongly recommend that agencies closely monitor account balances in order to avoid delays in paying employees at the end of the fiscal year.

ON-DEMAND PAYROLLS

Any transactions entered and approved by 5:00 P.M. on June 30, 2003 will be processed as fiscal year 2002-03 disbursements.

CLASS C PAYROLLS

We await the outcome of the 2003 Legislative Session regarding Class C Travel. Last fiscal year, the Implementing Bill for fiscal year 2002-03 General Appropriations Act prohibited the reimbursement for Class C travel.

YEAR-END BONUSES

Agencies may submit year-end bonus payments through either COPES/new HR System or the PC Payment System on any of the following payrolls:

Processing Date Payroll Type Warrant Date
5/30/2003 Awards Payroll* 6/04/2003
6/03/2003 Supplemental Payroll 6/09/2003
6/04/2003 Awards Payroll* 6/09/2003
6/09/2003 Biweekly Payroll 6/13/2003
6/11/2003 Awards Payroll* 6/16/2003
6/17/2003 Supplemental Payroll 6/23/2003
6/18/2003 Awards Payroll* 6/23/2003
6/20/2003 Monthly Payroll 6/30/2003
6/23/2003 Biweekly Payroll 6/27/2003
6/25/2003 Awards Payroll* 6/30/2003

* The Awards Payroll is a warrant only payroll and will not generate EFT payments.

Please see Agency Addressed Memorandum DFSBP 03-01 dated April 14, 2003, for year-end bonus information and processing instructions.

CASH DISBURSEMENTS

1. Vouchers presented to the Bureau of Auditing for payment by 5:00 P.M. June 30, 2003 will be processed as 2002-03 disbursements.

2. Disbursement transactions below the voucher audit threshold must be input into Departmental FLAIR by 6:00 P.M. June 27, in order to be processed as 2002-03 disbursements.

3. Vouchers input into Departmental FLAIR on or before June 27, but not delivered to the Bureau of Auditing by 5:00 P.M. June 30 will be deleted from the Department of Financial Services' pre-audit file. These vouchers will have to be corrected in FLAIR and resubmitted as 2003-04 vouchers.

4. Departmental FLAIR will not process disbursement trans-actions entered on June 30. Departmental FLAIR will generate a Transaction 58 for all vouchers producing disbursements. Consequently, all disbursement transactions including purchasing card and invoice tracking entered into Departmental FLAIR on June 30 will return to approval level 008. FLAIR will purge the voucher print file on the night of June 30 to ensure that no vouchers will print on July 1, 2003.

5. Batch disbursement transactions processed through Departmental FLAIR must be presented to the Bureau of Production Control by 1:00 P.M. Friday, June 27 in order for the resulting voucher schedules to be available for printing on the morning of June 30. Batch transactions processed on file transfers by the State University System (SUS) must be received by FLAIR on the night of June 26 in order for the vouchers to be available for printing on June 30.

6. Expense tape batch input into the Central Accounting System must be delivered to the Bureau of Production Control by 1:00 P.M. June 30, 2003. The Bureau of Auditing must receive the supporting documentation by 5:00 P.M. on the same day.

7. No SUS accounting file transfers will be accepted on the night of June 30, 2003. FLAIR will accept only Property update transfers the night of June 30.

CASH RECEIPTS

1. The Treasury will receive bank deposit slips that have been validated by 2:00 P.M. June 30 via facsimile or hand delivery until 5:00 P.M. June 30. These will be processed if the Treasury receives a confirmation and the deposit is entered into a “T” status in FLAIR prior to 5:00 P.M. June 30. At 5:00 P.M. June 30, unverified receipts on the Treasury's file will be rejected (placed in “R” status) and returned to the agencies by the Treasury. On the night of June 30, Departmental FLAIR will purge all outstanding cash receipts records from the cash receipts file. FLAIR will produce a report for each agency that had outstanding records purged. Agencies need to make correcting entries in Departmental FLAIR for all records purged from the cash receipts file.

2. Cash receipts may be input on June 30, transmitted to the Treasury, and verified on June 30. Supporting documentation that is validated by 2:00 P.M. June 30 must be delivered to the Treasury by 5:00 P.M. June 30 in order for the deposit to be posted to fiscal year 2002-03. The Treasury must be able to read the bank validation on the deposit slips.

3. Those agencies depositing through the Treasury's concentration system must deliver a bank validated deposit slip on deposits made before 2:00 P.M. June 30 to the Treasury by 5:00 P.M. June 30. Except for wire transfers, the Treasury will not accept deposits made after 2:00 P.M. June 30 for fiscal year 2002-03.

4. Cash receipt transactions for current year refunds must be verified by the Treasury no later that 3:00 P.M., June 26. The resulting JT-2 will then be available for printing on June 27 and should be delivered to the Bureau of Auditing by 5:00 P.M., June 30. Expense refunds verified by the Treasury on June 30 will remain in the Refund account (001800).

5. Cash refunds in Clearing Accounts must be cleared to the Treasury by the close of business on June 26 in order to be transferred to the Treasury and verified on June 27. Expense refunds cleared from Clearing Accounts after this time will remain in the Refund account (001800)

6. Agencies should review all uncleared Clearing Fund deposits by requesting the Immediate Detail of Clearing Funds Deposits report through the CP function. A report of Clearing Funds not cleared is also available in the standard logon.

7. The Treasury's last day of processing debit memorandums for returned checks for agencies will be on June 25 for fiscal year 2002-03. The Treasury's last day of processing debit memorandums for returned EFT transactions will be on June 30 for fiscal year 2002-03.

WARRANT/EFT CANCELLATIONS

1. Warrants cancelled by the agencies using the on-line cancellation system must be added and approved by 5:00 P.M. June 30.

2. Warrants to be cancelled by the Reconciliation Section must be received and entered into the system by 5:00 P.M. June 30.

3. Note: cancellations for payroll warrants are performed by the agencies and must be and approved online by 5:00 P.M. June 30.

4. EFT's marked for deletion by 11:00 A.M. Thursday, June 26 will be restored to agency accounts in June 2003.

5. Agencies should review their accounts to ensure the appropriate prior year cancellation revenue category code, 003700, has been established.

REFUND OF OVERPAYMENT OF SALARY

Any refund of overpayment of salary approved by entering the deposit number online by 5:00 P.M. June 30 will be processed in fiscal year 2002-03. Refer to the Payroll Preparation Manual, Volume V, Section 6,at http://www.dbf.state.fl.us/bosp/bsp.html.

SETTLEMENT VOUCHERS

Proposed or provisional settlement agreements must be received by the Bureau of Auditing, Room 434P, Fletcher Building, or the Bureau of State Payrolls, Room 364, Fletcher Building, no later than 5:00 P.M. June 16. Previously approved, proposed or provisional settlement agreements, attached to payment vouchers received by the Bureau of Auditing by 5:00 P.M. June 30 will be processed as 2002-03 disbursements.

Timely resolution of settlement agreements is encouraged and recommended; however, settlement agreements must be submitted with sufficient detail and in a form sufficient to enable a prompt pre-audit. Those settlement agreements with voluminous detail that may hinder timely processing of other settlement agreements should be considered for processing as Certified Forward items.

All settlement agreement payment vouchers not meeting the requirements of the Reference Guide for State Expenditures, page S-1, or the Payroll Preparation Manual, Volume IV, Section 13, will be returned for rescheduling as charges against FY 2003-04 appropriations or certifications forward.

Any questions relating to this process and/or documentation requirements should be directed to the Bureau of Auditing or the Bureau of State Payrolls.

STATEWIDE FINANCIAL STATEMENTS

Attached is a 2003 fiscal year closing schedule by agency for statewide financial statements. Prior to closing, each agency is required to perform the following tasks:

1. Review each trial balance to ensure that it is in balance. Actual accounts (General Ledger Codes 1XXXX through 7XXXX) must balance separately from budgetary accounts (General Ledger Codes 8XXXX and 9XXXXX).

2. Ensure operating transfers and federal transfers as well as due to/due from within your agency are in balance. Also, agencies should make an effort to confirm transfers to/from other agencies and due to/due from other agencies.

3. Review your trial balance to ensure cash balances agree with those reported in Central Accounting and investment balances in the State Treasury agree with those reported by the State Treasury.

4. Review each trial balance to ensure that the general ledger codes used are appropriate for the particular Statewide GAAFR and for financial statements. For a list of valid general ledger codes by Statewide GAAFR, access the Statewide Financial Reporting website at: http://www.dbf.state.fl.us/aadir/statewide_financial_reporting/index.htm.

5. Review each trial balance for atypical balances and make corrections as necessary.

6. Review each trial balance to ensure that the amounts recorded as fund balance (General Ledger Codes 549XX and 55XXX) or net assets (General Ledger Codes 535XX through 539XX) equal to last year's ending audited fund balance or net assets amount. Last year's ending audited balances can be confirmed using report AGNCYBS previously sent to your statewide financial statement contact.

7. Review each trial balance to ensure that all revenues (General Ledger Codes 6XXXX)in your agency's general revenue funds (State Fund 1) have been closed out to Collections, General Revenue (General Ledger Code 546XX).

8. At least the day before closing, ensure that depreciation has been run for all capital assets in the property subsystem. We recommend that you run simulated depreciation prior to running the actual depreciation in order to identify and correct errors. Agencies that choose to depreciate their capital assets using a method different from the straight-line method or using a system other than FLAIR are responsible for providing the Statewide Financial Reporting Section with the correctly calculated depreciation amounts for financial statements.

9. The Statewide Financial Statements Capital Asset Policy, effective July 1, 2001, requires all infrastructure assets acquired (purchased, constructed, or donated after this date) that meet the threshold for capitalization, must be capitalized and depreciated for financial statement purposes. In addition, all major general infrastructure assets acquired or receiving major renovations, restorations, or improvements after June 30, 1980 should be retroactively recorded by June 30, 2003. To review the capital asset policy, access: http://www.fldfs.state.fl.us/aadir/statewide_financial_reporting/capassets.html.

Closing reports will be sent out to agencies subsequent to closing. These reports should be reviewed, and any required adjustments should be submitted to the Statewide Financial Reporting Section within 10 days after receipt.

Except for Form P4 (Subsequent Events), all statewide financial statement forms are due to the Statewide Financial Reporting Section 10 days after closing. Form P4 is due December 15, 2003. All audited financial statements and statewide financial statement forms pertaining to component units are due September 30, 2003. If the component unit audit or forms are not available by the due date, the agency must contact the Statewide Financial Reporting Section with an expected availability date.

Additional closing instructions will be sent to agency statewide financial statement contact.

OTHER ITEMS

1. Because of the heavy workload experienced at year-end, it is our intent to not accept manually prepared vouchers. Requests for exceptions should be directed to the appropriate Bureau Chief. Your cooperation in minimizing these exception requests will help us close out the fiscal year in a timely manner.

2. All old negative balances should be cleared no later than June 20.

3. All functions of FLAIR will be operational for the entire day on June 30 except as noted in the above paragraphs. FLAIR will purge the voucher print file on the night of June 30 to ensure that no vouchers will print on July 1, 2003.

4. Statewide document numbers will be reset to begin with number x4000000001 on July 1, where x denotes the data base on which the number is used. The number in the first position is incremented each year to avoid duplication of statewide document numbers across fiscal years.

5. Departmental FLAIR will be available on Saturday, June 21, and Saturday, June 28, 2003. However, all work will be processed as Monday input. Please be aware any work processed on Saturday, June 28, will be treated as work for the 2003-2004 fiscal year.

6. Special Instructions for the five Universities transitioning off FLAIR on 7/1/03: the processing deadline for specific transactions set forth in the approved Transition Plan approved should be followed. Any questions concerning this transitioning process should be directed to the University's designated DFS Transition Coordinator.

CERTIFICATION FORWARD AT JUNE 30, 2002

No changes are known for the Certifications Forward process on June 30, 2003. Below is a summary of the Certification Forward information:

1. As was done in prior years, the CFI (Certified Forward at June 30, 2002) and NCFI (Certified Forward at June 30, 2003) fields will be available in FLAIR. Certifications forward at June 30, 2003 will be processed based on the NCFI. All items marked for certification on or before June 30, 2003 will effectively be marked in both the CFI and NCFI. FLAIR will read all subsidiaries on the night of June 30, 2003 and set the NCFI to a blank.

2. At the agency's request, FLAIR will reset the NCFI-C on all non-FCO state fund items (except those in SF-8) on the accounts payable and/or encumbrances subsidiaries at 6:00 P.M. June 30, 2003 for certifications forward. Agencies must “unmark” those items not to be certified. Receivables and memo encumbrances with no vendor will not be automatically marked.

Agencies should request automatic marking of subsidiary files in writing by Monday, June 2, 2003. Letters should identify which subsidiaries should be marked. Mail requests to:

Mr. Herb Fillyaw
Division of Information Systems
101 E. Gaines Street
Fletcher Building
Tallahassee, FL 32399-0350

No subsidiaries will be marked for requests received after June 9, and telephone requests will not be honored. The letter should also include a request for FLAIR to create an FCO Certifications Forward file from your Projected Information file records. Otherwise, these records will have to be built manually as part of the FCO Certification process. FCO Certification records from last year have been purged from the file and are not available for update.

3. For those agencies not using the FLAIR automated marking, certifications forward may be manually marked in one of the following ways:

a. Enter the “C” on the appropriate 60, 80, or 90 trans-action (NOT 6S, 8S, or 9S subsidiary updates) as part of the original input. Use this method only after June 30, 2003 because FLAIR will reset the NCFI to a blank on that night and any markings prior to that action will be lost. After June 30, transactions 60, 80, or 90 that carry a “C” will update NCFI (Certification Forward at June 30, 2002) regardless of PPI. However, to record the balance as of June 30, 2003, the appropriate PPI must be entered.

b. Call up the items on subsidiary inquiry/update screens and update them with a blank PPI to carry the “C” in a single update mode. Subsidiary inquiry screens will show both the CFI and NCFI fields.

c. Call up the items on the 1S-X screen and update them to carry the “C” and the date received for accounts payable in a multiple update mode. 1S-X may be used only for items that have no 2002-03 activity.

4. To “unmark” items that will not be certified forward, the item should be retrieved using the appropriate subsidiary update with a Blank PPI, or the IS-X screen (if there has been no current year activity), and erase the “C” in the CF field. This will remove the “C” from the NCFI.

5. Memo Accounts Receivable and Memo Encumbrances without Vendors may not be marked for certifications forward.

6. NCFI will be retrieved from the appropriate subsidiary Payment/Receipt in 2002-03, but may be overridden before processing.

7. As was done last year, Fixed Capital Outlay will be certified forward through the FLAIR Certified Forward system. Consult the EOG, Office of Policy and Budget for instructions in this area. In keeping with the policy of prior years, no FCO accounts will carry a certified forward indicator, but instead, will utilize the year indicator to identify appropriations to a specific year.

8. Certified forward processing must run before you close the fiscal year and cannot be run on the night of your year-end closing. This process is requested through the PE function. Certified forward information will be transferred to EOG upon request to the FLAIR Help Desk.

Requests must be called into the Help Desk by 2:00 P.M. on the day that you wish the transfer to occur. Only subsidiary records with positive balances will be processed and reflected on the certified forward reports. The certified forward processing and EOG transfers are separate, independent processes and must be scheduled/requested as such. If you close the year without first completing the certified forward processing, the transaction 07s to record GLs 122xx, 131xx, 134xx, 911xx, and 931xx will not be recorded.

9. You do not have to run certified forward processing before you pay items to be certified. The prior year, or June 30, 2002, subsidiary file balances are utilized for certified forward processing, but the current year on-line subsidiary function continues with updates to current year balances. Records with prior year balances will not be purged while you are in dual-year processing.

SUMMARY

Each agency can assist with closing the 2002-03 fiscal year in the following manner:

1. Make every effort to submit all your vouchers to the Bureau of Auditing by Friday, June 20.

2. Carefully check cash and appropriation balances in all accounts to ensure that sufficient amounts are available. This will eliminate delays or rejections of payments due to funds shortages.

3. Agencies using selected operating accounts for consolidating salary payments must adjust these accounts to reflect the correct salary disbursements before the close of the fiscal year. Transfers of salary charges must be made to the applicable accounts to eliminate year-to-date negative disbursement balances.

4. Carefully review year-to-date balances in all accounts to ensure that appropriations are not over-expended and that atypical balances do not exist. Generally, accounts must not be closed out showing atypical year-to-date balances.

5. For additional information, please contact the following:

Bureau of Accounting 410-9951, SC 210-9951
Bureau of Auditing 410-9194, SC 210-9194
Bureau of State Payrolls 410-9416, SC 210-9416

Your assistance and cooperation are appreciated.
Attachment


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