FLAIR Financial Reporting
Overview
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Month-end and Year-end Closing
Central and Departmental FLAIR
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Closing
• Closing allows for a snapshot of account
balances at a point in time which reflects the
results of financial activities recorded during the
period covered.
• Central FLAIR and Departmental FLAIR process
month-end closing and fiscal year-end closing
separately.
• The State’s fiscal year runs from July 1 to June
30.
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Month-end Closing – Central FLAIR
• Month-end closing for Central FLAIR occurs
on the last workday of the month and is
performed by FLAIR systematically.
• The Master Balance File (State’s checkbook)
is updated with results of financial activities
occurred during the preceding month.
• FLAIR reports are generated as a result of
month-end closing and made available to
agencies primarily for reconciliation
purposes.
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Month-end Closing – Departmental FLAIR
• All agencies must close the previous month in
Departmental FLAIR by the 15th of the
following month.
• Agencies can schedule their month-end
closing anytime between the last day of the
month and the 15th of the following month.
Otherwise, the CFO will schedule it for the
15th of the following month.
• Agencies can update/adjust records for the
month until month-end closing.
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Year-end Closing - Central FLAIR
• Central FLAIR goes through 2 year-end closings:
▫ Preliminary closing – 2 workdays after the end of
the fiscal year
▫ Final closing – generally 2 weeks after preliminary
closing
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Year-end Closing – Central FLAIR
• Central FLAIR continues processing as of June 30th
for 2-4 workdays after year-end to primarily allow
for:
▫ Processing vouchers for the old fiscal year.
▫ Resolving atypical account balances for cash,
appropriated budget, and unexpended released
appropriations.
• During the 2-4 workdays, records generated in
Departmental FLAIR for the new fiscal year are held
from processing in Central FLAIR.
• After the 2-4 workdays, the month-end closing for
June is run. This closing is referred to as the
preliminary closing of the old fiscal year.
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Year-end Closing – Central FLAIR
• Subsequent to preliminary closing, Central FLAIR
locks access to the system and runs opening entries
and first nightly processing the following day. Upon
completion, the system is opened up to receive daily
input. Then Central FLAIR begins running dual
year processing.
• Opening entries primarily include loading of
appropriation files from the Executive Office of the
Governor (EOG) into FLAIR.
• First nightly processing primarily includes the
catching up of processing records generated in
Departmental FLAIR for the first 2-4 workdays of
the new fiscal year that were put on hold.
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Year-end Closing – Central FLAIR
• Dual year processing continues until final
closing primarily to allow for the completion of
the supplemental receipts process.
Supplemental receipts are tax revenues
postmarked by June 30 but received by the State
after June 30.
• Final closing of the fiscal year for Central FLAIR
is generally scheduled for mid-July.
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Year-end Closing – Departmental FLAIR
• Year-end closing for Departmental FLAIR
generally takes place in August. Each agency
is closed separately over the course of 2
weeks.
• Between June 30 and an agency’s closing date
(dual-year processing), the agency has the
ability to adjust and update records for the
old fiscal year using a prior period indicator.
That ability ceases after closing.
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Year-end Closing – Departmental FLAIR
• During closing for Departmental FLAIR,
agencies’ general ledger nominal accounts are
closed into fund equity and real accounts are
rolled to the next fiscal year.
• As the system closes each agency, a copy of the
general ledger account balances is transmitted to
the Statewide Financial Statements subsystem
within FLAIR for CAFR preparation.
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CAFR Preparation
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Reference and Authority
• Section 216.102, Florida Statutes, requires the CFO
to prepare the State’s Comprehensive Annual
Financial Report (CAFR) and requires agencies to
file financial information with the CFO in
accordance with generally accepted accounting
principles (GAAP).
• To comply with GAAP, the CFO follows standards
established by the Governmental Accounting
Standards Board (GASB).
• The State Auditor General’s Office audits the CAFR.
• Statutes require the CFO to prepare and furnish to
the Auditor General annual financial statements of
the State by December 31 and to publish the CAFR
by February 28.
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Overall Process
• All state agencies go through Departmental FLAIR
year-end closing in August. The closing process
includes transmitting the agencies’ general ledger
account balances to the Statewide Financial
Statements (SWFS) subsystem in FLAIR.
• Post-closing adjustments to update or correct data
are processed by CAFR staff in the SWFS subsystem.
• Data is downloaded from the SWFS subsystem and
used to prepare financial statements.
• Other information is gathered from external sources
to compile the CAFR.
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SWFS Subsystem
• The SWFS Subsystems houses 3 files:
▫ Statewide Master File – contains general
ledger balances at the fund level (OLO-GAAFR
Fund-SF-FID)
▫ Statewide Funds File – contains all valid funds
(OLO-GAAFR Fund-SF-FID) for the CAFR and
their corresponding accounting fund types and
reporting classifications
▫ Adjustment File – contains all post-closing
adjustments processed by CAFR staff
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SWFS Subsystem
• The SWFS subsystem in FLAIR is separate from
Departmental and Central FLAIR and can only be
accessed by CAFR staff.
• Post-closing adjustments are manually input by
CAFR staff and only affect balances retained in the
SWFS subsystem.
• Data in the SWFS subsystem is transmitted
routinely to the Auditor General’s Office during
CAFR preparation process.
• Audited data is provided to agencies via reports
subsequent to the completion of CAFR for agencies
to manually adjust agency records as applicable.
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Post-closing Adjustment Statistics
Number of post-closing adjustments
3000
2500
2650
2522
2211
2197
2000
1731
1500
1000
All Post-closing
Adjustments
Auditor General
Adjustments
500
0
50
74
45
46
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FY 08
FY 09
FY 10
FY 11
FY 12
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CAFR Compilation
• The primary source of data for financial
statements in the CAFR is the Statewide Master
File from the SWFS subsystem.
• The general ledger account balances by fund
(OLO-GAAFR Fund-SF-FID) are rolled-up and
classified by the following accounting fund types
for presentation:
▫ Governmental Funds
▫ Proprietary Funds
▫ Fiduciary Funds
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CAFR Compilation
• General ledger account balances for each
accounting fund type are further classified by the
State’s major functions and programs. For
example, governmental funds include:
▫
▫
▫
▫
▫
General Fund
Environment, Recreation and Conservation
Public Education
Health and Family Services
Transportation
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CAFR Compilation
• General ledger account balances in the Statewide
Master File are downloaded from FLAIR to
Microsoft Access for roll-up and classification.
• Summarized data is then exported to Microsoft
Excel in which financial statements are
prepared.
• Microsoft Word is used to prepare notes to the
financial statements along with other written
documents required for the CAFR.
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CAFR Compilation
• Information for note disclosure is primarily
gathered through Microsoft Access and Excel
forms completed by agencies outside of FLAIR.
• Forms are also used for reconciliation purposes
such as the reconciliation of interfund balances
and transfers (between agencies or between
funds within an agency).
• Some external reports (e.g. actuarial reports) are
used for recording and verification purposes.
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CAFR Tasks Performed by Agencies
• Reconcile, update, and support general ledger
balances to ensure accuracy and completeness.
• Record accruals (receivables and payables).
• Ensure depreciation is calculated correctly.
▫ FLAIR property subsystem calculates and records
depreciation after agency initiates depreciation run.
• Complete forms for note disclosure and interfund
balances and transfers.
• Obtain and review external reports and additional
information needed for the CAFR.
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Tasks Performed by CAFR Staff
• Reconcile certain general ledger accounts (e.g. cash,
investments).
• Reconcile interfund balances and transfers.
• Record statewide entries (e.g. fair market value
adjustments for investments, General Revenue
transactions).
• Review and summarize forms and other information
submitted by agencies.
• Prepare financial statements, required schedules,
and note disclosures.
• Assemble and publish CAFR.
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Component Units
• Component units are legally separate organizations
for which the elected officials of the State are
financially accountable. These organizations are
required by accounting standards to be reported in
the CAFR.
• State has over 90 component units including state
universities, colleges, and water management
districts.
• Each component unit is required to submit its
financial statements to the CFO by September 30.
• Component unit data is manually input into FLAIR
by agencies or CAFR staff. Note disclosure
information is obtained via Excel forms.
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Year-end/CAFR Timeline
June 30
July
• Fiscal Year-end
• Central FLAIR Year-end Closing
• Carried Forward/Certified Forward
Process
August
• Departmental FLAIR Year-end Closing
September December
• Major CAFR Tasks Performed
• Draft Financial Statements Due to
Auditor General by 12/31 per Statutes
January February
• CAFR Publication by 2/28 per Statutes
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Challenges
• CAFR compilation process is generally manual and
performed outside of FLAIR.
• Interfund balances and transfers between agencies
are reconciled outside of FLAIR and generally only
at year-end for CAFR purposes.
• Post-closing adjustments are prepared on paper
and do not automatically update agency FLAIR
records thus requiring agencies to record adjusting
entries as applicable in the subsequent fiscal year.
• Information obtained from external sources (e.g.
component unit financial statements, actuarial
reports) is not always available in a timely manner
and often presents reconciliation issues.
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