1
Treasury and Revenue
Management
(TR / AR)
October 2013
References / Authority
• Florida Constitution
►
►
Article IV, Section 4(c), the chief financial officer shall
serve as the chief fiscal officer of the state, and shall settle
and approve accounts against the state, and shall keep all
state funds and securities.
Article VII, Section 10, prohibits the State, a political
subdivision, or agency from giving credit to aid any
corporation or person. In Attorney General Opinion 84036, the limitation of extending credit is restricted to
nongovernmental entities.
2
References / Authority
• Florida Statutes
►
►
Section 116.01 directs that every state officer collecting funds
due the state shall pay into the state treasury within seven
working days from the close of the week in which the officer
received the funds.
Section 215.31 directs that
 Revenue collected or received under the authority of the
laws of the state by every state official, agency, or by the
judicial branch shall be promptly deposited in the State
Treasury,
 The deposit shall be immediately credited to the
appropriate fund,
 The deposit shall be properly accounted for by the
Department (DFS) as to source,
 And no money shall be paid from the State Treasury
except as appropriated.
3
References / Authority
• Florida Statutes, cont’d
►
Section 215.32 provides that all moneys received by the
state shall be deposited in the State Treasury unless
specifically provided otherwise by law and shall be
deposited in and accounted for by the Chief Financial
Officer within the following funds, which funds are hereby
created and established:
(a) General Revenue Fund
(b) Trust funds
(c) Budget Stabilization Fund.
4
Financial Subsystems functionality
• When the systems that became FLAIR and CMS were
authorized (Ch. 80-45, Laws of Florida):
►
►
Responsibilities for the Comptroller included
departmental and central accounting and reporting, cost
accounting, and warrant preparation.
Responsibilities for the Treasurer included maintaining
treasury bank and fund accounts, and the investment of
idle cash.
• Enterprise system functionality to support the revenue
cycle occurring prior to deposit (billing – AR –
receipting / payment application – delinquent
accounts) was not emphasized and was limited to the
accounting for these activities.
5
Agency Receipts
• Most agencies have developed specific purpose
business systems that incorporate the missing
enterprise financial system functionality needed for the
collection of State revenues.
• These business systems have been designed to provide
agencies with:
►
►
The reason(s) funds are received,
 Who is paying,
 How much is paid,
 For what purpose
Operating efficiencies or interfaces, i.e., with electronic
card service providers, not available in FLAIR.
6
Agency Receipts
• Agencies record bank deposit receipts in Departmental FLAIR
by:
► Direct Deposit Receipts (TR30)– predominant method
used to account for deposits made to the Treasurer’s
Concentration account. Payer information is optional;
allows receipts to be summarized at level of revenue
account code rather than payer detail
► Accounts Receivable Deposits (TR33)– uses an
Accounts Receivable subsidiary ledger to manage receipts
to the Treasurer’s Concentration account that are
associated to an open account
► Clearing Fund Deposits – agencies make deposits
(direct (TR31) or receivables(TR34)) to a local financial
institution, records the receipts in FLAIR, and then
periodically remit a single payment to be deposited into the
Treasury.
7
Agency Receipts
• Funds already within Treasury
►
Journal Transfer Receipts – to account for receipts to a
fund by means of an accounting transfer within the
Treasury (direct (TR96) or receivables(TR97)) for goods
and services provided and used with other state entities or
cash transfers between funds. Account balances are
modified within Treasury without cash being withdrawn.
• Agencies may record deposit entries and journals into
FLAIR by direct input or batch file interface.
8
Accounts Receivable In FLAIR
• AR Subsidiary Ledger allows an agency to record
receivables to an entity
• Identification of the entity/payer is required.
►
►
►
AR Customer ID from the AR Customer File. AR
Customer records may not be used in a disbursement
transaction
FEIN or SSN from the Vendor Statewide (VS) or Vendor
Employee (VE) files
A FLAIR code when recording a receivable due from
another fund within the Agency or due from another
Agency
• Only a few agencies routinely use the AR subsidiary
function.
9
Revenue to Revenue Journals
• This transaction allows revenue accounts to be
reclassified within the same organization and Fund, or
with another organization or Funds.
• Performed through a Transfer function in FLAIR, it
provides for:
►
►
►
►
An efficient distribution of revenue to other accounts
Correcting deposits that have been completed and posted
to state accounts
Allows for Allocating revenue across multiple coding
structures and
Eliminates the need for zero Treasury Receipts -recording offsetting credit and debit entry deposits.
10
10
Revenue to Revenue Journals, (Continued)
• The sender (agency) and receiver (agency) must accept
and complete their segment of the transaction before it
is recorded to Departmental and posted to Central
accounting.
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11
Debt Collections
• Responsibilities
►
►
►
Each agency shall be responsible for exercising due diligence in
securing full payment of all accounts receivable and other
claims due the state. Examples:
 Benefit overpayments (food or cash assistance, Medicaid)
 DEO reemployment assistance overpayment
 DFS workers’ compensation penalties and late fees
 DOR delinquent taxes and penalties
 DJJ delinquent cost of care
If not paid in 120 days and agency does not have independent
collections authority, agency to report unpaid items to CFO
contracted collection agency for further action
Section 17.20, F.S.
12
Debt Collections
• Reporting
►
►
►
Each agency with delinquent accounts receivable will
report annually to Legislature and CFO, providing
information on accounts referred to collection agents, not
referred to collection agents, and accounts written off or
waived.
CFO will report annually to Governor and Legislature,
providing information for any contracted collection agent,
delinquent agency reporting, and claims collected.
Section 17.20, F.S.
13
Debt Collections
• The CFO is responsible for approving agency requests
for the write-off of uncollectible debts.
• Other than the FLAIR accounts receivable subsidiary
ledger, system functionality for management of
delinquent accounts receivables and debt collections
has been left to agencies to provide.
14
15
Treasury
and Cash Management
Project Implementation
References / Authority
• Constitution
►
Article IV, Section 4(c) - the Chief Financial Officer shall
serve as the chief fiscal officer of the state, and shall
settle and approve accounts against the state, and shall
keep all state funds and securities.
• Florida Statutes
►
Section 17.54 directs the CFO to make an annual report
of transactions including fund receipts and payments to
the Governor.
16
16
References / Authority
• Florida Statutes, cont’d.
►
►
►
Section 17.55 directs the CFO to make all records available
for inspection by the Governor and to prepare a monthly
trial balance to include credits, moneys, or effects on hand
including funds, credits, securities and cash on hand.
Section 17.555 directs the CFO to keep a record of paid
warrants and account for state funds and securities.
Section 17.57 directs the CFO to place money in the Treasury
not needed for liquidity in Qualified Public Depositories at
rates not less than US Treasury securities with a
corresponding maturity. Money not desired by Qualified
Public Depositories is authorized to be placed in a statutorily
provided list of fixed income securities.
17
17
References / Authority
• Florida Statutes, cont’d.
►
►
►
Subsection 17.57(6) designates the CFO to be the cash
management officer for the state government and to
supervise all banking relationships.
Section 17.58 authorizes the CFO to approve and
administer clearing accounts and revolving accounts
outside the Treasury.
Section 17.61 authorizes the CFO to invest funds for any
statutorily created entity. Listed agencies and trust
funds are permitted to be invested by the Treasury and
accrue interest revenues. An investment fee of 12 basis
points is to be charged for the investment of funds made
available under this section and 20 a basis points fee for
investments made in a separate account
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18
References / Authority
• Florida Statutes, cont’d.
►
Section 215.322 establishes the CFO as the
administrator of credit card and debit card acceptance
programs.
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20
Florida State Government Banking
Structure
Unique Need Bank
Accounts
Treasury
Electronic Receipts
processed by DOR
Over the Counter &
Electronic Receipts
Credit Card Receipts
Various Banks
Clearing Accounts
Bank of America
Bank of America
Bank of America
Warrant Paying
Warrant Paying
Unemployment
Compensation
Unemployment Trust
Fund
Wells Fargo Banks
Wells Fargo Banks
U.S. Treasury
Various Banks
Revolving Accounts
Internal Investments
Custody
Special Purpose
Investment
Account
Bank of New York
Mellon
Bank of New York
Mellon
External Investments
Custody
Bank of New York
Mellon
Various Banks
Consolidated
Revolving Account
Treasury Operated
Wells Fargo Banks
Division Of Treasury
Cash Management System
• Cash Management
►
►
►
Deposit Concentration Account
Cash Management Improvement Act (CMIA)
Consolidated Revolving Account
• Investment Management
►
►
Treasury Investment Pool
Special Purpose Investment Account
• Accounting Management
►
►
►
Accounts Reconciliation
Warrant / EFT Payment Account Reporting
CD Investments
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21
Treasury Applications
• 11 Applications
►
►
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Archives
Disinvestments
CMS
Consolidated Revolving
State Accounts
Certificate of Deposits
Investment Accounting
Fund Accounting
Bank Accounts
Special Purpose Investments
Warrants
• Interfaces with:
►
►
►
►
Bank of America
Wells Fargo
FLAIR
State Agencies
22
Treasury Web Site
• Websphere Application Server
• External Transactional Applications
►
►
►
►
Trust Funds
SPIA
CD
Cash Management
• Informational
• Java Server Side processing
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23
Cash Management Role
•
•
•
•
•
•
Supervise all banking relationships
Operate deposit concentration system
Operate central, single account, revolving account
Administer credit & debit card programs
Administer clearing account program
Perform cash management consultations
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24
Treasury Cash Management
• Cash Receipts and Deposits
►
►
Treasury maintains a single depository bank account
(concentration account) for agencies to make deposits
to the State Treasury consisting of 608 sub-accounts
using deposit slips containing unique account
identifiers.
Cash Management supports the operation of a statewide concentration bank account structure to include
automated matching of deposits received at the
financial institution to FLAIR entries recorded by
agencies, and the automated processing of returned
items.
25
25
Concentration Bank Account
“One” Account Feature
Activity & Balance
Reporting (Current,
Previous, and BAI)
Chief Financial Officer
of Florida
Master Concentration
Account
ACH/ Credit Card/ Check Returns
Funded via Zero Balance Account
Chief Financial
Officer of Florida
Credit Card
Payments
Wires
ACH
Chief Financial
Officer of Florida
EFT Account
State Agency’s
Accounts
(sub accounts)
Cash Letter (ICL) /
Image Check Deposits
Remote Deposit Service
(RDS) / Check Deposits
Over the Counter (OTC) /
Check Deposits
26
26
Cash Management System - Treasury
Concentration Account:
Daily Bank Transaction Files
• Data files are received electronically via FTP from the
Treasury concentration bank, parsed and loaded to
the Treasury Cash Management System (CMS) daily
via the following data file types:
►
►
►
►
BAI
Addenda
ACH, Credit Card and Paper Returns
Images of Paper Returns in TIF format
• Incoming real-time wire transfer information is
accessed through financial institution's on-line web
portal
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27
Cash Management System -Treasury
Concentration Account:
Daily Bank Transaction Files
(continued)
• Account inquiry through website provides
information for investment availability or
disbursement funding
• In on-line or system process, deposits made are
matched to agency records.
• Treasury sends “verified” deposit information to
Central FLAIR, thus increasing the State’s cash
balances and making it available to spend.
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28
Department Of Revenue Receipts
• DOR collects receipts for a number of state agencies
• The agencies provide accounting information (i.e.,
organization, expansion option, and object) to be used
when recording FLAIR receipts
• DOR is the only agency with access to record receipts for
other agencies in FLAIR
• DOR uses information from the banking system to
determine the amount that is to be recorded daily
29
EFT Payment for Dept of Revenue
• EFT bank account BAI files are sent via FTP to the
Department of Revenue (DOR) from CMS daily
• The BAI file contains deposits for DOR and other state
agencies
• DOR loads BAI file to SunTax system, records the
agency OLO and FLAIR deposit number to each
transaction on the file and returns the modified file to
CMS
• CMS stores the updated transactions containing the
agency OLO and deposit number to facilitate
verification in FLAIR
• Deposits are verified in FLAIR and reconciled to the
bank transactions
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30
Dept of Revenue Interaction with the Florida Treasurer
Florida
Treasury
BAI records on payments received
Deposit information
Department of Revenue
BAI & Addendum Records
Tax payer information
Clerk of
the
Court
Concentration
Bank
Accounts:
Checks & EFT
Money
US Treasury: Child
Support
Enforcement Grants
Money
Money
IVR
Web Site:
Credit cards &
electronic checks
checks
ACH Debit /
Credit Program
Lock
Box
Tax
payer's
acc't
Tax
payers
31
Automated Clearing House Processing
• ACH detail/addenda records are used to identify
recipient and originator of funds
• CMS assigns the deposit number for an agency to use
when posting to FLAIR
• CMS provides ACH reports/FTP files to agencies
• CMS has the ability to drill down to the details
contained in ACH transactions
32
32
Automated Clearing House (ACH)
Funds Request
Payment
Originator
Remittance
w/ details
State Agency /
Customer
Financial
Institution
Updates
accounts
Processes Payments
Assigns deposit
number and identifies
state agencies
ACH
Clearing
System
FLAIR
Verifies payment
Treasury
BAI file and addenda records
Florida
Concentration
Bank
33
Credit Card and Electronic Payments
Receipts
• Agencies collect revenues via credit card and ACH
(electronic check)
34
34
Credit Card & Electronic Payment Process
Point
of sale
Purchase information
IVR
BOA /
BAMS
Processor
ACH Network /
Card Issuer
Authorization/Settlement
Web site:
credit cards &
electronic checks
Settlement
Reconciliation
file
(BAMS / AMEX)
Purchase
detail
On line payment information
Charge back information
Fee billing information
Record
deposit
State Agency.
ACH &
BAI files
Batch information
Transaction detail
Settlement information
Verified deposit detail
FLAIR
Settlement reconciliation file
Treasury:
reconciliation of
the ACH/BAI
and the
reconciliation
files
35
Receipt Verification: Automatic &
Manual
• Receipts are automatically verified for over-the-counter,
wire transfers and ACH deposits
• Manual verifications only occur when CMS and FLAIR
fail to automatically create a match
36
36
Receipt Verification (continued)
• Departmental FLAIR Matching and Updating
►
►
►
►
A file containing bank transactions is transmitted to
Departmental FLAIR daily for automatic matching.
Departmental FLAIR bumps this file against the completed
deposits on the agency cash processing screens. If there is a
match on the specified criteria, (OLO, deposit number and
amount) the deposit entries are verified and updated.
This file includes the FLAIR account to which the deposit
was credited.
Verified transactions are updated in CMS to facilitate the
bank reconciliation process
37
37
38
Receipt Verification (continued)
Wire
Transfer
ACH
OTC
Cash
Management
System
Electronic file of bank
transactions to be
matched to FLAIR
entries
Verified Receipts
State
Accounts
Application
Departmental
FLAIR
(performs
matching process
and updated
agency accounts)
Receipts Section manually keys verified receipts
Bank
Accounts
Application
Return Items - Treasury
• Pursuant to Section 215.34, the Treasury charges
back, to the appropriate agency, all checks and
electronic funds transfers that have been deposited
and returned unpaid.
• CMS receives a returned check file for checks, ACH
and credit card returns and a check image file from
the concentration account bank.
• A file of deposit adjustments is created and
transmitted to Central FLAIR to update agency
accounts.
• Files are also transmitted to update other Treasury
applications.
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39
Returned Items – Agency
• By the time the agency is notified, the default account in
Central FLAIR will have been adjusted (debited) by the
returned item. No Departmental entry was recorded.
• Deposit correction entries in Departmental FLAIR need
to be prepared to ►
►
►
Record a receipts adjusting entry in Departmental FLAIR to
match the Central FLAIR posted adjusting entry.
Eliminate the adjustment in the default account used by
Treasury by transferring the adjustment to the proper
account code string and event.
Determine how or whether to pursue the receivable created
by the payment not being honored.
40
Returned Items
Return Checks
Bank of
America
CMS
Deposit
Adjustment
Return Check
Image File
Credit Card Returns
ACH Returns
Debit
Memo
produced
Debit Memos
Central
FLAIR
State Agency
File of
Debit Memos
Dept of Revenue
41
41
Daily Deposit Reconciliation
• Compare manually keyed transactions to Departmental
FLAIR on-line report
• Compare verified deposits to amounts in receipts
application (information received from Departmental
FLAIR)
• Compare verified deposits to updated transactions in
CMS
42
42
Consolidated Revolving Account
Consolidated
Revolving
Account
Bank file of
agency transactions
(BAI)
Treasury
Overnight
investments
Fund checks presented
Treasury Functions:
1. Acts as a bank
2. Performs customer service
3. Reconciles bank statement
4. Allocates interest to agency's sub-accounts
5. Issues end of the month statements to agencies
Deposits &
Disbursements
Special
Purpose
Investment
Account (SPIA)
Issues: Allocate interest directly to the fund account
Mandatory use by state agencies
Each agency
uses unique
account identifier
State Agency
43
44
Current Clearing Account Process
Separate Balance transfers by agencies
Bank
Accounts
Treasury
Agency requests approval to open account
Initial approval and reapproval every 2 years
Quarterly balance reporting
Deposits
State Agency
Warrant Funding Process
• The CFO audits and authorizes for payment warrants
and other disbursement orders issued by the Division
of Accounting and Auditing presented and cleared
through the U.S. banking system.
• Sections 17.52, 17.555, and 17.56
45
45
46
Warrant Paying Process
Division of
Accounting and
Auditing / FLAIR
Treasury Warrants
Application
Warrant Issues,
Cancellations, Stop Orders
Warrant Payments
Contract Warrant
Paying Bank
Treasury Issue File
• Warrant and EFT issue file information received daily
from Division of Accounting and Auditing. File includes:
►
►
►
►
►
New warrants issued
New EFTs issued at summary level
Duplicate warrants
Cancellations
Stop payment orders
• Stale-dated warrants
►
Automatic purge
47
47
Warrant Payment Process
• The warrant paying bank submits a paid warrants file
to the Treasury.
• The Treasury Warrant Section processes the exception
items and performs the final balancing.
• The Treasury paid file is processed by FLAIR – Central
and the Division of Accounting and Auditing
reconciliation file is updated.
48
48
49
Treasury Investment Pool
General
Revenue
Securities
Trust
Funds
Special Purpose
Investment Accounts
(SPIA)
50
Portfolio Allocation as of Sep 30, 2013
Amounts = billions
State Funds
SPIA
$14.397, 68 %
$ 6.697, 32%
Dollar amount each owner has
invested
Market Value of Treasury investments, excluding Securities Lending
investments
Investment Accounting
• Investment accounting system is used to account for
the internally managed investments at a detail level
and the externally managed investments at a
summary level.
• Sections 117.57 and 17.61
51
51
Investment Accounting
• Internally Managed Portfolio
►
►
►
►
Purchases, Sales, and Maturities
Reporting
 Inventory
 Daily Cash Interest
Monthly Earnings
Performance Reporting
• Externally Managed Portfolio
►
Summary Level
52
52
Trust Fund Investment Accounting
• The trust fund investment accounting process
performs accounting functions for invested trust
funds and Special Purpose Investment Accounts
(SPIA) and allocates investment earnings to the
General Revenue fund, Trust Funds, and SPIA.
• Sections 17.57, 17.61(1), and 17.61(3)
53
53
Investment Earnings
• Earnings are apportioned to Trust Fund and SPIA
invested balances using dollar-day calculation with the
remainder posted to general revenue .
• Treasury investment fee calculated using average daily
balance.
• Monthly statements and daily ledgers available on
Treasury website.
54
54
Trust Fund Investment Process
Division of Accounting
& Auditing
Treasurer's
Investment Pool
1
4
State Agencies
3
Increase
3
2
2
1
Balance Check
5
Investment Process
Treasury
Decrease
Disinvestment Process
55
Treasury Asset / Liability Accounting
• The Treasury assets are recorded in the Treasury bank
accounts application.
• The Treasury liabilities are maintained in the state
accounts application.
• These systems are reconciled weekly and the information
is used for reporting purposes.
• Sections 17.54 and 17.55
56
56
Asset Accounting
Treasury
Verified
Receipts & Debit
Memos
Create asset management
ledger daily for reconciliation
(Daily)
(Daily)
CMS
Treasury
Bank
Accounts
(Assets)
Investment
Activity
(Treasury
Investment
Account
Application)
(Daily)
(SPIA)
(Manual)
(Daily)
Treasury
Warrants Paid
(Warrants Application)
Certificate
of Deposit
Activity
Special
Purpose
Investment
Account
Bank
Transfer
Activity (from
Investments
Section)
57
58
Assets
June 30, 2013
June 30, 2012
$0.00
667,942,492.03
$0.00
30,217,066.66
3,004,208,270.20
2,718,020,888.99
(42,432,168.88)
409,319.38
$3,630,127,912.73
(13,264,315.76)
785,317.99
$2,735,758,957.88
$800,900,000.00
$951,600,000.00
19,563,334,762.61
17,629,302,693.07
Total Investments
$20,364,234,762.61
$18,580,902,693.07
Total Assets of the Treasurer
$23,994,362,675.34
$21,316,661,650.95
Currency and Coins
Unemployment Compensation Investments
(Due From U.S Treasury - Unemployment TF)
Deferred Compensation Assets
Bank Accounts
Consolidated Revolving Account
Total Cash, Receivables, and Other Assets
Certificates of Deposit
Securities
Liability Accounting
Treasury Verified
Receipts & Debit
Memos
(Daily)
CMS
Treasury
State
Accounts
(Liabilities)
Cash Journal Transfers
(Daily)
(Daily)
Treasurer's Cash Balances
(Monthly)
Treasury
Warrants Paid
Division of Accounting &
Auditing
(Central)
(Warrants Application)
59
60
Liabilities
General Revenue Fund
Trust Fund
Budget Stabilization Fund
Total Three Funds
Interest Payable & Securities Liabiliy
Due to Special Purpose Accounts
Due to Deferred Compensation Participants
Due to Consolidated Revolving Account
Agency Participants
Total Liabilities of the Treasurer
June 30, 2013
June 30, 2012
$4,014,706,684.00
10,341,187,244.23
708,791,896.79
$2,441,562,764.53
9,100,372,918.93
493,764,620.27
$15,064,685,825.02
$12,035,700,303.73
3,671,117.39
5,921,388,143.35
3,004,208,270.20
409,319.38
14,276,830.70
6,547,878,309.54
2,718,020,888.99
785,317.99
$23,994,362,675.34
$21,316,661,650.95
61
Reconciliation of the Concentration Account
Concentration
Bank
Daily BAI file &
electronic bank statements
Treasury
Daily Activity
1. Update the CMS Bank Tablets
2. Reconcile the CMS Bank Deposits to verified
FLAIR receipt transactions
End of Month
1. Balance bank balance to asset ledger
2. Prepare information for Governor's report
Reconciliation
• Reconciles CMS bank transactions to FLAIR daily
activity
• Reconciles asset ledger to CMS
• Reconciles CMS bank transaction detail to the bank
statement balance
• Clears exception items/provides outstanding items
reports
62
62
Certificate of Deposit Investment
• Statutorily Required in Sec. 17.57
• Current numbers
►
►
►
100 active CD contracts
46 participating financial institutions
$ 800.9 million CD balances
63
63
Certificate of Deposit Process
• Certificate of Deposit application
►
►
►
►
Verifies Qualified Public Depository status
Calculates available placement levels
For certificates of deposit placed, maintains
 Name / account information
 contract terms
 Payment / ACH account information
Creates
 CD Requests
 CD Contracts
 Monthly interest due notices
 Monthly ACH file
64
64
Competitive Selection Process
• Application creates email to be sent to eligible
Qualified Public Depositories (QPD)
• QPDs bid for placements using Treasury website
65
65
Cash Management Improvement Act
• General goal is to efficiently obtain federal funds
commensurate with a spending need.
• Based on designated major federal programs
• A clearance pattern is developed of the timing used
between receipt and use of funds for the eligible
programs
• A liability is calculated and assessed when the
clearance pattern is excessive
66
Treasury State Agreement (TSA)
• Agreement between the federal and state
governments
• What is included
►
►
►
►
►
Programs covered
Entities covered
Funding techniques
Clearance pattern methodology
Interest calculation methodology
67
67
Federal Programs Covered
• Currently 28 major programs
• The state’s threshold for major federal assistance
programs is currently $104 million per year.
68
68
Entities Covered
•
•
•
•
•
•
•
•
•
Agency for Health Care Administration
Dept of Agriculture and Consumer Services
Dept of Children and Families
Office of Governor
Dept of Education
Dept of Economic Opportunity
Dept of Health
Dept of Revenue
Dept of Transportation
69
69
Fiscal Agent Entities
• Fidelity Information - Food Stamp Benefits Service
and WIC
• Wells Fargo Bank - Reemployment Assistance
• Fidelity Information - TANF Services
• Hewlett Packard - Medical Assistance Program
70
70
Funding Technique
• Pre-Issuance
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Florida requires state agencies to request federal funds
in accordance with the funds request and receipt times
schedule included in the Treasury State Agreement.
Agencies are directed to schedule the request for funds
so that funds are received in the state’s account no
earlier than the day vouchers are presented to the
Division of Accounting and Auditing for voucher audit.
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Federal Funds Draw Process
State Agency
Voucher
Expenditure
recorded
Division of Accounting &
Auditing
(Central)
Federal
Funds
Request
Deposit
entered
Treasury
receives & updates
verifies
funds
Audit
1. Money in Treasury
2. Appropriation
3. Expenditure authority
Warrant
issued
FLAIR
updates
Treasury
pays
warrant
Federal Funds Draw Process
• Agency requests federal funds in accordance with
funds request and receipt schedule
• Agency submits warrant or EFT transaction request
voucher to A&A
• Voucher is reviewed (Voucher Audit Section / three
days)
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Money in agency account
Appropriation
Expenditure is within guidelines of the state agency
incurring the obligation
• Warrant or EFT payment is created
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Clearance Patterns
• The state has developed a separate average
clearance pattern for each program or cash flow
component.
• Clearance patterns are developed each year using a
dollar weighted average during a three month
period (September to November).
• The state measures the time between the date the
federal funds are received and credited to the state
bank account and the date these funds are debited
from the account.
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Archiving
• Record Storage Application
• Fulfills statutory requirement to maintain data and
records for
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Receipts
Warrants
State Accounts
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