Department of Financial Services
Division of Accounting and Auditing
Form 040 - SBA
OBJECT CODE STANDARDIZATION PROJECT
Impact Statement Form
1.
Agency Name
State Board of Administration (a component unit, not a State Agency)
2.
Contact Name
4.
Contact Title
DONNA SENN
3.
Contact E-mail
5.
Contact Phone Number
Accounting Manager
Donna.Senn@sbafla.com
850 413-1462
6.
Impact to agency if request is not approved:
Expenditure Reporting
Business System Impact - Names of System(s):
Other – Please explain:
7.
Impact Statement (Explanation of Impact to the agency include any concerns on timeline)
1. We only learned of this project May 8, 2014. SBA does not need FLAIR object codes at all, but because
DFS requires one for revenues and expenses in FLAIR, we accommodate that when sending monthly
transaction files to FLAIR. SBA uses a mapping table that basically converts the GL codes that SBA uses
in our own PeopleSoft system to the FLAIR GL codes DFS uses to prepare statewide reporting. For FLAIR
GL codes that start with a 6xxxxx or 7xxxxx, SBA also sends an Object code and Category code for no
purpose other than to get the FLAIR transaction to post. SBA does not use either the Object code or the
Category code for any purpose. As far as we are concerned, we could use a single object code for
everything.
2. SBA has the ability to use the same Object code for multiple GL codes, but SBA does NOT currently have
the ability to use multiple object codes for the same GL code. We currently have a one-to-one relationship
between object codes and GL codes in FLAIR. SBA has several codes in FLAIR for “other expenses” that
are used only at fiscal year-end when we move balances to GL codes required by DFS for either
governmental or proprietary funds. These codes could have balances for a variety of expenses. In most
cases, the original expenses were recorded by SBA in GL 771-773, and the fund is either a governmental
fund or a proprietary fund, so we move the balances to either GL 711 or GL 783 or GL 785. We don’t move
every individual expense, we zero out the original individual expenses in GL 771-772, but we move them to
a single GL code starting with “711” or “783” to accommodate your year-end close needs.
SBA has interfaces with several investment management systems that affect the posting of investment
transactions to SBA’s General Ledger, which in turn, are later converted to FLAIR. None of these systems
is set up to distinguish between the “type of fund” meaning that they cannot post to different GL codes
depending on whether a fund is “governmental”, “proprietary”, or “fiduciary”. So, SBA uses the same GL
codes throughout the year and then moves the balances (if necessary) to GL-711, 783 or 785 at fiscal yearend MANUALLY. We may have originally recorded a variety of expenses in GL-773xx, but when we move
the balance to GL 711, we move the balances of all the 773xx codes to GL-71161/OBJ-899052-Other
Nonbudgeted Expense (Gov). We do have a separate code for Salaries & Benefits GL-711 OBJ-110003 and
Other Contractual Svcs GL-711 OBJ-139913. We do not want to have to set up new 711 GL codes to reflect
every single code that was originally posted in the 773 range during the year. Ditto with the Salaries and
OCS codes. We do not want to set up 6 different Salary codes in GL 711 to reflect each individual salary
expense that was posted in GL 771, we roll them all into a single GL 711 OBJ 110003 at FYE. For OCS, we
roll them into GL 711 OBJ 139913 and for other budgeted expenses GL 711 OBJ 499003 and other
nonbudgeted expenses GL 711 OBJ 899052.
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Department of Financial Services
Division of Accounting and Auditing
OBJECT CODE STANDARDIZATION PROJECT
Impact Statement Form
3. In my review of SBA’s existing object codes and your draft files for expense object codes (e.g. 1xxxxx
through 8xxxxx), it appears that there are quite a few SBA object codes that would need to be changed to fit
into your object code template. For example, SBA has a lot of object codes starting with 8990xx, but these
object codes are mapped to “operating expense” GL codes, so if you want correct reporting, SBA would
need to either use a different proposed object code (one that you already have), or set up new ones that
would correspond to GL codes that are “operating expenses”. Several (but not all) examples are object
codes 899020, 899023, 899025, 899026, 899029, 899031, 899040, 899027, 899053, etc.
Response: Please refer to the Statewide Object Codes for appropriate codification/crosswalk of agency
unique object codes.
4. SBA could use object codes that you have already proposed, instead of setting up most of the new codes that
we list at the bottom of this form. I am attaching a SBA crosswalk file with a list of SBA’s existing expense
object codes, what you have proposed to map them to, what would be the preferred correct object code to
map them to. If you would like SBA to use object codes that are meaningful, then you might want to
consider adding the proposed SBA new codes. However, if the object code detail is not that important to
DFS, SBA would be fine using an already existing code. For example, for the INVESTMENT EXPENSES
listed above, SBA could use 461000-FEES-GENERAL or 899100-NONOPERATING EXPENDITURESOTHER for all of them and we could operate okay, because we do not use object codes for our reporting
(we use GL codes).
Response: See #8 below for the response to each requested object code.
5. Someone needs to look at certain debt service fiscal charges and determine the correct object code. We
have all debt service fiscal charges coded to object codes 6xxxxx. Your proposals move them. Please see
the attached file where I have included SBA’s current GL to FLAIR mapping table. Out to the right in
columns N, O, P, Q, R, S I have listed all our existing expense GL/object codes, what you have proposed,
what we think the correct object code might be, and my proposed object description. Green means no
problem, Yellow means we believe the object code should be different and Orange means we may need to
add a new object code. There are a couple of Purple lines. Those are codes where SBA manually recodes a
variety of expenses to for statewide reporting, and we could not find an exact match in your proposed object
codes file.
6. We have not yet looked at our Revenue Object Codes because my understanding is that you are currently
only looking at expense object codes.
Response: This impact statement is to address the standardization of the expenditure object codes. Revenue
codes will not be standardized at this time.
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Department of Financial Services
Division of Accounting and Auditing
OBJECT CODE STANDARDIZATION PROJECT
Impact Statement Form
8. Request for Statewide Object Codes (if applicable)
Object Code
Short Title
Long Title
Definition
Justification
1xxxxx or
4xxxxx
INV EXP-SBA
INVESTMENT
EXPENSES-SBA SVC
CHGS
Used to record payment
of SBA investment
service charges.
Don’t see any other
existing proposed
codes like this.
INVESTMENT
EXPENSESMANAGEMENT FEES
Used to record
contractual expenses
paid to external
investment managers.
Don’t see any other
existing proposed
codes like this.
INVESTMENT
EXPENSES-OTHER
Used to record payment
of State of Florida
Treasurer investment
service charges,
including SPIA charges
Don’t see any other
existing proposed
codes like this.
INVESTMENT
EXPENSESCOMMISSIONS
Used to record broker
commissions paid on
investments.
Don’t see any other
existing proposed
codes like this.
ARBITRAGE TAX
PAYMENT
Used to record payment
of federal taxes as a
result of arbitrage
situations in
governmental funds.
Don’t see any other
existing proposed
codes like this.
Used to record broker
rebates paid to security
borrowers on the cash
collateral put up to
collateralize security
loans.
Don’t see any other
existing proposed
codes like this.
1xxxxx or
4xxxxx
4xxxxx
4xxxxx
4xxxxx or
6xxxxx
4xxxxx
INV EXP-MGT
FEES
INV EXPOTHER
INV EXP-COMM
ARB TAX PMT
INV EXP-SL
REB
INVESTMENT
EXPENSES-SECURITY
LENDING REBATES
Approved Y/N DFS Comments N Agency should be directed to 840004 Investment Cost ‐ SBA. Y 840100 ‐ Investment Cost ‐ Management Fees is proposed. N Agency should be directed to 840006 ‐ Investment Cost ‐ State Treasurer. Y 840101 ‐ Investment Cost ‐ Broker Commission is proposed. Y 899111 ‐ Arbitrage Tax Payment is proposed. Y 840009 ‐ Investment Cost ‐ Security Lending is proposed. 3
Department of Financial Services
Division of Accounting and Auditing
OBJECT CODE STANDARDIZATION PROJECT
Impact Statement Form
4xxxxx
64xxxx
64xxxx
4xxxxx
1xxxxx
8xxxxx
8xxxxx
INV EXP-SL
FEES
DS-PMT PREM
DS-NOT
REDEMP
ACTUARY EST
OCS-BEN PMT
NO EXP-SEC
LND
NO EXP-FISCAL
Used to record the
amount paid to security
lending agents for their
share of net lending
earnings.
Don’t see any other
existing proposed
codes like this.
Used to record
premiums paid to
bondholders when the
State of Florda repays
debt in advance
refundings.
Don’t see any other
existing proposed
codes like this.
DEBT SERVICENOTICES OF
REDEMPTION
Used to record amount
paid to provide legal
notice of upcoming debt
redemptions
Don’t see any other
existing proposed
codes like this.
INC/DEC ACTUARY
FUTURE BENEFIT
Used to record changes
in Actuary estimates of
future costs.
Don’t see any other
existing proposed
codes like this.
CONTRACTUAL
SERVICES-BENEFIT
PAYMENTS
Used to record various
benefit payments to
colleges and universities
on behalf of Florida
Prepaid participants.
Don’t see any other
existing proposed
codes like this.
INVESTMENT
EXPENSES-SECURITY
LENDING FEES
DEBT SERVICEREDEMPTION
PREMIUM
NONOPERATING
EXPENDITURES-SEC
LENDING FEES
NONOPERATING
EXPENDITURES-FISCAL
CHARGES
Used to pay nonoperating security
lending agent fees in
proprietary funds.
Used to pay nonoperating fiscal charges
such as bank fees related
to investment activities
in proprietary funds.
Don’t see any other
existing proposed
codes like this.
N Agency should be directed to 840009 ‐ Investment Cost ‐ Security Lending. Y 690011 ‐ Debt Service ‐ Redemption is proposed. N Agency should be directed to 690011 ‐ Debt Service ‐ Redemption. Y 899112 ‐ Change in Actuary Estimate is proposed. Y 421028 ‐ Benefits/Claims ‐ Prepaid College is proposed. N Agency should be directed to 840009 ‐ Investment Cost ‐ Security Lending. N Agency should be directed to 840100 ‐ Investment Cost ‐ Management Fees. Don’t see any other
existing proposed
codes like this.
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Department of Financial Services
Division of Accounting and Auditing
OBJECT CODE STANDARDIZATION PROJECT
Impact Statement Form
8xxxxx
8xxxxx
8xxxxx
8300xx
8300xx
NO EXP-SBA
NO EXP-BD ISS
NO EXP-COMM
NONOPERATING
EXPENDITURES-SBA
INV SVC CHGS
NONOPERATING
EXPENDITURES-BOND
ISSUE COSTS
NONOPERATING
EXPENDITURESCOMMISSIONS
Used to pay SBA
investment service
charges in proprietary
funds.
Used to pay nonoperating bond issuance
costs in proprietary
funds.
Used to pay nonoperating investment
commissions in
proprietary funds.
Don’t see any other
existing proposed
codes like this.
Don’t see any other
existing proposed
codes like this.
Don’t see any other
existing proposed
codes like this.
INV COSTOPTIONS
INVESTMENT COSTOPTIONS
Used to record the
purchase cost of put or
call option investments.
Don’t see any other
existing proposed
codes like this.
INV COST-RE
INVESTMENT COSTREAL ESTATE
Used to record the
purchase cost of real
estate investments.
Don’t see any other
existing proposed
codes like this.
N Agency should be directed to 840004 Investment Cost ‐ SBA. Y 690012 ‐ Bond Issuance Cost is proposed. N Agency should be directed to 840101 ‐ Investment Cost ‐ Broker Commission. Y 840010 ‐ Investment Cost ‐ Options is proposed. Y 840011 ‐ Investment Cost ‐ Real Estate is proposed. THE FOLLOWING CERTIFICATION MUST BE COMPLETED BY THE AGENCY’S DIRECTOR OF ADMINISTRATION OR DELEGATE.
I hereby certify, to the best of my knowledge, that the information provided above is true and correct.
Printed Name: Robert T. Copeland
Signature:
Title: Sr. Operating Officer – Accounting & Administrative Services
Phone Number: 850-413-1212
Date Signed: May 19, 2014
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