Presentation for OFMA
April 10, 2014
Lynne Bajema, CPA
Oklahoma State Comptroller
Overview
Structure of New Manual
Comment Period
OMES Contacts
Terminology Changes
New or Frequently Missed
Guidance
2
Introduction
Contents
How to Use the Manual
Gaining Access to the Accounting System
Contact Information
Brief Descriptions of Relevant Departments
3
Contents
 Chapter 10 – Coding
 Chapter 20 – Budgeting
 Chapter 30 – Receipting and Depositing
 Chapter 40 – Purchasing
 Chapter 50 – Disbursing
 Chapter 60 – Reconciling and Reporting
 Chapter 70 – Internal Controls Guidance
4
Appendices
Glossary
Agency Listing
Revenue Codes
Expenditure Codes
Forms
Report Listing
5
Available in Two Forms
Web Pages
 Quick, easy links
 Will be updated as procedures are changed
 Not easily printable into one manual
 PDF Version
 Easily printed in one document
 Will be updated less frequently
 Important to read DCAR newsletters
6
Comment Period
Through May 31st
PDF version should be on the Comptroller’s
website by the end of the day tomorrow
Web pages will be posted by April 21st
Both will be modified to incorporate comments
during comment period and changes in statute
from 2014 session.
Send comments to Stephanie.Langs@omes.ok.gov
7
DCAR Contacts
Accounting and Reporting – Jennie Pratt
Transaction Processing – Steve Wilson
Accounts Payable – Patricia Garcia
Financial Reporting (CAFR) – Matt Clarkson
Agency Business Services – Chris Forster or Steve
Funck
Vendor File Management – Vicky Baker
OMES Finance/Flexible Spending – Dan Melton
8
Terminology Changes
 To Align with PeopleSoft Terminology
 Was ‘Fund’ – Now ‘Class Funding’
 Was ‘Object of Expenditure’ – Now ‘Account’
 Was ‘Agency Number’ – Now ‘Business Unit’
9
New Guidance or Reminders
10
Chapter 40 - Purchasing
Agencies are required to cancel remaining
encumbrance balances through the State
Purchasing System as soon as they know the
encumbrance will not be used, but no later than
November 15th after the fiscal year end.
OMES will cancel any remaining encumbrance
when the appropriation is lapsed.
11
Chapter 40 - Purchasing
The allowed use of Authority Orders is limited to
purchases under $5,000 for which the standard
encumbrance process cannot serve.
Use vendor specific Authority Orders whenever
feasible.
Authority Orders should not be used for:
 Mandatory statewide contract purchases
 Postage
 Professional Service Contracts
12
Chapter 40 - Purchasing
P-Card Purchases between agencies
$5,000 ‘Break even’
Purchases over $5,000 discouraged
There is a cost to the agency
13
Chapter 40 - Purchasing
 OMES Form VEND Vendor Payee Form Requirements
 Adding a New Vendor- including first time payment for your
agency

Complete all fields legibly to include Vendor signature
 Updating

Adding New Addresses/Locations



Requires 9-Digit Zip Code
Requires Email Address
Changes to IRS Name/TIN


Requires completed new form including vendor signature
Requires New Vendor ID
14
Chapter 40 - Purchasing
 Reporting Requirements for 1099 Payments
 OMES Vendor Payee Form is a substitute W-9
 Information must match IRS records
 Vendor should annotate Exemption and Status
 Review all Payments for 1099 Status
 Agency should review Page 3 of Vendor Payee Form to
determine if payment qualifies for 1099 reporting
15
Chapter 40 - Purchasing
 Vendor Registration Process
 OK.gov Vendor Portal

Bidder Registration


EFT Registration


All individuals or businesses considered for contract payments should register on
the OK.gov Vendor Portal
Vendors who already do business with the State should visit the Vendor Portal to
add EFT banking information to their vendor file for payments
FINAL STEP REQUIRED: Confirmation email to vendor


PIN activation number
Bank Form and instructions
 Bank Form should be completed by vendor and their bank
 Must be submitted to Office of State Treasurer via FAX or mail for processing –
DO NOT EMAIL BANK FORMS
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Chapter 40 - Purchasing
 Employees Vendor Registration Process
 Submit Employee Update Request Form



Add Employees for Non-payroll Payments Only (eg. travel)
Employee Payment Location 0001 Default
Employee Payments for Independent Services
 If employee also provides services as a vendor for the
State, they should complete and sign a Vendor Payee
Form
 New Location in employee vendor file
 Need written authorization to add employee direct
deposit to this location
 Payments may be 1099 reportable
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Chapter 50 - Disbursements
Scanning Program
 Many agencies scan claim documentation and only
send OMES a batch slip
 Agencies that are not scanning are encouraged to do
so
 Contact Steve Wilson at 521-4679 for information on
the scanning process
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Chapter 50 - Disbursements
Memberships and Dues
 Prohibited with the following exceptions:
When the fee is for a position and can be transferred to
another employee if the member employee leaves the agency;
 When membership can be shown to be in the best interest of
the state due to discounts on job-related training, when the
discounts obtained are more than the cost of membership
 When specific coverage of individual memberships are within
the terms of a grant contract. Documentation must be
attached.
 When the agency has been approved to enter the OMES
Human Capital Management Model Project.

19
Chapter 50 - Disbursements
HCM Model Project
Based on Human Resource issues
Agency who wants approval to participate should
send letter to HCM explaining and detailing the
need
Contact person is Ron Wilson 522-0422
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Chapter 50 - Disbursements
Payroll Processing Timeline
21
There are several key dates within the biweekly payroll
process.
Employees
should
complete
timesheets
Supervisors
should review
timesheets
Agencies have until 1500HRS
(3:00 PM) Friday to process a
45 step payroll process and
resolve any issues.
Two-week
work period
ends.
Pay period
Employee
Supervisor
Payroll Process (45 Step)
Once
This process
payroll is
ensures
finalized
that
and
longevity
fundedisatincluded,
the agency,
payroll
the agency
is approved,
runs
payroll
calculations
throughtie
the
out,
G/L
etc.
process
Onceand
the the
payroll
payroll
goesinformation
through the final
available
calculations,
to Transaction
the agencyProcessing
must run funding
for release.
reports
Additional
to see if they have
documentation
cash and allotments
with to
proper
run payroll.
approvals
If not,
is sent
they
to must
Transaction
work with their
Processing
Finance Departments
either by e-mail,
to modify
fax, or paper.
fundingOnce
codes
Transaction
or take whatever
Processingaction
has theispaperwork
necessary to
forproperly
a payroll,
fund
it isthe
reviewed
payroll.against the
pending release data to ensure they match and payroll is released.
Information
This can be is
a lengthy,
due fromtime-consuming
the agencies by 3:00
process,
5 business
especially
daysfor
prior
large
to
payday.
agencies.
Pay period
Employee
Supervisor
Payroll Process (45 Step)
Pay period
Employee
Supervisor
Payroll Process (45 Step)
Drop Dead
Payday
Chapter 50 - Disbursements
Payroll Processing Timeline
 Very
tight timing
 Agency at risk if deadlines not met
 OMES will be contacting Directors
26
Chapter 60 – Reconciling and
Reporting
 994 Class Fund, 633xxx Accounts Reconciling
 HCM Public Query: GO_PY_DED_RUNID_BY_CONFIRM_DT


Driven by Confirm Date
Includes deduction codes and descriptions, # of employees with a
specific deduction, and general ledger 633xxx accounts to which
amounts were posted:
 Agencies should complete the voucher build and budget check by the
end of the month. Vouchers do not need to be paid, but should be
budget checked in order to help with reconciling.
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Chapter 60 – Reconciling and
Reporting
Reconciliation of Clearing
Accounts and ASA’s
Must reconcile to OST and to State
Accounting System
Form 11
Deadline – 10th of each month
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Chapter 60 – Reconciling and
Reporting
O.S. 62 Section 34.58 Information on income, disbursements and transfers
states:
Each state agency shall furnish to the Director of the Office of Management and
Enterprise Services, in such form as the Director shall prescribe, detailed
information showing the income, disbursements, and transfers for each agency
clearing account and each agency’s special account. Income, disbursements and
transfers shall be identified in accordance with code designations as provided in the
accounting procedures of the Office of Management and Enterprise Services…
The State Treasurer shall not honor vouchers disbursing and transferring monies
from agency clearing accounts or special accounts, when he or she has been notified
by the Director of the Office of Management and Enterprise Services that an agency
is not in compliance with the provisions of subsection A of this section.
29
Chapter 60 – Reconciling and
Reporting
Failure to reconcile accounts results in:
Audit issues
Delay of the CAFR
Incorrect reporting of the State’s cash
position
30
Chapter 60 – Reconciling and
Reporting
Any reconciling items should be
listed as such.
PLUG NUMBERS ARE NOT ALLOWED
Plug
Numbers
31
Chapter 60 – Reconciling and
Reporting
Reconciliation of Budgeted Cash to Actual
 Summary of Receipts and Disbursements Report to –
 Allotment of Budgeted Cash Report
 Liabilities on the SRD should agree to detail
32
Chapter 50 - Disbursements
Statutory Cancellations of Warrants
 Review the Outstanding Warrants Report and
 A/P Statutory Cancellations Report
 Address issues before they cancel by statute.
 If agency catches prior to stat cancel, they can cancel the
warrant and recover the money
 If statutorily cancelled, money goes back to the GRF and
the agency loses it.
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Chapter 60 – Reconciling and
Reporting
1099 Misc Tax Information Report
 Agencies should review at least quarterly
 Most important – verify the 1099 flag
 Verify other vendor information
 Make sure you are not paying the same vendor under
multiple vendor IDs
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Statewide Accounting Manual
 Questions???
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