RMS & Coding Transactions in CFMS
Neal Christensen, CPA, CGMA
NealCPA@Q.com 720-468-1765
For more information contact;
• CDHS Settlement Accounting,
cdhs_settlementaccounting@state.co.us
• Suzie McGinley, State and County Cost Accounting,
303-866-4421, Suzie.McGinley@state.co.us
RMS & Coding Transactions in CFMS
Acronyms
ARMARS - Automated Random Moment and
Reporting System
CBMS - Colorado benefits Management System
CDHS - Colorado Department of Human Services
CFMS - County Financial Management System
CEDS - County Employee Data Store (a module of
CFMS)
CHATS - Child Care Automated Tracking System
IV-D - also known as Child Support Enforcement
RMS & Coding Transactions in CFMS
Acronyms, continued
IM - Income Maintenance
LEAP - Low-income Energy Assistance Program
PACAP - Public Assistance Cost Allocation Plan
RMS - Random Moment Sample
RMTS - Random Moment Time Studies
SNAP - Supplemental Nutrition Assistance Program
SS - Social Services
TANF - Temporary Assistance for Needy Families
RMS & Coding Transactions in CFMS
Random Moment Sample is not adding
expenditures to your county or subtracting
expenditures from your county.
RMS & Coding Transactions in CFMS
Random Moment Sample does two things;
a) adjusts “indirect administrative”
expenditures but does not adjust “direct”
program expenditures,
and
RMS & Coding Transactions in CFMS
continued from previous slide;
b) assigns levels of activity to single
program cost pools. For instance it takes
the single cost pool, 9100.8000, IV-D
Child Support Enforcement and assigns
expenditures to the following six activities;
establishment of paternity, establish a child
support order, parent location services,
enforcing the payment of an order,
distributing/allocating child support
payments, and administration.
RMS & Coding Transactions in CFMS
Most program expenditures are already
coded as the EBT payments initiated
through the State source computers such
as CBMS, Trails, CHATS, LEAP, etc.
are computer interfaced with CFMS.
RMS & Coding Transactions in CFMS
RMS coding is required mainly for;
• Employee salaries and benefits,
• Some contracts not paid through a
benefits system such as CBMS, Trails,
CHATS, LEAP, etc.
• Other administrative expenditures such
as rent, utilities, office supplies, etc.
RMS & Coding Transactions in CFMS
Many employees work in multiple
program areas and can’t be coded to one
program, for instance, workers using the
CBMS system are generally determining
eligibility for Medicaid, TANF and
SNAP simultaneously.
RMS & Coding Transactions in CFMS
The three accepted methods for coding /
redistributing expenditures of Public
Assistance Programs in Colorado are;
• 100% Direct Charging to a program area
• 100% Time Reporting
• Charging to a Cost Pool (which uses
Random Moment Sample statistics)
•
•
•
•
•
RMS & Coding Transactions in CFMS
100% Time Reporting must meet all the
following standards:
Reflect an after the fact distribution of the
actual activity of the employee
Account for the total activity for which the
employee is compensated
Be prepared at least monthly and must
coincide with one or more pay periods
Be signed by the employee
Be singed by the employee’s supervisor
RMS & Coding Transactions in CFMS
There are 22 “coding pools” for the salaries
& benefits and “other than salaries &
benefits”.
16 of the 22 pools are for multiple program
areas. 6 of the 22 pools are for single
program areas. Plus there are several
variations for these 22 main coding pools.
(see the 4 page handout of the 22 cost pools)
RMS & Coding Transactions in CFMS
County Accountants should work
jointly with employee’s supervisors to
determine the “appropriate coding that
most closely reflects the actual
employee effort”.
RMS & Coding Transactions in CFMS
RMS divides our business into two areas;
“Social Service” which means
Child Welfare–Foster Care / Core Services
and
“Income Maintenance” which means pretty
much everything else such as; TANF, SNAP,
Medicaid, Child Care, Adult Programs, etc.
(see handout)
RMS & Coding Transactions in CFMS
CDHS need a minimum of 2,000 statewide
hits from “Social Services” and an
additional 2,000 valid statewide hits each
quarter from “Income Maintenance” for the
RMS system to be statistically accurate.
valid
Coin Flips
heads
2,000
1,996
2,003
1,999
2,002
tails
2,000
2,004
1,997
2,001
1,998
4,000
4,000
4,000
4,000
4,000
RMS & Coding Transactions in CFMS
Initially most of the “coding pools”
are to be booked into your county
general ledger as “County
Administration” which acts as a large
suspense account.
RMS & Coding Transactions in CFMS
The Random Moment Sample (RMS)
statistics are then applied in CFMS.
CFMS has a monthly RMS Report to
help you create an adjusting journal
entry to remove the “suspense
expenditures” in County Administration
and apply the expenditures to the correct
program.
RMS & Coding Transactions in CFMS
An monthly adjusting journal entry based
on the monthly CFMS RMS report might
look like this for a small county;
Child Welfare Admin100%
$ 29,000
Child Welfare Admin 80/20
250
Colorado Works
4,000
Child Care
2,000
Non-Allocated
1,500
Child Welfare related Child Care
50
OAP Admin
600
County Admin
(37,400)
RMS & Coding Transactions in CFMS
RMS statistics are calculated each quarter
and the application of the RMS statistics
are delayed by one quarter so you may
attempt to calculate the adjustments
yourself.
These quarterly statistics are applied on a
monthly basis in CFMS.
RMS & Coding Transactions in CFMS
Only staff that carry a caseload should be
receiving random emails (hits) from
contractor Hornby Zeller Associates, Inc.
RMS & Coding Transactions in CFMS
Administrative staff such as directors,
accountants, administrative assistants, mail
room personnel, receptionists, etc. should
be coded to Program Component O500 and
Function Code 7000.
Rent, utilities, and other common expenses
can be coded O500.7000 or they can be
specifically identified by an allocation
basis.
RMS & Coding Transactions in CFMS
How do my O500/7000 expenditures get
adjusted?
(see handout)
RMS & Coding Transactions in CFMS
Know the RMS options for;
• IV-D Child Support and
• Low-Income Energy Assistance
Program (LEAP) Administration.
These are portions of indirect
administration (directors salary &
benefits, accountants salary & benefits,
rent, utilities, etc.) identified as IV-D
Child Support and LEAP.
RMS & Coding Transactions in CFMS
Can I use my own method(s) for allocating
administrative expenditures? Yes!
“From each according to his ability, to each
according to his need.”
Karl Marx
“And laid them down at the apostles' feet: and
distribution was made unto every man
according as he had need.”
Acts 4:35
RMS & Coding Transactions in CFMS
You can allocate administrative
expenditures by;
• You use actual experience such as 100%
time reporting for salaries and benefits,
• You use actual measurements for office
space occupied, specific counters on
photocopy machines
• You use a “basis of allocation”.
RMS & Coding Transactions in CFMS
Some allocation bases are;
Auditing – direct audit hours,
Office space – square feet of space occupied,
Payroll services – number of employees
Local telephone – number of phones
(see handout)