FISCAL YEAR 2004 YEAR-END INSTRUCTIONS

General Information

The fiscal year for all departments of State Government closes on the thirtieth day of June (CGS, Sec. 4-35).

It is important that you review and closely follow the year-end instructions. If you have any questions, please contact the following:

You are responsible for distributing these instructions to the appropriate staff within your agency. It is important that all dates and deadlines be observed, as there will be no exceptions to these instructions.

Maintaining or Revising Fiscal Year 2004 Department and Budget Structure in Fiscal Year 2005 and Chart of Account Maintenance

As indicated in an earlier daily mail document, an initial year-end related task is to identify any changes required to your present department or budget structures.

Please contact Elaine Pelletier 622-2500 no later than April 30, 2004 if any of the following conditions apply:

• Your agency plans on inactivating or adding department values or restructuring the department tree for Fiscal Year 2005. Please keep in mind that changes to the department chartfield values may require updating your position funding and employee setup in the HRMS application.
• Your agency plans to restructure the HR department values that are used for controlling the security and reporting structure in the HR application. Please keep in mind that any department that exists in the HR application must also exist in the Financials application.
• Your agency plans on changing the current budget structure-the control/tracking option.

For all budgeted funds, the current HR account code combination (which maps to a financial chartfield) will assume a mapping to the Fiscal Year 2005 budget reference. No action is required by agencies to roll these existing HR account codes to budget reference 2005.

For existing non-budgeted funds, the present HR account code, which points to a specific budget reference will remain in place and a new HR account code will be created mapping to the budget reference 2005. Again, no action is required by agencies to create this new HR account code for budget reference 2005.

** Reminder: If you are using speed charts with a budget reference selected, you must change that budget reference to 2005 in the new fiscal year.

Appropriations

No later than June 1, 2004 agencies must notify the Office of Policy and Management of all budgeted appropriations that qualify for continuance to Fiscal Year 2005.

In general:

Lapsing Fiscal Year 2004 appropriations receiving new funding in Fiscal Year 2005

No budgeted appropriation balances will be brought forward to the new-year appropriation account. All unliquidated encumbrances will be recommitted against the new-year appropriation. Expenditures liquidating these commitments after July 1, 2004 will be charged against the new-year appropriation. You will be informed through a separate communication if any additional action is required to recommit your unliquidated encumbrances.

Continuing Fiscal Year 2004 appropriations

All unexpended balances (unliquidated encumbrances, unencumbered, unallotted) will be brought forward to the new-year appropriation early in Fiscal Year 2005 (after adjustments and account balances are verified). The unliquidated encumbrances will be recommitted against the new-year appropriation. Expenditures processed after July 1, 2004 will be recorded as new-year expenditures. You will be informed through a separate communication if any additional action is required to recommit your unliquidated encumbrances.

All continuing appropriations such as Federal and Other Grants or Insurance Recoveries should be balanced and closed by June 30, 2004 wherever possible.

Lapsing appropriations not renewed with a Fiscal Year 2005 appropriation (one month carry-forward)

These appropriations may be extended until July 31, 2004 for the purpose of liquidating obligations properly incurred in Fiscal Year 2004 (the old year). The unliquidated encumbrance balance will be brought forward to Fiscal Year 2005. After July 31st the unliquidated balance will be lapsed. You will be informed through a separate communication if any additional action is required to recommit your unliquidated encumbrances.

First quarter Fiscal Year 2005 allotments

Please submit your first quarter allotments to OPM leaving sufficient time to distribute the allotment and to ensure receipt by the Comptroller's Office not later than July 1, 2004.

AR/Receipts

All monies received prior to July 1, 2004 are Fiscal Year 2004 (old year) receipts. All monies received on or after July 1st are Fiscal Year 2005 (new year) receipts. The check date is NOT the controlling factor; the date on which the check is actually received by your agency is controlling.

All bank deposits relating to Fiscal Year 2004 receipts MUST be completed by the end of business on July 2, 2004 and recorded in Core-CT AR by 5pm on July 6, 2004 (the next regular business day). All receivables (open items created through AR billings) in Fiscal Year 2004 will be brought forward into Fiscal Year 2005. You will be notified through a separate communication if additional action is required to bring your open receivable items forward.

IT IS ESSENTIAL TO SEPARATE OLD AND NEW YEAR DEPOSITS THROUGH THE USE OF SEPARATE DEPOSIT SLIPS. You must have the ability to isolate old year deposits from new year deposits.

The Core-CT AR module will be closed for Fiscal Year 2005 transaction posting until July 7, 2004. From July 1st- July 6th only Fiscal Year 2004 deposit transactions may be entered to the Core-CT AR Module.

Inter-agency payments should be given special attention to ensure that the receiving agency completes the receipt posting (eliminates the open item/receivable) in the same fiscal year that the payment was made by the debtor agency. NO AR BILLINGS FOR INTER-AGENCY TRANSFERS SHOULD BE CREATED AFTER JUNE 18, 2004 FOR FISCAL YEAR 2004 PAYMENT. Remember that such payments must be processed by the debtor agency no later than June 29, 2004 and recorded by the creditor agency no later than July 6, 2004.

AP/Commitment and Vendor Payments

The fiscal year end-processing cutoff for Fiscal Year 2004 vendor payments is as follows:

Purchase Orders - (includes requisitions, change orders, purchase orders encumbering personal service agreements, purchase of service contracts, and rent/lease agreements) must be entered into Core-CT and budget checked by Monday June 28, 2004. All purchase orders with open encumbrance balances will be carried forward into the new fiscal year.

A separate set of detailed instructions will follow this memorandum assisting agencies in cleaning up purchase orders through use of reporting tools that will identify match exceptions and unmatched receiving reports.

New purchase orders entered into Core-CT for Fiscal Year 2004-2005 must reflect the future date in the "PO Date" field.

Procurement Document Cleanup: Agencies must clean up all outstanding procurement documents that will not be carried forward into the new fiscal year. Listed below are some of the Core-CT inquiries helpful in identifying procurement documents for four separate procurement inquiries. Each inquiry contains navigation instructions and the fields requiring entry.

Requisition Document Status - Purchasing > Requisitions > Review Requisition Information > Document Status.

In the "Find an Existing Value" tab enter the Business Unit, then select the appropriate items in the "Requisition Status" field.

Purchase Order Status - Purchasing > Purchase Orders > Review PO Information > Purchase Orders.

In the "Find an Existing Value" tab enter the Business Unit, then select the appropriate items in the drop down menu in the "PO Status" field.

Receipt (Receiving Report) Document Status Inquiry - Purchasing > Review Shipment Information > Receipts > Document Status

In the "Find an Existing Value" tab enter the Business Unit, then select the appropriate items in the drop down menu in the "Receipt Status" field.

Receipt (Receiving) Summary Report - Purchasing > Review Shipment Information > Document Status

This report is similar to the above report, however it lists procurement documents related to receipts (receiving reports) such as requisitions purchase orders, vouchers, etc.

Expenditure Vouchers - must be approved and budget checked by 3:00 p.m. Tuesday June 29, 2004. The Comptroller's last pay cycle for fiscal year 2003-2004 will be run following the 3:00 budget check. Agencies that have payments to towns and municipalities must process vouchers no later than June 28, 2004.

Vendor check cancellation documentation must be received in the Accounts Payable Division by 5:00 p.m. Monday June 28, 2004.

Expenditure Voucher Cleanup:

The Core-CT financial team and the Accounts Payable Division have identified unprocessed vouchers in Core-CT and will continue e-mailing detailed spreadsheets to each agency. Agency staff must determine if these vouchers represent valid outstanding payments. If so, vouchers must be processed by the cutoff date. Vouchers that no longer represent an outstanding payment should be deleted from Core-CT. Agencies can view the vouchers in Core-CT that have not issued payments by following the following navigation:

Accounts Payable > Review Vouchers > Voucher Inquiry

In the "Voucher Inquiry" tab in the "Voucher Balance" field select "Balance Remains". In the "Voucher Date Type" select "Entered Date", in the "From Date" click on the calendar icon and select "July 1", then select the appropriate year in the year drop down box. In the "From Date"select the date you wish to search through, and select the year drop down box. The last step is to select the yellow "Search" button. Use of the other fields allows the user to refine the search to various criteria including vendor, approval status, post status, etc. After running the search the vouchers will appear under the "Voucher Inquiry Results" tab.

Payrolls

The biweekly pay period Friday, May 28, 2004 through Thursday June 10, 2004 scheduled for payment on Friday, June 25, 2004 is the final payroll charged to appropriations for Fiscal Year 2004.

Semimonthly and any payrolls which will be paid June 30, 2004 will also be charged to Fiscal Year 2004 appropriations.

Payroll checks dated in July will be charged to Fiscal Year 2005 appropriations.

Spreadsheet Journal Corrections

Spreadsheet journal corrections for Fiscal Year 2004 may be submitted until July 30, 2004. After that date, no additional corrections will be accepted to Fiscal Year 2004 transactions.

Detailed instructions concerning spreadsheet journal payroll corrections are available on the Core-CT web site under General Ledger Job Aids. Notwithstanding previous communications, both fringe benefit and non-fringe benefit payroll corrections may be processed via the spreadsheet journal process.

There are also detailed instructions on spreadsheet journal entries available on the Core-CT web site under General Ledger Job Aids.

Statewide GAAP Closing and Schedule of Federal Financial Assistance

As in prior years, a detailed GAAP closing package will be will be distributed prior to fiscal year end. The purpose of the GAAP closing, which is separate from the legal closing outlined above, is to allow the Comptroller to report in conformance with Generally Accepted Accounting Principles. This is required, in part, for the state to maintain a favorable bond rating.

As in the past, in conjunction with the GAAP closing package, agencies will be requested to provide a Schedule of Federal Financial Assistance. This report is critical to the Single Audit Report prepared by the Auditors of Public Accounts. A set of detailed instructions will be issued to each agency that receives federal financial assistance.

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