FISCAL YEAR 2005 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.

When the term "budgeted funds" is used in these instructions it refers exclusively to the following funds:

Maintaining or Revising Fiscal Year 2005 Department and Budget Structure in Fiscal Year 2006 and Chart of Account Maintenance

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

Please contact John Clark at 702-3350 immediately if any of the following conditions apply:

• Your agency plans on inactivating or adding department values or restructuring the department tree for Fiscal Year 2006. Please keep in mind that changes to the department chartfield values may require updating your position funding and employee setup in the HRMS application. This is a time consuming process and must be closely coordinated with any changes to your financial chartfields. Department changes will only be accepted prior to the start of the new fiscal year, and will become effective at the start of that fiscal year. No department changes will be accepted during the course of the fiscal year in progress.

• 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 2006 budget reference. No action is required by agencies to roll these existing HR account codes to budget reference 2006.

For existing non-budgeted funds, the present HR account code, which points to a specific budget reference (e.g. Fiscal Year 2005) will remain in place and a new HR account code will be created mapping to the budget reference 2006. Again, no action is required by agencies to create this new HR account code for budget reference 2006.

Budget reference 2006 will become an active value on June 20, 2005.

** Reminder: If you are using speed charts, speed types, or distribution codes with a budget reference selected, you must change that budget reference to 2006 for the new fiscal year. Within the budgeted funds the budget reference will be automatically incremented to the new fiscal year, please verify that this has occurred.

Appropriations

No later than June 1, 2005 agencies must notify the Office of Policy and Management of all appropriations within budgeted funds that qualify for continuance to Fiscal Year 2006.

In general:

Lapsing Fiscal Year 2005 appropriations receiving new funding in Fiscal Year 2006

No appropriation balances in budgeted funds will be brought forward to the new-year appropriation account. Unliquidated encumbrances will not be automatically recommitted against the new-year appropriation. Encumbrances and expenditures after July 1, 2005 will be charged against the new-year appropriation.

Continuing Fiscal Year 2005 appropriations

All unexpended balances (unliquidated encumbrances, unencumbered, unallotted) will be brought forward to the new-year appropriation early in Fiscal Year 2006 (after adjustments and account balances are verified). Unliquidated encumbrances will not be automatically recommitted against the new-year appropriation. Expenditures processed after July 1, 2005 will be recorded as new-year expenditures.

All continuing appropriations such as Federal and Other Grants or Insurance Recoveries should be balanced and closed by June 30, 2005 wherever possible.

Lapsing appropriations not renewed with a Fiscal Year 2006 appropriation (one month carry-forward)

These appropriations may be extended until July 31, 2005 for the purpose of liquidating obligations properly incurred in Fiscal Year 2005 (the old year). The unliquidated encumbrance balance will not be automatically brought forward to Fiscal Year 2006. After July 31st the unliquidated balance will be lapsed.

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, 2005.

Billing/AR/Receipts

Remember that all monies received prior to July 1, 2005 are Fiscal Year 2005 (old year) receipts. All monies received on or after July 1st are Fiscal Year 2006 (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.

You should make every effort to deposit your Fiscal Year 2005 receipts and to post them in the AR module (either direct journal the deposit or apply the payment to an open item) by June 30, 2005. Any refunds of Fiscal Year 2005 (prior year) expenditures within the budgeted funds that are not applied and posted in Fiscal Year 2005 will be automatically updated to default to general revenue in Fiscal Year 2006 so that budgets are not increased in Fiscal Year 2006. This automatic updating applies only to budgeted funds.

The billing module will close at 3 PM on June 30, 2005 for Fiscal Year 2005 transaction processing and will open on July 1st for Fiscal Year 2006 transaction processing (except for DOCS1, ITDS1 and DASS1, which will be open until the close of business on July 5th for Fiscal Year 2005 processing).

The AR module will close at 3 PM on July 5, 2005 for Fiscal Year 2005 transaction processing and will open on July 6th for Fiscal Year 2006 activity. Therefore, you will have until July 5th to apply payment to your open items relating to Fiscal Year 2005.

After June 30, 2005 it will be essential to separate any transactions relating to the old year (Fiscal Year 2005) receipts from new year transaction processing. This separation of old and new year receipts should be accomplished through the use of separate deposit slips. Remember, you must have the ability to isolate receipts that relate to money received in the old fiscal year from new year money when transacting in the AR module after June 30th.

In order for the Comptroller's Office to identify which AR postings entered after June 30th relate to Fiscal Year 2005 receipts, the Payment I.D. Field within the Payment Tab will be utilized. In cases where deposits relating to Fiscal Year 2005 receipts are posted after June 30th for Fiscal Year 2005, please enter "FY 2005" into the Payment ID Field.

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 10, 2005 FOR FISCAL YEAR 2005 PAYMENT. Remember that such payments must be processed by the debtor agency no later than June 15, 2005 and recorded by the creditor agency no later than June 27, 2005.

Purchasing

Purchase Orders - (includes requisitions, change orders, purchase orders encumbering personal service agreements, purchase of service contracts, and rent/lease agreements) for fiscal year 2005 funds must be entered into Core-CT and budget checked by Friday, June 17, 2005. If the goods/services cannot be paid by June 20, 2005, it is recommended that the purchase order not be processed until July, 2005.

Purchase orders will not be rolled (carried forward) to fiscal year 2006.

All purchase orders must be closed by June 21, 2005.

All requisitions must be closed by June 22, 2005.

POs should be closed by first issuing a change order to bring the PO amount to equal the expended amount. Lines with the 71000 account code for future obligations should be cancelled at this time. This should return the unspent balance back to the contract making it available for release on a new year PO. This will also allow the contract to reflect accurate balances.

POs not received and/or invoiced by June 21st, will need to be re-entered in the new year. When these POs are re-entered, care must be taken to ensure that the PO is not dispatched to the vendor. Re-entered POs must have a dispatch method of PRINT.

POs for contracted goods and services, which called for periodic payments in FY 2005, where the last payment is not issued by June 21, 2005, must also be closed. The last payment for these POs can be issued on a non-PO voucher in July, 2005. If the last payment is not made in July or if multiple payments are remaining, a new PO must be entered by July 31, to reserve the funds for future payments. Again, re-entered POs must have a dispatch method of PRINT.

New fiscal year purchase orders may be entered starting on Monday, June 27, 2005. This should only be done after the agency has closed all old year documents. The new year POs should have a future date of 7/1/2005 in the PO date, accounting date, and budget date fields. A new year POs should not be submitted for approval until all of the budgets for it are in place.

Accounts Payable

Vouchers

• Vouchers for Inter-agency transfers billed in fiscal 2005, must be approved and budget checked by close of business Wednesday, June 15, 2005.
• PO vouchers for fiscal year 2005 must be approved and budget checked by close of business Monday, June 20, 2005.
• Vendor Payment Cancellations, including those for GIRO payments, must be received in the Accounts Payable Division by 5:00pm Friday, June 24, 2005.
• Interfaced vouchers must be loaded by Monday, June 27, 2005.
• Town Payments must be approved and budget checked by close of business Tuesday, June 28, 2005.
• Reversal vouchers must be approved and budget checked by close of business Tuesday, June 28, 2005.
• Adjustment vouchers must be approved and budget checked by close of business Tuesday, June 28, 2005.
• Adjustment vouchers entered as credit memos to budgeted funds must be closed or reversed by Tuesday, June 28, 2005.
• All non-PO vouchers remaining must be approved and budget checked by 1:00pm on Wednesday, June 29, 2005.
• Journal Vouchers correcting FY 2005 entries must be entered, approved, and budget checked by 2:00pm on Thursday, June 30, 2005. Journal Vouchers entered in FY 06 must be for vouchers entered in FY 06. Corrections to prior year expenditures recorded after June 30th must be done in GL.

The Comptroller's last pay cycle for fiscal year 2005 will be run at 1:00pm on June 29th. The last scheduled due date to be processed is June 30, 2005. If any payments have a scheduled due date after June 30, 2005, they will be closed, reversed, or adjusted to $0.00. A "ZERO" pay cycle will be run on June 29th, which should allow all unpaid vouchers to be picked up and "paid". Remaining vouchers will be closed, reversed, or adjusted by OSC personnel. New vouchers will need to be entered in the new fiscal year.

New year vouchers cannot be entered into Core-CT until all affected budgets are in place, which means July 1 at the earliest.

A detailed job aid for Purchasing and Accounts Payable will be published separately.

Any questions regarding the accounting for adjustment or reversal vouchers should be directed to the General Accounting contacts listed on the first page of this memorandum or Elaine Pelletier in the Accounts Payable Division.

Claims Authorization Form (CO-512)

Agencies are reminded at this time to complete the Claims Authorization Form (CO-512) for fiscal year 2005-2006. The hard-copy form must be completed and forwarded to the Comptroller's Office, Accounts Payable Division, 55 Elm Street, Hartford, CT 06106 attn: Linda Carney, by Friday, June 10, 2005.

The form is available for downloading from the OSC website at http://www.osc.state.ct.us/agencies/forms. The CO-512 must contain the names of all agency personnel with the roles listed below. The Commitment or Expenditure box must be checked based on their authorization. Any forms with both boxes checked for one individual will be returned to the agency for segregation of duties.

Commitment Roles:

• Requisition Purchasing Approver
• Purchase Order Budget Reviewer/Approver

Expenditure Roles:

• Voucher Approver
• Alternate Approver

The signature of the agency head (i.e. Commissioner) must appear on all Claims Authorization Forms to certify that the listed personnel are authorized to encumber or expend funds on behalf of the agency.

Encumbrance and expenditure documents may not be processed for the new fiscal year if the authorization form is not received by June 10th.

Payrolls

The biweekly pay period Friday, May 27, 2005 through Thursday June 9, 2005 scheduled for payment on Friday, June 24, 2005 is the final payroll charged to appropriations for Fiscal Year 2005.

Semimonthly and any payrolls which will be paid June 30, 2005 will also be charged to Fiscal Year 2005 appropriations.

Payroll checks dated in July will be charged to Fiscal Year 2006 appropriations.

Spreadsheet Journal Corrections

Spreadsheet journal corrections for Fiscal Year 2005 may be submitted until July 8, 2005. After that date, no additional corrections will be accepted to Fiscal Year 2005 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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