FISCAL YEAR 2006 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 2006 Department and Budget Structure in Fiscal Year 2007 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. These changes must be finalized through the Comptroller's Office no later than Wednesday, May 31, 2006.

Please contact John Clark at 702-3350 immediately if you have not yet finalized any of the following actions through the Comptroller's Office:

• Your agency plans on inactivating or adding department values or restructuring the department tree for Fiscal Year 2007. 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 implemented 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.

Creation of HRMS Combination Codes with 2007 Budget Reference:

• HRMS Combination Codes for Budgeted Funds will be changed to reflect 2007 Budget Reference. All prior year Budget References will be inactivated.
• Certain Non-Budgeted Funds (MERF, Regional Community College Operating Fund, Employment Security Fund Correction Industries, DOIT Internal Service Fund and General Services Revolving Fund) will also have the Budget Reference incremented to 2007. All prior year Budget References will be inactivated
• All other funds will have new HRMS Combination Codes created with 2007 Budget Reference (duplicates of existing valid HRMS Combination Codes with 2006 Budget Reference).
• All existing HRMS Combination Codes with Prior Years' Budget References will remain valid until agencies request inactivation.
• Department/Fund consolidations in non-budgeted funds will be allowed as long as all ChartField Combos for a particular Department/Fund combination are subject to consolidation (e.g. you may not select specific SIDs in a Fund for consolidation all SIDs within the fund requested will be consolidated).
• Last year's Consolidation list will be used again this year, unless we are notified of any changes. Copies are available, please review and update especially for any new values used this year.
• Budget Consolidations will follow the same rules.

Budget reference 2007 will become an active value on Tuesday, June 20, 2006.

** Reminder: If you are using speed charts, speed types or distribution codes with a budget reference selected, you must change that budget reference to 2007 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 Monday, May 15, 2006 agencies must notify the Office of Policy and Management of all appropriations within budgeted funds that qualify for continuance to Fiscal Year 2007.

In general:

Lapsing Fiscal Year 2006 appropriations receiving new funding in Fiscal Year 2007

No appropriation balances in budgeted funds will be brought forward to the new-year appropriation SID. Unliquidated encumbrances from Fiscal Year 2006 will be recommitted against the new-year appropriation. Any expenditures posted after Friday, June 30, 2006 will be charged against the new-year appropriation.

Continuing Fiscal Year 2006 appropriations

All unexpended balances (unliquidated encumbrances, unencumbered, unallotted) will be brought forward to the new-year appropriation SID early in Fiscal Year 2007 (after adjustments and budget balances are verified). Unliquidated encumbrances will be automatically recommitted against the new-year appropriation. Expenditures posted after Friday, June 30, 2006 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 Friday, June 30, 2006 wherever possible.

Lapsing appropriations not renewed with a Fiscal Year 2007 appropriation (one month carry-forward)

These appropriations may be extended until Monday, July 31, 2006 for the purpose of liquidating obligations properly incurred in Fiscal Year 2006 (the old year). The unliquidated encumbrance balance will be automatically brought forward to Fiscal Year 2007. After July 31st the unliquidated balance will be lapsed.

First quarter Fiscal Year 2007 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 Friday, June 30, 2006.

Billing/AR/Receipts

Remember that all monies recorded in Core-CT as deposited prior to July 1, 2006 are Fiscal Year 2006 (old year) receipts. All monies recorded as deposited in Core-CT on or after July 1st are Fiscal Year 2007 (new year) receipts. The check date is NOT the controlling factor; the date on which the bank deposit is recorded is controlling.

You should make every effort to deposit your Fiscal Year 2006 receipts and to post them in the AR module (either direct journal the deposit or apply the payment to an open item) by Friday, June 30, 2006. Any refunds of Fiscal Year 2006 (prior year) expenditures within the budgeted funds that are not applied and posted in Fiscal Year 2006 will be automatically updated to default to general revenue in Fiscal Year 2007 so that budgets are not increased in Fiscal Year 2007. This automatic updating applies only to budgeted funds.

The billing module will close at 3 PM on Friday, June 30, 2006 for Fiscal Year 2006 transaction processing and will open on Monday July 3, 2006 for Fiscal Year 2007 transaction processing (except for DOCS1, ITDS1 and DASS1, which will be open until 3 PM on Thursday, July 6, 2006 for Fiscal Year 2006 processing).

The AR module will close at 3 PM on Thursday, July 6, 2006 for Fiscal Year 2006 transaction processing and will open on Friday, July 7, 2006 for Fiscal Year 2007 activity. Therefore, you will have until July 6th to apply payment to your Fiscal Year 2006 open items.

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 BILLINGS FOR INTER-AGENCY TRANSFERS SHOULD BE CREATED AFTER FRIDAY, JUNE 2, 2006 FOR FISCAL YEAR 2006 PAYMENT. Remember that such payments must be processed by the debtor agency no later than Thursday, June 15, 2006 and recorded by the creditor agency no later than Tuesday, June 27, 2006.

On Account (OA Entry Type) Payments

All OA on account open item receipts related to Fiscal Year 2006 MUST BE CLOSED OUT BY THE END OF BUSINESS ON TUESDAY JUNE 27, 2006. In order to ensure that OA payments are classified to the correct Fund/SID/Accounts, agencies must close out these OA items by creating a bill in the Billing module and matching it to the OA with a Maintenance Worksheet. OA items not closed by agencies on or before June 27th will be closed by the Comptroller's Office in order to properly classify the payment as a revenue or refund of expenditure in Fiscal Year 2006. At that point, agencies run the risk of having OA items classified to a Fund/SID/Account not of their choosing. Agencies will be responsible for modifying these entries to the proper coding with a spreadsheet or online journal no later than July 14, 2006.

Purchasing

Agencies shall determine their own cut off dates for the issuance of requisitions sourced to purchase orders, the creation of new purchase orders and the issuance of change orders, within the following parameters:

• Access to create new requisitions will be removed on June 28.
• The last day to make a payment on a dispatched purchase order will be at noon Wednesday June 28, 2006.
• Access to close all POs that should not roll will be granted through July 5.
• Access to the all Purchasing documents will be removed on July 6.
• POs will be rolled by the Core-CT Support Team from July 6 through July 9.
• Access to all Purchasing documents will be re-established on July 10.

Purchase Orders

Agencies must close POs on a monthly basis at the beginning of each fiscal year and more frequently as the end of the fiscal year approaches. Agencies must continue to close all POs that should not roll into fiscal year 2007 through the close of business on July 5, 2006.

• Prior to Closing a PO, ensure that all vouchers referencing that PO (including reversals and adjustments) have been paid.
• Close all POs that are completed as soon as possible.
• Do not close POs that have a remaining balance.
• Issue a ?Change Order' to bring the PO amount to the amount expended.
• POs that have a remaining balance will be rolled.

The benefits of creating a ?change order' are:

• the ?PO Balance Report' displays the actual expenditures
• the unexpended funds are returned from the PO to the contract
• the contracts reflect actual expenditures and allow the unexpended balances to be re-committed on another PO
• the unexpended funds are made available in the agency budgets.

Core-CT will be adjusting the close days as we approach the end of the fiscal year as follows:

1. 4/28/2006 to 15 days,
2. 5/8/2006 to 5 days,
3. 5/30/2006 to 2 days,
4. 6/12/2006 to zero days.

Requisitions

To assist in returning funds pre-encumbered by a requisition, the Core-CT process of requisition reconciliation, normally run on Fridays, will be run on Tuesdays and Fridays in May and June.

Access to create requisitions will be removed from user's profile on the morning of June 28, 2006. The batch process for requisition sourcing will be discontinued. Future dated requisitions should not be created in Core-CT.

All requisitions in the business unit (other than templates) should be closed after the PO associated with it is closed. This should be completed by July 5. The Core-CT team will update the ?budget date' and the ?accounting date' on requisition templates.

PO Roll Process:

In order for a purchase order to qualify for PO Roll, encumbered funds must remain on the PO line(s). Line(s) must not be in a fully matched status.

The Core-CT team will begin the PO Roll process for all remaining POs in Business Units on July 6, 2006. If the Core-CT team encounters a problem with a PO left in an agency's business unit to roll and that PO does not roll due a technical error, the Core-CT team will attempt to close that PO and will provide a listing of those POs to the agency for re-creation in the 2007 fiscal year.

Core-CT will begin to roll POs on the morning of July 6, 2006 and continue to roll through July 9, 2006.

User access to the Purchasing and Requisition Modules will be re-established on July 10, 2006. In the event that the PO Roll is not completed, a Daily Mail will be issued on the morning of July 10 indicating the time frame for the continued lock out.

New Year POs

Agencies may create new fiscal year POs between July 1, 2006, and the close of business July 5, 2006. These POs should be left in initial status and not be routed for approval.

After the PO Roll process is completed, agencies may submit new year POs for approval providing that all of the budgets for that PO are in place.

Continuing Funds will not be available until Monday July 17, 2006.

Accounts Payable

Vouchers

• Vouchers for Inter-agency transfers billed in fiscal 2006, must be approved and budget checked by close of business Thursday, June 15, 2006.
• PO vouchers for fiscal year 2006 must be approved and budget checked by 12:00 noon Wednesday, June 28, 2006.
• Vendor Payment Cancellations, including those for GIRO payments, must be received in the Accounts Payable Division by 5:00pm Wednesday, June 14, 2006.
• Interfaced vouchers must be loaded by Tuesday, June 27, 2006.
• Town Payments must be approved and budget checked by 12:00 noon Wednesday, June 28, 2006.
• Reversal vouchers must be approved and budget checked by 12:00 noon Wednesday, June 28, 2006.
• Adjustment vouchers must be approved and budget checked by 12:00 noon Wednesday, June 28, 2006.
• Adjustment vouchers entered as credit memos to budgeted funds must be reversed by 12:00 noon Wednesday, June 28, 2006.
• All non-PO vouchers remaining must be approved and budget checked by 12:00 noon Wednesday, June 28, 2006.
• Journal Vouchers correcting FY 2006 entries must be entered, approved, and budget checked by 2:00pm on Friday, June 30, 2006. Corrections to prior year expenditures recorded after June 30th must be done in GL.
• JOURNAL VOUCHERS SHOULD NOT BE USED AFTER JUNE 30, 2006!!! Corrections to Fiscal Year 2007 vouchers will be made using Adjustment Vouchers. A separate communication will be sent out regarding this change.
• The Comptroller's last "STATE" Pay Cycle for fiscal year 2006 will be run at 1:00pm Wednesday June 28. The last scheduled due date to be processed is June 30, 2006.
• A "ZERO" Pay Cycle will be run on June 28, at 1:30 p.m., which should allow all unpaid vouchers to be "paid". These vouchers should have a scheduled due date of July 17, 2006.
• Any unpaid vouchers that have not been posted should be deleted by the agency on Thursday, June 29.
• Any current year vouchers that remain unpaid, but have been posted must be closed by OSC-APD Staff on June 29 and June 30. Agencies will be notified by July 7, 2006 of any vouchers closed by OSC.

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

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)

The Claims Authorization Form CO-512 has been revised for fiscal year 2007. Please refer to OSC Memorandum 2006-05 for revised instructions. The new form CO-512 is available for downloading from the Office of the Comptroller's website at http://www.osc.state.ct.us/agencies/forms/. The hard-copy form must be completed and forwarded to the Comptroller's Office, Accounts Payable Division, 55 Elm Street, Hartford, CT 06106 Attention: Linda Arn by Friday, June 9, 2006.

The CO-512 must contain the names of all agency personnel with the roles listed below. The Encumbrance 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

New for Fiscal year 2007 is a required listing on the CO-512 form of designated contact information for accounts payable, purchasing, cancellations, reversal vouchers, and budgeting.

When completing the portion of the CO-512 form that contains the box to determine whether the form is new or an update, the new box should be checked when the form is submitted for the new fiscal year and the update box should be checked when any changes are made thereafter. Please remember to change the effective date when submitting an updated form.

The signature of the agency head (Commissioner, Executive Director, etc.) 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 9.

Payrolls

The biweekly pay period Friday, May 26, 2006 through Thursday June 8, 2006 scheduled for payment on Friday, June 23, 2006 is the final payroll charged to appropriations for Fiscal Year 2006.

Semimonthly and any payrolls which will be paid June 30, 2006 will also be charged to Fiscal Year 2006 appropriations.

Payroll checks dated in July will be charged to Fiscal Year 2007 appropriations.

Spreadsheet Journal Corrections

Spreadsheet journal corrections for Fiscal Year 2006 may be submitted until Friday, July 14, 2006. After that date, no additional corrections will be accepted to Fiscal Year 2006 transactions.

Detailed instructions concerning spreadsheet journal payroll corrections are available on the Core-CT web site under General Ledger Job Aids. 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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