FISCAL YEAR 2007 YEAR-END INSTRUCTIONS

April 5, 2007

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 refer to the list of contacts at the end of these instructions.

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:

11000 General Fund
12001 Transportation Fund
12003 Banking Fund
12004 Insurance Fund
12006 Consumer Counsel/DPUC Fund
12007 Workers Compensation Fund
12009 Mashantucket Pequot & Mohegan Fund
12010 Soldiers Sailors and Marines Fund
12013 Regional Market Operations Fund
12014 Criminal Injuries Compensation Fund

Maintaining or Revising Fiscal Year 2007 Financial Chartfield and Budget Structure in Fiscal Year 2008

Any changes (addition or inactivation of values) required to your present financial chartfield structure for Fiscal Year 2008 should be submitted using the Core-CT chartfield maintenance form (http://www.core-ct.state.ct.us/dvd/chartfield.htm) no later than Tuesday, May 1, 2007. Requests for budget structure changes should also be submitted to the attention of John Clark at Office of the State Comptroller by that date.

Please keep in mind that the following actions must be finalized by May 1, 2007:

• Inactivation or addition of financial chartfield values inclusive of department values or department tree modifications for Fiscal Year 2008. Please keep in mind that changes to 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. Also note that 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.
  
  
• 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. In addition, if a chartfield value is changed to budgetary only, that value will not be valid for payroll processing within financials.
  
  
• Modifications to the current budget structure-the control/tracking option.
  
  
• Budget reference consolidations by fund and department in non-budgeted funds will be allowed as long as all chartfield combinations for the fund/department 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.) Any departments for which budget references were consolidated in Fiscal Year 2007 will also be consolidated in Fiscal Year 2008 unless the Comptroller's Office receives specific notification to discontinue the consolidations for Fiscal Year 2008. It is not necessary to resubmit a consolidation request for Fiscal Year 2008 if the desired consolidation was executed in Fiscal Year 2007.
  
  
• In financials, consolidations will follow these same rules and consolidate based on last year's selection unless a modification is requested. If a fund/department consolidation occurred last year, this same fund/department consolidation will occur in Fiscal Year 2008 unless the agency contacts the Comptroller's Office for modification.

Budget reference 2008 will become an active value on Monday, June 18, 2007.

** Reminder: Speedcharts, speedtypes and distribution codes referencing budgeted funds will be automatically updated with the Budget Reference for the new fiscal year. Please verify that this has occurred. If you are using speed charts, speed types or distribution codes for a non-budgeted fund, with a budget reference selected, you must change that budget reference to 2008 when the new budget reference should be used in the new fiscal year.

Creation of HRMS Combination Codes with 2008 Budget Reference:

For the first payroll to be processed in fiscal year 2008, the pay period begins on Friday, June 8, 2007. Therefore, all new fiscal year budget references will be effective on that date.

• HRMS Combination codes for Budgeted Funds will be changed to reflect the 2008 Budget Reference. Effective June 8, 2007, the 2008 budget reference will be the only one available. The combo code value remains the same.
  
• 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 2008. Effective June 8, 2007, the 2008 budget reference will be the only one available. The combo code value remains the same.
  
• All other funds will have new HRMS Combination Codes created with 2008 Budget Reference. These will mirror all the chartfield values of the 2007 Budget Reference Combo codes except for the Budget reference itself. The combo code value changes by increasing the sequence digits at the end.
  
• Last year's Consolidation list... If consolidations are done, the effect is identical to the incrementing which is done in second bullet above. Effective June 8, 2007, the 2008 budget reference will be the only one available. The combo code value remains the same.

Appropriations

No later than Monday, May 14, 2007 agencies must notify the Office of Policy and Management of all appropriations within budgeted funds that qualify for continuance to Fiscal Year 2008.

In general:

Lapsing Fiscal Year 2007 appropriations receiving new funding in Fiscal Year 2008

No appropriation balances in budgeted funds will be brought forward to the new-year appropriation. Unliquidated encumbrances from Fiscal Year 2007 will be recommitted against the new-year appropriation once PO Roll-Over is complete. Any expenditure posted after Friday, June 29, 2007 will be charged against the new-year appropriation.

Continuing Fiscal Year 2007 appropriations

All unexpended balances (unliquidated encumbrances, unencumbered, unallotted) will be brought forward to the new-year appropriation early in Fiscal Year 2008 (after adjustments and budget balances are verified). Unliquidated encumbrances will be automatically recommitted against the new-year appropriation once the rolled POs have passed budget checking. Expenditures posted after Friday, June 29, 2007 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 29, 2007 wherever possible.

Lapsing appropriations not renewed with a Fiscal Year 2008 appropriation (one month carry-forward)

These appropriations may be extended until Tuesday, July 31, 2007 for the purpose of liquidating obligations properly incurred in Fiscal Year 2007 (the old year). The unliquidated encumbrance balance will be automatically brought forward to Fiscal Year 2008. After July 31st the unliquidated balance will be lapsed.

First quarter Fiscal Year 2008 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 29, 2007.

Billing/AR/Receipts

Remember that all monies recorded in Core-CT as deposited prior to July 1, 2007 are Fiscal Year 2007 (old year) receipts. All monies recorded as deposited in Core-CT on or after July 1st are Fiscal Year 2008 (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 2007 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 29, 2007. Any refunds of Fiscal Year 2007 (prior year) expenditures within the budgeted funds that are not applied and posted in Fiscal Year 2007 will be automatically updated to default to general revenue in Fiscal Year 2008 so that budgets are not increased in Fiscal Year 2008. This automatic updating applies only to budgeted funds.

The billing module will close at 3 PM on Friday, June 29, 2007 for Fiscal Year 2007 transaction processing and will open on Monday July 2, 2007 for Fiscal Year 2008 transaction processing (except for DOCS1, ITDS1 and DASS1, which will be open until 3 PM on Thursday, July 5, 2007 for Fiscal Year 2007 processing).

The AR module will close at 3 PM on Friday, July 6, 2007 for Fiscal Year 2007 transaction processing and will open on Monday, July 2, 2007 for Fiscal Year 2008 activity. Therefore, you will have until July 6th to apply payments to your Fiscal Year 2007 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, 2007 FOR FISCAL YEAR 2007 PAYMENT. Remember that such payments must be processed by the debtor agency no later than Thursday, June 14, 2007 and recorded by the creditor agency no later than Wednesday, June 27, 2007.

For agencies that will be inactivating chartfields such as department values, please keep in mind that any open receivables using these values should be closed out before Thursday, June 28, 2007. This includes preparing a Maintenance Worksheet to close out the item no later than Friday, June 29, 2007. Items should be billed again when the new value becomes available and the Billing Module is opened on Monday, July 2, 2007 for FY 2008.

On Account (OA Entry Type) Payments

All OA on account open item receipts related to Fiscal Year 2007 MUST BE CLOSED OUT BY THE END OF BUSINESS ON TUESDAY JUNE 26, 2007. 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 using the Funds Awaiting Distribution coding and matching it to the OA with a Maintenance Worksheet. OA items not closed by agencies on or before Tuesday, June 26th 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 2007. 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 Friday, July 13, 2007.

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 at close of business on June 22nd.
• The last day to make a payment on a dispatched purchase order will be on Tuesday, June, 26, 2007.
• Access to close all POs that should not roll will be granted through close of business on June 29, 2007.
• Access to the all Purchasing documents will be removed at close of business on June 29th.
• POs will be rolled by the Core-CT Support Team from June 30th through July 4.
• Access to all Purchasing documents will be re-established on July 5.

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 2008 through the close of business on June 29, 2007.

• Prior to Closing a PO, ensure that all vouchers referencing that PO (including reversals and adjustments, which may be paid in the ZERO pay cycle,) have been paid. (Refer to the Accounts Payable schedule below.)
• Close all POs that are completed as soon as possible.
• Do not close POs that have a remaining balance and will be needed to make payment(s) in the new fiscal year.
• If the purchase order has a remaining balance and no further payments are necessary to complete the business transaction a 'Change Order' should be created to bring the PO amount to the amount expended.
• POs that are left in a Business Unit that have a positive remaining balance will be rolled.

The benefits of creating a 'change order' are:

• The 'PO Balance Report' displays the actual expenditures.
• Unexpended funds are returned from the PO to the contract.
• Contracts reflect actual expenditures and allow the unexpended balances to be re-committed on another PO.
• 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. 4/13/2007 to 15 days,
2. 5/4/2007 to 5 days,
3. 6/1/2007 to zero days.

Requisitions

To assist in returning monies pre-encumbered by a requisition the Core-CT weekly process of requisition reconciliation will be run on Fridays and an additional run will been added on Tuesdays, beginning the week of April 16th. Requisition close will run on a nightly basis Monday through Friday beginning June 18, 2007.

The access to create requisitions will be removed from user's profile at the close of business June 22, 2007 and the batch process for requisition sourcing will be discontinued after the scheduled nightly run. Future dated requisitions must not be created in Core-CT.

Agencies should close all eligible requisitions in their business unit by close of business on June 29, 2007. If an agency is currently using an open requisition as a template, the requisition must be saved as a template or it will be closed. Templates will not be affected by the PO roll.

The Core-CT team will update the budget date and the accounting date on the 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 qualifying POs on June 30, 2007. Should the Core-CT team encounter a problem with a PO that was 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 closed POs to the agency for recreation in the 2008 fiscal year.

Core-CT will begin to roll POs on the morning of June 30, 2007 and continue to roll through July 4, 2007.

User access to the Purchasing and Requisition Modules will be re-established on July 5, 2007. In the event that the PO Roll is not completed, a Daily Mail will be issued on the morning of July 5th indicating the estimated time frame remaining for the continued lock out.

New Year POs

Agencies may begin creating new fiscal year POs on July 5, 2007. Agencies should not approve POs until all of the budgets for that PO are in place.

Continuing Funds will not be available until Monday July 23, 2007.

Accounts Payable

Vouchers

• Vendor Payment Cancellations, including those for GIRO payments, must be received in the Accounts Payable Division by 5:00pm Friday, June 8, 2007.
• Vouchers for Inter-agency transfers billed in fiscal 2007, must be approved and budget checked by close of business Thursday, June 14, 2007.
• Interfaced vouchers must be loaded by Monday, June 25, 2007.
• PO vouchers for fiscal year 2007 must be approved prior to the 9:00 am budget check run on Tuesday, June 26, 2007.
• Town Payments must be approved prior to the 9:00 am budget check run on Tuesday, June 26, 2007.
• Reversal vouchers must be approved prior to the 9:00 am budget check run on Tuesday, June 26, 2007.
• Adjustment vouchers must be approved prior to the 9:00 am budget check run on Tuesday, June 26, 2007.
• All non-PO vouchers remaining must be approved prior to the 9:00 am budget check run on Tuesday, June 26, 2007.
• The Comptroller's last "STATE" Pay Cycle for fiscal year 2007 will be run on Tuesday, June 26, 2007 after the 9:00 am budget check run. The last scheduled due date to be processed is June 30, 2007.
• Adjustment vouchers recorded against budgeted funds not paid by June 26, must be reversed and approved and taken off of hold for the ZERO pay cycle to be run on June, 28, 2007. The agency should re-enter a credit memo in the new fiscal year as a refund of prior year expenditure (Budgeted fund, SID 18010, Account 44410) or obtain a refund when no longer doing business with the vendor.
• A "ZERO" Pay Cycle will be run on Thursday, June 28, 2007 after the 9:00 am budget check run, which should allow all unpaid vouchers to be "paid". These vouchers should have a scheduled due date of July 17, 2007.
• Journal Vouchers correcting FY 2007 entries must be entered, approved, and budget checked by 2:00pm on Friday, June 29, 2007. Corrections to prior year expenditures recorded against budgeted funds, not processed in AP by June 29, must be done in GL entering online or spreadsheet GL journal entries by July 13, 2007.
• Any unpaid vouchers that have not been posted should be deleted by the agency on Friday, June 29, 2007.
• Any current year vouchers that remain unpaid, but have been posted will be closed by OSC-APD Staff on June 29, 2007 Agencies will not be notified 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. Ensure that required agency budgets are also available.

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

Claims Authorization Form (CO-512)

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 original 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 8, 2007.

The CO-512 must contain the names of all agency personnel with the final approver 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.

Final Approver Roles -

Commitment Roles:

• Requisition Purchasing Approver
• Purchase Order Budget Reviewer/Approver

Expenditure Roles:

• Voucher Approver
• Alternate Approver

All information must be completed in the designated contact section.

The 'new' box on the CO-512 form should only be checked off at the beginning of each fiscal year. Any changes thereafter must be reflected by checking the 'update' box. The 'effective date' must be the same date as reflected on the Core-CT Application Security Request Form CO-1092. An updated CO-512 form must be submitted at that time.

When submitting an updated CO-512 form all final approvers must be listed. This updated form will supersede all previously submitted forms. Therefore, all employees with final approver roles must be listed on the 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. An updated CO-512 form must be submitted when there is a new agency head.

Encumbrance and expenditure documents may not be processed for the new fiscal year if the authorization form is not received by June 8, 2007.

Payrolls

The biweekly pay period Friday, May 25, 2007 through Thursday June 7, 2007 scheduled for payment on Friday, June 22, 2007 is the final payroll charged to appropriations for Fiscal Year 2007.

Semimonthly and any payrolls which will be paid June 29, 2007 will also be charged to Fiscal Year 2007 appropriations.

Payroll checks dated in July will be charged to Fiscal Year 2008 appropriations.

GL Journal Corrections

Spreadsheet or Online journal entry corrections for Fiscal Year 2007 may be submitted until Friday, July 13, 2007. After that date, no additional corrections will be accepted to Fiscal Year 2007 transactions.

General Ledger for Fiscal Year 2007 will close on Friday, July 20, 2007.

Detailed instructions concerning spreadsheet or online GL 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.

Asset Management Fiscal Year 2007 Year-End Instructions

The Asset Management Fiscal Year 2007 Open Accounting Period will close on Wednesday July 18, 2007.

Agencies must process all Fiscal Year 2007 Financial Adds, Adjustments, Retirements/Reinstatements, Re-categorizations, and Transfers by close of business Tuesday July 17, 2007. After that date, these transaction types will be booked as Fiscal Year 2008 transactions.

Remember that Fiscal Year 2007 transactions recorded in July, up to and including July 17, 2007, must reflect a June 2007 Accounting Date. This will ensure that these transactions will be included in FY 2007 Financial Reports and Statements.

Transaction Loader items for Fiscal Year 2007, that have not been loaded by close of business on Tuesday July 17, 2007, will be changed to error status. The affected assets will have to be entered in Basic Add with all pertinent purchasing, receiving, and vouchering information. Regular review of Transaction Loader is recommended to help minimize year end maintenance.

Asset Management (CO-59)

The Asset Management/Inventory Report/GAAP Reporting Form, CO-59 is an annual report of all capitalized real and personal property owned by each state agency. This report must be submitted by October 1, 2007 and must reflect the sum total of the physical inventory as of June 30, 2007. As of July 1, 2005 all Executive Branch agencies began using the Core-CT Asset Management Module to complete the information requested on the CO-59. A few selected agencies are using the Inventory Module and will be required to report on their stores and supplies inventory to complete the information required for the CO-59.

Agencies not using the Core-CT Asset Management module are still required to report their assets on the CO-59 using their asset management systems.

Executive Branch agencies are expected to use the Asset Management and Inventory queries below to complete the CO-59 form for Fiscal Year 2007. If the values recorded on the CO-59 do not reconcile with Core-CT, the agency must provide a written explanation of the discrepancy in an attachment.

Asset Management Queries
CT_CORE_FIN_AM_COST_POS - Select this query to calculate the positive cost of assets for a range of accounting dates for the CO-59 report.
CT_CORE_FIN_AM_COST_NEG - Select this query to calculate the negative cost of assets for a range of accounting dates for the CO-59.

Inventory Queries (Stores and Supplies)
CT_CORE_FIN_IN_CO_59_RCV - Select this query to calculate the items in inventory for a range of transaction dates for the CO-59.
CT_CORE_FIN_IN_CO_59_DEP - Select this query to calculate the depletions of items in inventory for a range of transaction dates for the CO-59.

The revised CO-59 form is now available for reporting assets by downloading from the OSC website at http://www.osc.state.ct.us/agencies/forms/index.html .

The completed CO-59 should be forwarded to the Comptroller's Office, Fiscal Policy Division, 55 Elm Street, Hartford, CT 06106 Attn: Carol Hagstrom. Questions regarding the completion of the CO-59 should be directed to: OSC.Assets@po.state.ct.us

If you have any questions, please contact the following:

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