05/06 Year End Meeting Reconciliation of Campus Records to State Controller – SAM99 SAM99 Reconciliation and Year End Submission

05/06 Year End Meeting

Reconciliation of Campus Records to State Controller – SAM99

SAM99 Reconciliation and Year End Submission


Agenda Why?

Business Requirement

How and When? SAM99 Primary Functions Transaction Flow and Overview SAM99 Warning Messages Review Transactions Manage Reconciling Factors Create Year End SAM99 File Summary

Where? FOA Web Site


Why?Business Requirement

Section 7900 of the State Administrative Manual (SAM) requires state agencies to prepare a monthly reconciliation of Receipts & Disbursements Budget Balances

to the State Controller’s Office records


How?SAM99 Primary Functions The SAM99 is a tool that was created for

the CSU to meet State mandated reconciliation requirements by… Comparing Receipts and Disbursements

processed at the State Controller’s Office to Receipts and Disbursements recorded by the Campus - R&D Recon

Comparing Balances of funds available at the State Controller’s Office to Budget Balance Available on Campus records – BBA Recon


SAM99 Primary Functions Simply stated, the SAM99 brings

together SCO Records and Campus Records to compare… Receipts and Disbursements

Balances of Funds Available

To enable campuses to meet SAM Section 7900 Business Requirements


SAM99 Primary Functions SCO Records - Receipts, Disbursements

and Balance Available as displayed on the Tab Run

Disbursements

Receipts

Year to Date

Activity

BBA


SAM99 Primary Functions SCO and Campus Records Compared

R&D Recon & BBA Recon

SCO R&D and BBA Same as

Tab Run

SCO R&D and BBA Adj by Campus

Accruals

Campus R&D and BBA

Displayed on SAM99


Transaction Flow and Overview Today’s World - Campus R&D

Transactions processed at the State Controller’s Office (SCO) include… Claims Payroll Plans of Financial Adjustment Controller’s Transfer Cash Remitted


Transaction Flow and Overview Typical flow of Transactions processed at the

SCO - The Rules of the Game -

Campus Records R&D Transaction Campus offsets R&D Transaction with an Accrual

Campus submits Transaction to the SCO

When the SCO processes R&D Transaction… Campus clears Accrual against Fund Balance

Clearing


Transaction Flow and Overview What is Fund Balance Clearing ???? FIRMS Object Code 305022

Important to Know: Campuses recognize the SCO has processed an R&D transaction by making an entry to Fund Balance Clearing on campus records

In other words, to balance the SAM99, campus R&D transactions that have been processed by the SCO must be offset by Fund Balance Clearing

The year to date activity in Fund Balance Clearing 305022 on campus records should equal the year to date amount on the SAM99 Tape for Receipts and Disbursements processed by the SCO

Differences are reported by the SAM99 as Warning Messages


SAM99 Warning Messages

When adjusted SCO Receipts/Disbursements does not equal the campus Receipts/Disbursements, the SAM99 prints a Warning and calculates the difference

WARNING: Campus Records Total does not Equal Expenditures Difference is $

When the adjusted SCO Balance does not equal the campus BBA amount, the SAM99 prints a Warning and calculates the difference

WARNING: Calculated Unexpended Balance does not Equal Campus Records Total Balance Difference is $


SAM99 Warning Messages “Campus Records Total does not Equal

Expenditures” This warning is associated with the first

reconciliation requirement from SAM 7900… The reconciliation of total

Receipts/Disbursements on campus books to total Receipts/Disbursements processed by the SCO, adjusted by campus Assets and Liabilities – also referred to as “Accruals”

Year to date R&D activity on the Controller’s books is compared to year to date R&D activity on the campus books


SAM99 Warning Messages “Calculated Unexpended Balance does

not equal Campus Records Total Balance” This warning is associated with the second

reconciliation requirement from SAM 7900… The State Controller’s Balance adjusted by campus

Assets and Liabilities (Accruals) is compared to campus Budget Balance Available - Campus Budget Balance Forward adjusted by current year Receipts Disbursements and Encs

The balance of funds remaining on the Controller’s books is compared to the balance of funds remaining on the campus books


SAM99 Warning Messages The Receipts/Disbursements warning is the

result of an issue related to R&D Transactions

When there is a warning for R&D, there will be a warning for BBA

Reason: BBA is a calculation that is impacted by R&D transactions

Usually, you receive both messages for the same dollar amount



R & D PresentationSCO Total R&D

Campus Assets & Liabilities

Adjusted SCO Total R&D

Campus total R&D

Expenditure Warning


SAM99 Warning Messages When you receive a Receipts/Disbursements warning, find

out…

Was the Receipt/Disbursement recorded in the wrong fund? If so, reclass it to the correct fund

Was the Receipt/Disbursement recorded in the correct fund? If so, clear the Accrual against FBC If not, record the Receipt/Disbursement against FBC

When the R&D and BBA warnings are for the same $ amount, an Actuals Journal will resolve both warnings

BBA is a calculation that is impacted by R&D transaction


SAM99 Warning MessagesR&D Example…

Campus Receives Cash Debit Cash Credit Revenue

Campus Remits Cash to the SCO Debit Remit in Transit Credit Cash

SCO Posts Cash Remitted – Campus Does Not Out of Balance Situation is created for R&D Warning is generated on SAM99

Actuals JE Needed: Clear the Accrual against FBC

Debit Fund Bal Clear Credit Remit in Transit


SAM99 Warning Messages R&D Example…

Disbursement was not recorded on campus books

SCO posts AD NOAT - Campus Does Not Out of Balance Situation is created for R&D Warning is generated on SAM99

Actuals JE Needed: Record Disbursement directly against FBC Debit Expense Credit FBC


SAM99 Warning Messages Review… One of the primary functions of the

SAM99 is to reconcile Campus Receipts/Disbursements activity with Receipts/Disbursements processed by the SCO

Campuses initiate R&D transactions and make Fund Balance Clearing entries when the SCO processes them

For the SAM99, campus transactions that flow thru the SCO begin with R&D and end with Fund Balance Clearing



BBA PresentationSCO Bal Available

Campus Assets & Liabilities

Adjusted SCO BBA

Campus BBA

BBA Warning


SAM99 Warning Messages If you receive a BBA warning only, there is a

difference between campus and SCO recorded Budget Balance amounts

Remedy… Query the LEDGER_BUDG table to review campus budget entries and identify differences with the SCO

Work closely with your Budget Office to review the issue

As appropriate, clear the difference with a Budget Journal


SAM99 Warning Messages Common sources of BBA differences

include:

Not posting beginning net Budget balances Not posting an Allocation Order or posting it

for a different amount or to a period different from the SCO

Not cross posting a remittance Not posting special budget entries for funds

that roll Project to Date Receipts and Disbursements


SAM99 Warning Messages If you receive R&D and BBA messages for

different dollar amounts, it is the result of a combination of the previously mentioned scenarios

Remedy… Correct each type of error individually using queries and Journals to resolve the issues

Start with the suggested approach for the R&D error message

This strategy resolves all of the R&D difference, part of the BBA difference and identifies the remaining BBA amount clearly


When?Review Transactions Manage the R&D and BBA Recons by

reviewing transactions as they flow from Campus to the SCO

To prepare for year end, Review Transactions routinely as the Fiscal Year progresses - Daily, Weekly and Monthly

Campus Transaction Review SCO Transaction Review


Review Transactions Campus Transaction Review

Keep in mind… Campuses recognize the SCO has processed an R&D transaction by making an entry to Fund Balance Clearing on campus books

The review of Campus FBC Transactions can be facilitated by:

Creating Unique Campus Accounts that map to Fund Balance Clearing

Querying Journal Lines for FBC Object Code 305022 to ensure that campus books remain current with SCO transactions

Using Journal Sources to isolate specific types of transactions that flow thru the SCO


Review Transactions SCO Transaction Review

SCO Transactions can be reviewed by: Printing SCO Journals from ViewDirect Viewing transactions through CIRS/SCO

online ACL Account detail Analyzing transactions by querying the

CSU_SAM99_TAPE table after loading the SCO Monthly Tapes at mid month and at month end

Printing the Tab Run provided to campuses each month from ViewDirect


Review Transactions The State Controller uses Transaction Codes

to summarize and identify different types of entries

SCO entries are formatted to include a posting date, Transaction Code, posting reference and dollar amount

Transaction Codes can be seen on the Tab Run, ViewDirect, CIRS/ACL Account Detail

The CSU_SAM99_TAPE table captures Transaction Codes in Release 050


Review Transactions - Tab Run

SCO Transaction Codes displayed on Tab Run


Review Transactions - CIRS/ACL Acct Detail


Review Transactions – CSU_SAM99_TAPE


Review Transactions – Common SCO Transaction Codes

23 – Budget/Adjustment – Cross Post 24 – Budget/Adjustment – AO’s 33 – Cancelled Warrant 35 – Journal Entry – transmittal 36 – Journal Entry (PFA) 37 – Payroll Clearance 38 – Payroll Accounts Receivable 39 – No Warrant Transfer (Prison Industry/DGS) 47 – Cash Remittance 49 – Claim Schedule Reversal/Void 50 – Claim Schedule


Review Transactions Strategy: Bridge the gap between detail and summary

by breaking the SAM99 recon down into manageable components

Position yourself well for Year End

Associate SCO Transaction Codes with PeopleSoft Fund Balance Clearing Activity (TC-XX = 3058xx)

Query campus FBC Journal Lines and tie campus activity to R&D transactions processed by the SCO

Review transactions routinely as they flow from Campus to the SCO


Manage Reconciling Factors When activity recorded in FBC on

campus books does not match the amount of SCO Receipts and Disbursements on the SAM99, campuses must identify and resolve the Reconciling Factors that comprise the difference Correction Required Timing Difference Year End – No Timing Differences


Manage Reconciling Factors Correction Required Certain Reconciling Factors require

immediate correction PFA coded inaccurately Claim booked against the wrong fund Remittance submitted with inaccurate SCO

revenue account Transaction for another agency charged to

yours Campuses should work with the SCO to

resolve these issues promptly


Manage Reconciling Factors During the year, campuses are required

to Reconcile the SAM99 Identify all differences between

campus and SCO records - i.e. Reconciling Factors

Manage their clearance Reconciling factors are often the result of

a “timing difference” between the posting of transactions on campus records and the SCO’s


Manage Reconciling Factors Creating Efficiency can cause a Timing Difference –

Example…

LCD entries post directly to FBC and create Reconciling Factors every month - One Journal DR: Exp CR: FBC

LCD entries can be identified easily by using a campus specific FBC account – 3058xx (same as SCO TC-37)

These factors clear with the submission of a PFA to the State Controller

Result: SAM99 has out of Balance Warnings, but it is Reconciled

It’s all about Managing the Reconciliation and Timing Differences throughout the Fiscal Year


Manage Reconciling Factors Year End – No Timing Differences During the year, campuses are required

to Reconcile the SAM99 Identify differences between campus and

SCO records Manage their clearance

At year end, campuses are required to Balance the SAM99 Eliminate all Reconciling Factors Accrue all Timing Differences Campus books must match the SCO’s at June

30


Create Year End SAM 99 File Create your year end file when your

June SAM99 matches SCO records Be sure that….

SCO Accrual Reversal File has been loaded, run and reviewed since April close

Reconciling Factors Eliminated Timing Differences Accrued CMP Business Unit = CSU Business Unit


Create Year End SAM 99 File PeopleSoft will create a file that contains data

for your Campus Governmental Funds

On the SAM99 Run Control, be sure “Accrual Reversal” and “Year End File” options are checked

Designate the Data Center destination where your file will be FTP’d and Name the File


Create Year End SAM 99 File


Create Year End SAM 99 File

When you submit your file… Make sure the CO has signed off on your

FIRMS submission and Business Units and Ledgers are in Synch

Use the SCO naming convention for your file FISCAL.MMDDYYA.AGYACR

FTP your SAM99 file to the SCO for final review of the year’s activity

S end email notification to the appropriate authorities


Summary The SAM99 is a CSU mod that enables

campuses to meet state reconciliation requirements detailed in SAM Section 7900

R&D and BBA

Campuses initiate R&D transactions, post them at a Detail Level for Campus Customers, and submit them to the SCO

Campuses acknowledge that the SCO has processed their transactions by making Fund Balance Clearing entries

Therefore… Every SCO and FBC entry represents a campus R&D

transaction at a summary level and can be tied to a detailed Source Document


Summary Strategy: Break the SAM99 Recon down into

manageable components Use PeopleSoft functionality to tie campus FBC

entries to SCO activity Campus specific FBC accounts Journal Sources Query

Review transactions routinely as they progress from R&D to FBC

Reconcile Monthly – Display Reconciling Factors Clear Reconciling Factors promptly Accrue Timing Differences at Year End


Where? For more details about the SAM99

Reconciliation process, check out the FOA Web Site

http://foa.calstate.edu

Find your inner SAM and have a great Year End!

Documents

05/06 Year End Meeting Reconciliation of Campus Records to State Controller – SAM99 SAM99 Reconciliation and Year End Submission