Streamlined banking newsletter, May 2007 (Issue 10)

Streamlined Banking Newsletter

May 2007 Issue 10
INSIDE THIS ISSUE
1 Important Dates to
Remember
1 Spotlight Go-Live
Implementation
2 Bilateral Netting 2 SLB Query Update 3 Q&A Transition
Session
5 Approved Policy Review 7 Take a Peek! 9 Stabilization Schedule 9 Is your Agency next? 10 Have your Trees been
loaded?
11 Want to be in the
Know?
11 Contact Us!
See Approved Policy Review on page 5

SLBFeedback@sao.ga.gov sao.georgia.gov 404.656.2133
Important Dates to Remember
Transition Session # 8 May 3, 2007 Go-Live Financials Streamlined Banking
May 7, 2007 Stabilization Calls See the Stabilization call
schedule on page 9 Various dates during May
Spotlight: HCM Streamlined Banking Go-Live
HCM Streamlined Banking Go Live on April 25, 2007 was a success!
The HCM system was converted to the new Streamlined Banking processes for the pilot agencies in the early morning hours of April 25, 2007.
All processes went well and the pilot agencies are now working the Streamlined Banking processes in the HCM system.
We want to send out a BIG THANK YOU! to all of our pilot agencies and their staffs. You have all been a great help with the design and testing of the new business processes.
We couldn't have done this without you! Thanks again to our pilot agencies:
State Board of Pardons & Paroles Department of Administrative Services Department of Banking & Finance Department of Audits & Accounts Office of Treasury and Fiscal Services State Accounting Office

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Streamlined Banking Newsletter

Bilateral Netting Deferred for now

The Bilateral Netting process is being deferred due to issues with the AR Update process and will be implemented after fiscal year end.
Bilateral Netting is to be used for transactions between two Streamlined Banking agencies. This process will allow the non-cash movement of funds between the two different agencies and the automatic netting of the receivable and the payable.
Until Bilateral Netting is in place, the following procedure will be used for Streamlined Banking agencies. SLB Agencies will still need to add a distribution code with account 141001 in Accounts Receivable to be used on transactions between Streamlined Banking agencies.
SLB Agencies will still need to add a distribution code with account 141001 in Accounts Receivable to be used on transactions between Streamlined Banking agencies.
The "Billing" agency will create a receivable in AR using the new distribution code as discussed above and AR Update will run during overnight processing.
The "Paying" agency will create a voucher using the vendor ID # of the Billing agency. The invoice number should be the same as the AR Item ID and amount of the billing agency. Voucher data entry should include the accounting template "SBACCTSPAY" in order to affect the new liability account 231001.
The voucher should reflect a payment method of "WIR" and the General Funds Bank of 99999 with the agencies General Funds Transfer Bank Account of 9XXX (where XXX represents the Business Unit number). The voucher is then saved and budget checked.
Once the voucher has a budget status of "Valid", the paying agency should record the Wire payment and communicate by email (attach Query 0AP057B below) to the "Billing" agency that the invoice has been paid. Note: no physical money movement will occur.
The Billing agency should record the deposit and apply the payment in Accounts Receivable.
Net effect of the above entries is an increase to cash and revenue for the billing agency and an increase to expense and a decrease in cash for the paying agency.

Note: InterUnit Payables Query Update
It has been determined that the existing 0AP057_INTERUNIT_PAYABLES query does not identify inter-unit payables owed to Streamlined Banking agencies.
A new query has been developed, "0AP057B_INTERUNIT_PAYABLES_CC", which will identify transactions between Streamlined Banking agencies and Non-Streamlined Banking agencies.
All agencies should run both queries in order to identify all inter-unit payables for the business unit.

Streamlined Banking Newsletter
Questions & Answers Transition Sessions

Page 3

Transition 5 - Questions and Answers
Q1: When the agencies send forms via the internet to SAO Cash Management to make banking related requests, i.e. stop pays, check image, etc. will they receive a response from the SAO Cash Management team that the request has been received?
A1: Yes, the SAO Cash Management team will have an individual assigned to respond to each of the request types and will be required to send an acknowledgement to the requesting agency.
Q2: Will you still be able to process a check void/reissue on the operating account?
A2: No, you will no longer have access to the bank proprietary accounts. You will be required to access the SAO/Streamlined Banking internet site and submit a request form online that will be processed by an individual from the SAO Cash Management team. In the interim, you will still have access to stop any checks made out of your Operating account before Streamlined Banking.
Q3: What if I have the actual check in my possession?
A3: You will still need to send the request to the SAO Cash Management team and you will also need to manually mark the check void and mail to the State Accounting Office, Attn: SAO Cash Management Team.
Q4: The agencies have been directed to set up a 407ALLOT department Chartfield value for Commitment Control purposes. Don't we need an organization code for each program? Where do I put it in my budget tree?
A4: Please refer to the tree instructions on page 10 of this newsletter. . Q5: Who will SAO Cash Management send the directions to on the 407ALLOT tree set-up?
A5: Please refer to the tree instructions on page 10 of this newsletter.
Q6: If you do decide to reallocate the revenue once it has hit the 407ALLOT or Administrative Account, do you use a journal entry to post the transactions?
A6: Yes.
Q7: When you record expenditures, they are recorded at the sub-program level. If you choose to allocate the GL entry that the BudgetNet interface creates to other sub levels, how does this work with Commitment Control?
A7: The Commitment Control Allotment ledger will still have the central point at the program level not the subprogram level.
Q8: In the first example of revenue collection, the funds deposited in the 102400 (Agency Depository GL account) is moved to the agency GL cash account in the nightly allocation process. In the second revenue collection example, the funds deposited in the 102400 (Agency Depository GL account) are moved to Treasury in the nightly allocation process. Why doesn't this second example show up in our 101005 agency GL cash account?
A8: In the second example the fund source code 10200 is used in recording the deposit which tells the allocation process that this money belongs to Treasury. The difference in the transactions is that one is recording revenue the agency can use to run its business; while the other records agency revenue that must be remitted to Treasury by State Law.

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Streamlined Banking Newsletter

Questions & Answers Transition Sessions cont...

Q9: What if we need to refund money we have already remitted to the Treasury? Is it refunded from fund source 10200 at the Treasury or the GL cash account 101005?
A9: You will need to do a reversal entry on PeopleSoft that will reverse posting to 10200 and run a reversing or negative allocation to the 101005 GL cash account. You would then put the correct deposit into the system to get it allocated to the 101005. The reversing entry takes it off Treasury's books. The correct deposit moves it to 101005.
Q10: Will an allocation be triggered anytime you deposit cash?
A10: The physical deposit of cash in the bank does not trigger the Allocation. The way the deposit is recorded in PeopleSoft will trigger the allocation. (i.e. as 102400 agency cash or 10200 revenue owed Treasury)
Q11: How will this allocation process for cash affect Payroll transactions? If I have a check I collected from an employee for a payroll overpayment, where will I deposit the check and record the transaction?
A11: When an agency collects money from an employee because they were overpaid, they create a negative manual check in HCM. The reversal will cause a debit to be posted to 101005 on the agency's books representing agency cash.
When the employee's personal check is deposited, it will have to be posted to the Bank of America depository account (102400) and recorded in PeopleSoft. The credit side of this entry will have to be made to 101005 agency cash. This effectively reverses the original payroll debit to 101005, leaving only one cash debit. The positive pay file, which we transmit to the bank, will include the negative manual check and the bank will use this information to adjust the amount of money transferred from the concentration account when funding the next payroll, effectively reducing the draw-down.
Agencies will be required to actually post the entry, as opposed to the current practice, because a bank exception will exist on the depository account until the deposit is recorded in AR.
Q12: How does Streamlined Banking plan to move deposited funds from the local depository accounts to the Bank of America State Concentration account? Will the agency need to initiate a transfer of funds from the local depository if it is not a Bank of America account?
A12: We are looking at ways to automatically move funds to the State Concentration Account but for the initial phase of Streamlined Banking, we will need the agencies to initiate the transfer.
Q13: Will the sweep be automatic if the local depository is a second or additional Bank of America account i.e. a revenue collections account (s)?
A13: Ideally we would like for those accounts to sweep automatically, but we will address these types of issues with each agency in individual One on One session prior to rolling any agency onto Streamlined Banking. The SAO Cash Management team plans on having a dedicated deployment team in place that will work with the agencies to address these issues and to determine how to integrate into the Streamlined Banking process.
Q14: What if the receivable in an interagency transaction is a federal receivable and we don't want the funds to go into account 141001?
A14: Through the bilateral netting process and between Streamlined Banking agencies, all open receivables will be automatically matched to a payment voucher; consequently there would be no open receivable.
Q15: If you add a department XXXDISBIU and update Trees for an inter unit accounting entry created in AP to post a department and a project, will you still be able to run a cash report?
A15: Yes, you will be able to run a cash report, but it will not be distributed by project, department or program. We are asking each agency to determine if any reports, queries, or allocations are based on project, department or program on the cash line.

Streamlined Banking Newsletter

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Approved Policy Accounts Payable Disbursements

Policy Number CM-100004

Section Name Cash Management

Policy Name
Accounts Payable Disbursement

Effective Date February 28, 2007

I. Purpose This section will provide guidelines for the Accounts Payable disbursement method for Streamlined Banking agencies. Non-Streamlined Banking agencies shall follow policies and procedures relevant to their current disbursement activities.

II. Background In accordance with Section 50-5B-3 of the O.C.G. A., the State Accounting Officer shall, "Prescribe the manner in which disbursements shall be made by state organizations." Accounts Payable disbursements should be handled in such a manner as to ensure that funds are properly charged to correct account, vouchers are budget checked, and that laws and regulations governing disbursements are followed. Under a Centralized Disbursement Center, there will be several changes affecting Streamlined Banking agencies. First, disbursements for Streamlined Banking Agencies will be processed through two main disbursement banks. (Operating and Payroll Accounts). Secondly, manual checks will no longer be utilized. Third, express check requests will be submitted to SAO for processing. Additionally, physical changes on Accounts Payable checks for Streamlined Banking agencies will be as follows:
(1) The issuing authority on Accounts Payable checks will read:
State of Georgia Operating Account 200 Piedmont Ave., Suite 1604, West Tower Atlanta, GA 30334
(2) The State of Georgia's seal will appear on the checks. (3) The agency's name will appear on the top left corner of the check. (4) Treasurer's signature will be the authorized signature on operating checks.

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Streamlined Banking Newsletter

Approved Policy Accounts Payable Disbursements

III. Policy

A. Agencies should use electronic payment methods (EFT) for vendor payments whenever possible. For
those vendors that do not accept EFT payments, agencies should select the system check payment method.
B. Invoices must be matched with the appropriate supporting documentation prior to approval for
payment.
C. Agencies must pay all invoices by the due date. When discounts are provided, agencies are
encouraged to apply the discount when feasible.
D. Accounts Payable vouchers must be correctly entered and approved by proper authorities of the
agency before the payment is processed. (See UPK-Module 2)
E. Agencies should use the control group feature when entering vouchers in PeopleSoft to review all
vouchers for accuracy prior to submission.
F. SAO Cash Management Group will schedule pay cycles to run nightly for all Streamlined Banking
agencies.
G. Agencies will no longer receive physical checks or check copies. H. Express check functionality will be administered by SAO for Streamlined Banking agencies. I. Fed wire may be used only for high-dollar, low-volume payment in excess of $100,000, when same day
settlement is required. Only OTFS will be able to do Fed wires. (See Bank Settlement Policy) J. Purchasing cards must be used as prescribed by DOAS guidelines.
http://statepurchasing.doas.georgia.gov/vgn/images/portal/cit_11783501/37106590pcard.pdf

For more information on this policy, visit the Streamlined Banking website @ http://sao.georgia.gov/00/channel_createdate/0,2095,39779022_59931115.00.html

Special Handling Codes on Accounts Payable Payments

Agencies will use special handling codes on an exception basis if an Accounts Payable check must be returned to the agency for distribution. The Special Handling Codes that will be available to Streamlined Banking agencies are listed below:

RP WH TP UT JS AG

Default code for Regular Payments Payroll Withholding Payments Travel Payments Utility Payments - Jail Subsidy All other payments which should be returned to agency

For more information on this policy, visit the Streamlined Banking website @ http://sao.georgia.gov/00/channel_createdate/0,2095,39779022_59931115.00.html

Streamlined Banking Newsletter

Page 7

Take a

peek at attendees of Transition Session #7 meeting on April 5, 2007

Pilot Agency staff attend Transition Session # 7

Participants from Banking & Finance are happy to be on the team!

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Streamlined Banking Newsletter

Take a

peek at Operational Testing held on March 29, 2007

Agency Testers hard at work on March 29, 2007!

We appreciate our Agency partners help with operational testing!

Streamlined Banking Newsletter

Page 9

Stabilization Sessions for Streamlined Banking Go-Live!

SAO will be conducting Stabilization sessions during the first eight weeks of Streamlined Banking. Users may call in to the toll free number listed to join in the conversation. After dialing the toll free number you will be instructed to dial room #. Be sure to include the * before and after the room number.

Dates
Week 1: 4/26 (HCM only) Week 2: 5/1, 5/3 (HCM only) Week 3: 5/7, 5/8, 5/9, 5/10, 5/11 Week 4: 5/14, 5/15, 5/16, 5/17 Week 5: 5/21, 5/23, 5/25 Week 6: 5/29, 5/31 Week 7: 6/6 Week 8: 6/13

Logistics
11am 12pm
Meeting in 1004 West Tower
Call In: 1-866-899-5399 Room #: *7293148* (must enter * before and after room number)

Is your agency next?
The State Accounting Office and the Office of Treasury & Fiscal Services are now in the process of determining how the Streamlined Banking initiative will be rolled out to all agencies. You may remember back in December 2006, we initiated a survey to all state agencies where we asked questions concerning your banking practices and bank accounts. All surveys were returned to us and we have now compiled all agency data. This data, in conjunction with other factors will be used to determine the groupings and timings of agencies converting to Streamlined Banking. If your agency would like in the next conversion group, please email SLBfeedback@sao.ga.gov

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Streamlined Banking Newsletter

Have your Trees been loaded?
As part of the Streamlined Banking initiative, pilot agencies must set up three new departments: XXXSLB, XXXALLOT and XXXDISBIU (where XXX is the agency's business unit).
XXXSLB will be used solely as a summary level for streamlined banking department values XXXALLOT and XXXDISBIU on the BCM_ORG tree.
XXXALLOT is needed in order for the BudgetNet Interface to create the appropriate accounting entries for State Allotments in People Soft General Ledger.
XXXDISBIU is needed for the interunit process in Accounts Payable to create a valid journal line when affecting the agency cash account. This Department will be used on all AP payments on the cash line. The payment process will utilize an interunit template to establish the accounting entries and will not inherit the Department value from the voucher due to Department not being a balancing ChartField in PeopleSoft.
The XXXSLB value will be added to the BCM_ORG tree at the BD_ APPROP level. The XXXALLOT and XXXDISBIU values will be place below the XXXSLB value on the BD_ORG level. Please submit the above tree request to trees@sao.ga.gov.
Please refer to UPK topic 6.1.1 for instructions on adding Department values in PeopleSoft.

Two Reminders Regarding Other Chartfields:
1. The new BudgetNet Interface to the General Ledger also requires Streamlined Banking agencies to have Funding Source 01 and Project XXX01 (where XXX is the agency's business unit).
2. To create a valid journal line when affecting the agency cash account the interunit process in Accounts Payable also requires a new project XXXDISBIU (where XXX is the agency's business unit) to be set up. Please see the Transition Session #6 presentation on the SAO website for further details.
Please note additional instructions: Once the values have been added, please submit a tree request to have the XXXDISBIU add to the BD_ORG level on the BCM Project tree.

Streamlined Banking Newsletter

Page 11

Want to be "In the Know"?
"FS Official Communications" are e-mailed on a regular basis to users who have subscribed to the Listserv system. One way to be "in the know" and receive these communications is to sign up for a Listserv!
Put yourself in the "LOOP"! There is no cost to subscribe and it's easy to do! You can also unsubscribe at any time. Please be aware, however, that the more elists (modules) that you sign up for, the more emails you will receive in your inbox. We recommend only signing up for the lists applicable to your job duties.
Listserv is one of the most effective ways for you to obtain information and communications relative to your PeopleSoft system. If you have not already done so, sign up now.
Available lists include: Financials -AP, AR, AM, GL, PC, Labor, Budget, and PO HCM Human Resources, HR Budget, Payroll and CSB's
Visit the SAO Website and click Financial Systems > Related Links > ListServ and subscribe today!

For more information on the Streamlined Banking Project or comments/ questions about the Project Newsletter, contact the communications team at: SLBFeedback@sao.ga.gov
Additional information can also be found at the SAO Website by clicking on the Streamlined Banking link:
http://sao.georgia.gov
State Accounting Office Statewide Accounting 200 Piedmont Ave., Suite 1604, West Tower
Atlanta, GA. 30334 - Phone: 404-656-2133 - Fax: 404-463-5089