CloseOpen 20032004 Office of the Comptroller

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Close/Open 2003-2004Office of the Comptroller

• Welcome
• Martin Benison- Comptroller
• Mary Maloney- Bureau Director
• Eric Berman- Deputy Comptroller
• Kathy Sheppard- NewMMARS Project

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Close/Open 2003-2004Office of the Comptroller

• Martin Benison
• Comptroller

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• Status of Budget
• CFO Conference
• NewMMARS Project

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Status of Budget

• Timing
• Structure

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CFO Conference

• Postponed until the Fall
• Location to be Determined

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• Project Philosophy
• Project Update
• Department Readiness Assessment
• Labor Cost Management/PCRS
• Vendor/Customer

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Project Update Philosophy

• Focus on Total Cost of Ownership
• Stay Current with Technology
• Business Change Upgradeable

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Project Update General System Design

• General System Designs Complete!
• Functional Designs in Progress
• Development has begun in Fairfax

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Project Update Business Changes

• Vendor Customer
• Grants
• Change in Chart of Accounts
• Budgeting
• Commonwealth Information Warehouse

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Project Update Interfaces

• XML Training
• Interface Requirements
• Interface Workshop

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Project Update Infrastructure

• NewMMARS servers, network switches and firewalls
  complete
• Testing environments set up
• Departmental technical readiness and network
  connectivity is underway

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Project Update Reports

• Reports Requirement Analysis
• Department Reporting Focus Group
• Results

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Project Update Warehouse

• New and Improved Commonwealth Information
  Warehouse for FY 2005
• Begin Planning for
• Upgrades to Departmental Applications
• Upgrades to Web Applications
• Training for end users
• Support from CTR and ITD

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Department Readiness Assessment

• 12 Month Readiness Assessment Complete
• Number of Departments responding- 124
• Number of Locations where MMARS users are-365
• Issues Concerns communicated directly to
  departments -

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Department ReadinessDesktop Requirements

• Internet browser Microsoft IE 5.5 or higher and
  Netscape 6.1 or higher with 128 bit encryption
  and the latest security updates applied
• Anti-virus software installed with the latest
  virus definitions applied
• Operating Systems

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Labor Cost Management

• Replaces PCRS functionality
• Business Requirements Analysis in progress
• Integrated into NewMMARS at release

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Need More NewMMARS Information?

• Contact your department MMARS Liaison
• Inside Magnet visit the NewMMARS website at
• http//www.osc.state.ma.us/newMMARS/
• Use the Contact Us e-mail box at
• NEW-MMARS-PROJECT_at_osc.state.ma.us

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Close/Open 2003-2004Office of the Comptroller

• Mary Maloney
• Bureau Director

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Close/Open 2003-2004

• Late Encumbrances

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Close/Open 2003-2004Encumbrance Management

• May 31 FAD Review
• June 13 Target to Finalize Routine FY2003
  Encumbrances
• June 27 Final Adjustments
• June 30 All FY2003 Documentation to CTR by
  Close of Business

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Close/Open 2003-2004House I or Alternative
Budget Load

• Available in MMARS May 8, 2003
• Pre-Encumbrances
• Encumbrances
• Contracts (No Shells)
• ISAs - No Change
• IEs - No Change

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Close/Open 2003-2004Interim Budget

• FY2004 Business Prior to GAA
• Routine Business
• Payroll
• Rent, Utilities, Leases
• Client Benefits
• Goods and Services
• Appropriations with Concurrence from Both House
  and Senate
• Pay Bills on Time

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Close/Open 2003-2004How Are We Doing?

• 128 departments have delegation and are
  successful
• Commonwealth is paying 90 of bills in 30 days
• EFT continues to expand (36)
• VERY WELL!

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Close/Open 2003-2004Internal Control

• Single Audit of FY2003
• Especially important in 2004
• Managing with less
• Organizational Changes
• Cross training requires documentation
• Constant Communication
• Internal Control Questionnaire
• Complete by June 15th
• Focus This Year
• Cross reference risks to control activities

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Close/Open 2003-2004Internal Control
Example Mass Human Services

• Risk
• An inability to achieve and maintain timely,
  accurate case management practices relevant to
  client care.

• Control Activity
• Ability to receive, screen, and respond to
  reports of program non-compliance
• Dept. Internal Control Plan, pp 14-18

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Close/Open 2003-2004Internal Control
Example Mass Human Services

• Risk
• An inability to achieve and maintain timely,
  accurate case management practices relevant to
  client care.

• Control Activity
• Performance of post-tragedy reviews to identify
  what went wrong and how to avoid future
  occurrence
• Dept. Internal Control Plan, pp 154-180

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Close/Open 2003-2004Internal Control
Example Mass Human Services

• Risk
• An inability to achieve and maintain timely,
  accurate case management practices relevant to
  client care.

• Control Activity
• Development of case assessments and service plans
• Dept. Internal Control Plan,
• pp 50-60

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Close/Open 2003-2004Internal Control
Example Office of Higher Education

• Risk
• Failure of staff to comply with established
  regulations and procedures.

• Control Activity
• Hire competent staff train to implement
  procedures according to the 5 standards of
  internal control.
• Dept. HR Manual, pp 3-15

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Close/Open 2003-2004Internal Control
Example Office of Higher Education

• Risks
• Failure to reconcile various subsidiary ledgers
  to the general ledger.
• Failure to safeguard the assets of the college.

• Control Activity
• Monthly reconciliation of general ledger to
  subsidiary ledger.
• Dept. Controllers Policy Manual,
• pp 15-20, 25

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Close/Open 2003-2004Internal Control
Example Office of Higher Education

• Risk
• Failure to invest the colleges assets in a
  prudent manner.

• Control Activity
• Invest in a manner that reflects the objectives
  of safety, return on investment, and liquidity.
• Cash Investments Manual of Bursar,
• pp 8-40, 48

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Close/Open 2003-2004Revenue Management

• Contingent Fee Contracting
• New E-pay Contract
• Intercepts

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Close/Open 2003-2004Web Applications

• Pay Info-
• web based payroll advice for employees
• Vendor Web
• payment history
• PTXT
• scheduled payments
• EFT sign up form

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Close/Open 2003-2004Office of the Comptroller

• Eric Berman
• Deputy Comptroller

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Close/Open 2003-2004Fiscal 2003 Payroll

• Law--Chapter 149, Section 148
• Pay Employees Within 6 Days of the End of the Pay
  Period
• All Payroll for FY2003 Should be Processed by
  July 15, 2003
• Employee Reimbursement

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Close/Open 2003-2004Accounts Payable Payroll

• State Employees-
• Straight Forward
• Contract Employees-
• Huge Exception
• Time Consuming Cumbersome
• Never Use a PV

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Close/Open 2003-2004GASB 34 Implementation

• GASB 34 / 35 Implementation was a success
• Things learned from 2002 for 2003 close
• We are updating Fixed Asset User Guide
• Capitalization of Software gt 1 million
• Non-GAAP Fixed Assets statewide finding
• Cash
• Capital Leases
• GAAP Packages absolutely need to be in by Monday
  8/4!

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Close/Open 2003-2004

• GAAP Fixed Assets Timing is everything!
• All changes to fixed assets must be in MMARS in
  the fixed assets subsystem within 7 days of
  receipt. All must be in FARS by June 30, 2003.
• All sales / auctions / disposals of assets must
  include any proceeds recorded on the system.
• If none is included system assumes 0.
• All inventories of non-GAAP fixed assets must be
  auditable by June 30, 2003.
• Roll Forward schedule in updated FAUG

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Close/Open 2003-2004

• Fixed Assets
• Capital Leases must be processed with FAs by
  June 30, 2003.
• Use the calculator at http//www.osc.state.ma.us/A
  ccountg/Fixed/LeaseCalculator.htm
• Infrastructure additions disposals (MHD, MDC,
  DEM) must be included in the fixed assets
  subsystem

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Close/Open 2003-2004GASB 34/35

• How it will effect your department- timing
• ALL GAAP PACKAGES MUST BE COMPLETED AND RETURNED
  NO LATER THAN MONDAY AUGUST 4th!
• ALL GAAP fixed assets work will be done by 8/31.
• Initial GAAP audit work for financial reporting
  performed during August
• ALL School of Higher Education independent audits
  are absolutely due on or before October 15, 2003.

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Close/Open 2003-2004FY 03 Audit CAFR Timeline

• Key Dates/GAAP packages
• May 16, 2003 GAAP Distribution I
• June 30, 2003 All Fixed Assets entered into
  MMARS / Fixed Asset Subsystem
• July 11, 2003 GAAP Distribution II
• July 31, 2003 Higher Ed 2003 Activity must be
  posted for FY2003 in MMARS
• August 4, 2003 GAAP Packages due
• NO EXCEPTIONS DUE TO GASB 34

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Close/Open 2003-2004FY 03 Audit CAFR Timeline

• August 8, 2003 Statutory A/P due from Higher
  Education
• September 12, 2003 Higher Education 110H
  reconciliation due, fixed asset and lease
  information due
• October 15, 2003 Independently audited financial
  statements due (Higher Education, Lottery,
  Health Care Security Trust)

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Close/Open 2003-2004

• Ancillary Services Statewide Master Service
  Agreements RFR
• Open to all departments / governments of the
  Commonwealth
• Non audit opinion, non A-133 related services
  from bookkeeping to workers compensation
  calculation
• Departments just need to pick 3 bids from website
  pick best value
• Firms bidding using weighted average /hour per
  service per fiscal year
• SAVES TIME MONEY!

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Close/Open 2003-2004Office of the Comptroller

• Kathy Sheppard
• NewMMARS Project