MMARS Liaison Meeting Jan. 24,2006

1
MMARS Liaison Meeting Jan. 24,2006

• Agenda
• Introduction
• System performance/functionality update
• Training update/KC update
• Discounts
• New policy
• -EX, ER
• -Asset Impairment

2
Agenda

• Procurement/Accounts Payable
• -Revised Intergovernmental Policy/Managing
• Intergovernmental Business
• -ISA Tips
• -RPO Reminder
• -Disbursements
• Payroll
• Open Q A

3
System Update

• System Availability

4
System Update (cont.)

• System Performance FY06
• MMARS Remediation Plan underway
• Focus on improving batch performance to assure
  system up on-time
• Significant reduction in critical/serious bugs
• New approach to delivery and testing of software
  at CGI-AMS and MA

5
System Update (cont.)

• Planned Improvements in FY06
• Fix packs focused on stability and scalability
• Pro-active monitoring of performance
• Focus on total nightly cycle not just Financials
  and LCM HRCMS, CIW

6
Training Update

• All e-learning modules and job aids will be
  updated by end of January
• New Training Development
• Reconciliation Training
• Appropriation Management
• Security Officers Briefing

7
New Sessions Scheduled

• IL Federal Grants Management
• IL Intro to LCM Warehouse
• KC Overview

8
KC Changes/Enhancements

• The mouseover tag for the FY Updates tab was
  revised to read Link to Fiscal Year Memos
  Page.
• Quick Links navigation is now consistent on all
  business area pages.
• Accounting period begin and end dates are now
  posted on the Knowledge Center News and in the
  E-updates

9
KC Changes/Enhancements

• A Master Index has been created for each business
  area. It contains, on one page, links to all of
  the documents relating to that business area, and
  is linked from the Quick Links menu on the
  business area home page.

10
KC Changes/Enhancements

• For example, the Index link on the Accounts
  Payable home page brings up a page of links to
  all of the
• Hints
• Job Aids
• Policies and Procedures
• Presentations that relate to Accounts Payable.

11
KC Changes/Enhancements

• Procedure to cross reference items in the
  Knowledge Center subject matter index has been
  implemented.
• Knowledge Center Overview webcast has been
  developed. It is offered monthly, and is a
  learning pre-requisite for new hires.
• A Test Your Knowledge Center IQ self-test and
  the answers have been posted to the KC. Webcast
  participants are asked to take this test after
  the webcast to reinforce what they have learned

12
KC Changes/Enhancements

• Initiating regular schedule of monthly meetings
  with Bureaus to review KC and Internet content
  for accuracy and timeliness, as well as other
  communication requirements such as the News and
  E-update.
• All lists of documents in the Knowledge Center,
  when displayed in the "Show All" view, can now be
  sorted by Date as well as the default sort by
  Topic. Examples of this are the E-update Index,
  Policies, and Forms.
• The "Search" function has been refined

13
Discount FY06 Status

• Discount Activity
• Quarterly Bill Paying Statistics

14
Discount Activity

• Study of Discount Opportunities in MMARS

15
Annualized Discount Opportunity 9 Month data set
Extending terms and improvement in efficiencies
28.2M
Enforcement of existing Terms and improvement in
efficiencies
4.93M
As-Is
868K
9 Month Analysis X 1.33 to annualise ,
assuming pro-rated spend
16
Current Discounts

• Commonwealth receives discounts on 3.56 of its
  transactions, from 3.47of suppliers, resulting
  in 1.38 of discount savings.
• Over 96 of transactions do not receive
  discounts.
• Discounts were not available from 96.4 of
  vendors

17
Maximize Discounts

• Pay Bills Timely
• Utilize Existing Discounts
• Standardize Discount Terms
• Maximize Discounts in All Contracts
• Save Money

18
Quarterly Bill Paying Statistics - Paid within
30 Days
19
Quarterly Bill Paying Statistics - Paid within
30 Days
20
Commonwealth Second Quarter FY06 - Discount Report
21
Commonwealth Second Quarter FY06 - Discount Report
22
FY06 - Discount Information
23
Standard Discount Terms should be included in all
Solicitations

•         10 days - ___
•        15 days - ___
•        20 days - ___
•        30 days - ___  

24

• Questions

25
New Accounting PoliciesExpenditure
Corrections, Expenditure Refunds, Asset Impairment

• New EX and ER Policy

26
Expenditure Corrections (EX) Policy

• Key Elements
• Purpose is to correct chart of account element
  issues or mistakes
• Documentation is retained at department
• Comments field will be used for justification
  containing payment reference, errors being
  corrected, authority for correction and
  explanation
• EXs workflowed to General Accounting Bureau

27
Expenditure Corrections (EX) Policy

• EXs approved for following scenarios
• Original expenditure requires a change in chart
  of account element or spending account
• Must be same budget fiscal year
• On capital corrections, positive net liquid
  assets will not result from change
• Account where spending will be moved
  expenditure is allowable and sufficient funds
  available

28
Expenditure Corrections (EX) Policy

• EXs approved for following scenarios
• Does NOT involve payroll corrections (AA-CC
  object classes)
• Does NOT cross departments
• Original subsidiary from which expenditure was
  made is consistent to where expenditure is being
  moved e.g. not corrections from EE to HH
• Use comments field to include relevant
  references and reasons for EX

29
Expenditure Corrections (EX) Policy

• General State Finance Law in re EXs
• Expenditures can only be for purposes of accounts
• Departments cannot incur a liability in excess of
  appropriation or allotment
• Cannot sign a contract in anticipation of law
• If appropriation is terminated, contracts and
  spending must be terminated or suspended

30
Expenditure Refunds (ER) Policy

• Expenditure refund (ER) represents a return of
  funds paid to a vendor
• Not for payroll use
• ER must represent cash received and deposited in
  the departments sweep account and posted to
  MMARS
• Must be returned to the original appropriation

31
Expenditure Refunds (ER) Policy

• Circumstances requiring an ER
• Department and vendor determine that the vendor
  was overpaid
• Department and vendor determine that theres a
  duplicate payment
• Department received a refund for goods returned
• Department requested a full or partial refund as
  an adjustment for dissatisfaction

32
Expenditure Refunds (ER) Policy

• Procedure
• Post with an event types AR99 and AR 32
• ERs 5,000 will workflow to General Accounting
  Bureau for review
• ERs Assurance Bureau
• Documentation maintained at department
• Use Comments Field to Provide Relevant
  Information e.g. vendor code, explanation
  other relevant data
• ERs must occur in current fiscal year for type 1
  appropriations

33
Asset Impairment Policy

• Implemented due to GASB 42
• 2 Items Covered
• Asset Impairment
• Embezzlement losses and recoveries
• An asset is impaired if BOTH
• (a) the decline in the ability to use an asset is
  large in magnitude and
• (b) the event is outside the normal life cycle of
  a capital asset.

34
Asset Impairment Policy

• GASB 42
• All impaired assets if significant (greater than
  100,000 in value) need to be reported to the
  Office of the Comptrollers General Accounting
  Bureau within 7 days of event occurrence.
• For all unaccounted for variances, losses,
  shortages and or thefts of funds or property, the
  rules established under Chapter 647 of the Acts
  of 1989 apply.

35
Asset Impairment Policy

• GASB 42 Examples of Impairment
• A wing of a building is no longer useful because
  of newly discovered asbestos.
• An information system can only run at 80 instead
  of 100 due to obsolescence, enactment or
  approval of laws or regulations or changes in
  environmental factors.
• Impairment exists if these factors are
  significant (100,000 effect) AND the occurrence
  is unexpected.

36
Asset Impairment Policy

• Role of the State Comptroller
• Determine with Department if impairment exists
• Work with department to adjust the asset value on
  MMARS using FI or FD documents
• Insurance Recoveries separate transaction
• Cash Receipt (CR) transactions will be used with
  a revenue source code 6900 with separate
  documentation forwarded to the Office of the
  Comptrollers General Accounting Bureau, which
  will track these payment

37
Procurement/Accounts Payable

• Revised Interdepartmental Policy
• ISA Tips
• RPO reminders
• Disbursements

38
Revised CHBK Policy

• Use of Smart Doc ID
• Seller
• - ITI using IE Doc ID
• Buyer
• - ITA using ITI Doc ID

39
Interdepartmental Business

• COMMUNICATION!
• COMMUNICATION!
• COMMUNICATION!

40
ISA Tips

• Hand out

41
RPO SIG Table Reminder

• When an RPO commodity line and its associated
  accounting line is modified to decrease to the
  expended amount, close it, or give the commodity
  an earlier end date, all open SIG records must
  be put on HOLD. If the open SIG records are not
  put on HOLD, RINS will generate successfully but
  when the associated PRMs generate, they will be
  in reject and be for 0. 0 PRMs will continue to
  generate for the life of the encumbrance. 

42
RPO SIG Table Reminder

• In the example below, the RPO modification was
  put to final status 9/28/05 however, the (at the
  time) open SIG records for the 9/28, 10/27, and
  11/28 payments were not put on HOLD thus
  successful RINS were created. Once the RINS
  generate, there is not a way to put those
  specific records on HOLD thus rejected 0 PRMs
  will continue to generate daily in the MMARS
  nightly cycle as long as the encumbrance is in
  existence.

43
RPO SIG Table Reminder
44
RPO SIG Table Reminder
45
DISRQ Disbursement Request

• Queries to the Disbursement Request table should
  be done periodically to check for scheduled
  payment dates that are incorrectly assigned.  
• Reasons for inaccurate scheduled payment dates
  are 
• Miss typed scheduled payment date when assigned
  by user i.e. Meant to key 12/09/2005, but
  keyed 12/09/2006.
• Service dates of 7/1/2005 6/30/2006. MMARS
  will be automatically assigned a scheduled
  payment date of 7/28/2006.
• Inaccurate Service To or Invoice Date.

46
DISRQ Disbursement Request

• How to Query DISRQ
• From the page search menu, type page code DISRQ
  .
• Once in DISRQ, select search and pick a Schedule
  Payment date out in the future..
• Insert a symbol to search for payments greater
  than (xx/xx/xxxx) or select a specific scheduled
  payment date.
• Select user hold of No
• Choose other fields to narrow down your search.
• Select OK

47
DISRQ Disbursement Request

• Make changes to Scheduled Payment Date
• Once in Disbursement Request, choose the payment
  request from the grid, do not click on the
  payment link and open Disbursement Control
  window.
• Go to the Scheduled Payment date field and change
  date and save. 

48
DISRQ Disbursement Request

• Policy
• The Commonwealth's policy for the determination
  of a payment due date is as follows
• A specific payment date The date according to
  contractual agreements, state plans, state
  regulations, or an early payment discount. When
  the payment date is a contractual, state plan or
  similar payment, the payment date should be
  entered in both the Vendor Invoice Date field and
  the Scheduled Payment Date field of the payment
  request transaction.

49
DISRQ Disbursement Request
In the absence of a specified payment date, the
default payment date will be approximately 28
calendar days after the later of a)      The
date services were rendered or goods received, or
b)      The date of receipt of an
invoice.   CHECK SCHEDULED PAYMENT DATE FOR
ACCURACY PRIOR TO SUMITTING PAYMENT REQUEST

50
Payroll

• Tax items that impact tax withholdings and
  employees net earnings
• Qualified Transportation Transit Pass Benefit is
  now PreTax for both MA and FED- the maximum
  pretax benefit is 105. HRCMS makes all pre-tax
  calculations for T Passes. Employees will see
  less MA taxes taken.

51
Payroll

• Retirement 2000- MA DOR allows the first 2000 of
  combined Medicare and Retirement contributions to
  be pre-tax. HRCMS will automatically make the
  calculation (not new). As this is the
  beginning of the new tax year, Commonwealth
  employees will have not met the 2000 threshold
  therefore will have less MA taxes taken until the
  2000 threshold is met.
• For listing of 2006 MA and Federal tax changes,
  limits and exclusion amounts see CTR Tax Update
  Memo (to be issued shortly)

52
W2 General Information

• The IRS requires W2s to be in the mail by Jan 31.
  Generally, CTR and ITD begin W2 mailings the week
  where Martin Luther King Day begins. For 2005,
  all W2's will be in the mail by 1/21/06. allow
  for USPS delivery time. 
• 2005 W2 brochures are available on CTR KC.
• HMTAX007 report to reprint W2s from Doc Direct
  will not be loaded until 1/27/06.

53
Payroll Refunds

• When cash is received in calendar 2005 for 2005
  activity, W2Cs are needed to correct 2005 W2s.
• When cash is received in calendar 2006 for 2005
  activity, W2Cs are not needed. The Balances will
  be applied to 2006 W2 balances.