CFO MEETING

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CFO MEETING

• January 26, 2011

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CFO MEETING

• Agenda

• Financial Reporting
• WCO AP Transformation
• Travel Project
• 3 Rule
• PeopleSoft Update
• Agency Needs
• Questions

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CFO MEETING

• Financial Reporting

• FY 2010 CAFR and BCR are done!
• Thanks for your help.
• See SAO website for copy
• Single Audit in progress and on schedule

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CFO MEETING

• Financial Reporting

• A review of journal entries processed revealed
  the following

Type AJE Budget Fund EW Fund Gen Fund Other Funds Grand Total
Entity Wide Conversion 86 86
General Fund Conversion 154 154
ISF Entries 118 118
PCA 124 1 5 130
Tie Out Beg FB 242 51 93 386
Other (Ending FB, Timing, Other Funds, etc.) 65 3 136 204
Included/ Excluded/ Reclassifications 154 14 192 411 771
Audit Entries 91 1 92
Grand Total 676 100 402 763 1,941
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CFO MEETING

• Faster CAFR
• External parties are pushing for CAFR earlier
  than 12/31
• Planning for FY 2011 reporting season
• Includes policy updates such as lease accounting
• GASB 54 implementation
• Fund Balance Account usage
• Fund Balance Account Reconciliations
• Fund Source Standardization

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CFO MEETING

• Working Capital

• AP Transformation
• New Executive Order for Prompt Payments
• Issued December 21, 2010
• Replaced by policy to be issued by SAO
• Pay electronically
• Pay on time
• Take discounts if available
• Vendor Conversion Process
• Check to ACH conversion
• New Vendor Maintenance forms

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CFO MEETING

• Progress Reporting

• CHK and EFT payments by vendor class
• Allows SAO to show how well the state overall
  doing converting to ACH

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CFO MEETING

• of payments by type and BU
• Will allow us to demonstrate how successful your
  agency has been in conversion process.

9
CFO MEETING

• Travel Project

• Travel Management Company
• Online booking and expense reporting tools
• Travel Policy revisions
• Mileage rate change memo

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CFO MEETING

• 3 Rule

• TAX INCREASE PREVENTION AND RECONCILIATION ACT OF
  2005 - IRS SECTION 3402(t)
• Generally requires 3 withholding on payments for
  property and services
• Invoice for 10,000
• Vendor paid 9,700 by agency
• IRS paid 300 by agency
• Vendor paid in full
• Applies to payments made after December 31, 2010
  (revised to 12/31/2011)
• Applies to all U.S. Government agencies, state
  governments, and all subdivisions or
  instrumentalities of state government

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CFO MEETING

• 3 Rule

• EXCEPTIONS
• Made by a political subdivision which makes less
  than 100 million in annual payments
• Payments otherwise subject to withholding
• For retirement benefits, unemployment
  compensation, or social security
• For real property
• Public assistance, made on the basis of need or
  income (but programs based on age (i.e. Medicare)
  are included)
• To employees in connection with service, such as
  retirement plan contributions, fringe benefits,
  expense reimbursements

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CFO MEETING

• 3 Rule

• PAYMENT THRESHOLD
• Required to withhold on payments of less than
  10,000.
• TRANSITION RULE
• Payments under contracts in effect six months
  after final regulations issued and not materially
  altered are not subject to rules
• Proposed regulations will address contract
  renewals
• HOW TO REPORT
• Withholding required at the time of payment
• Withholding reported to Form 1099-MISC
• FAILURE TO WITHHOLD
• Government becomes liable for the tax.

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CFO MEETING

• PeopleSoft Update

• PeopleSoft Functional Team Reorganization
• New leadership
• New technology
• Renewed focus on customer
• Customer Service Center Specialists
• UPK Survey

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QUESTIONS