VIRGINIA CORRECTIONAL ENTERPRISES

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VIRGINIA CORRECTIONAL ENTERPRISES

• FUNDING AND OPERATIONS

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VCE IS A SERVICE AREA OF THE DEPARTMENT OF
CORRECTIONS

• ESTABLISHED IN 1933

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ABOUT VCE STAFFING

• 175 FTES
• 30 TEMPORARY EMPLOYEES
• OVER 1,500 INMATES

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ABOUT VCE FACILITIES

• 23 SHOPS
• 14 INDUSTRIES
• 16 CORRECTIONAL FACILITIES
• 2 WAREHOUSES
• 2 COPY CENTERS

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ABOUT VCE PRODUCTS

• WOOD AND METAL FURNITURE
• SEATING
• OFFICE SYSTEMS
• LICENSE PLATES/TEMP TAGS
• CLOTHING
• SHOES
• VINYL BINDERS/SIGNS

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ABOUT VCE SERVICES

• 2 COMMERCIAL LAUNDRIES
• MICROFILM/DOCUMENT CONVERSION
• PRINTING AND XEROX COPY CENTERS
• EMBROIDERY SILK SCREEN
• OPTICAL (DOC ONLY)
• DENTAL (DOC ONLY)

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FUNDING

• VCE IS AN INTERNAL SERVICE FUND
• VCE RECEIVES NO FUNDING FROM THE GENERAL FUND
• CASH FLOW IS GENERATED FROM COLLECTIONS OF SALES
• CUSTOMERS PAY VIA IAT, EDI, CHECK OR CREDIT CARDS

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CUSTOMER BASE

• VCE CAN SELL TO STATE AGENCIES, COMPONENT UNITS
  OF THE COMMONWEALTH, TO INCLUDE HIGHER EDUCATION,
  CITIES, TOWNS, COUNTIES, FEDERAL GOVT. AND
  NOT-FOR-PROFITS.
• CAN ENTER INTO CONTRACTS WITH PRIVATE SECTOR
  (P.I.E. OR SERVICE AGREEMENTS)

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REVENUES

• PROJECTED REVENUE FOR FY08 50 MILLION
• FY05 FY07 REVENUES AVERAGED OVER 48 MILLION/YR.

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FY07 SALES DATA

• 29.3 MILLION TO STATE AGENCIES
• 17 MILLION TO HIGHER ED.
• 2.7 TO OTHER

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AUTOMATED SYSTEMS

• CARS (CASH BASIS)
• E-VA
• FAACS
• LAS
• CIPPS (ENTERED BY DOC ON OUR BEHALF)
• SYTELINE (ACCRUAL BASIS)

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SYTELINE
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SYTELINE

• A FULLY INTEGRATED MANUFACTURING AND ACCOUNTING
  SYSTEM
• ON-LINE REAL TIME
• VCES PRIMARY INTERNAL CONTROL
• RECONCILED TO CARS, FAACS LAS
• INTERFACES TO E-VA AND CARS (VENDOR PAYMENTS ONLY)

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SYTELINE MODULES
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MODULES

• GENERAL LEDGER/ FINANCIAL REPORTS
• ORDER ENTRY/ ACCOUNTS RECEIVABLE
• PURCHASING/ ACCOUNTS PAYABLE
• JOB INVENTORY COSTING/ INVENTORY CONTROL

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MODULES NOT UTILIZED

• FIXED ASSETS (DEPRECIATION RECORDS GENERATED IN
  FAACS WITH MONTHLY JES IN SYTELINE
• PAYROLL (JES ENTERED BASED UPON CIPPS)

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SYSTEM ACCESS

• EACH USERS PERMISSIONS ARE DEFINED BY THEIR
  ROLE/ DEPARTMENT
• REQUESTS TO ADD/DELETE USERS MUST BE IN WRITING
  (E-MAIL) TO VCES IT DEPARTMENT

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THE MATRIX

• ERP 6.01.00 vce
  Virginia Correctional Enterprises
  labarber 05/05/08 140340
• USER-R
  User Authorizations Report
  Page 1
• User Name
• -------------------------
• zlooker
• Function Run Add
  Update Delete View Costs
• Accounts Payable Yes No
  No No Yes
• Accounts Payable Payments Yes No No
  No Yes
• Accounts Payable Posting Yes No No
  No Yes
• Accounts Payable Vouchers Yes No No
  No Yes
• Accounts Receivable Yes No
  No No Yes
• Accounts Receivable Fin Chg Yes No No
  No Yes
• Accounts Receivable Invoicing Yes No No
  No Yes
• Accounts Receivable Payments Yes No No
  No Yes
• Accounts Receivable Posting Yes No No
  No Yes
• End of Period Posting Yes No
  No No Yes
• Enter out of Date Range Yes No
  No No Yes
• General Ledger Yes No
  No No Yes
• General Ledger Financial Rpts Yes No No
  No Yes

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REVENUE CYCLE

• CUSTOMER SERVICE RECEIVES ORDERS VIA MAIL, FAX,
  E-VA, VCE WEB-SITE (E-VA AND WEB-SITE ORDERS CAN
  BE IMPORTED INTO SYTELINE)
• EVERY CUSTOMER HAS A UNIQUE ACCOUNT
• SYTELINE GENERATES ORDER

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REVENUE CYCLE

• FINISHED GOODS IN SYTELINE HAVE ESTABLISHED UNIT
  PRICES AND DEFAULT DUE DATES
• WHEN AN ITEM IS SHIPPED IN SYTELINE (AND
  PHYSICALLY), INVENTORY IS DECREMENTED AND A TO
  BE INVOICED TRANSACTION IS GENERATED ALERTING
  CUSTOMER SERVICE TO INVOICE.

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REVENUE CYCLE

• WHEN THE INVOICE IS PRINTED (INVOICES ARE
  SEQUENTIAL) ACCOUNTS REVEIVABLE (A/R) POSTS THE
  TRANSACTION TO THE A/R DISTRIBUTION JOURNAL.
  SYTELINE AUTOMATICALLY GENERATES ALL JE LINES AND
  UPDATES THE CUSTOMERS ACCOUNT.

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REVENUE CYCLE

• PAYMENTS ARE ENTERED BY A/R, UPDATING THE
  CUSTOMERS ACCOUNT AND GENERATING THE RELATED JE
  IN THE A/R DISTRIBUTION JOURNAL.
• FOR CREDIT CARD, EDI OR CHECKS RECEIVED, A
  DEPOSIT IS MANUALLY KEYED IN CARS.

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PURCHASING/EXPENDITURES

• PURCHASE REQUISITIONS (P/RS) ARE ENTERED INTO
  SYTELINE MANUALLY OR ARE GENERATED VIA SYTELINES
  MATERIAL REQUIREMENTS PLANNING (MRP)
  FUNCTIONALITY.
• P/RS MUST BE APPROVED IN SYTELINE BY A MANAGER
  WITH SUFFICIENT DELEGATED AUTHORITY (AMOUNTS ARE
  SET IN SYTELINE)

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PURCHASING/EXPENDITURES

• ONCE APPROVED, THE P/R IS CONVERTED TO A PURCHASE
  ORDER (PO) IN SYTELINE BY PURCHASING DEPT. AND
  THE ORDER IS EXPORTED TO E-VA.
• POS ARE SEQUENTIAL
• ALL PO LINES REQUIRE G/L CODING

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PURCHASING/EXPENDITURES

• WHEN THE GOOD/SERVICE IS RECEIVED, A RECEIVING
  TRANSACTION IS ENTERED AGAINST THE PO LINE. THIS
  GENERATES ENTRIES IN THE PO JOURNAL. THE
  RECEIVERS INITIALS ARE LOGGED IN SYTELINE
  IDENTIFYING THEM.
• ACCOUNTS PAYABLE (A/P) PRINTS AN ELECTRONIC COPY
  OF THE RECEIVING REPORT AND MATCHES WITH THE
  INVOICE AND PO.

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PURCHASING/EXPENDITURES

• A/P VOUCHERS AGAINST THE PO LINE AND GENERATES
  PAYMENT IN SYTELINE. EACH NIGHT, THAT DAYS
  BATCHES ARE DOWNLOADED TO CARS ENABLING TREASURY
  TO CUT THE ACTUAL CHECK/EDI.

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INVENTORY

• VCE HAS UNIQUE ITEMS FOR ALL INVENTORY ITEMS
• VCE MAINTAINS AN INVENTORY OF RAW MATERIALS, WIP
  (SUB-ASSEMBLIES, CUT PARTS, JOBS IN PROCESS) AND
  FINISHED GOODS.
• INVENTORY IS VALUED AT STANDARD COST, UPDATED
  BASED UPON FIFO ACTUAL

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INVENTORY

• ALL ITEMS HAVE AN ASSIGNED PRODUCT CODE WITH THE
  RELATED ACCOUNT STRUCTURE
• ASSIGNED SAFETY STOCK LEVELS
• ASSIGNED CYCLE COUNT FREQUENCY (A, B, OR C ITEMS)
• ALL VALUE ADDED INVENTORY (WIP/FG) HAS A BILL OF
  MATERIAL AND STANDARD ROUTING

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INVENTORY

• WIP FG COST IS DETERMINED BY THE STANDARD COST
  OF RM, THE INMATE LABOR AND PLANT OVERHEAD
  APPLIED.
• LABOR AND OVERHEAD HOURLY RATES ARE DETERMINED BY
  COST ACCOUNTING AND DISTRIBUTED TO ITEMS BASED
  UPON THE STANDARD AMOUNT OF TIME IT TAKES TO MAKE
  THE ITEM.

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INVENTORY

• VCES CODES STANDARDS DEPT DEVELOPES AND ENTERS
  BOMS AND ROUTINGS, ESTABLISHES NEW CODES AND
  RUNS MRP.
• MRP CREATES JOBS (PRODUCTION ORDERS) BASED UPON
  DEMAND (NEW ORDERS) AND GENERATES PRS, IF NEEDED.

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INVENTORY - JOBS

• JOBS ARE ALSO CUT MANUALLY AND ARE BASED ON
  DEMAND
• JOBS ARE MONITORED BY VCE MGT.
• THE SHOP DATA CLERK SENDS A PICK LIST TO THE
  FLOOR FOR ITEMS REQUIRED. AS ITEMS ARE ISSUED AND
  THE JOB PROGRESSES, THE CLERK ENTERS THE JOB
  TRANSACTIONS IN THE SYSTEM, GENERATING JES IN
  THE SHOP FLOOR JOURNAL

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INVENTORY - JOBS

• AS ITEMS ARE COMPLETED, SYTELINE GENERATES JES
  TO CREDIT WIP AND DEBIT FGS. ANY VARIANCE
  GENERATED IS ALSO CALCULATED.

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INVENTORY CONTROL

• COST ACCOUNTING ADMINISTERS CYCLE COUNTS TO BE
  PERFORMED BY SHOPS.
• THE SHOP DATA CLERK ENTERS THE RESULTS OF THAT
  DAYS CYCLE COUNT. COST ACCOUNTING POSTS THE
  AMOUNTS TO THE INVENTORY CONTROL JOURNAL AND
  REPORTS VARIANCES TO MGT WEEKLY.
• VARIANCES OUT OF TOLERANCE ARE INVESTIGATED BY
  SHOPS

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INVENTORY CONTROL

• PHYSICAL INVENTORY FOR ALL ITEMS IS PERFORMED THE
  LAST WEEK OF FEBRUARY.
• COST ACCOUNTING POSTS RESULTS AND REPORTS TO MGT.
• VARIANCES OUT OF TOLERANCE ARE INVESTIGATED BY
  SHOPS

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FINANCIAL REPORTING

• ONLY ACCOUNTING PERSONNEL CAN ENTER MANUAL JES
• BUSINESS MGR. POSTS JOURNALS TO THE GENERAL
  LEDGER MONTHLY.
• BUSINESS MGR. GENERATES FINANCIAL STATEMENTS
  MONTHLY AND DISTRIBUTES TO MGT TEAM.

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QUESTIONS???

• PLEASE FEEL FREE TO EMAIL ME _at_ JAMES.SACHER_at_VADOC.
  GOV

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THANK YOU!!!