Inter/IntraUnit Carry Forward Process (110.4.2)

1

Prepare for Fiscal Year-End Close and Budget Close

DFS and EOG/OPB publish memorandums that provide instructions, guidance, and deadlines for fiscal year (FY) end activities including Carry Forward. DFS provides information related to undisbursed appropriations for operations, identified as incurred obligations, and certified Fixed Capital Outlay (FCO) undisbursed appropriations, pursuant to Section 216.301, F.S.

The fiscal year-end close involves finalizing the State’s financial activities for each 12-month period. At the end of the fiscal year, the accounting year is closed in Florida PALM, preventing any further transactions from affecting that year’s financial results. As the fiscal year-end close activities are occurring, agencies will also perform budget close activities. It is important to note that the budget close operates independently of the fiscal year-end close.

Agencies prepare for budget close and review the agency-addressed memorandum regarding undisbursed appropriations. Agencies will identify and process obligations as part of the fiscal year-end closeout process and take all appropriate steps to prepare for budget close.

The amounts identified as incurred obligations must not exceed available appropriation balances by the budget entity, category, fund, and budget period (appropriation year).

2

Identify IU Encumbrances and Accruals for Carry Forward

The end user can choose from the following reports based on the information they need. These reports detail all prior year IU Encumbrances and IU Accruals with an 'Open' status, along with the remaining balance.

• KKR018 Agency Commitments Report
• IUR004 IU Encumbrance and Accrual Activity Report
• IUR005 Inter/IntraUnit Transaction Detail Report
• KKR008 Schedule of Allotment Balances Report

Agencies will determine which open IU Encumbrances and IU Accruals are eligible to Carry Forward from the previous fiscal year to the next fiscal year.

3

Close IU Encumbrance / Accrual

IU Encumbrances and IU Accruals that are not eligible for Carry forward must be closed prior to the first Carry Forward/Certified Forward Reversion.

Closing an IU Encumbrance will liquidate the remaining balance and follow the 110.1.2 Monitor Inter/IntraUnit Encumbrances business subprocess.

Closing an IU Accrual involves creating a balance adjustment to liquidate the remaining balance. This process will follow the 110.2.2 Monitor Inter/IntraUnit Accruals business subprocess.

All remaining prior year open IU Encumbrances and IU Accruals are considered eligible for Carry Forward purposes.

4

Establish/Update IU Encumbrance

Agencies may record or update prior year IU Encumbrance for Carry Forward purposes. This will follow the 110.1.1 Establish and Maintain Inter/IntraUnit Encumbrances business subprocess.

During the Carry Forward period, agencies use a Budget Date as 06/30/XXXX on the IU Encumbrance, where XXXX represents the fiscal year just ended. Reference Appendix A Commitment Control Date Concepts from the 20.1 Enter and Process Budget Journals business process for additional details.

Prior year IU Encumbrances for Carry Forward purposes must be established before the first Carry Forward/Certified Forward Reversion date provided by DFS and EOG/OPB publish memorandums.

Reports available to view established IU Encumbrances include:

• IUR004 IU Encumbrance and Accrual Activity Report
• KKR018 Agency Commitments Report
• IUR005 Inter/IntraUnit Transaction Detail Report
• KKR008 Schedule of Allotment Balances Report

5

Establish/Update IU Accrual

Agencies may record or update a prior year IU Accrual for Carry Forward purposes. This will follow the 110.2.1 Establish and Maintain Inter/IntraUnit Accrual business subprocess.

Prior year IU Accruals for Carry Forward purposes must be established before the first Carry Forward/Certified Forward Reversion date provided in the DFS and EOG/OPB publish memorandums.

IU Accruals may reference an IU Encumbrance which will reduce the encumbrance balance.

During the Carry Forward period, agencies use a Budget Date as 06/30/XXXX on the IU Accrual, where XXXX represents the fiscal year just ended. Reference Appendix A Commitment Control Date Concepts from the 20.1 Enter and Process Budget Journals business process for additional details.

To update (e.g., increase, decrease) the balance of a prior year's IU Accrual, agencies must record an Accrual Balance Adjustment Transaction. If the previous accounting period is closed, this adjustment must be recorded online and cannot be processed through an interface or spreadsheet upload. This will follow the 110.2.1 Establish and Maintain Inter/IntraUnit Accrual business subprocess.

Reports available to view established or updated IU Accruals include:

• IUR004 IU Encumbrance and Accrual Activity Report
• KKR018 Agency Commitments Report
• IUR005 Inter/IntraUnit Transaction Detail Report
• KKR008 Schedule of Allotment Balances Report

6

Pay Against Obligations

Agencies may pay against the carry forward obligations using IU transactions. These transactions follow the 110.3 Inter/IntraUnit Transaction Processing business subprocess.

Agencies may view the IUR004 IU Encumbrance and Accrual Activity Report to view payments against the IU Encumbrances and IU Accruals.

7

Resolve Budget and Cash Exceptions

Agencies will monitor and resolve Budget and Cash Check exceptions to ensure IU transactions including IU Encumbrances and IU Accruals are posted successfully prior to the first Reversion.

Budget Checking exceptions will be managed via the 20.2.1 Manage Budget Checking business subprocess.

Cash Checking exceptions will be managed via the 20.2.2 Manage Cash Checking business subprocess.

Reports available to identify budget and cash check exceptions include:

• IUR006 Inter/IntraUnit Budget-Cash Check Errors (WorkCenter)
• KKR058 Budget and Cash Checking Exceptions/Warnings Report

8

Auto-Delete Prior Year Pending IU Transactions

Immediately prior to the first Reversion, Florida PALM will systematically delete all pending IU Transactions with a prior budget year including pending IU Encumbrances and IU Accruals not posted. Since the budget will be reverted, these transactions are deleted to prevent them from failing the budget check due to lack of budget availability.

Agencies may run the IUR005 Inter/IntraUnit Transaction Detail Report to view the Auto-Deleted IU transactions.

9

First Reversion of Appropriations

The first Carry Forward/Certified Forward Reversion of Appropriations occurs shortly after the end of the fiscal year, and the date is determined by DFS Accounting & Auditing. At this point, agencies would have identified and liquidated any remaining balances in their appropriations that are not eligible for Carry Forward. This ensures that prior year appropriations not needed for agency incurred obligations are reverted appropriately, reference 20.3.1 Carry Forward business subprocess.

10

Pay Against Obligations

Agencies may continue to pay against the Carry Forward obligations using IU transactions. These transactions follow the 110.3 Inter/IntraUnit Transaction Processing business subprocess.

Agencies may view the IUR004 IU Encumbrance and Accrual Activity Report to view payments against the IU Encumbrances and IU Accruals.

11

Resolve Budget and Cash Exceptions

Agencies will monitor and resolve Budget and Cash Check exceptions to ensure IU transactions are posted successfully prior to the second Carry Forward Reversion date provided in the DFS and EOG/OPB publish memorandums (typically September 30^th).

Budget Checking exceptions will be managed via the 20.2.1 Manage Budget Checking business subprocess.

Cash Checking exceptions will be managed via the 20.2.2 Manage Cash Checking business subprocess.

Reports available to identify budget and cash check exceptions include:

• IUR006 Inter/IntraUnit Budget-Cash Check Errors (WorkCenter)
• KKR058 Budget and Cash Checking Exceptions/Warnings Report

12

Auto-Delete Prior Year Pending IU Transactions

Immediately prior to the second Reversion, Florida PALM will systematically delete all pending IU Transactions with a prior budget year. Since the budget will be reverted, these transactions are deleted to prevent them from failing the budget check due to lack of budget availability.

Agencies may run the IUR005 Inter/IntraUnit Transaction Detail Report to view the Auto-Deleted IU transactions.

13

Auto-Close Prior Year IU Encumbrances/

Accruals

Immediately prior to the second Reversion, Florida PALM will systematically close any unpaid IU Encumbrances and IU Accruals with a prior budget year. This will liquidate the unexpended remaining balances in order to perform the Reversion.

14

Second Reversion of Appropriations

The second Carry Forward Reversion of Appropriations typically occurs on September 30^th of each year. On this date, all unexpended balances from the prior fiscal year appropriations are reverted.

The process will continue within the 20.3.1 Carry Forward business subprocess.

IU01

Close Prior Year IU Encumbrance

(Applicable to IU Encumbrance transaction)

N/A

No Entry

Increases PY:

• Available Appropriation
• Allotment

Decreases PY:

• Encumbrance

No Entry

IU02

Close Prior Year IU Accrual Prior to July 15^th

(Applicable to Accrual Balance Adjustment transaction)

Sending

Debit: Accounts Payable (S)

Credit: Expense (U)

Increases PY:

• Available Appropriations
• Allotments balance
• Releases balance

Decreases PY:

• Expense

Debit: Accounts Payable

Credit: Expense

Receiving

Debit: Revenue (S)

Credit: Accounts Receivable (S)

Decreases PY:

• Recognized Revenue

Debit: Revenue

Credit: Accounts Receivable

IU03

Close Prior Year IU Accrual After July 15^th

(Applicable to Accrual Balance Adjustment transaction)

Sending

Debit: Accounts Payable (S)

Credit: Expense (S)

During the Carry Forward/Certified Forward period, agencies update the Budget Date as 06/30/XXXX, where XXXX represents the prior budget year.

Increases PY:

• Available Appropriations
• Allotments balance
• Releases balance

Decreases PY:

• Expense

Debit: Accounts Payable

Credit:  Expense

Receiving

Debit: Revenue (S)

Credit: Accounts Receivable (S)

During the Carry Forward/Certified Forward period, agencies update the Budget Date as 06/30/XXXX, where XXXX represents the prior budget year.

Decreases PY:

• Recognized Revenue

Debit: Revenue

Credit: Accounts Receivable

IU04

Establish Prior Year IU Encumbrance

(Applicable to IU Encumbrance transaction)

N/A

No Entry

During the Carry Forward/Certified Forward period, agencies update the Budget Date as 06/30/XXXX, where XXXX represents the prior budget year.

Increases PY:

• Encumbrance

Decreases PY:

• Available Appropriation
• Allotments balance

No Entry

IU05

Establish Unencumbered Prior Year IU Accrual

(Applicable to Payable/Receivable transaction)

Sending

Debit: Expenditure (U)

Credit: Accounts Payable (S)

During the Carry Forward/Certified Forward period, agencies update the Budget Date as 06/30/XXXX, where XXXX represents the prior budget year.

Increases PY:

• Expense

Decreases PY:

• Available Appropriations
• Allotments balance
• Releases balance

Debit: Expenditure

Credit: Accounts Payable

Receiving

Debit: Accounts Receivable (S)

Credit: Revenue (U)

Increases CY:

• Recognized Revenue

Debit: Accounts Receivable

Credit: Revenue

IU06

Establish Encumbered Prior Year IU Accrual

(Applicable to Payable/Receivable transaction)

Relieve Encumbrance

N/A

Increases PY:

• Available Appropriations
• Allotment balance

Decreases PY:

• Encumbrance

N/A

Sending

Debit: Expenditure (U)

Credit: Accounts Payable (S)

During the Carry Forward/Certified Forward period, agencies update the Budget Date as 06/30/XXXX, where XXXX represents the prior budget year.

Increases PY:

• Expense

Decreases PY:

• Available Appropriations
• Allotments balance
• Releases balance

Debit: Expenditure

Credit: Accounts Payable

Receiving

Debit: Accounts Receivable (S)

Credit: Revenue (U)

Increases CY:

• Recognized Revenue

Debit: Accounts Receivable

Credit: Revenue

IU07

Transfer Payment against PY Encumbrance

(Applicable to Expenditure/Revenue, Transfer, Federal Funds Transfer, and General Revenue Transfer transactions)

Sending – Relieve Encumbrance

N/A

Increases PY:

• Available Appropriations
• Allotments balance

Decreases PY:

• Encumbrance

N/A

Sending

Debit: Expenditure (S)

Credit: Cash (S)

During the Carry Forward/Certified Forward period, agencies update the Budget Date as 06/30/XXXX, where XXXX represents the prior budget year.

Increases PY:

• Expense

Decreases PY:

• Available Appropriations balance
• Allotments balance
• Releases balance
• Spendable Cash

Debit: Expenditure

Credit: Cash

Receiving

Debit: Cash (S)

Credit: Revenue (U)

Increases CY:

• Collected Revenue
• Spendable Cash

Debit: Cash

Credit: Revenue

IU08

Transfer Payment Against PY Accrual

(Applicable to Expenditure/Revenue, Transfer, Federal Funds Transfer, and General Revenue Transfer transactions)

Sending

Debit: Accounts Payable (S)

Credit: Cash (S)

During the Carry Forward/Certified Forward period, agencies update the Budget Date as 06/30/XXXX, where XXXX represents the prior budget year.

Increases PY:

• N/A

Decreases PY:

• Spendable Cash

Debit: Accounts Payable

Credit: Cash

Receiving

Debit: Cash (S)

Credit: Accounts Receivable (S)

During the Carry Forward/Certified Forward period, agencies update the Budget Date as 06/30/XXXX, where XXXX represents the prior budget year.

Increases PY:

• Collected Revenue
• Spendable Cash

Debit: Cash

Credit: Accounts Receivable

R6

IUR006

Inter/IntraUnit Budget-Cash Check Errors (WorkCenter) – A report in the WorkCenter used to display a list of Inter/IntraUnit transactions with budget and cash check exceptions that require action.

PeopleSoft

Periodic

Agency

R7

KKR058

Budget and Cash Checking Exceptions/Warnings Report – A WorkCenter report that lists transactions budget and cash check exceptions and warnings along with transaction amounts, to include the type of exception and where an override was applied.

PeopleSoft

Periodic, Monthly, Annually

Agency, DFS

R8

IUR005

Inter/IntraUnit Transaction Detail Report – A report that lists transaction details for Inter/IntraUnit module transactions including Inter/IntraUnit expenditures, revenues, transfers, advances, reclassifications, encumbrances, and accruals.

PeopleSoft

Periodic, Monthly, Annually

Agency

R9

IUR004

IU Encumbrance and Accrual Activity Report – A report detailing the IU Encumbrance and IU Accrual activity including the established encumbrance/accrual, payments made against the encumbrance/accrual, and remaining balances.

Data Warehouse

Periodic, Monthly, Annually

Agency, DFS

R10

KKR018

Agency Commitments Report – A report that provides encumbrances and payables by ChartField combinations by budget period(s).

PeopleSoft

Periodic, Monthly, Annually

Agency, DFS

R11

KKR008

Schedule of Allotment Balances Report – A report reflecting recorded allotments, encumbrances, expenditures, and associated remaining balances for designated time periods grouped by designated ChartFields and ChartField combinations.

Peoplesoft

Periodic, Monthly

Agency, DFS

N/A

N/A

N/A

08/30/2024

Original Version