Invested Balance Checking (20.2.3)

Business Process Overview

The Commitment Control (KK) module is designed for control, management, and reporting of budget. The KK module includes the Invested Balance Checking business subprocess within Florida PALM that validates General Ledger module transactions to the Investments Ledger, along with the appropriate ChartField values.

The Invested Balance Checking business subprocess addresses how invested cash balances are checked and updated. Invested cash balances are updated as investments and disinvestments are made. The Invested Balance Checking business subprocess compares investments to investment appropriations and disinvestments to the available invested cash balance. General Ledger journal entries without an invested balance account type of asset (e.g., equity, liability, and revenue) are excluded from this process and proceed with the transaction lifecycle.

The Investment/Disinvestment Journal Automation, referenced as the Investment Activity Entry page, is built to simplify the Investment/Disinvestment journal entry process to enable agency users to perform the Investments/Disinvestments efficiently in a controlled manner and to minimize errors. When there is not sufficient investment appropriations or invested cash balance, the transaction will fail the Invested Balance Checking process, generate budget exception errors (no warnings apply to this process), and there are no impacts to the KK Investment Ledger.

Invested Balance exceptions  occur due to the transaction failing Invested Balance Checking because it does not conform to the rules established. The Agency GL Processor and Approver can use the Journals with Errors report or the Journals with Commitment Control Exceptions report, on the GL WorkCenter, to identify journals that have errors.  The Invest Activity Report  is available for review in resolving exceptions.

Once Invested Balance Checking errors occur, the options available to resolve errors are:

1. Change source transaction (includes amount and/or ChartFields);
2. Cancel / Delete transaction; or
3. Request Override (extraordinary instances)

Invested Balance Check errors continue to be systematically checked by KK until the budget errors have been resolved. Once Invested Balance Check errors are resolved the transaction lifecycle continues in the General Ledger module.

Override Request Form

Florida PALM has been designed for extraordinary instances whereas an agency can submit an Override Request Form which includes workflow to DFS for review and consideration. The DFS Override Processor has the appropriate security to override a budget, cash, and invested balance error based upon an agency’s override request form submission, along with supporting documentation. The Override Request Form is not intended as an accounting and budget management tool for day-to-day operations. Agencies are expected to use appropriate accounting and budget policies along with acceptable business practices to manage operations. For those agencies who choose the allotments ledger control option, KK security will be applied to allow agency override for the allotments ledger only and this does not apply to the Override Request Form process.

The following are examples of Override Request Form considerations that agencies could use to address time sensitive and/or extraordinary instances, but not limited to:

• Transactions supported by legislative Back of the Bill appropriations;
• Budget Amendments (emphasis on extraordinary instances); or
• Declaration of State of Emergency

 Agencies should be prepared to provide the following:

• Justification which includes detail information;
• Agency’s fiscal impact statement; and
• Supporting documentation

 The DFS Override Processor works collaboratively with the Executive Office of the Governor/Office of Policy and Budget (EOG/OPB) to review override request form and render a decision to approve or deny and request additional information from agency, if needed. Once the transaction is approved or denied, Florida PALM will systematically notify the agency of the decision, with the noted outcome:

• Approve – The DFS Override Processor approves override request, the transaction is overridden and manually submitted for Budget Check to pass, and the transaction will proceed to its source module lifecycle.
• Denied – The DFS Override Processor denies override request and the agency will need to take alternative action to modify transaction and resubmit for Budget Check.

 Transactions that are approved for override and/or denied will be included on the Budget and Cash Checking Exceptions/Warnings Report.

 Florida PALM will be configured for those rare instances whereas DFS can assign a Commitment Control attribute to designate ChartField values, to permit systematic override of transactions for a designated period of time, as deemed appropriate.

Commitment Control Module Management and Reporting Tools

The Commitment Control (KK) module provides designated users (KK Viewer for online pages and KK Reporter for reports) management and reporting tools to support the resolution of budget, cash, and invested balance exceptions and negative budget and cash balances, such as:

• Commitment Control online screens (i.e., Budgets Overview, Commitment Control Review Budget Exception Pages, Commitment Control Cash Checking Exceptions page, Budget Detail, and Log Activity) which display and enable drill down capability to view summarized and detailed information regarding budget journals, source transactions, and budget, cash, and invested balance exceptions, with user-defined dimensions;
• Commitment Control notification feature which includes notifications by worklist are available to assist in managing exceptions for resolution, errors (budget, cash, and invested balance) and warnings (budget only);
• Commitment Control budget exception pages (includes budget and cash) allow users to view errors and warnings for transactions to assist with the resolution; and
• End users will need to be assigned the KK Viewer and KK Reporter to view online pages and to retrieve reports.

Business Process Diagram

Business Roles

The Business Process Flow Diagrams use horizontal swim lanes to depict where activities are performed by different parties or systems. Each swim lane is titled with a role, either agency-based or within DFS, and in some cases, are representative of an external entity or system. The swim lanes may change from page to page within a single business subprocess as more or fewer roles are required to execute sections of the business subprocess. 

• Agency GL Journal Processor: Agency role responsible for reviewing and managing invested balance checking errors
• DFS GL Journal Processor: DFS role responsible for reviewing and managing invested balance checking errors
• DFS Investment Override Processor: DFS role responsible for performing Invested Balance Checking Override reviews

Business Process Flows Details

The tables below describe steps in each business subprocess as reflected on the Business Process Flow Diagrams. The tables also reflect information associated with each step describing the intent of the specific process. Florida PALM screenshots are included within the sections to allow connections to be made from specific business subprocess steps to screens within Florida PALM. This information should be read in conjunction with the Business Process Flow Diagrams.

Journal Entry with Journal Status = E

Error Message

Accounting Events

Accounting events originate during transaction processing in the applicable source module. The accounting events impact the source module, Commitment Control ledgers, and the General ledger (Actuals).

• Source Module accounting entries require user input (I) of the primary line (i.e., expenditure, revenues) with an automated (A) system offsetting line (i.e., payable, receivable) during transaction entry. The source model transaction must pass Edit Check, Budget Check, and Cash Check (on applicable entries) prior to posting the transaction.
• The Run Budget Check (Commitment Control) process automatically affects balances in the appropriate budget ledger (i.e., appropriation, spendable cash) if the transaction passes the budget check process.
• After the transaction is posted in the source module, an automated system process summarizes and posts the entries in the General Ledger module to the Actuals Ledger.

The table below provides the most common accounting events applicable to this business process.

Reports

Key Reports are displayed as icons with the Report Number on this Business Process. The table below provides the reports identified to be produced at a particular process step or is used to support the completion of a process step.

Interfaces

The table below provides the Interfaces identified on the Business Process.

Forms

The table below provides the forms identified on this Business Process.

Workflows

The table below provides the workflows identified on this Business Process.

Version History