Manage Budget Checking (20.2.1)
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Manage Budget Checking (20.2.1)
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Business Process Overview
The Commitment Control (KK) module is designed for control, management, and reporting of Budget and Spendable Cash. The KK module includes the Manage Budget Checking business subprocess within Florida PALM that validates source modules (e.g.., General Ledger, Accounts Payable, Purchasing, Accounts Receivable, and Inter/IntraUnit) transactions to available Appropriations along with the appropriate ChartField values. Reference to Appropriations collectively includes Appropriations, Releases, Reserves, Allotments, Investments, and Revenue ledgers. Source module transactions may be checked by multiple ledgers, (e.g., appropriations, releases, reserves, and allotments) to complete Budget Check functionality.
All transactions are subject to Budget Check functionality. The configuration of Florida PALM determines if a transaction will update one or more of the KK budget ledgers. The Account type of expenses is budget checked and updates the appropriate KK budget ledgers if transaction passes and proceeds with the source modules transaction lifecycle. The Account type of revenue is budget checked and is configured to pass Budget Check systematically, update the appropriate KK revenue ledgers, and proceed with the source modules transaction lifecycle. The Account types such as assets, equity, and liability are budget checked, however they are configured to pass Budget Check systematically, although there may be designated accounts within these account types noted that impact the KK budget ledgers and proceed with the source modules transaction lifecycle.
The Budget Check process looks at the budget stored in the KK ledger(s) and makes one of the following determinations:
- Passes Budget Check – If there are appropriations available, the transaction will pass Budget Check, entries are created in the appropriate KK budget/revenue ledger(s), available balances are impacted, and it will proceed with the source modules transaction lifecycle.
- Fails Budget Check – If there are not sufficient appropriations available, the transaction will fail Budget Check, budget errors are issued, no entries are created, and there is no impact to available balances as the transaction has been stopped.
The Manage Budget Exceptions process is a significant activity that is undertaken in source modules (e.g., General Ledger, Accounts Payable, Purchasing, Accounts Receivable, and Inter/IntraUnit) to resolve errors that arise when source transactions fail Budget Check. Please see below Commitment Control Module Management and Reporting Tools for more information.
Commitment Control security will designate users within the Department of Financial Services (DFS) that can override a budget exception. The Commitment Control designated DFS KK Budget Maintainer, DFS KK Budget Processor, Agency KK Budget Maintainer, and/or Agency KK Budget Processor roles will have access to manage budget exceptions resulting from the Budget Check process.
Budget Check exceptions fall into two categories, which are as follows:
- Errors– These are budget exceptions that have failed Budget Check because they do not conform to the rules established. Once Budget Check errors occur, the options available to resolve errors in the source modules are:
- Change source transaction (includes amount and/or ChartFields).
- Adjust budget in KK (includes amount and/or ChartFields).
- Cancel / Delete transaction; or
- Request Override (extraordinary instances).
Budget Check errors continue to be systematically checked by Commitment Control until the budget errors have been resolved. Once Budget Check errors are resolved the source modules transaction lifecycle proceeds and KK budget ledgers are updated.
Appropriations will be restored systematically based on the impact of a source transaction, i.e. when an encumbrance transaction is reduced and/or cancelled.
- Warnings– These are budget exceptions that are systematically overridden as defined by rules established but provide a warning, which is informational and included on the Budget and Cash Checking Exceptions/Warnings Report. Once Budget Check warnings occur, agencies should employ internal accounting and budget policy and procedures to clear negative balances, for example:
- Record allotment adjustments to address negative allotment balances; or
- Transfer posted expenditures to different ChartField string.
- Any actions to address Budget Check warnings would occur after the fact as the transaction has passed Budget Check with the warning. Addressing Budget Check warnings timely could prevent future issues if not addressed appropriately.
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 KK Budget Processor: Agency role responsible for reviewing and managing Budget Check exceptions.
- Agency KK Budget Maintainer: Agency role responsible for reviewing and managing Budget Check exceptions.
- DFS KK Override Processor: DFS role responsible for performing Budget Check Override reviews in collaboration with EOG/OPB and agency.
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.
Process Step ID | Process Step Title | Description of Process |
|---|---|---|
1 | Run Budget Check | Budget Check is initiated by source module processors or an automated scheduled process. Budget Check validates source transactions to available appropriations and ChartField values, which consumes budget and creates an expenditure entry in the appropriate budget ledger. If no errors result from the Budget Check, the transaction passes, updates the KK budget ledgers, and proceeds with the source modules transaction lifecycle. If errors exist, the Agency KK Budget Processor and Agency KK Budget Maintainer manages the Budget Check exceptions. The configuration of Florida PALM determines if a transaction is subject to Budget Check based on the following Account types:
Account types of assets, equity, and liability are budget checked, however they are configured to pass Budget Check systematically, although there may be designated accounts within these account types noted that impact the KK budget ledgers and proceed with the source modules transaction lifecycle. Budget Check validates source module’s transactions from the below business subprocesses:
|
2 | Update KK Budget Ledgers Balances | Source modules transactions that successfully pass Budget Check are processed, consume budget, update KK budget ledger balances, and proceed with the transaction lifecycle.
Budget Check warnings are informational that may be issued and do not require immediate action, as the transaction has systematically passed budget check. The Schedule of Allotment Balances Report, Agency Commitments Report, Budget Detail Activity, Budget and Cash Checking Exceptions/Warnings Report, and Budgets Overview screen are available for review and management purposes. |
3 | Manage Budget Exceptions Issued | Budget Check errors are exceptions that have failed budget checking because they do not conform to the rules established. Once Budget Check errors occur, the options available to resolve errors in the source modules are as follows:
Budget Check errors continue to be systematically checked by KK until the budget errors have been resolved. Once Budget Check errors are resolved the transaction lifecycle continues in the source modules and KK budget ledgers are updated. Transactions with errors have failed Budget Check, do not consume budget, and therefore do not update the KK budget ledgers. The Agency KK Budget Processor and Agency KK Budget Maintainer can view the Commitment Control Notification feature which includes notifications by email and workflow worklist and Exception Inquiry pages. All transactions that fail Budget Check produce errors and/or warnings are included in the Budget and Cash Checking Exceptions/Warnings Report. The Schedule of Allotment Balances Report, Budget and Cash Checking Exceptions/Warnings Report, and Budgets Overview screen are available for review and management purposes. |
4 | Perform Edits in Source Modules | The Agency KK Budget Processor and Agency KK Budget Maintainer work collaboratively with source module roles within Florida PALM and perform due diligence to review and resolve budget exceptions. Once Budget Check errors occur, the options available to resolve errors in the source modules are as follows:
Budget Check errors continue to be systematically checked by KK until the budget errors have been resolved. Once Budget Check errors are resolved the transaction lifecycle continues in the source modules and KK budget ledgers are updated. Transactions with errors that failed Budget Check, do not consume budget and are not allowed to update the KK budget ledgers. Figures below display a voucher with valid Budget Check, voucher with budget errors, and the page behind the link that shows the budget errors for the voucher. The Schedule of Allotment Balances Report, Agency Commitments Report, Budget and Cash Checking Exceptions/Warnings Report, and Budgets Overview screen are available for review and management purposes. |
5 | Submit Override Request Form | The Agency KK Budget Maintainer submits Override Request Form, along with supporting documentation through workflow to the DFS KK Override Processor for consideration. The Schedule of Allotment Balances Report, Agency Commitments Report, Budget and Cash Checking Exceptions/Warnings Report, and Budgets Overview screen are available for review and management purposes. |
6 | Review Override Request Form | The DFS KK Override Processor reviews the Override Request Form and works collaboratively with EOG/OPB and the Agency where appropriate to reach a decision regarding the Override request. If the Override request is approved, the DFS KK Override processor manually overrides the transaction and either initiates Budget Check to occur immediately or on the next system scheduled Budget Check process. Once the transaction is budget checked, it will pass as an overridden transaction, update KK budget ledgers to consume budget, and proceed with the source module transaction lifecycle. With approval of override request, the transaction meets the budget checking rules established, and continues processing as described in the below business subprocesses:
The Schedule of Allotment Balances Report, Agency Commitments Report, Budget and Cash Checking Exceptions/Warnings Report, and Budgets Overview screen are available for review and management purposes. |
7 | Email Notification of Approval to Agency | If the Override request is approved, Florida PALM will systematically notify the agency of the decision. Once the transaction is overridden and manually submitted for Budget Check to pass, the transaction will proceed to its source module lifecycle. Transactions that are approved for override will be included on the Budget and Cash Checking Exceptions/Warnings Report to document that the approved override. The Schedule of Allotment Balances Report, Agency Commitments Report, Budget Detail Activity, Budget and Cash Checking Exceptions/Warnings Report, and Budgets Overview screen are available for review and management purposes. |
8 | Email Notification of Denial to Agency | If the Override request is denied, Florida PALM will systematically notify the agency of the decision. Once the transaction is denied, the agency will need to take an alternative action to modify the transaction and resubmit for Budget Check. Transactions that are denied will remain on the Budget and Cash Checking Exceptions/Warnings Report. The Schedule of Allotment Balances Report, Budget and Cash Checking Exceptions/Warnings Report, and Budgets Overview screen are available for review and management purposes. |
Voucher with a Valid Budget Check
Voucher with a Budget Exception
Page behind the link that shows the Budget Exception for the voucher
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.
Acct Event ID | Accounting Event | Commitment Control Ledger(s) Impact | Source Module Accounting Entry | General Ledger (Actuals) Entry |
|---|---|---|---|---|
N/A | Accounting Events occur in the General Ledger and source modules and not directly in the Commitment Control Ledger. | |||
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.
Report Number | Report RICEFW ID | Report Description | Report Source | Report Frequency | Audience |
|---|---|---|---|---|---|
R1 | KKR008 | Schedule of Allotment Balances Report – Custom report reflecting recorded allotments, encumbrances, expenditures, and associated remaining balances for designated time periods grouped by designated ChartFields and ChartField combinations. | PeopleSoft | Periodic | DFS, Agency |
R2 | KKR018 | Agency Commitments Report - Custom report that provides encumbrances and payables by ChartField combinations. | PeopleSoft | Periodic | DFS, Agency |
R3 | KKR019 | Budget Detail Activity Report – Custom report that provides budget journal detail based on user defined criteria. The report will be provided by business unit, ledger and ChartField combination at a specified time period. | PeopleSoft | Periodic | DFS, Agency |
R4 | KKR058 | Budget and Cash Checking Exceptions/Warnings Report – Custom 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 | DFS, Agency |
R5 | KKR016 | Negative Budget and Cash Balances Report – A custom report displaying funds that have a negative budget and cash balance by designated ChartFields, produced on demand. | PeopleSoft | Periodic | DFS, Agency |
Interfaces
The table below provides the Interfaces identified on the Business Process.
Interface Number | Interface Description | Interface Frequency | Source | Target |
|---|---|---|---|---|
| N/A |
Forms
The table below provides the forms identified on this Business Process.
Form Number | Form Description | Audience |
|---|---|---|
KKF001 | Override Request Form - Request form used by agencies to request a Budget or Investment Balance Checking override from DFS. | Agency KK Budget Processor, Agency KK Budget Maintainer, DFS Override Processor |
Workflows
The table below provides the workflows identified on this Business Process.
Workflow Number | Workflow Description | Audience |
|---|---|---|
KKW002 | Override Request Workflow - Workflow that routes the Override Request Form to DFS A&A for approval. | Agency KK Budget Processor, Agency KK Budget Maintainer, DFS Override Processor |
Version History
Date | Revision Description |
|---|---|
03/25/2024 | Original Version |
| 08/21/2024 | Updated Business Process Overview Updates to Steps 1-8 descriptions |
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