Manage Cash Checking (20.2.2)
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Manage Cash Checking (20.2.2)
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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 Cash 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 Spendable Cash along with the appropriate ChartField values. Source module transactions will be checked by the Spendable Cash ledger to complete Cash Check functionality. The configuration of the Florida PALM Spendable Cash ledger is set at control and therefore only cash exceptions will be rendered and therefore, no warnings are issued.
The following criteria is applied for Cash Checking:
- All Trust Fund cash transactions are subject to Cash Check functionality and will update the Spendable Cash ledger within the Commitment Control module.
- All General Revenue (GR) Fund cash transactions are subject to Budget Check functionality of each agency’s GR releases appropriations within the Commitment Control module. The GR Fund cash balance is managed exclusively by DFS/A&A.
- Deposits are cash checked and if approved and verified, updates (increases) the Spendable Cash ledger balance if the transaction passes.
- Spendable Cash will be restored systematically based on the impact of a source transaction, i.e. expenditure refund is processed.
The Cash Check process looks at the Spendable Cash ledger available balance and makes one of the following determinations:
- Passes Cash Check – If there is spendable cash available, the transaction will pass Cash Check, entries are created in the Spendable Cash ledger, available spendable cash balance is impacted, and it will proceed with the source modules transaction lifecycle.
- Fails Cash Check – If there is not sufficient spendable cash available, the transaction will fail Cash Check, cash errors are issued, no entries are created, and there is no impact to available spendable cash balance as the transaction has been stopped.
Cash Check errors continue to be systematically checked by Commitment Control until the cash errors have been resolved. Once Cash Check errors are resolved the source modules transaction lifecycle proceeds and the Spendable Cash ledger is updated.
The Manage Cash 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 cash exception. The Commitment Control designated DFS KK Budget Maintainer and/or Agency KK Cash Maintainer roles will have access to manage cash exceptions resulting from the Cash Check process.
The Human Capital Management Module (Payroll) transactions are configured to pass budget and cash checking for the successful processing of time sensitive transactions. This is the only module that allows for its transactions to go negative for budget and cash. Agencies are required to take the appropriate actions needed to ensure the payroll budget and cash negatives are cleared timely to support the payroll warrant. The primary reporting resource is the Budget and Cash Negative Balances Report which is available for review and resolving negatives. Please see below Commitment Control Module Management and Reporting Tools for more information.
- Negatives – HCM (Payroll) transactions that have resulted in budget or cash negatives can be resolved in one of the following ways:
- Increase the spendable cash balance, i.e. perform a disinvestment transaction using the investment activity page, post verified/approved deposits, or perform an expenditure move.
- Increase remaining spending authority (appropriation balances), i.e. posting of approved budget amendments or perform an expenditure move (restores balance).
- Budget Negative - Appropriations will be restored systematically based on the impact of a source transaction, i.e. when an encumbrance transaction is reduced and/or cancelled.
- Cash Negative - Spendable Cash will be restored systematically based on the impact of a source transaction, i.e. expenditure refund is processed.
Please see Appendix B – Commitment Control Budget and Cash Checking Exceptions below for error resolutions.
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 Cash Maintainer: Agency role responsible for reviewing and managing Cash Check exceptions
- DFS KK Override Processor: DFS role responsible for performing Cash 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 Cash Check | Cash Check is initiated by source module processors or an automated scheduled process. Cash Check validates source transactions to available Spendable Cash and ChartField values. If no errors result from the Cash Check, the transaction passes, updates the KK Spendable Cash ledger, and proceeds with the source modules transaction lifecycle. If errors exist, the Agency KK Cash Maintainer manages the Cash Check exceptions. The Spendable Cash ledger is set at control and therefore only cash exceptions will be rendered and therefore, no warnings are issued. The Account type of asset is cash checked and updates the Spendable Cash ledger if transaction passes and proceeds with the source modules transaction lifecycle. Cash Check validates source module’s transactions from the below business subprocesses:
|
2 | Update KK Spendable Cash Ledger Balance | Source modules transactions that successfully pass Cash Check are processed, consume Spendable Cash, update KK Spendable Cash ledger balance, and proceed with the transaction lifecycle. In the case of a verified deposit, the Spendable Cash ledger balance is increased. The Budgets Overview screen, Schedule of Allotment Balances Report, Agency Commitments Report, and Budget and Cash Checking Exceptions/Warnings Report are available for review and management purposes. |
3 | Manage Cash Exceptions Issued | Cash Check errors are exceptions that have failed cash checking because they do not conform to the rules established. Transactions with errors have failed Cash Check, do not consume Spendable Cash, and therefore do not update the KK Spendable Cash ledger. Cash Check errors continue to be systematically checked by Commitment Control until the cash errors have been resolved. Once Cash Check errors are resolved the source modules transaction lifecycle proceeds and the Spendable Cash ledger is updated. The Agency KK Cash Maintainer can view the Commitment Control Notification feature which includes notifications by email and workflow worklist and Exception Inquiry pages. All transactions that fail Cash Check produce errors and are included in the Budget and Cash Checking Exceptions/Warnings Report and the Budgets Overview screen is available for review and management purposes. |
4 | Perform Edits in Source Modules | The Agency KK Cash Maintainer works collaboratively with source module roles within Florida PALM and performs due diligence to review and resolve cash exceptions. Once Cash Check errors occur, the options available to resolve errors in the source modules are as follows: Cash Check errors continue to be systematically checked by Commitment Control until the cash errors have been resolved. Once Cash Check errors are resolved the source modules transaction lifecycle proceeds and the Spendable Cash ledger is updated. Transactions with errors that have failed Cash Checking, do not consume Spendable Cash, and therefore do not update the KK Spendable Cash ledger. Voucher with a Cash Exception displays a voucher with a Cash Exception. The Budgets Overview screen, Schedule of Allotment Balances Report, Agency Commitments Report, and Budget and Cash Checking Exceptions/Warnings Report are available for review and management purposes. |
5 | Sumit Override Request Form (KKF001, KKW002) | The Agency KK Cash Maintainer submits Override Request Form, along with supporting documentation through workflow to the DFS KK Override Processor for consideration. The Budgets Overview screen, Schedule of Allotment Balances Report, Agency Commitments Report, and Budget and Cash Checking Exceptions/Warnings Report 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 a Cash Check to occur immediately or on the next system-scheduled Cash Check process. Once the transaction is cash checked, it will pass as an overridden transaction, update the KK Spendable Cash ledger to reduce spendable cash, and proceed with the source module transaction lifecycle. With the approval of the override request, the transaction meets the cash checking rules established, and continues processing as described in the below business subprocesses:
The Budgets Overview screen, Schedule of Allotment Balances Report, Agency Commitments Report, and Budget and Cash Checking Exceptions/Warnings Report 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 Cash Check to pass, the transaction will proceed to its source module lifecycle. Transactions that are approved for override will be included in the Budget and Cash Checking Exceptions/Warnings Report. The Budgets Overview screen, Schedule of Allotment Balances Report, Agency Commitments Report, and Budget and Cash Checking Exceptions/Warnings Report 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 Cash Check. Transactions that are denied will remain on the Budget and Cash Checking Exceptions/Warnings Report. The Budgets Overview screen, Schedule of Allotment Balances Report, Agency Commitments Report, and Budget and Cash Checking Exceptions/Warnings Report are available for review and management purposes. |
Voucher with a Cash Exception:
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 |
R6 | GLR083 | Investment Activity Report - Investment transactions and balances by pool and participant. | 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 |
|---|---|
08/21/2024 | Original Version |
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