Carry Foward (20.3.1)

1

Prepare for Budget Close (Enterprise)

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 eligible 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.

2

Prepare for Budget Close (Agency)

Agencies prepare for budget close by reviewing all DFS and EOG/OPB published memorandums that provide instructions, guidance, and deadlines for fiscal year-end activities including Carry Forward. DFS provides information related to undisbursed appropriations for operations, identified as eligible incurred obligations, and certified Fixed Capital Outlay (FCO) undisbursed appropriations, pursuant to Section 216.301, F.S.

Agencies will identify and process eligible incurred obligations as part of the fiscal year-end closeout process and take all appropriate steps to prepare for budget close. The amounts identified as eligible incurred obligations must not exceed available appropriation balances by the budget entity, category, fund, and budget period (appropriation year).

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. Please reference 10.4 Close General Ledger and Consolidate 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.

3

Manage Budget and Cash Checking Exceptions

Agencies are responsible for the resolution of all budget and cash check exceptions. Budget and Cash Check errors are exceptions that have failed budget and/or cash checking because they do not conform to the rules established. Budget and Cash Check errors continue to be systematically checked by KK until errors have been resolved. Once Budget and Cash Check errors are resolved the transaction lifecycle continues in the source modules and KK budget and/or cash ledgers are updated. Transactions with errors have failed Budget and Cash Check, do not consume budget or cash, and therefore do not update the KK budget/cash ledgers.

All transactions that fail Budget Check produce errors and/or warnings and transactions that fail Cash Check produce errors only, (no warnings are issued) and are included in the Budget and Cash Checking Exceptions/Warnings Report.

DFS provides an oversight role of budget and cash exceptions in support and preparation of the budget close process and the auto close and delete functionality.

Please reference 20.2.1 Manage Budget Checking, 20.2.2 Manage Cash Checking, 20.2 Budget Execution and Management, and Appendix B for Budget and Cash Check options available to resolve errors in the source modules and for more information.

4

Execute Auto Close and Delete Transactions

The Execute Auto Close and Delete Transactions functionality will run to close and delete the following:

• all inflight prior year transactions including encumbrances, carry forward payables, accruals, and vouchers/payments that were not posted prior to the 1st reversion;
• all unresolved exceptions (edit, budget, or cash).

The use of this functionality will enhance operational efficiency and automate the management of transaction lifecycles as a part of the budget close process for the 1st Carry Forward / Operating reversion.

5

Prepare Tentative Carry Forward/Certified Forward Balances

The Carry Forward (operating) and Certified Forward (fixed capital outlay) unexpended release balances as of June 30, 20XX are identified and prepared to be transmitted to LAS/PBS.

Any balances in the operating budget held in unbudgeted reserve on June 30, 20XX and unreleased appropriation balances will not be carried forward and will revert, therefore cannot be restored.

The unexpended release balances of fixed capital outlay appropriation categories will be tentatively certified forward as well as the unreleased approved budget and any amount held in reserve as of June 30, 20XX.

6

Extract Tentative Carry Forward/Certified Forward Balances

DFS extracts a data file of tentative carry forward / certified forward balances as of June 30, 20XX as part of the fiscal year-end closing and perform budget close activities.

7

Transfer Tentative Carry Forward/Certified Forward Balances (KKI005)

DFS transfers a data file of tentative Carry Forward and Certified Forward balances file as of June 30, 20XX as part of the year-end closing and perform budget close activities. The following balances are transferred:

• Operating & FCO Unexpended Releases,
• FCO Unexpended Appropriations Less Mandatory Reserve,
• Total FCO Unbudgeted Reserve, and
• FCO Approved Budget Unreleased.

8

Receive/Load Tentative Carry Forward/Certified Forward Balances

EOG/OPB receives and loads to LAS/PBS the tentative Carry Forward and Certified Forward balances file, as of June 30, 20XX.

9

Verify Tentative Carry Forward/Certified Forward Balances

EOG/OPB verifies tentative Carry Forward / Certified Forward balances file, as of June 30, 20XX.

10

Identify Eligible Agency Incurred Obligations Carry Forward/FCO Projects

DFS systematically identifies all eligible agency incurred obligations / FCO Projects, which include encumbrance, accrual, carry forward payable, carry forward payroll payables, and AP Voucher records that have operating appropriations at the end of the fiscal year as eligible agency incurred obligations.

Request for Certifications of FCO appropriations is statutorily required for all FCO balances, regardless of type or year in which the appropriation was made; all balances will be reviewed and are subject to reversion. Agencies funded with FCO appropriations are required to reconcile project balances and related activities in the Project Costing module to appropriation balances maintained in the Commitment Control module in support of the Request for Certifications FCO appropriations. Please reference 90.1.6 FCO Certification Forward Request sub-process for more information.

11

Extract Eligible Agency Incurred Obligations Carry Forward/FCO Projects

DFS extracts a data file of eligible agency-incurred obligations Carry Forward / FCO Projects which includes all Carry Forward / Certified Forward requests for EOG/OPB approval which are used to load data into LAS/PBS.

12

Transfer Eligible Agency Incurred Obligations Carry Forward/FCO Projects (KKI011)

DFS transfers a data file of eligible Agency Incurred Obligations / FCO Projects (Carry Forward / Certified Forward Requests) to LAS/PBS.

13

Receive / Load Eligible Agency Incurred Obligations Carry Forward/FCO Projects

EOG/OPB receives and loads eligible agency-incurred obligations carry forward / FCO Projects data file into LAS/PBS.

EOG/OPB will examine the data for technical accuracy and process the data for the creation of reversion entries.

14

Verify Load Eligible Agency Incurred Obligations Carry Forward/FCO Projects

EOG/OPB verifies the load of eligible agency incurred obligations Carry Forward / FCO Projects, as of June 30, 20XX.

15

Conduct Carry Forward Technical Review/Unit Checklist

EOG/OPB conducts a Carry Forward Technical Review / Unit Checklist that addresses the following:

• Legislative intent of eligible incurred obligations,
• Determines unobligated carry forward balances,
• Reviews annual General Appropriations Act (GAA), and
• Reviews corresponding budget Implementing Bill.

The Carry Forward Technical Review / Unit Checklist supports the creation of reversion entries as a part of the perform budget close processes.

EOG/OPB, DFS KK Budget Maintainer, and DFS KK Budget Processor work collaboratively throughout the Carry Forward Technical Review / Unit Checklist to ensure statutory compliance and that the appropriate transactions are recorded as directed by GAA and/or budget Implemental Bill prior to the first carry forward / operating reversion.

16

Conduct Carry Forward Balances Review

The DFS KK Budget Maintainer or Processor conducts Carry Forward balances review to confirm ChartField combinations and balances to ensure compliance with legislative intent.

DFS KK Budget Maintainer or Processor, and EOG/OPB work collaboratively throughout EOG/OPB’s Carry Forward Technical Review / Unit Checklist.

17

Request/Monitor Agency Adjustments in Appropriate Source Modules

The DFS KK Budget Maintainer or Processor and EOG/OPB work collaboratively while EOG/OPB conducts Carry Forward Technical Review / Unit Checklist and if eligible agency incurred obligations and unobligated Carry Forward balances require adjustments in Florida PALM and LAS/PBS, appropriate adjustment transactions are recorded to support the budget close process.

The DFS KK Budget Maintainer or Processor and EOG/OPB communicate with agencies regarding any agency adjustments warranted of requested carry forward balances for operating accounts due to technical review/unit checklist determined by EOG/OPB.

18

Record Adjustments in Appropriate Source Modules

Agencies make appropriate adjustments to the source module transactions to reflect the updates determined by EOG/OPB and ensure that adjustments made to source transactions reconcile to carry forward balances.

The following are the business subprocesses that may require adjustments in source modules:

• 10.2.3 Agency Create and Approve Journals
• 10.2.4 Enterprise Create and Approve Journals
• 30.2.1 Create and Maintain Encumbrances
• 30.2.3 Establish Enterprise Encumbrances
• 30.3.1 Process Vouchers
• 30.3.5 Enterprise Process Voucher
• 60.1 Enter and Maintain Receivables
• 60.2 Deposit and Apply Receipts
• 100.7 Payroll Accounting Distributions
• 110.1 Establish and Maintain Inter/IntraUnit Encumbrances
• 110.2 Inter/IntraUnit Accruals and Transaction Processing
• 110.3 Period Close and Year-End Processing

19

Validate/Record Agency Adjustments in Appropriate Source Modules

The DFS KK Budget Maintainer or Processor validates and/or records agency adjustments (when necessary) to the source module transactions to reflect the updates determined by EOG/OPB and ensures that adjustments made to source transactions reconcile to carry forward balances.

20

Review GAA/Implementing Bill

DFS KK Budget Maintainer or Processor reviews the annual General Appropriations Act (GAA) and the corresponding budget Implementing Bill while working collaboratively with EOG/OPB to ensure compliance and that appropriate actions are recorded, which may impact the closing and/or upcoming fiscal year.

Please reference 20.1.1 Enterprise Post Appropriations for the recording of budget journals if needed by the budget Implementing Bill.

21

Determine 1st Carry Forward/Operating Reversion Balances

EOG/OPB determines 1st Carry Forward / Operating appropriations reversion balances as part of the perform budget close process to ensure compliance with Sections 216.301(a) and (b), F.S. Any balances in operating accounts held in unbudgeted reserve on June 30, 20XX and unreleased appropriations balances do not carry forward.

22

Publish Agency Operating Recap/FCO Reports

DFS publishes Agency Operating Recap / FCO Reports (summary and detail) and makes available to agencies.

Agencies transmit the Agency Operating Recap / FCO Reports and, if applicable, the FCO Certified Forward Request Report with Agency Head Certification to EOG/OPB. Agencies with FCO will transmit one copy of the report to the Department of Management Services, Division of Real Estate Development and Management.

DFS provides support to agencies with any questions regarding Carry Forward / Certified Forward Reports. Agencies generate Carry/Certified Forward Request Reports for all appropriation categories to maintain records for agency auditing purposes.

EOG/OPB reviews and conducts different levels of review of Agency Recap Reports for operational and FCO appropriations. Agencies identify any issues and collaborate with EOG/OPB if there are adjustments warranted. This is an iterative process between EOG/OPB and agencies. EOG/OPB makes any adjustments necessary, as agencies do not have access to the Carry/Certifications Forward transactions in LAS/PBS.

23

Transfer 1st Carry Forward/Operating Reversion Balances (KKI001)

EOG/OPB transfers a data file of 1st Carry Forward /Operating Reversion Balances from LAS/PBS to Florida PALM.

24

Receive 1st Carry Forward/Operating Reversion Balances

DFS receives data file of 1st Carry Forward / Operating reversion balances from LAS/PBS to Florida PALM.

25

Post Budget Journals (Carry Forward - July)

During the Budget Close process, budget journals are created for Carry Forward reversions. Upon running the Budget Close process, reversion amounts are posted to the Budget Ledger. Reports and queries are generated after budget journals have been posted to confirm the posting.

26

Run Budget Close Reports

The DFS KK Budget Maintainer or Processor will perform the Run Budget Close Reports process step which includes running the Budget Close Calculation Log report and other appropriate reports to begin validation of the close process.

27

Analyze Budget Close Reports

The DFS KK Budget Maintainer or Processor will analyze Budget Close Reports. This includes the review of the validation reports to ensure budgets were closed correctly and that all budgets required to be closed were included. If no issues are identified the process will proceed. However, if issues are identified with the close, the DFS KK Budget Maintainer or Processor can Undo the Budget Close.

28

Execute Budget Close Undo Process

The Execute Budget Close – Undo process step is performed if based upon the review and reconciliation, the Budget Close was not correct (e.g., Configuration error). This process step does an “Undo,” so corrections can be made, and the process can be rerun.

29

Correct Budget Close Issue(s)

Once the Undo process step is run, appropriate corrections can be made so that all errors are addressed. Once all errors are resolved, the Budget Close process can be re-executed.

30

Communicate Budget Close to Agencies

Once the Budget Close process has been successfully executed and all results have been successfully validated, the DFS KK Budget Maintainer will notify EOG/OPB and agencies. Agencies continue to process payments during the carry forward period and begin review of carry forward balances and eligible incurred obligations to confirm the results of the closing FY before beginning the transactions in the new FY.

31

Manage Budget and Cash Checking Exceptions

Agencies are responsible for the resolution of all budget and cash check exceptions. Budget and Cash Check errors are exceptions that have failed budget and/or cash checking because they do not conform to the rules established. Budget and Cash Check errors continue to be systematically checked by KK until errors have been resolved. Once Budget and Cash Check errors are resolved the transaction lifecycle continues in the source modules and KK budget and/or cash ledgers are updated. Transactions with errors have failed Budget and Cash Check, do not consume budget or cash, and therefore do not update the KK budget/cash ledgers.

All transactions that fail Budget Check produce errors and/or warnings and transactions that fail Cash Check produce errors only, (no warnings are issued) and are included in the Budget and Cash Checking Exceptions/Warnings Report.

DFS provides an oversight role of budget and cash exceptions in support and preparation of the budget close process and the auto close and delete functionality.

Please reference 20.2.1 Manage Budget Checking, 20.2.2 Manage Cash Checking, 20.2 Budget Execution and Management, and Appendix B for Budget and Cash Check options available to resolve errors in the source modules and for more information.

32

Execute Auto Close and Delete Transactions

The Execute Auto Close and Delete Transactions functionality will run to close and delete the following:

• all open prior year encumbrances, carry forward payables, accruals, and vouchers that were not fully paid prior to the 2nd reversion;
• all unresolved exceptions (edit, budget, or cash).

The use of this functionality will enhance operational efficiency and automate the management of transaction lifecycles as a part of the budget close process for the 2nd Carry Forward / Operating reversion.

33

Complete Carry Forward Technical Review/Unit Checklist

EOG/OPB completes the Carry Forward Technical Review / Unit Checklist that supports the creation of reversion entries as a part of the budget close processes.

EOG/OPB, DFS KK Budget Maintainer, or Processor work collaboratively to ensure appropriate transactions are recorded as directed by GAA and/or budget Implemental Bill prior to the second carry forward / operating reversion.

34

Complete Carry Forward Balances Review

The DFS KK Budget Maintainer or Processor completes the Carry Forward balances review to confirm ChartField combinations and balances to ensure compliance with legislative intent.

DFS KK Budget Maintainer or Processor and EOG/OPB work collaboratively to ensure appropriate transactions are recorded as directed by GAA and/or budget Implemental Bill prior to the second carry forward / operating reversion.

35

Configure Budget Close Process (Carry Forward – September)

The configuration of the Budget Close process includes defining rules and other required budget actions.

The configuration of the Budget Close Process includes the following:

• Define ChartField Value Sets
• Define Budget Period Sets
• Define Budget Closing Rules
• Define Budget Close Sets
• Run the Budget Close Process

36

Execute Budget Close Process (Carry Forward - September)

The Budget Close process is executed and will reduce all unobligated budget amounts without closing out the budget for the designated ChartField string. The Budget Close process will reduce the budget amount equal to the eligible incurred obligations so that the remaining spending authority is zero.

37

Post Budget Journals

During the Budget Close process, budget journals are created for Carry Forward reversions. Upon running the Budget Close process, reversion amounts are posted to the Budget Ledger. Reports and queries are generated after budget journals have been posted to confirm the posting.

38

Run Budget Close Reports

The DFS KK Budget Maintainer or Processor will perform the Run Budget Close Reports process which includes running the Budget Close Calculation Log report and other appropriate reports to begin validation of the close process.

39

Analyze Budget Close Reports

The DFS KK Budget Maintainer or Processor will analyze Budget Close Reports. This includes the review of the validation reports to ensure budgets were closed correctly and that all budgets required to be closed were included. If no issues are identified the process will proceed. However, if issues are identified with the close, the DFS KK Budget Maintainer or Processor can Undo the Budget Close.

40

Execute Budget Close Undo Process

The Budget Close – Undo process step is performed if based upon the review and reconciliation, the Budget Close was not correct (for example, configuration error). This process step does an “Undo,” so corrections can be made, and the process can be rerun.

41

Correct Budget Close Issue(s)

Once the Undo process step is run, appropriate corrections can be made so that all errors are addressed. Once all errors are resolved, the Budget Close process can be re-executed.

42

Extract 2nd Carry Forward/Operating Reversion Balances

DFS extracts a data file of 2nd Carry Forward / Operating Reversion balances as of September 30, 20XX as part of the fiscal year-end closing and budget close activities.

43

Transfer 2nd Carry Forward/Operating Reversion Balances (KKI005)

Florida PALM transfers the data file of the 2nd Carry Forward / Operating Reversion balances file as of September 30, 20XX as part of the fiscal year-end closing and budget close activities.

The file is transferred to EOG/OPB to be loaded into LAS/PBS after running the Florida PALM Budget Close process.

44

Receive/Load 2nd Carry Forward/Operating Reversion Balances

EOG/OPB receives and loads the data file of 2nd Carry Forward Operating Reversion balances in LAS/PBS.

EOG/OPB publishes Operating (Carry Forward) Reversions Memorandum.

45

Communicate Budget Close to Agencies

Once the Budget Close process has been successfully executed and all results have been successfully validated, the Budget Close process is complete. The DFS KK Budget Maintainer will notify EOG/OPB and agencies of the successful Budget Close.

N/A

Accounting Events occur in the General Ledger and source modules and not directly in the Commitment Control Ledger

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

R7

KKR041

Operating/FCO Agency Recap Report – Report that displays summary and detailed information for appropriations, expenditures, carry forward/certified forward requests, and reversion amounts including agency-eligible incurred obligations.

PeopleSoft

Periodic

DFS, Agency

R8

KKR043

Carry Forward/Certified Forward Variance Reports – A custom report that lists the Operating and FCO transactions not approved and any other necessary adjustments.

PeopleSoft

Periodic

DFS, Agency

R11

KKR057

Tentative Carry Forward / Certified Forward Balances Report – A report that lists Carry Forward (Operating) and Fixed Capital Outlay (FCO) Unexpended Releases, FCO Unexpended Appropriations less Mandatory Reserve, Total FCO Unbudgeted Reserve, and FCO Approved Budget Unreleased balances.

PeopleSoft

Periodic

DFS, Agency

R12

KKR067

Budget Period Close Report – A report that displays budget periods with balances by ChartField string.

PeopleSoft

Periodic

DFS, Agency

KKI001

Inbound Budget Journal – Inbound interface containing General Appropriations Act (GAA)/Adjusted Appropriations, Supplementals, Budget Amendments, Carry Forward 1st Reversion, and Certified Forward (FCO) Reversions (September & February). Agencies can load budget allotments and estimated revenue data into Florida PALM.

PeopleSoft

Periodic

DFS, Agency

KKI011

Outbound Agency Incurred Obligations / FCO Projects (Carry / Certified Forward Requests) – Outbound interface containing Agency Incurred Obligations (Accounts Payables, Encumbrances, and Accounts Receivables) and FCO Projects to be approved for Carry/Certified Forward requests to LAS/PBS for all agencies.

PeopleSoft

Periodic

DFS, Agency

KKI005

Outbound Tentative and Reversion Balances – Outbound interface containing Tentative Carry Forward / Certified Forward balances and Carry Forward appropriation reversions to LAS/PBS.

PeopleSoft

Periodic

DFS, Agency

N/A

N/A

Original Version