CFO MEETING

January 26, 2011

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Agenda Financial Reporting WCO – AP Transformation Travel Project 3% Rule PeopleSoft Update Agency Needs Questions

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Financial Reporting FY 2010 CAFR and BCR are done!

Thanks for your help. See SAO website for copy

Single Audit in progress and on schedule

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Financial Reporting A review of journal entries processed revealed the

following:Type AJE Budget Fund EW Fund Gen Fund Other Funds Grand TotalEntity Wide Conversion 86 86General Fund Conversion 154 154ISF Entries 118 118PCA 124 1 5 130Tie Out Beg FB 242 51 93 386Other (Ending FB, Timing, Other Funds, etc.) 65 3 136 204Included/ Excluded/ Reclassifications 154 14 192 411 771Audit Entries 91 1 92Grand Total 676 100 402 763 1,941

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Faster CAFR External parties are pushing for CAFR earlier than 12/31 Planning for FY 2011 reporting season

• Includes policy updates such as lease accounting• GASB 54 implementation• Fund Balance Account usage• Fund Balance Account Reconciliations• Fund Source Standardization

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Working Capital AP Transformation

New Executive Order for Prompt Payments• Issued December 21, 2010• Replaced by policy to be

issued by SAO • Pay electronically• Pay on time• Take discounts if available

Vendor Conversion Process• Check to ACH conversion

New Vendor Maintenance forms

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Progress Reporting CHK and EFT payments by vendor class

Allows SAO to show how well the state overall doing converting to ACH

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% of payments by type and BU Will allow us to

demonstrate how successful your agency has been in conversion process.

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Travel Project Travel Management Company Online booking and expense reporting tools Travel Policy revisions

Mileage rate change memo

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3% Rule TAX INCREASE PREVENTION AND RECONCILIATION

ACT OF 2005 - IRS SECTION 3402(t) Generally requires 3% withholding on payments for

property and services• Invoice for $10,000• Vendor paid $9,700 by agency• IRS paid $300 by agency• Vendor paid in full

Applies to payments made after December 31, 2010 (revised to 12/31/2011)

Applies to all U.S. Government agencies, state governments, and all subdivisions or instrumentalities of state government

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3% Rule EXCEPTIONS

Made by a political subdivision which makes less than $100 million in annual payments

Payments otherwise subject to withholding For retirement benefits, unemployment compensation,

or social security For real property Public assistance, made on the basis of need or income

(but programs based on age (i.e. Medicare) are included)

To employees in connection with service, such as retirement plan contributions, fringe benefits, expense reimbursements

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3% Rule PAYMENT THRESHOLD

Required to withhold on payments of less than $10,000. TRANSITION RULE

Payments under contracts in effect six months after final regulations issued and not materially altered are not subject to rules• Proposed regulations will address contract renewals

HOW TO REPORT Withholding required at the time of payment Withholding reported to Form 1099-MISC

FAILURE TO WITHHOLD Government becomes liable for the tax.

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PeopleSoft Update PeopleSoft Functional Team Reorganization

New leadership New technology Renewed focus on customer

Customer Service Center Specialists UPK Survey

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