United States Department of Agriculture

Research, Education, and Economics

ARS CSREES ERS NASS

Bulletin

Title:	Policy and Procedures for Processing Collections

in the Foundation Financial Information System (FFIS)

Number:	02-314

Date:	December 2, 2002	Expiration:	December 2, 2003

Originating Office:	FFIS Operations Branch,

Financial Management Division, ARS/AFM

Distribution:	Area Administrative Officers

Servicing Budget and Fiscal Officers

Budget and Program Management Staff

Background

During the first year of experience with the Foundation Financial Information System (FFIS), it was discovered that expenditures were incurred prior to receiving the budget authority or the actual receipt of funds (checks) from the cooperators. As a result, obligations and expenses had to be offset by other trust funds receipts or transferred to the annual appropriation(s) to absorb these unauthorized charges. Also, when these funds (checks) were sent to the lockbox and deposited, they were not always reflected on the FFIS inquiry tables such as ALLT.

Policy

Effective October 1, 2002 (FY 2003), FFIS processing of all receipt of funds will change as follows:

FFIS transactions for ABCO Cash Receipts (A2), Voluntary Collections (A3), and Bank Deposits (A7) will require a level of approval by the Servicing Budget and Fiscal Officer (SBFO) before any spending can occur;

Hard controls have been placed on the allotment level (accounting/program code levels) requiring budget documents (BE's and BL's) to be established before any spending can occur.

While these measures are being taken to address the issues noted above, FFIS cannot distinguish between check deposits and other types of collection activity such as refunds, garnishments, and sale of asset deposits. These transactions are also posted to FFIS as A2, A3, and A7 documents. Therefore, they will require a level of approval as well. A budget document (BL) must be entered for the program code before the SBFO's approve these. This business process mainly impacts funds: 87, 88, 89, 91, 92, 93, and 95, but may also impact other funds that have this type of spending activity.

Steps in the Process

The following steps will be taken by the SBFO's and the Budget and Program Management Staff (BPMS) after the ARS-425 has been approved; in accordance with P&P 321.1, Acceptance of Non-Appropriated Funds to Conduct Research or Perform Services:

SBFO's will:

1)	Based on the actual check received, post the receipt of funds in the ARS-425 system. The process for handling wire transfers will be issued under separate cover.

2)	Establish the ACCS elements (PGMT, DVAL, ACXT) in FFIS.

NOTE: Since the ABCO feeder system validates against ACXT, this must be done prior to the check being sent to the lockbox.

3)	Establish the BL document in FFIS and place in a HELD status pending execution of the BE document.

4)	Deposit Check to appropriate accounting code following guidance provided in

P&P 326.0. Provide the vendor code of the organization sending the check. Checks

should be deposited against revenue source code 0199.

NOTE: Separate ARS-326-1 forms, Records of Public Funds Received and Transmitted for Deposit, should be sent to the lockbox by fund and budget object code to ease ABCO processing and more readily identify transactions in FFIS. In other words, refunds for expenses should be on separate transmittals than collections of revenue.

BPMS will:

5)	Generate allocations once the ARS-425 is approved.

6)	Establish BE documents in FFIS on a weekly basis with the exception of yearend when processing will occur daily.

NFC/ABCO will:

7)	Generate all A2, A3, and A7 documents through the ABCO system as a result of transmittals sent to the lockbox.

8)	Work A2, A3, and A7 documents in a REJCT status prior to approval by the SBFO's.

9)	Modify A2, A3, and A7 documents for incorrect data elements such as budget object codes/ revenue source codes once notified by the SBFO's.

SBFO's will:

10)	After verifying that the BE document(s) have been entered by BPMS on the ALOC table, run BL document(s) for all A2, A3 and A7 documents in a PEND1 status. This should be done for documents within the SEC1 code for your applicable Area as well as those in SEC1 = 00.

NOTE: BL documents must be processed prior to approving A2, A3 and A7 documents to ensure they will update the Act Reimb Amt field on ALLT.

At the beginning of the fiscal year, BE documents will be entered so that A2, A3, and A7 documents will process once approved and update the appropriate inquiry tables.

11)	Approve A2, A3, and A7 documents in a PEND1 status. Once approved, the deposit will be reflected on ALLT in the Act Reimb Amt field.

IMPORTANT: All documents in a PEND1 status MUST be approved by the 3rd workday of each month to avoid out-of-balance conditions with the monthly 224 process. Do NOT place them in a HELD status. Any adjustments for incorrect accounting must be made through ABCO Inquiry (504-255-5344).

12)	Notify the Location Administrative Officer/Technician of the new accounting code and

financial plan.

13)	Transmit agreement, ARS-324, and screen shot of vendor record to ARS Operations

Section, NFC.

In summary, any A2, A3, and A7 documents that have passed FFIS edits and are in a PEND1 status must be approved following the aforementioned steps by the third workday of the following month. DO NOT ATTEMPT TO CHANGE ANY DATA ELEMENTS ON THESE DOCUMENTS OR MAKE STANDARD VOUCHER ADJUSTMENTS (B2 documents). Changes to these documents for incorrect accounting, budget object code/revenue source code, etc., must be made through ABCO Inquiry (504-255-5344).

If you have any questions, please contact the FFIS Helpdesk on 301-504-4429.

/s/

S.M. HELMRICH

Director

Financial Management Division