1.1. general information...1.1. general information process area trm – treasury management process...
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Department of Financial Services
Page 1 of 27 Treasury Management 06/03/2015
1.1. General Information Process Area TRM – Treasury Management
Process
Workflows
10.1 TRM – Cash Position 10.2 TRM – Agency Federal Bank Account 10.3 TRM – Investments 10.4 TRM – Reconciliations (Daily & Monthly) 10.5 TRM – Outside Banking Services 10.6 TRM – Establish Revolving Funds 10.7 TRM – Operate Revolving Funds 10.8 TRM – RF Closing / Balance Change 10.9 TRM – CMIA
As of 06/03/2015
1.2. Authors and Contributors Authors Deana Metcalf, State BPS Team
Gary Schneider, EY BPS Team Jordan Landreth, EY BPS Team
Contributors Agency Subject Matter Experts
1.3. Scope
This document depicts the high-level proposed business process design for the Treasury
Management (TRM) Process Area. The TRM Process Area is directly related to the Cash Inflow to
Outflow (CSH) Process Area. The related flow diagrams for each provide references to show the
connections. Both process areas need to be taken as a whole for the complete picture of cash in
both the Cash and Treasury processes for the State.
The TRM Process Area is represented by the following nine process workflows:
1. Cash Position 2. Agency Federal Bank Account 3. Investments 4. Reconciliations (Daily & Monthly) 5. Outside Banking Services 6. Establish Revolving Funds 7. Operate Revolving Funds 8. Revolving Fund Closing/Balance Changes 9. CMIA
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Page 2 of 27 Treasury Management 06/03/2015
1.4. Assumptions A Treasury ledger will be maintained separate from the Cash ledger to provide the ability for
the Treasury to meet its statutory reporting requirements The Cash and Treasury ledgers will be updated with the appropriate accounting entries based
on transactions performed Controls will ensure the Treasury and Cash ledgers are balanced There will be an interface with the Treasury’s bank accounts Agencies will schedule payments to assist with cash balance forecasting Bank to ledger balances will be reconciled on a daily basis Investment portfolio management (trading) is generally not standard to ERP software and was
not recommended for inclusion in the FLAIR Study The specific types of investments and related transactions (e.g., accruals, gains & losses,
amortizations, etc.) will be recorded for management and financial reporting purposes The Treasury ledger will capture SPIA participants and balance information The following Treasury systems will not be replaced as part of Florida PALM so interfaces may
need to be developed: o Investments (Trading) o Special Purpose Investment Account(SPIA) o Cash Management System (CMS) Archive o Certificate of Deposit (CD) o Collateral Administration Program (CAP)
Revolving fund payments will be outside of the accounting system but event details will be recorded in the accounting system. The Treasury ledger will capture CRA participant and balance information
The system needs to allow flexibility for future changes such as different payment types, different types of investments and related data elements and different data exchange methods
1.5. Standardized Process Area Overview The Chief Financial Officer has statutory authority to fully deposit and invest state funds in order
that the State realize maximum earnings and benefits. The Treasury manages those deposits and
investments for all state agencies and other entities created by Florida State Constitution or Law.
Funds received by the agencies are initially deposited into a single Treasury-managed
concentration account. The funds may be moved either to the Custodial Bank account for
investment in various portfolios or to the Disbursement accounts to cover payments issued by the
State that are being presented or withdrawn.
Treasury staff monitors the cash position in all of its accounts daily. A cash positioning worksheet
is used to plan for and determine immediate funding requirements involving amounts needed to
cover payments and residual funds available for investment. Funds needed to cover payments are
moved first from the Concentration account and then from the Custodial Bank account if funds are
still needed. Any excess funds are transferred to the Custodial Bank account and invested.
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The Custodial Bank account is invested into four types of portfolios: Liquidity, Short-Term, Intermediate-Term, and Long-Term investments. The Liquidity and Short-Term investment portfolios are managed by Treasury staff. The Intermediate and Long-Term investment portfolios are managed by External Managers. Investment earnings and fees are allocated to participants based on the average daily invested balances.
Daily, on-demand, and monthly reconciliations are performed on all bank accounts managed by the Treasury. Any exceptions are adjusted by either the bank, the Treasury or the appropriate agency until the accounts are reconciled.
Agencies must request approval of all outside banking services from the Treasury. Revolving fund requests must also be approved by the Division of Accounting and Auditing. Once the revolving fund has been established, the agency will issue checks directly to payees. Transactions involving the revolving fund are recorded when the financial events occur. The frequency and level of detail at which transactions are recorded will be established by policy. Revolving funds are replenished by payments issued to the fund through the P2P Process Area. Agencies must reconcile revolving funds monthly. The Treasury also reconciles the CRA account and invests excess balances through the SPIA account.
Treasury is also responsible for the Cash Management Improvement Act (CMIA) process. The expenditures and draws are tracked by Florida PALM for the applicable grants throughout the year. Clearance patterns are calculated and a report is generated annually for submittal to the U.S. Treasury.
1.6. Process Area Details
The table below describes each step in the process envisioned to use Florida PALM functionality to perform Treasury Managements functions. The Process Step ID refers to the step as depicted in the respective BPS Business Process Workflow diagram.
The workflow diagrams use horizontal swim lanes to depict where activities are likely to be performed by different entities. Each swim lane is titled with a role that is either agency- based or enterprise-based and in some cases representative of an external party (e.g. a bank, other commercial entity or federal or local governmental organization). The swim lane roles may be different at an agency.
The swim lanes may change from page to page within a single process area as more or fewer roles are required to execute sections of the overall process. In the table below, a list of roles involved in each section has been inserted where the process steps transition from page to page and a change occurs.
Workflow Page 1 of 9: TRM – Cash Position
Swim lanes – Definition
Treasury – DFS Division of Treasury
Concentration Bank – contracted bank where State funds are deposited
Disbursement Account – Payment processing bank account
Custodial Bank Account- Bank account where investments are managed
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SPIA – Special Purpose Investment Account
Process
Step ID
Process Name Description of Process Governing Laws
and Policies
TRM 1.1 SPIA Participants Deposit to the SPIA Account
Agencies or local governments make deposits
to the SPIA account
TBD
TRM IP 1.2
Transmit Transaction File from SPIA Application
Transactions in the SPIA application are
transmitted multiple times per day to Florida
PALM
TBD
TRM AE 1.3
Record SPIA Balances
Accounting entries for SPIA account activity
are recorded in Florida PALM
TBD
TRM 1.4 Funds Deposited into the SPIA Account Included in Overall Custodial Bank Account
Funds deposited into the SPIA account are
included in the overall Custodial bank account
for investment purposes
TBD
TRM 1.5 Liquidity Account Feeds the DDA Account with Available Funds
Available funds from the Liquidity account feed
the Demand Deposit (DDA) account
TBD
TRM IP 1.6
Transmit Transaction File for DDA Custodial Bank Account
Transactions for the Custodial bank account
are transmitted multiple times per day to
Florida PALM
TBD
TRM IP 1.7
Transmit Transaction File for the Main (Disbursement) Account
Transactions from the Main disbursement
account are transmitted to Florida PALM
multiple times per day
TBD
TRM IP 1.8
Transmit Transaction File for Concentration Account
Transactions for the Concentration account are
transmitted to Florida PALM multiple times
per day
TBD
TRM 1.9 Determine Cash Position by Account
Treasury staff monitors the balances in the Concentration account, Disbursement account, Custodial account, and the SPIA account multiple times each day
TBD
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Page 5 of 27 Treasury Management 06/03/2015
Process
Step ID
Process Name Description of Process Governing Laws
and Policies
A cash position is generated by Florida PALM from the bank balance information on demand
Treasury staff reviews requests for cash based on scheduled payments from P2P, daily receipt data, payroll payments, requested wire payments to determine the funds needed to cover payments and any excess funds that can be invested (intermittently throughout the day)
Treasury staff also uses scheduled payments
from P2P for longer-term planning for future
cash needs
TRM AE 1.10
Move all Available Funds from Concentration Account to Disbursement Accounts to Cover Needed Payments
Treasury staff first move cash from the Concentration account to the Disbursement accounts to cover payments clearing or being withdrawn
The movement is recorded in the Treasury Ledger
Treasury then determines whether any funds are still needed to cover payments and if there is any balance remaining in the Concentration Account
Chapter 17.57, F.S.
Chapter 17.61, F.S.
Chapter 69C-3, F.A.C.
TRM AE 1.11
Move Cash from Custodial Bank Account to Disbursement Account
If funds are still needed in the disbursement account, Treasury transfers funds from the Custodial account to the Disbursement account
The movement is recorded in the Treasury Ledger
Chapter 17.57, F.S.
Chapter 17.61, F.S.
Chapter 69C-3, F.A.C.
TRM AE 1.12
Move Cash to Custodial Bank Account
Funds remaining in the Concentration account that are not needed for payments are transferred to the Custodial account for investment
The movement is recorded in the Treasury Ledger
TBD
TRM 1.13 SPIA Participants Request Funds from the SPIA Account
SPIA participants request funds from the SPIA account as needed
This information is used in cash positioning (TRM 1.9)
TBD
TRM AE 1.14
Wire Funds from Custodial Bank Account to Participant
Treasury staff wire funds from the custodial bank account to the SPIA participant as funds are requested
The movement is recorded in the Treasury
TBD
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Process
Step ID
Process Name Description of Process Governing Laws
and Policies
Ledger
TRM 1.15 Funds Received by the SPIA Participant
Funds are received in the individual SPIA participant bank account
TBD
Workflow Page 2 of 9: TRM – Agency Federal Bank Account
Swim lanes – Definition
Treasury – DFS Division of Treasury
Agency – agency utilizing federal bank account
Federally Mandated Disbursement Account – State bank account mandated by federal government
IRS – Internal Revenue Service
Federal Bank Account - bank account used by the federal government for reemployment assistance
Process
Step ID
Process Name Description of Process Governing Laws
and Policies
TRM 2.1 Instruct Treasury to Leave Specific Balances in the Concentration Account and the Amount to Move to Other Accounts
Program collections are deposited in the Concentration account in the CSH Process Area
The agency reviews their cash needs and determines how much cash to leave in the Concentration account and how much cash needs to be transferred to other accounts and notifies Treasury
TBD
TRM AE 2.2
Wire Funds to Federal Bank Account
Treasury wires funds to Federal Bank account TBD
TRM 2.3 Receive Wire Transfer
The Federal Bank receives the wire transfer TBD
TRM IP 2.4
Transmit Debit Card, EFT & UC WH Data
Cash program needs for payments are determined in the Agency and handled through the GAC and ARB process areas and are deposited to the appropriate account in the CSH Process Area (CSH 1.3)
The agency transmits debit card, EFT & UC withholding data to Florida PALM
The agency transmits debit card data to their contracted vendor
TBD
TRM AE Voucher The vendor payment information for the debit TBD
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Process
Step ID
Process Name Description of Process Governing Laws
and Policies
2.5 Prepared for P2P Debit Cards
cards is posted in the P2P Direct Load process which generates a wire for the vendor
TRM 2.6 Bank Wire Funds to Contract Vendor
Funds from the Federally Mandated Disbursement account are wired to the contract vendor
TBD
TRM AE 2.7
Florida PALM records UC WH Tax and EFT Payments
Florida PALM records the Unemployment Compensation Withholding Tax and EFT Payment expenditures at a summary level based on information transmitted in TRM IP 2.4
TBD
TRM AE 2.8
Agency Records Detailed Accounting Information
The agency has the ability to further record/distribute the summary information recorded in TRM AE 2.7 to a more detailed level if needed
TBD
TRM IP 2.9
Transmit EFT Payment Data
The agency transmits the individual recipient payment data to the Federally Mandated Disbursement account bank
TBD
TRM 2.10 Bank Makes Individual EFT Payments
The bank makes the individual EFT payments to the beneficiaries
TBD
TRM 2.11 EFT Returns The bank notifies the agency of any EFT Returns
The agency will handle the returns through the ARB process area
TBD
TRM 2.12 Enter UC WH Tax Data in the EFTPS
DEO vouchers other payments that generate Unemployment Compensation Withholding (UC WH) amounts for the IRS in the P2P Process Area (e.g., RA benefit payments, FEMA, CSE)
The agency enters the UC WH tax data from the Project Connect system and from the vouchers into the Electronic Federal Tax Payment System (EFTPS)
TBD
TRM 2.13 Sweep Funds Due from Federally Mandated Disbursement Account
The IRS sweeps funds due from the Federally Mandated Disbursement account based on amounts entered in the EFTPS
TBD
TRM IP 2.14
Federally Mandated Disbursement Account Transactions/Ba
Transactions and balance information for the Federally Mandated Disbursements account is transmitted to Florida PALM
TBD
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Process
Step ID
Process Name Description of Process Governing Laws
and Policies
lance
TRM IP 2.15
Federal Bank Account Transactions/Balance
Transactions and balance information for the Federal Bank account is transmitted to Florida PALM
TBD
TRM CP 2.16
Monitor and Identify any new Transactions
The agency monitors account transactions on a daily basis to identify any new transactions (i.e., combined wage claims, FUTA credits)
TBD
TRM AE 2.17
Agency Records Accounting Entries to Reflect New Transaction Activity
The agency records an accounting entry for any new transactions posted to the Federally Mandated Disbursement Account or Federal Bank Account
TBD
TRM CP 2.18
Reconcile Accounts Monthly
At the end of the month, the agency reconciles both bank accounts to transactions recorded in Florida PALM
TBD
TRM AE 2.19
Agency Records Accounting Entry to show Cash in Bank Movement
Agency makes an accounting entry monthly to record the cash changes to the bank accounts during the month
TBD
TRM CP 2.20
Reconciles Federally Mandated Disbursement Account Daily
Treasury reconciles the Federally Mandated Disbursement account on a daily basis
TBD
TRM CP 2.21
Reconciles Federal Bank Account Monthly
Treasury reconciles the Federal Bank account on a monthly basis
TBD
Workflow Page 3 of 9: TRM – Investments
Swim lanes – Definition
Treasury – DFS Division of Treasury
Custodial Bank - bank account where investments are managed
External Trading Partners – external investment managers
Process
Step ID
Process Name Description of Process Governing Laws
and Policies
TRM 3.1 Investment Group
The Treasury Investment Group determines the split between the amount to be invested by
TBD
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Process
Step ID
Process Name Description of Process Governing Laws
and Policies
Determines Investment Allocation and Notifies External Manager of their Apportionment
Treasury staff and the amount to be invested by external managers
External managers manage intermediate term and long term portfolios
Internal managers manage the liquidity and short-duration portfolios
TRM AE 3.2
Record Portfolio Allocation
Treasury records trade information based on the type of portfolios
TBD
TRM 3.3 Purchase/Sell Investment Instruments
On a daily basis, Treasury invests any new cash transferred to the Custodial bank account (TRM 1.12) as well performs routine trading to maximize investment earnings
TBD
TRM 3.4 Trade Information is Sent and Confirmation Returned
Trade information is sent to External Traders (via external systems, email, phone)
Treasury receives confirmation of trades from external trading partners
TBD
TRM AE 3.5
Record Trade Information
Each trade ticket is recorded as trades are made and confirmed
TBD
TRM IP 3.6
Transmit Internal Trades File
Florida PALM transmits a file of internal trades to the Custodial Bank real-time as trades are made
TBD
TRM 3.7 Record Internal Trade Information
The bank records the internal trades in their system
TBD
TRM 3.8 External Managers Execute Trades
External Managers execute trades and send those trades to the Custodial Bank
TBD
TRM 3.9 External Managers’ Trade Information Captured
The bank records external trades in their system
TBD
TRM IP 3.10
Transmit Internal and External Trade Transactions File
The Custodial bank transmits internal and external trade transactions to Florida PALM in real or near real time
TBD
TRM CP 3.11
Reconcile Investment in Florida PALM with the Custodial Bank
Treasury receives a transaction file (TRM IP 3.10) of internal and external trades which are loaded into Florida PALM
The internal transactions are reconciled with trade information recorded by Treasury
The external trades are captured for recording
TBD
TRM AE Record External Florida PALM automatically posts external TBD
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Process
Step ID
Process Name Description of Process Governing Laws
and Policies
3.12 Trade Information
trade information Information is captured at the level required
for the CAFR External managers provide Treasury with a
monthly attestation by affirming accuracy of trade information, i.e. certification
TRM 3.13 System Calculates Interest and Fees Based on External and Internal Trades
Florida PALM calculates interest and fees based on internal and external trades
TBD
TRM AE 3.14
Earned Interest Calculations
Interest and fees are recorded daily Transactions are recorded for both interest
and fees as both accrual and cash
TBD
TRM 3.15 System Apportions Investment Earnings and Fees Based on ADB
Florida PALM uses the average daily balances from investments by the agencies (CSH AE 2.5) and from SPIA participants to determine apportionments on a monthly basis
The agency apportionments are recorded in the CSH Process area (CSH AE 2.7)
Investment earnings include interest, realized gains or losses, amortizations, etc.
TBD
TRM AE 3.16
Post SPIA Apportionment
The SPIA interest is apportioned in the Treasury Ledger
TRM AE 7.19 further apportions the CRA earnings
TBD
TRM IP 3.17
Transmit File to SPIA application
A file is generated and sent to the SPIA application to record the SPIA apportionments for participants
TBD
Workflow Page 4 of 9: TRM – Reconciliations
Swim lanes – Definition
Treasury – DFS Division of Treasury
Bank – All State bank accounts (e.g. Concentration Bank, Custodial Bank, Disbursement Bank etc.)
Process
Step ID
Process Name Description of Process Governing Laws
and Policies
TRM 4.1 Data Received from Banks Daily and On-
Data is received by Florida PALM for all of the bank accounts and is loaded in Florida PALM and used for reconciliations
TBD
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Process
Step ID
Process Name Description of Process Governing Laws
and Policies
Demand These data transmissions are identified on the CSH and TRM flows where originally received but have been grouped on this flow to show that they are used in the reconciliation process
TRM IP 4.2
Transmit Custodial Account Investment Data
Data from all of the Custodial bank accounts are transmitted daily and monthly (BAI)
TBD
TRM IP 4.3
SPIA BAI Data Data from SPIA bank account is transmitted daily and monthly
TBD
TRM 4.4 Reconciliation Process
All bank data is used in daily and monthly reconciliation processes
There are transaction reconciliation processes that are flowed in various places on the CSH and TRM process flows. These have been grouped on this flow to show that they are part of the overall reconciliation process
The Treasury Ledger is reconciled to all Bank accounts and to the Cash Ledger daily and a final reconciliation completed monthly
Treasury personnel will use the bank information and ledger balance information recorded in Florida PALM from the other processes to perform the Treasury Ledger to Bank Account and Treasury Ledger to General Ledger reconciliations
Exceptions are identified and, depending on the type of exception, established processes are used to reconcile
TBD
Workflow Page 5 of 9: TRM – Outside Banking Services
Swim lanes – Definition
Treasury – DFS Division of Treasury
Agency – agency requesting outside banking services
Process
Step ID
Process Name Description of Process Governing Laws
and Policies
TRM 5.1 Agency Requests
The agency that needs outside banking services makes a request to Treasury for
Section 17.29, F.S.
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Process
Step ID
Process Name Description of Process Governing Laws
and Policies
Outside Banking Services
approval If it is for a revolving fund, it would be handled
through the Establish Revolving Fund Process flow (TRM 6.1)
Section 17.57, F.S.
Chapter 69C-9, F.A.C.
TRM 5.2 Treasury Reviews and Evaluates Request
Treasury reviews and evaluates the request
Section 17.29, F.S.
Section 17.57, F.S.
Chapter 69C-9, F.A.C.
TRM 5.3 Notifies Agency If the request is denied, Treasury notifies the agency and the process ends
TBD
TRM CP 5.4
Set-up Bank Account in Florida PALM
If the request is approved and if it is a request for an outside bank account, Treasury sets up the account in Florida PALM
The agency will not be able to transact with the account until it is established in Florida PALM
TBD
TRM 5.5 Issue Approval Letter to Agency
Treasury issues a letter to the agency documenting approval of the outside banking services
TBD
TRM 5.6 Begin Using Banking Services
The agency can begin using the banking services
TBD
Workflow Page 6 of 9: TRM – Establish Revolving Funds
Swim lanes – Definition
Treasury – DFS Division of Treasury
Agency – agency requesting outside banking services
Process
Step ID
Process Name Description of Process Governing Laws
and Policies
TRM 6.1 Revolving Fund Request
An agency requests outside banking services through the Treasury. If these services are for a revolving fund, A&A approval is required to establish the account.
TBD
TRM CP 6.2
Review Revolving Fund Request
A&A reviews the request The fund must be established in R2R If the request is approved the request moves
to Treasury
TBD
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Process
Step ID
Process Name Description of Process Governing Laws
and Policies
TRM CP 6.3
Determine CRA vs. Non-CRA Bank
Approved requests are routed to Treasury where Treasury determines whether a CRA Bank is available and meets agency needs; if not the agency is permitted to use a non CRA Bank (i.e. a qualified public depository)
Section 17.58, F.S. Section 216.271, F.S. Chapter 69I-23, F.A.C.
TRM 6.4 Establish CRA Participant Profile/Bank Account
Treasury requests the CRA Bank to establish a sub account
Treasury configures the CRA account in Florida PALM
The agency can then generate a voucher to fund the initial deposit (P2P)
TBD
TRM 6.5 Revolving Fund Account Established
The CRA Bank sets up the CRA account on behalf of the State
Setup of the account includes establishment of control points such as authorized signatures, transactions limits and the need for dual signatures
TBD
TRM CP 6.6
Treasury Approves Non-CRA Bank Account
If a Non-CRA account is requested, Treasury reviews to ensure account will be with a QPD and any associated contracts, documentation are acceptable
TBD
TRM 6.7 Set-Up Bank Account in Florida PALM
If Treasury approves, they set-up the non-CRA Bank account in Florida PALM
TBD
TRM 6.8 Establish Non-CRA Bank Account
The agency establishes the non-CRA account at the bank
The account must require dual-signatures as a control
Section 17.58, F.S. Section 216.271, F.S. Chapter 69I-23, F.A.C.
TRM AE 6.9
Initial Establishment
The agency submits an invoice in P2P to fund the initial deposit and record the account
Once the invoice is processed, a payment is issued in P2P for the initial deposit
TBD
TRM 6.10 Funds Deposited into Bank Account
The funds are deposited into the bank account and are available to the agency for expenditures (TRM 7.1)
TBD
Workflow Page 7 of 9: TRM – Operate Revolving Funds
Swim lanes – Definition
Treasury – DFS Division of Treasury
Agency Reconciler – individual performing reconciliation of the revolving fund
Agency Revolving Fund Manager – individual managing the revolving fund
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CRA Bank- contracted bank where State funds are deposited
Process
Step ID
Process Name Description of Process Governing Laws
and Policies
TRM 7.1 Revolving Fund Expenditures
Once funds are deposited, they are available for expenditures
Payments are issued directly from the revolving fund to the payees
TBD
TRM 7.2 Recording Revolving Fund Activity in the Account Register
The agency records entries as needed to reflect revolving fund activities
This information could be uploaded from agency business system
Section 216.271, F.S. Chapter 69I-23, F.A.C.
TRM 7.3 Replenishment Amount Calculated
The replenishment amount is calculated and the agency creates an invoice(s) in the P2P Process Area to obtain funds to restore the account balance
The requested amount should include any bank fees and/or interest earnings to accurately capture all transactions in the accounting system
Section 216.271, F.S. Chapter 69I-23, F.A.C.
TRM AE 7.4
Record Revolving Fund Replenishment
Revolving fund replenishment transactions are recorded in Florida PALM
This generates a payment from P2P
Section 216.271, F.S. Chapter 69I-23, F.A.C
TRM 7.5 Funds Deposited into Bank Account
The payment is deposited at the revolving fund bank
TBD
TRM IP 7.6
Transmit Daily File
The CRA Bank generates and transmits a Daily file of account activity to Florida PALM
Transactions are by subaccount
TBD
TRM IP 7.7
Non-CRA Bank Activity File
If available, an electronic file from the non-CRA Bank containing account activity is loaded into Florida PALM on behalf of the agency
TBD
TRM 7.8 Non-CRA Bank Statement
A paper account statement may be generated by the non-CRA Bank for use by the agencies to reconcile non-CRA accounts
Statements should be scanned into Florida PALM
TBD
TRM CP 7.9
Agency Reconciliation Process
The Agency Reconciler performs a reconciliation process to ensure account activity recorded by the banks are consistent with agency transactions
CRA bank activity can be viewed in Florida
TBD
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Process
Step ID
Process Name Description of Process Governing Laws
and Policies
PALM on-demand to reconcile CRA accounts
TRM CP 7.10
Monthly Treasury Reconciliation of CRA
Treasury reconciles the overall CRA monthly CRA bank activity can be viewed in Florida
PALM on-demand to reconcile CRA accounts
TBD
TRM 7.11 Contact Non-CRA Bank to Resolve
If the agency finds an exception involving a non-CRA bank, the agency contacts the bank to resolve the issue
TBD
TRM 7.12 Contact CRA Bank
If there are issues with the CRA bank’s statement, Treasury contacts the bank to resolve whether the agency or Treasury finds the exception
Treasury communicates resolution to the agency, if applicable
TBD
TRM AE 7.13
Transaction Correction Entry
If the Treasury finds an internal issue during their reconciliation process, they may need to book an accounting entry to correct
TBD
TRM AE 7.14
Post Transactions from CRA File into Florida PALM
CRA transactions from the CRA bank interface file are posted to Florida PALM
TBD
TRM CP 7.15
Monitor Cash Position and Determine Amounts Available for Investment/ Disinvestment
Treasury monitors the cash position of the CRA and determines the funds available for investment or that need to be disinvested
TBD
TRM 7.16 CRA Funds Invested or Disinvested in SPIA
Based on cash position, Treasury either invests or disinvests which is recorded in the SPIA application
TBD
TRM 7.17 Wire Funds to/from SPIA/CRA
Treasury wires funds between the CRA account and the SPIA account based on investment/ disinvestment determination
Transactions are recorded in the CRA Daily file (TRM IP 7.6) on an on-going basis
TBD
TRM AE 7.18
CRA Investment/ Disinvestment Transactions are Posted to
CRA transactions are automatically posted to Florida PALM
TBD
Department of Financial Services
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Process
Step ID
Process Name Description of Process Governing Laws
and Policies
Florida PALM
TRM AE 7.19
System Apportions Interest and Fees Monthly Based on ADB CRA Total (by Account/ Fund)
Interest and fees are calculated based on average daily invested fund balances and posted to the SPIA account (TRM AE 3.16)
The SPIA account further allocates to the CRA participant account
TBD
TRM AE 7.20
System Apportions Interest and Fees to Agency Participants
Interest and fees are further apportioned to agency participants at the lowest level of detail
TBD
TRM IP 7.21
Transmit CRA Investment Transactions/Balances to Agency Business Systems
Florida PALM generates and transmits an interface file of CRA transactions and balances to agency business systems (as needed)
TBD
Workflow Page 8 of 9: TRM – RF Closing and Balance Change
Swim lanes – Definition
A&A - DFS Division of Accounting and Auditing
Treasury – DFS Division of Treasury
Agency Revolving Fund Manager – individual who manages the revolving fund
Process
Step ID
Process Name Description of Process Governing Laws
and Policies
TRM 8.1 Need to Change Account Balance or Close
The agency determines a need to change the revolving fund account balance or close the account
TBD
TRM 8.2 Write Check from Revolving Fund
If the account is being decreased or closed a check is written from the Revolving Fund and a Deposit created ( CSH CP 1.1)
If the account is being closed, the agency should ensure all transactions have cleared and perform a final reconciliation prior to closing the account
TBD
TRM 8.3 Request to Increase/ Decrease or Notification to
The agency requests approval to increase, decrease or close the account from A&A
A copy of the voucher and related deposit must be included for account decreases or
Section 17.14, F.S.
Section 17.29, F.S.
Department of Financial Services
Page 17 of 27 Treasury Management 06/03/2015
Process
Step ID
Process Name Description of Process Governing Laws
and Policies
Close Account closings. Section 216.271, F.S.
Chapter 69I-23, F.A.C.
TRM CP 8.4
Review Revolving Fund Request
A&A reviews the agency request
Section 17.14, F.S.
Section 17.29, F.S.
Section 216.271, F.S.
Chapter 69I-23, F.A.C.
TRM 8.5 Notify Agency A&A notifies the agency if the request is not approved and the process ends
Section 17.14, F.S.
Section 17.29, F.S.
Section 216.271, F.S.
Chapter 69I-23, F.A.C.
TRM 8.6 Send Approval Letter to Agency
If the increase / decrease is approved by A&A and if the request is for a decrease or close action, A&A notifies the agency and the process ends
Section 17.14, F.S.
Section 17.29, F.S.
Section 216.271, F.S.
Chapter 69I-23, F.A.C.
TRM 8.7 Send Approval Letter to Agency
If the request is approved by A&A and it is for an account increase, A&A sends an approval letter to the agency
Section 17.14, F.S.
Section 17.29, F.S.
Section 216.271, F.S.
Chapter 69I-23, F.A.C.
TRM 8.8 Send Copy of Approval Letter to Treasury
In either case of approval, (TRM 8.6 and TRM 8.7) A&A sends a copy of the approval letter to Treasury
TBD
TRM AE 8.9
Record Increased Balance
If the account is being increased, the agency creates an invoice in P2P and records the increased balance in Florida PALM
TBD
TRM 8.10 Funds Deposited A payment is generated in P2P and funds are TBD
Department of Financial Services
Page 18 of 27 Treasury Management 06/03/2015
Process
Step ID
Process Name Description of Process Governing Laws
and Policies
into Bank Account
deposited into the revolving account The agency can begin expending the funds
(TRM 7.1)
TRM 8.11 Close account in Florida PALM
If the account is being closed and it is a CRA account, Treasury closes the CRA subaccount in Florida PALM and at the CRA bank
If the account being closed is a non-CRA , Treasury closes the account in Florida PALM
TBD
Workflow Page 9 of 9: TRM – CMIA
Swim lanes – Definition
Treasury – DFS Division of Treasury
A&A – DFS Division of Accounting and Auditing
Agency – agency with grants subject to CMIA
Process
Step ID
Process Name Description of Process Governing Laws
and Policies
TRM IP 9.1
AG File of Audited SEFA
Treasury receives the AG file of the audited Schedule of Expenditures of Federal Awards (SEFA)
TBD
TRM 9.2 Calculate Top 90% of Grant Programs Based on Expenditures on Audited SEFA
The AG file is used to identify the grants that make up top 90% of grant expenditures
Grants meeting the selection criteria are identified in the grants setup and maintenance (GAC )
Federal Cash Management Improvement Act
TRM 9.3 Grant Expenditures Occurring in P2P
Agency makes grant expenditures in P2P These transactions are recorded with the
associated grant ID which identifies as a CMIA applicable grant
TBD
TRM 9.4 Federal Draw Occurs in ARB Based on Anticipated or Actual Grant Expenditure Payments
The agency makes their federal draw in ARB The draw is based on anticipated or actual
expenditure payments depending on the reimbursement terms of the grant
The draw should not be made more than three days before the payment date
TBD
TRM 9.5 Clearance Pattern Calculated by Grant
Florida PALM calculates the clearance pattern for each grant. The clearance pattern is the difference between the cash received date and the payment clear date
Federal Cash Management Improvement Act
Department of Financial Services
Page 19 of 27 Treasury Management 06/03/2015
Process
Step ID
Process Name Description of Process Governing Laws
and Policies
Treasury uses a 3-month average calculated annually
TRM 9.6 Annual CMIA Report Generated by CFDA and Component
Florida PALM generates a report in accordance with the CMIA by CFDA and Component (i.e. direct, admin, salary)
Federal Cash Management Improvement Act
TRM CP 9.7
Agency Reviews Report for their Grants
The agency receives the report from Treasury and reviews their grants for accuracy and provides concurrence
Federal Cash Management Improvement Act
TRM 9.8 Final Report Entered and Original Signed and Mailed
Treasury generates the final report and enters the amounts in the U.S. Treasury system
The original report is signed and mailed to the U.S. Treasury
Federal Cash Management Improvement Act
TRM 9.9 Voucher Created for CMIA Payment
If, based on the submitted report the State owes the federal government interest under CMIA, a CMIA payment is generated in P2P by A&A
TBD
TRM 9.10 Claim Submitted through ARB
If, based on the submitted report the federal government owes the State interest under CMIA, a grant draw is made in ARB by A&A
TBD
1.7. Integration Integration
ID
FFMIS or Key
System
Integration Description
TRM IP 1.2 SPIA Application to Florida PALM
Transmit Transaction File from SPIA Application
TRM IP 1.6 Custodial Bank to Florida PALM
Transmit Transaction File for DDA Custodial Bank Account
TRM IP 1.7 Disbursement Account Bank to Florida PALM
Transmit Transaction File for Main Disbursement Account
TRM IP 1.8 Concentration Account Bank to Florida PALM
Transmit Transaction File from Concentration Account
TRM IP 2.4 DEO Agency Business System (Project Connect) to Florida PALM
Transmit Debit Card, EFT & UC WH Data
Department of Financial Services
Page 20 of 27 Treasury Management 06/03/2015
Integration
ID
FFMIS or Key
System
Integration Description
TRM IP 2.9 DEO Agency Business System (Project Connect) to Federally Mandated Disbursement Account
Transmit EFT Payment Data
TRM IP 2.14 Federally Mandated Disbursement Account to Florida PALM
Federally Mandated Disbursement Account Transactions/Balance
TRM IP 2.15 Federal Bank Account to Florida PALM
Federal Bank Account Transactions/Balance
TRM IP 3.6 Florida PALM to Custodial Bank
Transmit Internal Trades File
TRM IP 3.10 Custodial Bank to Florida PALM
Transmit Internal and External Trade Transactions
TRM IP 3.17 Florida PALM to SPIA Application
Transmit File to SPIA Application
TRM IP 4.2 Custodial Bank to Florida PALM
Transmit Custodial Accounts Data
TRM IP 4.3 SPIA Bank to Florida PALM
SPIA BAI Data
TRM IP 7.6 CRA Bank to Florida PALM
Transmit Daily File
TRM IP 7.7 Non-CRA Banks to Florida PALM
Non-CRA Bank Activity File
TRM IP 1 Agency Business System to Florida PALM
Agency business system interface uploading revolving fund activity
TRM IP 7.21 Florida PALM to Agency Business Systems
Transmit CRA Investment Transactions/Balances to Agency Business Systems
TRM IP 9.1 Auditor General to Florida PALM
AG File of Audited SEFA
Department of Financial Services
Page 21 of 27 Treasury Management 06/03/2015
1.8. Control Points Control Pt.
ID
Control Point Description
TRM CP 1 Dual agency signatures required for banking activity
1.9. Reporting Report
No.
Description Frequency
and
Triggering
Event
Audience(s) Classification Governing Laws
and Policies
TRM R1
Cash Position Worksheet
Periodic, On Demand
Treasury Staff Operational TBD
TRM R2
Ledger Exception/ Balance Report
Periodic, On Demand
Treasury Staff Operational TBD
TRM R3
DEO Income-Expense Analysis
Monthly DEO Staff Treasury Federal Government
Operational Federal OMB No. 1205-0154
TRM R4
Reconciliation exceptions, unreconciled items and reconciled items
Periodic, On Demand
Agency Staff Treasury staff
Operational TBD
TRM R5
Inventory Report Periodic, On Demand
Treasury Staff Operational TBD
TRM R6
Trades Report Periodic, On Demand
Treasury Staff Operational TBD
TRM R7
Balance Sheet Report
Periodic, On Demand
Treasury Staff Operational TBD
TRM R8
General Journal Entries
Periodic, On Demand
Treasury staff Operational TBD
TRM R9
Commercial Paper Compliance Reports
Periodic, On Demand
Treasury Staff Operational TBD
TRM R10
Reconciliation report of trades entered but not settled
Periodic, On Demand
Treasury Staff Operational TBD
TRM R11
External Manager Certification
Monthly Treasury Staff Operational TBD
TRM R12
Investment Maturity and Accrual Reports
Periodic, On Demand
Treasury Staff Operational TBD
Department of Financial Services
Page 22 of 27 Treasury Management 06/03/2015
Report
No.
Description Frequency
and
Triggering
Event
Audience(s) Classification Governing Laws
and Policies
(Monthly and life-to-date)
TRM R13
Cash Movement Report (income, accrued interest, etc.)
Periodic, On Demand
Treasury Staff Operational TBD
TRM R14
CAFR Investments Schedules
Annually, On Demand
Treasury Staff A&A Staff
Operational Management
TBD
TRM R15
Apportionment Report
Periodic, On Demand
Treasury Staff Operational TBD
TRM R16
Annual Qualified Public Depository Report
Annual Agency Staff Treasury Staff
Management Section 280.16, F.S.
TRM R17
Revolving Fund Account Listing
On Demand Treasury Staff A&A Staff Agency Staff
Operational TBD
TRM R18
Quarterly Revolving Account Report
Periodic Agency Staff Treasury Staff EOG
Management Section 17.58, F.S.
TRM R19
Revolving Fund Balance Report (Florida PALM Ledger Balance)
On Demand Treasury Staff A&A Staff Agency Staff
Operational TBD
TRM R20
CRA Bank Activity Reports used for reconciliation
Periodic, On Demand
Agency Staff Treasury Staff
Operational TBD
TRM R21
CRA Daily Bank File Error Report
Daily Treasury Staff Operational TBD
TRM R22
Closed Account Report
On Demand Treasury Staff A&A Staff Agency Staff
Operational TBD
TRM R23
Draft Annual CMIA Report
Annually Treasury Staff Agency Staff
Operational TBD
TRM R24
Final Annual CMIA Report
Annually Treasury Staff Agency Staff Federal Government
Management TBD
CSH R3 Qtrly Report for
Clearing and
Quarterly Treasury Staff Management Section 17.58(4), F.S. Chapter 69C-1.005, F.A.C.
Department of Financial Services
Page 23 of 27 Treasury Management 06/03/2015
Report
No.
Description Frequency
and
Triggering
Event
Audience(s) Classification Governing Laws
and Policies
Revolving Accounts
CSH R4 Annual Report of
Outside Banking
Service Contracts
By July 15th Treasury Staff Management Chapter 69C-9.005, F.A.C.
1.10. Accounting Events Accounting
Event ID
Description Accounting Entry
DR – Debit
CR – Credit
Accounting Entry
Treasury Ledger
DR – Debit
CR – Credit
TRM AE 1.3 Record SPIA Balances TBD TBD
TRM AE 1.10
Moves Cash from Concentration to Disbursement Account
No entry DR Cash in Bank – Disbursement Account CR Cash in Bank – Concentration Account
TRM AE 1.11
Move Cash from Custodial Bank Account to Disbursement Account
No entry DR Cash in Bank - Disbursement Account CR Cash in Bank - Custodial Account
TRM AE 1.12
Move Cash to Custodial Bank Account
No entry DR Cash in Bank – Custodial Account CR Cash in Bank – Concentration Account
TRM AE 1.14
Wire Funds from Custodial Bank Account to SPIA Participant
TBD TBD
TRM AE 2.2 Wire Funds to Federal Bank Account
TBD TBD
TRM AE 2.5 Voucher Prepared for Debit Cards
TBD TBD
TRM AE 2.7 Florida PALM records UC WH Tax and EFT Payments
TBD TBD
TRM AE 2.8 Agency Records Detailed Accounting Information
TBD TBD
Department of Financial Services
Page 24 of 27 Treasury Management 06/03/2015
Accounting
Event ID
Description Accounting Entry
DR – Debit
CR – Credit
Accounting Entry
Treasury Ledger
DR – Debit
CR – Credit
TRM AE 2.17
Agency Records Accounting Entries to Reflect New Transaction Activity
TBD TBD
TRM AE 2.19
Agency Records Accounting Entry to show Cash in Bank Movement
TBD TBD
TRM AE 3.2 Record Portfolio Reallocation TBD TBD
TRM AE 3.5 Record Trade Information (internal trades)
Sale: DR Cash DR Loss on Sale of Investment (if Loss) CR Pooled Investments with State CR Gain on Sale of Investments (if Gain)
Purchase: DR Investments DR Investments - Purchased Interest Receivable CR Cash in Bank – Custodial Account Sale: DR Cash in Bank – Custodial Account DR Investment Income Liability (if loss) CR Investments CR Investment – Purchased Interest Receivable CR Investment Income Liability (if gain)
TRM AE 3.12
Record External Trade Information
TBD TBD
TRM AE 3.14
Earned Interest Calculations (cash and accrual)
Accrue Interest Daily: DR Accrued Interest Receivable CR Investment Income Liability Maturity: DR Cash in Bank – Custodial Account CR Investments Receive Interest: DR Cash in Bank – Custodial Account
Department of Financial Services
Page 25 of 27 Treasury Management 06/03/2015
Accounting
Event ID
Description Accounting Entry
DR – Debit
CR – Credit
Accounting Entry
Treasury Ledger
DR – Debit
CR – Credit
CR Accrued Interest Receivable
TRM AE 3.16
Post SPIA Apportionment TBD TBD
TRM AE 6.9 Initial Establishment Revolving Fund: DR Cash CR Advances from other funds Source Fund: DR Advances to other funds CR Cash
CRA: DR Cash in Bank – CRA CR CRA Participant Liability No entry for Non-CRA:
TRM AE 7.4 Record Revolving Fund Expenditures and Replenishment
Revolving Fund: DR Advances from other funds CR Cash Applicable Fund: DR Expenditures CR Cash (result produces warrant to replenish Revolving Fund) Revolving Fund: DR Cash CR Advances from other funds
CRA: DR CRA Participant Liability CR Cash in Bank – CRA No entry for Non-CRA CRA: DR Cash in Bank – CRA CR CRA Participant Liability No entry for Non-CRA:
TRM AE 7.13
Transaction Correcting Entry TBD TBD
TRM AE 7.14
Post Transactions from CRA file into Florida PALM
TBD TBD
TRM AE 7.18
CRA Investment/Disinvestment Transactions
TBD TBD
TRM AE 7.19
System Apportions Interest and Fees
TBD TBD
TRM AE 7.20
System Apportions Interest and Fees to Agency Participants
TBD TBD
Department of Financial Services
Page 26 of 27 Treasury Management 06/03/2015
Accounting
Event ID
Description Accounting Entry
DR – Debit
CR – Credit
Accounting Entry
Treasury Ledger
DR – Debit
CR – Credit
TRM AE 8.9 Record Increased Balance TBD TBD
1.11. Key Performance Indicators/Measures Measure Relevance Data Elements Needed to Generate
Measure
Portfolio Interest Earnings Performance
Accurate cash forecasting can lead to better investment decisions
Return on investment per dollar invested
Trends for the return on investments annual by month compared to previous years
Grant Draw/Payment Clearance Performance
How timely are draws to payments to minimize interest owed to Federal government
Avg number of days between receipt of funds and payment clear date
Number of draws made greater than three days prior to payment date
Amt of interest paid to Feds/total amt of draws
Trends for the three measures identified above
Timely Recording of Revolving Fund Expenditures
Capture expenditure information more timely and ensure at the authorized balance
Date of transaction compared to date of accounting entry
Number of reconciling items
Helps to identify problem areas, process performance
Number of exceptions for each (named) reconciliation process
Trends for reconciliation measures identified above
Frequency of reconciling exceptions
Effectiveness of electronic postings Effectiveness of initial transaction entry
Amount of time to resolve exception for each (named) reconciliation process
Trends for resolution of exceptions Number of outstanding reconciling items older than one week
Trends identify ability to reconcile items in a “reasonable” amount of time
Number of unreconciled items with elapsed time greater than one week
Number of unreconciled items with elapsed time greater than one month
Trends for measures identified above
Number of bank accounts
Management of accounts and leveraging existing accounts
Number of bank accounts opened and closed during the month
Number of bank accounts opened and closed during the year
Department of Financial Services
Page 27 of 27 Treasury Management 06/03/2015
Measure Relevance Data Elements Needed to Generate
Measure
Net change in number of bank accounts for the year
Trends for bank account measures identified above
Number of banking relationships
Use of non-Treasury contracted banks should be minimized
Number of banking relationships at the beginning and end of year
Year-over-year trends for number of banking relationships
1.12. Future Enhancements • Revolving Fund functionality incorporated into the accounting system
• Trading incorporated into the accounting system