Performing Month End Procedures

Overview

Agencies are required to report on transactions from appropriations and/or receipts each month. The report formats are prescribed by the Office of State Budget (OSBM). By the 10th working day of the following month, the agency is responsible for certifying that the month end reports are accurate and complete. The agency is responsible for checking and acknowledging the accuracy of its month end reports while month end production and distribution are controlled centrally.
Each agency identifies persons with the responsibility of pre-certifying the month end reports to the Office of the State Controller by phone to the OSC Support Services Center by the tenth working day of the following month. The OSC then generates copies of the reports for the General Assembly Fiscal Research and any designated agency copies that night. Electronic copies of the reports are available in Systemware.
If an agency records a prior period adjustment after producing month-end certified reports, the agency must recertify for that month and any subsequent months. Agencies must notify the OSC and explain any prior period adjustments. The OSC will assist the agency in reissuing the impacted reports.

Preliminary Month-End Reports

During the nightly production cycle for the first fifteen business days of the month, OSC produces an agency's preliminary month-end reports needed for reconciliation. These reports are available in Systemware and can be viewed or printed by an agency as needed. The Systemware report title names and associated reports are as follows:

 

 

Note: An asterisk (*) in the job/group name represents a region specific variable. Use C to reference report groups in the SCCP region. Use F to reference report groups in the NC23 region.

Versions of these reports are also available in the GLPUBLIC library with the prefix C-U-GL-report name. Any agency that has not certified by the fifteenth business day is responsible for running the preliminary month-end reports all by themselves from the GLPUBLIC library.

Monthly Budget Report Reconciliation Procedures

The purpose of the Monthly Budget Report Reconciliation Procedures is to reconcile appropriations, allotments, disbursements, receipts and cash activities by budget code to the Cash Management Control System (CMCS) and North Carolina Accounting System General Ledger. There are four reconciliation procedures to account for each type of budget code an agency might have:

• General Fund
• Federal Fund
• Capital Improvement (CI) Fund
• Special Funds

Any fund other than a General Fund, Federal Fund, or CI is termed a Special Fund.

Before an agency begins to reconcile these reports, all activity for the month must be posted to the NCAS General Ledger and the CMCS system. This means that:

• All unfinished documents created through the Budgetary Control module that have effective dates for the certified period are completed, approved, and posted.
• The suspense account (Account 99999999899 / Center 999999999998) should have a zero balance for all companies. All suspense account entries that have effective dates for the certified period must be cleared.
• All special suspense accounts such as the Payroll Suspense account (Account 531999 / Center 9999), Health Benefits Suspense account (Account 531998 / Center 9999), and Mail Service Suspense account (Account 532849 /  Center 9999) should have a zero balance for all companies. /li>
• There are no error batches in the Suspended Batch Master (SBM) with effective dates for the month being certified.
• The Disbursing Account (111250) for all companies has a zero balance. The disbursing account must be cleared after each check cycle. The entry to clear the Disbursing Account is a debit to the Disbursing Account and a credit to the Allotment Account (111270) or Budget Code Cash Account (111260).
• If the month being certified is a quarter-end month, the quarterly reversion must be recorded prior to reconciling the reports so that the BD702 report reflects the reversion. The first, second, and third quarter reversion entries have effective dates in the following month. The fourth quarter reversion entry has an effective date of June 30.  For an example of how to calculate the reversion entry from the BD702 report, see BD702 and Reversions.
• The AP encumbrances and PS encumbrances listed on the Box Totals report (C-GL-BOX TOTALS) are zero for all companies.
• All company totals on the Box Totals report (C-GL-BOX-TOTALS) are equal to zero.
• The ending cash balances on the Statement of Cash, Receipts, Disbursements, and Balances (BD704) report are correct for all special revenue funds.

For information on reconciling reports by the general funds budget code to the Cash Management Control System, see the Reconciling General Funds Step-by-Step. For information on reconciling reports by the special control funds budget code to the Cash Management Control System, see the Reconciling Special Funds Step-by-Step. For information on reconciling reports by the federal funds budget code to the cash management control system, see the Reconciling Federal Funds Step-by-Step. For information on reconciling reports by the capital improvement funds budget code to the cash management control system, see the Reconciling Capital Improvement Funds Step-by-Step.

Report Certification Process: Guidelines

Statewide reporting guidelines require an agency to certify by the tenth working day that its prior month's financial reports are accurate and ready to be made available to the central managers. The central manager agencies are OSC, Office of State Budget Management, Office of the State Auditor, and the Fiscal Research Division of the General Assembly.  Some of the central managers review electronic copies of the reports, while others require hardcopies.  Each agency is responsible for distributing any hardcopy reports to central managers if required.  The certification process requires several steps.

Certification Procedure

• An agency pre-certifies to the OSC Support Services Center by phone before 2:00 p.m. by the 10th working day. At the time an agency calls both NCAS and CMCS must be in balance with each other.  Using Systemware, the State Accounting Division of OSC performs a review of the financial information located in the MOPRE series of month-end reports.  The following restrictions apply:
  • Certification by non-authorized personnel is not accepted.
  • Certifications received after 2 p.m. are deferred for processing until the next working day.

• If, after review by the OSC, an agency has submitted incorrect data, the OSC notifies the agency of the problem area.  The OSC provides assistance as needed to resolve the problem.  Once the agency corrects the data and verifies that the reports have been reconciled, the agency must call the OSC Support Services Center by 2:00pm to Re-precertify.  When calling to re-pre-certify, the agency must reference the HEAT ticket number that was given to the caller at the time the agency pre-certified originally.
• Once the pre-certification process is complete, the agency is considered certified for that month. Certified reports will run before processing occurs that night.
• Certified information is due to the central managers by the tenth working day of the month.  The OSC notifies OSBM and Central Managers of agency certification.
• An agency distributes hardcopy reports as required.
   

The following are two examples of the certification procedures:

CASE A
 

CASE B
 

Note: In Case B, if Agriculture notified the OSC Support Services Center to pre-certify its data on the tenth working day, a correction entry would have been processed that night.  Therefore, Agriculture would be late meeting the certification deadline.

See Month-End Report Certification Readiness Checklist.

Systemware Report

Certified month-end reports are available in Systemware under the following titles:

• OSCOP*MOCER-1 BD701 REPORTS
• OSCOP*MOCER-2 BD701F REPORTS
• OSCOP*MOCER-3 BD702 REPORTS
• OSCOP*MOCER-4 BD725 REPORTS
• OSCOP*MOCER-5 BD800 REPORTS
• OSCOP*MOCER-6 BD704 REPORTS

June Reports only:

• OSCOP*MOCEY-1 BD701   REPORTS
• OSCOP*MOCEY-2 BD701F REPORTS
• OSCOP*MOCEY-3 BD702   REPORTS
• OSCOP*MOCEY-4 BD725   REPORTS
• OSCOP*MOCEY-5 BD800   REPORTS
• OSCOP*MOCEY-6 BD704   REPORTS

Note: An asterisk (*) in the job/group name represents a region-specific variable.  Use 'C' to reference report groups in the SCCP region.  Use an 'F' to reference report groups in the NC23 region.

Recertification of Month-End Reports

Occasionally, an agency needs to recertify a period previously certified.  An agency can only recertify one period per day.  If an agency is correcting an error that goes back a number of months, the earliest period should be recertified first.  The process to recertify a prior period is similar to the normal certification process.  However, pre-certification reports for prior periods are not available through Systemware.  Prior month's pre-certification reports must be run using Information Expert (IE).

Recertification Procedure Steps

• An agency notifies the OSC Support Services Center by phone before 2:00 p.m. that the agency needs to recertify a previous period.
• The OSC Support Services Center submits the job to create the new certified reports for this prior period.  The new certified reports are available for review using Systemware under the MORCE report series that night.

• The OSC notifies OSBM of agency recertification.  
• An agency distributes hardcopy reports as required.
   

Systemware Report Locations

Recertified month-end reports are available in Systemware under the following titles:
 

• OSCOP*MORCE-1 BD701 REPORTS
• OSCOP*MORCE-2 BD701F REPORTS
• OSCOP*MORCE-3 BD702 REPORTS
• OSCOP*MORCE-4 BD725 REPORTS
• OSCOP*MORCE-5 BD800 REPORTS
• OSCOP*MORCE-6 BD704 REPORTS

Note: An asterisk (*) in the job/group name represents a region specific variable.  Use 'C' to reference report groups in the SCCP region.  Use an 'F' to reference report groups in the NC23 region.