June 12, 1997
MEMORANDUM No. NCAS-97-0056
TO: Chief Fiscal Officers
FROM:
Chuck Cooper
Assistant State Controller
SUBJECT: Correction to Purchase Order Encumbrance Balances in General Ledger
Many agencies have reported problems in reconciling their outstanding purchase order balances to the General Ledger encumbrance balances. These exceptions have resulted from the Purchasing system sales tax unencumbrance process or the use of PS in the application code field for Accounts Payable direct invoices. Other differences are related to inappropriate Budgetary Control (BC) encumbrance adjustments processed by agency personnel.
To correct these balances, the Office of the State Controller (OSC) has created automated BC Encumbrance Adjustment documents to correct the purchasing (type 83) encumbrance balances in the General Ledger. The entry is designed to bring the General Ledger in balance with the outstanding purchase orders, net of previously posted BC encumbrance adjustments.
The document will be processed in BC as an unfinished document to allow agency personnel the opportunity to evaluate the validity of the adjustments. Only agency personnel with access to the agencys production operator id will be able to edit the unfinished documents. The transactions will be entered into BC on Monday, June 16 for the P region and on Tuesday, June 17 for the NC23 region. The document id will be XX38YYCORR, where XX represents the first two digits of the company and YY represents the last two digits of the company. Not every agency will require an adjustment and therefore an unfinished document will not appear in its unfinished document list.
This entry should correct any balances resulting from previous encumbrance problems related to purchase order processing. It will not, however, correct any inappropriate BC encumbrance adjustments previously processed by individual agencies. Agencies which routinely encumber funds by means of BC documents need to evaluate the propriety of transactions posted to the General Ledger and correct any balances as necessary.
It is the responsibility of the agency to review these BC documents and edit, end, or kill them, as appropriate. Your assistance in resolving these discrepancies is most appreciated. Please refer any questions related to the purchasing encumbrance adjustments to the NCAS Client Support Section at 875-HELP.
CHC/eac