MEMORANDUM NO. FSD 040008
 

TO:	NCAS CFO Contacts NCAS Accounts Payable Contacts
FROM:	Don Waugh Assistant State Controller
SUBJECT:	Inter/Intra Governmental Transactions

The State of North Carolina has always needed a method for making payments within and between state agencies that allows the cash to remain under the State Treasurer’s control and not go through the private banking system.  For agencies using the North Carolina Accounting System (NCAS), the Office of the State Controller (OSC) has developed a method for doing this.  The process uses the NCAS Accounts Payable (AP) module to record the payments and generate transfer entries into the Cash Management Control System (CMCS) for agency processing.  For agencies using the NCAS, the new process will replace the transfer policy that was stipulated in Memorandum No. 04-04, dated September 3, 2003.  Memorandum 04-04 required the use of CMCS for all internal agency transfers and for the transfers of Major Federal Assistance Program funds between agencies.  It also required the use of CMCS for all transfers/payments between agencies when the amount was over $1,000.00, with the option of recording all payments this way.

Attached is a detailed description of the new process.  The process will work similarly to the electronic payment procedures that are currently in place.  However, there are two differences.  The major difference is that with electronic payments the transfers are being sent to the OSC.  The new process will create transfers to the agency to which the money is going.  Secondly, there will be no payment information created and sent to the bank for the automatic deposit as occurs with electronic payments to employees and vendors.

An OSC review of the vendor file for State agency vendors, that is, the vendors that are used by other state agencies to create payments to your agency, has revealed many duplicates and unnecessary vendors that need to be cleaned up.  The fewer vendors that each agency has, the more efficient the new process will be.  As part of the new process we must have each agency review, revise and provide additional information for the State vendor names/addresses that belong to their agency.  Keep in mind that the vendor information that you will be reviewing is the vendor information that all other State agencies on the NCAS will be using to transfer payments or money due to your agency.

Attached is an Excel Workbook containing a worksheet for each NCAS agency.  Select, review and update only the worksheet for your agency.  This worksheet excludes all inactive and purged vendors.  Please note that we have provided space for vendor name changes and remit to address changes.  We are no longer concerned with the order from address in NCAS since order from information is now maintained in the e-procurement system.  If there are duplicate vendors for your agency due to multiple order from addresses, they should be inactivated.  Also, on each vendor for your agency, you must provide the four-digit CMCS department code to which the money will be sent and an e-mail address to which the payment notifications will be sent.  The columns on the spreadsheet titled “CMCS Dept Code” and “Electronic Payment Notification E-mail Address” must be completed for each active vendor.  The department code is the code to which the automatic transfer will be “transferred to” in CMCS for your agency.  The fewer vendors that your agency has on NCAS, the less confusion other agencies will have when selecting the correct vendors for payment.  Also, transfers are generated by vendor, so the fewer the number of vendors an agency has, the fewer the number of transfers they will be receiving.  A good example is, after preliminary discussions with the Department of Correction (DOC), they will use only two vendors in the NCAS: the first one called DOC Operations and the other called Enterprise Operations.  All payments/transfers from your agency to DOC will go to one of two vendors, each having its own department division code.  A column for inactivation should be checked for those vendors that should no longer be used.  If you find vendors for your agency that are in the NCAS but are not on the spreadsheet or you need a location added, please add to the bottom of the spreadsheet and provide the necessary information.

We are requesting that the completed spreadsheet be returned to one of the e-mails listed below no later than 03/01/04.  These spreadsheets will be used by OSC to update the NCAS vendor information.  We hope to implement this initially with the agencies that have large internal service funds, such as Information Technology Services (ITS), Department of Administration (DOA) and Department of Correction (DOC), that receive payments from most state agencies.    However, every agency must be familiar with the process in order to make its payments to those agencies.  Soon after, all NCAS agencies will be set up to receive their payments using the new process.

For any assistance or questions that you may have on this procedure, you may call either Rick Pieringer – (919) 981-5428, rpiering@mail.osc.state.nc.us or Barbara Roper – (919) 981-5412 broper@mail.osc.state.nc.us .  As always, we thank you in advance for all of your help and cooperation in implementing this new process.

DFW/rbp

Click a link below to access the attachments:

Process Description

Excel Workbook