COMPTROLLER'S SEAL STATE OF CONNECTICUT
STATE OF CONNECTICUT
NANCY WYMAN
COMPTROLLER
OFFICE OF THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
MARK OJAKIAN
DEPUTY COMPTROLLER

MEMORANDUM NO. 95 - 32

MAY 17, 1995

TO THE HEADS OF ALL STATE AGENCIES

Attention: Chief Administrative and Fiscal Officers, and Business Managers
Subject: New Agency Reports
  1. PURPOSE AND APPROACH

    A Vendor Timely Payment Task Force, composed of representatives from several state agencies, is reviewing major causes of late vendor payments. This task force was formed to review and implement recommendations submitted by the Vendor Timely Payment Quality Team in a report issued July 1, 1994.

    One of the more common reasons that payments are delayed, is that the commitments (Purchase Orders, Personal Service Agreements, and Leases) are expired when the payments are processed on the Central Accounting System.

    The Vendor Timely Payment Task Force has designed two (2) new reports. Enclosed please find samples of the new reports:

    ACRE61 - Analysis of Contracts to Expire and
    ACRE63 - Listing of Expired Contracts.

  2. ANALYSIS OF CONTRACTS TO EXPIRE

    Report ACRE61 is designed to alert you of contracts that will expire within 60 days. If amendments need to be prepared or new contracts negotiated, this reminder will allow you to prepare necessary documents in a timely manner which should not interrupt payment schedules.

  3. LISTING OF EXPIRED CONTRACTS

    ACRE63 is a listing of expired contracts designed to bring to your attention the contracts that have expired as of the reporting date. The commitments listed, in both reports, have NOT been marked as fully liquidated or lapsed.

  4. ARCHIVE CRITERIA

    The Central Accounting System periodically deletes commitments from the system. This is done in the month following the end of the quarter. Commitments that are entirely lapsed are removed from the system without regard to liquidation date or contract date. Commitments that are fully liquidated remain on the system at least four (4) months after the last liquidation. For example, when this was done in April, only commitments fully liquidated before January 1 were deleted. The following criteria is used in addition to the liquidation date, to selectively delete commitments from the system.

    General Reservations (RR) are deleted if lapsed.

    Reservation Leases (RL) are deleted if lapsed.

    Purchase Orders (PO) are deleted if lapsed, fully liquidated, or the obligated, committed, and expended balances are equal.

    Personal Service Agreements (PS) are deleted if lapsed, or the contract ending date also meets the liquidation date criteria and is fully liquidated or the obligated, committed, and expended balances are equal. Open ended agreements, (ending date of all zeros), will not be deleted.

  5. DEFINITION OF LAPSED - COMMITMENTS VS FUNDS

    LAPSED COMMITMENTS:

    Lapsed commitment means that the accounts, which are referenced in the detail lines, no longer exist or are no longer active. For a General Reservation (RR) and Reservation Lease (RL), to be "lapsed", the agency notifies Central Accounts Payable that these commitments are no longer required. The "lapse" code is manually entered on these commitments and when the archive job is run, they are removed from the system. All other commitment types lapse automatically.

    LAPSED FUNDS:

    All commitments against budgeted appropriations, may lapse old year funds, but the unliquidated balances are brought forward and taken out of new year money. These commitments are not lapsed. A fund lapses when the purpose for which the fund was orignally established no longer exists and no additional funding will be made available.

  6. FULLY LIQUIDATING A COMMITMENT

    When a commitment is liquidated for the last time, the expending document should indicate that it will fully liquidate the commitment. Refer to the State Accounting Manual, Expenditure Index, Sec. 5.0. If this is not done and the three balances are not equal, the agency needs to prepare an additional document to decommit and/or deobligate the funds and mark the commitment as fully liquidated. Refer to the State Accounting Manual, Commitment Index, Sec. 4.0.

  7. BENEFITS

    The agency does not need to prepare documents for the commitments that will be deleted automatically by the system. The agency should, however, prepare documents for those commitments which will not be deleted, because it would allow reports, such as the ACRE58, Active Commitments Report, to accurately reflect existing contracts and obligations of each agency. It is particularly important that attention be given to those commitments with an obligated balance of all nines (9--------9.99).

  8. REPORTING FREQUENCY & DISTRIBUTION

    The ACRE61 will be generated and distributed with the existing month end commitment reports.

    The ACRE63 will be generated and distributed with the existing quarterly commitment reports. This should enable the business officers of the State to better track commitments and payments if the agency and Central Accounting Systems are kept in sync. The monthly reports will be more useful as well.

  9. ADDITIONAL COMMITMENT INFORMATION

    If additional information is required, there are two existing commitment reports which could be referenced. They are ACRE58 - Active Commitments Detail, distributed weekly, and ACRE59 - Commitment Analysis Summary, which is distributed monthly. Additionally, all agencies should also have on-line access to the Commitment Master File on the Central Accounting System.

  10. QUESTIONS

    We hope you will find all of this information useful. If you have any comments or questions on these reports, please write and send them to Office of the State Comptroller, Central Accounts Payable Division, Audit Section, 55 Elm Street, 6th Floor, Hartford, CT 06106. This way your comments and questions will be available to the task force for review.

NANCY WYMAN
STATE COMPTROLLER

STATE OF CONNECTICUT
OSC CENTRAL ACCOUNTING SYSTEM
ANALYSIS OF CONTRACTS TO EXPIRE
MONTH ENDING 3/31/95

AGENCY 1234 AGENCY NAME THIS IS THE AG. NAMEMAIL-CODE : 999

TYPE
COMMITMENT
- NUMBER -

AGENCY

FEIN / SSN
CONTRACT
ENDING DATE
OBLIGATED
BALANCE
UNLIQUIDATED
BALANCE
EXPENDED
BALANCE
PO - 0134567890 - 123406112233405/16/951,000.00593.54461.46
PO - 1122334455 - 123406445566705/31/951,725.00644.001,081.00
PS - 0000123404 - 123404412123405/16/95999,999,999,999.991.0016,950.03
PS - 0002451234 - 123404398765404/30/959,999,999,999,999.991,447.0019,236.05
PS - 0098765432 - 123400112123404/19/959,000.001,521.004,620.00
PS - 0123987456 - 123499121234504/19/959,999,999,999,999.991.0016,796.37
PS - 0456789091 - 123488123456705/17/959,999,999,999,999.99258.504,328.50
PS - 0998877665 - 123404567890105/17/959,999,999,999,999.991.005,250.00
PS - 0999881233 - 123406102901205/30/959,000.001,968.803,431.20
PS - 1000123454 - 123406902100005/31/959,999,999,999,999.991.006,907.80
PS - 1001234567 - 123404103570805/31/959,999,999,999,999.991.0011,050.00
PS - 1012345678 - 123406040990204/25/959,999,999,999,999.99921.702,247.30
PS - 1123456789 - 123404876543204/17/95125.00.00125.00
PS - 1234567890 - 123466123456705/14/952,880.002,880.00.00

STATE OF CONNECTICUT
OSC CENTRAL ACCOUNTING SYSTEM
LISTING OF EXPIRED CONTRACTS
MONTH ENDING 3/31/95

AGENCY 1234 AGENCY NAME THIS IS THE AG. NAMEMAIL-CODE : 999

TYPE
COMMITMENT
- NUMBER -

AGENCY

FEIN / SSN
CONTRACT
ENDING DATE
OBLIGATED
BALANCE
UNLIQUIDATED
BALANCE
EXPENDED
BALANCE
PO - 0000123456 - 123406112345604/16/919,999,999,016,615.99.0016,115.28
PO - 0000123457 - 123400000000006/30/89415..0090.00325.00
PO - 0000123458 - 123434567890110/01/921,500.00.001,000.00
PO - 0001234567 - 123490123456711/30/939,999,999,003,663.02.003,663.02
PO - 0002345678 - 123406102345612/31/92915.05686.28228.76
PO - 0003456789 - 123404123456709/30/902,850.00.002,850.00
PO - 0004567890 - 123405678901210/31/91980.00.00515.00
PO - 0005678901 - 123406789012109/30/911,159.69.011,159.68
PO - 0006789012 - 123407890123408/31/92.60.00.00
PO - 0007890123 - 123408901234512/08/939,797.77.002,202.23
PO - 0008901234 - 123409012345611/12/942,214.00.001,662.00
PS - 0000000001 - 123411234567806/30/943,348.00.001,926.36
PS - 1100000046 - 123412345678911/30/946,000.00286.343,981.26
PS - 1100000047 - 123423456789012/08/943,000.00209.082,790.92
PS - 1110000048 - 123434567890112/20/942,000.00.00944.24
PS - 1111000049 - 123445678901212/31/9412,600.003,374.287,703.44
PS - 1111100050 - 123456789012312/31/945,000.00100.003,785.10
PS - 1111111111 - 123467890123402/19/951,030.00.00718.52
RL - 0000000061 - 123478901234502/25/953,762.801,292.802,469.97
RL - 0000000062 - 123489012345612/31/942,400.00252.751,954.25
RL - 0000012345 - 123490123456702/28/952,500.00135.001,123.00
RL - 1122334567 - 123401234567802/28/952,500.00750.00.00

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