Kevin Lembo
State Comptroller
Martha Carlson
Deputy Comptroller


December 20, 2012


Attention:   Commissioners, Chief Fiscal Officers and Business Managers
Subject:   Quarterly Journal Reconciliation of Cash Held In Agency Bank Accounts and Clarification of Timely Deposits to All State Accounts.

I. Background Regarding Cash Held Reporting

Due to the nature of their business operations, certain state agencies have been permitted to maintain their own bank accounts with check writing authority. Such agencies process their payments outside of the Core-CT central accounting system. These agency-based checking accounts are funded through a drawdown in Core-CT from the appropriation line item (SID) that funds the activity supported by the checking account. The drawdown from the associated SID is recorded as an expenditure transaction and, therefore, must be adjusted to reduce the expenditure for any remaining cash on hand-the unexpended balance.

Example: An agency has an appropriation and allotment of $1,000 for FY 2013 to a specific SID; the agency then processes a voucher in Core-CT to drawdown $250 per quarter (ending September 30th, December 31st, March 31st and June 30th) for deposit into their checking account. At this point, the drawdown amount is recorded as expended from that SID in the Core-CT ledgers. If only $200 is actually expended during a quarter (issued in checks from the agency bank account), then expenditures in the Core-CT ledgers must be reduced by $50 to reflect the cash held or unexpended balance at the end of the quarter.

In the past, the cash held expenditure adjustments were made through the submission of an annual report. This method of recording the expenditure was not timely and it delayed year-end processing. Therefore, a new procedure requiring agencies to post quarterly journal adjustments is being implemented as described below.

The cash held Core-CT posting process outlined in this memorandum does not apply to petty cash accounts or trustee accounts.

II. Quarterly Cash Held Entries

Effective January 18, 2013, agencies are required to upload quarterly cash held journals in Core-CT to adjust expenditures as outlined above. The journal header should indicate that it is a cash held entry and should also indicate the quarter being adjusted. The quarterly journal upload will replace the current annual reporting requirement. The journal should adjust the accounting distribution lines from which the drawdown to the checking account was made. The cash account to be used on the journal is 10801- cash held by state agencies.

Quarterly journals will facilitate budget analysis. The journals should be submitted for posting no later than the last business day of the 3rd week following the close of the quarter (e.g. for the quarter ending December 31, 2012, the report is due to by January 18, 2013).

III. Questions

Agencies will receive quarterly notification of this requirement. Any questions regarding this process should be directed to Julie Wilson, Manager of Central Accounting Operations at 860-702-3377  or Joann Lacaria, Associate Accountant at 860-702-3379

IV. Clarification of Deposit Posting Referenced in Comptroller's Memorandum 2011-5

Memorandum 2011-5 states as follows: "According to CGS 4-32, deposits must generally be made within 24 hours of receipt. As soon as the agency deposit is received in the Core-CT system, the agency is responsible for confirmation of the bank data. The deposit usually appears in the agency's deposit pick list the next day following the accounting date of the deposit. Contact the Treasurer's Office if you have specific banking issues relating to a deposit, such as: the deposit does not belong to your agency, you are missing a deposit, or the deposit is for an incorrect amount."

The memorandum goes on to state that all deposits must be posted in Core-CT to the proper accounting distribution no later than four business days from the accounting date of deposit. The four day extension was intended solely for problematic deposit with banking issues that must be resolved. Deposits that do not raise banking issues should be made the same day that the deposit appears on the pick list.

The four day resolution period for problematic deposits in no way relieves agencies of the one day deposit requirement of CGS, Section 4-32 or the pick list posting date requirement for Core-CT coding.



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