1.1. General Information...1.1. General Information Process Area TRM – Treasury Management Process Workflows 10.1 TRM – Cash Position 10.2 TRM – Agency Federal Bank Account 10.3

Department of Financial Services

Page 1 of 27 Treasury Management 06/03/2015

1.1. General Information Process Area TRM – Treasury Management

Process

Workflows

10.1 TRM – Cash Position 10.2 TRM – Agency Federal Bank Account 10.3 TRM – Investments 10.4 TRM – Reconciliations (Daily & Monthly) 10.5 TRM – Outside Banking Services 10.6 TRM – Establish Revolving Funds 10.7 TRM – Operate Revolving Funds 10.8 TRM – RF Closing / Balance Change 10.9 TRM – CMIA

As of 06/03/2015

1.2. Authors and Contributors Authors Deana Metcalf, State BPS Team

Gary Schneider, EY BPS Team Jordan Landreth, EY BPS Team

Contributors Agency Subject Matter Experts

1.3. Scope

This document depicts the high-level proposed business process design for the Treasury

Management (TRM) Process Area. The TRM Process Area is directly related to the Cash Inflow to

Outflow (CSH) Process Area. The related flow diagrams for each provide references to show the

connections. Both process areas need to be taken as a whole for the complete picture of cash in

both the Cash and Treasury processes for the State.

The TRM Process Area is represented by the following nine process workflows:

1. Cash Position 2. Agency Federal Bank Account 3. Investments 4. Reconciliations (Daily & Monthly) 5. Outside Banking Services 6. Establish Revolving Funds 7. Operate Revolving Funds 8. Revolving Fund Closing/Balance Changes 9. CMIA



1.4. Assumptions A Treasury ledger will be maintained separate from the Cash ledger to provide the ability for

the Treasury to meet its statutory reporting requirements The Cash and Treasury ledgers will be updated with the appropriate accounting entries based

on transactions performed Controls will ensure the Treasury and Cash ledgers are balanced There will be an interface with the Treasury’s bank accounts Agencies will schedule payments to assist with cash balance forecasting Bank to ledger balances will be reconciled on a daily basis Investment portfolio management (trading) is generally not standard to ERP software and was

not recommended for inclusion in the FLAIR Study The specific types of investments and related transactions (e.g., accruals, gains & losses,

amortizations, etc.) will be recorded for management and financial reporting purposes The Treasury ledger will capture SPIA participants and balance information The following Treasury systems will not be replaced as part of Florida PALM so interfaces may

need to be developed: o Investments (Trading) o Special Purpose Investment Account(SPIA) o Cash Management System (CMS) Archive o Certificate of Deposit (CD) o Collateral Administration Program (CAP)

Revolving fund payments will be outside of the accounting system but event details will be recorded in the accounting system. The Treasury ledger will capture CRA participant and balance information

The system needs to allow flexibility for future changes such as different payment types, different types of investments and related data elements and different data exchange methods

1.5. Standardized Process Area Overview The Chief Financial Officer has statutory authority to fully deposit and invest state funds in order

that the State realize maximum earnings and benefits. The Treasury manages those deposits and

investments for all state agencies and other entities created by Florida State Constitution or Law.

Funds received by the agencies are initially deposited into a single Treasury-managed

concentration account. The funds may be moved either to the Custodial Bank account for

investment in various portfolios or to the Disbursement accounts to cover payments issued by the

State that are being presented or withdrawn.

Treasury staff monitors the cash position in all of its accounts daily. A cash positioning worksheet

is used to plan for and determine immediate funding requirements involving amounts needed to

cover payments and residual funds available for investment. Funds needed to cover payments are

moved first from the Concentration account and then from the Custodial Bank account if funds are

still needed. Any excess funds are transferred to the Custodial Bank account and invested.



The Custodial Bank account is invested into four types of portfolios: Liquidity, Short-Term, Intermediate-Term, and Long-Term investments. The Liquidity and Short-Term investment portfolios are managed by Treasury staff. The Intermediate and Long-Term investment portfolios are managed by External Managers. Investment earnings and fees are allocated to participants based on the average daily invested balances.

Daily, on-demand, and monthly reconciliations are performed on all bank accounts managed by the Treasury. Any exceptions are adjusted by either the bank, the Treasury or the appropriate agency until the accounts are reconciled.

Agencies must request approval of all outside banking services from the Treasury. Revolving fund requests must also be approved by the Division of Accounting and Auditing. Once the revolving fund has been established, the agency will issue checks directly to payees. Transactions involving the revolving fund are recorded when the financial events occur. The frequency and level of detail at which transactions are recorded will be established by policy. Revolving funds are replenished by payments issued to the fund through the P2P Process Area. Agencies must reconcile revolving funds monthly. The Treasury also reconciles the CRA account and invests excess balances through the SPIA account.

Treasury is also responsible for the Cash Management Improvement Act (CMIA) process. The expenditures and draws are tracked by Florida PALM for the applicable grants throughout the year. Clearance patterns are calculated and a report is generated annually for submittal to the U.S. Treasury.

1.6. Process Area Details

The table below describes each step in the process envisioned to use Florida PALM functionality to perform Treasury Managements functions. The Process Step ID refers to the step as depicted in the respective BPS Business Process Workflow diagram.

The workflow diagrams use horizontal swim lanes to depict where activities are likely to be performed by different entities. Each swim lane is titled with a role that is either agency- based or enterprise-based and in some cases representative of an external party (e.g. a bank, other commercial entity or federal or local governmental organization). The swim lane roles may be different at an agency.

The swim lanes may change from page to page within a single process area as more or fewer roles are required to execute sections of the overall process. In the table below, a list of roles involved in each section has been inserted where the process steps transition from page to page and a change occurs.

Workflow Page 1 of 9: TRM – Cash Position

Swim lanes – Definition

Treasury – DFS Division of Treasury

Concentration Bank – contracted bank where State funds are deposited

Disbursement Account – Payment processing bank account

Custodial Bank Account- Bank account where investments are managed



SPIA – Special Purpose Investment Account

Process

Step ID

Process Name Description of Process Governing Laws

and Policies

TRM 1.1 SPIA Participants Deposit to the SPIA Account

Agencies or local governments make deposits

to the SPIA account

TBD

TRM IP 1.2

Transmit Transaction File from SPIA Application

Transactions in the SPIA application are

transmitted multiple times per day to Florida

PALM

TBD

TRM AE 1.3

Record SPIA Balances

Accounting entries for SPIA account activity

are recorded in Florida PALM

TBD

TRM 1.4 Funds Deposited into the SPIA Account Included in Overall Custodial Bank Account

Funds deposited into the SPIA account are

included in the overall Custodial bank account

for investment purposes

TBD

TRM 1.5 Liquidity Account Feeds the DDA Account with Available Funds

Available funds from the Liquidity account feed

the Demand Deposit (DDA) account

TBD

TRM IP 1.6

Transmit Transaction File for DDA Custodial Bank Account

Transactions for the Custodial bank account

are transmitted multiple times per day to

Florida PALM

TBD

TRM IP 1.7

Transmit Transaction File for the Main (Disbursement) Account

Transactions from the Main disbursement

account are transmitted to Florida PALM

multiple times per day

TBD

TRM IP 1.8

Transmit Transaction File for Concentration Account

Transactions for the Concentration account are

transmitted to Florida PALM multiple times

per day

TBD

TRM 1.9 Determine Cash Position by Account

Treasury staff monitors the balances in the Concentration account, Disbursement account, Custodial account, and the SPIA account multiple times each day

TBD



Process

Step ID


and Policies

A cash position is generated by Florida PALM from the bank balance information on demand

Treasury staff reviews requests for cash based on scheduled payments from P2P, daily receipt data, payroll payments, requested wire payments to determine the funds needed to cover payments and any excess funds that can be invested (intermittently throughout the day)

Treasury staff also uses scheduled payments

from P2P for longer-term planning for future

cash needs

TRM AE 1.10

Move all Available Funds from Concentration Account to Disbursement Accounts to Cover Needed Payments

Treasury staff first move cash from the Concentration account to the Disbursement accounts to cover payments clearing or being withdrawn

The movement is recorded in the Treasury Ledger

Treasury then determines whether any funds are still needed to cover payments and if there is any balance remaining in the Concentration Account

Chapter 17.57, F.S.

Chapter 17.61, F.S.

Chapter 69C-3, F.A.C.

TRM AE 1.11

Move Cash from Custodial Bank Account to Disbursement Account

If funds are still needed in the disbursement account, Treasury transfers funds from the Custodial account to the Disbursement account


Chapter 17.57, F.S.

Chapter 17.61, F.S.


TRM AE 1.12

Move Cash to Custodial Bank Account

Funds remaining in the Concentration account that are not needed for payments are transferred to the Custodial account for investment


TBD

TRM 1.13 SPIA Participants Request Funds from the SPIA Account

SPIA participants request funds from the SPIA account as needed

This information is used in cash positioning (TRM 1.9)

TBD

TRM AE 1.14

Wire Funds from Custodial Bank Account to Participant

Treasury staff wire funds from the custodial bank account to the SPIA participant as funds are requested

The movement is recorded in the Treasury

TBD



Process

Step ID


and Policies

Ledger

TRM 1.15 Funds Received by the SPIA Participant

Funds are received in the individual SPIA participant bank account

TBD

Workflow Page 2 of 9: TRM – Agency Federal Bank Account



Agency – agency utilizing federal bank account

Federally Mandated Disbursement Account – State bank account mandated by federal government

IRS – Internal Revenue Service

Federal Bank Account - bank account used by the federal government for reemployment assistance

Process

Step ID


and Policies

TRM 2.1 Instruct Treasury to Leave Specific Balances in the Concentration Account and the Amount to Move to Other Accounts

Program collections are deposited in the Concentration account in the CSH Process Area

The agency reviews their cash needs and determines how much cash to leave in the Concentration account and how much cash needs to be transferred to other accounts and notifies Treasury

TBD

TRM AE 2.2

Wire Funds to Federal Bank Account

Treasury wires funds to Federal Bank account TBD

TRM 2.3 Receive Wire Transfer

The Federal Bank receives the wire transfer TBD

TRM IP 2.4

Transmit Debit Card, EFT & UC WH Data

Cash program needs for payments are determined in the Agency and handled through the GAC and ARB process areas and are deposited to the appropriate account in the CSH Process Area (CSH 1.3)

The agency transmits debit card, EFT & UC withholding data to Florida PALM

The agency transmits debit card data to their contracted vendor

TBD

TRM AE Voucher The vendor payment information for the debit TBD



Process

Step ID


and Policies

2.5 Prepared for P2P Debit Cards

cards is posted in the P2P Direct Load process which generates a wire for the vendor

TRM 2.6 Bank Wire Funds to Contract Vendor

Funds from the Federally Mandated Disbursement account are wired to the contract vendor

TBD

TRM AE 2.7

Florida PALM records UC WH Tax and EFT Payments

Florida PALM records the Unemployment Compensation Withholding Tax and EFT Payment expenditures at a summary level based on information transmitted in TRM IP 2.4

TBD

TRM AE 2.8

Agency Records Detailed Accounting Information

The agency has the ability to further record/distribute the summary information recorded in TRM AE 2.7 to a more detailed level if needed

TBD

TRM IP 2.9

Transmit EFT Payment Data

The agency transmits the individual recipient payment data to the Federally Mandated Disbursement account bank

TBD

TRM 2.10 Bank Makes Individual EFT Payments

The bank makes the individual EFT payments to the beneficiaries

TBD

TRM 2.11 EFT Returns The bank notifies the agency of any EFT Returns

The agency will handle the returns through the ARB process area

TBD

TRM 2.12 Enter UC WH Tax Data in the EFTPS

DEO vouchers other payments that generate Unemployment Compensation Withholding (UC WH) amounts for the IRS in the P2P Process Area (e.g., RA benefit payments, FEMA, CSE)

The agency enters the UC WH tax data from the Project Connect system and from the vouchers into the Electronic Federal Tax Payment System (EFTPS)

TBD

TRM 2.13 Sweep Funds Due from Federally Mandated Disbursement Account

The IRS sweeps funds due from the Federally Mandated Disbursement account based on amounts entered in the EFTPS

TBD

TRM IP 2.14

Federally Mandated Disbursement Account Transactions/Ba

Transactions and balance information for the Federally Mandated Disbursements account is transmitted to Florida PALM

TBD



Process

Step ID


and Policies

lance

TRM IP 2.15

Federal Bank Account Transactions/Balance

Transactions and balance information for the Federal Bank account is transmitted to Florida PALM

TBD

TRM CP 2.16

Monitor and Identify any new Transactions

The agency monitors account transactions on a daily basis to identify any new transactions (i.e., combined wage claims, FUTA credits)

TBD

TRM AE 2.17

Agency Records Accounting Entries to Reflect New Transaction Activity

The agency records an accounting entry for any new transactions posted to the Federally Mandated Disbursement Account or Federal Bank Account

TBD

TRM CP 2.18

Reconcile Accounts Monthly

At the end of the month, the agency reconciles both bank accounts to transactions recorded in Florida PALM

TBD

TRM AE 2.19

Agency Records Accounting Entry to show Cash in Bank Movement

Agency makes an accounting entry monthly to record the cash changes to the bank accounts during the month

TBD

TRM CP 2.20

Reconciles Federally Mandated Disbursement Account Daily

Treasury reconciles the Federally Mandated Disbursement account on a daily basis

TBD

TRM CP 2.21

Reconciles Federal Bank Account Monthly

Treasury reconciles the Federal Bank account on a monthly basis

TBD

Workflow Page 3 of 9: TRM – Investments



Custodial Bank - bank account where investments are managed

External Trading Partners – external investment managers

Process

Step ID


and Policies

TRM 3.1 Investment Group

The Treasury Investment Group determines the split between the amount to be invested by

TBD



Process

Step ID


and Policies

Determines Investment Allocation and Notifies External Manager of their Apportionment

Treasury staff and the amount to be invested by external managers

External managers manage intermediate term and long term portfolios

Internal managers manage the liquidity and short-duration portfolios

TRM AE 3.2

Record Portfolio Allocation

Treasury records trade information based on the type of portfolios

TBD

TRM 3.3 Purchase/Sell Investment Instruments

On a daily basis, Treasury invests any new cash transferred to the Custodial bank account (TRM 1.12) as well performs routine trading to maximize investment earnings

TBD

TRM 3.4 Trade Information is Sent and Confirmation Returned

Trade information is sent to External Traders (via external systems, email, phone)

Treasury receives confirmation of trades from external trading partners

TBD

TRM AE 3.5

Record Trade Information

Each trade ticket is recorded as trades are made and confirmed

TBD

TRM IP 3.6

Transmit Internal Trades File

Florida PALM transmits a file of internal trades to the Custodial Bank real-time as trades are made

TBD

TRM 3.7 Record Internal Trade Information

The bank records the internal trades in their system

TBD

TRM 3.8 External Managers Execute Trades

External Managers execute trades and send those trades to the Custodial Bank

TBD

TRM 3.9 External Managers’ Trade Information Captured

The bank records external trades in their system

TBD

TRM IP 3.10

Transmit Internal and External Trade Transactions File

The Custodial bank transmits internal and external trade transactions to Florida PALM in real or near real time

TBD

TRM CP 3.11

Reconcile Investment in Florida PALM with the Custodial Bank

Treasury receives a transaction file (TRM IP 3.10) of internal and external trades which are loaded into Florida PALM

The internal transactions are reconciled with trade information recorded by Treasury

The external trades are captured for recording

TBD

TRM AE Record External Florida PALM automatically posts external TBD



Process

Step ID


and Policies

3.12 Trade Information

trade information Information is captured at the level required

for the CAFR External managers provide Treasury with a

monthly attestation by affirming accuracy of trade information, i.e. certification

TRM 3.13 System Calculates Interest and Fees Based on External and Internal Trades

Florida PALM calculates interest and fees based on internal and external trades

TBD

TRM AE 3.14

Earned Interest Calculations

Interest and fees are recorded daily Transactions are recorded for both interest

and fees as both accrual and cash

TBD

TRM 3.15 System Apportions Investment Earnings and Fees Based on ADB

Florida PALM uses the average daily balances from investments by the agencies (CSH AE 2.5) and from SPIA participants to determine apportionments on a monthly basis

The agency apportionments are recorded in the CSH Process area (CSH AE 2.7)

Investment earnings include interest, realized gains or losses, amortizations, etc.

TBD

TRM AE 3.16

Post SPIA Apportionment

The SPIA interest is apportioned in the Treasury Ledger

TRM AE 7.19 further apportions the CRA earnings

TBD

TRM IP 3.17

Transmit File to SPIA application

A file is generated and sent to the SPIA application to record the SPIA apportionments for participants

TBD

Workflow Page 4 of 9: TRM – Reconciliations



Bank – All State bank accounts (e.g. Concentration Bank, Custodial Bank, Disbursement Bank etc.)

Process

Step ID


and Policies

TRM 4.1 Data Received from Banks Daily and On-

Data is received by Florida PALM for all of the bank accounts and is loaded in Florida PALM and used for reconciliations

TBD



Process

Step ID


and Policies

Demand These data transmissions are identified on the CSH and TRM flows where originally received but have been grouped on this flow to show that they are used in the reconciliation process

TRM IP 4.2

Transmit Custodial Account Investment Data

Data from all of the Custodial bank accounts are transmitted daily and monthly (BAI)

TBD

TRM IP 4.3

SPIA BAI Data Data from SPIA bank account is transmitted daily and monthly

TBD

TRM 4.4 Reconciliation Process

All bank data is used in daily and monthly reconciliation processes

There are transaction reconciliation processes that are flowed in various places on the CSH and TRM process flows. These have been grouped on this flow to show that they are part of the overall reconciliation process

The Treasury Ledger is reconciled to all Bank accounts and to the Cash Ledger daily and a final reconciliation completed monthly

Treasury personnel will use the bank information and ledger balance information recorded in Florida PALM from the other processes to perform the Treasury Ledger to Bank Account and Treasury Ledger to General Ledger reconciliations

Exceptions are identified and, depending on the type of exception, established processes are used to reconcile

TBD

Workflow Page 5 of 9: TRM – Outside Banking Services



Agency – agency requesting outside banking services

Process

Step ID


and Policies

TRM 5.1 Agency Requests

The agency that needs outside banking services makes a request to Treasury for

Section 17.29, F.S.



Process

Step ID


and Policies

Outside Banking Services

approval If it is for a revolving fund, it would be handled

through the Establish Revolving Fund Process flow (TRM 6.1)

Section 17.57, F.S.


TRM 5.2 Treasury Reviews and Evaluates Request

Treasury reviews and evaluates the request

Section 17.29, F.S.

Section 17.57, F.S.


TRM 5.3 Notifies Agency If the request is denied, Treasury notifies the agency and the process ends

TBD

TRM CP 5.4

Set-up Bank Account in Florida PALM

If the request is approved and if it is a request for an outside bank account, Treasury sets up the account in Florida PALM

The agency will not be able to transact with the account until it is established in Florida PALM

TBD

TRM 5.5 Issue Approval Letter to Agency

Treasury issues a letter to the agency documenting approval of the outside banking services

TBD

TRM 5.6 Begin Using Banking Services

The agency can begin using the banking services

TBD

Workflow Page 6 of 9: TRM – Establish Revolving Funds



Agency – agency requesting outside banking services

Process

Step ID


and Policies

TRM 6.1 Revolving Fund Request

An agency requests outside banking services through the Treasury. If these services are for a revolving fund, A&A approval is required to establish the account.

TBD

TRM CP 6.2

Review Revolving Fund Request

A&A reviews the request The fund must be established in R2R If the request is approved the request moves

to Treasury

TBD



Process

Step ID


and Policies

TRM CP 6.3

Determine CRA vs. Non-CRA Bank

Approved requests are routed to Treasury where Treasury determines whether a CRA Bank is available and meets agency needs; if not the agency is permitted to use a non CRA Bank (i.e. a qualified public depository)

Section 17.58, F.S. Section 216.271, F.S. Chapter 69I-23, F.A.C.

TRM 6.4 Establish CRA Participant Profile/Bank Account

Treasury requests the CRA Bank to establish a sub account

Treasury configures the CRA account in Florida PALM

The agency can then generate a voucher to fund the initial deposit (P2P)

TBD

TRM 6.5 Revolving Fund Account Established

The CRA Bank sets up the CRA account on behalf of the State

Setup of the account includes establishment of control points such as authorized signatures, transactions limits and the need for dual signatures

TBD

TRM CP 6.6

Treasury Approves Non-CRA Bank Account

If a Non-CRA account is requested, Treasury reviews to ensure account will be with a QPD and any associated contracts, documentation are acceptable

TBD

TRM 6.7 Set-Up Bank Account in Florida PALM

If Treasury approves, they set-up the non-CRA Bank account in Florida PALM

TBD

TRM 6.8 Establish Non-CRA Bank Account

The agency establishes the non-CRA account at the bank

The account must require dual-signatures as a control

Section 17.58, F.S. Section 216.271, F.S. Chapter 69I-23, F.A.C.

TRM AE 6.9

Initial Establishment

The agency submits an invoice in P2P to fund the initial deposit and record the account

Once the invoice is processed, a payment is issued in P2P for the initial deposit

TBD

TRM 6.10 Funds Deposited into Bank Account

The funds are deposited into the bank account and are available to the agency for expenditures (TRM 7.1)

TBD

Workflow Page 7 of 9: TRM – Operate Revolving Funds



Agency Reconciler – individual performing reconciliation of the revolving fund

Agency Revolving Fund Manager – individual managing the revolving fund



CRA Bank- contracted bank where State funds are deposited

Process

Step ID


and Policies

TRM 7.1 Revolving Fund Expenditures

Once funds are deposited, they are available for expenditures

Payments are issued directly from the revolving fund to the payees

TBD

TRM 7.2 Recording Revolving Fund Activity in the Account Register

The agency records entries as needed to reflect revolving fund activities

This information could be uploaded from agency business system

Section 216.271, F.S. Chapter 69I-23, F.A.C.

TRM 7.3 Replenishment Amount Calculated

The replenishment amount is calculated and the agency creates an invoice(s) in the P2P Process Area to obtain funds to restore the account balance

The requested amount should include any bank fees and/or interest earnings to accurately capture all transactions in the accounting system

Section 216.271, F.S. Chapter 69I-23, F.A.C.

TRM AE 7.4

Record Revolving Fund Replenishment

Revolving fund replenishment transactions are recorded in Florida PALM

This generates a payment from P2P

Section 216.271, F.S. Chapter 69I-23, F.A.C

TRM 7.5 Funds Deposited into Bank Account

The payment is deposited at the revolving fund bank

TBD

TRM IP 7.6

Transmit Daily File

The CRA Bank generates and transmits a Daily file of account activity to Florida PALM

Transactions are by subaccount

TBD

TRM IP 7.7

Non-CRA Bank Activity File

If available, an electronic file from the non-CRA Bank containing account activity is loaded into Florida PALM on behalf of the agency

TBD

TRM 7.8 Non-CRA Bank Statement

A paper account statement may be generated by the non-CRA Bank for use by the agencies to reconcile non-CRA accounts

Statements should be scanned into Florida PALM

TBD

TRM CP 7.9

Agency Reconciliation Process

The Agency Reconciler performs a reconciliation process to ensure account activity recorded by the banks are consistent with agency transactions

CRA bank activity can be viewed in Florida

TBD



Process

Step ID


and Policies

PALM on-demand to reconcile CRA accounts

TRM CP 7.10

Monthly Treasury Reconciliation of CRA

Treasury reconciles the overall CRA monthly CRA bank activity can be viewed in Florida

PALM on-demand to reconcile CRA accounts

TBD

TRM 7.11 Contact Non-CRA Bank to Resolve

If the agency finds an exception involving a non-CRA bank, the agency contacts the bank to resolve the issue

TBD

TRM 7.12 Contact CRA Bank

If there are issues with the CRA bank’s statement, Treasury contacts the bank to resolve whether the agency or Treasury finds the exception

Treasury communicates resolution to the agency, if applicable

TBD

TRM AE 7.13

Transaction Correction Entry

If the Treasury finds an internal issue during their reconciliation process, they may need to book an accounting entry to correct

TBD

TRM AE 7.14

Post Transactions from CRA File into Florida PALM

CRA transactions from the CRA bank interface file are posted to Florida PALM

TBD

TRM CP 7.15

Monitor Cash Position and Determine Amounts Available for Investment/ Disinvestment

Treasury monitors the cash position of the CRA and determines the funds available for investment or that need to be disinvested

TBD

TRM 7.16 CRA Funds Invested or Disinvested in SPIA

Based on cash position, Treasury either invests or disinvests which is recorded in the SPIA application

TBD

TRM 7.17 Wire Funds to/from SPIA/CRA

Treasury wires funds between the CRA account and the SPIA account based on investment/ disinvestment determination

Transactions are recorded in the CRA Daily file (TRM IP 7.6) on an on-going basis

TBD

TRM AE 7.18

CRA Investment/ Disinvestment Transactions are Posted to

CRA transactions are automatically posted to Florida PALM

TBD



Process

Step ID


and Policies

Florida PALM

TRM AE 7.19

System Apportions Interest and Fees Monthly Based on ADB CRA Total (by Account/ Fund)

Interest and fees are calculated based on average daily invested fund balances and posted to the SPIA account (TRM AE 3.16)

The SPIA account further allocates to the CRA participant account

TBD

TRM AE 7.20

System Apportions Interest and Fees to Agency Participants

Interest and fees are further apportioned to agency participants at the lowest level of detail

TBD

TRM IP 7.21

Transmit CRA Investment Transactions/Balances to Agency Business Systems

Florida PALM generates and transmits an interface file of CRA transactions and balances to agency business systems (as needed)

TBD

Workflow Page 8 of 9: TRM – RF Closing and Balance Change


A&A - DFS Division of Accounting and Auditing


Agency Revolving Fund Manager – individual who manages the revolving fund

Process

Step ID


and Policies

TRM 8.1 Need to Change Account Balance or Close

The agency determines a need to change the revolving fund account balance or close the account

TBD

TRM 8.2 Write Check from Revolving Fund

If the account is being decreased or closed a check is written from the Revolving Fund and a Deposit created ( CSH CP 1.1)

If the account is being closed, the agency should ensure all transactions have cleared and perform a final reconciliation prior to closing the account

TBD

TRM 8.3 Request to Increase/ Decrease or Notification to

The agency requests approval to increase, decrease or close the account from A&A

A copy of the voucher and related deposit must be included for account decreases or

Section 17.14, F.S.

Section 17.29, F.S.



Process

Step ID


and Policies

Close Account closings. Section 216.271, F.S.

Chapter 69I-23, F.A.C.

TRM CP 8.4

Review Revolving Fund Request

A&A reviews the agency request

Section 17.14, F.S.

Section 17.29, F.S.

Section 216.271, F.S.


TRM 8.5 Notify Agency A&A notifies the agency if the request is not approved and the process ends

Section 17.14, F.S.

Section 17.29, F.S.



TRM 8.6 Send Approval Letter to Agency

If the increase / decrease is approved by A&A and if the request is for a decrease or close action, A&A notifies the agency and the process ends

Section 17.14, F.S.

Section 17.29, F.S.



TRM 8.7 Send Approval Letter to Agency

If the request is approved by A&A and it is for an account increase, A&A sends an approval letter to the agency

Section 17.14, F.S.

Section 17.29, F.S.



TRM 8.8 Send Copy of Approval Letter to Treasury

In either case of approval, (TRM 8.6 and TRM 8.7) A&A sends a copy of the approval letter to Treasury

TBD

TRM AE 8.9

Record Increased Balance

If the account is being increased, the agency creates an invoice in P2P and records the increased balance in Florida PALM

TBD

TRM 8.10 Funds Deposited A payment is generated in P2P and funds are TBD



Process

Step ID


and Policies

into Bank Account

deposited into the revolving account The agency can begin expending the funds

(TRM 7.1)

TRM 8.11 Close account in Florida PALM

If the account is being closed and it is a CRA account, Treasury closes the CRA subaccount in Florida PALM and at the CRA bank

If the account being closed is a non-CRA , Treasury closes the account in Florida PALM

TBD

Workflow Page 9 of 9: TRM – CMIA



A&A – DFS Division of Accounting and Auditing

Agency – agency with grants subject to CMIA

Process

Step ID


and Policies

TRM IP 9.1

AG File of Audited SEFA

Treasury receives the AG file of the audited Schedule of Expenditures of Federal Awards (SEFA)

TBD

TRM 9.2 Calculate Top 90% of Grant Programs Based on Expenditures on Audited SEFA

The AG file is used to identify the grants that make up top 90% of grant expenditures

Grants meeting the selection criteria are identified in the grants setup and maintenance (GAC )

Federal Cash Management Improvement Act

TRM 9.3 Grant Expenditures Occurring in P2P

Agency makes grant expenditures in P2P These transactions are recorded with the

associated grant ID which identifies as a CMIA applicable grant

TBD

TRM 9.4 Federal Draw Occurs in ARB Based on Anticipated or Actual Grant Expenditure Payments

The agency makes their federal draw in ARB The draw is based on anticipated or actual

expenditure payments depending on the reimbursement terms of the grant

The draw should not be made more than three days before the payment date

TBD

TRM 9.5 Clearance Pattern Calculated by Grant

Florida PALM calculates the clearance pattern for each grant. The clearance pattern is the difference between the cash received date and the payment clear date




Process

Step ID


and Policies

Treasury uses a 3-month average calculated annually

TRM 9.6 Annual CMIA Report Generated by CFDA and Component

Florida PALM generates a report in accordance with the CMIA by CFDA and Component (i.e. direct, admin, salary)


TRM CP 9.7

Agency Reviews Report for their Grants

The agency receives the report from Treasury and reviews their grants for accuracy and provides concurrence


TRM 9.8 Final Report Entered and Original Signed and Mailed

Treasury generates the final report and enters the amounts in the U.S. Treasury system

The original report is signed and mailed to the U.S. Treasury


TRM 9.9 Voucher Created for CMIA Payment

If, based on the submitted report the State owes the federal government interest under CMIA, a CMIA payment is generated in P2P by A&A

TBD

TRM 9.10 Claim Submitted through ARB

If, based on the submitted report the federal government owes the State interest under CMIA, a grant draw is made in ARB by A&A

TBD

1.7. Integration Integration

ID

FFMIS or Key

System

Integration Description

TRM IP 1.2 SPIA Application to Florida PALM

Transmit Transaction File from SPIA Application

TRM IP 1.6 Custodial Bank to Florida PALM

Transmit Transaction File for DDA Custodial Bank Account

TRM IP 1.7 Disbursement Account Bank to Florida PALM

Transmit Transaction File for Main Disbursement Account

TRM IP 1.8 Concentration Account Bank to Florida PALM

Transmit Transaction File from Concentration Account

TRM IP 2.4 DEO Agency Business System (Project Connect) to Florida PALM

Transmit Debit Card, EFT & UC WH Data



Integration

ID

FFMIS or Key

System

Integration Description

TRM IP 2.9 DEO Agency Business System (Project Connect) to Federally Mandated Disbursement Account

Transmit EFT Payment Data

TRM IP 2.14 Federally Mandated Disbursement Account to Florida PALM

Federally Mandated Disbursement Account Transactions/Balance

TRM IP 2.15 Federal Bank Account to Florida PALM

Federal Bank Account Transactions/Balance

TRM IP 3.6 Florida PALM to Custodial Bank

Transmit Internal Trades File


Transmit Internal and External Trade Transactions

TRM IP 3.17 Florida PALM to SPIA Application

Transmit File to SPIA Application


Transmit Custodial Accounts Data

TRM IP 4.3 SPIA Bank to Florida PALM

SPIA BAI Data

TRM IP 7.6 CRA Bank to Florida PALM

Transmit Daily File

TRM IP 7.7 Non-CRA Banks to Florida PALM

Non-CRA Bank Activity File

TRM IP 1 Agency Business System to Florida PALM

Agency business system interface uploading revolving fund activity

TRM IP 7.21 Florida PALM to Agency Business Systems

Transmit CRA Investment Transactions/Balances to Agency Business Systems

TRM IP 9.1 Auditor General to Florida PALM

AG File of Audited SEFA



1.8. Control Points Control Pt.

ID

Control Point Description

TRM CP 1 Dual agency signatures required for banking activity

1.9. Reporting Report

No.

Description Frequency

and

Triggering

Event

Audience(s) Classification Governing Laws

and Policies

TRM R1

Cash Position Worksheet

Periodic, On Demand

Treasury Staff Operational TBD

TRM R2

Ledger Exception/ Balance Report

Periodic, On Demand


TRM R3

DEO Income-Expense Analysis

Monthly DEO Staff Treasury Federal Government

Operational Federal OMB No. 1205-0154

TRM R4

Reconciliation exceptions, unreconciled items and reconciled items

Periodic, On Demand

Agency Staff Treasury staff

Operational TBD

TRM R5

Inventory Report Periodic, On Demand


TRM R6

Trades Report Periodic, On Demand


TRM R7

Balance Sheet Report

Periodic, On Demand


TRM R8

General Journal Entries

Periodic, On Demand

Treasury staff Operational TBD

TRM R9

Commercial Paper Compliance Reports

Periodic, On Demand


TRM R10

Reconciliation report of trades entered but not settled

Periodic, On Demand


TRM R11

External Manager Certification

Monthly Treasury Staff Operational TBD

TRM R12

Investment Maturity and Accrual Reports

Periodic, On Demand




Report

No.


and

Triggering

Event


and Policies

(Monthly and life-to-date)

TRM R13

Cash Movement Report (income, accrued interest, etc.)

Periodic, On Demand


TRM R14

CAFR Investments Schedules

Annually, On Demand

Treasury Staff A&A Staff

Operational Management

TBD

TRM R15

Apportionment Report

Periodic, On Demand


TRM R16

Annual Qualified Public Depository Report

Annual Agency Staff Treasury Staff

Management Section 280.16, F.S.

TRM R17

Revolving Fund Account Listing

On Demand Treasury Staff A&A Staff Agency Staff

Operational TBD

TRM R18

Quarterly Revolving Account Report

Periodic Agency Staff Treasury Staff EOG

Management Section 17.58, F.S.

TRM R19

Revolving Fund Balance Report (Florida PALM Ledger Balance)


Operational TBD

TRM R20

CRA Bank Activity Reports used for reconciliation

Periodic, On Demand

Agency Staff Treasury Staff

Operational TBD

TRM R21

CRA Daily Bank File Error Report

Daily Treasury Staff Operational TBD

TRM R22

Closed Account Report


Operational TBD

TRM R23

Draft Annual CMIA Report

Annually Treasury Staff Agency Staff

Operational TBD

TRM R24

Final Annual CMIA Report

Annually Treasury Staff Agency Staff Federal Government

Management TBD

CSH R3 Qtrly Report for

Clearing and

Quarterly Treasury Staff Management Section 17.58(4), F.S. Chapter 69C-1.005, F.A.C.



Report

No.


and

Triggering

Event


and Policies

Revolving Accounts

CSH R4 Annual Report of

Outside Banking

Service Contracts

By July 15th Treasury Staff Management Chapter 69C-9.005, F.A.C.

1.10. Accounting Events Accounting

Event ID

Description Accounting Entry

DR – Debit

CR – Credit

Accounting Entry

Treasury Ledger

DR – Debit

CR – Credit

TRM AE 1.3 Record SPIA Balances TBD TBD

TRM AE 1.10

Moves Cash from Concentration to Disbursement Account

No entry DR Cash in Bank – Disbursement Account CR Cash in Bank – Concentration Account

TRM AE 1.11

Move Cash from Custodial Bank Account to Disbursement Account

No entry DR Cash in Bank - Disbursement Account CR Cash in Bank - Custodial Account

TRM AE 1.12

Move Cash to Custodial Bank Account

No entry DR Cash in Bank – Custodial Account CR Cash in Bank – Concentration Account

TRM AE 1.14

Wire Funds from Custodial Bank Account to SPIA Participant

TBD TBD

TRM AE 2.2 Wire Funds to Federal Bank Account

TBD TBD

TRM AE 2.5 Voucher Prepared for Debit Cards

TBD TBD

TRM AE 2.7 Florida PALM records UC WH Tax and EFT Payments

TBD TBD

TRM AE 2.8 Agency Records Detailed Accounting Information

TBD TBD



Accounting

Event ID


DR – Debit

CR – Credit

Accounting Entry

Treasury Ledger

DR – Debit

CR – Credit

TRM AE 2.17

Agency Records Accounting Entries to Reflect New Transaction Activity

TBD TBD

TRM AE 2.19

Agency Records Accounting Entry to show Cash in Bank Movement

TBD TBD

TRM AE 3.2 Record Portfolio Reallocation TBD TBD

TRM AE 3.5 Record Trade Information (internal trades)

Sale: DR Cash DR Loss on Sale of Investment (if Loss) CR Pooled Investments with State CR Gain on Sale of Investments (if Gain)

Purchase: DR Investments DR Investments - Purchased Interest Receivable CR Cash in Bank – Custodial Account Sale: DR Cash in Bank – Custodial Account DR Investment Income Liability (if loss) CR Investments CR Investment – Purchased Interest Receivable CR Investment Income Liability (if gain)

TRM AE 3.12

Record External Trade Information

TBD TBD

TRM AE 3.14

Earned Interest Calculations (cash and accrual)

Accrue Interest Daily: DR Accrued Interest Receivable CR Investment Income Liability Maturity: DR Cash in Bank – Custodial Account CR Investments Receive Interest: DR Cash in Bank – Custodial Account



Accounting

Event ID


DR – Debit

CR – Credit

Accounting Entry

Treasury Ledger

DR – Debit

CR – Credit

CR Accrued Interest Receivable

TRM AE 3.16

Post SPIA Apportionment TBD TBD

TRM AE 6.9 Initial Establishment Revolving Fund: DR Cash CR Advances from other funds Source Fund: DR Advances to other funds CR Cash

CRA: DR Cash in Bank – CRA CR CRA Participant Liability No entry for Non-CRA:

TRM AE 7.4 Record Revolving Fund Expenditures and Replenishment

Revolving Fund: DR Advances from other funds CR Cash Applicable Fund: DR Expenditures CR Cash (result produces warrant to replenish Revolving Fund) Revolving Fund: DR Cash CR Advances from other funds

CRA: DR CRA Participant Liability CR Cash in Bank – CRA No entry for Non-CRA CRA: DR Cash in Bank – CRA CR CRA Participant Liability No entry for Non-CRA:

TRM AE 7.13

Transaction Correcting Entry TBD TBD

TRM AE 7.14

Post Transactions from CRA file into Florida PALM

TBD TBD

TRM AE 7.18

CRA Investment/Disinvestment Transactions

TBD TBD

TRM AE 7.19

System Apportions Interest and Fees

TBD TBD

TRM AE 7.20

System Apportions Interest and Fees to Agency Participants

TBD TBD



Accounting

Event ID


DR – Debit

CR – Credit

Accounting Entry

Treasury Ledger

DR – Debit

CR – Credit

TRM AE 8.9 Record Increased Balance TBD TBD

1.11. Key Performance Indicators/Measures Measure Relevance Data Elements Needed to Generate

Measure

Portfolio Interest Earnings Performance

Accurate cash forecasting can lead to better investment decisions

Return on investment per dollar invested

Trends for the return on investments annual by month compared to previous years

Grant Draw/Payment Clearance Performance

How timely are draws to payments to minimize interest owed to Federal government

Avg number of days between receipt of funds and payment clear date

Number of draws made greater than three days prior to payment date

Amt of interest paid to Feds/total amt of draws

Trends for the three measures identified above

Timely Recording of Revolving Fund Expenditures

Capture expenditure information more timely and ensure at the authorized balance

Date of transaction compared to date of accounting entry

Number of reconciling items

Helps to identify problem areas, process performance

Number of exceptions for each (named) reconciliation process

Trends for reconciliation measures identified above

Frequency of reconciling exceptions

Effectiveness of electronic postings Effectiveness of initial transaction entry

Amount of time to resolve exception for each (named) reconciliation process

Trends for resolution of exceptions Number of outstanding reconciling items older than one week

Trends identify ability to reconcile items in a “reasonable” amount of time

Number of unreconciled items with elapsed time greater than one week

Number of unreconciled items with elapsed time greater than one month

Trends for measures identified above

Number of bank accounts

Management of accounts and leveraging existing accounts

Number of bank accounts opened and closed during the month

Number of bank accounts opened and closed during the year



Measure Relevance Data Elements Needed to Generate

Measure

Net change in number of bank accounts for the year

Trends for bank account measures identified above

Number of banking relationships

Use of non-Treasury contracted banks should be minimized

Number of banking relationships at the beginning and end of year

Year-over-year trends for number of banking relationships

1.12. Future Enhancements • Revolving Fund functionality incorporated into the accounting system

• Trading incorporated into the accounting system

Documents

1.1. General Information...1.1. General Information Process Area TRM – Treasury Management Process Workflows 10.1 TRM – Cash Position 10.2 TRM – Agency Federal Bank Account 10.3