Topic 1 – Chart of Account Maintenance



Topic 2 – MARS Systems Assurance Processes

Purpose

Objectives

The purpose of this topic is to provide an explanation of MARS Systems Assurance Processes such as: Detailed General Ledger/Internal Consistency Report (SA1), Out of Sync Listing (SA3), Organizational Structure Consistency (SA5), and System Assurance for Cash Balances (C110). Additionally, you will learn how to read various MARS System Assurance Reports.

By the completion of this topic, you will be able to:

• Define the purpose of MARS System Assurance Processes; and,

• Describe the information contained in MARS System Assurance Reports.

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MARS System Assurance Capabilities:

• Verify debits and credits are equal for each transaction.

• Verify all table balances equal transactions recorded in the Budget and General Ledgers.

• Verify the organizational structure is accurately specified for each organization.

• Verify cash account balances on the BBAL table agree with the CASH table.

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MARS System Assurance Capabilities

The MARS System Assurance Processes includes programs designed to help maintain data integrity on a daily, monthly, and annual basis. Different MARS System Assurance Processes verify:

• Verify debits and credits are equal for each transaction.

• Verify all table balances equal transactions recorded in the Budget and General Ledgers.

• Verify the organizational structure is accurately specified for each organization.

• Verify cash account balances on the BBAL table agree with the CASH table.

Problems occurring due to system crashes or operational errors will be detected and reported by MARS System Assurance Processes. For example, Detailed General Ledger Internal Consistency (SA1) process verifies that debits and credits are balanced in the general ledger.

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MARS System Assurance Processes

Under normal circumstances, the balances in the tables will agree with the balances carried in the General Ledger and in the Budget Ledger. However, system crashes are an unfortunate reality on any computer hardware. Occasionally, operational errors in the restore and recovery procedures following a system crash will cause discrepancies in the table and ledger balances.

MARS System Assurance Process includes programs that help maintain data integrity in the event misinformation or conflicting data is entered into the system. For example, the Organization Structure Consistency (SA5) process inspects the Organization (ORG2) table to verify that level indicators match its listed reporting level. Thus if an Organization were entered on ORG2 with three levels but only two were entered, SA5 produces a report noting the Organization. We will discuss SA5 in greater detail later in this topic.

There are two types of imbalances the system will verify ledger imbalances and ledger versus table imbalances. Each of these types of imbalances is run on a daily basis as part of the Nightly Cycle Processing.

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Ledger Imbalances

Ledger imbalances occur when data entered into MARS does not balance the Daily General Ledger (GENLEDD) or the Daily Budget Ledger (BUDLEDD). In the event, a Ledger Imbalance does occur the Detailed General Ledger Internal Consistency Report (SA1) process produces a report detailing the entries document ID, fund, and accounting period. You will see an example of this report later in this topic.

The SA1 process runs a program to examine the Daily General Ledger to report any out of balance condition(s). If all daily transaction have posted correctly to the ledger, ledger debits and credit will be equal. Thus no entries are placed on the report.

Let’s examine the SA1 process in greater detail.

Detailed General Ledger Internal Consistency Flowchart (SA1)

Detailed General Ledger Internal Consistency Report (SA1)

Detailed General Ledger Internal Consistency Report (SA1) process is run on a daily basis as part of the Nightly Cycle Processing. The SA1 process checks for ledger imbalances on the Daily General Ledger (GENLEDD).

The SA1 process produces a report listing imbalances between debits and credits on the general ledger. This report balances ledger entries within document ID.

The SA1 process can also be made to run on a monthly or yearly basis. The Monthly General Ledger Internal Consistency (MSAE) process performs the same function as the SA1 but is run on a Monthly basis after the Monthly Close. The Year-End General Ledger Internal Consistency (NSAE) process performs the same function as the SA1 but is run as part to of the Annual Close.

Let’s now examine a SA1 report.

Example 1:

Detailed General Ledger Internal Consistency Report (SA1)

Report ID: SA1 10/10/01

Commonwealth of Kentucky

Detailed General Ledger Internal Consistency Report

Verification of Equal Debits and Credits by Document ID, Fund, and Posting Period

Document ID Fund Period Debit Amount Credit Amount Error Message

PV520P1123456789 0100 06 01 10,000.00 0.00 Transaction line posted with unequal debits and credits.

Detailed General Ledger Internal Consistency (SA1) Report

The Detailed General Ledger Internal Consistency (SA1) process and report generated is more fully illustrated in the following example.

Let’s assume you are reviewing the SA1 system assurance report and notice a transaction with unequal debits and credits (Example 1). On the report you will observe the Document ID is “PV520P1123456789,” Fund is “0100,” Accounting Period is “06 01”, and an Error Message “Transaction line posted with unequal debits and credits.”

In the example, the SA1 process has detected an unequal debit and credit entry between the Advantage Financial Database and the Daily General Ledger (GENLEDD).

Next, let’s discuss another type of imbalance the Ledger vs. Tables Imbalances.

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Ledger vs. Table Imbalances

Ledger vs. Table Imbalances occur when ledger and table data do not balance and must be corrected. For example, the Out-of-Sync Listing (SA3) process compares account balances, as stored in ADVANTAGE Financial Database, against the account balances as stored in the Daily General Ledger (GENLEDD) and the Daily Budget Ledger (BUDLEDD). Specifically, the following balances are verified:

• Current modified appropriation amount, pre-encumbered amount, encumbered amount, and expended amount on the Appropriation Inquiry (EAP2) table.

• Balance Sheet Account Balances on the Balance Sheet Account Balance (BBAL) table.

• Current modified budgeted amount, pre-encumbered amount, encumbered amount, and expended amount on the Expense Budget Inquiry (EEX2) table.

• Current modified budgeted amount and recognized amount on the Revenue Budget Inquiry (REV2) table.

Let’s discuss the SA3 process in greater detail.

Out-of-Sync Listing (SA3) Flowchart

Out-of-Sync Listing (SA3)

Out-of-Sync Listing (SA3) process compares general ledger and budget ledger records to master tables to see if all daily activity was recorded on the tables. It notes table begin-day balances, adds any ledger activity that occurred today and compares the result to table current balances, reporting any differences found.

Table entries that show no activity on the ledger will also be checked, and reported if begin-day balances do not equal current balances. The amount fields on Appropriation Inquiry (EAP2), Balance Sheet Account Balance (BBAL), Expense Budget Inquiry (EEX2), Revenue Budget Inquiry (REV2) tables will be verified.

In addition, the SA3 program produces a report showing only the out-of-sync items. Every entry on each of the four tables is checked regardless of whether transactions were posted to a particular table entry that day. Beginning day balances are also updated.

The SA3 process produces the Out-of-Sync Listing report. Let’s now examine a SA3 report.

Example 2:

Out of Sync Listing (SA3) Report

Report ID: SA3 10/10/01

Commonwealth of Kentucky

Out-of-Sync Listing

Field Begin-Day Recorded CACL Current Table Current

Name Balance On Ledger Balance Balance Difference

BBAL Key:

1000 1129

BS Account

Balance 180.00 200.00 380.00 180.00 200.00

Out-of-Sync Listing (SA3)

The Out-of-Sync Listing (SA3) process and report generated is more fully illustrated in the following example:

Let’s assume you are reviewing the SA3 system assurance report and notice a transaction with a table current balance, which does not equal the Calculated Current Balance (Example 2). On the report you will observe the BBAL Key is “1000 1129.” The first number in the BBAL Key represents the Fund “1000” and the second number “1129” is the Balance Sheet Account. This record indicates $200 was added to the General Ledger. However, the table current balance of $180 does not show the additional $200.

In the example, the SA3 process has detected an imbalance between General Ledger record and the BBAL table.

Now let’s examine a system assurance process which verifies the organization structure within MARS.

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Organization Structure Consistency Report (SA5)

The Organizational Structure Consistency Report(SA5) process consists of one step that verifies organizational structures and lists their inconsistencies.

The SA5 process checks the reporting organization as follows:

• Each reporting organization is verified against the Organization (ORG2) table.

• Each reporting organization is checked to verify that the level indicator on the original ORG2 entry matches its listed reporting level.

The SA5 process produces the Organizational Structure Consistency report. Let’s examine a SA5 report.

Example 3:

Organizational Structure Consistency (SA5) Report

Report ID: SA5 10/10/01

Commonwealth of Kentucky

Organization Structure Consistency Report

FY Agency ORG Inconsistency

00 520 1100 Reporting org 1 does not exist

Organization Structure Consistency (SA5) Report

The Organizational Structure Consistency Report (SA5) report is illustrated in the following example:

Let’s assume you are reviewing the SA5 report and the inconsistency reads “Reporting Org 1 Does Not Exist”. You will use this information to find the actual record in ADVANTAGE Financial.

In the example, the SA5 process has detected a conflict between the “1100” Organization entry and its ORG2 table listed reporting level. You learned how to correct an error such as this in an earlier topic.

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Detailed General Ledger Internal Consistency Report

Daily General

Nightly Cycle Ledger Assurance (SA1)

Lecture

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Lecture

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Overhead

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Lecture

Lecture

Lecture

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Temporary Balance Account Balance Sheet Account Balance Table (BBAL)

Temporary Budget Table

EEX2 and REV2

Temporary Appropriation Table

EAP2

Daily Budget Ledger

Daily General Ledger

Out-of-sync Listing Report (SA3)

Out –of-Sync (SA3) Process

Lecture

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Overhead

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