KEY ACCOUNTING ELEMENTS OF A FINANCIAL AND ADMINISTRATIVE IT SYSTEM - 7120

(Revised and Renumbered from 7262 08/2020)

Any state agency/department that plans to implement, design or acquire, modify or update a financial and administrative information technology (IT) system after obtaining the necessary approvals outlined in SAM section 7260, must ensure the system incorporates any mandatory requirements. The system must have the capability to:

Reconcile appropriation balances

• Provide monthly appropriation reports which identify appropriations, expenditures, reimbursements, abatements, and unappropriated balances.
• Produce monthly cash, and appropriated and unappropriated revenue reports to effect complete reconciliations.
• Provide detailed transaction listings to support the above reports.

   

  Allocate administrative and other indirect costs

• Collect and distribute indirect costs to direct programs and organizational units at the required levels of detail.
• Retain the original transaction coding and identity of the allocated cost or change it upon distribution.

   

  Distribute costs to funds

• Accumulate multi-funded costs and distribute them to the proper funds/ appropriations.
• Maintain the original organization/ business unit and program and object/account identity.