State agencies need to perform various monthly functions. Each month, by the 15th of the month, agencies should close the month on the 25 Screen, Agency Control Profile. GAD will normally close the months statewide on the 97 Screen, System Management Profile, on the morning of the 16th. However, General Fund revenue will be closed to transactions for all agencies on the morning of the fifth working day. Once the month is closed, the agency should run their monthly reports and retain them for research
purposes.
Agencies should verify that all transactions with an effective date for the month, except for vouchers payable transactions that are awaiting a due date, have been final posted. Agencies can use the 530 Screen or the QAFR7220 Report to see which transactions have not gone to history. Batch headers listed on the 530 Screen with a status of “H” have transactions within the batch that are on hold and must be corrected and released or deleted. Batch headers with a status of “A” have transactions within the batch that need final approval to go to history. Agencies should also perform the reconciliations
discussed in Sections 3.6.1 Monthly Reconciliation/Encumbrances and 3.8 Appropriations.
3.12 Advances
The State Comptroller may determine that certain purchases should be paid for directly by certain State departments or agencies in order to accomplish prompt payment and also
for the purpose of providing agencies with working fund cash (reference State Finance and Procurement Article, Sections 7-216, 7-218 and 7-220).
Accordingly, the Comptroller may warrant an advance for such sum or sums of money out of any appropriation standing to the credit of such State departments or agencies. These advances in most instances represent cash charged to the State’s general fund balance to the credit of the agency. Advances required for other than general fund purposes are charged against an agency’s cash balance in the State Treasury.
Advances will not be approved for loans, pre-paid expenses, or if the payment can be made using the transmittal payment process.
Permanent advances are made to an agency for the purpose of establishing working funds or imprest accounts, which may be used for travel or petty cash and are retained, by the agency for an indefinite period of time.
Temporary advances are usually made to any agency for establishing temporary working funds or imprest accounts; to temporarily increase a permanent working fund or imprest account; or for other purposes of a temporary nature and must be returned to the State Treasury immediately after the purpose has been accomplished.
All advances are charged to the agency on the accounts of the Comptroller, and the agency is held strictly responsible for the safekeeping and accountability of advances from the State Treasury. The agency’s fiscal officer to ensure that the funds are being properly managed and that excess funds are returned to the General Accounting Division must periodically review advances. Requests for permanent increases to existing
working funds/petty cash accounts must be supported by an analysis of the account. Contact the General Accounting Division, Administrative Services, for instructions on completing this analysis.
Requests for temporary “salary” advances should only be made on an emergency basis and be for an amount not to exceed net pay or 60 percent of gross pay for the pay period then ending. Temporary salary advances must be returned immediately after employees receive their first pay. Agencies, if not exempted by law, must comply with the
Department of Budget and Management’s (DBM) regulations concerning the hiring of personnel. All requests for temporary salary advances for new employees in process of being approved by personnel and paid through the Central Payroll Bureau (CPB) must be accompanied by a certification or Statement from the agency’s fiscal officer that the agency has complied with DBM and CPB regulations.
Requests for temporary advances for “Travel” must also include a certification or statement from the agency’s fiscal officer that the agency has complied with DBM standard travel regulations.
In order to facilitate the processing of advances, all requests must be in writing – setting forth the need and justification for the advance. Each request must contain the following information, and the agency representative signing the request must have a signature card on file with the General Accounting Division authorizing requests for advances.
Requests may be faxed to the General Accounting Division. Date advance is required;
Whether the requested advance is Temporary or Permanent and if temporary, the date by which the advance will be returned;
The requesting R*STARS batch agency Title and three character code; The requested payee name;
How the amount requested was calculated;
The detail purposes for which the advance will be used;
The full accounting distribution (financial agency, PCA, and fund code and amount) to be charged;
If the advance is to be made by check, whether the check is to be held for pickup or the address for mailing;
The authorized signature of the requesting agency representative; Certification or statement that DBM and/or CPB regulations have been
followed;
If the advance is for the purpose of establishing a working fund and requires a special bank account, a Form X-1, Treasurer’s Bank Account Information System, (See Section, Forms), must be attached, or if the purpose is to increase a working fund, the bank name and account number must be listed; and
If the advance is to be made by electronic funds transfer (EFT) or for a foreign currency transfer (FCT) the following additional information is required:
The R*STARS vendor number indicated on your agency’s previously approved Electronic Funds Transfer Request Authorization Form (GAD X-9) for both EFT and FCT payments, and
Whether the EFT is to be made via ACH or Fed Wire for EFT payments only.
Advances should be requested by an Agency’s Fiscal Officer having a signature card on file in the General Accounting Division authorizing advance transactions. The
requester/Agency fiscal officer is responsible for the advance regardless of who is named as payee on the advance check. It is extremely important that travel and salary advances are coordinated with the Agency’s payroll procedures to ensure the timely repayment of the advance.
A minimum of three working days is required to prepare an advance check. Agency working fund advances will be made payable to the “State agency name – working fund”. Petty cash advances will be made payable to the “custodian and petty cash fund.” These same rules will apply when requesting a reimbursement of an agency working fund or petty cash fund via the transmittal payment process. All advances returned should be in check form made payable to the “Comptroller of Maryland” and must be accompanied by a transmittal letter identifying the financial agency, PCA and fund to be credited.
Advances are accounted for by the General Accounting Division by financial agency PCA and fund; therefore, all correspondence concerning advances, i.e., Requests, Corrections, and Return of Advances must reference the appropriate accounting codes. Agency advances will be reflected on the agency’s R*STARS reports.
Write-offs of Agency Advances – The following procedures are in effect regarding the write-offs of advances:
A loss resulting from theft – shall be reported to local or state police or appropriate special police official assigned to the facility.
Claims shall be made through the State Treasurer’s Insurance Trust Fund – or commercial carrier.
A loss where a specific debtor can be identified shall be referred to the Central Collection Unit; and
Losses, not covered by insurance or transferred to the Central Collection Unit, shall be submitted to the Board of Public Works through the Department of Budget and Management for approval.
Written notification of write-off approval, from either the Central Collection Unit or the Department of Budget and Management, will serve as official authorization to support an agency transmittal request to the General Accounting Division to restore the working
fund by charging existing appropriations. Under no circumstances should an agency charge its appropriation until the write-off is approved. Agencies should also refer to the Budget and Management Manual for further clarification on this subject.