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STATE OF MISSISSIPPI
DEPARTMENT OF FINANCE AND ADMINISTRATION
STATE OF MISSISSIPPI
DEPARTMENT OF FINANCE AND ADMINISTRATION
SAAS is the accounting system utilized by all state agencies to record, process, and produce financial information on their financial position and results of operations. For general and special treasury funds, all transactions are processed through SAAS. It is each agency’s responsibility to ensure these transactions have been properly processed in SAAS. Refer to Section 30, Internal Control, for guidance on agencies’ responsibilities regarding financial reporting. For bank accounts which have a fund number in the 8XXX series, individual transactions are not processed through SAAS; rather, the agency utilizes its own accounting system for these funds since they are not held by the State Treasury. The agency periodically makes entries to record 8xxx fund account balances in SAAS for proper fiscal year-end reporting. See sections 07.20.10 and 29.60.35 for further information on bank accounts. STATE OF MISSISSIPPI
DEPARTMENT OF FINANCE AND ADMINISTRATION
Accounting systems are based on a fundamental accounting structure referred to as the accounting model. This model is the basic building block in the total accounting process. In governmental accounting, the accounting model is comprised of submodels, each of which is used in presenting financial information. These submodels are stated below using the following mathematical equations: Assets = Liabilities + Fund Balance/Equity Revenues - Expenditures = Excess of revenues over/(under) expenditures/net When analyzing the accounting model, the debit-credit concept should be included. This is the mathematical technique used to record increases and decreases in the specific variables in the model - assets, liabilities, fund balance, revenues, and expenditures. Fundamentally, all recognized accounting events or transactions are recorded in terms of the financial position model A = L + FB. Every financial transaction affects two or more items, either directly or indirectly, in the accounting equation and requires a “double-entry”. In a double-entry accounting system, every transaction is recorded in two or more accounts with equal debits and credits. Thus, every transaction is said to have a dual effect on the governmental unit. However, whatever the effects of transactions, the fundamental accounting model will remain unchanged and in balance, and debits will always equal credits. These two balancing features will automatically detect many types of errors made in the records of an agency and will add considerable reliability to the output of the accounting system. An agency’s accounting system may be maintained manually, mechanically or electronically, but in all cases should record each entry in the basic accounting model so that the self-balancing feature is maintained. STATE OF MISSISSIPPI Page 1 of 3
DEPARTMENT OF FINANCE AND ADMINISTRATION
Accounts are the primary media through which the effects of various transactions are recorded. A separate account is used for each asset, liability, fund balance, revenue and expenditure category. Asset, liability and fund balance/equity accounts are titled “Balance Sheet Accounts”, revenue accounts are titled “Revenue Source Codes”, and expenditure accounts are titled “Object Codes” by SAAS. All account numbers are detailed in section 25.60.20. Agencies that desire to do further dividing of codes may do so on a subsidiary account basis. The basic form of the account is illustrated below. It is divided with a left side (debit) and a right side (credit). Increases in a given account are recorded on one side and decreases on the other. This form frequently is called a “T” account. The terms “debit” and “credit” are traditional terms in accounting and do not in themselves reveal anything about the account. Each transaction is expressed in terms of its debit or credit effect on an account. An account is said to be debited when an amount is entered on the left side of the account and credited when an amount is entered on the right. The balance of an account (the amount reported) is the difference between total debits and total credits. RECORDING INCREASES AND DECREASES INTO ACCOUNTS Increases in assets conventionally are recorded on the left (debit) side of an account, while increases in liabilities or fund balance are recorded on the right (credit) side. Conversely, decreases in assets are recorded on the right (credit) side, and decreases in liabilities and fund balance are recorded on the left (debit) side. Asset accounts typically carry a debit balance, and liability accounts and the fund balance carry a credit balance. The fund balance/equity account is increased by revenues and decreased by expenditures/expenses. Increases and decreases are seldom made directly to this account; they are recorded in accounts which describe the nature of the transaction. Fund balance/equity is determined by taking the beginning credit balance of the fund balance/equity account, adding credit balances of all accounts which increase it (revenues), and subtracting debit balances of all accounts which decrease it (expenditures/expenses). Thus, revenue accounts increase fund balance/equity because they have a credit balance; expenditures/expenses decrease fund balance/equity because they have a debit balance. The debit and credit relationship of fund balance/equity is applied as: STATE OF MISSISSIPPI Page 2 of 3
DEPARTMENT OF FINANCE AND ADMINISTRATION
To summarize, the five basic classifications of accounts affected by debits are as follows: These relationships are critical to an understanding of double-entry accounting. SAMPLE TRANSACTIONS The initial step in recording the effects of a given transaction is to identify its dual effect. The following are samples of how individual transactions would be analyzed for recording in individual accounts of a state agency. 1. The state agency purchased office supplies for $25. Analysis of the transaction: The purchase of office supplies is an expenditure/expense that decreases both assets and fund balance/equity. The debit to office supplies expenditure/expense decreases fund balance/equity and the credit to cash records the decrease in cash. STATE OF MISSISSIPPI Page 3 of 3
DEPARTMENT OF FINANCE AND ADMINISTRATION
The state agency received $10 revenue for license fees. Analysis of the transaction: The receipt of $10 for license fees represents a revenue to the agency which increases both assets and fund balance/equity. The debit to cash records the increase in cash and the credit to license fees revenue increases fund balance/equity. STATE OF MISSISSIPPI
DEPARTMENT OF FINANCE AND ADMINISTRATION
SUB-SECTION JOURNAL VOUCHER TRANSACTIONS SAAS maintains records for each agency. If the agency discovers an accounting error which must be corrected, a JV needs to be prepared to adjust the SAAS records. DOCUMENTATION The screen print of the JV with authorized signature is submitted to BFR for pre-audit and approval in SAAS. Copies of the original documentation to be corrected (e.g. PV, receipt) and the Detail General Ledger report (report A611A) or a MERLIN report showing the original transaction being corrected must be attached to the JV. Only the page(s) of the A611A report on which the transaction appears needs to be submitted with the JV; the transaction should be highlighted in yellow or indicated in some way. Refer to MMRS Training Documentation for procedures on preparing JV documents. STATE OF MISSISSIPPI
DEPARTMENT OF FINANCE AND ADMINISTRATION
The J2 document was originally created for agencies to make adjustments without the review or approval of BFR. J2 transactions include correcting minor object codes within the same major object class on a single fund; correcting revenue codes on a single fund; allocating costs to organization codes, reporting categories, project codes, etc.; correcting organization codes, reporting categories, project codes, etc.; or CMIA correcting revenue entries. Corrections to organization codes, reporting categories, etc. may also be made to balance sheet accounts as long as all lines on the J2 have the same balance sheet account. The J2 document is entered into SAAS from the JV document entry screen, but the document ID transaction code is J2 instead of JV. In addition to the normal edits, there are some additional restrictions on J2 transactions: 1. Adjustments may not be made between different balance sheet accounts using a J2 document. 2. The fund number on which the adjustment is being made must be entered in the header. If the transaction is correcting an object code, the major object on which the adjustment is being made must also be entered in the header. The transaction will not process if it contains minor object codes which are different from the header. The minor object codes must roll into the same major object that is in the header. 3. A description is required. The first two characters of the description field will be automatically updated on the The J2 document is approved with four levels of approval by the agency and does not need to be submitted to BFR for approval. A SAAS security profile change will be needed to grant access and the appropriate levels of approval for each employee who will be using the J2 document. Refer to MMRS Training Documentation for procedures on making J2 adjustments. STATE OF MISSISSIPPI
DEPARTMENT OF FINANCE AND ADMINISTRATION
The JA document was created for agencies to record transactions of checking accounts on 8xxx funds. The JA document is entered from the JV document screen, but the document ID transaction code is JA instead of JV. The JA transaction has the same functionality as a JV transaction with the following exceptions: 1. The agency has final approval and does not need to submit the JA to BFR for review or approval. 2. The JA flag on the fund table must be set to “Y” for the fiscal year in order to process the JA within SAAS. 3. Account types 24 and 32 are not valid in a JA transaction. A SAAS security profile change will be needed to grant access and the appropriate levels of approval for each employee who will be using the JV document. Refer to MMRS Training Documentation for procedures on entering JA transactions. STATE OF MISSISSIPPI
DEPARTMENT OF FINANCE AND ADMINISTRATION
When a JV is received, BFR will review the JV for correctness and proper documentation before approval and subsequent processing. If the JV is incorrect or needs further documentation, the JV will be returned to the agency, along with a JV Correction Request indicating the necessary changes or corrections before any further processing can occur. Exhibit 26.20.15-A is an example of this form. JV CORRECTION REQUEST
JV No. ________________________________________ THIS JOURNAL VOUCHER IS BEING RETURNED TO YOU UNPROCESSED FOR REASONS
INDICATED BELOW: (Return this form with corrected JV.)
_______1. This JV should be recorded as indicated below.
______1a. It should be made as a regular JV, not as an ADJ JV.
______1b. It should be made as an ADJ. (JV document number begins with ADJ.) ______1c. It should be made as a J2.
______1d. It should be made on a CR (cash receipt document).
_______2. Entry is not written correctly. (See MAAPP Manual section 11.40.10 for expenditure corrections and ADJ entries. See section 21.40.10 for revenue corrections.) ______2a. Missing part of entry: ______________________________________________ ______2d. Missing budget year in 'Budget FY' blank during a lapse period.
______2f. Debits do not equal credits.
_______3. Need vendor number on each line that affects an object code.
_______4. Attach a copy of supporting information: ______4a. Copy of original document to be corrected (PV, CR, etc.).
______4b. A611A report showing how document processed or a MERLIN report showing how document processed if A611A is not available.
_______5. Need more explanation and/or support.
_______6. JV rejected in SAAS with an error message:____________________________________ ________________________________________________________________________ _______7. Other ___________________________________________________________________ ________________________________________________________________________ DEPARTMENT OF FINANCE AND ADMINISTRATION
By ________________________________________ Phone _____________________________________ STATE OF MISSISSIPPI
DEPARTMENT OF FINANCE AND ADMINISTRATION
SUB-SECTION SUMMARY TRIAL BALANCE REPORTS Monthly trial balances are designed to assist state agencies in reconciling their accounting records with SAAS. The reports, generated for each state agency by fund, provide an agency two separate views of their accounting records; one is by budget year (the 614C report), and the other is by accounting period (the A614A report). The A614A records the summary of all transactions within one accounting period, regardless of the budget year associated with those transactions. The 614C records the summary of all transactions with the applicable budget year within one accounting period. During July of each year, accounting period 01, all payment vouchers and receipt warrant transactions will be recorded on one A614A as of July 31. These transactions will be split based on the budget year of the transaction and reported on two separate 614C's, one for the old budget year and one for the new budget year, both as of July 31. The format of the A614A and the 614C is identical; therefore, only one reference and explanation of the reports for the exhibits is provided below. The reference number corresponds to both Exhibit 25.30.10-A and Exhibit 25.30.10-B. REFERENCE REPORT ID - The number of the report utilized for identification purposes. AS OF - The accounting period for which the A614A report was based or the last day of the current accounting period on which the 614C report was generated. DEPARTMENT - The agency number and agency name for which the report was run (sample reports in Exhibits 25.30.10-A and -B are blank). FUND - The fund number and fund name being reported (sample reports in Exhibits ACCT TYPE - The type of account being reported. The account type groups account codes; for example, all asset accounts are account type 01 and all encumbrances are account type 21. B.S. ACCOUNT (Balance Sheet Account) - The balance sheet account number and name for which a summary total is reported. OBJ/REV SOURCE (Object Code/Revenue Source) - The object code or revenue source number and name for which a summary total is reported. BEG BALANCE - The beginning balance of the account being reported. The balance will be the same as the preceding report's ending balance. TOTAL DEBITS - The total of all debits for the account being reported. STATE OF MISSISSIPPI
DEPARTMENT OF FINANCE AND ADMINISTRATION
SUB-SECTION SUMMARY TRIAL BALANCE REPORTS TOTAL CREDITS - The total of all credits for the account being reported. ENDING BALANCE - The ending balance for the account being reported. This is calculated by adding or subtracting the total debits and the total credits from the beginning balance. ACCT TYPE TOTAL - A summary of all individual account codes for each account type. FUND TOTAL - The total of all debits and credits for the fund being reported. STATE OF MISSISSIPPI
DEPARTMENT OF FINANCE AND ADMINISTRATION
SUB-SECTION DETAIL GENERAL LEDGER REPORT The Detail General Ledger report (A611A) is designed to assist state agencies in reconciling their accounting records with SAAS. The report is generated for each state agency by fund and provides totals for each account, account type, and fund. The Detail General Ledger report (Exhibit 25.30.30-A) is based on the accounting period and fiscal year. All transactions during one accounting period are reported on one A611A regardless of the budget year associated with the transaction. The first field on the left of the report identifies the budget year to which the transaction was recorded. An explanation of the information contained on this report is provided below. REFERENCE REPORT ID - The number of the report utilized for identification purposes. ACCOUNTING PERIOD ENDED - The accounting period for which the A611A report was based. FUND - The fund number and fund name being reported (sample report in Exhibit 25.30.30-A is blank). DEPARTMENT - The agency number and agency name for which the report was run (sample report is blank). YR (Year) - The budget year associated with the transaction. TRANSACTION ID - The transaction identification number. TRAN DATE (Transaction Date) - The date the transaction was processed in SAAS. OBJ/REV SRCE (Object Code/Revenue Source) - The object code or revenue source number to which the transaction was coded. ORG (Organization) - Used by some agencies to further track and budget revenues and expenses. ACTV (Activity) - The activity code the transaction is coded to on the payment voucher. Used by many agencies to record program budget expenditures. PROJECT NUMBER - Used by agencies if they need to further sub-divide the account code structure. REPT CATG (Reporting Category) - Used by agencies to further sub-divide the account code. DESCRIPTION - A description is provided for some of the transactions reported. TOTAL DEBITS - The total of all debit transactions; a total of all debits is also provided by account, account type and fund. STATE OF MISSISSIPPI
DEPARTMENT OF FINANCE AND ADMINISTRATION
SUB-SECTION DETAIL GENERAL LEDGER REPORT TOTAL CREDITS - The total of all credit transactions; a total of all credits is also provided by account, account type and fund. ENDING BALANCE - The ending balance for the account, account type, or fund being reported. This is calculated by adding or subtracting the total debits and the total credits to the beginning balance (item 19). ACCT TYPE - The type of account being reported. The account type groups account codes; for example, all asset accounts are account type 01 and all encumbrances are in account type 21. BS ACCT/OBJECT/REV SRCE (Balance Sheet Account/Object Code/Revenue Source) - The balance sheet account number and name or object code and name or revenue source number and name associated with the transactions. The report groups all accounts by account code. BEGINNING BALANCE - The beginning balance of the account being reported. The balance will be the same as the preceding report's ending balance. STATE OF MISSISSIPPI
DEPARTMENT OF FINANCE AND ADMINISTRATION
SAAS ACCOUNTING ISSUES GENERAL The accounting entries defined in this section are generated through use of the SAAS Base Module, and are utilized by all agencies. Agencies have additional manuals and information which describe additional accounting entries for the SAAS subsystems installed. The accounting ledgers provided within SAAS are detailed below by SAAS Base Module, the ledgers affected, and the frequency. Following the ledger listing, the base system accounting entries are provided. SAAS LEDGERS SAAS Base Module Closed Detail General Ledger Closed Accounting Closed Detail General Ledger Closed Accounting Closed Detail General Ledger Closed Accounting Closed Detail General Ledger Closed Accounting STATE OF MISSISSIPPI
DEPARTMENT OF FINANCE AND ADMINISTRATION
Closed Detail General Ledger Closed Accounting Closed Detail General Ledger Closed Accounting ACCOUNTING ENTRIES The examples below illustrate some of the most common system generated accounting entries for SAAS. JV Transactions To record beginning general ledger balance for cash moved in Treasury 3XXX Funds: The system's automated process will set up the tables for cash in treasury balances An automated JV will be established to set up enough cash in the "old year" to satisfy any encumbrances and PVs to be paid during the lapse period (balance sheet account 10105). The remaining cash balances will be recorded in the "new year" (balance sheet account 10100). The accounting entry will be as follows: 2. To record net payroll expenditure/expense for 3XXX Treasury Funds: STATE OF MISSISSIPPI
DEPARTMENT OF FINANCE AND ADMINISTRATION
3. To record payroll expenditure/expense for Treasury 2XXX Funds: 4. To record prior year canceled warrants: The entry for warrants issued on a 3XXX fund is recorded in the 3XXX fund. The entry for warrants issued on a 2XXX fund are recorded in fund 2999. 2. To remove the encumbrance when the PV has been entered and accepted: STATE OF MISSISSIPPI
DEPARTMENT OF FINANCE AND ADMINISTRATION
3. To record the issuance of a warrant (Automated Disbursement or Manual Warrant): a. Issuance of a warrant to a 3XXX Treasury Fund b. Issuance of a warrant to a 2XXX Treasury Fund The debit entry to 20200 for 2XXX and 3XXX funds, reverses the liability established by the PV and simultaneously sets up the liability (credit - 20100) when the warrant (Automated Disbursement or Manual Warrant) is generated. To record the reversal of warrants payable (WR) and simultaneously set up the reduction of actual cash in the State Treasury when the warrant is cleared through the Treasury for General Fund 2999 and 3XXX Treasury Funds: Current Year Warrant Cancellation (CX) Transactions 1. Type 1 - Records cancellation of current year warrants with the intent of rescheduling 2. Type 2 - Records cancellation of current year warrants with the intent of re-opening the payment but leaving the PV unscheduled for payment (for 2999, 2XXX Funds and 3XXX Funds). STATE OF MISSISSIPPI
DEPARTMENT OF FINANCE AND ADMINISTRATION
The system generated accounting entries are identical for both Type 1 and Type 2 current 3. Type 3 - Records cancellation of current year warrants with the intent of reinstating budget STATE OF MISSISSIPPI
DEPARTMENT OF FINANCE AND ADMINISTRATION
1. To record the initial establishment of Petty Cash Account (PV transaction): The JV transaction shown below in 2. must be attached to this PV. 2. For 2XXX Treasury Funds only to reinstate the allotment and establish due to/from between the 2XXX fund and 2999 (JV transaction that must be prepared by the agency): 29000 Treasurer's Allotment to Agency (Fund 2999) This JV must accompany the PV transaction shown above in 1a. 3. To replenish Petty Cash (PV transaction): STATE OF MISSISSIPPI
DEPARTMENT OF FINANCE AND ADMINISTRATION
4. To record return of imprest funds (CR transaction): The JV transaction shown below in 5. must be attached to this CR. 5. For 2XXX Treasury Funds only to adjust the allotment and the due to/from between the 2XXX fund and 2999 (JV transaction that must be prepared by the agency): This JV must accompany the CR transaction shown above in 4.a. STATE OF MISSISSIPPI
DEPARTMENT OF FINANCE AND ADMINISTRATION
1. Cash Receipts (CR) transactions for 2XXX funds to record current year expenditure refunds: 2. Cash Receipt (CR) transactions for fund 2999 to record prior year expenditure refunds related 3. Cash receipt account, for all other funds, to record revenue collected: To record agency allotments (2XXX funds) at July 1 and January 1:

Source: http://www.dfa.state.ms.us/Offices/OFR/BFR%20Files/MAAPP%20Files/26%20Agency%20Accounting%20Records.pdf