FIACCT 06-02_00 – FINET – exempt agencies – overview

Effective: July 1, 1998
Revised: December 1, 2019
Reviewed: December 1, 2019

Purpose

This policy gives an overview of the policies for state agencies that have been granted a written exemption from using FINET to track their non-Federal Invoices by the Division of Finance and the Office of State Debt Collection (OSDC).

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Policy

A. All state agencies will use FINET to record and track their non-Federal Invoices unless granted a written exemption by the Division of Finance and the Office of State Debt Collection (OSDC).

➢ Exemptions will only be granted on the basis that the Division of Finance and OSDC determine an exemption is in the best interest of the State.

➢ Prior to an exemption, an agency must demonstrate appropriate internal controls for the management of receivables. These controls are subject to audit by the Division of Finance.

➢ The Division of Finance and OSDC may revoke any exemption upon change in either of the aforementioned requirements.

B. Required System Controls include accounting journals, transaction logs, system security, separation of duties and transaction approval processes. The Division of Finance will evaluate the adequacy of controls prior to authorizing the use of any accounting subsystem.

C. Agencies that are granted an exemption from using FINET will record a summary of their
receivable activity on FINET once a month.

D. All state agencies are required to record their federal revenue drawdowns on FINET with the A/R Invoice (RE) document.

E. FINET-exempt agencies will analyze their non-Federal Invoices at least once a year to determine if an allowance for bad debt should be established.

F. Each FINET exempt agency shall provide a report on receivables to OSDC on a quarterly basis. There is an Excel Spreadsheet template available from OSDC to facilitate receivable reporting and aging of non-FINET receivables.