Minnesota Management and Budget Statewide Operating Procedure Minnesota Management and Budget, General Accounting Number 0501-01.1 Issued: July 8, 2014 Revised: N/A Managing & Reporting of Accounts Receivable Objective To ensure adequate controls over accounts receivable and related activities are established in both policy and practice and that accounts receivable are routinely reconciled in accordance with Minnesota Statutes and statewide polices to facilitate Minnesota Management & for providing Budget’s (MMB) responsibility statewide oversight of accounts receivable and to ensure the year-end accounts receivable is complete and properly reported in the in accordance with state’s Comprehensive Annual Financial Report (CAFR) Generally Accepted Accounting Principles (GAAP). General Procedures Step Action Responsible Timeline Party 1. Agencies with accounts receivable activity must establish Agency As needed internal policies and procedures commensurate with the level of risk attributable to each type of receivable account. 2. Develop quarterly and fiscal year-end accounts receivable MMB October, – worksheets and distribute completion instructions and General January, April, worksheets to agencies. Accounting July 3. Complete the quarterly accounts receivable worksheets, Agency Quarterly - pursuant to MMB Statewide Operating Policy 0501-01 Dates – Managing and Financial Reporting of Accounts Receivable. communicated The June 30 quarterly accounts receivable worksheets will by MMB include additional worksheet columns for reporting supplementary accounts receivable information: “Current Open Receivables”, Non-Current Open Receivables”, Non-Current “Current Allowance”, Allowance”, “Intra/Inter Agency Balance”, “Intra/Inter Agency Allowance”, “Unbilled”, and “Unbilled Allowance”, “Pass Through” Advance Billing”. Submit completed worksheets to MMB General Accounting at . 4. State agencies that prepare their own financial statements Agency Dates for inclusion in the CAFR must ensure that the communicated state’s accounts receivable reported in the financial statements by MMB match the year-end accounts receivable report submitted to MMB. 5. State agencies must periodically reassess the collectability of Agency Annually their accounts receivable.
Minnesota Management and Budget Statewide Operating Procedure Minnesota Management and Budget, General Accounting Number 0501-01.1 Issued: July 8, 2014 Revised: N/A Managing & Reporting of Accounts Receivable Objective To ensure adequate controls over accounts receivable and related activities are established in both policy and practice and that accounts receivable are routinely reconciled in accordance with Minnesota Statutes and statewide polices to facilitate Minnesota Management & Budget’s (MMB) responsibility for providing statewide oversight of accounts receivable and to ensure the year-end accounts receivable is complete and properly reported in the state’s Comprehensive Annual Financial Report (CAFR) in accordance with Generally Accepted Accounting Principles (GAAP). General Procedures Step Action Responsible Party Timeline 1. Agencies with accounts receivable activity must establish internal policies and procedures commensurate with the level of risk attributable to each type of receivable account. Agency As needed 2. Develop quarterly and fiscal year-end accounts receivable worksheets and distribute completion instructions and worksheets to agencies. MMB – General Accounting October, January, April, July 3. Complete the quarterly accounts receivable worksheets, pursuant to MMB Statewide Operating Policy 0501-01 – Managing and Financial Reporting of Accounts Receivable. The June 30 quarterly accounts receivable worksheets will include additional worksheet columns for reporting supplementary accounts receivable information: “Current Open Receivables”, Non-Current Open Receivables”, “Current Allowance”, Non-Current Allowance”, “Intra/Inter Agency Balance”, “Intra/Inter Agency Allowance”, “Unbilled”, “Unbilled Allowance”, “Pass Through” and Advance Billing”. Submit completed worksheets to MMB General Accounting at . Agency Quarterly - Dates communicated by MMB 4. State agencies that prepare their own financial statements for inclusion in the state’s CAFR must ensure that the accounts receivable reported in the financial statements match the year-end accounts receivable report submitted to MMB. Agency Dates communicated by MMB 5. State agencies must periodically reassess the collectability of their accounts receivable. Agency Annually
0501-01-01-managing-reporting-ar-procedure.docx