To:         Chief Fiscal Officers

From:     Edward Renfrow
              State Controller

Subject: Month-end Certification

As we reach the end of our first year of production with the North Carolina Accounting System (NCAS), we find the timeliness of monthly closings and reporting to central managers has significantly improved. However, a review of the certifications over the last few months has indicated an increase in the number of agencies that have had to recertify previously certified months. While we understand that there may be occasions where errors are found after certification, significant costs are incurred in the rerunning of agency reports.

The main reason cited for needing to recertify is that the agencys cash did not balance with the Cash Management System. Therefore, in an attempt to reduce the need for recertifications, we want to remind each agency that the current certification process includes steps that require each agency to verify cash balances with the Cash Management Control System of the Office of the State Controller (OSC). This step includes verification of the cash balances and year-to-date receipts and expenditures. Additionally, in the General and Capital Improvement Funds, the appropriation, adjusted appropriation and unallotted appropriation balances must be verified (see Section 5, page 8 of the Cash Management Manual). Due to the additional costs involved, we are asking each agency to take particular care in ensuring the certifications are accurate.

As previously addressed in the North Carolina Accounting System Monthly Reporting letter dated January 17, 1996, all agencies who do not certify by the tenth business day of the month are required to submit a letter detailing why that date was not met. In conjunction with this, agencies will now also be required to submit letters explaining why recertification was necessary. Both of these letters are to be addressed to Don Waugh, Assistant State Controller, and faxed to the Office of the State Controller at (919) 715-3863. These letters should be sent no later than the 15th business day of the month or within five business days of recertification.

If you need additional assistance, or have any questions about the closing requirements, please call Chuck Cooper at (919) 715-2858 or Don Waugh at (919) 733-0178. Thanks in advance for your assistance in this matter.

cc: Marvin Dorman

State Budget Officer