Overview
This section defines dates required for various transactions in the Statewide Financial System (SFS). In SFS, transactions are recorded to open accounting periods (i.e., periods in which a transaction can be posted). The current accounting period is the current month but the system allows multiple accounting periods to be open simultaneously. The Office of the State Comptroller (OSC) issues monthly operational advisories regarding open accounting periods.
Obligation Date – The Obligation Date is the date goods were received or services were completed and the State incurred a liability (accounts payable) or the date goods or services were provided by the State that resulted in a claim for collection from the State (accounts receivable). Obligation Date is the primary date used for the accrual and modified accrual bases of accounting and reporting (the bases upon which the OSC prepares the State’s GAAP-basis financial statements) therefore, it is very important that agencies enter the correct Obligation Date for each transaction that requires an Obligation Date.
Accounting Date – The Accounting Date is the date the transaction is entered (i.e. the current date) into the SFS. The Accounting Date controls the accounting period and fiscal year in which the transaction is recorded in the Modified Accrual and Commitment Control Ledgers.
Budget Date – The Budget Date controls the budget period in which the transaction will be processed in the Commitment Control Ledger(s). In order for transactions to process successfully, the Budget Date must be in an open budget period. The open budget period is the current State fiscal year (April 1st to March 31st). For Bulkload transactions, the Budget Date will default to the current date that the file is loaded in SFS. For online entry of AP and Purchasing transactions, the Budget Date will default to the current date. For GL Journal Entries, the Budget Date will default to the Journal Date.
Determining the Correct Obligation Date:
Vouchers:
| Regular Vouchers |
Obligation Date is the date goods were received or services were completed and the State incurred a liability. If the payment is made pursuant to a contract, the obligation date is the date specified in the contract if available or the goods were received or services were completed. |
| Debt Service | Date the bond payment is due to the bondholders. |
| Prepaid Vouchers |
Prepayments, such as insurance, subscriptions, maintenance, contracts, and rent are generally made based on contractual or other types of agreements. The obligation date should follow the payment schedule in the contract or agreement. In the absence of a defined payment schedule, the first day the service begins is the Obligation Date. |
| Grant Payments |
Specific grant program requirements need to be analyzed in order to determine Obligation Date. In many cases, grant payment dates are determined by the grant program legislation, for example, the first day of every quarter. Specific grant program requirements need to be analyzed in order to determine Obligation Date. In many cases, grant payment dates are determined by the grant program legislation, for example, the first day of every quarter. Grant programs may require the grantee to perform specific actions before receiving payment, such as filing reporting information or securing matching funding. In these cases, the obligation date is the date that the grantee fulfilled the grant requirements. The Division of the Budget (DOB) may also authorize grant payments. In these cases the Obligation Date is the date authorized by DOB. |
| Adjustment, Refund of Appropriation, and Journal Vouchers |
These types of transactions are used to reclassify or refund previous payments. In all of these instances, the Obligation Date is the same as of the original voucher. When entering a transaction for multiple prior payments, the Obligation Date is the latest of the associated original transactions. |
Travel and Other Expenses:
For travel related expenses, the Obligation Date is the last date of the travel event covered by the reporting document and will correspond with the end date and time of the travel event.
For non-travel expenses, the Obligation Date is the purchase date of the associated merchandise or service.
Billing:
The Obligation Date for billing transactions, including interagency bills, is the date goods and services were provided, or the last date of the period for which the bill applies.
Billing may also be based on contractual or other types of agreements. The Obligation Date should follow the payment schedule in the contract or agreement.
Miscellaneous Revenue Deposits:
Direct deposit receipts that are not related to a receivable (bill) require an Obligation Date. In most cases, the Obligation Date is the date the funds were deposited.
The Obligation Date can also be used to record the date payment was requested, such as for fines or other fees which were imposed in order to account for these revenues in the proper accounting period.
GL Journals:
All agency generated general ledger (GL) journals require an Obligation Date. GL journal transactions are used to record accounting entries for redistribution, reclassification, or to make corrections which cannot be made in the originating submodule. Since GL journals apply to previously recorded transactions, the Obligation Date is the date of the original source transaction.
When entering a GL journal for multiple transactions, the Obligation Date is the latest of the associated original transactions.
Obligation Date for specific GL journal transactions are noted below:
Operating and Appropriated Transfers: These types of transactions are authorized in various State laws. In these cases, the Obligation Date is determined based on the governing requirements.
Revenue Reclassification: The Obligation Date is the last period for which the original revenues were collected, such as the end of the prior month.
Interagency Billing and Payments: In some situations, agencies are not using the billing and voucher submodules to generate interagency payments. Instead, a GL journal is generated to transfer the funds. The Obligation Date is based on the same conditions as the billing and voucher examples above, such as the date the goods or services were provided, or the contractually stipulated date.
Additional Information:
Obligation, Accounting and Budget Dates are required for various transactions in SFS. Information about these transactions should be reviewed and can be found in this Guide as follows:
Chapter VII, Section 2 - Miscellaneous Receipts / Accounts Receivable Receipts
Chapter VII, Section 3 – AP Adjustment Vouchers / Refund of Appropriation
Chapter XII, Section 5.G - Entering the Appropriate Obligation and Accounting Dates on Vouchers
Chapter XII, Section 6.C - Paying Prompt Contract Interest
Chapter XV, Section 11 – Journal / Revenue Transfers
Questions regarding the content of this chapter should be forwarded in writing for consideration to:
Bureau of Financial Reporting and Oil Spill Remediation
Office of the State Comptroller
110 State Street, 9th Floor
Albany, NY 12236
Email: [email protected]
Phone: (518) 474-3277
Guide to Financial Operations
REV. 02/19/2021