State of New Mexico

Manual of Model Accounting

Practices

Issued June 30, 2017

Effective July 1, 2017

Issued by
New Mexico Department of Finance and Administration –
Financial Control Division
 SHARE
Statewide
Human Resources
Accounting & Financial Management
Reporting System

System Administration,
Work Breakdown Structure,
and Policies
                                                              

Table of Contents
0.0 Introduction___________________________________________________________1
0.1 Financial Control Division and the Manual of Model Accounting Practices_________1
0.2 State Agencies and the Manual of Model Accounting Practices___________________1
0.3 Model Accounting Practices and Strategic, Operational, Reporting, and Compliance
Objectives_______________________________________________________________1
0.4 Strategies for Achieving Objectives___________________________________________2
0.5 Statewide Accounting System Network______________________________________13
0.6 Managing the Statewide Accounting System Network__________________________15
0.7 “Human Capital Management” Work Breakdown Structure____________________17
0.8 “Financials” Work Breakdown Structure____________________________________19
0.9 Internal Control Framework_______________________________________________21
0.9.1 Internal Control Environment____________________________________________________21
0.9.1.1 Rules 2.20.5 and 6 NMAC________________________________________________________21
0.9.1.2 NMSA 1978, §6-5______________________________________________________________21
0.9.2 Risk Assessment—Entity and Activity Level_________________________________________31
0.9.3 Control Activities_______________________________________________________________31
0.9.4 Information and Communication__________________________________________________38
0.9.5 Monitoring___________________________________________________________________38

1.0 Unit 1—System Administration__________________________________________39

1.1 Functional Organization Chart_____________________________________________39
1.2 Assignments and Responsibilities___________________________________________40
 Appendix______________________________________________________________________43
Appendix A__________________________________________________________________________44

2.0 Unit 2—Work Break Down Structure and Policies___________________________45

2.1 Commonly Used Abbreviations_____________________________________________45
2.2 Standards, Policies, Procedures, and Processing Flowcharts_____________________45
FINANCIALS__________________________________________________________________47
FIN 1 – Commitment Control (Budget)____________________________________________________48
FIN 1.1 Annual Operating Budget/Appropriations_____________________________________________49
FIN 1.2 Special, Supplemental, and Deficiency Appropriations___________________________________52
FIN 1.3 Appropriation Allotments__________________________________________________________54
FIN 1.4 Appropriations Schedule___________________________________________________________55
FIN 1.5 Changes to Established Allotments___________________________________________________56
FIN 1.6 Budget Adjustment Request (BAR)___________________________________________________57
CC-00a – Commitment Control (Budget) Overview______________________________________60
CC-00b – Commitment Control (Budget) Overview______________________________________61
CC-00a & b – Commitment Control (Budget) Overview Control Points_______________________62
CC-01 – Budget Journal Entry OPBUD (Operating & Capital Budgets)________________________63
CC-01 – Budget Journal Entry (OPBUD) Control Points____________________________________64
CC-02 – Budget Adjustment Request (BAR)____________________________________________65
CC-02 – Budget Adjustment Request (BAR) Control Points________________________________66
FIN 2 – Cash Management Function______________________________________________________67
FIN 2.1 Timely Depositing of Cash__________________________________________________________68
FIN 2.2 Proof of Deposit Documentation____________________________________________________70
FIN 2.3 Preparing and Documenting Cash Receipts____________________________________________71
FIN 2.4 Restrictive Endorsement of Checks___________________________________________________72
FIN 2.5 Timely Recording of Deposits in SHARE_______________________________________________73
FIN 2.6 Returns and Other Bank Debits/Adjustments___________________________________________74
FIN 2.7 ACH Reversals___________________________________________________________________75
FIN 2.8 Establishment of non-SGFIP Bank Accounts____________________________________________76
FIN 2.9 Authority to Issue Warrants________________________________________________________78
FIN 2.10 Obtaining Facsimile Signature from FCD______________________________________________79
FIN 2.11 Cancelling Warrants_____________________________________________________________80
FIN 2.12 Warrant Issuance/Redemption_____________________________________________________81
CM-00 Cash Management Function (STO) and Cash Control Bureau Function (FCD) (Overview
Notes)_____________________________________________________________82
CM-00 Cash Management and Cash Control Function Control Points________________________83
CM-01 Cash Management – Investment Reconciliation (Overview)_________________________84
CM-01 Cash Management – Investment Reconciliation (Overview) (Control Points)____________85
CM-01.1 Cash Management – Investment Pools (Overview Notes)__________________________86
CM-01.2 Cash Management – Recording Deposits and Bank Adjustments____________________87
CM-01.2 Cash Management – Recording Deposits and Bank Adjustments (Control Points)_______88
CM-02 Cash Management – Transaction Reconciliation (Overview)_________________________89
CM-02 Cash Management – Transaction Reconciliation (Overview) (Control Points)____________90
CM-03 Cash Management – Book to Bank Reconciliation_________________________________91
CM-03 Cash Management – Book to Bank Reconciliation (Control Points)____________________92
CM-04 Cash Management – QED to SHARE Recon Format (Agency 39401) (Notes)_____________93
CM-05 Cash Management – Non Grant Cash Deposits (Overview)__________________________94
 CM-05 Cash Management – Non Grant Cash Deposits (Control Points)______________________95
CM-06 Cash Management – Wire Transfers (Overview)___________________________________96
CM-06 Cash Management – Wire Transfers (Overview) (Control Points)_____________________97
CM-07 Cash Management – Return Item Processing_____________________________________98
CM-07 Cash Management – Return Item Processing (Control Points)________________________99
FIN 3 – Cash Management Function_____________________________________________________100
FIN 3.1 Interagency Transactions_________________________________________________________101
FIN 3.1a Intra-Fund and Inter-Agency Transactions___________________________________________105
FIN 3.2 Authorizing Transfers____________________________________________________________108
FIN 3.3 Operating Transfer Initiated by State Agencies________________________________________109
FIN 3.4 Operating Transfer Initiated by FCD_________________________________________________112
FIN 3.5 Journal Entry Documents_________________________________________________________113
FIN 3.6 Journal Entry Completion_________________________________________________________116
FIN 3.7 FCD Pre-Audit of the Journal Entry__________________________________________________119
FIN 3.8 General Accounting Procedures – Year End Closing_____________________________________121
GL-01 General Ledger – Operating Transfers__________________________________________125
GL-01 General Ledger – Operating Transfers (Control Points)_____________________________126
GL-02 General Ledger – Journal Entry________________________________________________127
GL-02 General Ledger – Journal Entry (Control Points)___________________________________128
GL-03 General Ledger – Year End Closing_____________________________________________129
GL-03 General Ledger – Year End Closing (Control Points)________________________________130
FIN 4 – Purchasing____________________________________________________________________131
FIN 4.1 Purchase Orders________________________________________________________________132
FIN 4.2 Payment of Prior Year Expenditures_________________________________________________133
FIN 4.3 Type of Purchase________________________________________________________________135
FIN 4.4 Encumbrances__________________________________________________________________137
FIN 4.5 Exemptions from Compliance with Encumbering Policies________________________________138
FIN 4.6 Purchase Order $5,000 or Less (Direct Purchase Order)_________________________________139
FIN 4.7 Purchase Order More Than $5,000 less than $20,000 for: Purchases Exempt from State
Procurement Code or State Purchasing Agent______________________________________140
FIN 4.8 Purchase Order for Requisition Greater Than $20,000 but Less Than $60,000 from State Purchasing
___________________________________________________________________________142
FIN 4.9 Purchase Order Encumbering Professional Service Contracts Greater Than $5,000 but Less Than
$50,000____________________________________________________________________144
FIN 4.10 Purchase Order Encumbering Professional Service Contracts Greater than $50,000__________146
FIN 4.11 Processing Procedures — Emergency Procurement____________________________________148
FIN 4.12 Sole Source Procurement________________________________________________________150
FIN 4.13 State Procurement Code Violations________________________________________________152
FIN 4.13.1 State Procurement Code Violations Training________________________________________154
FIN 4.13.2 Agency Certified Chief Procurement Officer________________________________________155
FIN 4.14 Purchases Encumbered Over $5,000 After the Fact____________________________________157
FIN 4.15 Vendor File (Known Vendor)______________________________________________________158
PO-01 Purchasing – Determining Origin Code (Overview) – EXC, EXE, CON, SOL, DPO__________159
PO-01 Purchasing – Determining Origin Code (Control Points)____________________________160
PO-02a Purchasing – Exempt from Procurement Code (NMSA 1978, §13-1-98) or Excluded from
Procurement through State Purchasing (NMSA 1978, §13-1-99)_______________161
PO-02b Purchasing – Exempt from Procurement Code (NMSA 1978, §13-1-98) or Excluded from
Procurement through State Purchasing (NMSA 1978, §13-1-99) Emergency
Purchases__________________________________________________________162
 PO-02a & b Purchasing – Exempt from Procurement Code (NMSA 1978, §13-1-98) or Excluded
from Procurement through State Purchasing (NMSA 1978, §13-1-99) Emergency
Purchases (Control Points)____________________________________________163
PO-03 Purchasing – Professional Service Contract______________________________________164
PO-03 Purchasing – Professional Service Contract (Control Points)_________________________165
PO-04 Purchasing – Professional Service Contract > $50,000______________________________166
PO-04 Purchasing – Professional Service Contract > $50,000 (Control Points)________________167
PO-05 Purchasing – Professional Service Contract < $50,000______________________________168
PO-05 Purchasing – Professional Service Contract < $50,000 (Control Points)________________169
PO-06 Purchasing – Sole Source or Federal General Service Agreements____________________170
PO-06 Purchasing – Sole Source or Federal General Service Agreements (Control Points)_______171
PO-07 Purchasing – Existing Contract or Price Agreement________________________________172
PO-07 Purchasing – Existing Contract or Price Agreement (Control Points)___________________173
PO-08 Purchasing – Purchase > $60k, Not Under Existing Contract or Price Agreement_________174
PO-08 Purchasing – Purchase > $60k, Not Under Existing Contract or Price Agreement (Control
Points)____________________________________________________________175
PO-09 Purchasing – Purchase < $60k, Not Under Existing Contract or Price Agreement_________176
PO-09 Purchasing – Purchase < $60k, Not Under Existing Contract or Price Agreement (Control
Points)____________________________________________________________177
PO-10 Purchasing – Directly Create Purchase Order – DPO (Bypass Requisition)______________178
PO-10 Purchasing – Directly Create Purchase Order – DPO (Bypass Requisition) (Control Points)_179
PO-11 Purchasing – Bidder Registration______________________________________________180
PO-11 Purchasing – Bidder Registration (Control Points)_________________________________181
FIN 5 – Payables_____________________________________________________________________182
FIN 5.1 Cash Disbursement Methods______________________________________________________183
FIN 5.2 Disbursement Requirements______________________________________________________184
FIN 5.3 Distribution of Warrants__________________________________________________________186
FIN 5.4 Warrant Cancellations____________________________________________________________187
FIN 5.5 Affidavit for Duplicate State Warrants_______________________________________________189
FIN 5.6 Affidavit for Duplicate State “A” Warrant_____________________________________________191
FIN 5.7 Processing Procedures – Affidavit for Duplicate State Vouchered Warrants__________________193
FIN 5.8 Processing Procedures – Altered or Forged Signature Affidavit for Duplicate State Warrant_____195
FIN 5.9 Employee Service Awards_________________________________________________________197
FIN 5.10 Disbursements in Advance_______________________________________________________198
FIN 5.11 Travel Reimbursement for Per Diem, Actual Expenses, and Mileage_______________________200
FIN 5.12 Travel Advances________________________________________________________________201
FIN 5.13 Payment Vouchers_____________________________________________________________202
FIN 5.14 Special Processing______________________________________________________________204
FIN 5.15 Policy Exemption_______________________________________________________________206
FIN 5.16 Establishing Petty Cash, Miscellaneous Change Funds, and Miscellaneous Special Accounts____207
FIN 5.17 Closing Petty Cash, Miscellaneous Change Funds, and Miscellaneous Special Accounts_______210
FIN 5.18 Updating Petty Cash, Miscellaneous Change Funds, and Miscellaneous Special Accounts______212
FIN 5.19 Requesting the Addition of a New SHARE Vendor_____________________________________214
FIN 5.20 Updating Vendor Information in SHARE_____________________________________________216
FIN 5.21 Using Vendor Codes in SHARE_____________________________________________________219
FIN 5.22 Warrant Cancellation___________________________________________________________220
FIN 5.23 Minor Purchases of Food, Refreshments, and Similar Consumable Purchases_______________227
AP-01 Accounts Payable – Accounts Payable (Overview)_________________________________229
AP-01 Accounts Payable – Accounts Payable (Overview) (Control Points)____________________230
AP-02 Accounts Payable – Vendor Creation (Overview)__________________________________231
AP-02 Accounts Payable – Vendor Creation (Control Points)______________________________232
 AP-03 Accounts Payable – Vendor Updates (Overview)__________________________________233
AP-03 Accounts Payable – Vendor Updates (Control Points)______________________________234
AP-04 Accounts Payable – Create Voucher Online______________________________________235
AP-04 Accounts Payable – Create Voucher Online (Control Points)_________________________236
AP-05 Accounts Payable – Voucher Documentation, Processing Approval___________________237
AP-05 Accounts Payable – Create Voucher Online (Control Points)_________________________238
AP-05.1 Accounts Payable – Voucher Documentation, Processing Approval__________________239
AP-05.1 Accounts Payable – Voucher Documentation, Processing Approval (Control Points)____240
AP-06 Accounts Payable – Travel Processing__________________________________________241
AP-06 Accounts Payable – Travel Processing (Control Points)_____________________________242
AP-07a Accounts Payable – Warrant Cancellation BY Year-end Closing Deadline______________243
AP-07b Accounts Payable – Warrant Cancellation AFTER Year-end Closing Deadline___________244
AP-07c Accounts Payable – Stop Payment on Warrant Cancellation________________________245
AP-07c Accounts Payable – Stop Payment on Warrant Cancellation (Control Points)___________246
FIN 6 – Asset Management____________________________________________________________247
FIN 6.1 Acquiring Capital Assets__________________________________________________________248
FIN 6.2 Asset Depreciation______________________________________________________________250
FIN 6.3 Asset Transfer__________________________________________________________________251
FIN 6.4 Recording and Reporting Capital Assets______________________________________________252
FIN 6.5 Disposing of Capital Assets________________________________________________________254
FIN 6.6 Annual Physical Inventory of Capital Assets___________________________________________258
FIN 6.7 Safeguarding Capital Assets_______________________________________________________260
AM-01 Asset Addition____________________________________________________________262
AM-01 Asset Addition (Control Points)_______________________________________________263
AM-02 Asset Depreciation_________________________________________________________264
AM-02 Asset Depreciation (Control Points)___________________________________________265
AM-03 Asset Transfer____________________________________________________________266
AM-03 Asset Transfer (Control Points)_______________________________________________267
AM-04 Asset Disposal____________________________________________________________268
AM-04 Asset Disposal (Control Points)_______________________________________________269
AM-05 Asset Physical Inventory____________________________________________________270
AM-05 Asset Physical Inventory (Control Points)_______________________________________271
FIN 7 – Deal Management_____________________________________________________________272
FIN 7.1 Authorizing Investments__________________________________________________________273
FIN 7.2 Accounting for Investments_______________________________________________________275
FIN 7.3 Authorization of Long-Term Debt___________________________________________________276
FIN 7.4 Debt Service Fund_______________________________________________________________278
FIN 7.5 Timely Servicing of Long-Term Debt_________________________________________________280
DM-01 Deal Management – Investment Management__________________________________281
DM-01 Deal Management – Investment Management (Control Points)_____________________282
DM-02 Deal Management – Long Term Debt__________________________________________283
DM-02.1 Deal Management – Long Term Debt________________________________________284
DM-02 Deal Management – Long Term Debt (Control Points)_____________________________285
FIN 8 – Project Costing________________________________________________________________286
FIN 8.1 Project Costing_________________________________________________________________287
PC-01 Project Costing (Overview)___________________________________________________289
PC-01 Project Costing (Overview) (Control Points)______________________________________290
FIN 9 – Grants Management___________________________________________________________291
 FIN 9.1 Grants Management Overview_____________________________________________________292
FIN 9.2 Grants Management- Funding Criteria and Oversight Requirements_______________________298
GM-01 Grants Management (Overview)______________________________________________304
GM-01 Grants Management (Overview) (Control Points)________________________________305
GM-02 Grants Management – Customer Set-up & Maintenance__________________________306
GM-02 Grants Management – Customer Set-up & Maintenance (Control Points)_____________307
GM-03 Grants Management – Project Initiation________________________________________308
GM-03 Grants Management – Project Initiation (Control Points)__________________________309
GM-04 Grants Management – Cost Accumulation & Integration (Overview)_________________310
GM-04 Grants Management – Cost Accumulation & Integration (Control Points)_____________311
GM-05 Grants Management – Billing and Draw Creation_________________________________312
GM-05 Grants Management – Billing and Draw Creation (Control Points)___________________313
GM-06 Grants Management – Create Accounts Receivable (Overview)_____________________314
GM-06 Grants Management – Create Accounts Receivable (Overview) (Control Points)________315
GM-07 Grants Management – Accounts Receivable Research (Overview)___________________316
GM-07 Grants Management – Accounts Receivable Research (Overview) (Control Overviews)___317
GM-08 Grants Management – Grant Payments (Deferred Revenue) – (Overview)_____________318
GM-08 Grants Management – Grant Payments (Deferred Revenue) – (Overview) (Control Points)
__________________________________________________________________319
GM-09 Grants Management – Allocations (Overview)___________________________________320
GM-09 Grants Management – Allocations (Overview) (Control Points)______________________321
FIN 10 – Inventory____________________________________________________________________322
FIN 10.1 Recording Inventory____________________________________________________________323
FIN 10.2 Financial Reporting_____________________________________________________________327
FIN 10.3 Inventory Valuation_____________________________________________________________329
FIN 10.4 Tracking Significant Inventory_____________________________________________________330
FIN 10.5 Safeguarding Inventory__________________________________________________________331
IN-01 Inventory (Overview)________________________________________________________332
IN-02 Inventory – Receiving and Putting Away Stock____________________________________333
IN-02 Inventory – Receiving and Putting Away Stock (Control Points)_______________________334
IN-03 Inventory – Issue Stock______________________________________________________335
IN-03 Inventory – Issue Stock (Control Points)_________________________________________336
IN-04 Inventory – Creation of a New Item____________________________________________337
IN-04 Inventory – Creation of a New Item (Control Points)_______________________________338
IN-05 Inventory – Bin to Bin Transfer________________________________________________339
IN-05 Inventory – Bin to Bin Transfer (Control Points)___________________________________340
IN-06 Inventory – Inter Unit Transfer________________________________________________341
IN-06 Inventory – Inter Unit Transfer (Control Points)___________________________________342
IN-07 Inventory – Quantity Adjustment______________________________________________343
IN-07 Inventory – Quantity Adjustment (Control Points)_________________________________344
IN-08 Inventory – Average Cost Adjustment___________________________________________345
IN-08 Inventory – Average Cost Adjustment (Control Points)_____________________________346
IN-09 Inventory – Return Materials__________________________________________________347
IN-09 Inventory – Return Materials (Control Points)____________________________________348
IN-10 Inventory – Counts__________________________________________________________349
IN-10 Inventory – Counts (Control Points)____________________________________________350
FIN 11 – Receivables__________________________________________________________________351
FIN 11.1 Managing Accounts Receivable____________________________________________________352
FIN 11.2 Revenue Susceptible to Accrual___________________________________________________354
FIN 11.3 Revenue Classification___________________________________________________________356
 FIN 11.4 Legal Basis for Revenue__________________________________________________________358
FIN 11.5 Deferred Revenue______________________________________________________________359
FIN 11.6 Revenue Source Codes__________________________________________________________360
FIN 11.7 Use of Deposit Slip or Journal Entry to Recognize Revenue______________________________361
AR-01 Accounts Receivable – Grant Cash Deposits (Overview)____________________________363
AR-01 Accounts Receivable – Grant Cash Deposits (Overview) (Control Points)_______________364
FIN 12 – Billing (Federal Grants)_________________________________________________________365
FIN 12.1 Billing and Draw Creation________________________________________________________366
BI-01 Billing – Non-DOT Billing and Draw Creation______________________________________368
BI-01 Billing – Non-DOT Billing and Draw Creation (Control Points)_________________________369
FIN 13 – External Systems_____________________________________________________________370
FIN 13.1 External Systems_______________________________________________________________371
FIN 13.2 SHARE Interface Systems________________________________________________________372
FIN 13.3 State Agencies and Related Subsystems_____________________________________________373
EX-01 Payment Load & Related General Ledger Interfaces_______________________________374
EX-01 Payment Load & Related General Ledger Interfaces (Control Points)__________________375
FIN 15 – Time and Labor_______________________________________________________________376
FIN 16 – General Accounting Practices___________________________________________________377
FIN 16.1 Error Detection and Correction____________________________________________________378
FIN 16.2 Verifying SHARE Reports_________________________________________________________379
FIN 16.3 Document Numbering Conventions________________________________________________380
FIN 16.4 Unique Document Numbers______________________________________________________381
FIN 16.5 Documents Rejected Prior to SHARE Input___________________________________________382
FIN 16.6 Documents Rejected While on Hold in SHARE________________________________________383
FIN 16.7 Authorized Corrections__________________________________________________________384
FIN 16.8 Document Numbering Procedures_________________________________________________385
FIN 16.9 Responsibility for Accounting Function – Chief Financial Officer Delegation Requirements_____386
FIN 16.10 Delegating Chief Financial Officer Duties___________________________________________390
FIN 16.11 Agency Noncompliance with DFA Requirements_____________________________________393
FIN 17 – General Accounting Reporting Requirements______________________________________397
FIN 17.1 Compensated Absence Reporting__________________________________________________398
FIN 17.2 Transfers In and Transfers Out Reporting____________________________________________399
FIN 17.3 Presentation of Land Grant Permanent Fund_________________________________________400
HUMAN CAPITAL MANAGEMENT____________________________________________402
HR 1 – Payroll_______________________________________________________________________403
HR 1.1 Employee Payroll Data____________________________________________________________404
HR 1.2 Payroll Processing_______________________________________________________________406
HR 1.3 Tax Reporting Process____________________________________________________________408
HR 1.4 W-2 Form (Year-End Process)______________________________________________________409
PY-01 Payroll Employee Pay Data___________________________________________________411
PY-01 Payroll Employee Pay Data (Control Points)______________________________________412
PY-02 Payroll Processing__________________________________________________________413
PY-02.1 Payroll Processing_________________________________________________________414
PY-02.2 Submission of Positive Pay File to the Fiscal Agent Bank___________________________415
PY-02 Payroll Processing (Control Points)_____________________________________________416
PY-03 Tax Reporting Process_______________________________________________________417
 PY-03 Tax Reporting Process (Control Points)__________________________________________418
PY-04 W-2 Form (Year-end Process)_________________________________________________419
PY-04 W-2 Form (Year-end Process) (Control Points)____________________________________420
PY-05 Control Table Maintenance___________________________________________________421
PY-05 Control Table Maintenance (Control Points)_____________________________________422
HR 2 – Benefits______________________________________________________________________423
HR 2.1 Control Table Maintenance________________________________________________________424
HR 2.2 Benefits_______________________________________________________________________426
HR 2.3 Open Enrollment Process__________________________________________________________429
HR 2.4 Administration Process___________________________________________________________431
HR 2.5 Leave Accrual Management________________________________________________________433
HR 2.6 Leave Donation_________________________________________________________________435
HR 2.7 COBRA Administration Process_____________________________________________________437
HR 2.8 COBRA Billing Administration______________________________________________________439
HR 2.9 Taxable Use of State Owned Vehicles for Commuting Purposes___________________________441
BN-01 Benefits – Control Table Maintenance__________________________________________443
BN-01 Benefits – Control Table Maintenance (Control Points)_____________________________444
BN-02 Benefits – Open Enrollment Process___________________________________________445
BN-02 Benefits – Open Enrollment Process (Control Points)______________________________446
BN-03 Benefits – Administration Process (Overview)____________________________________447
BN-03 Benefits – Administration Process (Overview) (Control Points)_______________________448
BN-04 Benefits – Leave Accrual Management_________________________________________449
BN-04 Benefits – Leave Accrual Management (Control Points)____________________________450
BN-05 Benefits – COBRA Administration Process (Terminated Employees)___________________451
BN-05 Benefits – COBRA Administration Process (Terminated Employees) (Control Points)_____452
BN-06 Benefits – COBRA Billing Administration________________________________________453
BN-06 Benefits – COBRA Billing Administration (Control Points)___________________________454
HR 3 – Recruitment___________________________________________________________________455
HR 3.1 Recruit Workforce – Classified______________________________________________________456
HR 3.2 Recruit Workforce – Nonclassified___________________________________________________458
RC-01 Recruit Workforce – Classified________________________________________________459
RC-01 Recruit Workforce – Classified (Control Points)___________________________________460
RC-02 Recruit Workforce – Non-Classified____________________________________________461
RC-02 Recruit Workforce – Non-Classified (Control Points)_______________________________462
HR 4 – Time and Labor________________________________________________________________463
HR 4.1 Time Processing/Time Approval Process______________________________________________464
HR 4.2 Table Maintenance______________________________________________________________466
TL-01 Time & Labor – Time Processing_______________________________________________468
TL-01 Time & Labor – Time Processing (Control Points)__________________________________469
TL-02 Time & Labor – Table Maintenance_____________________________________________470
TL-02 Time & Labor – Table Maintenance (Control Points)_______________________________471
TL-03 Time & Labor – Time Approval Process__________________________________________472
TL-03 Time & Labor – Time Approval Process (Control Points)_____________________________473
HR 5 – Human Resources______________________________________________________________474
HR 5.1 Position Creation/Change Process___________________________________________________475
HR 5.2 Hiring Process___________________________________________________________________478
HR 5.3 Changes in Salary________________________________________________________________481
HR 5.4 Termination____________________________________________________________________484
 HR-01 Organizational Development Create Budget Position______________________________487
HR-01 Organizational Development Create Budget Position (Control Points)_________________488
HR-02a Workforce Administration Hire an Employee – Classified Agency____________________489
HR-02a Workforce Administration Hire an Employee – Classified Agency (Control Points)______490
HR-02b Workforce Administration Hire an Employee – Non-Classified Agency________________491
HR-02b Workforce Administration Hire an Employee – Non-Classified Agency (Control Points)__492
HR-03 Organizational Development Employee Data Maintenance_________________________493
HR-03 Organizational Development Employee Data Maintenance (Control Points)____________494
HR-04 Workforce Administration Pay Rate Changes – Non-Automated_____________________495
HR-04 Workforce Administration Pay Rate Changes – Non-Automated (Control Points)________496
HR-05 Workforce Administration Position Changes_____________________________________497
HR-05 Workforce Administration Position Changes (Control Points)________________________498
HR-06 Workforce Administration Review & Evaluation__________________________________499
HR-06 Workforce Administration Review & Evaluation (Control Points)_____________________500
HR-07 Workforce Administration Termination_________________________________________501
HR-07 Workforce Administration Termination (Control Points)____________________________502
HR-08 Organizational Development Table Maintenance_________________________________503
HR-08 Organizational Development Table Maintenance (Control Points)____________________504
HR 6 – Commitment Accounting________________________________________________________505
HR 6.1 Commitment Accounting__________________________________________________________506
CA-01 Commitment Accounting____________________________________________________508
CA-01 Commitment Accounting (Control Points)_______________________________________509
HR 7 – Project Costing________________________________________________________________510
HR 7.1 Project Costing__________________________________________________________________511
HR PC-01 Project Costing (Overview)________________________________________________513
HR PC-01 Project Costing (Overview) (Control Points)___________________________________514
HR 8 – Accounts Payable______________________________________________________________515
HR 8.1 Accounts Payable________________________________________________________________516
HR AP-09 Accounts Payable________________________________________________________518
HR AP-09 Accounts Payable (Control Points)__________________________________________519
HR 9 – General Ledger________________________________________________________________520
HR 9.1 Payroll to General Ledger Process___________________________________________________521
HR GL-01 Payroll to General Ledger_________________________________________________523
HR GL-01 Payroll to General Ledger (Control Points)____________________________________524
System Administration, Work Breakdown Structure, and Policies_____________________
0.0 Introduction

0.0 Introduction
0.1 Financial Control Division and the Manual of Model Accounting
Practices

The Financial Control Division (FCD) of the New Mexico Department

of Finance and Administration was created by NMSA 1978, §6-5-1 as
amended. The responsibilities enumerated in NMSA 1978, §6-5-1 through
§6-5-6, constitute the strategic, operational, reporting, and compliance
objectives of FCD and, collectively, its mission of effectively accounting for
and controlling the use of State resources.
The above referenced statutes require FCD to maintain a central system
of state accounts and to devise, formulate, approve, control, and set standards
for the accounting method and procedures of all state agencies of the State of
New Mexico.
In addition, the statutes require FCD to prescribe procedures, policies,
and processing documents for use by state agencies in connection with fiscal
matters. To this end, the statute requires FCD to issue a manual of model
accounting practices that includes the standards for the accounting methods
and procedures of all state agencies. Unit 1—System Administration and
Unit 2—Work Breakdown Structure and Policies — constitute the manual of
model accounting practices required by statute.   

0.2 State Agencies and the Manual of Model Accounting Practices

NMSA 1978, §6-5-1 through §6-5-6, establish requirements for both

FCD and state. The statutes require state agencies to implement internal
controls designed to prevent accounting errors and violations of state and
federal law and rules related to financial matters. In addition, it requires state
agencies to implement controls to prevent the submission of processing
documents to FCD that are in error or that are for a purpose not authorized by
law.
The statutes also require state agencies to determine the authority for all
proposed expenditures and to encumber the appropriate funds. In addition,
the statutes require state agencies to determine that any disbursement of
funds does not exceed the appropriation made to the agency, its periodic
allotment, or the unencumbered funds at its disposal.

0.3 Model Accounting Practices and Strategic, Operational, Reporting,

and Compliance Objectives

Given the above, FCD, by rule and by the issuance of its Manual of
Model Accounting Practices, has established for each agency strategic,
operational, reporting, and compliance objectives related to the agency’s

1
December 15, 2022
System Administration, Work Breakdown Structure, and Policies_____________________
0.0 Introduction
financial operations. Figure 2, which appears at the end of this section lists
those objectives and cross-references them to statutes and rules.

0.4 Strategies for Achieving Objectives

The State of New Mexico has adopted three strategies for achieving the
objectives referenced above.

Management Team
The State has established a management team to achieve the objectives.
This team consists of the state agencies’ chief financial officers (CFO). Rule
2.20.5 NMAC, an administrative rule issued by FCD, establishes the
responsibilities of a CFO. Those responsibilities parallel the state agency
strategic, operational, and reporting and compliance objectives established by
statute and by Rule 2.20.6 NMAC.

Adoption of Best Practices

The State has adopted “best practices” as its model accounting
practices. This included: 1) adopting generally accepted accounting
principles as its budgetary basis of accounting and 2) adopting “best
practices” for its financial operations. Best practices are documented in Unit
2 of this manual.
As a model of best practices and as a tool to implement them, the State
has implemented an enterprise resource planning system (ERP). The
decision was based on the premise that the processes within an ERP system
are based on best industry practices. ERP systems are used to plan the use of
enterprise-wide resources. As such, they integrate the data and processes of
an organization into a unified system.
The State of New Mexico’s ERP system is referred to as SHARE
(Statewide Human Resources, Accounting, and Management Reporting
System). The system consists of a number of integrated modules including
general ledger, payroll, human capital management, and fixed assets.
SHARE incorporates data from a number of external systems with their
own databases. These systems are used for atypical functions such as
investment accounting, tax revenue accounting, child support enforcement,
etc. Figure 1 includes a list of those subsidiary systems. The
interrelationship between SHARE’s integrated modules and its interfaced
subsidiary systems is illustrated in Sections 0.7 and 0.8. Once the State of
New Mexico Cash Remediation II project is completed this figure will be
updated.

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0.0 Introduction

Figure 1
SHARE’s External Systems

External System Administering State Agency

Jury+ Administrative Office of the Courts
FACTS Children, Youth, and Families
EPICS Department
Aware Commission for the Blind
Browser Educational Retirement Board
Local Government Subsidiary System Department of Finance and
(Grants) Administration
License Refunds Department of Game and Fish
RMIS
General Services Department
ERISA
Child Support Enforcement Human Services Department
Medicaid Human Services Department
LIHEAP Human Services Department
EBT-JP Morgan Human Services Department
Legacy and Aspen Systems Human Services Department
UFACTS Department of Workforce Solutions
Public Employees Retirement
RIO
Association
Gentax Taxation and Revenue Department
Tapestry Taxation and Revenue Department
Wager Taxation and Revenue Department
DDS
Division of Vocational Rehabilitation
Aware
APSS (Adult Protective Services System) Aging and Long Term Services
State Treasurer’s Office and the State
QED
Investment Council

Institutionalizing Objectives
The third strategy the State has adopted for achieving its objectives is
institutionalizing strategic, operational, reporting, and compliance objectives
by incorporating them into statutes and rules.
Figure 2 illustrates the interdependency of the three strategies just
discussed.

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0.0 Introduction

Figure 2
FCD and State Agencies’ Mission and Objectives

Mission: To Effectively Account for and Control the Use of Resources Used by the State of New Mexico to Carry Out Its Mission as a
State Government.

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0.0 Introduction

Risk is Non- Responsibility

compliance with
Type of Objective the Following DFA/ Strategy for Achieving
Objective Statutes, Law, and Agency Objective
(Risk Is Not Achieving Goal) FCD
Rules. (Avoiding Risk)
Maintain a central system of state accounts and §6-5-2(A) & (B)
devise, formulate, approve, control, and set
Implement SHARE system, utilizing
standards for the accounting methods and
a central system of accounts.
procedures of all state agencies of the State of §6-5-2.1(A) & (F)
● Update State of New Mexico Model
New Mexico, and document such in a Manual of
Accounting Practices to reflect
Model Accounting Practices. Also, prescribe,
system implementation.
develop, operate, and maintain a uniform Rules 2.20.5 and 6
statewide accounting system network. NMAC

Managerial review to assure

Comply with Model Accounting Practices. §6-5-2(B) ●
compliance with MAPs.
Strategic
Implement internal controls designed to prevent
Implement SHARE system with
accounting errors and violation of state and
appropriate system configuration to
federal law and rules related to financial matters.
assure an adequate segregation of
In addition, implement controls to prevent the §6-5-2(C) ●
duties and to require appropriate
submission of processing documents to the
levels of approvals. Comply with
financial control division that contain errors or
MAPs.
that are for a purpose not authorized by law.

§6-5-2-1.Q & Periodic review of processes to

Implement continuous process improvement. Rule 2.20.5.8.C(1) ● ● identify opportunities for
NMAC improvement.

Risk is Non- Responsibility

compliance with
Type of Goal Goals the Following DFA/ Strategy for Achieving Goal
Statutes, Law, and Agency (Avoiding Risk)
(Risk Is Not Achieving Goal) FCD
Rules.

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0.0 Introduction

Risk is Non- Responsibility

compliance with
Type of Objective the Following DFA/ Strategy for Achieving
Agency
Objective Statutes, Law, and FCD Objective
(Risk Is Not Achieving Goal)
Rules. (Avoiding Risk)
Devise, formulate, approve, control, and set
§6-5-2(A) & (B)
standards for the accounting methods and
Establish standards by
procedures of all state agencies of the State of
● administrative rule. Issue Manual of
New Mexico, and document those standard,
Rules 2.20.5 and 6 Model Accounting Practices.
methods, and procedures in a Manual of Model
NMAC
Accounting Practices.

Implement a Statewide Human

Resource, Accounting and
Management REporting System
Prescribe, develop, operate, and maintain a (SHARE), based on generally
§6-5-2.1 (A) & (F) ●
uniform statewide accounting system network. accepted accounting principles and
enterprise resource planning (ERP)
“best practices”. See Unit 2 for
documentation of best practices.
Operational
Establish by law that the
administrative head of each agency
is responsible for ensuring that
§6-5-2(B) Model Accounting Practices are
followed. Establish by rule that the
Establish function and responsibilities of chief
● administrative head of each agency
financial officers.
Rules 2.20.5 and 6, is the Chief Financial Officer (CFO)
NMAC of that agency. Allow by rule the
administrative head to delegate the
duties of CFO to a qualified
individual.

Establish generally accepted accounting Annual General Support annually the enactment of
●
principles as budgetary basis of accounting. Appropriation Act legislation.

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0.0 Introduction

Risk is Non- Responsibility

compliance with
Type of Objective the Following DFA/ Strategy for Achieving
Agency
Objective Statutes, Law, and FCD Objective
(Risk Is Not Achieving Goal)
Rules. (Avoiding Risk)
Maintain subsidiary systems and interface with Rule 2.20.5.8.C(7)
● To be determined by each agency.
SHARE. NMAC

Collect and maintain the necessary information

Requiring by rule agencies to
from the state departments and agencies to
§6-5-2-1.B ● process transactions through
produce ledgers, journals, registers, and other
SHARE.
supporting records and analysis.

Implement a central imaging

§6-5-2-1.C & system. Require by rule and policy
Maintain information that adequately supports
Rule 2.20.5.8.C(7) ● that agencies provide or maintain
all entries in the state general ledger.
NMAC documentation supporting
Operational transactions

Prescribe and approve the installation of any

changes in the statewide accounting system Centralize change control. All
network as necessary to secure and maintain changes to SHARE are to be
§6-5-2-1(G) ●
internal control and facilitate the recording of approved by the Financial Control
accounting data in order to prepare reliable and Division Support Unit.
meaningful statements and reports.

Assign operations to Central Payroll

Bureau of the Financial Control
Operate a central payroll system. §6-5-2-1(I) ●
Division. See Unit 2 for
documentation of best practices.

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Risk is Non- Responsibility

compliance with
Type of Objective the Following DFA/ Strategy for Achieving
Agency
Objective Statutes, Law, and FCD Objective
(Risk Is Not Achieving Goal)
Rules. (Avoiding Risk)
Implement formal reconciliation
Perform monthly reconciliations with the §6-5-2-1(J) process using SHARE treasury
balances and accounts kept by the state management function. Issue rule.
Rules 2.20.5 & 6 ●
treasurer and adopt and promulgate rules Perform Control Activity F under
regarding reconciliation for state agencies. NMAC Section 0.9 Internal Control
Environment.

Prescribe and revise procedures, techniques and Implement formal processing and
format for electronic data transmission to §6-5-2-1(K) reconciliation procedures to assure
improve the flow of data from state agencies. ● accurate data transmission.

Promulgate rules relating to the acceptance of

Draft procedures and present to
credit, charge, and debit cards for the payment
§6-5-2-1(M) ● legislative authorities to obtain
of fees, taxes, and other charges assessed by
Operational state agencies.
approval to issue rules.

Store and maintain records electronically. §6-5-2-1(N) ● Operate imaging system.

Identify personnel to draft

Establish with the attorney general’s approval,
§6-5-2-1(O) ● procedures and present to the
a procedure for electronic signatures.
Attorney General for approval.

Interview users and update the

Make improvements in the state’s model
§6-5-2-1(Q) ● MAPS as needed. Review for
accounting practices, systems, and procedures.
adequacy of controls.

Assist state agencies in resolving financial Maintain Financial Control Division

§6-5-2-1(R) ●
questions or problems. Help Desk

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Risk is Non- Responsibility

compliance with
Type of Objective the Following DFA/ Strategy for Achieving
Agency
Objective Statutes, Law, and FCD Objective
(Risk Is Not Achieving Goal)
Rules. (Avoiding Risk)
Have access to and authority to examine books, §6-5-2-1(S)
accounts, reports, vouchers, correspondence Issue rules to grant the required
Rules 2.20.5 and 6, ●
files and other records, bank accounts, money access to appropriate personnel.
and other property of a state agency. NMAC

A well-functioning internal control structure Document and review the control

Rule 2.20.5.8.C(1)
shall exist within the state agency and ● points within the system to assure
NMAC
functioning properly. adequacy.

All transactions shall be recorded daily in

SHARE (Statewide, Human Resources, Issue rule requiring that all
Rule 2.20.5.8.C(2)
Accounting, and Financial Management ● transactions are properly approved
NMAC
Reporting System), and approved by the and processed daily.
agencies management.
Operational
All subsidiary systems shall record transaction
timely, completely, and accurately, and the
Rule 2.20.5.8.C(7) Specific strategy to be determined
agency shall reconcile the subsidiary systems’ ●
NMAC by each agency.
transactions to the corresponding SHARE
general ledger accounts daily.

All payments to vendors shall be accurate and

timely and be for services already rendered or
Rule 2.20.5.8.C(8) Specific strategy to be determined
goods received and accepted by the state ●
NMAC by each agency.
agency as complying with the contract or
purchase order.

The state agency’s general ledger cash account Rule 2.20.5.8.C(4) Specific strategy to be determined
in SHARE and all other accounts shall be ●
NMAC by each agency.
verified daily.

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Risk is Non- Responsibility

compliance with
Type of Objective the Following DFA/ Strategy for Achieving
Agency
Objective Statutes, Law, and FCD Objective
(Risk Is Not Achieving Goal)
Rules. (Avoiding Risk)
Determine the authority for all proposed
Central pre-audit of transactions at
expenditures and encumber the appropriate §6-5-3 ● ●
the agency and FCD levels.
funds.

Operational Determine that any disbursement of funds does

not exceed the appropriation made to an
Central pre-audit of transactions at
agency, periodic allotment made to the agency, §6-5-6 ● ●
the agency and FCD levels.
or the unencumbered funds at the agency’s
disposal.

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0.0 Introduction

Responsibility
Statutory and
Type of Goal Description DFA/ Strategy for Achieving Goal
Rule Reference Agency
FCD

Require by rule centralized

Conduct all central accounting and fiscal processing of all transactions.
§6-5-2-1(E)
reporting for the state as a whole and produce Centralize pre-audit of transactions
interim statewide financial reports and the ● at Financial Control Division level.
state’s comprehensive annual financial Perform Control Activity C under
statements. Section 0.9 Internal Control
Environment.

Issue standard chartfields and

Prescribe the uniform classification of accounts
§6-5-2-1(H) ● account value descriptions. See
to be used by state agencies.
Appendix A: SHARE Chartfields.

Maintain accounts and information as Implement SHARE system as the

necessary to show the sources of state revenues §6-5-2-1(P) system of record for financial
Reporting and the purpose for which expenditures are ● records. Perform Control Activities
made and provide proper accounting control to B, C, D, E, and F under Section 0.9
protect state finances. Internal Control Environment.

Establish the FCD’s Statewide

Consult with the State Auditor to promote Financial Reporting &
§6-5-2-1(T) ●
better financial statement reporting. Accountability Office as liaison with
State Auditor.

Pre-audit by agencies to assure that

transactions are appropriately
All transactions shall be properly classified in Rule 2.20.5.8.C(3)
● classified. Perform control Activity
SHARE. NMAC
B under Section 0.9 Internal Control
Environment.

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0.0 Introduction

Responsibility
Statutory and
Type of Goal Description DFA/ Strategy for Achieving Goal
Rule Reference Agency
FCD

Require by rule the timely posting of

All information requested by the Division must
transactions. Establish and adhere
be provided to the Division timely and
Rule 2.20.5.8.C(9) to formal closing schedules to assure
accurately, and in compliance with the ●
NMAC timely reporting. Perform Control
Division’s current policies and procedures,
Activity C under Section 0.9
including, but not limited to transaction data.
Internal Control Environment.

Establish and adhere to formal

All reporting of financial information to the
Reporting state agency’s management and to oversight Rule 2.20.5.8.C(10) closing schedules to assure timely
● ● reporting. Perform Control Activity
agencies and entities must be timely, complete, NMAC B, C, D, and E under Section 0.9
and accurate.
Internal Control Environment.

The audit of the state agency’s financial

statements shall be completed by the deadline Rule 2.20.5.8.C(11) Establish by rule the requirement for
●
established by the State Auditor and the audit NMAC timely audit.
report shall include an unqualified opinion.

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0.0 Introduction

Responsibility
Statutory and DFA/
Type of Goal Description Strategy for Achieving Goal
Rule Reference Agency
FCD

Budget status reporting. Monitoring

by DFA’s State Budget Division,
Verify and control state agency compliance
§6-5-2-1(D) ● Agency Budget Personnel, CFO’s,
with allotments.
and FCD’s Financial Management
Section.

Monitor reversion of unexpended general fund

§6-5-2-1(L) ● Budget status reporting.
balances by September 30 of each year.
Compliance Pre- and Post-Audit of transactions
All transaction shall comply with federal and Rule 2.20.5.8.C(5) by agency staff and the Pre/Post
● ●
state law. NMAC Audit Bureau of the Financial
Control Division.

All expenditures shall be for a public benefit or Pre- and Post-Audit of transactions
purpose, be necessary, and be consistent with Rule 2.20.5.8.C(6) by agency staff and the Pre/Post
● ●
the related appropriation (expenditure authority NMAC Audit Bureau of the Financial
from the legislature). Control Division.

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0.0 Introduction

0.5 Statewide Accounting System Network

NMSA 1978, §6-5-2.1.F, as amended, requires FCD to prescribe,

develop, operate, and maintain a uniform statewide accounting system
network. Figure 3 is a diagram of that Network.
The Network is a business process, the purpose of which is to
effectively account for and control the use of resources. The Network is
based upon strategic, operational, compliance, and reporting objectives, all of
which are mandated by law, statute, or rule. Figure 2 illustrates the
correlation between the Network’s objectives and the mandates.
The Network is also based upon the principle of “predictable
processes”. Under that principle, objectives are achieved by processes that
predictably produce desired results. As illustrated in Figure 3, the Network
produces predictable results by:
 Defining objectives.
 Defining processes to achieve those objectives.
 Implementing the processes.
 Managing/controlling the processes.
 Providing resources to the processes.
 Executing the processes.
 Continually improving the processes.
The Network is made up of a number of components. The major
components of the Network are referenced to the applicable sections of this
manual.

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0.0 Introduction

Figure 3
 Statewide Accounting System Network

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0.0 Introduction

0.6 Managing the Statewide Accounting System Network

The State Controller and the agencies’ chief financial officers manage
the Statewide Accounting System Network. Their primary responsibility is
achieving the objectives listed in Figure 2 by designing, implementing,
maintaining, and controlling processes within the Network. Figure 3
illustrates the role that processes take in the Network and includes a cross
reference to Unit 2 of this manual, which includes diagrams illustrating
individual processes and control points. Together, the processes and control
points represent “best practices”.
Controlling a process requires the Network manager to manage
resources both under his or her supervision, and under the supervision of
other managers. Accordingly, the Network manager must play two
management roles: operational and executive.
As an operational manger, the Network manager is responsible for
directly supervising tasks and ensuring results, while also ensuring that all
resources being expended on a process are making a worthwhile
contribution. On the other hand, as an executive manager, the Network
manager is responsible for ensuring that process resources not under his or
her supervision are contributing to success of the process. This requires two
different management approaches.
The dual role of the Network manager is best illustrated by an example:
As an operational manager, the CFO of an agency directly supervises three
accounts payable positions. The positions pre-audit invoices, match them to
receiving reports, and prepare payment vouchers. The CFO verifies data
entry and approves payment.
In addition, as an executive manager, the CFO must ensure that the
program staff, which is staff she does not supervise, properly receives the
goods or services and forwards, to her accounts payable staff, the receiving
reports on a timely basis. She does this by:
 Issuing instructions that include deadlines,
 Providing training to new program staff,
 Working with program managers to include in employees’
performance appraisals the tasks of properly receiving goods
and services and forwarding receiving reports on a timely
basis, and
 By reporting in writing, to program managers, the failure of
program staff to perform their accounts payable tasks.
Figure 4 is a diagram illustrating the dual role of a Network manager. It
also illustrates key responsibilities of the manager including development of
human resources, establishing values and objectives, knowing what results
are expected, and obtaining results.

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0.0 Introduction

Figure 4
Dual Role of a Network Manager

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0.0 Introduction

0.7 “Human Capital Management” Work Breakdown Structure

SHARE is a key component and tool within the Statewide Accounting

System Network, (see Figure 3).
Figure 5 illustrates the SHARE Human Capital Work Breakdown
Structure Workflow (inputs, tasks, and outputs). The subprocesses
comprising the workflows’ detail tasks are illustrated in Figure 6.
Network managers must use the information in Figures 2, 5, and 6 to
perform, at least quarterly, a risk assessment and to develop strategies to
avoid risk.
The information in Figures 2, 5, and 6 is generic in nature, and is,
therefore, all-inclusive. Accordingly, to perform a risk assessment, Network
managers must modify the information to reflect their agencies’ individual
circumstances.

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0.0 Introduction

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0.0 Introduction

SHARE APPLICATION TOOLS

Significant Transaction Type or Activity Used to Recognize, Calculate, Record,
Summarize, and Report

HR CA-H/R Commitment Accounting

Time Collection/Pay Employee
Benefits (Including COBRA)
Employee Data Maintenance

Employee Pay Adjustments

Human Capital Management

HR- Human Resources

Review and Evaluation
Managerial Reports

Create/Budget Position

AP-Accounts Payable

GL- General Ledger

TL-Time and Labor

Manage Position

RC-Recruitment
BN-Benefits
Termination

PY-Payroll
Process

Recruit

Hire
A Position (description and number) ● ● ● ●
B Job Code (Class) ● ● ● ● ●
C Pay Plan ● ● ● ● ●
D Pay Grade ● ● ●
E Position Type ● ● ● ● ● ●
F FLSA Status ● ● ●
G Supervisor Status ● ● ● ● ● ● ● ● ●
H Location ● ● ● ● ●
I Business Unit (Agency) ● ● ● ● ●
J Department (Division, Bureau, Section, Unit) ● ● ●
K Budgeted FTE ● ● ● ●
L Actual FTE ● ● ● ● ● ● ● ● ●
M Employee ● ● ● ● ● ● ● ● ● ● ● ●
N Employee Persona Data ● ● ●
O Hire Date ● ● ● ● ● ● ●
P Pay Rate ● ● ● ● ● ● ●
Q Leave Accrual and Balance ● ● ● ● ● ●
R Retirement Plan ● ● ● ● ● ●
S Compa Ratio ● ● ●
T Benefit Elections ● ● ● ● ● ● ● ●
U Termination Date ● ● ● ● ● ●
V Vacancy Rate ● ● ● ●
W Job Applicants ● ●
X Wages ● ● ● ● ● ● ● ● ● ● ●
Y Taxes ● ● ● ● ●
Z Retirement Contribution ● ● ● ● ●
aa Benefit Deductions ● ● ● ● ●
bb Other Deductions (garnishment, charity, etc.) ● ● ● ● ●
cc Hours Worked ● ● ● ● ● ●
dd Direct Deposit Data ● ●
ee Accounting Distribution ● ● ● ● ●

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0.8 “Financials” Work Breakdown Structure

SHARE is a key component and tool within the Statewide

Accounting System Network, (see Figure 3).
Figure 7 illustrates the SHARE Financials Work Breakdown
Structure Workflows, (inputs, tasks, and outputs). The sub processes
comprising the workflows’ detail tasks are illustrated in Figure 8.
Network managers must use the information in Figures 2, 7, and 8 to
perform, at least quarterly, a risk assessment and to develop strategies to
avoid risk.
The information in Figures 2, 7, and 8 is generic in nature, and is,
therefore, all-inclusive. Accordingly, to perform a risk assessment, Network
managers must modify the information to reflect their agencies’ individual
circumstances.

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SHARE APPLICATION TOOLS

Transaction Type
Used to Recognize, Record, Summarize, and Report Transactions

CA- Rev Contracts (Federal Grants)

AR- Receivable (Federal Grants)

GL CC-Commitment Control
BI- Billing (Federal Gransts)
SignificantAccounts

GM-Grants Management

SUB-Subsidiary System
CM-Cash Management

DM-Deal Management
Non-Cash Expenditure
(Financial Statement and Mangerial Reports)
Fund Balance Reserve

GL- General Ledger

TL-Time and Labor

AM-Asset Manager
Non-Cash Revenue
Cash Disbursement

PC-Project Costing

PO-Purchasing

RT- Rporting
Cash Receipt

IN-Inventory
AP-Payables

PY- Payroll
Process

Budget

1 Cash & Cash Equivalents ● ● ● ● ● ● ● ● ●

2 Restricted Cash ● ● ● ● ● ●
3 Accounts Receivable ● ● ● ● ● ● ● ●
4 Allowance for uncollectible accounts ● ● ● ● ●
5 Loans receivable - Projects in Progress ● ● ●
6 Loans receivable - Completed Projects ● ● ●
7 Other receivables ● ● ● ●
8 Due from federal funds ● ● ● ●
9 Due from other state agencies ● ● ●
10 Due from other funds ● ●
11 Inventory ● ● ●
12 Prepaid expenses and others ● ● ●
13 Accounts payable ● ● ● ●
14 Accrued payroll & employee benefits ● ● ● ● ●
15 Due to state general fund ● ●
16 Due to fiduciary funds ● ●
17 Due to federal agencies ● ●
18 Due to other agencies ● ●
19 Due to other funds ● ●
20 Funds held for others ● ●
21 Deferred revenue ● ● ●
22 Compensated absences due within one year ● ●
23 Fund Balance, beginning ● ●
24 Revenue/Other Financing Sources ● ● ●
25 Expenditures/Other Financing Uses ● ● ● ●
26 Budgeted Revenue ● ●
27 Budgeted Expenditures ● ●
28 Reserve for Encumbrances ● ● ● ● ● ●
29 Reserve for Inventory ● ● ●
30 Reserve for Subsequent Year Expenditures ● ● ● ● ●
31 Unreserved - Undesignated ● ●
32 Capital assets, net of accum. depreciation ● ● ● ● ●
33 Long Term Liabilities ● ● ● ●

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0.0 Introduction

0.9 Internal Control Framework

0.9.1 Internal Control Environment

The internal environment includes the tone of an organization,
influencing the risk consciousness of its people, and is the basis for all other
components of an enterprise’s risk management. The tone of the State of
New Mexico’s internal environment is established by statutes and rules.
Figure 2 is a summary of those statutes and rules, which have been copied in
their entirety in Sections 0.9.1.1 and 0.9.1.2.
In summary, the State of New Mexico has a low risk tolerance. This is
reflected in its adoption of generally accepted accounting principles as its
budgetary basis, its adoption by rule of operating standards, its recognition in
statute of model accounting practices, and its implementation of an enterprise
resource planning tool based on “best practices.”

0.9.1.1 Rules 2.20.5 and 6 NMAC

Please see the following pages (page 22-26) for a reproduction of

the rules pertaining to the roles and responsibilities of the state
agencies and Chief Financial Officers within the Statewide
Accounting System Network.

0.9.1.2 NMSA 1978, §6-5

Please see the following pages (page 27-30) for a reproduction of

the Statutes governing the Statewide Accounting System Network.

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0.0 Introduction
TITLE 2 PUBLIC FINANCE
CHAPTER 20 ACCOUNTING BY GOVERNMENTAL ENTITIES
PART 5 RESPONSIBILITY FOR ACCOUNTING FUNCTION

2.20.5.1 ISSUING AGENCY: Department of Finance and Administration

[2.20.5.1 NMAC – N, 08-29-03]

2.20.5.2 SCOPE: Establishes accountability for accounting function in all state agencies
as defined by section 6-5-1 NMSA 1978, as amended, without exception.
[2.20.5.2 NMAC – N, 08-29-03]

2.20.5.3 STATUTORY AUTHORITY: Section 6-5-2, NMSA 1978, as amended, requires

the division to maintain a central system of state accounts and to devise, formulate, approve
and control and set standards for the accounting methods and procedures of all state
agencies. Section 6-5-2 NMSA1978, as amended, requires the division prescribe procedures,
policies and processing documents for use by state agencies in connection with fiscal matters
and may require reports from state agencies as may be necessary to carry out its duties and
functions. Section 9-6-5 (E) NMSA 1978, as amended, authorizes the secretary of the
department to make and adopt such reasonable and procedural rules and regulations as may
be necessary to carry out the duties of the department and its divisions.
[2.20.5.3 NMAC – N, 08-29-03]

2.20.5.4 DURATION: Permanent

[2.20.5.4 NMAC – N, 08-29-03]

2.20.5.5 EFFECTIVE DATE: August 29, 2003

[2.20.5.5 NMAC – N, 08-29-03]

2.20.5.6 OBJECTIVE: To establish accountability for the accounting function by

establishing, at the state agency level, standards for the proper recording, summarizing, and
reporting of financial transactions and designating one state employee at each state agency
to be responsible for maintaining those standards.
[2.20.5.6 NMAC – N, 08-29-03]

2.20.5.7 DEFINITIONS:
A. “Accounting function” means the methods and procedures, be they manual or
automated, used by a state agency to record, summarize, and report its financial
transactions.
B. “Accounting system” means the total structure of records and procedures used
to record, to classify, to summarize, and to report on the financial position of a
governmental entity or any of its funds, fund types, or organizational
components.
C. “Chief financial officer” is the working title of the state employee assigned the
responsibilities set forth in section 2.20.5.8(C) NMAC of this rule.
D. “Department” means the department of finance and administration.
E. “Division” means the financial control division of the department of finance and
administration.
F. “State agency” means any department, institution, board, bureau, commission,
district or committee of the government of the state and means every office or
officer of any of the above.

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G. “Timely” means in substantial compliance with the due dates established by the
division.
[2.20.5.7 NMAC – N, 08-29-03]

2.20.5.8 CHIEF FINANCIAL OFFICER AND ASSIGNMENT OF

RESPONSIBILITIES:
A. Statute requires that the administrative head of each agency ensure that the
model accounting practices, established by the division, are followed. In order to
ensure that model accounting practices are followed, it is incumbent upon the
agency head to carry out the responsibilities of the Chief Financial Officer,
outlined in Subsection C of 2.20.5.8 NMAC.
B. An agency head may assign the responsibilities outlined in Subsection C of
2.20.5.8 NMAC to any employee within the agency that has the educational
background, knowledge, and experience necessary to supervise, monitor, and
control the state agency’s accounting function. The delegation must be in
writing, must be for a specific fiscal year, and must be approved by the division.
C. It is the responsibility of the Chief Financial Officer to ensure that:
(1) an internal control structure exists at the state agency and is functioning
properly.
(2) all transactions are recorded daily in the agency’s accounting records.
(3) all transactions are properly classified in the agency’s records.
(4) cash account records are reconciled timely each month to the division’s
reports and to the state treasurer’s reports.
(5) all transactions comply with federal and state law.
(6) all expenditures have a public benefit or purpose, are necessary, and are
consistent with the appropriation, the expenditure authority from the
legislature and comply with Section 6-5-3 NMSA 1978, as amended.
(7) all accounting systems, including subsidiary systems, are recording
transactions timely, completely, and accurately.
(8) all payments to vendors are accurate, timely and the state agency has
certified they are for services rendered or goods received in accordance
with Section 13-1-158 NMSA 1978, as amended.
(9) all information requested by the division from the state agency is
provided timely and accurately.
(10)all reporting of financial information must be timely, complete and
accurate, to the state agency’s management and to oversight agencies
and entities.
(11) the state agency’s annual financial statement audit is completed by the
deadline established by the state auditor and the audit report includes an
unqualified opinion.
(12)a budgetary control system, approved by the State Budget Division of the
Department of Finance and Administration, is in place and functioning.
[2.20.5.8 NMAC-N, 08-29-03]

HISTORY OF 2.20.5 NMAC: [RESERVED]

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TITLE 2 PUBLIC FINANCE
CHAPTER 20 ACCOUNTING BY GOVERNMENTAL ENTITIES
PART 6 AUTHORITY TO ISSUE WARRANTS

2.20.6.1 ISSUING AGENCY: Department of Finance and Administration.

[2.20.6.1 NMAC - N, 08-29-03]

2.20.6.2 SCOPE: Applies to all state agencies, as defined by section 6-5-1 NMSA 1978,
as amended, seeking authorization to issue warrants or exception from the requirement of
prior submission of proposed vouchers, purchase orders or contracts to the division as
provided in section 6-5-3 NMSA 1978, as amended.
[2.20.6.2 NMAC - N, 08-29-03]

2.20.6.3 STATUTORY AUTHORITY: Section 6-5-9 NMSA 1978, as amended, requires

the secretary of the department to annually issue a written order granting authorization to a
particular state agency to issue warrants or exception from the requirement of prior
submission of proposed vouchers, purchase documents, purchase orders or contracts to the
division as provided in section 6-5-3 NMSA 1978, as amended when efficiency or economy so
requires. Section 9-6-5 (E) NMSA 1978, as amended, authorizes the secretary of the
department to make and adopt such reasonable and procedural rules and regulations as may
be necessary to carry out the duties of the department and its divisions.
[2.20.6.3 NMAC - N, 08-29-03]

2.20.6.4 DURATION: Permanent

[2.20.6.4 NMAC - N, 08-29-03]

2.20.6.5 EFFECTIVE DATE: August 29, 2003

[2.20.6.5 NMAC - N, 08-29-03]

2.20.6.6 OBJECTIVE: The object of this rule is to provide the conditions state agencies
shall fulfill prior to applying to obtain an authorization to issue warrants or exception from
the requirement of prior submission of proposed vouchers, purchase documents, purchase
orders, or contracts to the division. Also, the object of this rule is to ensure that a state
agency that is applying to obtain such authorization or exception is recording and reporting
its financial transactions timely, completely, and accurately and that its accounting system
follows all the division’s current policies and procedures. Reporting includes, but is not
limited to: the reporting in audited financial statements; managerial reporting; reporting to
oversight agencies including commissions, committees, and the legislature; and detailed
transaction reporting to the division.
[2.20.6.6 NMAC - N, 08-29-03]

2.20.6.7 DEFINITIONS:
A. “Accounting system” means the total structure of records and procedures used
to record, to classify, to summarize, and to report on the financial position of a
governmental entity or any of its funds, fund types, or organizational
components.
B. “Department” means the department of finance and administration.
C. “Division” means the financial control division of the department of finance and
administration.

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D. “State agency” means any department, institution, board, bureau, commission,
district or committee of the government of the state and means every office or
officer of any of the above.
E. “Warrant” means a written instrument issued by the division authorizing
payment of a specified amount to a designated payee out of the state treasurer’s
funds.
F. “Timely” means in substantial compliance with the due dates established by the
division.
[2.20.6.7 NMAC - N, 08-29-03]

2.20.6.8 APPLICATION PROCEDURES AND CONDITIONS OF APPROVAL OF

AUTHORIZATION OR EXCEPTION:
A. Each and every December 31, a state agency that wishes to issue warrants or
exception from the requirement of prior submission of proposed vouchers,
purchase orders, or contracts to the division for the following fiscal year (July 1
through June 30) shall apply for authorization or exception by submitting a
written request to the secretary of the department explaining in detail the reasons
why efficiency or economy will be better achieved by the state agency issuing
warrants or waiving the prior submission requirements. As part of this annual
request, the state agency shall include a detailed report outlining how it has
complied during the past calendar year (January through December) with the
following conditions and standards:
(1) A well-documented internal control structure shall exist within the state
agency and functioning properly.
(2) All transactions shall be recorded daily in the state agency’s accounting
records.
(3) All transactions shall be properly classified in the state agency’s
records.
(4) The state agency’s cash account records shall be reconciled timely each
month to the division’s reports and to the state treasurer’s reports. If the
agency maintains an account directly with a financial institution instead
of with the state treasurer, the agency’s cash account shall be reconciled
timely to the financial institution’s statement of account.
(5) All transactions shall comply with federal and state law.
(6) All expenditures shall be for a public benefit or purpose, be necessary,
and be consistent with the related appropriation (expenditure authority
from the legislature).
(7) All accounting systems, including subsidiary systems, shall record
transactions timely, completely, and accurately.
(8) All payments to vendors shall be accurate and timely and be for services
already rendered or goods received and accepted by the state agency as
complying with the contract or purchase order.
(9) All information requested by the division must be provided to the division
timely and accurately, and in compliance with the division’s current
policies and procedures, including, but not limited to, transaction data.
(10)All reporting of financial information to the state agency’s management
and to oversight agencies and entities must be timely, complete, and
accurate.
(11)The audit of the state agency’s financial statements shall be completed
by the deadline established by the state auditor and the audit report shall
include an unqualified opinion.

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B. Failure to meet any of the standards and conditions above is grounds for the
secretary to deny approval to the agency to issue warrants or deny an exception
to the prior submission requirements.
C. The secretary may request the division’s office of the state controller to verify the
maintenance of the above standards and conditions during the annual period for
which the authorization is granted. The state agency shall cooperate in providing
the division’s office of the state controller with the information it requests.
D. If the secretary does grant approval to the state agency for the authorization to
issue warrants or exception to the prior submission requirements, that approval
is only for the fiscal year beginning July 1 following the request.
E. If the state agency is issuing warrants or is waived from the prior submission
requirements at the time it makes the application and the secretary denies the
request for the subsequent fiscal year, the agency shall not issue warrants after
the June 30th following the denied request.
F. By March 1 following the denied request, the state agency shall make
arrangements with the division for the division to issue the warrants for the state
agency beginning the July 1 following the denied request. As allowed by law, this
shall include the transfer of financial resources to the division to cover the cost
of issuing the warrants and administering the prior submission of proposed
vouchers, purchase orders, and contracts.
[2.20.6.8 NMAC - N, 08-29-03]

HISTORY OF 2.20.6 NMAC: [RESERVED]

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NEW MEXICO STATUTES ANNOTATED 1978
CHAPTER 6 PUBLIC FINANCES
ARTICLE 5 FINANCIAL CONTROL DIVISION

6-5-1. Definitions. (2003)

As used in Chapter 6, Article 5 NMSA 1978:
A. "division" means the financial control division of the department of finance and
administration;
B. "central accounting system" means the accounting system used by the division to process
and record payments, deposits and other financial transactions for state agencies and
departments;
C. "electronic" means electric, digital, magnetic, optical, electronic or similar media;
D. "local public body" means any political subdivision of the state that expends public
money from whatever source derived, including counties, county institutions, boards,
bureaus or commissions; incorporated cities, towns or villages; drainage, conservancy,
irrigation or other districts; charitable institutions for which appropriations are made by
the legislature; and every office or officer of any of the above;
E. "model accounting practices" means the accounting methods and procedures used by the
state;
F. "processing document" means a form, including supporting documents, submitted by a
state agency to the division that will be used by the division to record a financial
transaction or make payment;
G. "state agency" means any department, institution, board, bureau, commission, district or
committee of the government of the state and means every office or officer of any of the
above; and
H. "statewide accounting system network" means the central accounting system, the central
payroll system, the central treasury system and all other financial accounting systems
operated by state agencies as one system through manual or automated interfaces.

6-5-2. Financial control division; central system of state accounts; accounting systems;
processing documents; model accounting practices; internal accounting controls. (2003)
A. The division shall maintain a central system of state accounts and shall devise, formulate,
approve, control and set standards for the accounting methods and procedures of all
state agencies. The division shall prescribe procedures, policies and processing
documents for use by state agencies in connection with fiscal matters and may require
reports from state agencies as may be necessary to carry out its duties and functions.
Procedures and policies issued by the division are exempt from the uniform standards of
style and format promulgated by the state commission of public records.
B. The division shall issue a manual of model accounting practices containing the
procedures and policies prescribed pursuant to Subsection A of this section and shall
annually review and, if necessary, revise and reissue the manual. State agencies shall
comply with the model accounting practices established by the division, and the
administrative head of each state agency shall ensure that the model accounting
practices are followed.
C. State agencies shall implement internal accounting controls designed to prevent
accounting errors and violations of state and federal law and rules related to financial
matters. In addition, state agencies shall implement controls to prevent the submission of
processing documents to the division that contain errors or that are for a purpose not
authorized by law.

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6-5-2.1. Division; additional duties. (2003)
The division shall:
A. coordinate all procedures for financial administration and financial control and
integrate them into an adequate and unified system, including the devising, prescribing
and installing of processing documents, records and procedures for state agencies;
B. collect and maintain the necessary information to produce ledgers, journals, registers
and other supporting records and analyses;
C. maintain information that adequately supports all entries in the state general ledger;
D. verify and control state agency compliance with allotments;
E. conduct all central accounting and fiscal reporting for the state as a whole and produce
interim statewide financial reports and the state's comprehensive annual financial
statements;
F. prescribe, develop, operate and maintain a uniform statewide accounting system
network;
G. prescribe and approve the installation of any changes in the statewide accounting system
network as necessary to secure and maintain internal control and facilitate the recording
of accounting data in order to prepare reliable and meaningful statements and reports;
H. prescribe the uniform classification of accounts to be used by state agencies;
I. operate a central payroll system;
J. perform monthly reconciliations with the balances and accounts kept by the state
treasurer and adopt and promulgate rules regarding reconciliation for state agencies;
K. prescribe and revise procedures, techniques and formats for electronic data transmission
to improve the flow of data among state agencies;
L. monitor reversion of unexpended general fund balances by September 30 of each year;
M. promulgate rules relating to the acceptance of credit, charge and debit cards for the
payment of fees, taxes and other charges assessed by state agencies;
N. store and maintain records electronically;
O. establish, with the attorney general's approval, a procedure for electronic signatures;
P. maintain accounts and information as necessary to show the sources of state revenues
and the purposes for which expenditures are made and provide proper accounting
controls to protect state finances;
Q. make improvements in the state's model accounting practices, systems and procedures;
R. assist state agencies in resolving financial questions or problems;
S. have access to and authority to examine books, accounts, reports, vouchers,
correspondence files and other records, bank accounts, money and other property of a
state agency; and
T. consult with the state auditor to promote better financial statement reporting.

6-5-3. Legality and authority for proposed expenditures determined by division and state
agency; encumbering funds. (2003)
Before any vouchers or purchase orders are issued or contracts are entered into involving
the expenditure of public funds by a state agency, the authority for the proposed expenditure
shall be determined by the division and the state agency. After the authority for the
expenditure is determined, the appropriate fund shall be shown by the division to be
encumbered to the extent of the proposed expenditure. The division may request, and the state
agency shall provide, such documentation and other information as the division deems
necessary to justify the state agency's determination of authority. The division may
disapprove the proposed expenditure if it determines that the justification is inadequate or is
not substantiated by law. The division may perform, on a statistical or stratified basis,
internal pre-audit and post-audit procedures to monitor and enforce compliance with the
provisions of this section.

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6-5-4.1. Annual financial report. (2003)
The division shall compile a comprehensive annual financial report. To assist in the
compilation of the report, each state agency shall compile, in accordance with generally
accepted accounting principles, its financial statements on a schedule established by the
division.

6-5-5. Warrants issued by secretary; powers and duties of state auditor regarding warrants
and transfer of funds imposed upon secretary. (1977)
All warrants upon the state treasury shall be issued by the secretary. All the powers and
duties of the state auditor relating to the issuance of warrants or the transfer of funds are
imposed upon the secretary.

6-5-6. Determinations to be made prior to issuance of warrants. (2003)

A. No warrant upon the state treasury for the disbursement of funds shall be issued except
upon the determination of the division and the state agency that the amount of the
expenditure:
(1) does not exceed the appropriation made to the state agency; and
(2) does not exceed the periodic allotment made to the state agency or the unencumbered
balance of funds at its disposal unless the warrant includes federal funds that will be
receipted based upon established warrant-clearing patterns.
B. The division may implement and perform internal pre-audit and post-audit procedures to
monitor and enforce compliance with the provisions of this section. The pre-audit and
post-audit procedures may be applied on a stratified or statistical basis.
C. A state agency shall determine that a proposed expenditure is for a public benefit and
purpose consistent with the related appropriation and is necessary to carry out the
statutory mission of the state agency prior to committing the state to the transaction.

6-5-7. Warrant or documentation to show fund from which payment is made; settlement of
claims against state; account between state and treasury. (2006)
Every warrant issued or its supporting documentation shall contain the particular fund
appropriated by law out of which it is to be paid. The division shall settle all claims against
the state payable by law out of the treasury and keep an account between the state and the
treasurer.

6-5-8. Vouchers. (2003)

All claims for payment of public money shall be made upon a public voucher. All public
vouchers shall be in the form and contain the information required by the division. All
purchase vouchers for goods and services, other than personnel, shall be accompanied by
supporting invoices and documentation required by the division. Vouchers for the
reimbursement of public officers and employees shall have receipts attached for all money
claimed, except that travel advance or reimbursement vouchers for claims of mileage and per
diem at standard rates need not be accompanied by receipts. All vouchers shall be certified
as true and correct by the officer or employee designated to approve payments of claims
against state agencies and local public bodies, including public schools. The division may
require that payroll, travel advance, reimbursement, refund or other vouchers be sworn to by
the certifying officer or payee. Certification may be in writing or by electronic media.

6-5-9. Secretary may authorize state agencies to issue warrants; secretary may except state
agencies from submission of proposed vouchers, purchase orders or contracts. (2003)
The secretary of finance and administration may, when he determines that efficiency or
economy so requires, authorize state agencies to issue warrants and except state agencies

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from the requirement of prior submission of proposed vouchers, purchase orders or contracts
to the financial control division as provided in Section 6-5-3 NMSA 1978. The authorization
or exception shall be made annually by the order of the secretary in writing. The order shall
state the extent of the authorization or exception and the reasons therefore [therefor]. The
department of finance and administration shall promulgate rules providing conditions for
agencies to meet before obtaining an authorization or exception pursuant to this section. The
department shall annually report to the legislative finance committee on the authorizations
and exceptions granted.

6-5-9.1. Procurement card project. (2003)

The division shall design and implement a procurement card project that allows state
agencies to pay for purchases by using procurement cards. To implement the project, the
division may enter into an agreement with a procurement card issuer. The division shall
determine the limits of the project, including the number of state agencies that participate
and limitations on types of goods and services that may be eligible for purchase through
procurement cards.

6-5-10. State agency reversions; director powers; compliance with federal rules. (2003)
A. Except as provided in Subsections B and C of this section, all unreserved undesignated
fund balances in reverting funds and accounts as reflected in the central financial
reporting and accounting system as of June 30 shall revert by September 30 to the
general fund. The division may adjust the reversion within forty-five days of release of
the audit report for that fiscal year.
B. The director of the division may modify a reversion required pursuant to Subsection A of
this section if the reversion would violate federal law or rules pertaining to supplanting
of state funds with federal funds or other applicable federal provisions.

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0.9.2 Risk Assessment—Entity and Activity Level
Figure 2, in conjunction with Figures 5 and 6 represent a risk
assessment at both the entity and activity levels associated with the State of
New Mexico’s comprehensive annual financial report. Each state agency
issuing its own audited financial statements must expand upon the
assessment by performing an assessment of its own. That assessment must be
in the same format as the assessment in the manual.

0.9.3 Control Activities

Unit 2 of this Manual includes the work breakdown structure for the
Statewide Accounting System Network. The work breakdown structure
consists of processes and related control points. These control points are
“control activities” that ensure that processes are completed successful and
achieve procedural, reporting and compliance objectives. The control
activities are referenced within the workflow diagrams in Unit 2. The
following pages provide process diagrams that illustrate each activity. The
activities are as follows.
A: To Authorize
B: To Record
C: To Report
D: To Verify (initial)
E: To Verify (supervisory)
F: To Reconcile

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0.9.4 Information and Communication

The FCD Website and this manual are important communication tools.
Unit 1 Section 0.1 explains in more detail the function this manual plays in
communication.
Outside expectations are communicated primarily by enactment of
statutes (through a citizen legislature). Issuance of rules by FCD is also a
primary communication tool.
The Chief Financial Officer organizational structure, which promotes
continuous, direct contact between the state agencies and FCD, is a third
important tool for insuring that outside expectations are known (in terms of
both FCD and the agencies).

0.9.5 Monitoring
Monitoring consists of the following activities:
 Control Activities A through F,
 Financial Control Division Pre-audit Activities,
 Pre-audit activities carried out by the state agencies,
 Revenue estimating by the Department of Finance and
Administration, Taxation and Revenue Department, and the
Legislative Finance Committee,
 Budget analysis activities of the Department of Finance and
Administration, State Budget Division,
 Budget monitoring activities by state agencies,
 Management oversight.

Figure 2 illustrated the monitoring activities required by statute and

rule.

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1.0 Unit 1—System Administration

1.1 Functional Organization Chart

SHARE’s major functions are listed in Figure 9. Each function is

accomplished by a series of processes and tasks (see Figures 6 and 8.)

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1.2 Assignments and Responsibilities

Agencies must assign ownership of each process (See Section 1.1).

Each owner is responsible to assign the right employees to complete each
task.

To ensure that the right employees are assigned, each agency must have
a human resource development program to ensure that jobs are properly
designed, taking into account:

Authority level
Skill level required
Appropriate segregation of duties

Additionally the human resource development program must assure that

employees are adequately trained for their assigned tasks.

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Note: AP-06 reference above is for demonstration purposes only. There is no correlation to MAPs section AP-06.

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AP-06a Accounts Payable – Voucher Documentation, Processing Approval

Travel Required
Agency Travel Taken
From
From
AP-04 From From
PY-02b
E A AP-04 PY-02b

Travel advance
No A Was
issued?
travel advance
issued? No
Yes
Yes

1 3
Prepare ISTE for Prepare ISTE and 5
Note: obtain Agency
Prepare ISTE for travel travel advance & Note: Note: Prepare ISTE for
advance & obtain agency obtain Agency Prepare ISTE, include travel approval Prepare ISTE for 100% of 100% of travel cost
advance, copy of print screen travel cost, copy of print
approval (if total travel approval of the voucher attributes tab, screen of voucher attributes
>$1,500 need to encumber
& obtain agency approval tab, & obtain agency
through requisition and
obtain agency head approval
approval).
6
2 Use “regular
4
Use “prepaid or voucher” style to
Link voucher to
regular voucher” Note: create voucher for
Use “regular voucher” style advance (prepaid
style to create total travel expense
to create voucher for total voucher) and
voucher for travel travel expense. Link voucher
purchase order
advance (80%) to advance (prepaid voucher)
and purchase order (if
> $1,500) for SHARE to net
payment.

7
SHARE performs
Process
D: Verify 1
budget checks
(appropriation &
cash)

A – AP07/ 1

To
Process 8 Voucher Package
A: Authorize AP-06
Approve Voucher
B: Record G
E: Verify S through Workflow

A – AP07/ 2 Note: including Voucher Batch

Report (batch & individual) and
ISTE form for submission to DFA
Audit Bureau

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Appendix

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Appendix A
SHARE CHARTFIELDS
CHARTFIELD Business Unit Fund Dept Acct Class Sub Acct Rpt Cat Grants/Project Bud Ref Op Unit
(digits) (5) (5) (10) (6) (5) (10) (6) (15) (4) (8)
Statewide Statewide Agency Specific Statewide Statewide Agency Specific, Agency Statewide Statewide Agency Specific,
Optional Specific, Optional
Optional

Used to Identify Used to Identify Used to Identify an Used to Identify Used to Identify Used to Further Used for Used in Used to Used to Indicate
the Agency Fund Agency’s P-Code, Account the Type of Breakdown the Cost Conjunction with Designate the a Location such
DESCRIPTION A-Code, or Z-Code Appropriation “Account” Accounting the Grants and Appropriation as Field Office,
(general, special, Chartfield Projects Modules Period City, County, or
or restricted) School District
Notes: Notes: Notes: Notes: Notes: Notes: Notes: Notes:

5th Digit signifies P Code = Program 1st Digit signifies– Five digit value Recommendation For First three digits For example:
appropriation S Code = Single 1 = Asset with associated 30 the first six digits be Example, of the Grant ID
source– Line 2 = Liability character used to indicate the programs, represents 07 = FY07
0 = Multiple A Code = Capital 3 = Equity description for account and last four initiatives, “Institution” (a
appropriation Z Code = Special 4 = Revenue law, chapter, digits be used to cost centers unique Institution 0736 = 36
sources 5 = Expenditure section, paragraph indicate sub account. (below is needed for each month
1 = State GF Department– and item division, FIN, Federal Id appropriation
2 = Federal Expenditures: Object Example: bureau, Number, used by initiated in
3 = Internal DDBBSSSUUU codes roll up to Account 544100 is section unit), an Agency) FY07
Service Fund Appropriation Unit Office Supplies. categories,
4 = Inter Agency D= Division using trees– etc. It is not necessary Points the
Transfers B= Bureau Sub Account could for Grant/Project system
5 = Other State S= Section 200 = Personal be established to ID to include to appropriate
Funds U= Unit Services/Employee break out Office CFDA or Federal budget and
Benefits Supplies between Grant number as allows
Program revenue & Department is used 300 = Contractual Toner & Paper both these fields transactions
expenditures (as for requisitions, Services are contained over
reported in the purchase orders, 400 = Other Costs Toner: within the Grant the entire
statement of vouchers, and 500 = Operating 5441002222 module appropriation
activities) will be journal entries. Transfers Out period
tracked using a Paper: Additional fields
“tree” with the Departments roll up Revenue: Last digit 5441003333 are available
following activities: to individual P- indicates type (class) of within the
General Control Codes. revenue– projects/grants
Cultural, 1 = General modules to further
Recreation, & If A or Z (Org) 2 = Program Charges breakout grant or
Natural Code up to 10 Services project costs are:
Resources digits–xxxxxxxxxx 3 = Program Operating
Highway & Grants Activity (15 digits)
Transportation If A or Z Code (Org Contributions (If
Judicial Code), Dept is 4 = Program Capital subrecipients
Legislative used for special Grants exist, use this
Public Safety revenue “capital Contributions field to track)
Regulation & projects” or special 5 = Other Financing
Licensing appropriations Sources Source (5 digits)
Health & Human 6 = Special Items
Services 7 = Extraordinary Items Category (5 digits)
Education 8 = Contributions to
Interest Employee Sub Category (5
Educational Retirement Plan digits)
Institutions 9 = Inter-agency
Other Business- transactions
type activities
I
n
d
CAFR X X X X
R
E
P MANAGERIAL X X X X X X X X X X
O
R
T
I
N
FEDERAL X X X X X X X
G

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2.0 Unit 2—Work Break Down Structure and Policies

2.1 Commonly Used Abbreviations

Abbreviations noted below are used throughout Unit 2 narratives and

flowcharts.

BAR Budget Adjustment Request

BOF Board of Finance
BPS Budget Preparation System
CFO Chief Financial Officer
CPB Central Payroll Bureau
CRB Contract Review Bureau
DFA Department of Finance and Administration
DOT Department of Transportation
FAB Fiscal Agent Bank
FCD Financial Control Division
FCDSU Financial Control Division Support Unit
FMB Financial Management Bureau
GSD General Services Department
HCM Human Capital Management
LFC Legislative Finance Committee
LGD Local Government Division
SBD State Budget Division
SPD State Purchasing Division
SPO State Personnel Office
STO State Treasurer's Office

2.2 Standards, Policies, Procedures, and Processing Flowcharts

The following section provides the user with the standards, policies,
procedures, and processing flowcharts applicable to the best practices of the
State’s financial operations. The standards, policies, and procedures provide
the user with information on the standards to be met, policies resulting from
the standards, workflow processes to follow, and procedures to complete for
the Financials (FIN) and Human Capital Management (HCM). Agencies
must adhere to the best practices documented in this section.

Agencies should use this section as a reference when preparing

documents that will be processed through SHARE. In addition, the agencies
should use the section as a model to evaluate the efficiency, effectiveness,
and economy of their accounting systems. Lastly, this section should be used
as a tool to establish accountability. The responsibility for maintaining the
accounting system of production and for completing each financial operation
should be assigned to specific individuals.

Although extensive, the standards, policies, procedures, and processing

flowcharts in this section may need to be supplemented to meet the

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individual needs of an agency and fully comply with the State’s best
practices.

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FINANCIALS

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FIN 1 – General Ledger – Commitment Control (Budget)
FIN 1

FIN 1 – Commitment Control (Budget)

Policies and Procedures

Business Processes

Beginning of Document

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FIN 1 – General Ledger – Commitment Control (Budget)
Policies & Procedures FIN 1.1

FIN 1.1 Annual Operating Budget/Appropriations

A. MAP Standard

To ensure legal compliance with the budget authorized by the Legislature and approved by the
Governor, revenues and expenditures must be monitored and controlled.

B. Purpose

This policy establishes the requirement that state agencies comply with the processes and procedures
prescribed by State Budget Division (SBD) to develop their annual appropriation request, to prepare
their annual operating budget, and to establish their approved budget in SHARE.

C. Authority

NMSA 1978, §6-3-7, §6-3-9, §6-6-10, §6-3-15, §6-5-1 to §6-5-3

D. Policy

1. Each year by September 1, state agencies shall submit a proposed budget request for the ensuing
fiscal year to SBD in the format and manner prescribed. The proposed budget will identify
anticipated receipts, projected expenditures, and balances on hand as prescribed by law and/or
SBD.

2. State agencies are not authorized to commit funds, order goods, or make expenditures for the next
fiscal year until the annual operating budget has been approved by SBD and the new fiscal year
has begun.

3. SBD and Financial Control Division (FCD) have the responsibility for ensuring that
appropriations, allotments, and annual operating budgets entered and maintained in SHARE are
consistent with the appropriation measures passed by the Legislature and signed by the Governor.

4. Neither SBD nor FCD are authorized to take actions that would reduce the state agencies
appropriations, allotments, or annual operating budget below the amount legislated without
additional legislative authorization, unless as authorized in NMSA 1978, §6-3-23 through §6-3-
25.

5. Any action taken by SBD that affects state agencies’ budgets is subject to review by the
Governor.

6. For single-year appropriations, unless otherwise stated in state law, all unexpended and
unencumbered amounts remaining in a fund at the end of the current fiscal year will revert to the
State General Fund.

7. For multi-year appropriations, FCD will allot funds for the ensuing fiscal year in a manner
consistent with the authorizing statute.

8. State agencies should follow the Forms Completion Instructions.

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FIN 1 – General Ledger – Commitment Control (Budget)
Policies & Procedures FIN 1.1

E. Applicability

This policy statement applies to all state agencies.

F. Procedures

SBD/Capital Outlay Bureau (COB)

1. Issue Budget Request Forms, Infrastructure Capital Improvement Plan (ICIP) & Information to
state agencies on or before June 15.

State Agency

2. Complete Budget Request using the Budget Preparation System (BPS) and return to SBD by
September 1. A copy of the Budget Request goes to the Legislative Finance Committee (LFC).

Documents: S1, S2, S8, S9, S10, S13, R1, R2, R3, R4, R5, E1, E1B, E3, E3A, E3B, E4, E5, E6A

3. Determine level of budget appropriation request, ”P” (program for category level appropriations),
“S” or “Z” (single line appropriations), “A” (for major capital asset).

4. If needed, request change to program structure and performance measures by July 15. Submit to
both SBD and LFC.

5. Complete the ICIP prior to July 1.

SBD/COB

6. Verify, review, and analyze Budget Request and ICIP of the state agency. Make Executive
Budget recommendations to the Governor.

7. Submit Governor’s budget to Legislature due January 5 of even years and January l0 of odd
years.

Legislature

8. LFC prepares and submits its budget proposal to the Legislature.

9. Legislature compares the Budget Recommendations from Executive and LFC, holds hearings,
and approves tentative recommendation. (They may adopt one or the other recommendation or a
combination of the two.)

10. Final budget bill – General Appropriation Act – submitted to Governor.

Governor

11. Approves or vetoes the General Appropriation Act and Capital Outlay Bill(s). Final legislation
determines level and term of funding.

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FIN 1 – General Ledger – Commitment Control (Budget)
Policies & Procedures FIN 1.1

12. Budget chaptered into law by Secretary of State.

FCD

13. Work with SBD to assign the class codes and department A or S codes required for
appropriations budget journal entry.

SBD/COB

14. COB assigns project codes for capital project appropriations.

15. Issue OPBUD2 to state agency and request preparation of OPBUD3/4 (SBD), CAPBUD, and
CBRF forms.

State Agency

16. Prepare operating budget and budget journal information in the Budget Review System (BPS)
based on information provided on the OPBUD2 and generate OPBUD3/4 (SBD), which are due
by May 1. Prepare Request for Allotment form based on the information provided on OPBUD2.

SBD/COB

17. Assign control numbers to all OPBUDS, CAPBUDS, and Allotment forms.

18. Review and approve budget journal information at appropriation level and review and approve
OPBUD3/4 allotment forms (approved by SBD) and CAPBUD and CBRF (approved COB) and
allotment forms.

19. Reconcile budget journal information in the BPS to appropriation legislation (SBD).

20. Once reconciled, upload budget journal information into SHARE.

21. Post Budget Journals.

22. Send OPBUDs, CAPBUDs, CBRF, and Allotment forms to FCD.

FCD

23. Perform reconciliation of the appropriations in the budget journals posted to the appropriations
authorized in the General Appropriations Act.

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FIN 1 – General Ledger – Commitment Control (Budget)
Policies & Procedures FIN 1.2

FIN 1.2 Special, Supplemental, and Deficiency Appropriations

A. MAP Standard

To assure the proper recognition and recording of other financing sources and to ensure legal
compliance, allotments are to be monitored and controlled at FCD and state agency level.

B. Purpose

This policy establishes that expenditures of state monies by state agencies must be budgeted,
authorized, and approved before they are made.

C. Authority

FCD Administrative Practice

D. Policy

1. FCD will allot the entire appropriation amount in the fiscal year the appropriation is first
available to the agency unless the authorizing legislation has a contingency.

2. When expenditures have exceeded approved operating budget in a previous fiscal year, state
agencies must obtain a deficiency appropriation passed by the Legislature and approved by the
Governor to authorize additional expenditures.

3. When expenditures are projected to exceed the approved or adjusted operating budget in the
current fiscal year, state agencies must obtain a supplemental appropriation passed by the
Legislature and approved by the Governor to authorize additional expenditures.

4. When agencies require a non-reoccurring appropriation for a specific project or purpose, state
agencies must obtain a special appropriation passed by the Legislature and approved by the
Governor to authorize additional expenditures.

5. All allotments of emergency appropriations must be approved by SBD.

E. Applicability

This policy statement applies to all state agencies, unless specifically exempted by law.

F. Procedures

State Agency

1. Prepare Request for Allotment form and submit to SBD for approval.

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FIN 1 – General Ledger – Commitment Control (Budget)
Policies & Procedures FIN 1.2

SBD

2. Review for accuracy the form submitted by the agency, approve and forward to FCD for
processing.

FCD

3. Allot appropriate amounts based on approved allotment request forms.

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FIN 1 – General Ledger – Commitment Control (Budget)
Policies & Procedures FIN 1.3

FIN 1.3 Appropriation Allotments

A. MAP Standard

To assure legal compliance and prevent permanent cash overdrafts, cash flow relating to receipts and
disbursements should be carefully monitored and controlled in conjunction with the budget.

B. Purpose

This policy establishes that allotments will be used to manage the rate of disbursements and that the
allotments may be changed during the year, as circumstances require.

C. Authority

NMSA 1978, §6-3-6

D. Policy

1. FCD will distribute all allotments from the Appropriation Act in equal monthly amounts unless
an accelerated distribution has been approved by SBD. Allotments for all other appropriations
will be distributed based on statutory provisions or state agency requests approved by SBD.

2. State agencies can request that SBD change their monthly allotment ratio in accordance with
statutory provisions, within the limitations of cash availability.

3. SBD may adjust allotments to meet general fund cash flow requirements with written approval
from the DFA Secretary or State Budget Director. SBD must formally notify the affected state
agencies of the adjustments.

E. Applicability

This policy statement applies to all state agencies.

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FIN 1 – General Ledger – Commitment Control (Budget)
Policies & Procedures FIN 1.4

FIN 1.4 Appropriations Schedule

A. Statement

The Appropriations Schedule, independently developed by SBD and FCD, is used to verify and
establish appropriations and allotments for each fiscal year.

B. Procedures

FCD

1. Prepare a spreadsheet entitled "Schedule of Appropriations – General Fund" that displays the
following for each state agency account:

a. Current fiscal year appropriation by New Mexico Chapter Law and section for each.

b. Citation of Legislative session for the fiscal year, for instance the Laws of 2016 establishes
the fiscal year 2017 budget

SBD

2. Verify appropriation amounts and provide FCD with approved allotment request forms for each
agency.

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FIN 1 – General Ledger – Commitment Control (Budget)
Policies & Procedures FIN 1.5

FIN 1.5 Changes to Established Allotments

A. Statement

SBD is responsible for authorizing changes to allotment schedules.

B. Procedures – State Agency Requests Change of Allotment Schedule

State Agency

1. Submit a request to SBD to make a change from the established allotment schedule, including
any monthly advances or quarterly or semiannual allotments. Provide the reason(s) for the
request and the desired effective date. Justify the need to revise the allotments and show, if
applicable, anticipated revenues from non-state general fund sources if those sources fund
increases in allotments. Provide the appropriate fund/agency code. Provide updated allotment
request form, with accelerated appropriation box checked.

The form required authorizing the release of regular, deficiency, supplemental, special, or capital
appropriations from the general fund or the computer systems enhancement fund is included with
the operating budget instructions sent to all state agencies by SBD.

SBD

2. Consult with the DFA Cabinet Secretary/State Budget Director and the agency’s Cabinet
Secretary/Director if the request is denied.

FCD

3. If the request is approved, notify the state agency in writing as to the change in allotments and
provide the state agency with a new allotment schedule.

4. FCD implements the change in SHARE if the request is approved.

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FIN 1 – General Ledger – Commitment Control (Budget)
Policies & Procedures FIN 1.6

FIN 1.6 Budget Adjustment Request (BAR)

A. MAP Standard

To assure legal compliance, state agencies must verify that budget adjustment authority exists and
that the budget adjustment will result in expenditures that are for the original authorized purpose.

B. Purpose

This policy establishes the requirement that requests for budget adjustments, whether for existing
budgets or for emergency appropriations, follow the guidelines established by SBD, and that they are
consistent with the original legislative intent.

C. Authority

NMSA 1978, §6-3-25

Annual General Appropriations Act (House Bill 2)
Annual Budget Adjustment Request form and guidelines issued by SBD

D. Policy

1. All requests for budget adjustments must be submitted to SBD using a Budget Adjustment
Request (BAR) form.

2. If budget adjustment authority exists, SBD is authorized to approve BARs for the following:

a. Transfers between programs.

b. Transfers within program(s).

c. Budget increases.

d. Budget decreases.

e. Capital project budget adjustments.

3. Requested and approved adjustments to budgeted expenditures must be made at the appropriation
unit level (typically expenditure categories). Requested and approved adjustments to budgeted
revenues are made at the revenue source code level.

4. BARs that affect revenue or cash balances are subject to the following:

a. The BAR must identify 1) the specific revenue source(s) and amount(s) that will be increased
or decreased, and 2) the specific appropriation unit(s) and amount(s) that will be increased or
decreased.

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FIN 1 – General Ledger – Commitment Control (Budget)
Policies & Procedures FIN 1.6

b. The adjustments in revenue must identify the specific state fund and the source, which could
include specific revenue source(s), internal service fund/interagency transfers, federally
funded sources, or reductions of on-hand cash balances.

c. Increases from sources other than state general fund, such as federal funds, internal service
funds, etc., require documentation to support that these revenues are either currently available
or will be available to fund the adjustment.

d. To support an increase using unbudgeted cash balance(s), state agencies must prove that the
cash balance(s) is available and is not encumbered by liabilities.

5. Requests for budget adjustments that are not consistent with legislative authority and intent will
not be approved.

E. Applicability

This policy statement is applicable to all state agencies.

F. Procedures

Note: State agencies must use the BAR form to request budget adjustments and must follow the BAR
guidelines established and issued by SBD.

State Agency

1. Complete the BAR form (including required documentation in duplicate ) and identify whether
the requested adjustment is a budget transfer between programs, budget transfer within a
program, budget increase, budget decrease, or a capital budget adjustment. Follow the checklist
provided by SBD that lists the data required to support the bar, e.g., bar identification, state
agency contact person, BAR summary, legal authority, BAR detail, and other necessary
attachments and supporting documentation.

2. For category transfers, complete budget projection spreadsheet on forms provided by SBD.

3. Enter budget journals relating to the BAR into SHARE.

4. Enter SHARE Budget Journal ID numbers on BAR form.

5. Send the completed forms to SBD.

SBD

6. SBD logs in the BAR into database to track progress.

7. Send a copy of BARs, and accompanying documentation to the LFC.

8. Return BARs and accompanying documentation to the state agency for corrections, if any.
Provide an explanation of the reason for not approving the BAR.

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Policies & Procedures FIN 1.6

9. Send to analyst and supervisor for review and approval.

10. Upon approval by SBD, forward an approved copy of the BAR to the LFC.

11. For those BARs that are subject to LFC review, hold in abeyance for ten calendar days for all
approved BARs and await the LFC decision on whether the LFC will protest the BAR.

a. To prevent the BAR from becoming effective (if within ten days), LFC objects to the BAR.
Hold the BAR until LFC reviews the request at a public hearing, which shall be held within
thirty-five calendar days of LFC’s receipt of the proposed, BAR.

b. Implement the BAR if no public hearing is held within the thirty-five day waiting period. If
the state fiscal year ends before the scheduled hearing date, then the request shall be effective
on the last day of the fiscal year.

12. Review the approved BAR for accuracy and completeness and post the budget journal entries.

SBD

13. Sign and forward copy of posted BAR to state agency.

State Agency

14. If the agency uses Department Level Budgeting, record and post BAR at department level into
SHARE first before preparing and submitting the BAR to the SBD.

15. After BAR has been posted by FCD, then record and post BAR at department level into SHARE.

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FIN 1 – General Ledger – Commitment Control (Budget)
Business Process – CC-00a

CC-00a – Commitment Control (Budget) Overview

DFA / State Budget
Division (SBD) Agency Legislature Governor

Start Budget Request

1 2
Issue Budget If needed, request change to
Request Forms & program structure and
Information to performance measures by July
th
Agencies on or 15 . Submit to both DFA and
before June 15th LFC.

8
LFC prepares and
submits own budget
proposal to
Legislature
3
5
Review &
Verify, review, and
Approve revisions
make Budget
to agency program
Recommendations
structure &
performance
measures by 9
M – GLCC00 / 1 August 15th Legislature
compares Budget
Recommendation
from Executive and
LFC; approves
6 tentative
Develop budget recommendation
recommendations 4
for Governor Complete Budget
Request, return to Process
A: Authorize
SBD by Sept 1st.
Copy to LFC

7
Submit Approved 10 11
Governor’s Budget Create final budget Approve or veto
Request to bill – the General final legislation that
Legislature due Jan Appropriations Act. determines level and
5th of even yrs. and Submits to Governor term of funding
Jan 10th of odd yrs

M – GLCC00 / 2 M – GLCC00 / 3

12
Budget approved
and written into law
by Secretary of State

Note: Copy of Budget

Request goes to LFC.
To
Documents: S1, S2, S8,
CC-00b
S9, S10, S13, R’s, E1,
E1B, E3, E3A, E3B, E4,
E5, E6A

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FIN 1 – General Ledger – Commitment Control (Budget)
Business Process – CC-00b

CC-00b – Commitment Control (Budget) Overview

Financial Control State Budget Division (SBD) / Local
Division (FCD) Govt. Division (LGD) Agency
From
CC-00a

12
Assign class code & 13
Z codes for special LGD assigns project
appropriations for codes for capital
department level projects
budget journal entry

Note:
Cl ass code i s used i n 14a
appropriation and
department level
DFA / SBD Issue
Process
budgets. OPBUD2 and A: Authorize
instruction forms to
agency

21b 14b
Perform reconciliation of Request creation of
the budget journals in OPBUD 3/4/5 and
SHARE to the General CAPBUD, CAPBUD5
Appropriations Act for forms and allotment forms
General Fund Allotments
Process
15
16 F:
Reconcile Prepare OPBUD 3/4 using
Process Log in, assign control numbers
Budget System based on
F: and control all OPBUDs,
Reconcile OPBUD 2, CAPBUD and
CAPBUDs and Allotment
CAPBUD 5 and allotment
forms.
forms. Due by May 1st

A – CC00 / 4
17
Reconcile budget
info in Budget
System to
appropriations
A
Process
A: Authorize
Process 18 D: Verify I
A
B: Record Once reconciled, upload budget journal Note: (OPBUD 3/
C. Report 4 and CAPBUD
info to SHARE and CAPBUD5)
M – CC00 / 5
20 Review and approve OPBUD 3/4 and
Post Budget Journal CAPBUD and CAPBUD 5 forms
at Appropriation 22
Level Create and post
Process
19 budget journal at B: Record
Send OPBUDs, department level
CAPBUDS and Note: within SHARE
Verify class code,
allotment forms to budget reference, and
21a FCD total request t o OPBUD A – CC00 / 4
Process 2.
Perform reconciliation of F:
the budget journals in Reconcile
SHARE to the General
End
Appropriations Act

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FIN 1 – General Ledger – Commitment Control (Budget)
Business Process – CC-00a & b

CC-00a & b – Commitment Control (Budget) Overview Control Points

SBD verifies the support documentation from the Budget Request submitted by the Agency, and makes budget
M – CC00 / 1
recommendations.

Legislature compares Budget Recommendations from SBD and LFC and approves tentative Budget Bill, submits to
M – CC00 / 2
Governor.

M – CC00 / 3 Governor approves or vetoes budget bill. Final legislation determines level and term of funding.

A – CC00 / 4 Control Access on SHARE allows only authorized users to Post Department Level Budget Journal into SHARE.

SBD verifies the support documentation and authorizes posting of an appropriation into SHARE. Additionally, review
M – CC00 / 5 and approve OPBUD 3, OPBUD 4, CAPBUD, and CRBF forms (Verify class code, budget reference, and total request
to OPBUD 2). A minimum of 2 approvals are required.

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FIN 1 – General Ledger – Commitment Control (Budget)
Business Process – CC-01

CC-01 – Budget Journal Entry OPBUD (Operating & Capital Budgets)

State
Agency Budget Division
Start the Budget
(SBD)
Journal OPBUD
Process

Process
A: Authorize
1 D: Verify I
Extract budget
reference
(appropriation
period) and class M – CC01 / 1
(reference to law
creating
appropriation) Dept
Z codes for special
appropriations

2 3
Budget
Enter Budget Journal SBD Reconciles
A at appropriation Yes info into SBD Budget Journal info
level?
Budget System legislation

Note:
Appropriation Expenditure
Level Revenue and Budget
Reference/Class into SHARE.
OPBUD3 - Operating
OPBUD4 - Specials
No OPBUD5 - Reauthorize Monies 4
CAPBUD - Capital Projects
CAPBUD5 - Rebudget
SBD uploads Budget
Journals to Share
Process
A: Authorize
B: Record
E: Verify S
Process
A: Authorize
4 E: Verify S
Prepare budget at 7
8
Department Level Review and approve
Review and post
Process budget journal
budget journal into
M – CC01 / 2 and submit for
SHARE
posting

Process
A: Authorize M – CC01 / 4
E: Verify S
M – CC01 / 3
5 Process B: Record
Post Department B: Record
A – CC01 / 5 9
Level Budget Appropriation level
Journal into SHARE budgets established
in SHARE at A
A – CC01 / 5 code, P code or Z
code level.

6
Department (agency)
level budget End A

established in
SHARE

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FIN 1 – General Ledger – Commitment Control (Budget)
Business Process – CC-01

CC-01 – Budget Journal Entry (OPBUD) Control Points

The Agency extracts budget reference (appropriation period), class (reference to law creating appropriation) and
M – CC01 / 1 Department, A or Z codes for Special Appropriations from SHARE. The information is verified prior to being inputted
into SHARE.

M – CC01 / 2 An Agency supervisor verifies if the Budget Journals entered into SBD Budget System are in accordance with the
support documentation (extract budget reference and class). After verification, the operating budget is submitted to SBD.

State Budget Division (SBD) personnel reconcile Budget Journal info from Budget System to approved legislation
M – CC01 / 3
before it is submitted for posting). Once reconciled entries are uploaded into SHARE.

Individual with posting authority receives the budget document once approved by the SBD analyst. SBD reviews that the
M – CC01 / 4
paper budget journal matches the budget journal in SHARE and authorizes the budget journal into SHARE

A – CC01 / 5 Control Access on SHARE allows only authorized users to Post Department Level Budget Journal.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 1 – General Ledger – Commitment Control (Budget)
Business Process – CC-02

CC-02 – Budget Adjustment Request (BAR)

Agency DFA State Budget Division LFC Budget Division
Budget
Adjustment
Required Note: May be requested by SBD LFC Budget
if they determine there is a need Division request No A
for a budget adjus tment
hearing?

1
Complete the Budget
Adjustment Request Yes
(BAR) form and
supporting
justification

9
Forty-five days to
2
Enter budget journal hold hearing
adjustment in Process
SHARE including A: Authorize
budget reference and D: Verify I
class
Note: Prevent t he BAR from becom ing
M – CC02 / 1 effective if within ten days, the LFC
objects to the BAR. Hold the BAR until
Note: appropriation
the LFC reviews t he request at a public
expenditure level and
hearing which shall be held within thirty-
revenue
Budget five calendar days of LFC’s receipt of the
proposed BAR
adjustment
at appropriation Yes
level?

7
No Log in and assign
control number.

3 Process
Approve budget A: Authorize
E: Verify S
journal into SHARE
8
Process Review and approve
A: Authorize
E: Verify S
budget journal and
M – CC02 / 2 B: Record submits to LFC for
review.

Budget M – CC02 / 4
6
adjustment at
No BAR rejected by
Department
FCD
Level?
10 Process
A: Authorize
A Review and post B: Record
Yes budget journal E: Verify S

4 M – CC02 / 5
Post budget Process
adjustment journal B: Record
into SHARE 11
Budget adjusted in
SHARE
M – CC02 / 3

5
Budget adjusted into End
End
SHARE

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 1 – General Ledger – Commitment Control (Budget)
Business Process – CC-02

CC-02 – Budget Adjustment Request (BAR) Control Points

The Agency extracts budget reference (appropriation period) and class (reference to law creating appropriation) and
M – CC02 / 1 Department Z Codes for special appropriations from SHARE. The information is verified prior to being inputted into the
SHARE.

M – CC02 / 2 An Agency supervisor verifies if the Budget Journals entered into SHARE are in accordance with the support
documentation (extract budget reference and class). After verification, the information is approved in SHARE.

M – CC02 / 3 Control Access on SHARE allows only authorized users to Post Budget Journal.

M – CC02 / 4 A SBD personnel review and authorize the budget journal entry before it is submitted for posting.

SBD personnel with authority to approve journals receives the Budget Journal approved by the SBD analyst, reviews
M – CC02 / 5
that the paper budget journal matches the budget journal in SHARE and authorizes the budget journal into SHARE.

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System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
FIN 2 – Cash Management Function
FIN 2

FIN 2 – Cash Management Function

Policies and Procedures

Business Processes

Beginning of Document

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 2 – Cash Management Function
Policies & Procedures FIN 2.1

FIN 2.1 Timely Depositing of Cash

A. MAP Standard

Ensure that money received is deposited into the state treasury within established statutory timeframe.

B. Purpose

This policy establishes the requirement that cash received by agencies must be timely deposited into
the state treasury or accounts thereof in accordance with state statute. Timely deposit of receipts
reduces the risk of loss or theft.

C. Authority

NMSA 1978, §6-10-3

NMSA 1978, §6-10-10
NMSA 1978, §6-1-13

D. Policy

1. State agencies shall deposit cash, checks, and drafts into bank accounts authorized by the State
Treasurer’s Office (State Treasury) no later than next business day after receipt.

2. State agencies shall document all monies received either with a pre-numbered receipt / deposit
ticket or by entering them in a cash receipt log, that specifies the amount and date of the receipt,
the source of revenue, and account coding information. Cash registers used by agencies must
issue numbered cash receipt as validation.

3. State agencies must account for all pre-numbered receipts/deposit tickets:

a. Receipts/deposit tickets available for use must be adequately controlled and safeguarded.

b. Spoiled or voided receipts/deposit tickets must be marked “Void” and must be retained for
support and independent verification.

4. State agencies using lockboxes shall reconcile daily the monies remitted by the bank directly into
the agencies account with the bank deposit ticket and the SHARE Deposit Entry.

5. State agencies must restrictively endorse – “For Deposit Only To (State Agency Account)” – all
checks or negotiable instruments at time of receipt. Account coding information should be
recorded on the check to document where the funds are originally recorded and to facilitate
charge back processing should the check be returned.

6. State agencies must deposit all monies received with the authorized banking institution using the
agency specific bank account by the close of the next business day after receipt.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 2 – Cash Management Function
Policies & Procedures FIN 2.1

7. State agencies that collect monies for the use of other agencies are responsible for ensuring those
deposits and receipts are classified and accounted for within SHARE on a timely and accurate
basis. All deposits must be properly and accurately accounted for at the end of each month.

8. State agencies authorized to maintain bank accounts are required to record bank account activity
periodically but no less than on a monthly basis within SHARE. State statute or State Treasury
policies and procedures shall determine whether these monies must be transferred into an account
directly stewarded by State Treasury and when and how the transfer should take place.

E. Applicability

This policy statement applies to all state agencies.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 2 – Cash Management Function
Policies & Procedures FIN 2.2

FIN 2.2 Proof of Deposit Documentation

A. MAP Standard

Proof of deposit should be obtained for cash and other payment instruments to validate that funds
were accurately credited to the proper agency and account. This control process is designed to ensure
and document legal compliance and safeguard cash.

B. Purpose

This standard establishes the requirement that all deposits be validated or receipted to safeguard cash
and to allow independent verification.

C. Authority

NMSA 1978 §6-5-2

D. Policy

1. State agencies should obtain a validated banking institution deposit receipt for all monies
deposited with a State Treasury authorized banking institution.

2. The amount deposited must be verified by an individual independent of the personnel who had
access to the monies and/or deposit. Verification consists of comparing the validated Deposit
Ticket or receipt with the amount(s) recorded in the state agency records to confirm agreement.

3. Validated bank receipts should be kept on file until the independent annual audit report for that
fiscal year has been officially issued.

4. After the agency audit report for a fiscal year has been issued, validated bank receipts / tickets
should be sent to the State Records Center and Archives to be stored in accordance with state
archiving policies and procedures.

E. Applicability

This policy applies to all state agencies.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 2 – Cash Management Function
Policies & Procedures FIN 2.3

FIN 2.3 Preparing and Documenting Cash Receipts

A. Statement

The following procedures should be followed for preparing and documenting receipt of cash, checks,
or money orders.

B. Authority

NMSA 1978, §6-5-2

C. Procedures

State Agency

1. Count the cash received and verify that the check or money order was completed properly with
the correct amount and appropriate signature.

2. Document the receipt of money using a pre-numbered cash receipt slip, validated cash register
receipt, or a cash receipt log. Record the date, amount, and person issuing the receipt. Record
the payer, when applicable.

3. Place the receipts in a secure location until deposited.

Note: Because of the many different ways that the state receives money, Financial Control Division
(FCD) does not require that state agencies use a specific form for Cash Receipts; however, Cash
Receipt slips used must be pre-numbered, and cash register receipts must be machine validated.

D. Applicability

These policies apply to all state agencies.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 2 – Cash Management Function
Policies & Procedures FIN 2.4

FIN 2.4 Restrictive Endorsement of Checks

A. Statement

To limit financial instrument negotiability, State agencies should “Restrictively Endorse” all checks
upon receipt using the following procedure.

B. Authority

NMSA 1978, §6-5-2

C. Procedures

State Agency

1. Affix the "For Deposit Only To (State Agency Account)" statement on the back of each check
immediately upon receipt.

2. Record the following on the back of each check:

a. Name of State Agency

b. SHARE GL Account Number for Bank

c. SHARE GL Account Number for revenue, expenditure or balance sheet offset

D. Applicability

These policies apply to all state agencies.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 2 – Cash Management Function
Policies & Procedures FIN 2.5

FIN 2.5 Timely Recording of Deposits in SHARE

A. MAP Standard

Accounting entries are recorded as necessary in the period in which they occur. Cash receipts are to
be promptly recorded in SHARE by the agency depositing the funds.

B. Purpose

Establish the requirement that agencies accurately record cash receipts in SHARE in the period in
which received and that the accounting for cash is timely to ensure that all deposits are available for
inclusion in established financial closing schedule.

C. Authority

NMSA 1978, §6-5-2

D. Policy

1. Accounting for deposits in SHARE using Accounts Receivable Module functionality is the
agency’s responsibility, this includes entering the accounting information, completing and budget
checking and correcting any associated accounting errors.

2. Deposit transactions from the previous business day will be loaded into SHARE Accounts
Receivable Module daily and agencies must apply proper accounting for these deposits on the
day loaded.

3. Recognizing that obtaining information required to account for deposits may take longer than a
day and that some agencies use accounting processes other than Direct Journal Entries to account
for receipts, the next day accounting convention may be waived, however all deposits within a
given accounting month should be accounted for no later than 5 business days after the deposit
was loaded into SHARE.

4. Agencies should utilize the following SHARE queries to validate bank activity:

 NMS_BANK_TRANS_W_RECON_STATUS
 NMS_RETURN_ITEM

5. If the accounting system used to record cash activity is not SHARE then the agency shall
periodically but no less than once a month and prior to the fifth workday of the subsequent
month prepare and submit Journal Entries to the FCD to record cash activity in SHARE.

E. Applicability

This policy applies to all state agencies.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 2 – Cash Management Function
Policies & Procedures FIN 2.6

FIN 2.6 Returns and Other Bank Debits/Adjustments

A. MAP Standard

Timely and accurate accounting for miscellaneous bank debits such as returned items that have been
deposited by the state agency and subsequently returned or adjusted by the fiscal agent bank.

B. Purpose

Establish the requirement that all checks or other negotiable instruments that are returned as
uncollectible and all miscellaneous bank adjustments be accounted for timely by the depositing state
agency.

C. Authority

NMSA 1978, §6-5-2

D. Procedure

State Agency

1. State agencies are responsible for the daily monitoring of return item/miscellaneous debit activity
posted to their assigned bank account(s). Agencies can utilize the following query to identify
debit transactions for depository accounts:

NMS_RETURN_ITEM

2. Return and Other Bank Debits will automatically be loaded in the SHARE Accounts Receivables
Module along with the deposits. The Returns and Other Bank Debits will have a negative amount
in the payment ID field.

3. Recognizing that obtaining information required to account for returns or miscellaneous debit
transactions may take longer than a day, the next day accounting convention may be waived,
however all returns/miscellaneous debits within a given accounting month should be accounted
for no later than 5 business days after the deposit was loaded into SHARE.

4. State agencies must take prompt and appropriate action to collect returned items.

E. Applicability

This policy applies to all state agencies.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 2 – Cash Management Function
Policies & Procedures FIN 2.7

FIN 2.7 ACH Reversals

A. MAP Standard

Ensure an agency’s request for an ACH payment to be reversed by the fiscal agent bank is
appropriate and necessary.

B. Purpose

Establish the requirement when an ACH reversal will be approved and submitted to the fiscal agent
bank for processing.

C. Authority

NMSA 1978, §6-5-2

D. Policy

1. Agencies are to ensure when making payments to vendors or employees, the vendor’s or
employee’s bank account information in the vendor record is updated.

2. Agencies are to ensure the correct vendor is used when initiating a payment.

3. If a payment is made to the wrong vendor or bank account the following general criteria will be
used to determine if an ACH reversal will be done:

a. Is the account holder known, i.e. bank account owner is the same as the payee?

b. Can the vendor be contacted to have them request their bank reject the ACH payment?

c. Can the vendor repay the agency through a payment?

4. If any of the above are applicable, then the agency should work with the vendor to have the funds
returned to them through an ACH reject or repayment.

5. If the account holder is not the same as the payee, then FCD will process an ACH reversal request
with the fiscal agent bank.

a. The agency shall submit the request for ACH reversal to the Financial Management Section,
the request shall include voucher ID, payee name, payment date, and dollar amount.

E. Applicability

This policy statement applies to all state agencies.

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System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
FIN 2 – Cash Management Function
Policies & Procedures FIN 2.8

FIN 2.8 Establishment of non-SGFIP Bank Accounts

A. MAP Standard

Ensure that money received is deposited into authorized bank accounts and recorded in the
accounting system timely and in accordance with state statute.
B. Purpose
Establish the requirement that agencies must obtain State Treasurer authorization to open non-SGFIP
bank accounts and that cash be deposited timely into the state treasury or accounts thereof in
accordance with state statute.

C. Authority

NMSA 1978, §6-10-3

NMSA 1978, §6-1-13
Rule 2.60.2 NMAC

D. Policy

1. No state agency may open a new bank account or deposit money in an existing bank account
without written authorization from the State Treasurer or his designee. Requests for new
depository accounts must be submitted in writing on the forms prescribed by the State Treasurer.

2. The State Treasurer will set the conditions and/or limitations for each account and may be
authorized based on the following general criteria:

a. A local deposit account is necessary to ensure safety of state funds handled by state agencies
receiving cash or instruments on a daily or routine basis; or

b. An account is established by court order or state agency administrative action; or

c. A local account is necessary in order for the state agency to comply with the provisions of
NMSA 1978, §6-10-3: or

d. The state agency is authorized statutorily to keep and maintain a deposit account; or

e. The deposit account is established in a financial institution that has a signed depository and
collateral agreements with the State.

3. State agencies must deposit monies received into authorized bank account by the close of the next
business day after receipt. Withdrawals from accounts shall be initiated periodically such that the
month end balance does not exceed the maximum established by the State Treasurer for that
account.

4. Agencies must record cash transactions when they occur within the internal accounting system of
record and perform a timely monthly reconciliation on these accounts

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 2 – Cash Management Function
Policies & Procedures FIN 2.8

5. If the accounting system used to record cash activity is not SHARE then the agency shall
periodically but no less than once a month and prior to the fifth workday of the subsequent month
prepare and submit Journal Entries to the FCD to record cash activity in SHARE.

E. Applicability

This policy statement applies to all state agencies.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 2 – Cash Management Function
Policies & Procedures FIN 2.9

FIN 2.9 Authority to Issue Warrants

A. Statement

The Secretary of the Department of Finance and Administration may authorize state agencies to issue
warrants and exempt state agencies from the requirement of prior submission of proposed vouchers,
purchase orders or contracts to the FCD as required under statute.

B. Authority

NMSA 1978, §6-5-3

NMSA 1978, §6-5-5
NMSA 1978, §6-5-9

C. Procedures

The Department of Finance and Administration has issued rules establishing the conditions that
agencies must meet in order to issue warrants or obtain exemptions. State agencies shall annually
submit a request seeking approval to issue warrants which shall include a detailed description of
reasons why efficiency or economy will be better served by the state agency issuing warrants or
waving the prior submission of financial documents. Submissions are due each December 31 for the
subsequent fiscal year. The specific requirements related to the application and conditions of
approval are contained in Rule 2.20.6 NMAC.

1. Prepare a memorandum addressed to the Secretary of the Department of Finance and

Administration requesting permission to issue state warrants. To be deemed complete, the
submission must address the following:

Using the Authority to Issue Warrant form:

a. Describe warrant’s business purpose (what will it be used for) and why efficiency or
economy is better served by the agency issuing the warrant or by waiving prior submission
requirements.

b. Describe types of payments to be made if approval is granted.

c. Provide an estimate of the number of warrants to be issued and value on a fiscal year basis. If
ACH payments are made include those payments in the metrics as well.

d. Provide a report outlining how the agency complied with the 11 control and accounting
standards contained in Rule 2.20.6.8 NMAC.

D. Applicability

This requirement applies to all state agencies.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 2 – Cash Management Function
Policies & Procedures FIN 2.10

FIN 2.10 Obtaining Facsimile Signature from FCD

A. Statement

Warrants drawn upon the state treasury shall be issued by the Secretary of the Department of Finance
and Administration (DFA) and signed using the facsimile signature of the Secretary. This procedure
identifies the method agencies shall follow to obtain the DFA Secretary's facsimile signature.

B. Procedures

For State Agencies Preparing Their Own Warrants

1. Send a written request to FCD to obtain the DFA Secretary's facsimile signature for signing
warrants. The request should include the following support:

a. Written documentation that the requesting state agency has been assigned a warrant series by
State Treasury.
b. Agency attestation that warrant series will only be used for the specific purpose approved.

c. A copy of the written approval from the DFA Secretary to issue warrants.

d. A copy of the written internal control and safeguard procedures that will ensure that the DFA
Secretary's facsimile signature is not used for unauthorized purposes.

FCD

2. Obtain the signature of the authorized state agency representative(s) acknowledging receipt of the
DFA Secretary’s facsimile signature.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 2 – Cash Management Function
Policies & Procedures FIN 2.11

FIN 2.11 Cancelling Warrants

A. MAP Standard

To safeguard assets, warrants to be cancelled should be handled in the same timely manner as cash
receipts.

B. Purpose

This policy establishes the requirement that any warrant that has been lost, stolen, or issued
erroneously be cancelled timely and that its amount be restored to cash. For warrants vouchered
through SHARE, agencies must notify DFA when a warrant should not be redeemed. For agencies
that issue their own warrants, agencies are responsible for formally notifying STO when a warrant
should not be redeemed.

C. Authority

NMSA 1978, §6-5-2

D. Policy

1. State agencies shall cancel warrants that have been lost, stolen, or issued erroneously, as soon as
possible.

2. Before cancelling a warrant, agencies must verify that the warrant has not been redeemed and/or
reconciled in SHARE.

3. The fiscal agent bank should receive timely notification that a warrant has been cancelled in order
to prevent payment.

4. DFA/FCD and STO shall refuse payment on any warrant for which a stop payment request or the
fiscal agent bank register cancel has been received timely.

5. All stop payment requests from DFA/FCD shall be processed through SHARE using the Cancel
option when cancelling warrant. The Stop Pay will be sent to the fiscal agent bank through the
Positive Pay File. All stop payment requests from agencies to STO shall be made in writing.

6. State agencies that are authorized to issue their own warrants shall follow FCD procedures for
cancelling warrants and STO policies and procedures when making stop payment requests. Refer
to FIN 5 for the warrant cancellation process.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 2 – Cash Management Function
Policies & Procedures FIN 2.12

FIN 2.12 Warrant Issuance/Redemption

A. MAP Standard

To safeguard cash, the issuing state agency must notify STO that a warrant has been issued before the
fiscal agent redeems the warrant.

B. Purpose

This policy establishes the requirement that agencies notify STO of warrants issued prior to their
redemption.

C. Authority

NMSA 1978, §6-5-2

D. Policy

1. Warrants issued by the state can only be redeemed by STO.

2. STO shall pay to the fiscal agent all warrants issued in compliance with state statutes.

3. All state warrants must bear the facsimile signature of the cabinet secretary of the Department of
Finance and Administration as registered with the Office of the Secretary of State.

4. FCD and other agencies authorized to issue warrants shall notify STO of all warrants issued on
the same day that they issued the warrants.

5. Any warrant that is presented for payment before the issuing state agency reports it to STO or
before it is recorded in SHARE can be force-redeemed at the discretion of STO but only after
obtaining permission in writing from the state agency head or obtaining written assurance from
an authorized representative of the issuing state agency.

E. Applicability

This policy applies to all state agencies.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 2 – Cash Management Function
Business Processes CM-00

CM-00 Cash Management Function (STO) and Cash Control Bureau Function (FCD) (Overview
Notes)
The following descriptions are the Treasury Cash Management Functions of the State Treasurer's Office:

INVESTMENT ACCOUNTING BUREAU A – CM00 / 1

Reconciliation from QED (Investment Accounting System) to SHARE

M – CM00 / 2
Enter journal entries in SHARE for QED activity as needed

TRANSACTION PROCESSING BUREAU

Reconciliation of SHARE warrant activity M – CM00 / 3

Stop Payments and Warrant Cancellations with Bank

DEPOSIT ENTRY

Enter judicial districts, county, and other deposits

CASH MANAGEMENT DIVISION

Reconciliation of SHARE deposit entries M – CM00 / 4

Enter deposit adjustments

INVESTMENTS DIVISION

Reconciliation from QED to State’s Custody Bank Statement (Bank Statement) M – CM00 / 5

The following descriptions are the Cash Control Bureau Functions of the Financial Control Division:

Review and release positive pay exceptions

M – CM00 / 6
Book to Bank reconciliation

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 2 – Cash Management Function
Business Processes CM-00

CM-00 Cash Management and Cash Control Function Control Points

A SHARE report/query can be generated listing all reconciled and completed deposits. The report can be used for
A – CM00 / 1
agency’s audit.

The State Treasurer's Office reconciles QED to SHARE and makes necessary adjustments on a monthly basis. The
M – CM00 / 2
reconciliation is reviewed and approved by a separate individual.

M – CM00 / 3 STO reconciles SHARE warrant activity daily to warrants redeemed at the fiscal agent bank.

M – CM00 / 4 The State Treasurer's Office reconciles bank activity in SHARE using the delivered system functionality

The State Treasurer's Office reconciles the QED system activity to the State’s Custody bank statement on a monthly
M – CM00 / 5
basis. The reconciliation is reviewed and approved by a separate individual.

M – CM00 / 6 FCD is currently performing a daily book to bank reconciliation but will transition this process to CM at a later date.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 2 – Cash Management Function
Business Processes CM-01

CM-01 Cash Management – Investment Reconciliation (Overview)

State Treasurer's Office (STO)
Investment Accounting
Bureau Budget and Finance Division

Supporting Journalized to
Documentation or General Ledger.
Trade Tickets

Process
Process
D: Verify I
A: Authorize
E: Verify S
B: Record
F: Reconcile

1
Record investment 2
activity in QED SHARE General
(all purchases, sales, Ledger
income etc)
M – CM01 / 1

Process QED to
D: Verify I SHARE Reconciliation
E: Verify S
F: Reconcile QED to Custodial M – CM01 / 2
Bank Reconciliation
Note:
SHARE General Ledger Documentation:

The J PM to SHARE trial balance reconciliation is the mechanism

Note: to integrate STO’s investment accounting records into SHARE.
STO has two investment reconciliations:
JP Morgan
Statement 1. Daily positions reconciliation.
(Accounting 2. Monthly investment reconciliation: To General
a. Verify flow of the JPM accounting Ledger
Statement) statements.
b. Inventory pair off.
c. Income pair off.
d. JPM-SHARE trial balance
reconciliation.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 2 – Cash Management Function
Business Processes CM-01

CM-01 Cash Management – Investment Reconciliation (Overview) (Control Points)

The State Treasurer's Office reconciles QED to SHARE and makes necessary adjustments on a monthly basis. The
M – CM01 / 1
reconciliation is reviewed and approved by a separate individual.

M – CM01 / 2 The State Treasurer's Office reconciles the QED system activity to the State’s Custody Bank bank statement on a
monthly basis. The reconciliation is reviewed and approved by a separate individual.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 2 – Cash Management Function
Business Processes CM-01.1

CM-01.1 Cash Management – Investment Pools (Overview Notes)

State Treasurer's Office (STO)
The following chartfields are used to properly account for Investment Pools:

Business Unit: 39401

Fund: Fund #68599 Short Term Investment Pool (local government)

Fund #10199 Consolidated Investment Pool (used to record state bond proceeds)

Fund #10099 State Funds Investment Pool

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 2 – Cash Management Function
Business Processes CM-01.2

CM-01.2 Cash Management – Recording Deposits and Bank Adjustments

Agencies / External State Treasurer's Office (STO)
Entities
From
CM-06 Process
A: Authorize 4
B: Record STO performs Bank
D: Verify I Statement Import in
E: Verify S
SHARE
1
Agency delivers
deposit to bank.
Cash, Wires, A – CM01.2 / 1
ACH, 5
CC receipts STO runs Auto-
Reconciliation Process
2 within SHARE F: Reconcile

External Entities 3
transmit ACHs, Bank receives and
wires, CC receipts or posts deposit to 6 M – CM01.2 / 4

make deposits. proper account STO runs Accounts Receivable

Load which loads bank activity
in the SHARE Accounts
Receivable Module
External Entities Cash
Deposit Occurs

8
STO works with
M – CM01.2 / 2 7
agencies and State
Accounting entries
M – CM01.2 / 3 Fiscal Agent Bank to
entered, completed, and
identify unknown
budget checked
activity, NSF Checks,
Process errors or fees.
F: Reconcile

9 identify miss ing

11 Semi-Manual or unrecorded
SHARE creates reconciliation (to receipts, positive
adjustments or
deposit journal identify differences corrections
entries via journal between bank and
generator SHARE data)

10
STO prepares deposit to
agency General Operating
Fund for any bank deposit
not recorded in SHARE
within the allotted time records deposit (crediting/
debiting agency’s general
operating fund “receipts
held in suspense account”;
Process agency then reclassifies to
B: Record correct account).

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FIN 2 – Cash Management Function
Business Processes CM-01.2

CM-01.2 Cash Management – Recording Deposits and Bank Adjustments (Control Points)
The State Treasurer's Office initiates the Auto-Reconciliation process in SHARE. SHARE process matches
A – CM01.2 / 1 agency deposits and cleared warrants to Fiscal Agent Bank (FAB) activity.

M – CM01.2 / 2 The Agency verifies that the bank activity matches what they deposited to the bank

M – CM01.2 / 3 The Agency enters the accounting strings for all deposits within five days of being uploaded into SHARE.

M – CM01.2 / 4 The State Treasurer's Office performs a semi-manual reconciliation to match items not auto reconciled.

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FIN 2 – Cash Management Function
Business Processes CM-02

CM-02 Cash Management – Transaction Reconciliation (Overview)

State Treasurer's Office (STO) Agency
Suspense Account Identification

Daily Bank
From
Reconciliation
CM-01.2

1
STO loads bank
statement for each 6 8
bank account M – CM02 / 1 STO requests STO keeps it on
directly into SHARE information from unidentifiable
through Bank Import agency to help
functionality M – CM02 / 2 deposits and
identify bank continues to research
transactions
until cleared

Process No
F: Reconcile
2 7
STO initiates Auto- Agency responds to
Reconciliation STO request within Belong to
process in SHARE 24 hours to be Agency?
reflected within 2
business days
Yes
3
SHARE process
matches agency A – CM02 / 4 9
deposits and STO initiates
warrants to Fiscal operating transfer
Note: For deposits at Fiscal Agent Bank
Agent Bank (FAB) that remain un-posted in SHARE for more
activity than two business days, STO will post
deposit to Agency, general operating fund
“Receipts Held In Suspens e” account (acct
#290900)

Process
4 A: Authorize 10
STO matches Note: Using “semi-manual” process in
B: Record Agency creates
D: Verify I
corresponding bank SHARE, STO will match corresponding adjusting
and system activity bank and system activity. Clear returned journal entries and
checks and deposits adjustments that have
been previously entered in SHARE
updates the G/L
M – CM02 / 3 relieving the
(see CM01.2)
suspense account

5 Process
B: Record
STO will post
deposit adjustment
through a direct To General
A/R journal Ledger

To General
Ledger

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Business Processes CM-02

CM-02 Cash Management – Transaction Reconciliation (Overview) (Control Points)

The State Treasurer's Office researches and clears the unidentifiable deposits from the Suspense Account
M – CM02 / 1
within 90 days.

M – CM02 / 2 A Supervisor in the State Treasurer's Office reviews the Suspense Account items on a monthly basis to
ensure that the unidentifiable deposits are cleared from the account timely and within the same fiscal year.

M – CM02 / 3 Adjusting journal entries are reviewed and approved by a separate individual.

The State Treasurer's Office initiates the Auto-Reconciliation process in SHARE. SHARE process matches
A – CM02 / 4 agency deposits and cleared warrants to Fiscal Agent Bank (FAB) activity.

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FIN 2 – Cash Management Function
Business Processes CM-03

CM-03 Cash Management – Book to Bank Reconciliation

State Treasurer's Office (STO)/Financial
Control Division (FCD)
Process
D: Verify I
E: Verify S
F: Reconcile

2
Subsidiary Systems: Bank Statement Bank Table
PERA, HSD, TRD, SHARE Database
Cash Receipt &
Cash Disbursement etc.
transactions

Process
F: Reconcile

1
Data Entry into 3 9
Subsidiary Systems Cash Management Book to Bank Reconciled Cash
and/or SHARE Module Reconciliation
Modules
M – CM03 / 1
Process
A: Authorize
A – CM03 / 2 D: Verify I

8
Updated GL Actuals Process
B: Record
Ledger
Process
A: Authorize
D: Verify I
E: Verify S

4
6 7
SHARE Modules:
Journalization Journal Posting
AP, AR, PY

Process
5 A: Authorize
D: Verify I
Data Entry (Payment
Load, JE, Operating
Transfer JE, Sub
System JE)

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FIN 2 – Cash Management Function
Business Processes CM-03

CM-03 Cash Management – Book to Bank Reconciliation (Control Points)

FCD (to be taken over by the State Treasurer’s Office at a later date) performs the reconciliation of Book to Bank daily
M – CM03 / 1
that is reviewed and approved by a separate individual.

A – CM03 / 2 SHARE requests second-level approval for data Entry into Subsidiary Systems and/or SHARE Modules.

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Business Processes CM-04

CM-04 Cash Management – QED to SHARE Recon Format (Agency 39401) (Notes)
SHARE QED
(per trial balance) Portfolio Classification Summary

FUND 10099 – State Funds Investment Pool POSITION

FUND 10099 – Consolidated Investment Pool POSITION

TOTAL FUND xxx99 TOTAL POSITIONS

FUND 68599 – ST Investment Pool (LGIP) POSITION

TOTAL FUNDS TOTAL POSITIONS

Explanation of difference between SHARE and QED

(Source: QED Securities Transaction Activity Report)

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FIN 2 – Cash Management Function
Business Processes CM-05

CM-05 Cash Management – Non Grant Cash Deposits (Overview)

Agency State Treasurer's Office Financial Control Division
(STO) (FCD)
Agency Receives
Customer Payment

1
3-part paper Process
A: Authorize
deposit ticket D: Verify I
prepared

M – CM05 / 1

2
Deposit Ticket and cash/checks are
taken to the bank within 24hrs of
receipt. Checks/Money orders 4
processed through electronic deposit Bank Activity is
with 24hrs loaded into SHARE Refer to Accounts
Receivable
Accounts Receivable Process for
Module via Details
Accounts Receivable
3 Load
M – CM05 / 2
Validated deposit ticket
received from Bank or Note:
Deposit ID in SHARE is auto
confirmation of electronic generated. Payment ID ins
deposit has been made SHARE = Deposit Number on
Bank Deposit Ticket (lower left
hand corner)
6
STO reconciles
Deposit ticket retained SHARE deposits to Process
by the Agency for From bank deposit F: Reconcile
research, audit and CM-01.2
posting purposes
M – CM05 / 5
Auto Recon
Items M – CM05 / 4
M – CM05 / 6
8
Are budget SHARE creates
5 checks Yes deposit journal
Accounting entries confirmed? entries via journal
entered, completed, generator
Process and budget checked
A: Authorize M – CM05 / 3
B: Record
E: Verify S
No
Process
B: Record
D: Verify I Process
A: Authorize
B: Record
7 9 E: Verify S
Deposit is posted to Post journal entries
Agencies general to record CASH
operating fund by default
to acct #290900 to be re-
classified by Agency

To General
Ledger
End End

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Business Processes CM-05

CM-05 Cash Management – Non Grant Cash Deposits (Control Points)

The Agency prepares the 3-part paper deposit ticket that is deposited at the bank or is electronically deposited. Bank
M – CM05 / 1
Activity is loaded into SHARE and reviewed and approved by a separate individual.

M – CM05 / 2 Agency validates the deposit ticket received from Bank for accuracy.

M – CM05 / 3 Agency must complete and budget check deposits. Deposits are complete when they are in valid status.

M – CM05 / 4 SHARE runs journal generator at scheduled time. Deposits that are in valid status will be journalized and posted to GL.

M – CM05 / 5 STO verifies all reconciled transactions are marked as complete and budget checked the same day.

The State Treasurer's Office (STO) reconciles the agency deposit using system functionality whereby amount and
M – CM05 / 6
deposit ID must match.

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Business Processes CM-06

CM-06 Cash Management – Wire Transfers (Overview)

Agency Financial Control Division State Treasurer's Office
(FCD) (STO)
Vendor’s Invoice is
paid via wire transfer
Process
A: Authorize
D: Verify I

A – CM06 / 5 Process
1 A: Authorize
Create Voucher in E: Verify S
SHARE and complete
Wire Transfer
Authorization Form M – CM06 / 4
including bank account
information
5
SHARE Workflow 7
transmits Voucher to STO transmits wire
A – CM06 / 1 FCD Audit Bureau instructions to Fiscal
2 for approval and Agent Bank
SHARE performs posting
budget checks
(appropriation &
department) Process
Process A: Authorize
8
A: Authorize 6 E: Verify S
D: Verify I STO receives
FCD Audit Bureau
confirmation of wire
reviews and
from FAB,
approves Voucher M – CM06 / 3 confirming transfer
3 Package
to vendor bank
Approve Voucher
through workflow
Refer to
Accounts
M – CM06 / 2 Payable Process 9
for Details STO sends
confirming email to
DFA and Agency
4
Prepare Voucher
Package for
submission to FCD
Audit Bureau
10
STO reconciles wire
transfers to
CM module
Voucher Package

Process
Note: Voucher Package F: Reconcile
includes: Voucher Report D: Verify I
(batch & individual) E: Verify S
Ori ginal Invoi ces
White Paper(s)
Wire Transfer Request Form
To
CM-01.2

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Business Processes CM-06

CM-06 Cash Management – Wire Transfers (Overview) (Control Points)

A – CM06 / 1 SHARE will systematically perform budget checks (appropriation & department).

M – CM06 / 2 The Agency Manager approves the voucher through workflow.

M – CM06 / 3 FCD Audit Bureau reviews and approves the voucher package before it is approved in SHARE.

M – CM06 / 4 The State Treasurer's Office verifies that proper approval was obtained by authorized individuals prior to executing the
wire transfer to FAB.

A – CM06 / 5 Only authorized personnel have access to create voucher in SHARE.

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Business Processes CM-07

CM-07 Cash Management – Return Item Processing

State Treasurer's Office Agency
(STO)
From Each agency has been assigned their
CM-01.2 own depository bank account. All
bank activit y is loaded into SHARE 3
Process
Accounts Receivable Module.
D: Verify I
Agency identifies
Returns will have negative amounts. returned checks via,
E: Verify S
F: Reconcile Bank Addenda Process
information, NSF A: Authorize
reports in Wells Fargo B: Record
1 or communication with D: Verify S
Return item (NSF) STO
posted to Bank Note: If original accounting
account information cannot be ident ified,
then Agency wi ll post item to
4 receipts held in suspense, account
290900
Agency enters the
accounting string for
the deposit based on
2 M – CM07 / 1 accounting string of
Returns are loaded into the original deposit.
Accounts Receivable Module
along with the deposits.
Negative depos it will be loaded into
5 SHARE Accounts Receivable Module
Agency completes along with regular deposits
and budget checks
the deposit. Must be
in valid status.

6
STO reconciles NSF
items through bank M – CM07 / 2
reconciliation 7
process Journal Generator runs at
scheduled time. Deposits that
are in valid status are
journalized and posted to the
general ledger

End

To General
Ledger

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Business Processes CM-07

CM-07 Cash Management – Return Item Processing (Control Points)

Only authorized STO/Agency individuals are able to enter a negative deposit (reversing entry) into SHARE based on
M – CM07 / 1 accounting information on endorsement.

Daily, the State Treasurer's Office reconciles the NSF items through the Daily bank reconciliation process that is
M – CM07 / 2
reviewed and approved by a separate individual.

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FIN 3 – General Ledger
FIN 3

FIN 3 – Cash Management Function

Policies and Procedures

Business Processes

Beginning of Document

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 3 – General Ledger
Policies & Procedures FIN 3.1

FIN 3.1 Interagency Transactions

A. MAP Standard

To assure accurate reporting, all interagency transactions should be properly prepared, reconciled, and
entered into SHARE.

B. Purpose

This policy establishes the requirement that all state agencies involved in interagency transactions
shall properly classify those interagency transactions to accurately reflect the financial events being
recorded in the financial records.

C. Authority

NMSA 1978, §6-5-2

D. Policy

1. For FCD to approve any interagency transaction, the following must be submitted.

Operating Transfers (OPR)

a. The Financial Control Division (FCD) must receive the OPR Form prepared in
accordance with the OPR Form instructions located on the DFA website under
Information Management Bureau.

i. The header business unit must be 39401.

ii. The first line of the transaction must be a “dummy” line with the business unit 39401,
no fund, department 0000000000, and account 20000.

b. All affected agencies’ transactions must be reflected on the OPR Form.

c. The submitted OPR Form must bear the original signature of the originating agency’s
(paying) Chief Financial Officer (CFO or authorized personnel). The originating
agency must load the OPR into SHARE and ensure the journal entry status is “valid” and
budget status is “valid” for all business units. The originating agency must submit the
OPR to initiate the transaction to go through workflow and have a level 2 approval.

d. If the OPR is impacting numerous receiving agencies, each agency’s CFO or authorized
personnel must approve the OPR within 48 hours from the level 2 approval in
SHARE. The 48 hour deadline starts after the OPR has been initiated and level 2
approval completed by the initiating agency.

By approving the OPR Form online in SHARE’s workflow, each agency’s CFO or
authorized personnel is confirming the validity of the transaction and the accounting

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string(s). If there are any changes indicated on the OPR Form, the data must also be
changed, reloaded into SHARE and resubmitted to ensure proper workflow. The revised
OPR form must also be sent to FCD with the signature of the initiating agency.

e. When using other financing sources/uses (499905 Other Financing Sources and 555100
Other Financing Uses) in an OPR, both accounts should be used for the receiving and
paying agencies, respectfully. When only one other financing account code is used in the
OPR, documentation showing why the transaction is required to be recorded in a non-
other financing account code must be included with the OPR Form.

i. The affiliate and fund affiliate are required on these transactions.

f. For business relationships between agencies that are elimination entries on the CAFR
level financial statements, agencies must use revenue and expenditure codes that end in
“09”.

i. The affiliate and fund affiliate are required on these transactions.

g. If the OPR Form does not comply with the policy, it will be rejected back to the
originating agency for corrections and resubmission.

h. Month end OPRs (last business day of the month) will only be approved by DFA if the
initiating agency’s level 2 approval is reflected in SHARE no later than the last day of the
month. If there are any errors with the OPR, then the OPR will not be accepted for
processing that month and will be rejected back to the agency to resubmit for the
following month.

i. Unless exemption is specifically approved by FCD, all agencies must comply with the
above policy.

Due To and Due From Transactions (Journal Entries and Operating Transfers)

Journal Entry:

a. The Statewide Financial Reporting and Accountability Bureau (SFRAB) must receive the
CFR from both Business Units.

b. Each agency’s CFR must have all corresponding agency’s journal ID in the description or
a copy of the journal entry included with the back-up.

c. No CFR submitted for a Due To or Due From will be posted by SFRAB until the
appropriate corresponding agency’s CFR has been submitted to SFRAB.

OPR:

d. The Financial Control Division (FCD) must receive the OPR Form prepared in
accordance with the OPR Form instructions.

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i. The header business unit must be 39401.

ii. The first line of the transaction must be a “dummy” line with the business unit 39401,
no fund, department 0000000000, and account 20000.

e. When using interagency accounts (142900 – Due From Other State Agencies, 142999 –
Due From Other State Agy Pr Yr, 232900 – Due To Other State Agencies, and 232999 –
Due To Other State Agy - Pr Yr) in an OPR, both accounts must be used for the receiving
and paying agencies, respectfully. When only one interagency account code is used in
the OPR, documentation showing the transaction was previously recorded in a non-
interagency account code prior to July 11, 2014 must be included with the OPR Form.

i. The affiliate and fund affiliate are required on those transactions.

For example, agency A recorded an interagency receivable using account code 142900 –
Due From Other State Agencies; however, agency B recorded an interagency payable in
account code 296900 – Year End Accounts Payable. In this scenario, agency B will be
required to provide documentation that the payable was recorded in account 296900
instead of account 232900 – Due To Other State Agencies.

f. If the OPR Form does not comply with the policy, it will be rejected back to the
originating agency for corrections and resubmission.

Year-End Accruals (Journal Entries and Audit Journal Entries)

a. No Audit Entry (CFR, OPR, CSH journal entry) submitted for a Due To or Due From
will be posted by SFRAB until the appropriate corresponding agency’s Audit Entry has
been submitted to SFRAB.

b. Each agency’s Audit Entry must have all corresponding agency’s journal ID in the
description or a copy of said Audit Entry journal entry, or include the corresponding
agency CFO’s confirmation of the interagency year end accrual. This confirmation
can be done by email or fax.

c. If the Audit Entry is impacting numerous agencies, each agency’s CFO must provide
confirmation. Each agency’s CFO or authorized personnel must approve the journal
entry within 48 hours from the level 2 approval in SHARE. The 48 hour deadline
starts after the journal entry has been initiated and level 2 approval completed by the
initiating agency.

d. By confirming the Audit Entry each agency’s CFO is agreeing to the validity of the
transaction and that their respective agency has also accrued the interagency transaction
using the proper accounts.

e. Agencies can utilize the OPR to accommodate year end accruals, and Due To and Due
From entries. The OPR must have no cash lines inferred on the entry. Utilization of the
OPR will ensure the journal is processed through workflow, the transaction is recorded
on both agencies’ financials, and both CFOs approve the transaction in SHARE.

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f. All agencies must comply with the year end accruals policy even those exempted
from the other sections within this policy. No agency is exempt from the year end
accrual policy.

2. No interagency transactions will be processed through Accounts Payable except for transactions
to any of the enterprise/internal service funds exempted below:

20800 New Mexico Compilation Commission

36100 New Mexico Department of Information Technology
35000 New Mexico General Services Department
36900 New Mexico State Commission of Public Records – Printing and Records (Fund
37100)
41800 New Mexico Department of Tourism – New Mexico Magazine
46000 Expo New Mexico
60600 New Mexico Commission for the Blind – Albuquerque Training Center & Business
Enterprise Program
66200 Miner’s Colfax Medical Center
77000 New Mexico Department of Corrections – Corrections Industries

3. Interagency transactions will be processed through Accounts Payable for payments to agencies
that utilize the Accounts Receivable (Grants Module) in SHARE. Payment to any of these
agencies listed below will not be authorized unless the receiving agency has ensured in SHARE
that the payment method is ACH and not a manual warrant. These agencies include:

34100 New Mexico Department of Finance and Administration

51600 New Mexico Department of Game and Fish
52100 New Mexico Department of Energy and Minerals
63100 New Mexico Department of Workforce Solutions
66700 New Mexico Environment Department
79000 New Mexico Department of Public Safety
80500 New Mexico Department of Transportation

E. Applicability

This policy applies to all state agencies processing transactions through SHARE. The listing of
agencies below can have their distributions processed immediately instead of waiting the 48 hours for
corresponding CFO approvals.

33300 New Mexico Taxation and Revenue Department – Agency Funds Only
33700 New Mexico State Investment Council – Income Distributions Only
34100 New Mexico Department of Finance and Administration, Board of Finance – Project
Draws Only
34100 New Mexico Department of Finance and Administration, Central Payroll
34101 New Mexico State General Fund – Allotments Only
39400 New Mexico Office of the State Treasurer – Income Distribution Only
53900 New Mexico Commissioner of Public Lands – Income Distribution Only

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FIN 3.1a Intra-Fund and Inter-Agency Transactions

A. MAP Standard

To properly identify, eliminate, and report intra- and inter-fund activity in the Comprehensive Annual
Financial Report (CAFR).

B. Purpose

This procedure addresses the requirements of identifying related-party transactions in the general
ledger. To capture all intra- and inter-fund activity, the SHARE chartfields “Affiliate” and “Fund
Affiliate” will be used to identify the related party in the financial transaction. The Affiliate and Fund
Affiliate will be used to properly identify, eliminate, and report all appropriate intra- and inter-fund
activity when deriving the government wide financial statements for the Comprehensive Annual
Financial Report.

C. Authority

NMSA 1978, §6-5-2

D. Policy

1. All financial transactions entered into SHARE that are intra- and inter-fund related will require
the agency to enter the appropriate business unit in the Affiliate chartfield and fund in the Fund
Affiliate chartfield for all general ledger accounts.

2. All applicable financial transactions will include the following:

Manual Journal Entries – CFR, OPR, CSH, AGY, and Audit Entries
Vouchers – See FIN 3.1 Interagency Transactions for agencies allowed to be paid using a
payment voucher
Deposits/Accounts Receivable

3. For all intra- and inter-fund asset and liability accounts (141900, 141999, 142900, 142999,
144900, 144999, 231900, 231999, 232900, 232999, 234900, 234999, and 251909), the Affiliate
and Fund Affiliate must be added to the accounting string in the financial transaction.

4. All income statement (revenues, expenditures, and other financing sources and uses) accounts
deriving from activities between agencies and intra-funds will require the Affiliate and Fund
Affiliate to be added to the accounting string.

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5. Identification of the Affiliate and Fund Affiliate Chartfield:

6. Payments to third parties are not affected by this change. Only transactions between state
agencies and other funds within the business unit are impacted by this policy.

E. Applicability

This policy applies to all state agencies processing transactions through SHARE except for
transactions to any of the enterprise funds exempted below.

41800 New Mexico Department of Tourism – New Mexico Magazine (Funds 38200 and
91900)
46000 Expo New Mexico (Fund 19100)
60600 New Mexico Commission for the Blind – Albuquerque Training Center & Business
Enterprise Program (Funds 02400 and 10460)
66200 Miner’s Colfax Medical Center (Funds 10200, 98500, and 98600)
77000 New Mexico Department of Corrections – Corrections Industries (Fund 07700)

Or to any transaction to any of these Internal Service Funds exempted below:

35000 New Mexico General Services Department

36100 New Mexico Department of Information Technology

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FIN 3.2 Authorizing Transfers

A. MAP Standard

To safeguard cash, cash transfers must be prepared to adhere to the procedures used to record the
receipt and the outflow of money.

B. Purpose

This policy establishes that state agencies must approve all cash transfers for the funds they
administer, except for those initiated by FCD.

C. Authority

NMSA 1978, §6-5-2

D. Policy

1. State agencies may not transfer monies from a fund that they do not administer without written
authorization from the state agency legally authorized to administer the fund.

2. An exception to the above is that FCD may transfer money between funds to satisfy interfund
payables or receivables or to correct errors.

3. Authorization for a cash transfer must appear on the processing document and be approved by
someone authorized to sign the document as indicated on the Signature/Transaction Authorization
form on file at FCD.

E. Applicability

This policy applies to all state agencies.

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FIN 3.3 Operating Transfer Initiated by State Agencies

A. Statement

This procedure addresses the requirements of FCD for completing Operating Transfers.

B. Procedures

State Agency

1. Prepare the Operating Transfer document in accordance with the forms’ completion instructions
and verify the following data:

a. State agency approval must be made by a person authorized to sign the document as indicated
on the Signature/Transaction Authorization form on file at FCD.

b. Date entered must be the date the transaction is prepared and must be within the same month,
as cash entries will not be backdated.

i. The initiating agency must submit the OPR in SHARE to initiate workflow and complete
level 2 approval.

c. The following data must be complete:

Initiating Business Unit Code.

Document Number.
Fund Code.
Business Unit.
Account Chartfield - (Expenditure/Revenue/Balance Sheet Account Code).
Business Unit Name.
Amount from (Debit) or Amount to (Credit).
Amount from Total.
Amount To Total.
If an interagency transactions (see FIN 3.1a Intra-Fund and Inter-Agency Transactions for
specific account codes), the affiliate and fund affiliate are required.

d. The Description Section must be completed, if applicable, cite the law, regulation or rule
authorizing the Operating Transfer. If not, then an explanation of the transaction must be
indicated. Entries should be entered with corresponding debit(s) and credit(s); therefore,
should have a one to one relationship. (Simple entry). This will facilitate the review and
reconciliation process. Note: Operating Transfer(s) can only be printed using the Excel
Spreadsheet (NMS_Journal).

i. Initiating agency of the Operating Transfer must upload the OPR into SHARE, ensure the
OPR is journal status “valid” and budget status “valid” for all business units and submit
the OPR to ensure the transaction is processed via workflow.

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e. The Operating Transfer form must include a signature of the authorized official of the state
agency whose cash will be reduced by the transfer.

f. Supporting documentation submitted with the Operating Transfer must be complete and
should properly justify the transfer. If an accounting line is comprised of more than one
amount, attach a worksheet or calculator tape that indicates the total of the multiple amounts.
This total should agree with amount reflected on the operating transfer.

2. Send the completed Operating Transfer form, a second copy for the agency, and documentation
to FCD.

a. Agencies must adhere to the document standards set forth in FIN 3.6 Journal Entry
Completion.

b. Agencies should reference Documentation Standard located on our DFA website:

http://nmdfa.state.nm.us under Resource Information, Forums, CFO Training 09/26/11,
Document Standard Presentation, and Document Standards Handout 2.

FCD

3. Through an online review of the cash balance, determine the availability of cash to complete the
transfer. Review the Operating Transfer form for proper authorization; completeness and
accuracy of data; and appropriateness of supporting documentation. The following identifies the
data reviewed and the tasks performed as part of the pre-audit function:

a. Ensure that state agency approval is made by someone authorized to sign the document as
indicated on the Signature/Transaction Authorization form on file at FCD on the authorized
signature list on file at FCD.

i. For the transaction to be approved in the current month, it must be initiated by the last
working day of the month and have level 2 approval by the initiating agency.

b. Check the date, especially at month-end, to ensure that, if possible, the document is recorded
in the proper month.

c. Ensure the following data is complete and valid:

Initiating Business Unit Code,

Document Number,
Fund Code,
Account Chartfield (Expenditure/Revenue/Balance Sheet Account Code),
Amount from (Debit) or Amount to (Credit),
Amount from Total, and
Amount to Total.
If an interagency transactions (see FIN 3.1a Intra-Fund and Inter-Agency Transactions for
specific account codes), the affiliate and fund affiliate

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d. Review the Description section to ensure that the laws, regulations or rules authorizing the
Operating Transfer are cited (if applicable), or an explanation of the transaction is indicated
and adequate.

e. Review supporting documentation to verify it is adequate and properly justifies the proposed
transfer. The documentation should include a worksheet or calculator tape that corresponds to
multiple amount reflected on backup that agrees with amount reflected on operating transfer.

f. Ensure that there is a properly signed authorization of the state agency whose cash will be
reduced by the transfer on the Operating Transfer form.

4. Compare the documents to the information on-line and verify the data is correct in SHARE.

5. If the information in SHARE does not match the data on the Operating Transfer, or if the
supporting documentation and explanation are not adequate, return the document to the
originating state agency for correction. Use the Document Rejection Transmittal form to identify
the type of error(s) and the needed corrections. Once corrected, the state agency may resubmit
the Operating Transfer to FCD.

6. If the information on-line is correct and matches the data on the Operating Transfer then post the
transaction in SHARE.

State Agency

7. If a document is returned by FCD, make all necessary corrections in the spreadsheet journal and
re-upload the OPR into SHARE, initiate and reapprove level 2 approval and resubmit the
revised paper document within 5 business days.

8. If the State Agency is notified by email from FCD regarding issues with the OPR, the agency
must correct all errors and respond back electronically within 3 business days.

FCD

9. When the transaction is approved and posted in SHARE, return a copy of the Operating Transfer
to the originating state agency if one was provided by the agency.

State Agency

10. The originating state agency is responsible for distributing copies of the accepted Operating
Transfer to the other affected state agencies.

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FIN 3.4 Operating Transfer Initiated by FCD

A. Statement

FCD will initiate Operating Transfers to distribute allotments from the State General Fund, and to
transfer money from state agencies when necessary to reimburse the payroll account administered by
the FCD Central Payroll Bureau (CPB).

B. Procedures

FCD or CPB

1. Complete the necessary Operating Transfer form following applicable SHARE Instructions.

a. Before input into SHARE, obtain the required authorization signature on the Operating
Transfer form by someone authorized to sign the document as indicated on the
Signature/Transaction Authorization form on file at FCD.

2. Send a copy of the Operating Transfer form to each state agency affected by the transfer, after
the document has been processed.

State Agency

3. Review the transfer.

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FIN 3.5 Journal Entry Documents

A. MAP Standard

State agencies should use the Journal Entry function to process entries in SHARE to reclassify or
adjust existing balances or to correct transactions that were previously recorded.

B. Purpose

This policy establishes the requirement of state agencies to process transactions using the appropriate
procedure.

C. Authority

NMSA 1978, §6-5-2

D. Policy

1. State agencies must use the Journal Entry function to record transactions in SHARE that cannot
be recorded using another type of process. The types of transactions that can be posted through
the Journal Entry function are:

a. Payment vouchers - uploads

b. Payroll warrants - replacements
c. Correcting entries
d. Reclassifying entries
e. Adjusting entries
f. Annual closing entries
g. Restatement entries
h. Transfers to other funds within the same agency
i. Debt service transfers
j. Road fund payroll transfers
k. Audit entries

2. Journal Entries must be entered into SHARE utilizing the Journal Entry function under the
General Ledger Section of SHARE.

3. Agencies are to use only the approved journal entry source codes when preparing journal entries
to be posted to SHARE. The journal entry source codes and their purpose(s) are as follows:

a. CSH Must be used if the journal entry adjusts any combination of ACCOUNT, or FUND
between an agency’s own funds, including subfunds. Examples of journal entries
requiring the use of the CSH source are: 1) Entries made between nominal accounts
from one fund to another; 2) Entries affecting balance sheet accounts from one fund
to another; 3) Entries affecting reclassification of a revenue from one fund to another;
4) Reclassifying expenditures from one fund to another. An agency is to submit all
CSH journal entries to FCD for approval and posting. Please see the journal upload

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process on DFA website: http://nmfa.state.nm.us under Finanacial Control, ,

Information Management Bureau under Operating Transfers.

b. CFR Must be used if the journal entry adjusts any combination of ACCOUNT, or
DEPARTMENT in the SAME FUND with no cash lines inferred (if moving between
departments rolling up to different P-Codes, S-Code, Z-Code, or A-code).
Examples of journal entries requiring the use of the CFR source are: 1) Entries made
between nominal accounts residing in the same department value; 2) Entries affecting
two balance sheet accounts in the same fund; 3) Entries affecting a balance sheet
account and a nominal account in the same fund and; 4) Reclassifying amounts from
one department to another department regardless of other chartfields in the same
fund. An agency is to submit all CFR journal entries to FCD for approval and
posting. If an agency needs to transfer cash between its own funds, then a CSH
journal entry must be used.

c. AGY Used to adjust agency-specific Chartfields (e.g. SUB ACCOUNT, REPORTING

CATEGORY, OPERATING UNIT). These entries are not submitted to FCD for
approval, the agency approves these journal entries. An agency may use an AGY
journal entry to adjust balances between DEPARTMENTS making no ACCOUNT or
FUND change as long as the departments roll up to the same P-Code.

d. OPR Must be used to transfer monies between state agencies

(Business Units). All operating transfers are approved by FCD. Please see the
journal upload process on the FCD website under the Operating Transfers heading in
the Information Management webpage at
http://nmdfa.state.nm.us/Information_Management.aspx .

e. EXT Used to record Payment Load transactions.

f. EX3 Used to record 3rd Party Warrants issued by agency external subsystems.

g. ACH Used to record 3rd Party ACH transactions issued by agency external subsystems.

h. WCN Used to record warrant cancellations that must be submitted to FCD for approval and
posting.

i. ALT Used by DFA (only) to process allotments.

Note: Currently, agencies are required to submit all CFR, CSH, OPR, EXT, and WCN journals to
FCD for approval and posting; while, AGY journal entries are not processed by DFA. DFA has
decided that beginning in April 2009, the CAFR Unit will review all AGY journals posted. The CAFR
Unit will reverse any AGY journal entry that was used to make inappropriate adjustments. Upon
notification, by the CAFR Unit, the agency will be required to submit the adjustment as a CFR or
CSH to FCD.

4. The Agency’s Accounting Section must approve all AGY (non-affecting Fund) Journal Entries
after receiving and reviewing the supporting documentation.

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5. Journal Entries that use the CSH and CFR source must be forwarded to DFA/FCD for final
approval.

6. The Journal Entry function is also used with Operating Transfers to transfer cash between funds
within the same agency.

E. Applicability

This policy applies to all state agencies.

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FIN 3.6 Journal Entry Completion

A. Statement

This procedure addresses the processing of Journal Entries.

B. Procedures

State Agency

1. Prepare the Journal Entry. Use internal procedures to determine the codes and data needed for
the Journal Entry, and complete and verify the accuracy of the following:

a. Document Number – number cannot exceed 10 characters and can contain only those
characters authorized by FCD. The document number must be unique. Authorized
characters include alpha, numeric, and these special characters (* / - , $ %). All other
characters may not be used and are not authorized to be used in the document number field.
System assigned numbers can be generated by utilizing the Add button shown in the Create
Journal Entry screen under the General Ledger Function. Navigation to this screen is General
Ledger/Journals/Journal Entry/Create Journal Entries/Add a New Value.

b. Enter the data required for the Journal Entry. For all CFR journal entries, the first accounting
line of the journal entry must contain a department value in order for the entry to go through
the workflow process. If you entry does not require a department value a dummy line 1
should reflect a your agencies’ business unit, fund, department code, balance sheet account
that does not require an affiliate and fund affiliate and zero amount, in order for entry to go
through the workflow process. CFR journal entries can either be created directly in SHARE
or the Journal Entry Upload process can be utilized. For CSH journal entries, they must be
done using the Journal Entry Upload. The header business unit needs to be 39401 and the
first line needs to be the “dummy” line of business unit 39401, no fund, department of
0000000000, and account code of 200000. For OPR journal entries, they must be done
using the Journal Entry Upload. The header business unit needs to be 39401 and the first line
needs to be the “dummy” line 1 of business unit 39401, no fund, department of 0000000000,
and account code of 200000.

c. Attach the required supporting documentation to the Journal Entry. Any document generated
from SHARE that provides the necessary support for the journal entry will be accepted to
support the adjustment. If an accounting line is comprised of more than one amount, attach a
worksheet or calculator tape that indicates the total of the multiple amounts. This total should
agree with the amount reflected on the journal entry. All backup should be 8 ½ x 11.

d. State in the explanation box the justification for the Journal Entry. (If the justification is
complete and accurate, it can help the preparer determine the appropriateness of the
supporting documentation). Entries should be entered with corresponding debit(s) and
credit(s); therefore, should have a one to one relationship (simple entry). Completing this
process will facilitate the review and reconciliation and review process. Print the Journal
Entry Detail Report.

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e. Affix the original authorized signatures approving the Journal Entry. State agency approval
must be made by a person on the authorized signature list on file at FCD.

f. Complete the Journal Entry.

g. Agency level 2 approver must approve the document on-line through the Process drop down
box found in the Lines Tab and selecting the “Submit Journal” option.

h. If the Journal Entry affects revenue accounts, the commitment control button is defaulted to
“Actuals, Recognize and Collected”. This will ensure that any Revenue Budget Reports will
accurately reflect revenue collected.

2. Document Standards.

a. If the adjustment is a sum of several amounts, a calculation needs to be provided summing all
applicable amounts including notations next to the amounts included in the calculation.

b. For imaging purposes, only 8 ½ by 11 documents will be accepted. Any documents

submitted larger than 8 ½ x 11 will be rejected.

c. Underline pertinent information instead of highlighting the information due to the fact the
highlighted amounts do not image correctly.

d. Only one staple in the middle of the journal is allowed. Do NOT paperclip your documents
together. Do NOT paperclip your documents together.

e. Order for the journal entry should be: original journal entry, supporting documentation and
the last page should be a copy of the first page of the journal entry to be returned to the
agency once posted. The original journal entry with supporting documentation will be
imaged after posting.

f. All the pages of the journal entry (journal entry and support) should read like a book.

i. To determine if the journal is in the correct format, hold the stapled side in your left hand
and ensure it can be read like a book.

g. Agencies should reference Documentation Standard located on the DFA website:

http://nmdfa.state.nm.us under Resource Information, Forums, CFO Training 09/26/11,
Document Standard Presentation, and Document Standards Handout 2

3. Deliver the completed Journal Entry to FCD.

FCD

4. Through an online review of the cash and budget balance, determine the availability of cash to
complete the transfer/journal entry. Review the document for proper authorization; completeness
and correctness of data; and appropriateness of supporting documentation.

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5. If there are errors or if the supporting documentation requires further justification or explanation,
return the document to the originating state agency for correction. Use the Document Rejection
Transmittal form to identify the error(s) and needed corrections.

State Agency

6. If a document is returned by FCD, make all necessary corrections and resubmit the document
along with the signed Document Rejection Transmittal form within 5 business days.

7. If the State Agency is notified by email from FCD regarding issues with the journal entry, the
agency must correct all errors and respond back electronically within 3 business days.

FCD

8. If the Journal Entry and supporting documentation are without errors, review the transaction in
SHARE.

9. Compare the documents to the information on-line and verify the data is correct in SHARE. If
the information in SHARE does not match the data on the Journal Entry, reject the document and
return it to the agency for correction.

10. If the information matches the data on the journal entry in SHARE, post the entry. If the
transaction fails to post (i.e., it fails the SHARE edits), return the Journal Entry to the originating
state agency. Use the Document Rejection Transmittal form to identify the error(s) and needed
correction. Once corrected, the state agency may resubmit the Journal Entry to FCD.

State Agency

11. If a document is returned by FCD, make all the necessary corrections and resubmit the document
along with the signed Document Rejection Transmittal form within 5 business days.

12. If the State Agency is notified by email from FCD regarding issues with the journal entry, the
agency must correct all errors and respond back electronically within 3 business days.

FCD

13. When the transaction is approved and posted in SHARE, if supplied by the agency, return a copy
of the posted Journal Entry to the originating state agency.

State Agency

14. Review all SHARE transactions to ensure the transaction was processed correctly. This process
can include running reports or queries out of SHARE to validate the data.

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FIN 3.7 FCD Pre-Audit of the Journal Entry

A. Statement

This procedure outlines the steps taken by FCD to pre-audit Journal Entries.

B. Procedures

FCD

1. Upon receipt of the Journal Entry, FCD Financial Management Bureau reviews the following
fields on each line for proper completion:

All OPRs and CSH journal entries must be completed via the Journal Upload Process.

* The header business unit must be 39401

* The first line of the transaction must be the “dummy” line of BU 39401, no fund,
department of 0000000000, and account code of 200000.

a. Document Number (must adhere to document numbering conventions in FIN 3.6 Journal
Entry Completion). Document number must be unique and should not be duplicate
number.

b. Business Unit Code.

c. Date – Date must be within the same month; transactions affecting cash cannot be back dated
if the economic event has not yet occurred.

d. Budget Fiscal Year [must have two (2) digits, and reference the correct year, since Journal
Entries can be used to affect fiscal years other than the current one, especially in the case of
multi-year appropriations]. The budget fiscal year is required for all entry lines containing a
revenue or expenditure account code.

e. Fund [must have five (5) digits].

f. Class code – should correspond to the budget fiscal year affecting revenue or expenditure
account codes.

g. Department Value (must have 10 digits unless referencing the values that were assigned to
capital project appropriations (“A” codes), single line appropriations (“S” codes), or special
appropriations (“Z” codes)). Refer to the Budget Instructions for the values that have been
assigned. The first accounting line of the journal entry must contain a department value in
order for the document to go through the workflow process.

h. Account Chartfield [expenditure, revenue or balance sheet account codes – must have six (6)
digits].

i. Reporting Category – Rpt Cat (if applicable).

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j. Debit Amount or Credit Amount (must be entered and be consistent with the intent expressed
in the Long Description Box and agree with the supporting documentation).

i. If an interagency transactions (see FIN 3.1a Intra-Fund and Inter-Agency Transactions

for specific account codes), the affiliate and fund affiliate chartfields must be populated.

k. Transaction Long Description (should state what the purpose of the Journal Entry is).

l. Approval tab shows the document has been initiated and level 2 approval by the agency.

2. Review the supporting documentation attached to the Journal Entry to ensure that it is complete
and appropriate, and that it supports the following:

a. A legitimate basis or reason for the transaction as submitted.

b. The necessity of the proposed transaction.

c. Agreement between the accounting line information provided on the face of the Journal
Entry and the stated reason.

3. If there are no errors, approve the Journal Entry.

4. If the Journal Entry requires correction, clarification, authorization, or additional support

documentation, return the document to the originating state agency, with a copy of the Document
Rejection Transmittal form.

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FIN 3.8 General Accounting Procedures – Year End Closing

A. MAP Standard

State Agencies should prepare the required budgetary and accounting transactions to close the
fiscal year. FCD will review the transactions for their propriety and process them. FCD will be
responsible for the closing process of the fiscal year in SHARE.

B. Purpose

This policy outlines the events and timing necessary for completing the posting of transactions
needed to close the fiscal year.

C. Authority

NMSA 1978, §6-3-23 through §6-3-25, §6-4-6, §6-5-2.1 (A), (E), (L), §6-5-10
Rule 2.20.5.8 NMAC
Rule 2.20.2 NMAC

D. Policy

1. Budget –

a. Agencies may request adjustments to their budgets to accommodate changes in their financial
operations during the fiscal year. Allowable adjustments are defined in statute and in the
General Appropriation Act and are subject to approval by the State Budget Division (SBD)
and the Capital Outlay Bureau (for capital projects) of the Department of Finance and
Administration. Budget adjustment requests must be entered into SHARE and submitted to
SBD by May 15, 20XX.

b. Multiple year operating and capital projects budgets remain valid as long as the appropriation
period has not lapsed and the budget has DFA approval. Agencies must reestablish the
remaining balance of multiple year and capital projects budgets, which have legislative
reauthorization.

2. Reversions –

a. Any unexpended or unencumbered balance remaining in the budget at the end of the fiscal
year shall revert to the General Fund or the source fund.

b. Based upon the date requirement set by the General Appropriation Act of each fiscal year, on
or about August 31, 20XX is the submission deadline for the Reversion Notification form to
FCD. At the end of the fiscal year, agencies must not reserve unexpended amounts as part of
fund balance.

c. September 30, 20XX is the deadline for entering Operating Transfers in SHARE for
reversions due for the previous fiscal year.

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3. Encumbrances –

a. Certain encumbrances may be carried forward based upon the appropriation language from
Legislation. Encumbered funds that do not revert at the end of the appropriation period must
be re-budgeted in the new fiscal year. The amount re-budgeted shall equal the amount of
valid encumbrances. Agencies must re-establish all valid, outstanding encumbrances
associated with multiple year and capital project budgets. Valid encumbrances for the new
fiscal year must be re-established after July 1, 20XX.

b. Modifications to purchase orders (change orders) to accommodate necessary increases or

decreases shall be completed. Agencies must disencumber invalid encumbrances including
current and prior year encumbrances. The deadline to submit change orders to FCD is
established by FCD.

c. Encumbrances for professional services should be committed only to the amount related to
services that will be performed and accepted prior to June 30, 20XX.

4. Accounts Payable –

a. Goods and services must be received by June 30, 20XX to qualify as accounts payable for the
fiscal year being closed and meet compliance with the requirements of full accrual basis of
accounting. Encumbrances for professional services should be committed only to the amount
related to services that will be performed and accepted prior to June 30, 20XX.

b. Payment vouchers for accounts payable as of June 30, 20XX may be submitted from July 1
through the date determined by FCD.

c. Requests for Approval to Pay Prior Year Bills for invoices not submitted for payment by the
deadline established by FCD will be accepted by FCD beginning on the date as required in
the year-end closing instructions.

5. Cash Receipts –

Cash receipts must be deposited with the State Fiscal Agent Bank before the close of business
on June 30, 20XX to be credited to the fiscal year being closed. Cash receipts will be credited
to the Fiscal Year based on when the monies post to the State Fiscal Agent Bank accounts.

Per NMSA 1978, §34-6-37, all activity for the Judicial District Court accounts must be reported
to STO by 12:00 noon of the deadline set by FCD in the year-end closing instructions. The
STO excel deposit slip must be faxed to (505) 955-1182 to assist STO in transferring the
amounts to the proper accounts and/or business units. STO will draw these amounts from the
Judicial District Court accounts and transfer them to their fiscal agent bank by June 30, 20XX.

The Administrative Office of the Courts (AOC) provides further instructions at their annual
AOC Chief Financial Officers’ meeting.

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6. Cash Disbursements –

a. Payment vouchers to be processed prior to the fiscal year’s end must be submitted by the
deadline set by FCD.

b. Requests to replenish petty cash funds must be received by the date established by FCD in the
year-end closing instructions.

7. Operating Transfers –

An operating transfer requiring the exchange of cash between agencies and/or funds shall be
submitted to FCD as required in the year-end closing instructions. Proper authorization from
the designated fund administrators shall be provided with the operating transfer. The transfer
shall be submitted in the form of a journal upload for transfers between agencies or be entered
on-line for transfers between funds.

8. Correction Entries –

Entries to reclassify or post transactions affecting the fiscal year being closed (i.e., journal
vouchers processed through Accounts Payable and journal entries affecting cash processed
through the General Ledger) must be received by the deadline set by FCD.

9. Reports –

a. The monthly verification of an agency’s financial records to SHARE reports is considered a

standard operating procedure. Each agency is responsible for running financial year-end
reports. To facilitate fiscal year end closing, agencies shall verify and validate their financial
records to SHARE reports by June 15, 20XX. Agencies are strongly encouraged to use the
Validating the Trail Balance Manual that can be obtained from the FCD website under the
Resource Information/Manuals web page, http://nmdfa.state.nm.us/Manuals.aspx.

10. Miscellaneous –

a. Fund Maintenance forms – Fund codes which need to be added, changed, or deleted prior to
the new fiscal year will require a Fund Account Maintenance form to be sent to FCD by April
30, 20XX.

b. Chartfield Maintenance forms – Account chartfields that need to be added, changed, or

deleted prior to the new fiscal year will require a Chartfield Maintenance form to be sent to
FCD by April 30, 20XX.

c. Chief Financial Officer (CFO) – Agencies shall submit written designation of their CFO for
the new fiscal year by the date established by FCD in the year-end closing instructions.

d. Warrant Cancellations – Requests for warrants to be cancelled and not reissued shall be
submitted to FCD with the original documentation by the deadline set by FCD.

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e. Authorized Signatures – All agencies must have valid signature authorizations on file to sign
contracts, payment vouchers, purchase documents, or other financial commitments.
Signature authorizations currently on file with FCD and SBD are valid only for documents
dated on or before June 30, 20XX. Signature authorizations for the new fiscal year are due at
FCD by the date established by FCD in the year-end closing instructions.

f. Positive Cash Balance – Funds that have been authorized by FCD to be drawn into a deficit
during the fiscal year must be restored to a positive or zero balance by the 2 nd Friday of June
20XX to meet the statutory deadline of June 30. An exception to this are the funds identified
in the Cash Management Improvement Act (CMIA) agreement between the State and the
Federal government.

g. Payroll – Expenditures for the period ending June 30, 20XX will be posted to the fiscal year
in SHARE on or after July 10, 20XX.

E. Applicability

This policy applies to all state agencies.

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FIN 3 – General Ledger
Business Process – GL-01

GL-01 General Ledger – Operating Transfers

Agency Providing
Goods or Services Paying Agency Financial Control Division(FCD)
Process
A: Authorize
6 D: Verify I
Operating Transfer
Transaction between rejected FMB
Agencies Process notifies Paying
A: Authorize
Agency
D: Verify I

1 2
Agency issues 5
invoice to paying Paying agency prepares
Agency for goods or Operating Transfer using FCD reviews Operating
services provided spreadsheet journal Transfer
Process
import template
A: Authorize M – GL-01 / 3
D: Verify
M – GL-01 / 1
Operating
3 Transfer No
Submit the Operating Process OK?
Transfer (txt flatfile) via A: Authorize
email to SU E: Verify S
No Yes

7
4
SU loads Operating
Submit printed Operating
Transfer (txt flatfile) into
Transfer and required
SHARE
backup to FCD for
approval A – GL-01 / 4
Printed copy of B
completed Operating
Upload
Transfer is received Printed copy of M – GL-01 / 2 No
OK?
from Paying Agency completed Operating
Transfer is received
from DFA/FCD
Yes

13 8
Validate accuracy of Process Operating Transfer is
D: Verify I edited and budget
accounting lines on E: Verify S
Operating Transfer F: Reconcile checked by SHARE
12 Process
after it posts D: Verify I A – GL-01 / 5
Validate accuracy of
E: Verify S
accounting lines on F: Reconcile
Operating Transfer
after it posts Edit & Budget No
Accounting check OK?
No
String OK?

End
13a Process
Providing Yes A: Authorize
B: Record
agency enters a
Yes
correcting JE in 9
SHARE Post
Operating Transfer

Amount OK?
10
Transfer Funds
Yes

End 11
Printed copy of
Operating Transfer B
sent to Paying
Agency

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FIN 3 – General Ledger
Business Process – GL-01

GL-01 General Ledger – Operating Transfers (Control Points)

M – GL-01 / 1 The Operating Transfer must include a signed authorization of the agency whose cash will be reduced by the transfer.

Supporting documentation that is complete and properly justifies the transfer must be included with the Operating
M – GL-01 / 2
Transfer that is sent to DFA/FCD for processing.
Agency approval must be made by a person authorized to sign the document as indicated on the Signature/Transaction
M – GL-01 / 3 form on file DFA/FCD. Prior to processing the DFA/FCD validates the Operating Transfer to ensure that approval was
obtained from an authorized individual.

SHARE systematically rejects uploading flatfiles by preventing operating transfers with incorrect Charfields to continue
A – GL-01 / 4 on to the edit and budget check. Upon notification of an unsuccessful upload, the FCD will notify the paying agency
through a rejection form.

Upon an automated review by SHARE, operating transfers are rejected during the edit and budget check if it is
A – GL-01 / 5 discovered there is insufficient budget. Upon notification of an unsuccessful upload, the FMB will notify the paying
agency through a rejection form.

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FIN 3 – General Ledger
Business Process – GL-02

GL-02 General Ledger – Journal Entry

Agency Financial Control Division (FCD)

Journal Entry needed

Process
A: Authorize
C: Record
D: Verify I

1
Create a Journal M – GL-02 / 1
Entry into SHARE
G/L Module A – GL-02 / 2

2
Fill SHARE required
fields

3
Print Journal Entry Process
Detail Report and E: Verify S
Support
Documentation Process
E: Verify S
M – GL-02 / 3 M – GL-02/ 4

Agency Authorized
FCD reviews
Personnel approves
supporting
online & submits
documentation for
Journal Entry online
accuracy.

J/E Detail Report 4

and Support Submit the complete
Documentation package to be FCD approves and
approved by the posts Journal Entry.
FCD M – GL-02 / 5

Note:
Include the voucher number referenced
and the explanation of the purpose of
the Journal Entry is stated completely Journal Entry is
and accuratel y in the long description
area to allow the approver to determine Review and verify imaged and a copy is
the appropriateness of the transaction reports sent to the agency
and the supporting documentation

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FIN 3 – General Ledger
Business Process – GL-02

GL-02 General Ledger – Journal Entry (Control Points)

M – GL-02 / 1 Journal Entries are reviewed and approved by an individual separate from the preparer.

A – GL-02 / 2 SHARE limits access to enter journal entries to authorized personnel.

M – GL-02 / 3 Journal Entries are reviewed and approved by appropriate supervisory personnel after entry into SHARE.

M – GL-02/ 4 Supporting documentation is reviewed and is compared to the journal by FCD.

M – GL-02/ 5 Journal Entry is approved by appropriate supervisory level at FCD.

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Business Process – GL-03

GL-03 General Ledger – Year End Closing

Agency Financial Control Division (FCD)

A – GL-03 / 1 A – GL-03 / 1

3 BUDREF
Establish new Cl ass Values
2 1 New Agencies
Combocodes and
Establish new Establish new
Task Profiles for
budgets Chartfield Accounts
non-project task
profile agencies

Process Process
C: Record C: Record
D: Verify I D: Verify I
E: Verify S E: Verify S

Process
C: Record
5 D: Verify I
4 Perform initial E: Verify S
Continue budget review that all
A611 configuration. entries have been
A/P Detail
processed M – GL-03 / 2
Encumbrance Report
Budget Status Report

8 7
9 6
Establish combo Run Final Journal
Run Closing Close Submodules
code and task profile Generation for All Process
Reports for year. C: Record
for projects Modules

A – GL-03 / 6

10 Process
Review and Verify D: Verify I
M – GL-03 / 5 Reports
E: Verify S

M – GL-03 / 3

Note: The agencies are 11

required on a monthly basis Process Adjusting See GL02 for
to validate the Agency’s Journal Entries JE Process Flow

Transactions in the SHARE

system. M – GL-03 / 4

13
Process
12 Verify Year-end 14 C: Record
Re-run Reports Closing Process Run Year End
and Verify Checklist, resolve Closing
any issues.

A – GL-03 / 6

16
15
Review and Verify
Run Final Reports
Reports

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Business Process – GL-03

GL-03 General Ledger – Year End Closing (Control Points)

A – GL-03 / 1 SHARE limits access to create new Chartfields, Combo codes and Task Profiles to authorized personnel.

Initial and Supervisory review performed to determine that all entries have been logged and verified against a checklist
M – GL-03 / 2
to assure that all have been received and processed.

M – GL-03 / 3 Agency performs Initial and Supervisory review of reports to identify any issues which need correction.

M – GL-03/ 4 Journal Entries are reviewed and approved by an individual separate from the preparer.

M – GL-03/ 5 The Agencies are required on a monthly basis to validate the Agency’s Transactions in the SHARE system.

A – GL-03 / 6 SHARE limits access to process journal entries and perform closing procedures to authorized personnel.

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FIN 4 – Purchasing
FIN 4

FIN 4 – Purchasing

Policies and Procedures

Business Processes

Beginning of Document

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FIN 4 – Purchasing
Policies & Procedures FIN 4.1

FIN 4.1 Purchase Orders

A. MAP Standard

Encumbrances for goods or services should be properly documented, fully funded, and be related to a
specific procurement.

B. Purpose

This policy establishes that the Purchase Order form must be used for all commitments for goods or
services. The one exception to not having a Purchase Order is Agency to Agency transactions.
Agency to Agency transactions should be established by a requisition since these transactions are
exempt from the procurement code under NMSA 1978 Section 13-1-98.A..

C. Authority

NMSA 1978, §6-5-2

NMSA 1978, §13-1-98.A.

D. Policy

1. All commitments to purchase goods or services must be documented by a properly completed

Purchase Order for goods or services by an external vendor. Agency to Agency transactions
should be established by a requisition.

2. State agencies must use the Purchase Order form, approved by the State Purchasing Division, to
order goods or services and to support encumbrances for external vendors. Agency to Agency
transactions should be established by a requisition.

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FIN 4 – Purchasing
Policies & Procedures FIN 4.2

FIN 4.2 Payment of Prior Year Expenditures

A. MAP Standard

To comply with state laws, rules and regulations, encumbrances must be charged to the budget period
in which the expenditure was incurred, unless permission to pay prior year’s bills is obtained from
FCD.

B. Purpose

This policy establishes the requirement that state agencies must comply with to obtain written
approval from FCD to pay prior year bills from a subsequent fiscal year’s budget when the
commitment is not encumbered or paid in SHARE in the correct fiscal year.

C. Authority

NMSA 1978, §6-5-2

NMSA 1978, §6-10-4

D. Policy

1. Unless approved in writing by FCD, prior year obligations that were not encumbered or paid in
the year that the obligation was incurred cannot be paid from General Fund appropriations or
Other State funds in the subsequent fiscal year.

2. To request written approval for payment of prior year obligations that were not encumbered or
paid in the appropriate fiscal year, state agencies must submit the Request for Approval to Pay
Prior Bills form and the justification form to FCD. The payment of prior year bills with federal,
other state funds, bond or State General Fund capital outlay funds also requires approval to pay
prior year bills unless a policy exemption is obtained from FCD.

3. Prior to granting approval, FCD shall certify that there was sufficient budget and sufficient cash
in the state agencies’ accounts at the end of the fiscal year to pay the obligation had the bill been
presented for payment prior to the end of that fiscal year.

4. State agencies exempt from processing Purchase Orders through FCD must certify in writing to
FCD, prior to paying a prior year obligation from current year budget, that there remained
sufficient cash and sufficient budget in the state agencies’ accounts at the end of the fiscal year to
pay the obligation had the bill been presented for payment prior to the end of that fiscal year.

5. Written approval from FCD or written certification for payment of prior year obligations against
current year budget must be kept on file at the state agency for no fewer than three years from the
date that certification was made or written approval was obtained.

6. To pay a prior year bill, include a copy of the FCD approved request with the payment voucher
and invoice. Regardless of the amount of the bill, if it is paid within 30 days after the request is
approved by FCD; do not encumber the amount, unless it is related to a Professional Services
Contract (PSC), Joint Powers Agreement (JPA), or Memorandum of Understanding (MOU). If

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the bill has passed the 30 days granted in the FCD approval, encumber the bill using the
expenditure account code, 547999 Miscellaneous Expense – Request to Pay Prior Year (RTPPY),
and attach a letter from the State Agency CFO explaining why the payment was not made in a
timely manner.

7. Approved Requests to Pay Prior Year Bills (RTPPY) must use account 547999 – Miscellaneous
Expense on the voucher regardless of the type of service provided.

E. Applicability

This policy applies to all state agencies.

Note: Refer to the Fiscal Year 20XX Year End Closing Instructions for more information on the
Request to Pay Prior Year Bills process.

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FIN 4 – Purchasing
Policies & Procedures FIN 4.3

FIN 4.3 Type of Purchase

A. Statement

State agencies must identify the type of agreement (order) that will be used to make a purchase, or
under which exemption the purchase will be made.

B. Procedures

State Agency

Select the Purchase Order and the type of origin under which the purchase will be made.

Types of agreements and exemptions:

1. Purchase Requisition – This origin is selected when bids or price quotes must be obtained prior to
a purchase and the State Purchasing Division (SPD) will make the final award. The final awards
become state agency price agreements, contracts or purchase orders. When the Purchase
Requisition box is selected, state agencies can recommend a vendor from whom to purchase.
This box should not be selected for professional services contracts, because these contracts are
not awarded by SPD.

2. Price Agreement, Purchase Order, Contract – This origin is selected when the procurement is
made under an existing price agreement, contract or purchase order issued by SPD. When this
origin is selected, enter the SPD contract number and the expiration date in the space provided.

3. Direct Purchase Order (DPO) – This origin is selected when the proposed purchase, which will
be charged to an expenditure account code, is less than $20,000, (2 quotes-best obtainable price).

4. Exempt from the Procurement Code – This is selected when the planned procurement is listed in
the “Exemptions from the Procurement Code”, section of NMSA 1978, §13-1-98. State agencies
must cite the section of the State Procurement Code and the specific item of the law (letter A-HH)
that exempts the purchase from the requirements of the procurement code.

5. This is selected when the planned procurement is listed in the “Excluded from Central Purchasing
through the State purchasing agent”, section of NMSA 1978, §13-1-99. State agencies must cite
the section of the State Procurement Code and the specific item of the law (letter A-N) that
excludes the purchase from procurement through the State Purchasing Agent.

6. For Encumbering Purposes Only – This is selected for the following types of purchases:

a. For a joint powers agreement or memorandum of understanding and governmental service

agreements. Select “JPA” for joint powers agreement or “MOU” for memorandum of
understanding or “GSA” for governmental service agreements.

b. For rents, legal settlements, grants, scholarships, and other items that are not accommodated
by any of the other boxes. In the space provided, enter a description of the type of purchase
proposed.

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Consult with agency CFO if a question arises about which box to use.

FCD

7. If the Purchase Order is not completed as stated above, recycle it to the originating state agency.

C. Applicability

This policy applies to all state agencies.

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FIN 4 – Purchasing
Policies & Procedures FIN 4.4

FIN 4.4 Encumbrances

A. MAP Standard

Encumbrances must be recorded as soon as a commitment (open purchase order) is made by the
agency. To assure legal compliance, a commitment may not be entered into until it is determined that
sufficient unexpended and unencumbered budget authority exists.

B. Purpose

This policy establishes the requirement that state agencies must record encumbrances timely and
accurately, and that state agencies must verify that sufficient budget is available prior to making the
commitment.

C. Authority

NMSA 1978, §6-5-2

D. Policy

1. State agencies are required to follow FCD policies governing specific encumbrances, unless a
Request for Policy Exemption on Encumbrances is authorized in writing by the FCD
Director/State Controller.

2. State agencies must verify that there is sufficient budget available to fund the commitment before
issuing a Purchase Order to a vendor, before receiving goods, and before allowing work to be
performed.

3. When the amount charged to any expenditure account code is more than $5,000, state agencies
that process documents through SHARE must prepare a Purchase Order. FCD will audit and
approve the encumbrance before contracting or committing with the vendor.

4. When the amount charged to any expenditure account is less than $5,000, state agencies that
process documents through SHARE must prepare a Purchase Order for the agency’s chief
financial officer approval before contracting or committing with the vendor.

E. Applicability

This policy applies to all state agencies.

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FIN 4.5 Exemptions from Compliance with Encumbering Policies

A. Statement

State agencies must comply with FCD encumbrance policies unless they receive a specific written
exemption from FCD.

B. Procedures

State Agency

1. To obtain an exemption from compliance with FCD encumbering policies:

a. Complete the Request for Policy Exemption form.

b. Submit the form to the FCD Director/State Controller.

c. Attach any appropriate supporting documentation or indicate the statute or regulation that
justifies the exemption.

FCD

2. If the exemption is approved, the FCD Director will sign the form and return it to the originating
state agency. If the exemption is denied, the unsigned form will be returned to the originating
state agency.

3. Exemptions from compliance with FCD encumbering policies must be requested and approved
for each fiscal year unless specifically revoked by FCD.

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FIN 4 – Purchasing
Policies & Procedures FIN 4.6

FIN 4.6 Purchase Order $5,000 or Less (Direct Purchase Order)

A. Statement

To process Purchase Orders for $5,000 or less follow the procedures below.

B. Procedures

State Agency

1. Complete the Purchase Order in SHARE and check the Direct Purchase Order box. Attach all
supporting documentation to purchase order.

2. Submit the original, signed Purchase Order to the vendor.

3. When processing at fiscal year-end, agencies must approve purchase orders and purchase order
change orders less than $5,000 on or before June 30, 20XX for goods and services that will be
received by June 30, 20XX.

FCD

4. Purchase Orders $5,000 or less, are not approved by the FCD Audit Bureau. This is the
responsibility of the state agency.

State Agency

5. If the Purchase Order and supporting documentation are without errors, review the transaction in
SHARE.

6. Compare the document to the information on-line and verify the data is correct in SHARE. If the
information in SHARE does not match the data on the Purchase Order, correct the information
and post the transaction in SHARE.

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Policies & Procedures FIN 4.7

FIN 4.7 Purchase Order More Than $5,000 less than $20,000 for: Purchases Exempt
from State Procurement Code or State Purchasing Agent

A. Statement

To process a Purchase Order over $5,000 when the purchase is exempt from the procurement code
and/or exempt from the State Purchasing Agent follow the procedures below.

B. Procedures

State Agency

1. omplete the Purchase Order, and select either (EXE) “Exempt from the N M Procurement Code”
or (EXC) “Excluded from Procurement through State Purchasing”, whichever is applicable.

Note: for purchases in this dollar range, agency must obtain 2 quotes-best obtainable price.

a. For purchases exempt from the procurement code – cite the section of the State Procurement
Code (NMSA 1978, §13-1-98) and the specific item of the law (letter A through HH) that
exempts the purchase from the procurement code.

b. For purchases exempt from the State Purchasing Agent – cite the section of the State
Procurement Code (NMSA 1978, §13-1-99) and the specific item of the law (A-N) that
exempts the purchase from the authority of the State Purchasing Agent.

c. Enter the completed Purchase Order on-line in SHARE and attach required supporting
documentation.

FCD

2. The FCD Audit Bureau staff will run a daily on-line Query Purchase Order Report to review and
approve purchase orders or change orders for their assigned block of agencies.

3. The FCD Audit Bureau will audit the Query Purchase Order Report for completeness and
correctness of data and appropriateness of supporting documentation if required.

4. If there are errors or if further justification is required, the FCD Audit Bureau will recycle the
document to the originating state agency for correction. The SHARE comment box in the
purchase order will have the FCD Audit Bureau comments indicating the reason for the document
being recycled back to the state agency.

State Agency

5. If a document is recycled by the FCD Audit Bureau, make all necessary corrections and approve
the purchase order document. FCD Audit Bureau comments indicating the reason for the
document being recycled or State Agency response comments should not be altered or omitted.

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FCD

6. If the Purchase Order and attached supporting documentation are without errors, review the
transactions in SHARE.

7. If the on-line information and the date are correct in SHARE, the purchase order will be approved
by the FCD Audit Bureau.

8. Once the document is approved on-line, the system will batch process the purchase order to
dispatch.

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FIN 4.8 Purchase Order for Requisition Greater Than $20,000 but Less Than $60,000
from State Purchasing

A. Statement

To process a Purchase Order form for a requisition greater than $20,000 by a state agency, follow the
procedures below. These procedures are delegated to the state agency from the State Purchasing
Department.

B. Procedures

State Agency

1. Prepare a Purchase Order form. Identify the item(s) to be purchased, check the Purchase
Requisition box, and attach any supporting documentation required. Submit the completed
Purchase Order upon state agency’s approval to FCD.

Note: for purchases in this dollar range, agency must obtain three formal quotes.

2. Manually pre-audit the Purchase Order for proper authorization; completeness and correctness of
data; and appropriateness of all supporting documentation.

3. For each vendor receiving an award in the bid process, complete a Purchase Order. Send FCD
the completed Purchase Order.

4. If there are errors or if the supporting documentation requires further justification or explanation,
return the document to the originating state agency for correction. Recycled in SHARE back to
the agency for needed corrections.

5. If a Purchase Order is returned by the FCD, make all necessary corrections and resubmit the
document. FCD comments indicating the reason for the document being recycled or State
Agency response comments should not be altered or omitted.

FCD

6. The FCD Audit Bureau staff will run a daily on-line Query Purchase Order Report to review and
approve purchase orders or change orders for their assigned block of agencies.

7. The FCD Audit Bureau will audit the Query Purchase Order Report for completeness and
correctness of data and appropriateness of supporting documentation if required.

8. If there are errors or if further justification is required, the FCD Audit Bureau will recycle the
document to the originating state agency for correction. The SHARE comment box in the
purchase order will have the FCD Audit Bureau comments indicating the reason for the document
being recycled back to the state agency. Response comments should not be altered or omitted.

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State Agency

9. If a document is recycled by the FCD Audit Bureau, make all necessary corrections and approve
the purchase order document.

FCD

10. If the Purchase Order and supporting documentation are without errors, review the transactions
in SHARE.

11. If the on-line information and the date are correct in SHARE, the purchase order will be approved
by the FCD Audit Bureau.

12. Once the document is approved on-line, the system will batch process the purchase order to
dispatch.

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FIN 4 – Purchasing
Policies & Procedures FIN 4.9

FIN 4.9 Purchase Order Encumbering Professional Service Contracts Greater Than
$5,000 but Less Than $50,000

A. Statement

To process Purchase Orders used for professional services contracting in excess of $5,000 but less
than $50,000 the procedures below must be followed.

B. Procedures

State Agency

1. Prepare a contract and enter it into SHARE using the Contracts Module, then complete a
Requisition in SHARE for that vendor and the amount. Send Contracts Review Bureau (CRB)
the contract, all necessary attachments, and the “Approved” Requisition. Agencies should note
that small purchase professional services agreements cannot have a term beyond twelve (12)
months. Multi-year PSAs should be procured using the Request for Proposals process.

CRB

2. Review the contract as to compliance with DFA rules and regulations.

3. If the contract fails to pass the review, return the contract and all documents submitted with it to
the originating state agency.

State Agency

4. Correct the errors and resubmit contract, attachments, and the “Approved” Requisition to CRB.

CRB

5. If the contract passes the review, “Pre-Approve” the contract in the SHARE Contracts Module.

State Agency

6. Monitor SHARE for contract approvals. Once contract has been “pre-approved” in SHARE by
CRB, turn the Requisition into a Purchase Order and attach the Purchase Order to the Contract
Module. Alert CRB once this has been done.

7. Print a hard copy of the Purchase Order information from the SHARE Contracts Module and
deliver to CRB.

CRB

8. CRB will process the hard copy of the Purchase Order and send a copy of the purchase order print
screen to FCD for encumbering.

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FCD

9. Pre-audit the Purchase Order for proper authorization; completeness and correctness of data; and
appropriateness of supporting documentation.

10. If the Purchase Order is without errors, approve the transaction in SHARE. Return the approved
Purchase Order print screen to CRB.

CRB

11. If the Purchase Order has been rejected by FCD, return it to the state agency for corrections. If
the Purchase Order has been approved by FCD, sign the contract, fully executing it. Return
signed contracts to the state agency.

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FIN 4 – Purchasing
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FIN 4.10 Purchase Order Encumbering Professional Service Contracts Greater than
$50,000

A. Statement

To process Purchase Orders used for contracting professional services totaling more than $50,000
follow the procedures below.

B. Procedures

State Agency

1. Prepare a request for proposal (RFP) and a Requisition leaving the vendor name and address
blank. Identify the services(s) to be purchased. Advertise the RFP in accordance with statute and
regulations.

2. Select the vendor identified by the RFP responses. Prepare and submit the contract to the vendor
for signature.

3. In the alternative, if the vendor is a sole source vendor, fill out the Sole Source Request for
Professional Services Agreements and submit with the contract package to CRB.

4. Prepare a contract, enter it into SHARE in the Contracts Module, and complete a Requisition in
SHARE stating the vendor and the amount. Send CRB the contract, all necessary attachments,
and the “Approved” Requisition.

CRB

5. Review the contract as to compliance with DFA rules and regulations.

6. If the contract fails to pass the review, return the contract and all documents submitted with it to
the originating state agency.

State Agency

7. Correct the errors and resubmit to CRB the contract, all attachments, and the “Approved”
Requisition.

CRB

8. If the contract passes the review, “Pre-Approve” the contract in the SHARE Contracts Module.

State Agency

9. Monitor SHARE for the contract’s approval in the system. Once contract has been “pre-
approved” in SHARE by CRB, turn the Requisition into a Purchase Order and attach the
Purchase Order to the Contract Module. Alert CRB once this has been done.

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10. Print a hard copy of the Purchase Order information from the SHARE Contracts Module and
deliver to CRB

CRB

11. CRB will process the hard copy of the Purchase Order and send a copy of the purchase order
screen print to FCD for encumbering.

FCD

12. The FCD Audit Bureau staff will run a daily on-line Query Purchase Order Report to review and
approve purchase orders or change orders for their assigned block of agencies.

13. The FCD Audit Bureau will audit the Query Purchase Order Report for completeness and
correctness of data and appropriateness of supporting documentation if required.

14. If there are errors or if further justification is required, the FCD Audit Bureau will recycle the
document to the originating state agency for correction. The SHARE comment box in the
purchase order will have the FCD Audit Bureau comments indicating the reason for the document
being recycled back to the state agency.

State Agency

15. If a document is recycled by the FCD Audit Bureau, make all necessary corrections and approve
the purchase order document.

FCD

16. If the Purchase Order and supporting documentation are without errors, review the transactions
in SHARE.

17. If the on-line information and the date are correct in SHARE, the purchase order will be approved
by the FCD Audit Bureau.

18. Once the document is approved on-line, the system will batch process the purchase order to
dispatch.

CRB

19. If the Purchase Order has been rejected by FCD, return it to the state agency for corrections. If
the Purchase Order has been approved by FCD, sign the contract fully executing it. Return
signed contracts to the state agency.

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FIN 4 – Purchasing
Policies & Procedures FIN 4.11

FIN 4.11 Processing Procedures — Emergency Procurement

A. Statement

To process purchases under the Emergency Procurement section of the State Procurement Code
(NMSA 1978, §13-1-127) follow the procedures below.

B. Procedures

State Agency

1. Determine if an emergency condition exists that requires the purchase of services or items of
tangible property, or immediate construction, which cannot be met through normal procurement
methods. “Emergency condition” means that without the purchase, any of the following would
be seriously threatened (a) the functioning of government, (b) the preservation or protection of
property, or (c) the health or safety of any person.

2. Prepare a memorandum addressed to the FCD Director stating the emergency, identifying the
category (a, b or c, above) within which the emergency procurement is justified. The
memorandum should originate from the chief financial officer of the requesting state agency (e.g.
Department Secretary, Agency Director, or the Administrative Services Division Director). The
emergency memorandum and supporting documentation need to be submitted within five
working days to FCD. Send a copy of the justification to State Purchasing.

3. Complete a Purchase Order, check the “Excluded from Procurement through State Purchasing”
box, and along with the above memorandum, submit to FCD the completed Purchase Order.

FCD

4. If the procurement has already occurred and the FCD Director:

a. Determines that the justification provided does meet the requirement of the emergency
procurement section of State Procurement Code, process the document following normal
procedures.

b. Determines that the justification provided does not meet the requirement of the emergency
procurement section of State Procurement Code, return the document to the originating state
agency for processing under the violation of the procurement code procedures, which are
presented in this chapter on FIN 4.15 State Procurement Code Violations.

5. If the procurement has not yet occurred and the FCD Director:

a. Determines that the emergency procurement is justified, process the Purchase Order using
"special processing" (expedited) procedures.

b. Determines that the emergency procurement is not justified; return the Purchase Order to the
originating state agency for normal processing.

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State Agency

6. If exempted from processing Purchase Orders through FCD, comply only with the written
justification for emergency procurement provision in the State Procurement Code.

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FIN 4.12 Sole Source Procurement

A. Statement

Sole source procurement is covered under section §13-1-126 (NMSA 1978) of the
Procurement Code. To procure goods and services using a sole source provider, the
procedures below should be followed. Sole source procurement of goods and general
services must be approved by SPD for all state agencies that are not excluded by the State
Procurement Code from purchasing through the State Purchasing Agent. Professional
Services sole source procurements must be approved by DFA and do not require a signature
from the State Purchasing Agent. Sole source procurements cannot have a term in excess of
twelve (12) months.

B. Procedures

SPD

1. Prepare a Purchase Order form. Identify the item(s) to be purchased, check the
“Purchase Requisition” box, enter the name and address of the recommended vendor, and
attach any required supporting documentation. Submit the completed Purchase Order to
SPD.

State Agency

2. Review the request and decide whether to issue a sole source award or request additional
justification from the state agency. Post the required information on the SPD website
(this will ensure that the information is received by the Department of Information
Technology for posting on the “Sunshine Portal” as well as the Legislative Finance
Committee as is required by statute) and attach the required Sole Source Determination
Form. Wait thirty (30) days pursuant to statute. After the sole source posts for thirty (30)
days, the appropriate contractual method can be pursued by the agency (professional
services agreement, Department of Information Technology agreement or simple
purchase order depending on the type of services being procured).

3. Complete the Purchase Order and all other required documents. Send FCD the
completed Purchase Order, a copy of the approval letter from the State Purchasing
Division, General Services Department for the sole source procurement, and the
completed contract.

FCD

4. The FCD Audit Bureau will run a daily on-line Query Purchase Order Report to review and
approve purchase orders or change orders for their assigned block of agencies.

5. The FCD Audit Bureau will audit the Query Purchase Order Report for completeness and
correctness of data and appropriateness of supporting documentation as required.

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6. If there are errors or if further justification is required, the FCD Audit Bureau will return
the document to the originating state agency for correction. The SHARE comment box
in the purchase order will contain the FCD Audit Bureau comments noting the reason for
document being returned to the state agency.

State Agency

7. If a document is returned by the FCD Audit Bureau, make all necessary corrections and
approve the purchase order document.

FCD

8. If the Purchase Order and supporting documentation are without errors, review the transactions
in SHARE.

9. If the on-line information and the date are correct in SHARE, the purchase order will be approved
by the FCD Audit Bureau.

10. Once the document is approved on-line, the system will batch process the purchase order to
dispatch.

State Agency

11. Send the vendor the original Purchase Order and other required documents and file a copy.

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FIN 4.13 State Procurement Code Violations

A. Statement

State agencies must use the following procedures to process Purchase Orders or Payment Vouchers
after a violation of the State Procurement Code has followed.

B. Procedures

State Agency

1. The state agency Department Secretary or the State Agency Director must submit to SPD the
Purchase Order and attach a Justification memorandum addressing how, when, and why the State
Procurement Code requirements were violated. If the violation exceeds $100K, an audit is
triggered. Payment is not to be made pending resolution of the audit findings.

FCD

2. Review the Purchase Order, the letter of declaration of a procurement code violation from SPD,
and the justification memorandum and either award or deny approval of the purchase. Retain a
file copy and return the original documents to the originating state agency.

State Agency

3. After receiving the Purchase Order back from DFA, send to the FCD Director the following:

a. A request either for an encumbrance after the fact/retro, or for payment to be made. The
request should include the Purchase Order, the justification memorandum, and a Payment
Voucher (if the request is also for payment).

b. Written documentation of the steps the state agency has taken to prevent violations of the
State Procurement Code in the future.

c. The request must be signed by the Department Secretary or the State Agency Director of the
state agency that violated the State Procurement Code.

d. Supporting documentation showing that SPD has been informed of the violation.

e. The FCD Director will determine the steps to be taken and informs the state agency.

4. If exempt from processing Purchase Orders through the State Purchasing Agent, submit to the
FCD Director the following:

a. A request to process a payment or to establish an encumbrance after the fact, even though a
State Procurement Code violation has occurred. The request should accompany either a
Purchase Order or a Payment Voucher.

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b. A justification memorandum, signed by the Department Secretary or the State Agency

Director, stating when, why, and how the state agency failed to comply with the State
Procurement Code.

c. The internal control steps the state agency has implemented to prevent violations of the State
Procurement Code in the future.

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FIN 4.13.1 State Procurement Code Violations Training

A. Statement

State agencies that are in violation of the State Procurement Code as determined by the State
Purchasing Agent must identify all individuals involved with the procurement violation at issue.
Those individuals are required to attend and pass a State Purchasing Division training class as
directed by the State Purchasing Agent.

B. Procedures

State Agency

1. The state agency’s Department Secretary or the agency’s Chief Procurement Officer must submit
to State Purchasing Agent a list of all individuals involved with a procurement violation within 10
calendar days of identifying the potential violation.

2. Upon the State Purchasing Agent’s determination of a procurement violation by the agency, the
state agency Department CFO, the agency Chief Procurement Officer, and others identified as
involved with the procurement violation process must register, attend, and pass the required
training class as directed by the State Purchasing Agent within 90 calendar days of the
determination letter, or on the first date the training class is offered.

3. Upon the DFA determination of a MAP violation by the agency, the state agency Department
CFO, the agency Chief Procurement Officer, and those individuals identified with the
procurement violation must attend a DFA training class within 90 calendar days of the
determination letter, or at the first date the DFA training class is offered.

4. The State Purchasing Agent will document agency procurement violations, record the names of
individuals identified as involved with the procurement violation, and record those individuals
who register, attend and pass the required training class.

5. Failure to do any of the following will be procurement violations as determined by the State
Purchasing Agent:

a. Identify all individuals involved with a procurement violation,

b. Register all named individuals for the required training class,

c. All named individuals must attend and pass the required training class.

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FIN 4.13.2 Agency Certified Chief Procurement Officer

A. Statement

Under NMSA Section 13-1-95.2, each State agency must register its Chief Procurement Officer
with the State Purchasing Agent on the State Purchasing Division website. Failing to have a
Certified Chief Procurement Officer and failing to register an agency’s Chief Procurement Officer are
violations of the procurement code unless the State Purchasing Agent grants an exception. Upon a
determination of a procurement violation, the State Purchasing Agent may suspend authority for a
Chief Procurement Officer to make purchases.

B. Procedures

State Agency

1. On or before January 1st of each year beginning in 2014, and every time a Chief Procurement
Officer is hired, each state agency and local public body shall provide to the State Purchasing
Agent the name of the state agency's or local public body's Chief Procurement Officer and
information identifying the state agency's or local public body's central purchasing office on the
State Purchasing Division website: http://www.generalservices.state.nm.us/statepurchasing/chief-
procurement-officer-registration.aspx.

2. On and after July 1, 2015, only certified Chief Procurement Officers may do the following,
except that persons using procurement cards may continue to issue purchase orders and authorize
small purchases:

a. Make determinations, including determinations regarding exemptions, pursuant to the

Procurement Code;

b. Issue purchase orders and authorize small purchases pursuant to the Procurement Code; and

c. Approve procurement pursuant to the Procurement Code.

State Purchasing Agent

1. The State Purchasing Agent shall maintain a list of the names of the Chief Procurement Officers
reported to the State Purchasing Division by state agencies and local public bodies available to
the public through its website.

2. The State Purchasing Agent shall offer a certification training program for Chief Procurement
Officers each year that includes initial certification and recertification every two years for all
Chief Procurement Officers.  To qualify for Certification and Recertification, a Chief
Procurement Officer must pass the required examination approved by the Secretary of General
Services.

3. A person must be registered for the Chief Procurement Officer training within two months of hire
for such position or hired for a position a part of which includes the duties of the Chief

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Procurement Officer. Any waiver of this requirement must be in writing and signed by the State
Purchasing Agent.

4. Any waiver from policies governing Chief Procurement Officers must be in writing and signed
by the State Purchasing Agent.

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FIN 4.14 Purchases Encumbered Over $5,000 After the Fact

A. Statement

State agencies must use the following procedures to process Purchase Orders or Payment Vouchers
after a violation of the State Procurement Code has followed.

B. Procedures

State Agency

1. The state agency CFO must submit to FCD the Purchase Order and attach a Justification
memorandum addressing how, when, and why the State Procurement Code requirements were
violated and the steps the state agency has taken to prevent violations of the State Procurement
Code in the future. Payment is not to be made pending resolution of the audit findings.

FCD

2. Review the Purchase Order, and the justification memorandum and either award or deny
approval of the purchase. Retain a file copy and return the original documents to the originating
state agency.

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FIN 4.15 Vendor File (Known Vendor)

A. MAP Standard

To expend resources for only authorized purposes, encumbrances must represent contractual
commitments for goods or services.

B. Purpose

This policy establishes the requirement that state agencies encumber only amounts that represent
contractual commitments to a known vendor.

C. Authority

NMSA 1978, §6-5-3

D. Policy

1. Vendors that provide goods or perform services for the state must provide their Tax Identification
Number (TIN), using either the State of NM Substitute Form W-9, any other acceptable W-9
form, or Form W-8 (foreign vendors). SHARE will automatically assign a vendor number. This
will help to ensure that all vendors that provide services to the State provide the necessary
information for the issuance of the form 1099 as required by the Internal Revenue Service.

2. The assigned vendor ID will only be applicable to one organization.

3. State agencies that process Purchase Orders through FCD must use SHARE vendor codes.

4. All Purchase Orders issued by state agencies must reference a specific vendor.

5. See FIN 5.19 Requesting the Addition of a New SHARE Vendor and FIN 5.20 Updating Vendor
Information in SHARE for vendor set-up process.

6. State agencies that process transactions through SHARE must have FCD authorization to use a
miscellaneous (non-specific) vendor code. State agencies may request the use of a miscellaneous
vendor code, when it is not reasonable to postpone a commitment or purchase until a vendor code
is issued. (Identify the criteria of the miscellaneous vendor use. Do not require a pre-
authorization, only identify that a justification be submitted with the process of a Purchase
Order/Payment Voucher).

E. Applicability

This policy applies to all state agencies.

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Business Process – PO-01

PO-01 Purchasing – Determining Origin Code (Overview) – EXC, EXE, CON, SOL, DPO
Agency
Need for goods or
professional services

Purchase
Is there an existing
Exempt/Excluded from Purchase require a
professional
procurement code or Yes No Professional Service
services
procurement through State Contract?
Contract?
Purchasing?

Process
B: Record

Yes No
Yes
A – PO01 / 1
No
To PO-07 A To PO-03 To PO-02a
(origin code (origin code (origin code
EXC) EXC) EXC/ECX)

Is
purchase from a To PO-06
Sole Source vendor or (origin code
Federal GSA Sole Source SOL)
contract?

Process
A: Authorize

Federal GSA
M – PO01 / 2

Does
Purchase
purchase involve a contract No
> $60k?
or price agreement?

Yes No
Yes

To PO-07
(origin code
CON) To PO-03
B
Purchase
< $20k?

To PO-08 To PO-09
(origin code (origin code
ENC) Yes No DPO)

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Business Process – PO-01

PO-01 Purchasing – Determining Origin Code (Control Points)

SHARE is set up to use auto numbering for requisitions, purchase orders, RFQ’s (Invitation to Bid) and vouchers. If an
A – PO01 / 1 agency does not follow the sequential numbering, the agency is responsible for maintaining a manual sequential
document log. This log will be subject to external audits review and testing.

Federal General Services Agreement is a contract awarded by the Federal Government. In order for the State to utilize
M – PO01 / 2 the pricing under a GSA, New Mexico State Purchasing Division must award a state price agreement using the pricing
terms and conditions under the GSA.

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Business Process – PO-02a

PO-02a Purchasing – Exempt from Procurement Code (NMSA 1978, §13-1-98) or Excluded from
Procurement through State Purchasing (NMSA 1978, §13-1-99)
Agency Financial Control Division
(FCD)
From
PO-01
To
Exempt from
Yes PO-11
Requisition?
From
PO-02b
No

1 8
Create requisition using SHARE Workflow
Process
either EXE or EXC Origin transmits Purchase A: Authorize
Code and an associated Order to FCD Audit E: Verify S
exemption or exclusion Bureau for approval
code and posting

A – PO02a / 4
2
SHARE performs
3
Process budget check NM_PO_FCD_Audi Process
A: Authorize Approve requisition Process
(appropriation & t_Approval_V2 A: Authorize
D: Verify I online B: Record B: Record
department) and records E: Verify S
pre-encumbrance

M – PO02a / 5
A-PO02a / 1 M – PO02a / 2

5
9
Process SHARE performs 4
Audit Bureau
A: Authorize budget check Copy requisition
D: Verify I approves Purchase
(Appropriation & into purchase order
Order
Department)

A - PO02a / 3 Note:
Liquidates pre-encumbrance and
creat es encumbrance

6
Approve purchase
order online Process
A: Authorize A - PO02a / 6

10 To
Purchase No FCDS dispatches PC-01
> $1,500?
purchase order

Yes

7
Print draft purchase order and Draft PO & Support
submit with supporting Documentation
documents to FCD Audit
Bureau

12 11
Executed Purchase Print Purchase Order
End
Order delivered to and send to vendor
Vendor

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Business Process – PO – 02b

PO-02b Purchasing – Exempt from Procurement Code (NMSA 1978, §13-1-98) or Excluded from
Procurement through State Purchasing (NMSA 1978, §13-1-99) Emergency Purchases
Agency Financial Control Division
(FCD)
Note:
Determine if an emergency condition
Need Emergency exists that requires the purchase of services
or items of tangible property, or immediate
Goods or Services construction, which cannot be met through
normal procurement methods “Emergency
condition” means that without the
purchase, any of the following would be
seriously threatened:
a The functioning of government,
b The pres ervation or protection of
property, or
C The health or safety of any person

2
1 FCD Director Process
Prepare a Emergency Memo verifies the A: Authorize
memorandum stating Emergency Memo D: Verify I
the emergency and support
documentation

M – PO02b / 1
Note:
Emergency Memo - stating the
emergency, identifying the category
within which the emergency 3
procurement is justified: FCD Director sends
a The functioning of government,
b The preservation or protection of
a copy of the
property, or Emergency Memo to
C The health or safety of any person State Purchasing
Office

To
PO-02a

Note:
Follow process on PO-02a for
“Excluded from Procurement
through State Purchasing” using the
EXC origin code Include category a,
b or c in exclusion category

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Business Process – PO-02a & b

PO-02a & b Purchasing – Exempt from Procurement Code (NMSA 1978, §13-1-98) or Excluded
from Procurement through State Purchasing (NMSA 1978, §13-1-99) Emergency Purchases
(Control Points)
SHARE performs a budget check (appropriation & department) prior to creating a requisition to record encumbrances
A – PO02a / 1 timely and accurately and verify sufficient budget is available to fund the commitment before issuing a purchase
requisition.

M – PO02a / 2 Agency agrees the supporting documentation to online requisition.

SHARE performs a budget check (appropriation & department) prior to approving a purchase order to record
A – PO02a / 3
encumbrances timely and accurately and verify sufficient budget is available to fund the commitment.

SHARE segregates purchase orders authorization by restricting the transmission to the FCD Audit Bureau for approval
A – PO02a / 4
and verification prior to posting.

SHARE automatically generates a listing of all Purchase Orders > $5,000 Daily which are reviewed and approved by the
M – PO02a / 5
Audit Bureau Audit Bureau review for completeness, correctness, and appropriateness of supporting documentation.
When a purchase order is “dispatched” by the system, the Agency head’s signature is electronically placed on the
A – PO02a / 6 purchase order. This creates an official, executed purchase order. The purchase order is now available for printing by the
agency.

FCD Director verifies the “Emergency Memo” and support documentation to properly approve the Emergency
M – PO02b / 1 Purchasing request.

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Business Process – P0-03

PO-03 Purchasing – Professional Service Contract

Agency Contracts Review Bureau (CRB)

From
PO-01

Note:
Professional if contract incl udes a
Service contract delivered product,
No Yes obtain SPD approval
be > $60k?

1 3
Obtain quote(s); Issue RFP, analyze Process
evaluate response(s) responses and award D: Verify I
and award contract at agency

M – PO03 / 1

4 10
2 Review and pre Process
Prepare contract & A: Authorize
Negotiate terms of approve contract
required E: Verify S
contract provisions
documentation

M – PO03 / 3

5
Create requisition in
SHARE using EXC
Origin Code Note: effective date will be
11 date physical contract is
approved by FCD and
Pre-approve contract signed by CRB
online
6
SHARE performs
7
Process budget check
B: Record Approve requisition
(appropriation &
D: Verify I online
department) and creates
pre-encumbrance
To
A-PO03/2 PO-04

Is 8
contract Create Contract in
No > $5,000 SHARE using
“PSC” contract type

To
PO-05 9
Submit
Yes
documentation to
CRB

Note: Subm it contract

agreem ent, contract brief,
Governor’s guideli nes
memo, printed copy of
requis ition.

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Business Process – PO-03

PO-03 Purchasing – Professional Service Contract (Control Points)

M – PO03 / 1 CRB verifies the RFP is in accordance with statute and regulations.

SHARE performs a budget check (appropriation & department) prior to creating a requisition to record encumbrances
A - PO03 / 2 timely and accurately and verify sufficient budget is available to fund the commitment before issuing a purchase
requisition.

M – PO03 / 3 FCD reviews contracts to verify compliance with DFA rules and regulations prior to “Pre-Approving” the contract in
SHARE.

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Business Process – PO-04

PO-04 Purchasing – Professional Service Contract > $50,000

Agency Contracts Review Bureau Financial Control Division
(CRB) (FCD)
A
From
PO-03

Note:
Print hard copy of the
1 Process purchase order and
Process
Copy requisition B: Records init ial s, indicating the
purchase order i s ready A: Authorize
into purchase order for t he FCD’s E: Verify S
approval/rejection

Review hard copy of 8

M – PO04 / 1 SHARE Workflow transmits
the purchase order
and initials Purchase Order to FCD
2 Process
Audit Bureau for approval
SHARE performs B: Records and posting
Process
budget check E: Verify S
A: Authorize
(appropriation & D: Verify I
department), liquidates M – PO04 / 3
pre-encumbrance and A-PO04 / 4
creates encumbrance

A – PO04 / 2 9
FCD Audit Bureau approves
purchase order in SHARE,
3 encumbers funds, and returns
Approve hard copy of purchase order to
CRB
purchase order in
SHARE

4
Turns requisition 10 Process
into a purchase order ASC dispatches A: Authorize
and attaches to the purchase order
contract

A-PO04 / 5
5
Email, fax, or hand
deliver copy of the
purchase order to
CRB Analyst

11
6 Receives approved purchase
Print Purchase Order order from FCD and returns
and send to vendor fully executed contract to
Agency
Process
B: Records
M – PO04 / 6

7
Fully executed
Purchase
Order and Contract
delivered to Vendor

End

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Business Process – PO-04

PO-04 Purchasing – Professional Service Contract > $50,000 (Control Points)

M – PO04 / 1 Agency properly records goods and services on purchase documents ensuring compliance.

A – PO04 / 2 SHARE performs a budget check (appropriation & department) prior to approving a purchase order to record
encumbrances timely and accurately and verify sufficient budget is available to fund the commitment.
CRB manually reviews hard copy of Purchase Orders and forwards to FCD. FCD will not give the Purchase Order final
M – PO04 / 3 approval and post in SHARE unless a hard copy contract print screen is obtained from CRB in order to avoid the agency
from approving contracts.

SHARE segregates purchase orders authorization by restricting the transmission to the FCD Audit Bureau for approval
A – PO04 / 4
and verification prior to posting.
When a purchase order is “dispatched” by the system, the Agency head’s signature is electronically placed on the
A – PO04 / 5 purchase order. This creates an official, executed purchase order. The purchase order is now available for printing by the
agency.

M – PO05 / 6 CRB records and verifies approved purchase order prior to providing the Agency with the fully executed contract.

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Business Process – PO-05

PO-05 Purchasing – Professional Service Contract < $50,000

Agency Contracts Review Bureau Financial Control Division
(CRB) (FCD)
From
PO-03

Note:
Print hard copy of the
1 Process purchase order and
Process
Copy requisition B: Records initials, indicating the
purchase order i s ready A: Authorize
into purchase order for t he FCD’s E: Verify S
approval/rejection

Review hard copy of 8

M – PO05 / 1 SHARE Workflow transmits
the purchase order
and initials Purchase Order to FCD
2 Process
Audit Bureau for approval
SHARE performs B: Records and posting
Process
budget check E: Verify S
A: Authorize
(appropriation & D: Verify I
department), liquidates M – PO05 / 3
pre-encumbrance and A-PO045/ 4
creates encumbrance

A – PO05 / 2 9
FCD Audit Bureau approves
purchase order in SHARE,
3 encumbers funds, and returns
Approve hard copy of purchase order to
From CRB
purchase order in
SHARE PO-06

4
10
Turns requisition Process
ASC dispatches
into a purchase order A: Authorize
purchase order
and attaches to the
contract

A-PO05 / 5
5
Email, fax, or hand
deliver copy of the
purchase order to
CRB Analyst

11
6 Receives approved purchase
Print Purchase Order order from FCD and returns
and send to vendor fully executed contract to
Agency
Process
B: Records
M – PO05 / 6

7
Fully executed
Purchase
Order and Contract
delivered to Vendor

End

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FIN 4 – Purchasing
Business Process – PO-05

PO-05 Purchasing – Professional Service Contract < $50,000 (Control Points)

M – PO04 / 1 Agency properly records goods and services on purchase documents ensuring compliance.

A – PO04 / 2 SHARE performs a budget check (appropriation & department) prior to approving a purchase order to record
encumbrances timely and accurately and verify sufficient budget is available to fund the commitment.
CRB manually reviews hard copy of Purchase Orders and forwards to FCD. FCD will not give the Purchase Order final
M – PO04 / 3 approval and post in SHARE unless a hard copy contract print screen is obtained from CRB in order to avoid the agency
from approving contracts.

SHARE segregates purchase orders authorization by restricting the transmission to the FCD Audit Bureau for approval
A – PO04 / 4
and verification prior to posting.
When a purchase order is “dispatched” by the system, the Agency head’s signature is electronically placed on the
A – PO04 / 5 purchase order. This creates an official, executed purchase order. The purchase order is now available for printing by the
agency.

M – PO05 / 6 CRB records and verifies approved purchase order prior to providing the Agency with the fully executed contract.

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FIN 4 – Purchasing
Business Process – PO-06

PO-06 Purchasing – Sole Source or Federal General Service Agreements

Agency State Purchasing Division
(SPD)
From
4
PO-01
1 Obtain
Process
Create requisition hard copy of A: Authorize
using SOL or CON requisition and E: Verify S
Origin Code support
documentation
A
M – PO06 / 3

2
Process SHARE performs 5
A: Authorize
D: Verify I
budget check (appropriation Verify the support
& department) and records documentation
pre-encumbrance

A-PO06 / 1

Printed Requisition
3 and Support Support
Approve requisition Documentation Documentation No A
online into SHARE OK?

Note: Supporting
Yes Docum entation:
M – PO06 / 2 - GSA – Val id Contract;
- Letter from vendor;
- Quote from GSA Vendor
6 - Agency Letter
Approve and create
Contract
into SHARE

Process 8
A: Authorize Copy requisition
D: Verify I into purchase order
7
SPD provides a hard
M – PO06 / 4
copy of the contract
to the Agency

9
Process SHARE performs
A: Authorize budget check Note: liquidates pre-
D: Verify I (Appropriation & encumbrance and
Department) creates
encumbrance Contract

A – PO06 / 5

To
PO-05

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FIN 4 – Purchasing
Business Process – PO-06

PO-06 Purchasing – Sole Source or Federal General Service Agreements (Control Points)
SHARE performs a budget check (appropriation & department) prior to creating a requisition to record encumbrances
A – PO06 / 1 timely and accurately and verify sufficient budget is available to fund the commitment before issuing a purchase
requisition.

M – PO06 / 2 Agency properly records goods and services on purchase documents ensuring compliance.

State Purchasing Division researches vendor in order to verify that vendor is the only provider of goods and services prior
M – PO06 / 3 to authorizing the contract. In addition, State Purchasing Division reviews contracts to verify compliance with rules and
regulations to providing approval to agency via letter.

Agency verify support documentation to properly records goods and services on purchase documents ensuring
M – PO06 / 4
compliance.

A – PO06 / 5 SHARE performs a budget check (appropriation & department) prior to approving a purchase order to record
encumbrances timely and accurately and verify sufficient budget is available to fund the commitment.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 4 – Purchasing
Business Process – PO-07

PO-07 Purchasing – Existing Contract or Price Agreement

Agency Financial Control Division
From
PO-01
(FCD)
B 3
1 2
SHARE performs
Create requisition Identify (attach)
budget check
using CON Origin contract or price Process
(appropriation & A
Code or Price agreement to B: Record
department) and D: Verify I
From Agreement for PSC Requisition in
records pre-
PO-10 Contract Types SHARE
encumbrance
A, B
10
SHARE Workflow
transmits Purchase Process
A – PO07 / 1 Order to FCD Audit A: Authorize
E: Verify S
Bureau for approval
and posting
6
Process 4 5 SHARE performs A – PO07 / 3
A: Authorize Approve requisition Copy requisition into budget check
D: Verify I online into SHARE purchase order (Appropriation &
Department)
NM_PO_FCD_Audi Process
A: Authorize
Note: liqui dates pre-
t_Approval_V2 B: Record
M – PO07 / 2 encumbrance and E: Verify S
creates
encumbrance
M – PO07 / 4

7
Approve purchase 11
Audit Bureau
order online into approves Purchase
SHARE Order

From 8
Purchase 12 Process
PO-01 No Agency Approves Purchase Order A: Authorize
A > $5,000? Dispatches
Purchase Orders

A – PO07 / 7
Yes A

15
Create PO and send
hard copy to CRB Note: Include:
-Memo
-Hard Copy of Contract
- Screen Print from SHARE
Module

14 13
Executed Purchase Print Purchase
End
Order delivered to Order and send to
Vendor vendor

M – PO07 / 6

DFA Contracts Review

17
Bureau (CRB) FCD Audit Bureau
approves P.O in
16 Process
Process
CRB Returns PO SHARE, encumbers A: Authorize
Note: E: Verify S
to Agency funds, and returns B: Record
indicating the purchase hard copy of E: Verify S
order is ready for the purchase order to
FCD’s approval/rejection
DFA CBR
CRB Obtains PO M – PO07 / 5
hard copy and
initials

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FIN 4 – Purchasing
Business Process – PO-07

PO-07 Purchasing – Existing Contract or Price Agreement (Control Points)

SHARE performs a budget check (appropriation & department) prior to creating a requisition to record encumbrances
A – PO07 / 1 timely and accurately and verify sufficient budget is available to fund the commitment before issuing a purchase
requisition.

Agency verifies the support documentation to properly records goods and services on purchase documents ensuring
M – PO07 / 2 compliance.

SHARE segregates purchase orders authorization by restricting the transmission to the FCD Audit Bureau for approval
A – PO07 / 3
and verification prior to posting.

M – PO07 / 4 SHARE automatically generates a listing of all Purchase Orders > $5,000 Daily which are reviewed and approved by the
Audit Bureau Audit Bureau review for completeness, correctness, and appropriateness of supporting documentation.

DFA Contract Review Bureau Obtains PO hard copy and initials, indicating the purchase order is ready for the FCD’s
M – PO07 / 5
approval/rejection.

M – PO07 / 6 CRB Obtains Purchase Order hard copy and then authorizes indicating the purchase order is ready for the FCD’s approval
prior to committing to the vendor.

When a purchase order is “dispatched” by the system, the Agency head’s signature is electronically placed on the
A – PO07 / 7 purchase order. This creates an official, executed purchase order. The purchase order is now available for printing by the
agency.

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FIN 4 – Purchasing
Business Process – PO-08

PO-08 Purchasing – Purchase > $60k, Not Under Existing Contract or Price Agreement
Financial Control
Agency State Purchasing Division Division
(SPD) (FCD)
From
PO-01 1
6
Create requisition Process
Issue Request for
using REQ origin A: Authorize
9
Quote (ITB) and E: Verify S
code Note: SHARE Workflow
notify vendors - Word Document
- Vendor List Off SHARE
transmits Purchase
From - Labels Order to FCD Audit
PO-10 - Mails Bureau for approval
and posting
A – PO08/7
2
SHARE performs 7
Process budget check Analyze Process
A: Authorize
A: Authorize (appropriation & ITB and B: Record Process
D: Verify I department) and determine if issuing E: Verify S A: Authorize
records pre- Contract B: Record
encumbrance E: Verify S NM_PO_FCD_Audi
A – PO08 / 1 t_Approval_V2
M – PO08 / 3
M – PO08 / 8

3
8
Process Approve requisition
Approve Contract
B: Record online
into SHARE
10
FCD Audit Bureau
approves Purchase
Order
Process
A: Authorize
D: Verify I 9
4 Process
Enter contract in
Copy requisition B: Authorize
SHARE and notify B: Record
into purchase order
M – PO08 / 2 Bidder and Agency
11
A – PO08 / 6 A Purchase Order
Process Dispatches
A: Authorize 5
D: Verify I SHARE performs
Process
budget check A: Authorize
(Appropriation &
M – PO08 / 4 Department) Note: liqui dates pre-
encumbrance and
creates
A – PO08 / 5 encumbrance A – PO08 / 9

6
Approve purchase
Process order online into
A: Authorize
D: Verify I
SHARE

No A

Purchase
>$5,000?
Draft Purchase
Order an Supporting
Yes Documents

12
Print Purchase Order
and send to vendor

13
Executed Purchase
End
Order delivered to
Vendor

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 4 – Purchasing
Business Process – PO-08

PO-08 Purchasing – Purchase > $60k, Not Under Existing Contract or Price Agreement (Control
Points)
SHARE performs a budget check (appropriation & department) prior to creating a requisition to record encumbrances
A – PO08 / 1 timely and accurately and verify sufficient budget is available to fund the commitment before issuing a purchase
requisition.

M – PO08 / 2 Agency properly records goods and services on purchase documents ensuring compliance.

M – PO08 / 3 SPD verifies the bid is in accordance with statute and regulations prior to authorizing the contract and notifying vendor.

M – PO08 / 4 Agency verifies the support documentation to properly record goods and services on purchase documents ensuring
compliance.

SHARE performs a budget check (appropriation & department) prior to approving a purchase order to record
A – PO08 / 5
encumbrances timely and accurately and verify sufficient budget is available to fund the commitment.

A – PO08 / 6 SHARE access restricts users from enter contract into SHARE database.

SHARE segregates purchase orders authorization by restricting the transmission to the FCD Audit Bureau for approval
A – PO08 / 7
and verification prior to posting.

M – PO08 / 8 SHARE automatically generates a listing of all Purchase Orders > $5,000 Daily which are reviewed and approved by the
Audit Bureau Audit Bureau review for completeness, correctness, and appropriateness of supporting documentation.

When a purchase order is “dispatched” by the system, the Agency head’s signature is electronically placed on the
A – PO08 / 9 purchase order. This creates an official, executed purchase order. The purchase order is now available for printing by the
agency.

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FIN 4 – Purchasing
Business Process – PO-9

PO-09 Purchasing – Purchase < $60k, Not Under Existing Contract or Price Agreement
Agency DFA

From
PO-02

Note: Procurement card (P-

CARD) can be used for
purchases <$1,500

2 3 4
Purchase
1 Vendor sends the Financial Authorized Receives Invoice Process
made with a
Yes Use the P-Card to Invoice to the Bank (FAB) receives verifies the A: Authorize
procurement E: Verify 1
perform the purchase Financial Authorized the invoice and send documentation and
card?
Bank (FAB) to DFA pays the invoice

M – PO09 / 3
No

To
Existing PO-07 To General
Yes
Contract? A Ledger

No

To
PO-08

Process A – PO09 / 1
A: Authorize
E: Verify 1

Contract
No
>$30,000?

Note:
If any of the following conditi ons exi sts:
1 - Purchase requires agency or state CIO approval
Yes 2 - Purchase requires SPD award
3 - Purchase is under a professional servi ce cont ract

Request CIO Process

Approval to perform A: Authorize
E: Verify S
IT related purchases

M – PO09 / 2

To
PO-08
B

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FIN 4 – Purchasing
Business Process – PO-9

PO-09 Purchasing – Purchase < $60k, Not Under Existing Contract or Price Agreement (Control
Points)
A – PO09 / 1 To consider approvals and budgets early in the cycle, IT related commodity codes will be routed for approval to either the
agency of state CIO depending on dollar amount .

If the purchase is less than or equal to $100,000, the requisition will require the agency CIO approval
If the purchase is greater than $100,000, the requisition will require the OCIO approval

Note: small agencies (Employees < 50) with IT purchases greater $30,000 must manually obtain the OCIO approval.

M – PO09 / 2 IT Related purchases over $30,000 requires a CIO approval before starts the purchase process.

Financial Authorized Bank forward the invoice to the DFA, which verifies the documentation, matches within the system
M – PO09 / 3
and pay the invoice after authorization.

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FIN 4 – Purchasing
Business Process – PO-10

PO-10 Purchasing – Directly Create Purchase Order – DPO (Bypass Requisition)

Financial Control
Agency Division (FCD)

10
From 1 SHARE Workflow
Create requisition Process
PO-01 transmits Purchase A: Authorize
using DPO Origin Order to FCD Audit E: Verify S
Code Bureau for approval
and posting

A – PO10 / 4

2
SHARE performs 10
Process budget check 3 FCD Audit Bureau
A: Authorize Process
D: Verify I
(appropriation & Approve requisition B: Record reviews and
department) and online into SHARE approves Purchase
records pre- Order
encumbrance

A – PO10 / 1 M – PO10 / 2

4 5
12
Obtain Quote (with Approve and Process
A Dispatches purchase
at least 3 different Generate Contract A: Authorize
order
vendors) into SHARE

A – PO10 / 5

7
6 SHARE performs
Process
budget check (appropriation
Copy requisition & department), liquidates pre-
A: Authorize
into purchase order D: Verify I
encumbrance and creates
encumbrance

A-PO10 / 3

8
Approve purchase
order online

Purchase
No A
>$5,000?

Yes

9 Draft Purchase
Print draft purchase Order and
order and submit Supporting
with supporting Documents
documents to FCD
Audit Bureau

13 Print Purchase Order

Executed Purchase and send to vendor
End
Order delivered to
Vendor

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FIN 4 – Purchasing
Business Process – PO-10

PO-10 Purchasing – Directly Create Purchase Order – DPO (Bypass Requisition) (Control Points)
SHARE performs a budget check (appropriation & department) prior to creating a requisition to record encumbrances
A – PO10 / 1 timely and accurately and verify sufficient budget is available to fund the commitment before issuing a purchase
requisition See Authority: Section 6-5-2 NMSA 1978.

Agency verifies the support documentation to properly records goods and services on purchase documents ensuring
M – PO10 / 2
compliance See Authority section 6-5-2, NMSA 1978.

SHARE performs a budget check (appropriation & department) prior to approving a purchase order to record
A – PO10 / 3 encumbrances timely and accurately and verify sufficient budget is available to fund the commitment See Authority:
Section 6-5-2 NMSA 1978.

SHARE segregates purchase orders authorization by restricting the transmission to the FCD Audit Bureau for approval
A – PO10 / 4
and verification prior to posting.

When a purchase order is “dispatched” by the system, the Agency head’s signature is electronically placed on the
A – PO10 / 5 purchase order This creates an official, executed purchase order The purchase order is now available for printing by the
agency.

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FIN 4 – Purchasing
Business Process – PO-11

PO-11 Purchasing – Bidder Registration

State Purchasing Financial Control
Agency Vendor Division (SPD) Division(FCD)

Start

Complete the
Vendor Registration
Start Form and Substitute
W-9 Form Process
A: Authorize
D: Verify I

M – PO11 / 1
Receive Substitute
Need a New Vendor Send Subs titute W-9 W-9 and/or
Form to Requesting
in SHARE Agency/or SPD Registration Form
from Vendor

M – PO11 / 2

Receive Substitute
Send Substitute W-9 Process
W-9 Form and/or
Form B: Record D:
Registration Form Verify I

2 1
Run Query to List Enter Vendor Information:
Basic(Nam e, TIN,
new vendors entered (Preference Info), Addresses
in SHARE the (Order & Remit), Location
previous day (Bank, ACH, Ordering)

3
Enter Commodity
Codes for Vendor
Registration

End

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FIN 4 – Purchasing
Business Process – PO-11

PO-11 Purchasing – Bidder Registration (Control Points)

M – PO11 / 1 SPD performs an audit of the registration form and Substitute W-9 form, to prevent potential procurement activity errors.

FCD reviews the vendor file against the Substitute W-9 form, to prevent duplication and/or incomplete vendor
M – PO11 / 2
information.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 5 – Payables
FIN 5

FIN 5 – Payables

Policies and Procedures

Business Processes

Beginning of Document

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 5 – Payables
Policies & Procedures FIN 5.1

FIN 5.1 Cash Disbursement Methods

A. MAP Standard

To safeguard assets, cash should be disbursed using only the methods and procedures authorized by
state law, rules, and regulations.

B. Purpose

This policy establishes the disbursement methods available to state agencies.

C. Authority

NMSA 1978, §6-5-2

D. Policy

All disbursements of state monies shall be made using one of the following:

1. Payment Vouchers/Warrants – These documents are used for the majority of the cash
disbursements including travel-related disbursements.

2. Payment Load/Warrants – With authorization from Financial Control Division (FCD), state
agencies use these documents to make multiple payments with one voucher, e.g., for jury
payment and refunds to hunters who submitted applications for hunting licenses but were not
successful.

3. Petty Cash Accounts – State agencies use these accounts to make small purchases ($25 or less)
without processing a Payment Voucher. Petty cash accounts are limited to $100 unless otherwise
approved by the FCD Director or Deputy Director.

4. Miscellaneous Special Accounts/Checks – With authorization from the State Treasurer, state
agencies establish checking accounts at private banking institutions. State agencies establish
checking accounts to disburse money if so authorized by FCD. Other such accounts are used by
state agencies (e.g., the judicial courts) to deposit money received prior to transferring it to the
State Treasurer.

5. Operating Transfers – State agencies use these documents to move money between state agencies
when the payer and the payee both process their transactions through SHARE.

E. Applicability

This policy applies to all state agencies.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 5 – Payables
Policies & Procedures FIN 5.2

FIN 5.2 Disbursement Requirements

A. MAP Standard

To ensure legal compliance, which requires that resources be expended for only authorized purposes,
state agencies must implement adequate internal controls and procedures for cash disbursements.

B. Purpose

This policy identifies criteria that state agencies must meet prior to disbursing state monies.

C. Authority

NMSA 1978, §6-5-2

D. Policy

1. SHARE state agencies should follow the cash disbursement procedures for completing
documents used to disburse state monies.

2. Positive cash balance – State agencies must not make payments of state monies if the issuing
fund does not have a positive cash balance that at least equals the proposed disbursement. State
agencies that are a party to the Cash Management Improvement Act (CMIA) agreement should
request an exemption from this policy.

3. Budget balance – State agencies must ensure that payments are not processed unless the fund and
department budget making the payment contains sufficient budget to accommodate the proposed
payment. Disbursements processed through state agency fund types and non-budgeted funds
shall be exempted from this policy.

4. Balance sheet accounts – The processing of payments against balance sheet accounts will be
allowed in agency fund types. Payments against balance sheet accounts in all other fund types
must be approved through a policy exemption approved by FCD.

5. Vendor Codes – Vendors paid through FCD must be in the SHARE Vendor File and only include
one legal name for the vendor, except in those instances where approval for the use of a
miscellaneous vendor code has been granted by FCD. Vouchers cannot include two vendors as
only one vendor ID is entered into the voucher. If payments are required to go through an
intermediary, the agency issuing the payment must work with the intermediary and vendor to
ensure warrant is not redeemed until all requirement have been met.

6. For each disbursement, state agencies must provide adequate supporting documentation, which
may consist of an invoice, a copy of a state statute, a copy of a contract, a joint powers
agreement, a memorandum of understanding, etc.

7. Revenue Account Codes – The processing of payments against revenue account codes will be
allowed when court ordered or authorized to refund revenue fees collected. The payment
vouchers are generated using the same revenue account code the fees were credited to. Payment

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FIN 5 – Payables
Policies & Procedures FIN 5.2

against revenue accounts in all fund types must be approved through a policy exemption request
approved by FCD.

E. Applicability

This policy applies to all state agencies, although the completion of documents for state agencies that
do not process their financial transactions through SHARE may vary.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 5 – Payables
Policies & Procedures FIN 5.3

FIN 5.3 Distribution of Warrants

A. MAP Standard

To safeguard assets, internal controls must ensure that only authorized personnel have access to
warrants.

B. Purpose

This policy establishes the requirement that access to warrants be limited to only authorized
personnel.

C. Authority

NMSA 1978, §6-5-2

D. Policy

1. State agencies must provide FCD with a list of the names and signatures of all personnel
authorized to obtain warrants on their behalf. The authorized list must be signed and approved by
a state agency CFO.

2. Personnel receiving warrants must sign all copies of the warrant registers, prior to accepting
responsibility for the warrants.

3. State agencies must ensure that they have received all warrants they signed for at FCD. State
agencies must notify the FCD Director or Deputy Director immediately upon discovery of any
warrants distributed to the wrong state agencies and/or any warrants signed for but not received.

4. FCD Distribution Center personnel must verify that anyone receiving warrants on behalf of a
state agency is on the list of people authorized to receive warrants.

5. FCD Distribution Center personnel must mail all warrants to out-of-town state agencies on the
same day that the warrants are produced. Distribution Center personnel are responsible for
mailing the correct warrants to each of the state agencies. State agencies should report any errors
in warrant distribution to the FCD Director or Deputy Director.

6. State agencies that receive warrants through the mail should verify that they received all warrants
listed on the warrant register. They should then sign the warrant register and return it to the FCD
Distribution Center by mail, fax, or email within 5 business days of receipt of warrants.

E. Applicability

These policies apply to FCD Distribution Center Personnel and to all state agencies that receive
warrants from FCD.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 5 – Payables
Policies & Procedures FIN 5.4

FIN 5.4 Warrant Cancellations

A. MAP Standard

To ensure the accurate and complete recording of warrants that require cancellation after their initial
issue and distribution.

B. Purpose

This policy establishes the requirement that the outstanding status of an issued warrant be verified
prior to its cancellation and affirmed by affidavit prior to a reissue.

C. Authority

NMSA 1978, §6-5-2.1 (J), (S), §6-5-5, §6-5-7, §6-10-57

Rules 2.20.5.8C and 2.20.6 NMAC

D. Policy

1. Upon the determination that an issued warrant requires cancellation, the warrant’s redemption
status must be verified immediately through SHARE or fiscal agent bank.

2. Based on the warrant’s redemption status, the appropriate notice for the warrant’s cancellation
must be completed:

a. Non-redeemed Warrants Reissued – A Warrant Cancellation form including the original

warrant or the Department of Finance and Administration Financial Control Division
Statewide Human Resources, Accounting, and Management Reporting System (DFA FCD
SHARE) Affidavit for Duplicate State Warrant with original signatures and original
notarization when the original warrant is not available shall be completed timely and
submitted to the Department of Finance and Administration – Financial Control Division.

b. Non-redeemed Warrants Not Reissued – A Warrant Cancellation form including the

original warrant or the DFA FCD SHARE Affidavit for Duplicate State Warrant with original
signatures and original notarization when the original warrant is not available shall be
completed timely and submitted to the Department of Finance and Administration – Financial
Control Division.

c. Redeemed Warrants – The Department of Finance and Administration Financial Control

Division Statewide Human Resources, Accounting, and Management Reporting System (DFA
FCD SHARE) Altered or Forged Signature Affidavit for Duplicate Warrant and Bond for
Duplicate State Warrant with original signatures and original notarization shall be completed
and submitted to the state agency originating the initial warrant. In addition, provide any
forms required by the fiscal agent bank.

3. The State Treasurer shall refuse payment on a non-redeemed warrant for which a stop payment
request or notice of Warrant Cancellation has been received timely.

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FIN 5 – Payables
Policies & Procedures FIN 5.4

4. Upon determination that the State does not have physical possession of the warrant, the DFA
FCD SHARE Affidavit for Duplicate State Warrant shall be affirmed by the payee and submitted
to the state agency requesting the warrant cancellation. The appropriate affidavit form to be
completed is contingent upon the warrant’s redemption status:

a. Non-redeemed Warrants – The DFA FCD SHARE Affidavit for Duplicate State Warrant shall
be completed and submitted to the state agency originating the initial warrant.

b. Redeemed Warrants – The DFA FCD SHARE Altered or Forged Signature Affidavit for
Duplicate Warrant and Bond for Duplicate State Warrant shall be completed and submitted
to the state agency originating the initial warrant. In addition, provide any forms required by
the fiscal agent bank.

E. Applicability

This policy applies to the Department of Finance and Administration and all state agencies with
approval to issue warrants as authorized by NMSA 1978, §6-5-9.

F. Forms

1. Warrant Cancellation Form

2. DFA FCD SHARE Affidavit for Duplicate State Warrant

3. DFA FCD SHARE Altered or Forged Affidavit for Duplicate Warrant

4. Bond for Duplicate State Warrant

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 5 – Payables
Policies & Procedures FIN 5.5

FIN 5.5 Affidavit for Duplicate State Warrants

A. MAP Standard

To ensure that resources are expended only for authorized purposes, warrants that are destroyed, lost,
never received, or stolen shall be cancelled.

B. Purpose

This policy establishes the circumstances under which agencies are authorized to cancel and/or
reissue a warrant and the specific policies that pertain to each type of cancellation.

C. Authority

NMSA 1978, §6-10-55 to §6-10-57 (Warrant Cancellation Act)

NMSA 1978, §6-10-59 to §6-10-60
STO Practice

D. Policy

1. Before a duplicate warrant can be issued, agencies must cancel the original warrant.

2. With the exception of warrants that were lost, stolen, never received, agencies must send the
original warrant to FCD with the cancellation request.

3. To cancel a warrant issued through a payment voucher in SHARE, agencies should complete a
Warrant Cancellation form. If the original warrant is available, then it must be attached to the
cancellation request. If the original warrant was lost, stolen, never received, the payee of the
warrant to be cancelled must sign the DFA FCD SHARE Affidavit for Duplicate State Warrant.

a. The affidavit must always be signed by the payee or a representative of the payee in the case
of an organization.

b. To prevent errors, the agency should fill out the warrant and accounting information on the
affidavit for the payee.

c. If and only if, the payee can’t not be located or is deceased, the agency CFO can sign the
affidavit. If this occurs, then the CFO must sign a memo describing the situation and submit
with the warrant cancellation form.

4. If a warrant was destroyed, lost, or never received, and if the warrant has not been redeemed
and/or reconciled, then the warrant needs to be cancelled. Only FCD shall issue emergency stop
payment notices by submitting request directly to STO. DFA Central Payroll shall issue stop
payment notices for “A” warrants. Agencies that issue warrants outside of SHARE are
responsible for cancelling their own warrants and issuing their own stop payments with STO.

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5. To apply for a duplicate warrant, the original payee must complete the DFA FCD SHARE
Affidavit for Duplicate State Warrant form stating that the original warrant was lost, stolen, or
never received. The processing of affidavits must comply with STO procedures.

a. If a warrant was altered or forged and if the warrant has been paid by STO, then the principal
applying for a duplicate warrant must complete the DFA FCD SHARE Altered or Forged
Signature Affidavit for Duplicate Warrant form, stating that the original warrant was
endorsed and deposited because of a forged or altered signature by another principal.

b. If the principal applying for the duplicate is a resident of New Mexico, a Bond for Duplicate
State Warrant form must also be completed.

c. If the principal applying for the duplicate warrant is not a resident of New Mexico, then a
bond equal to the amount of the warrant must be purchased through the principal’s insurance
company with the State of New Mexico as the beneficiary.

E. Applicability

This policy applies to all state agencies.

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FIN 5.6 Affidavit for Duplicate State “A” Warrant

A. Statement

Warrants that are destroyed, lost, or never received, should be cancelled on a timely basis. This
procedure identifies how agencies request that an “A” warrant be cancelled and a replacement
warrant be issued.

B. Procedures

State Agency

1. Send a completed and notarized affidavit from the party requesting the reissue of a warrant to
CPB.

CPB

2. Issue a stop-payment request to STO for the warrant included in the affidavit. If the stop
payment cannot be issued because the subject warrant has already been paid by STO, CPB will
work with the Financial Management Section of DFA – FCD to request that the principal
complete the DFA FCD SHARE Altered or Forged Signature Affidavit for Duplicate Warrant
form prior to issuing a new warrant.

a. In the case of a forged warrant, the principal applying for a duplicate warrant must file a
Bond for Duplicate State Warrant to the State of New Mexico for the original warrant
amount to indemnify the State from all financial losses arising from the unauthorized
diversion of the original warrant and the issuance of the duplicate warrant. The principal
requesting the duplicate warrant must sign the DFA FCD SHARE Altered or Forged
Signature Affidavit for Duplicate Warrant stating that the original warrant was endorsed and
deposited because of a forged signature by another principal. The State’s Fiscal Agent Bank
may also require additional forms to be completed.

Note: The warrant cannot be reissued until the monies have been returned to STO by the cashing
bank.

3. Prepare a payment voucher using SHARE Fund 72400 - Payroll Reissue Account and a Warrant
Cancellation for the amount of the warrant to be reissued, and forward both forms to the FCD
Director or Deputy Director for approval. The request to reissue an employee payroll warrant
must be supported by an affidavit attached to the Warrant Cancellation form.

a. Send the Warrant Cancellation form to Financial Management Section (FMS) to cancel the
warrant in SHARE. Submit the payment voucher to the FCD Pre-Audit Bureau to reissue a
replacement warrant. Submit a register delete request at the fiscal agent bank. Once the
warrant is cancelled in SHARE, FMS will approve the register delete at the fiscal agent bank.

Note: The replacement warrant will be a vouchered payment.

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b. Prepare a journal entry to reestablish cash to Fund 72400 – Payroll Reissue Account for the
affidavit amount and payment voucher. The entry will be a debit to account 101981 –
Interest in SGFIP WFB A Warrant, and a credit to account 292900 – Other Liabilities.

c. Prepare an operating transfer to debit the agency’s fund, 232900 – Due to Other State
Agencies and credit Business Unit 34100, Fund 72400 – Payroll Reissue Account, account
142900 – Due from Other State Agencies. The movement of cash, account 101900 – Interest
in SGFIP will occur when the operating transfer has been posted. This transaction will
reimburse fund 72400 for the reissued warrant.

4. Verify that the replacement warrant issued matches the payment voucher submitted.

5. Send the replacement warrant for employees to their respective state agency.

6. Verify that a warrant issued to replace a cancelled warrant is a duplicate of the original warrant,
except that it may have a different warrant number and issue date and corrections to errors that
caused the cancellation of the original warrant. A warrant endorsed by the original payee to
another party and then lost, must be reissued to the original payee, although the party to whom
the warrant was endorsed may request a duplicate warrant.

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FIN 5.7 Processing Procedures – Affidavit for Duplicate State Vouchered Warrants

A. Statement

Warrants that are destroyed, lost, never received, or stolen should be cancelled on a timely basis.
This procedure defines how to cancel a vouchered warrant and request that a duplicate warrant be
issued.

B. Procedures

State Agency

1. Complete a Warrant Cancellation to cancel a vouchered warrant and send it to FCD for
processing. Support Warrant Cancellation requests with supporting documentation as follows:

a. Attach the original warrant, whenever possible, to the Warrant Cancellation request. If not
available, then proceed with item b.

b. Attach a completed with original signature and original notarized DFA FCD SHARE Affidavit
for Duplicate State Warrant form from the principal whenever the original warrant cannot be
sent to FCD with the Warrant Cancellation request.

c. The Warrant Cancellation form must be signed by someone that has been authorized to sign
the document on the Signature/Transaction Authorization form on file with FCD.

d. If the fiscal agent bank has paid the warrant, a stop-payment request cannot be issued by
FCD. The state agency must obtain the DFA FCD SHARE Affidavit for Forged Warrant
form from the principal wanting the new warrant. See FIN 5.8 Processing Procedures –
Altered or Forged Signature Affidavit for Duplicate State Warrant for further instructions.

FCD

2. Issue a stop-payment request to the STO for vouchered warrants to be cancelled when it is an
emergency. If not an emergency, the stop-payment request will be issued through the positive
pay file sent to the fiscal agent bank each day as the warrants are cancelled. A stop-payment
request for a warrant claimed to have been lost, stolen, never received, or destroyed is processed
depending on whether or not the STO already paid the subject warrant.

a. If the fiscal agent bank has paid the warrant, a stop-payment request cannot be issued by
FCD. Request that the state agency obtain an Affidavit for Forged Warrant form from the
principal wanting the new warrant. See FIN 5.8 Processing Procedures – Altered or Forged
Signature Affidavit for Duplicate State Warrant for further instructions.

b. If the warrant has not been paid by the STO, a stop payment notice must be issued by FCD
and the principal applying for a duplicate warrant must file a notarized DFA FCD SHARE
Affidavit for Duplicate State Warrant form stating that the original warrant was destroyed,
lost, never received, or stolen.

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3. Verify that a warrant issued to replace a cancelled warrant is a duplicate of the original warrant,
except that it may have a different warrant number and issue date and corrections to errors that
caused the cancellation of the original warrant. A warrant endorsed by the original payee to
another party and then lost, must be reissued to the original payee, although the party to whom
the warrant was endorsed may request a duplicate warrant.

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FIN 5.8 Processing Procedures – Altered or Forged Signature Affidavit for Duplicate
State Warrant

A. Statement

Warrants that have been paid by STO must be reissued under the DFA FCD SHARE Altered or
Forged Signature Affidavit for Duplicate Warrant form. This procedure defines how to reissue a
warrant and request that a duplicate warrant be issued.

B. Procedures

State Agency

1. Once it has been determined that the warrant has been redeemed by someone other than the
original payee, the agency must provide to the original payee, the DFA FCD SHARE Altered or
Forged Signature Affidavit for Duplicate Warrant form with original signatures and original
notarization. The State’s Fiscal Agent Bank may also require additional forms to be completed.

a. If the principal (original payee) is a resident of New Mexico, then the Bond for Duplicate
State Warrant form must also be completed.

b. If the principal (original payee) is not a resident of New Mexico, then the principal applying
for the duplicate warrant must also purchase a “bond” with their insurance company, for the
period of six (6) months, for the amount of the redeemed warrant to indemnify the State from
all financial losses arising from the unauthorized diversion of the original warrant and the
issuance of the duplicate warrant. If a resolution has not been reached within the six months
timeframe, then an additional six (6) months bond must be purchased.

c. Send the completed DFA FCD SHARE Altered or Forged Signature Affidavit for Duplicate
Warrant form, the Bond for the Duplicate State Warrant (if applicable) or the Bond issued to
the State of New Mexico (if applicable) to FCD. Agencies authorized to issue their own
warrants must follow the same process outlined under FCD.

FCD

2. Audit the DFA FCD SHARE Altered or Forged Signature Affidavit for Duplicate Warrant form,
the Bond for Duplicate State Warrant (if applicable), the Bond issued to the State of New Mexico
(if applicable).

3. Send copies of documents to DFA attorney for review and advice on further processing.

4. Once the approval from the DFA attorney is given to proceed, notify STO that the warrant was
redeemed by someone other than the principal, and ask that the fiscal agent bank return the
warrant to the last endorser.

5. When STO has been notified by the fiscal agent bank, that the monies have been returned and
deposited to the appropriate warrant account, FCD will then process a deposit to credit the
agency’s account.

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6. FCD will notify the agency that their account has been credited and to proceed with submission of
a new voucher.

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FIN 5.9 Employee Service Awards

A. MAP Standard

To ensure that resources are expended only for authorized purposes, state agencies must have internal
controls to verify that all disbursements are authorized by law.

B. Purpose

This policy establishes criteria for the purchase of employee service awards.

C. Authority

Article IV, Section 14, New Mexico Constitution (Anti-Donation Clause)

NMSA 1978, §6-5-2

D. Policy

Items purchased for use as employee service awards must comply with the following criteria:

1. The item must not have any intrinsic value or any worth to anyone but the recipient and its cost
should not exceed $50.

2. The item must not represent a financial award to the recipient, possess exchange or sale value, nor
provide any purpose other than as an award to the recipient. For example, clocks, watches,
artwork, gift cards, and gift certificates should not be used as employee service awards paid by
the State. Plaques of nominal value are potentially allowable.

3. Affixing the State seal to, or engraving, an item of more than nominal value does not, per se,
reduce its value.

4. Any Purchase Orders and/or Payment Vouchers related to employee service awards rejected by
FCD can be appealed. The appeal should be signed by the Cabinet Secretary or the Agency
Director and addressed to the Department of Finance and Administration (DFA) Secretary or
FCD Director.

5. Employee service awards are considered miscellaneous expenses and must be charged to the
correct expenditure chart of accounts (400) and account code (547900).

E. Applicability

These polices apply to all state agencies; however, the appeals process applies to SHARE state
agencies only.

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FIN 5.10 Disbursements in Advance

A. MAP Standard

To ensure legal compliance and to ensure that resources are expended for only authorized purposes,
state agencies should establish and adhere to adequate internal control procedures.

B. Purpose

This policy identifies standard criteria that state agencies must meet prior to any advance
disbursement of state money. An advance disbursement occurs when the state pays for goods or
services prior to their delivery and/or receipt.

C. Authority

NMSA 1978, §6-5-2

D. Policy

1. Advance payments are allowed under the following circumstances:

a. Advance payments are allowed for employee travel when state agency policies authorize
advances.

b. Advance payments are allowed when the vendor requires payment in advance. For example,
a vendor may require payment in advance for a magazine subscription, for electronic
software service, for rent of a building, to pay for materials acquired prior to event, or at the
time of registration for a seminar.

2. State agencies must provide adequate supporting documentation for all payment advances. The
documentation may include the following:

a. Travel Advances – State agencies must submit an Itemized Schedule of Travel Expenses form,
completed by the traveler two weeks prior to travel date.

b. Subscription Notices – FCD may accept subscription notices if they state that advance
payment is required.

c. Registration –When paying in advance for registration, a copy of the registration notice must
be submitted.

d. Rental Agreements – State agencies may submit rental agreements to support advance
payments. However, FCD will only pay one month in advance for buildings and up to three
months in advance for storage space if the rent due for the storage area does not exceed $100
per month.

e. Airfare – To take advantage of lower prices, an agency may purchase airfare tickets in
advance prior to travel dates.

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f. Catering – Preordering of food items, etc.

3. All payments in advance, except those involving travel or rent of buildings, require approval from
the FCD Director or Deputy Director.

E. Applicability

This policy applies to all state agencies, although the approval requirements for state agencies that do
not process their financial transactions through SHARE may vary.

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FIN 5.11 Travel Reimbursement for Per Diem, Actual Expenses, and Mileage

A. MAP Standard

To ensure legal compliance, disbursements for travel must be made in accordance with state laws and
travel regulations.

B. Purpose

This policy identifies the rules that state agencies must follow when paying for travel, per diem,
reimbursement of actual expenses, and for mileage.

C. Authority

NMSA 1978, §6-5-2

Rule 2.42.2 NMAC

D. Policy

1. Public officers or employees who travel shall receive a per diem amount or shall be reimbursed
for actual lodging, meal expenses, and mileage in accordance with the rules and regulations of the
state.

E. Applicability

This policy applies to all state agencies.

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FIN 5.12 Travel Advances

A. MAP Standard

To ensure legal compliance, disbursements for travel advances must be made in accordance with state
laws and travel regulations.

B. Purpose

This policy identifies the rules that state agencies must follow when disbursing travel advances.

C. Authority

NMSA 1978, §6-5-2

Rule 2.42.2 NMAC

D. Policy

1. Travel Vouchers for travel advances shall NOT be submitted more than two weeks prior to travel
unless significant savings can be realized for purchasing tickets or paying fees in advance.

2. State agencies must maintain records of travel advances and shall collect or pay all outstanding
amounts at fiscal year-end.

E. Applicability

This policy applies to all state agencies. Policy pertaining to the submission of travel advance
requests to FCD applies only to state agencies that process transactions through SHARE.

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FIN 5.13 Payment Vouchers

A. Statement

This procedure addresses the documents flow for Payment Vouchers, including travel
reimbursements.

B. Procedures

State Agency

1. Prepare the Payment. The following highlights completion procedures:

a. Assign the document number to the Payment Voucher.

b. Enter the vendor code on the Payment Voucher. If the vendor code is not in the SHARE
vendor file, request the vendor be added.

c. Reference the correct encumbrance document if one exists. Documents requiring an

encumbrance will not be processed without a Purchase Order reference.

d. Attach the required supporting documentation. Generally, which can be paper or legible
printout of an authenticated e-invoice. If submitting a copy of an invoice, the person
authorized by the state agency to sign Payment Vouchers must certify on the invoice copy
that:

1. The original invoice has been lost or destroyed (whichever applies) and cannot be
located.

2. A true copy of a valid original invoice is being provided.

3. The accounting records have been checked and no part (or only part) of the invoice has
been previously paid. (If an amount has been previously paid, the amount must be
stated.)

Note: Adoption of e-Invoicing continues to grow and the processing conventions built around the
paper invoice must be modified to create an environment where it is as straightforward as possible to
accommodate the use and acceptance of e-Invoicing with the State’s trading partners while assuring
invoicing authenticity and overall control of the payment process.

From a control perspective, e-Invoicing must still ensure authenticity and integrity of the billing. 
“Authenticity of the origin” means the assurance of the identity of the supplier or the issuer of the
invoice and “Integrity of content” means that the required invoice content has not been altered.
Therefore when submitting e-Invoices to Financial Control Division for processing the following
standards shall be established and the responsibility of Agencies as direct recipient of e-Invoices.

Responsible for ensuring authenticity of the origin and the integrity of the content of an electronic
invoice will be the responsibility of the Agency by confirming:

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i. Authenticity of sender, as being the proper contractual party to be sending the invoice,
invoice should be sent directly by the invoicing party to the Agency. 

ii. Agencies should considered an indirectly received invoice as being authentic, and  

iii. Conformation of accuracy, validity and integrity of invoice.

e-Invoices may be printed in black and white or color, but they should all be stamped, preferably with
a color ink other than black as , “Authentic original e-Invoice”.   

2. Submit Voucher Batches to DFA/FCD

a. Vouchers need to be sorted in timely and untimely batches, each in ascending order.

FCD

3. SHARE Workflow transmits Voucher to FCD Audit Bureau for approval and posting.

4. Audit Bureau reviews timely and untimely Voucher Batches utilizing Random Sampling.

5. Audit Bureau sends Vouchers to imaging (store and maintain records electronically).

6. For Wire Transfer Vouchers a separate paycycle is processed.

7. Audit Bureau reviews and approves Special Vouchers.

8. Audit Bureau processes Wire Transfer query daily in designated time frame.

9. IMB processes Wire Transfer paycycle and notifies STO of Wire Transfer Amount via Fax.

State Agency

10. If a document is returned by FCD, make all of the necessary corrections and resubmit the
document along with the Document Re-submittal form.

FCD

11. When the transaction is approved and posted in SHARE, send the approved Payment Voucher to
the Imaging unit.

C. Applicability

This policy applies to AP Vouchered payments disbursed using either the B ACH or B Warrants. D
Warrant imaging is handled by the Department of Transportation and an executed exemption is on
file. Imaging and records retention responsibilities for payment load and agency legacy disbursement
systems are the responsibility of the issuing agency as source records are maintained by the agency as
are all systems used to calculate and cause payment to be issued.

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FIN 5.14 Special Processing

A. MAP Standard

To ensure legal compliance, state agencies must have internal controls for handling expedited
payments.

FCD often accepts state agency requests for special processing. However, these requests usually
require FCD to deviate from normal operating procedures and interrupt the timely processing of other
documents. State agencies are encouraged to keep these requests to a minimum.

B. Purpose

This policy establishes requirements for issuing warrants outside of normal processing procedures
when the need arises to expedite payments.

C. Authority

NMSA 1978, §6-5-2

D. Policy

1. The following method is available to state agencies for expediting payments issued by FCD:

a. “Special Processing” produces a warrant by the same day if FCD approves the request
submitted by the CFO. State agencies must follow FCD’s "special processing" procedures
and submit error-free documents for processing.

2. Special Processing should originate from the chief financial officer of the requesting state agency,
(e.g., Department Secretary, Agency Director, or the Administrative Services Division Director)
if one of these persons cannot sign the requests, prior approval from the FCD Director or Deputy
Director must be obtained before submitting such requests for special processing.

3. The requests must be approved by the FCD Director or Deputy Director. If denied, the payments
will be included in regular processing.

E. Applicability

This policy applies to FCD personnel and to all state agencies for which FCD produces warrants.

F. Procedures

State Agency

1. Prepare a memorandum addressed to the FCD Director or FCD Deputy Director requesting the
special processing of a document. The request should include the following:

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a. Why the state agency believes that the document merits a deviation from normal processing
procedures.

b. Why the state agency did not process the document in a timely manner to avoid special
processing.

c. What is the acceptable processing date for the document?

d. Approval signature of the chief financial officer of the requesting state agency, e.g.,
Department Secretary, Agency Director, or the Administrative Services Division Director; if
one of these cannot sign the requests, prior approval from the FCD Director or Deputy
Director must be obtained before submitting the request for processing.

2. Submit the request to FCD. Requests for special processing or manual warrants must be received
by 11:00 AM.

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FIN 5.15 Policy Exemption

A. Statement

This procedure provides state agencies with guidance on how to request a policy exemption related to
processing disbursement documents through FCD.

B. Procedures

State Agency

1. To request an exemption from FCD’s processing policies, prepare a Policy Exemption Request
form. This form is used only for requests made to FCD.

2. State agencies prepare a Request for Policy Exemption form. The request should include the
following:

a. In the first section of the form, cite the particular policy, procedure, or memorandum from
which an exemption is sought and note the requirement(s) related to the request.

b. In the second section of the form, state the exemption requested, and if possible, the
justification for the request. If necessary, state agencies may attach justifications and
explanations to the form when submitting it to FCD.

c. Provide the fund, business unit and department value for which the exemption is requested.

d. Provide the date(s) for which the exemption is requested. (This could be for one day, one
occurrence, or for the fiscal year.)

e. Obtain the Cabinet Secretary or Agency Director signature on the request.

3. Submit the completed Request for Policy Exemption to FCD.

FCD Director

4. Review and approve or deny the request.

a. If the FCD Director approves the request, forward a copy of the request to the FCD auditor
and the originating state agency.

b. If the FCD Director denies the request, notify the originating state agency by returning the
request as denied.

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FIN 5.16 Establishing Petty Cash, Miscellaneous Change Funds, and Miscellaneous
Special Accounts

A. Statement

To establish a petty cash account, a miscellaneous change fund and miscellaneous special accounts
follow the procedures below.

B. Procedures

The request to establish a petty cash account, a miscellaneous change fund, or a miscellaneous special
account should be made by the chief financial officer of the state agency. The request should be
directed to the FCD Director or FCD Deputy Director.

Control Requirements – All petty cash, change funds, and miscellaneous special funds shall be
restricted to a designated state employee. Funds are to be reconciled
monthly and independently reconciled annually and upon transfer of
custody. CFO’s shall establish written procedures to ensure compliance
with the FIN 5.16 Establishing Petty Cash, Miscellaneous Change Funds,
and Miscellaneous Special Accounts, FIN 5.17 Closing Petty Cash,
Miscellaneous Change Funds, and Miscellaneous Special Accounts, and
FIN 5.18 Updating Petty Cash, Miscellaneous Change Funds, and
Miscellaneous Special Accounts.

State Agency – Chief Financial Officer

Petty Cash Accounts:

1. Submit to FCD a written request to establish a petty cash account (MPC) in SHARE. The request
should include the following:

a. The intended use of the account.

b. The amount desired for the petty cash account.

c. The projected frequency of reimbursements to the account.

d. The name of the custodian of the account along with the state agency address. The custodian
of the account must be a state employee.

e. A statement to certify that state agencies have internal control procedures in place to
safeguard the cash on hand and that the cash will be kept where only the custodian of the
account can access it.

f. Each request must be for one account only, include all required documents and submitted as a
separate request.

Note: All petty cash accounts must be replenished by the end of June of each fiscal year.

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Miscellaneous Change Funds

2. Submit to FCD a written request to establish a miscellaneous change fund (MCF). The request
should include the following:

a. The purpose of the MCF.

b. The dollar amount desired for the MCF.

c. A statement to certify that the state agency has internal control procedures in place to
safeguard the cash on hand and that the cash will be kept where only the custodian of the
account can access it.

d. The name of the custodian of the account along with the state agency address. The custodian
of the account must be a state employee.

e. Each request must be for one account only, include all required documents and submitted as a
separate request.

Miscellaneous Special Accounts:

3. Submit to FCD a written request to establish a miscellaneous special account (MSA). The
request should include the following:

a. The purpose of the MSA.

b. The dollar amount expected to flow through the account, the projected reimbursement request
amounts, and the projected frequency of reimbursements to the account.

c. A written authorization from the State Treasurer to open a bank account at a private banking
institution.

d. A written approval from the DFA Secretary that grants the state agency authority to disburse
money directly from the bank account and an exemption from vouchering through FCD.

e. A copy of the procedures developed by the state agency to report to FCD and the State
Treasurer all money disbursed from the bank account and the budget accounts affected.

f. Each request must be for one account only, include all required documents and submitted as a
separate request.

FCD

4. Review the request and notify the originating state agency whether the request is approved or
denied. If the account is approved, advice the state agency as of the cash balance limitations
placed on the account. Set up the vendor/custodian in the vendor file and notify the agency of the
assigned number.

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Agency

5. Submit payment voucher to FCD using the account 104900, “Petty Cash”, account 102900,
“Cash in Authorized Bank Accounts” for Miscellaneous Special Accounts or 103900, “Other
Cash” for Miscellaneous Change Funds. This entry will establish the account in SHARE.

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FIN 5.17 Closing Petty Cash, Miscellaneous Change Funds, and Miscellaneous Special
Accounts

A. Statement

To close a petty cash and a miscellaneous change fund and miscellaneous special account, follow the
procedures below.

B. Procedures

The agency chief financial officer must notify the FCD Director or FCD Deputy Director that a petty
cash, miscellaneous change fund, or miscellaneous special account is to be closed.

State Agency – Chief Financial Officer

Petty Cash Accounts

1. Submit to FCD a written notification that the established petty cash account (MPC) in SHARE is
to be closed. The notification should include the following:

a. The Petty Cash Vendor Number (MPCxxx) and custodian name.

b. The amount of the petty cash account

c. Certification that the petty cash account has been replenished.

d. The reason for closing the account.

e. Copy of the deposit slip showing the full amount authorized deposited with the fiscal agent
bank.

f. Copy of the SHARE direct journal (DJ) showing the amount deposited to account 104900 -
Petty Cash.

g. Each request must be for one account only, include all required documents and submitted as a
separate request.

Miscellaneous Change Fund

2. Submit to FCD a written notification that the established miscellaneous change fund (MCF) in
SHARE is to be closed. The notification should include the following:

a. The Miscellaneous Change Fund vendor number (MCFxxx) and custodian name.

b. The amount of the change fund.

c. The reason for the closing of the change fund.

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d. Copy of the deposit slip showing the full amount authorized deposited with the fiscal agent
bank.

e. Copy of the SHARE direct journal (DJ) showing the amount deposited to account 1039000 –
Other Cash.

f. Each request must be for one account only, include all required documents and submitted as a
separate request.

Miscellaneous Special Account

3. Submit to FCD a written notification that the established miscellaneous special account (MSA) in
SHARE is to be closed. The notification should include the following:

a. The Miscellaneous Special Account vendor number (MSAxxx).

b. The amount that was authorized.

c. Certification that the MSA has been deposited with the fiscal agent bank.

d. Copy of the SHARE direct journal (DJ) showing the amount deposited to account 1029000 –
Cash in Authorized Bank Accounts.

e. Copy of the letter to the State Treasurer indicating that the MSA is now closed.

f. Each request must be for one account only, include all required documents and submitted as a
separate request.

FCD

4. Review the request and supporting documentation. Notify the vendor file desk to void the MPC,
MCF, or MSA code in the vendor file. Notify the agency upon completion.

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FIN 5.18 Updating Petty Cash, Miscellaneous Change Funds, and Miscellaneous Special
Accounts

A. Statement

To update information or dollar amount of a petty cash and a miscellaneous change fund and
miscellaneous special account, follow the procedures below.

B. Procedures

The agency chief financial officer must notify the FCD Director or FCD Deputy Director that a
change to a petty cash, miscellaneous change fund, or miscellaneous special account is being
requested.

State Agency – Chief Financial Officer

Petty Cash Accounts

1. Submit to FCD a written notification that the established petty cash account (MPC) in SHARE is
being updated. The notification should include the following:

a. The Petty Cash Vendor Number (MPCxxx) and custodian name.

b. The amount of the petty cash account

c. The information being updated/changed:

i. Custodian – Provide previous custodian and new custodian

ii. Address – Provide previous address and new address

iii. Amount of petty cash account – Provide amount and reason for increase or decrease in
account

d. A current reconciliation of the account approved the by the CFO and custodian(s) agreeing
the account changes/updates.

e. Each request must be for one account only, include all required documents and submitted as a
separate request.

Miscellaneous Change Fund

2. Submit to FCD a written notification that the established miscellaneous change fund (MCF) in
SHARE is to be closed. The notification should include the following:

a. The Miscellaneous Change Fund vendor number (MCFxxx) and custodian name.

b. The amount of the change fund.

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c. The information being updated/changed:

i. Custodian – Provide previous custodian and new custodian

ii. Address – Provide previous address and new address

iii. Amount of miscellaneous change account – Provide amount and reason for increase or
decrease in account

d. A current reconciliation of the account approved the by the CFO and custodian(s) agreeing
the account changes/updates.

e. Each request must be for one account only, include all required documents and submitted as a
separate request.

Miscellaneous Special Account

3. Submit to FCD a written notification that the established miscellaneous special account (MSA) in
SHARE is to be closed. The notification should include the following:

a. The Miscellaneous Special Account vendor number (MSAxxx).

b. The amount that was authorized.

c. The information being updated/changed:

i. Amount of special account – Provide amount and reason for increase or decrease in
account

d. A current reconciliation of the account approved the by the CFO agreeing the account
changes/updates.

e. Each request must be for one account only, include all required documents and submitted as a
separate request.

FCD

4. Review the request and supporting documentation. Notify the vendor file desk to void the MPC,
MCF, or MSA code in the vendor file. Notify the agency upon completion.

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FIN 5.19 Requesting the Addition of a New SHARE Vendor

A. Statement

To request adding a vendor or employee to the SHARE vendor file will require a NM Substitute W-9,
Federal form W-9, or Federal Form W-8, as appropriate, and the following the procedures below.
See FIN 5.16 Establishing Petty Cash, Miscellaneous Change Funds, and Miscellaneous Special
Accounts for requirements for updates to custodians of Petty Cash, Miscellaneous Change Funds, and
Miscellaneous Special Accounts.

B. Procedures

State Agency Vendor Relations Point of Contact (POC), ONLY

1. To add a vendor:

a. Review the SHARE vendor file, verifying Tax Identification Number (TIN)/Employee ID
and name, to determine that the vendor is not on the file.

b. Forward to the vendor/employee a blank State of New Mexico Substitute W-9 form to
complete.

i. Only the employee, individual, or entity representative can fill out the W-9/W-8. State
agency personnel should never fill out the W-9 or W-8 for the vendor or employee.

ii. If it is discovered that agency personnel filled out the W-9 and is forcing the vendor to
sign the W-9 so that payment can be made, the approval of the vendor relations POC will
be revoked and the agency CFO’s status may be impacted. See FIN 16.11 Agency
Noncompliance with DFA Requirements.

c. Receive completed W-9/W-8 from vendor/employee and review for completeness, accuracy,
and legibility.

d. Initial and submit to FCD the completed W-9/W-8 form and State of New Mexico Substitute
W-9 Coversheet to [email protected] by entering the vendor’s names on the
subject line of the email.

i. Only the POC shall complete the State of New Mexico Substitute W-9 coversheet by
marking all boxes as appropriate indicating the following:

- The POC has done their due diligence in reviewing SHARE for the
vendor/employee’s existence.

- If the vendor/employee is already in SHARE, does the information on the W-9 match
what is in SHARE.

- Is the W-9 complete, signed, legible, and if applicable a voided check or bank letter
is included if adding ACH information.

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- Ensure any corrections made on the W-9/W-8 were not done with whiteout

- Additions being requested for the vendor and the corresponding address/location ID.

e. If direct deposit (ACH) is marked on the W-9, the agency will need to advise the
vendor/employee to read the “WARNING” section on the International ACH transactions
(IAT) form and initial. Failure to sign will result in the direct deposit not being approved.
Attach voided check/bank written statement as necessary.

i. If a federal W-9 is received and the vendor is requesting ACH payments, then the vendor
will be required to sign the OPTION DIRECT DEPOSIT (ACH) form.

ii. If direct deposit is requested, documentation showing account ownership must be

provided. Acceptable forms are banking information on bank letterhead, bank form,
bank statement, voided printed bank check.

f. If the request is needing to be process immediately, the agency must include in the email why
and by what date the vendor ID is need.

FCD

f. Pre-audit the W-9/W-8 form to ensure that it is complete.

g. If errors are found during the above review, return the W-9/W-8 form to the state agency
POC with a notice of the corrections needed.

h. If no errors are found during the above review, add the vendor/employee to the SHARE
vendor file. Vendors can only have one legal name entered into SHARE. Alternate names,
doing business as, are entered in SHARE on Address Line 1 on all active addresses.

State Agency Vendor Relations POC

2. To establish miscellaneous vendor codes in the SHARE vendor file, complete the SHARE Policy
Exemption form and submit it to FCD for consideration. The request will be either approved or
denied.

3. To establish vendor codes for custodians of petty cash funds, miscellaneous change funds, or
miscellaneous special accounts in the SHARE vendor file, complete a written request signed by
the Chief Financial Officer and submit it to FCD (see FIN 5.16 Establishing Petty Cash Funds,
Miscellaneous Change Funds, and Miscellaneous Special Accounts processing procedures).

4. Review the SHARE vendor file each day to see if the proposed vendor/employee has been added.

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FIN 5.20 Updating Vendor Information in SHARE

A. Statement

To request an update to vendor or employee information will require a NM Substitute W-9, Federal
form W-9, or Federal form W-8, as appropriate, and the following the procedures below. See FIN
5.18 Updating Petty Cash, Miscellaneous Change Funds, and Miscellaneous Special Accounts for
requirements for updates to custodians of Petty Cash, Miscellaneous Change Funds, and
Miscellaneous Special Accounts.

B. Procedures

State Agency Vendor Relations Point of Contact (POC), ONLY

1. Obtain vendor/employee changes.

a. Review the SHARE vendor file, verifying Tax Identification Number (TIN)/Employee ID
and name, to determine what information needs updating.

b. Forward to vendor/employee a blank State of New Mexico Substitute W-9 form requesting
updated information.

i. Only the employee, individual, or entity representative can fill out the W-9 or W-8. State
agency personnel should never fill out the W-9 or W-8 for the vendor or employee.

ii. If it is discovered that agency personnel filled out the W-9 and is forcing the vendor to
sign the W-9 so that payment can be made, the approval of the vendor relations POC will
be revoked and the agency CFO’s status may be impacted. See FIN 16.11 Agency
Noncompliance with DFA Requirements.

c. Initial and submit to FCD the completed W-9 form and State of New Mexico Substitute W-9
Coversheet.

i. Only the POC shall complete the State of New Mexico Substitute W-9 coversheet by
marking all boxes as appropriate indicating the following:

- The POC has done their due diligence in reviewing SHARE for the
vendor/employee’s existence.

- If the vendor/employee is already in SHARE, does the information on the W-9 match
what is in SHARE.

- Is the W-9 complete, signed, legible, and if applicable a voided check or bank letter
is included if adding/updating ACH information.

- Ensure any corrections made on the W-9/W-8 were not done with whiteout

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- Modifications/additions being requested for the vendor and the corresponding

address/location ID.

d. If direct deposit (ACH) is marked on the W-9/W-8, the agency will need to advise the
vendor/employee to read the “WARNING” section on the International ACH transactions
(IAT) form and initial. Failure to sign will result in the direct deposit not being approved.
Attach voided check/bank written statement as necessary.

i. If a federal W-9 is received and the vendor is requesting ACH payments, then the vendor
will be required to sign the OPTION DIRECT DEPOSIT (ACH) form.

ii. If direct deposit is requested, documentation showing account ownership must be

provided. Acceptable forms are banking information on bank letterhead, bank form,
bank statement, voided printed bank check.

e. If the request is needing to be process immediately, the agency must include in the email why
and by what date the vendor ID is need.

f. Only addresses where payment is to be sent should be added to SHARE. When an address is
specifically needed on a purchase order, then please have vendor indicate this on the W-9 or
W-8.

g. Vendors with multiple addresses will be contacted to help review info in SHARE.

FCD

h. Pre-audit the W-9 form to ensure that it is complete.

i. If errors are found during the above review, return the W-9/W-8 form to the state agency
POC with a notice of the corrections needed.

j. If no errors are found during the above review, update the vendor/employee to the SHARE
vendor file. Vendors can only have one legal name entered into SHARE. Alternate names,
doing business as, are entered in SHARE on Address Line 1 on all active addresses.

2. To change custodians of Petty Cash, Miscellaneous Change Funds, and Miscellaneous Special
Accounts:

State Agency CFO

a. Submit to FCD a memorandum requesting the custodian of the MPC, MCF, or the MSA be
changed including the custodian name, dollar of account, and address. (See FIN 5.18
Updating Petty Cash, Miscellaneous Change Funds, and Miscellaneous Special
Accounts for detailed processing procedures).

b. Indicate the vendor code to be changed.

c. Indicate the reason for the change.

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c. Identify the name of the new custodian and/or address update.

FCD

FCD Director or FCD Deputy Director

e. Review the memorandum for completeness.

f. Approve the change – initial the memorandum authorizing the vendor file personnel to update
the SHARE vendor file.

State Agency

3. Review the SHARE vendor file each day to see if the proposed changes to the vendor have been
completed.

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FIN 5.21 Using Vendor Codes in SHARE

A. Statement

This procedure addresses the use of SHARE vendor codes.

B. Procedure

1. To be processed in SHARE, Payment Vouchers, Purchase Orders, Warrant Cancellations, and

Journal Vouchers, must include a vendor code that exists in the SHARE Vendor File.

2. SHARE assigns a specific vendor code.

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FIN 5.22 Warrant Cancellation

A. Statement

This procedure addresses replacing a warrant, which has been cancelled.

B. Procedures

1. There are two types of cancellations:

 Type 1 – cancels the original warrant and automatically opens the original voucher. This
process issues a new warrant to the same vendor for the same amount;

 Type 9 – cancels the original warrant issued and reverses all accounting entries.

2. A journal entry is required for the following types of payments:

 Warrants issued by the Payment Load Submission Process, and;

 May be necessary depending on the timing of the warrant cancellation.

3. Cancellations submitted by the year-end deadline:

a. Regular Voucher – Yes Re-Issue Warrant Same Vendor, Amount, Address, and
Location – If the original warrant is to be cancelled and a new warrant is to be issued,
complete the Warrant Cancellation form with a date of June 30, XXXX as a Type 1
referencing the original accounts used. This will allow the payment voucher to be reopened
and a new warrant to be issued.

b. Regular Voucher – Yes Re-Issue Warrant with Different Vendor, Amount, Address, or
Location – If the original warrant is to be cancelled because an incorrect vendor was selected
and a new payment is necessary, complete the Warrant Cancellation form with a date of June
30, XXXX as a Type 9 referencing the original accounts used. Prepare a new payment
voucher with the correct vendor and it MUST BE ATTACHED to the Warrant Cancellation
form. If the original payment voucher referenced a purchase order, FCD will create a
reversal voucher crediting the account(s) that were originally charged.

c. Regular Voucher – No Re-Issue Warrant – If the original warrant is to be cancelled and no

new warrant will be issued, complete the Warrant Cancellation form with a date of June 30,
XXXX as a Type 9 referencing the original accounts used. If the original payment voucher
referenced a purchase order, FCD will create a reversal voucher crediting the account(s) that
were originally charged.

d. Voucher Build – Yes Re-Issue Warrant Same Vendor, Amount, Address, Location, and
Reissued from the Original Voucher – If the original warrant is to be cancelled and a new
warrant is to be issued, complete the Warrant Cancellation form with a date of June 30,

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XXXX as a Type 1 referencing the original accounts used. This will allow the payment
voucher to be reopened and a new warrant to be issued.

e. Voucher Build – Re-Issue Warrant from External System – If the original warrant is to be
cancelled and new warrant will be reissued from external system, complete the Warrant
Cancellation form with a date of June 30, XXXX as a Type 9 referencing the original
accounts used and include a note that payment will be issued from external system.

f. Voucher Build – No Re-Issue Warrant – If the original warrant is to be cancelled and no

new warrant will be issued, complete the Warrant Cancellation form with a date of June 30,
XXXX as a Type 9 referencing the original accounts used.

Note: FCD cannot re-establish any encumbrances after the year-end deadline for Purchase
Documents established in the annual FCD Year-End Deadlines manual.

g. Payment Load – Yes Re-Issue Warrant – If the original warrant is to be cancelled and a
new warrant is to be issued, complete the Warrant Cancellation form with a date of June 30,
XXXX as a Type 9 referencing the original accounts used. The agency will need to attach a
new single payment voucher with a date of June 30, XXXX referencing the original accounts
used. The agency must attach a WCN journal entry with a date of June 30, XXXX to record
the cancellation, debiting account 1019xx – Investment SGFIP and crediting the original
expenditure or liability account(s). The following must be included with the warrant
cancellation as back-up:

- A copy of the original Payment Load Submission form,

- A copy of the Payment detail file showing when the individual was actually paid that
also includes the total payment amount agreeing to the Payment Load Submission
form, and
- A copy of the line tab of the EXT journal entry from SHARE.

h. Payment Load – No Re-Issued Warrant – If the original warrant is to be cancelled and no

new warrant is to be issued, complete a Warrant Cancellation form Type 9 with a date of
June 30, XXXX, referencing the original accounts used. The agency must attach a WCN
journal entry with a date of June 30, XXXX to record the cancellation, debiting account
1019xx – Investment SGFIP and crediting the original expenditure or liability account(s).
The following must be included with the warrant cancellation as back-up:

- A copy of the original Payment Load Submission form,

- A copy of the Payment detail file showing when the individual was actually paid that
also includes the total payment amount agreeing to the Payment Load Submission
form, and
- A copy of the line tab of the EXT journal entry from SHARE.

4. Processing Warrant Cancellations after the year-end deadline:

a. Agencies must resubmit all rejected warrant cancellations not submitted to FCD by the year-
end deadline as new documents for the current fiscal year.

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b. Regular Voucher – Yes Re-Issue Warrant Same Vendor, Amount, Address, and
Location – If the original warrant is to be cancelled and a new warrant will be issued,
complete the Warrant Cancellation form with a current date as a Type 1 referencing the
original accounts used. This will allow the payment voucher to be reopened and a new
warrant to be issued.

c. Regular Voucher – Yes Re-Issue Warrant with Different Vendor and/or Amount but
with Same Address and Location – If the original warrant is to be cancelled because an
incorrect vendor and/or amount and a new payment is necessary, complete the Warrant
Cancellation form with a current date as a Type 9 referencing the original accounts used.
Prepare a new payment voucher with the correct vendor and it MUST BE ATTACHED to the
Warrant Cancellation form. An approved Request to Pay Prior Year Bills form must be
attached to the new payment voucher using account 547999 – Miscellaneous Expense –
Request to Pay Prior Year Bills. In addition, the agency must attach a WCN journal entry
with a current date debiting the original expenditure account(s) and crediting account 241900
– Stale Dated Warrants/Due to the General Fund when there is no purchase order attached to
the voucher. If the original payment voucher referenced a purchase order, a WCN journal
entry is not required. FCD will create a reversal voucher crediting account 241900 Stale
Dated Warrants/Due to the General Fund.

The WCN journal is required to offset the debit to the expenditure account that is recorded
during the warrant cancellation process when there is no purchase order attached to the
voucher. If the WCN journal entry is not posted, the original expenditure amount is recorded
twice, once in the prior fiscal year and again in the fiscal year the cancellation occurred.
When the warrant is cancelled, SHARE reverses the original transactions using all of the
chartfields included in each transaction. Since the original transaction used the prior year’s
budget reference and class code, the WCN journal entry will also need to reference the same
budget reference and class to properly net the transactions to zero in the current fiscal year.
A budget error will occur when the WCN journal is edited, save the journal and submit with
the warrant cancellation form.

Note: FCD cannot re-establish any encumbrances after the year-end deadline for Purchase
Documents established in the annual FCD Year-End Deadlines manual.

d. Regular Voucher – Yes Re-Issue Warrant with Same Vendor and Amount but with
Different Address and/or Location – If the original warrant is to be cancelled because the
address and/or location is different for the vendor, complete the Warrant Cancellation form
with a current date as a Type 9 referencing the original accounts used. Prepare a new
payment voucher with the correct address and/or location referencing account 292900 –
Other Liabilities and attach to the Warrant Cancellation form. In addition, the agency must
attach a WCN journal entry with a current date debiting the original expenditure account(s)
and crediting account 292900 – Other Liabilities when there is no purchase order attached to
the voucher. If the original payment voucher referenced a purchase order, a WCN journal
entry is not required. FCD will create a reversal voucher crediting account 292900 – Other
Liabilities.

The WCN journal is required to offset the debit to the expenditure account that is recorded
during the warrant cancellation process when there is no purchase order attached to the

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voucher. If the WCN journal entry is not posted, the original expenditure amount is recorded
twice, once in the prior fiscal year and again in the fiscal year the cancellation occurred.
When the warrant is cancelled, SHARE reverses the original transactions using all of the
chartfields included in each transaction. Since the original transaction used the prior year’s
budget reference and class code, the WCN journal entry will also need to reference the same
budget reference and class to properly net the transactions to zero in the current fiscal year.
A budget error will occur when the WCN journal is edited, save the journal and submit with
the warrant cancellation form.

e. Regular Voucher – No Re-Issue Warrant – If the original warrant is to be cancelled and a

new warrant will not be issued, complete the Warrant Cancellation form with a current date
as a Type 9 referencing the original accounts used. In addition, the agency must attach a
WCN journal entry with a current date debiting the original expenditure account(s) and
crediting account 241900 – Stale Dated Warrants/Due to the General Fund when there is no
purchase order attached to the voucher. If the original payment voucher referenced a
purchase document, a WCN journal entry is not required. FCD will create a reversal voucher
crediting account 241900 Stale Dated Warrants/Due to the General Fund.

The WCN journal is required to offset the debit to the expenditure account that is recorded
during the warrant cancellation process when there is no purchase order attached to the
voucher. If the WCN journal entry is not posted, the original expenditure amount is recorded
twice, once in the prior fiscal year and again in the fiscal year the cancellation occurred.
When the warrant is cancelled, SHARE reverses the original transactions using all of the
chartfields included in each transaction. Since the original transaction used the prior year’s
budget reference and class code, the WCN journal entry will also need to reference the same
budget reference and class to properly net the transactions to zero in the current fiscal year.
A budget error will occur when the WCN journal is edited, save the journal and submit with
the warrant cancellation form.

f. Voucher Build – Yes Re-Issue Warrant Same Vendor, Amount, Address, Location, and
Reissued from the Original Voucher – If the original warrant is to be cancelled and a new
warrant will be issued, complete the Warrant Cancellation form with a current date as a Type
1 referencing the original accounts used. This will allow the payment voucher to be reopened
and a new warrant to be issued.

g. Voucher Build – Re-Issue Warrant Same Vendor, Amount, Address, Location or

Different Address and/or Location from External System – If the original warrant is to be
cancelled and reissued from an external system, prepare and issue new payment through the
agency’s external system using the established accounting string for voucher build payments
for your agency. Then, complete the Warrant Cancellation form with a current date as a
Type 9 referencing the original accounts used. In addition, to correct the double accounting,
the agency must attach a WCN journal entry with a current date debiting the original payment
voucher’s expenditure account(s) and crediting the new payment voucher’s expenditure
account(s). The WCN journal shall include a copy of each payment voucher’s accounting
string details as support for the transaction.

The WCN journal is required to offset the debit to the expenditure account that is recorded
during the warrant cancellation process when there is no purchase order attached to the

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voucher. If the WCN journal entry is not posted, the original expenditure amount is recorded
twice, once in the prior fiscal year and again in the fiscal year the cancellation occurred.
When the warrant is cancelled, SHARE reverses the original transactions using all of the
chartfields included in each transaction. Since the original transaction used the prior year’s
budget reference and class code, the WCN journal entry will also need to reference the same
budget reference and class to properly net the transactions to zero in the current fiscal year.
A budget error will occur when the WCN journal is edited, save the journal and submit with
the warrant cancellation form.

Example:
Payment 1 was issued on January 1, 2017 for $100.00 to expense account 547300, budget
reference 117, class code A0000 and was never received

Payment 2 was issued on December 1, 2017 to replace Payment 1 for $100 to expense
account 547300, budget reference 118, class code B0000

Payment 1 was cancelled on December 5, 2017 resulting in a debit to cash and a credit to
expense account 547300, budget reference 117, class code A0000

To correct the double accounting, a WCN journal will debit Payment 1’s accounting string
from the cancellation done on December 5, 2017. The offset will be a credit to Payment 2’s
accounting string.

i.e WCN Dated 12/05/2017

DR Expense 547300, Budget Reference 117, Class Code A0000 100.00

CR Expense 547300, Budget Reference 118, Class Code B0000 100.00

h. Voucher Build – Yes Re-Issue Warrant with Different Vendor and/or Amount – If the
original warrant is to be cancelled because an incorrect vendor and/or amount and a new
payment is necessary, prepare and issue new payment through the agency’s external system
using the established accounting string for voucher build payments for your agency. An
approved Request to Pay Prior Year Bills form must be requested for the new payment and a
copy must be attached to the warrant cancellation request. Then, complete the Warrant
Cancellation form with a current date as a Type 9 referencing the original accounts used. In
addition, the agency must attach a WCN journal entry with a current date debiting the
original expenditure account(s) and crediting account 241900 – Stale Dated Warrants/Due to
the General Fund when there is no purchase order attached to the voucher.

The WCN journal is required to offset the debit to the expenditure account that is recorded
during the warrant cancellation process. If the WCN journal entry is not posted, the original
expenditure amount is recorded twice, once in the prior fiscal year and again in the fiscal year
the cancellation occurred. When the warrant is cancelled, SHARE reverses the original
transactions using all of the chartfields included in each transaction. Since the original
transaction used the prior year’s budget reference and class code, the WCN journal entry will
also need to reference the same budget reference and class to properly net the transactions to
zero in the current fiscal year. A budget error will occur when the WCN journal is edited,
save the journal and submit with the warrant cancellation form.

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Policies & Procedures FIN 5.22

i. Voucher Build – No Re-Issue Warrant – If the original warrant is to be cancelled and a

new warrant will not be issued, complete the Warrant Cancellation form with a current date
as a Type 9 referencing the original accounts used. In addition, the agency must attach a
WCN journal entry with a current date debiting the original expenditure account(s) and
crediting account 241900 – Stale Dated Warrants/Due to the General Fund when there is no
purchase order attached to the voucher.

Note: A WCN journal entry with a current date debiting account 241900 –Stale Dated Warrants/Due
to the General Fund and crediting account 4969xx – Miscellaneous Revenue should be attached to
the Warrant Cancellation form if this is a non-reverting fund.

i. Payment Load – Yes Re-Issue Warrant Same Vendor, Amount, Address, and Location
– If the original warrant is to be cancelled and a new warrant is to be issued, complete the
Warrant Cancellation form with a current date as a Type 9 referencing the original accounts
used. The agency will need to attach a new single payment voucher with a current date
referencing account 292900 – Other Liabilities. The agency must attach a WCN journal entry
with a current date to record the cancellation The agency must attach a WCN journal entry
with a current date to record the cancellation, debiting account 1019xx – Investment SGFIP
and crediting account 292900 – Other Liabilities. The following must be included with the
warrant cancellation as back-up:

- A copy of the original Payment Load Submission form,

- A copy of the Payment detail file showing when the individual was actually paid that
also includes the total payment amount agreeing to the Payment Load Submission
form, and
- A copy of the line tab of the EXT journal entry from SHARE.

j. Payment Load – Yes Re-Issue Warrant with Different Vendor and/or Amount but with
Same Address and Location – If the original warrant is to be cancelled and a new warrant is
to be issued, complete the Warrant Cancellation form with a current date as a Type 9
referencing the original accounts used. Prepare a new single payment voucher with the
correct vendor and/or amount and attach to the Warrant Cancellation form. An approved
Request to Pay Prior Year Bills form must be attached to the new payment voucher using
account 547999 – Miscellaneous Expense – Request to Pay Prior Year Bills. In addition, the
agency must attach a WCN journal entry with a current date, debiting account 1019xx –
Investment in SGFIP and crediting account 241900 – Stale Dated Warrants/Due to the
General Fund. The following must be included with the warrant cancellation as back-up:

- A copy of the original Payment Load Submission form,

- A copy of the Payment detail file showing when the individual was actually paid that
also includes the total payment amount agreeing to the Payment Load Submission
form, and
- A copy of the line tab of the EXT journal entry from SHARE.

k. Payment Load – Yes Re-Issue Warrant with Same Vendor and Amount but with
Different Address and/or Location – If the original warrant is to be cancelled and a new
warrant is to be issued, complete the Warrant Cancellation form with a current date as a
Type 9 referencing the original accounts used. Prepare a new payment voucher with the

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FIN 5 – Payables
Policies & Procedures FIN 5.22

correct address and/or location referencing account 292900 – Other Liabilities and attach to
the Warrant Cancellation form. In addition, the agency must attach a WCN journal entry
with a current date, debiting account 1019xx – Investment in SGFIP and crediting account
292900 – Other Liabilities. The following must be included with the warrant cancellation as
back-up:

- A copy of the original Payment Load Submission form,

- A copy of the Payment detail file showing when the individual was actually paid that
also includes the total payment amount agreeing to the Payment Load Submission
form, and
- A copy of the line tab of the EXT journal entry from SHARE.

j. Payment Load – No Re-Issued Warrant – If the original warrant is to be cancelled and a

new warrant will not be issued, complete the Warrant Cancellation form with a current date
as a Type 9 referencing the original accounts used. The agency must attach a WCN journal
entry with a current date debiting account 1019xx – Investment SGFIP and crediting account
241900 – Stale Dated Warrants/Due to the General Fund. A copy of the original Payment
Load Submission form, a copy of the Payment file indicating when the individual was
actually paid that also includes the total payment amount agreeing to the Payment Load
Submission form, and a copy of the line tab of the EXT journal entry from SHARE must also
be attached to the Warrant Cancellation form.

4. Warrant cancellations should not be processed in batches. As soon an agency determines a

warrant needs to be cancelled, the warrant cancellation should be prepared and submitted to FCD
for processing. All warrant cancellations should be submitted to FCD no later than 5 working
days prior to month end.

5. When only the warrant is in the agency’s possession, the agency shall tape the warrant to a
standard sheet of paper, 8 ½” x 11”.

Note: A WCN journal entry with a current date debiting account 241900 –Stale Dated Warrants/Due
to the General Fund and crediting account 4969xx – Miscellaneous Revenue should be attached to
the Warrant Cancellation form if this is a non-reverting fund.

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FIN 5 – Payables
Policies & Procedures FIN 5.23

FIN 5.23 Minor Purchases of Food, Refreshments, and Similar Consumable Purchases

A. MAP Standard

To ensure that resources are efficiently and judiciously used for authorized purposes only,
state agencies must have internal controls to verify that all disbursements are authorized by
law.

B. Purpose

This policy establishes criteria for the purchase of small amounts of food, refreshments,
snacks and similar purchases under the current individual per diem rate.

C. Authority

Article IV, Section 14, New Mexico Constitution (Anti-Donation Clause)

NMSA 1978, §6-5-2

D. Policy

Small amounts of food, refreshments, snacks and similar purchases must comply with the
following:

1. The purchases must be related directly to an event (training, conference, etc.) that is a
part of the agency’s mission and regular course of business.

2. The purchases must not exceed the current partial day per diem rate for meals per
attendee at the event. For example single meal $12.00; two meals $20.00 per individual.

3. Certification of per person expenditure accompany the invoice when submitted to FCD
for payment.

4. In those cases where the amounts would exceed those established in this Standard, a
White Paper will be required. However, every effort should be made to keep costs below
the current per diem rate for meals. Compelling exigent circumstances will need to be
present and proven in order to exceed current per diem meal rates.

5. Such purchases are considered miscellaneous expenses and must be charged to the
correct expenditure chart of accounts (400) and account code (547900).

6. Must be for the convenience of the agency.

7. Must be infrequent.

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Policies & Procedures FIN 5.23

8. Employer paid meals are considered a fringe benefit by the IRS and could be taxable
income. However, meals for the most part are excluded from the employee's wages as it
is considered a de minimis (little value) benefit. Care needs to be taken as to frequency
and amount spent on meals to ensure it remains de minimis in the eyes of the IRS.

E. Applicability

These polices apply to all state agencies.

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FIN 5 – Payables
Business Process – AP-01

AP-01 Accounts Payable – Accounts Payable (Overview)

Financial
Agency Control Division
(FCD)

Receive an Invoice

Process
4
To A: Authorize
New FCD Audit Bureau B: Record
AP-02 Yes
Vendor? Approves and E: Verify S
Posts Voucher

No A – AP01 / 6 M – AP01 / 4

A – AP01 / 5 M – AP01 / 9

Vendor M – AP01 / 7 M – AP01 / 10

To
AP-03 Yes Info
Update? M – AP01 / 11

No
Note:
Payment Selection /
Payment Pos t /
7
5 Print Warrants
1 Process Positive Pay & ACH
FCD IT Support
Create Voucher from A: Authorize Generate and send
D: Verify I Unit Processes
invoice files to Fiscal Agent
Payment
Bank

A – AP01 / 2 M – AP01 / 1 8
Notify FMS of ACH
A – AP01 / 3 Amount sent to
Fiscal Agent bank to
confirm receipt
6
2 Warrant issued or
Process Voucher: ACH Advice to
Matching Document M – AP01 / 8 End
Vendor and sent to
Tolerance Budget FCD Distribution
Check Center

Process 3
A: Authorize Approve voucher
E: Verify S
online

M – AP01 / 4

Picks Up Warrants
From FCD
Distribution

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Business Process – AP-01

AP-01 Accounts Payable – Accounts Payable (Overview) (Control Points)

Agency must get FCD approval for a miscellaneous vendor card entry prior to creating and verifying a voucher using
M – AP01/ 1
“Misc. Vendor”.

The Document tolerance tests is per fund with the rule that a voucher can not be more than $1,500 over the original
A – AP01 / 2
purchase. If document tolerance fails, the voucher will not be available for approval or further processing until corrected.

SHARE performs an automated 3 way match (purchase order, voucher, and invoice) every two hours . If the voucher
A – AP01 / 3 fails matching, the voucher will not be available for approval or further processing until either the “receiver” or voucher
are corrected.

Prior to posting, the FCD Audit Bureau reviews and approves voucher packages online to vendors for accuracy,
M – AP01 / 4
timeliness, and procurement code compliance.

SHARE segregates voucher authorization restricting the transmission of Voucher workflow to the FCD Audit Bureau for
A – AP01 / 5
approval and verification prior to posting.

Encrypted pay cycle files are received by STO and recorded prior to sending the positive pay file to the Fiscal Agent
A – AP01 / 6
Bank.

FCD Audit Bureau reviews and approves Voucher Package to prevent services accepted do not go unrecorded resulting in
M – AP01 / 7
inappropriate payments or recorded liabilities.

M – AP01 / 8 FMS confirms with Bank to verify ACH transfer were received.

FCD Audit Bureau reviews and approves voucher packages to record current period service receipts are recorded them in
M – AP01 / 9 the correct period to prevent understatement of inventory and unrecorded liabilities.

FCD Audit Bureau reviews and approves voucher packages to review if invoice amount is greater than the approved
M – AP01 / 10
purchase order amount is processed possibly resulting in inappropriate purchase and payment to the vendor.

M – AP01 / 11 FCD Audit Bureau audits, reviews and processes all financial transactions for compliance with State and Federal Laws,
regulations DFA policies and procedures.

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FIN 5 – Payables
Business Process – AP-02

AP-02 Accounts Payable – Vendor Creation (Overview)

Financial
Agency Control Division
(FCD)
From From From
AP-04 New BN-01 AP-01
vendor to state

Note:
4 W-9 is compared to
1 Employee completes payroll database to
Agency vendor point the “SHARE verify if vendor is an
Is vendor an employee.
of contact obtains Employee Vendor Yes
employee?
the vendor substitute Registration” form
W-9 and voided and submits to
check if ACH Agency directly
No Note:
FCD is responsible for
initial set up and revi ew
5 of vendor W-9 or
“Em ployee Registration
2 Review of vendor Form”, and voided check
Process
A: Authorize Upon receipt of substitute W-9 or if applicable
B: Record completed substitute “SHARE State Employee
D: Verify I
W-9, the performs Vendor Registration
an audit for Form” or CFO Letter
completeness
Process
A – AP02/ 2
M – AP02 / 1 A: Authorize
E: Verify S
A – AP02/ 3
3
Submit forms or
written CFO requests
for vendor codes on
6
PCFs, MCFs or MSAs
Updated vendor
directly to
record in SHARE
Vendor.Relations
@state.nm.us

A 7
Start the Annual
Note:
Verify if the proposed 1099 Form Process
vendor has been added

8
Review the SHARE
vendor file
M – AP02/ 4

Process
D: Verify I

End

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FIN 5 – Payables
Business Process – AP-02

AP-02 Accounts Payable – Vendor Creation (Control Points)

Upon receipt of a completed substitute W-9, the authorized (Appointed by CFO) records and verifies while performing an
M – AP02/ 1
audit in order to avoid incomplete vendor information which could result in procurement activity errors.

FCD restricts system access in SHARE to record and verify vendor file edits/deletions in order to achieve proper
A – AP02/ 2
segregation of duties.

A – AP02/ 3 SHARE prevents recording of duplicate vendors which could result in duplicate invoice entry/vendor payment.

M – AP02/ 4 Agency reviews vendor edits in SHARE to verify vendor information to prevent potential procurement activity errors.

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FIN 5 – Payables
Business Process – AP-03

AP-03 Accounts Payable – Vendor Updates (Overview)

Financial Control
Agency Division (FCD)

From
Vendor Changes
AP-01 A
Address / Name
Note: Registration form is
compared to payroll database
to verify if vendor is an
employee

Is Vendor an
1 Yes
Employee?
Agency vendor point
of contact obtains
W -9 substitute Process A – AP03/ 2
changes A: Authorize
E: Verify S
A – AP03/ 3
M – AP03/ 1

No
2
W-9 forms, “SHARE State
Employee Vendor
Registration” form or CFO
Letter requesting custodian
changes to MPCs, MCFs
and MSAs submitted
3
directly to Vendor.Relations
Agency vendor
@state.nm.us
obtains completed 4
“Employee Update the Vendor
Registration” form record in SHARE
and submits to FMB
A directly

5
Review the SHARE Print a before and
vendor file to see if after screen shot of
the proposed vendor SHARE
changes has been
added

Process M – AP03/ 4
D: Verify I

End

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FIN 5 – Payables
Business Process – AP-03

AP-03 Accounts Payable – Vendor Updates (Control Points)

Upon receipt of a completed substitute W-9, the authorized (Appointed by CFO) records and verifies while performing an
M – AP03/ 1
audit in order to avoid incomplete vendor information which could result in procurement activity errors.

FCD restricts system access in SHARE to record and verify vendor file edits/modifications in order to achieve proper
A – AP03/ 2
segregation of duties.

A – AP03/ 3 SHARE prevents recording of duplicate vendors which could result in duplicate invoice entry/vendor payment.

M – AP03/ 4 Agency reviews vendor edits in SHARE to verify vendor information to prevent potential procurement activity errors.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 5 – Payables
Business Process – AP-04

AP-04 Accounts Payable – Create Voucher Online

Financial Control
Agency Division (FCD)

1
Payee exist as Create Voucher in SHARE
using “Single Payment”
vendor in No voucher style and with
SHARE? “Misc. Vendor”
Enter payee data

Process
A: Authorize M – AP04/1
Yes D: Verify 1

2
Invoice
Link the voucher to Note:
related to a Yes
a Receiver / Use “copy from source doc”
purchase order?
Purchase Order function to link the voucher to a
recei ver/ purchase order and
automatically bring in the vendor
name, items or services
purchased; Use Regular Voucher
No St yle. Indicate if CHK or ACH

6
Select regular 3
4
voucher style and SHARE performs
SHARE performs
select appropriate document tolerance
matching
vendor from vendor check
master file

Process A – AP04/2 Process A – AP04/3

D: Verify I D: Verify 1

To
Vendor Info
AP-02 No
Match?

Yes

5
SHARE performs
budget checks
(appropriation &
cash)

Process A – AP04/4
D: Verify 1

To
Voucher Travel
AP-5 No
Related?

To
AP-6 Yes

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FIN 5 – Payables
Business Process – AP-04

AP-04 Accounts Payable – Create Voucher Online (Control Points)

Agency must get FCD approval for a miscellaneous vendor card entry prior to creating and verifying a voucher using
M – AP04 / 1
“Misc. Vendor”.

The Document tolerance tests is per fund with the rule that a voucher can not be more than $1,500 over the original
A – AP04 / 2
purchase. If document tolerance fails, the voucher will not be available for approval or further processing until corrected.

SHARE performs an automated 3 way match (purchase order, voucher, and invoice) every two hours . If the voucher
A – AP04 / 3 fails matching, the voucher will not be available for approval or further processing until either the “receiver” or voucher
are corrected.

A voucher must pass budget checking before it is approved. Budget checking includes appropriation level budget, cash
budget, and department (agency) level budgets. If any budget check fails, the voucher will not be available for further
A – AP04 / 4
processing until a budget journal entry is made or the accounting line on the voucher is changed to a line item with
available budget.

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FIN 5 – Payables
Business Process – AP-05

AP-05 Accounts Payable – Voucher Documentation, Processing Approval

Financial Control
Agency Division (FCD)

From
AP-04

1 2
Note:
Voucher Package includes: Prepare Voucher SHARE Workflow Process
transmits Voucher to A: Authorize
- Voucher Batch Report Package for FCD Audit Bureau B: Record
- Original Invoices
- White Paper(s)
submission to DFA for approval and E: Verify S
- Item ized Schedule Travel Audit Bureau posting
Expens es Form
- Non Travel Reimbursem ent
A – AP05a / 1

3
From Audit Bureau Process
A: Authorize
AP-06 reviews and B: Record
approves Voucher E: Verify S
Package

M – AP05a / 2

4
To Audit Bureau sends
Process
Voucher Packages to
AP-05.1 imaging (store and
B: Record

maintain records
electronically)

M – AP05a / 3

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FIN 5 – Payables
Business Process – AP-05

AP-05 Accounts Payable – Create Voucher Online (Control Points)

SHARE segregates voucher authorization restricting the transmission of Voucher workflow to the FCD Audit Bureau for
A – AP05a / 1
approval and verification prior to posting.

Prior to posting, the Audit Bureau reviews and approves voucher packages online to vendors for accuracy, timeliness,
M – AP05a / 2 procurement code compliance.

The FCD Audit Bureau sends reviewed and approved voucher packages to imaging in order to comply with §6-5-2-1(N),
M – AP05a / 3 storing and maintaining records electronically.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 5 – Payables
Business Process – AP-05.1

AP-05.1 Accounts Payable – Voucher Documentation, Processing Approval

Financial Control
Agency Division (FCD)

1
FCD IT Support
Unit (FCDITSU)
defines payment
selection criteria and
runs payment
selection process

2 3
Pay Cycle Manager FCDITSU 4
run by FCDITSU Operations Runs Create Positive Pay
Operations creating ACH and Warrant File
both a warrant and Exception Report.
ACH file

Process
Process B: Record
A – AP05b / 1
E: Verify S M – AP05b / 3

6
9 5
7 FCD Operations
Review report of Generate and send
Signs a Warrant prints and delivers to
ACH and warrants files to Fiscal Agent
Register FMB warrants &
not processed Bank
warrant registers
Note:
Process M – AP05b / 4 FM B and t he Audit
A: Authorize Bureau Chi efs review
M – AP05b / 2
C : Record report of ACH and
D: Verify I warrants not processed
and work together to Process
10 resol ve. E: Verify S End
FCDITSU
8 Operations runs
Warrants issued to From Process
report to print bar
Vendor AP-05 B: Record
code sheets for
matching with
voucher package for
imaging M – AP05b / 5

End
Document
Imaged (File)

End

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FIN 5 – Payables
Business Process – AP-05.1

AP-05.1 Accounts Payable – Voucher Documentation, Processing Approval (Control Points)

A – AP05b / 1 Encrypted pay cycle files sent by FCD Operations to the Fiscal Agent Bank.

M – AP05b / 2 The Pre-Audit Bureau Chief assists state agencies in resolving financial questions or problems to verify compliance with
§6-5-2-1(R) by reviewing the “Warrants Not Processed Report” and work together to resolve open items.

M – AP05b / 3 FMS confirms with Bank to verify ACH transfer were received.

M – AP05b / 4 Upon warrant disbursement, the agency reviews warrants prior to sign-off, verifying completeness.

The FCD IT Support Unit sends matched bar code sheets and voucher packages to imaging in order to comply with §6-5-
M – AP05b / 5
2-1(N), storing and maintaining records electronically.

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FIN 5 – Payables
Business Process – AP-06

AP-06 Accounts Payable – Travel Processing

Agency
Travel Required Travel Taken

From From
From From
AP-04 PY-02b
A AP-04 PY-02b

Travel advance
No A Was
issued?
travel advance
issued? No
Yes
Yes

1 3
Prepare ISTE for Prepare ISTE and 5
Note: obtain Agency
Prepare ISTE for travel travel advance & Note: Note: Prepare ISTE for
advance & obtain agency obtain Agency Prepare ISTE, include travel approval Prepare ISTE for 100% of 100% of travel cost
advance, copy of print screen travel cost, copy of print
approval (if total travel approval of the voucher attributes tab, screen of voucher at tributes
>$5,000 need to encum ber
& obtain agency approval tab, & obtain agency
through requisi tion and
obtain agency head approval
approval).
6
2 Use “regular
4
Use “prepaid or voucher” style to
Link voucher to
regular voucher” Note: create voucher for
advance (prepaid
style to create Use “regular voucher” style total travel expense
to create voucher for total voucher) and
voucher for travel
travel expense. Link voucher purchase order
advance (80%) to advance (prepaid voucher)
and purchase order for
SHARE to net payment.

7
SHARE performs
Process
D: Verify 1 budget checks
(appropriation &
cash)

A – AP06 / 1

Process 8 Voucher Package To

A: Authorize
B: Record Approve Voucher AP-05
E: Verify S through Workflow

A – AP06 / 2 Note: including Voucher Batch

Report (batch & indivi dual) and
ISTE form for submiss ion to DFA
Audit Bureau

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FIN 5 – Payables
Business Process – AP-06

AP-06 Accounts Payable – Travel Processing (Control Points)

A voucher must pass budget checking before it is approved. Budget checking includes appropriation level budget, cash
budget, and department (agency) level budgets. If any budget check fails, the voucher will not be available for further
A – AP06 / 1
processing until a budget journal entry is made or the accounting line on the voucher is changed to a line item with
available budget.

SHARE segregates voucher authorization restricting the transmission of Voucher workflow to the FCD Audit Bureau for
A – AP06 / 2
approval and verification prior to posting.

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FIN 5 – Payables
Business Process – AP-07a

AP-07a Accounts Payable – Warrant Cancellation BY Year-end Closing Deadline

From
EX-01 Re-Issue Warrant No

Yes
Payment Load

Same Vendor, WC – Type 9

Yes Amount,
WCN – JE (current date, dr
Address, &
101900, cr expenditure or
Location
liability)

Payment Load No
Regular PV – With PO
WC – Type 9
WC – Type 9
WCN – JE (current date, dr 101900,
cr expenditure or liability) Payment Load
(FMB creates reversal
WC – Type 9 voucher, credit expenditure or
New Current Date PV liability)
WCN – JE (current date, dr 101900,
cr expenditure or liability)
Regular PV – Without PO
Regular PV With or Without New Current Date PV
PO WC – Type 9

WC – Type 1
Regular PV – With PO

WC – Type 9

Warrant Issued (FMB creates reversal voucher, Close Liability

& Vendor Paid credit expenditure or
liability)

New Current Date PV to correct

vendor/payment information

WC = Warrant Cancellation
WCN = Journal Entry Regular PV – Without PO
PO = Purchase Order
PV = Payment Voucher WC – Type 9
201900 = Vouchers Payable
New Current Date PV to correct
vendor/payment information

Warrant Issued
& Vendor Paid

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Business Process – AP-07b

AP-07b Accounts Payable – Warrant Cancellation AFTER Year-end Closing Deadline

From
Re-Issue
EX-01 Warrant No

Payment Load

Yes WC – Type 9

WCN – JE (current date, dr

Same Vendor, 101900, cr 241900) – for a
Amount, Reverting Fund
Yes
Address, &
Location WCN – JE (current date, dr.
241900, cr 4969xx Misc
Payment Load Revenue) – for a Non-
Reverting Fund
No
WC – Type 9

WCN – JE (current date, dr Regular PV – With PO

101900, cr 292900) Is the Vendor Is the
Yes and/or Address/ WC – Type 9
No
New Current Date PV (dr Amount Location
292900) different Different (FMB creates reversal
voucher, cr 241900) – for a
Reverting Fund
Payment Load
Yes
Regular PV With or WCN – JE (current date, dr.
WC – Type 9
Without PO 241900, cr 4969xx Misc
Revenue) – for a Non-
WCN – JE (current date, dr Payment Load
WC – Type 1 Reverting Fund
101900, cr 241900) – for a
Reverting Fund WC – Type 9
Regular PV – Without PO
WCN – JE (current date, dr. WCN – JE (current date, dr
Warrant Issued 241900, cr 4969xx Misc 101900, cr 292900) WC – Type 9
& Vendor Paid Revenue) – for a Non-
Reverting Fund New Current Date PV (dr WCN – JE (current date, dr
292900) expenditure (Prior FY Bud
Request to Pay Prior Year Ref & Class), cr 241900) –
Bill for a Reverting Fund
WC = Warrant Cancellation New Current Date PV (dr Regular PV – With PO WCN – JE (current date, dr.
WCN = Journal Entry 547999) 241900, cr 4969xx Misc
PO = Purchase Order WC – Type 9 Revenue) – for a Non-
PV = Payment Voucher
Regular PV – With PO Reverting Fund
292900 = Other Liability (FMB creates reversal
241900 = Stale Dated Warrants - Due to SGF voucher, 292900)
547999 = Request to Pay Prior Year Bills WC – Type 9

(FMB creates reversal New Current Date PV (dr

Close Liability
voucher, cr 241900) – for a 292900)
Reverting Fund

WCN – JE (current date, dr. Regular PV – Without PO

241900, cr 4969xx Misc
Revenue) – for a Non- WC – Type 9
Reverting Fund
WCN – JE (current date, dr
Request to Pay Prior Year expenditure (FY16 Bud Ref
Bill & Class), cr 292900)
New Current Date PV (dr New Current Date PV (dr
547999) 292900)

Regular PV – Without PO

WC – Type 9
Warrant Issued
WCN – JE (current date, dr & Vendor Paid
expenditure (Prior FY Bud Ref
& Class), cr 241900) – for a
Reverting Fund
Warrant Issued
WCN – JE (current date, dr. & Vendor Paid
241900, cr 4969xx Misc
Revenue) – for a Non-
Reverting Fund

Request to Pay Prior Year Bill

New Current Date PV (dr

547999)

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AP-07c Accounts Payable – Stop Payment on Warrant Cancellation

Third-Party Warrant Issuing
Agency / Financial Control State Treasurer
Division (FCD) Office (STO)

1
End
Identify warrant requiring 3c
cancellation i.e. issued in error, Submit forgery packet to Fiscal
destroyed, lost, never received, Agent Fraud Unit and request
stolen or forged. reimbursement.
Warrant redeemed by
payee (endorsement)
2 M – AP07c / 2
Determine warrant status using
on-line banking or request status
3d
info from STO No Notify agency/FCD of
reimbursement credit.

3 3a
Was warrant Yes Warrant stolen and
redeemed? forged? 5
Review stop payment
information and validate
No affidavit.
3b
Submit forgery letter and affidavit
4 to STO indicating warrant was
Is this an forged and redeemed.
Emergency
6
Place stop payment
at Fiscal Agent per
No 4a
agency instruction.
Yes Submit stop payment request to
4b the STO with affidavit indicating
reason for stop payment i.e. M – AP07c / 3
Cancel warrant in
SHARE to restore issued in error, lost, never
cash using the received, stolen or destroyed.
Cancel option.
M – AP07c / 1 7
Provide stop payment
confirmation to agency/FCD.
9 8
Warrant cancelled is Receive Stop Payment
picked up in the daily confirmation from STO
Paycycle for the
applicable warrant
series and sent to eh
fiscal agent bank
through the positive
pay file.

10
Restore cash on
SHARE via Journal
11 Entry
Reissue
warrant?

M – AP07c / 4
Yes
No
12
Warrant re-issue
End process

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AP-07c Accounts Payable – Stop Payment on Warrant Cancellation (Control Points)

M – AP07c / 1 Stop payment on a Warrant cancellation is requested by issuing agency and processed by STO.

M – AP07c / 2 STO initiates report to fiscal agent bank on fraudulently redeemed warrants.

M – AP07c / 3 STO initiates stop payment for lost, stolen, destroyed or erroneously issued warrants that have not been redeemed.

M – AP07c / 4 Issuing agency/STO require affidavit from payee prior to re-issuing warrant.

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FIN 6

FIN 6 – Asset Management

Policies and Procedures

Business Processes

Beginning of Document

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FIN 6 – Asset Management
Policies & Procedures FIN 6.1

FIN 6.1 Acquiring Capital Assets

A. MAP Standard

State owned property, plant, and equipment should be acquired in accordance with State laws and
rules.

B. Purpose

This policy establishes the requirement that state agencies should be aware of and follow the
procedures required by state rules, State Procurement Code, and Generally Accepted Accounting
Principles as they apply to acquiring and recording capital assets.

C. Authority

NMSA 1978, §6-5-2

Rule 2.20.1 NMAC

D. Policy

1. State agencies shall acquire capital assets in accordance with:

a. State Statutes, including the State Procurement Code.

b. State Rules promulgated by the General Services Department, Rule 2.20.1 – Accounting and
Control of Fixed Assets of State Government, Accounting for Acquisitions and Establishing
Controls.

c. Federal Rules and Regulations, if acquired with federal funding .

2. A State owned capital asset is defined as:

a. Real property, buildings, movable chattel (goods or property), or equipment which has a
value greater than $5,000;

i. Certain agencies or funds may capitalize assets with values of $5,000 or less.

ii. All capital projects must be capitalized. If it is not eligible as a capital expenditure, then
that source funding should not be used.

b. Expected to be used or held beyond the fiscal year in which it was acquired; not consumed in
or by its use; and

c. Acquired by purchase, transfer, trade, donation, lease-purchase agreement, or construction.

3. State agencies should assign each capital asset to a specific location and assign responsibility for
each capital asset to a custodian for that agency.

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4. State agencies shall mark or tag each capital asset at the time it is acquired with a unique number
that identifies the agency and the specific asset.

E. Applicability

These policies apply to all state agencies.

F. Procedures

State Agency

1. Asset acquired through Purchasing, Project Costing, or another state agency through Asset
Transfer.

2. Asset item inspected and put into service. Asset item is tagged.

3. Asset entered into Asset Management.

4. If asset is non-capitalized, update Asset Management.

5. If asset is capitalized and either depreciable or nondepreciable, update Asset Management and
generate GL journal for asset addition. The GL is updated.

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FIN 6.2 Asset Depreciation

A. Statement

Depreciation of assets should be recorded in compliance with generally accepted accounting

practices.

B. Procedures

State Agency

1. The manager submits Useful Life, In Service Date, and Depreciation convention to State agency
CFO for approval in order to prevent inappropriate depreciation expenses.

2. State agency CFO approves and state agency enters into Asset Management.

3. Depreciation is calculated by SHARE.

4. Generate GL journal for Depreciation Expense. The GL is updated.

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FIN 6.3 Asset Transfer

A. Statement

To record transfer of assets both within state agency and between state agencies.

B. Procedures

State Agency

1. Asset is physically transferred.

2. If the asset is transferred within the same state agency, enter the Custodian/Location/Organization
change into Asset Management.

3. If asset is transferred within the same state agency but to a different bureau, update Asset
Management.

4. If asset is transferred within the same state agency, to a different bureau, and is capitalized,
generate GL journal via month end process for asset transfer or adjustment. The GL is updated.

5. If asset is transferred to a different state agency, notify State Auditor with form evidencing state
agency management signature.

6. Transferring state agency begins Asset Disposal process and receiving state agency begins Asset
Addition process.

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FIN 6.4 Recording and Reporting Capital Assets

A. MAP Standard

State agencies shall record and report state owned capital assets in accordance with state law, state
rule, and Generally Accepted Accounting Principles.

B. Purpose

This policy establishes the requirement that state agencies record and report state owned capital assets
in accordance with state law, state rule, and Generally Accepted Accounting Principles.

C. Authority

NMSA 1978, §6-5-2, §13-6-1

Rule 2.20.1 NMAC

D. Policy

1. In the accounting records, state agencies shall record additions to capital assets at the time
acquired, and betterments of existing capital assets at the time the betterment is completed.

2. State agencies should establish procedures and accounting processes to record additions,
dispositions, transfers, and deletions of capital assets. Statutorily guidance for establishing these
procedures and processes can be obtained in NMSA 1978 §12-6-10, §13-6-1, and §13-6-2 and
also in Rule 2.2.2.10 NMAC.

3. All capital assets of the state, including infrastructure, must be recorded in the accounting records
and SHARE. Examples of infrastructure are roads, bridges, tunnels, drainage systems, water and
sewer systems, dams, and lighting systems.

4. All capital assets of the state, other than those reported in proprietary funds or permanent or
fiduciary funds shall be reported in the Government Wide Financial Statement (GWFS). These
capital assets are to be recorded in SHARE in the FULLACCRUE Ledger.

5. Assets belonging to proprietary funds, permanent, and fiduciary funds shall be reported in the
balance sheet of those funds. These capital assets are to be recorded in SHARE in the ACTUALS
Ledger except for agencies that use the Asset Management (AM) Module in SHARE. Agencies
that use AM will have the capital assets in the FULLACCRUE Ledger.

6. Capital assets shall be recorded at the time of acquisition at cost (including ancillary costs) as
determined by the amount paid for purchased assets or at cost of construction for constructed
assets, or at estimated fair market value for donated capital assets.

7. Capital assets should be reported using the following asset classes:

a. Land

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b. Land Improvements

c. Buildings and Structures

d. Furniture and Fixtures

e. Information Technology Equipment

f. Equipment and Machinery

g. Farm Equipment

h. Livestock and Poultry

i. Library and Museum Acquisitions

j. Motor Vehicles and Aircraft

8. State agencies that maintain capital assets in proprietary, permanent, or fiduciary funds must
record and report capital assets on the balance sheet of their year-end Financial Statements.
These capital assets are to be recorded in SHARE in the ACTUALS Ledger except for agencies
that use the Asset Management Module in SHARE. Agencies that use AM will have the capital
assets in the FULLACCRUE Ledger.

9. State agencies that maintain general capital assets (not in proprietary, permanent, or fiduciary
funds), must record and report these capital assets in the Government-Wide Financial Statements
(GWFS) of their year-end Financial Statements, including a disclosure of additions and deletions
in the notes to the Financial Statements. A reconciliation of affected fund balances of GWFS to
the Fund Financial Statement must also be included in the Financial Statements. These capital
assets are to be recorded in SHARE in the FULLACCRUE Ledger.

10. State agencies that construct capital assets should make a determination of the cost of
construction work in progress at year-end. The amount determined should be recorded as
“Construction in Progress” in the state agencies’ year-end Financial Statements, in either a
proprietary or permanent or a fiduciary funds or in the GWFS, whichever is appropriate. When
construction is completed, the amount recorded in “Construction in Progress” should be reduced
and the appropriate capital asset classification increased.

E. Applicability

This policy applies to all state agencies.

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FIN 6.5 Disposing of Capital Assets

A. MAP Standard

State assets should be disposed of in a manner consistent with state (and federal, if applicable) laws,
rules, and regulations.

B. Purpose

This policy establishes the requirement that state agencies should be aware of and follow the state
statutes and rules governing the disposal of capital assets.

C. Authority

NMSA 1978, §6-5-2, §13-6-1, §13-6-2, §13-6-2.1, §13-6-3, §13-6-4, §13-6-5

Rules 2.20.1.18 and 2.2.2.10.W NMAC

D. Policy

1. State agencies shall dispose of capital assets in accordance with:

a. NMSA 1978, §13-6-1, §13-6-2, §13-6-2.1, §13-6-3, §13-6-4, §13-6-5

b. State Rules promulgated by the General Services Department, currently Rule 2.20.1 NMAC -
Accounting and Control of Fixed Assets of State Government, Accounting for Acquisitions,
and Establishing Controls.

2. State agencies are subject to the following when disposing of assets with a value less than five
thousand dollars ($5,000):

a. The property to be disposed of must have a current resale value of five thousand dollars
($5,000) or less and be worn-out, unusable, or obsolete to the extent that the item is no longer
economical or safe for continued use by the entity,

b. As a prerequisite to the disposition of any items of personal property, state agencies shall
designate a committee of at least three officials of the governing authority to approve and
oversee the disposition. They must give notification at least thirty days prior to its action of
making the deletion by sending a copy of its official finding and the proposed disposition of
the property to the State Auditor.

c. A state agency shall give the Surplus Property Bureau of the Transportation Services
Division of the General Services Department the right of first refusal when disposing of
obsolete, worn-out, or unusable tangible personal property of the state agency.

d. The personal property shall be disposed of by negotiated sale to any governmental unit of an
Indian nation, tribe or pueblo in New Mexico or by donation to other state agencies, local
public bodies, school districts, state educational institutions or municipalities, or through the

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central purchasing office of the governing authority by means of competitive sealed bids or
through public auction or through the Surplus Property Bureau of the Transportation Services
Division of the General Services Department or by other means allowed by NMSA 1978,
§13-6-1.

3. State agencies are subject to the following when disposing of assets with a value greater than five
thousand dollars ($5,000), except as provided in paragraphs 4 and 5 below:

a. The sale, trade, or lease of real property or tangible personal property must be done in
accordance with NMSA 1978, §13-6-2,

b. As a prerequisite to the disposition of any items of personal property, state agencies shall
designate a committee of at least three officials of the governing authority to approve and
oversee the disposition. They must give notification at least thirty days prior to its action of
making the deletion by sending a copy of its official finding and the proposed disposition of
the property to the State Auditor.

c. The sale must have prior approval by the DFA/State Budget Division, except when the
property is used as a trade-in or exchange pursuant to provisions of the Procurement Code
and/or when exempted by State Statute; and

d. The DFA/State Budget Division may condition the approval of the sale or other disposition
upon the property being offered for sale to a state agency, local public body, school district,
or state educational institution.

e. Prior to a state agency selling the property, they shall give the Surplus Property Bureau of the
Transportation Services Division of the General Services Department the right of first refusal
of tangible personal property of the state agency.

f. The state agency may sell the property by negotiated sale or donation to other state agencies,
local public bodies, school districts or state educational institutions; through the Central
Purchasing Office of the state agency, local public body, school district or state educational
institution by means of competitive sealed bid, public auction or negotiated sale to a private
person or to an Indian nation, tribe or pueblo in New Mexico; or if a state agency, through the
Surplus Property Bureau of the Transportation Services Division of the General Services
Department.

4. State agencies are subject to the following when leasing real property for a period greater than
five years but less than twenty-five years, or when selling or trading real property, when the sale,
trade or lease is for a consideration greater than twenty-five thousand dollars ($25,000) but less
than one-hundred thousand dollars ($100,000):

a. The sale, trade or lease of real property must be done in accordance with NMSA 1978, §13-
6-2.1 and State Rules promulgated by the State Board of Finance, currently Rule 1.5.23
NMAC – Real Property Acquisitions, Sales, Trades or Leases; and

b. The sale, trade or lease of real property must have prior approval by the State Board of
Finance, except when the transaction is made by those state educational institutions identified

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in Article 12, Section 11 of the Constitution of New Mexico, the State Land Office, or the
State Transportation Commission.

5. State agencies are subject to the following when leasing real property for a period greater than
twenty-five years or when selling or trading real property when the sale, trade or lease is for a
consideration of one-hundred thousand dollars ($100,000) or more:

a. The sale, trade or lease of real property must be done in accordance with NMSA 1978, §13-
6-3.

b. The sale, trade or lease of real property must have prior approval by the State Legislature,
except when the transaction is made by those state educational institutions identified in
Article 2, Section 11 of the Constitution of New Mexico, the State Land Office, or the
Highway Commission.

6. State agencies shall record in the accounting records the sale, disposition, or impairment write-
down of capital assets when the related event occurs.

7. State agencies that maintain capital assets in proprietary, permanent, or fiduciary funds must
record the disposition and reduce the amount of capital assets on the balance sheet of their year-
end financial statements.

8. State agencies that maintain general capital assets (not in proprietary, permanent, or fiduciary
funds), must record the disposition, and reduce the amount of capital assets in the GWFS of their
year-end financial statements.

9. The sale of public property acquired by a museum through abandonment procedures is done
pursuant to the Abandoned Cultural Properties Act, NMSA 1978, §18-10-1 to §18–10-5.

10. Sale or disposition of motor vehicles requires the approval of the State Centralized Fleet
Authority of the General Services Department.

E. Applicability

This policy applies to all state agencies, except those specifically exempted by State Statute.

F. Procedures

State Agency

1. If asset is missing, notify State Auditor with form evidencing state agency management signature.

2. If asset is stolen, notify State Auditor with form evidencing state agency management signature.
Also, notify Police.

3. If asset is obsolete or to be sold notify Surplus Property Department. If asset will no longer be
kept on site, notify State Auditor with form evidencing the approval of the committee described

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in NMSA 1978, §13-6-1(B) as required by Rule 2.2.2.10.u NMAC. If asset is to be sold, begin
Cash Receipts Process. Dispose of asset.

4. Update asset management.

5. If asset was capitalized, generate GL journal for asset disposal. Ensure the journal is processed
correctly and that the capital asset balances in SHARE are correct.

Note: State agencies need to notify the State Board of Finance of change in use of any facility funded
with bond proceeds.

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FIN 6.6 Annual Physical Inventory of Capital Assets

A. MAP Standard

Capital assets should be physically inventoried and verified at least annually.

B. Purpose

This policy establishes the requirement that state agencies perform a physical count of all capital
assets to assure that capital assets are adequately safeguarded and accurately reported.

C. Authority

NMSA 1978, §6-5-2 and §12-6-10

D. Policy

1. State agencies shall perform a physical inventory of capital assets at the end of each fiscal year in
compliance with the annual inventory statutory requirement for property and equipment. They
must:

a. Verify the accuracy of the data on the capital asset inventory list maintained by each state
agency,

b. Physically verify the existence and location of all movable property and equipment costing
more than five thousand dollars ($5,000) and verify that the asset is in good working
condition and not obsolete,

c. Correct the inventory list based upon the physical inventory; and

d. Provide certification from the person to whom the inventory is assigned and the governing
authority of each state agency that the inventory list is correct.

2. State agencies shall perform a physical inventory of capital assets at the end of each fiscal year
and must reconcile the physical inventory results with the Capital Asset inventory list. Any
adjustments that result from the physical inventory should be recorded in the state agency
accounting records. These adjustments should be made immediately after the count is taken.

3. When any capital asset is found to be missing and cannot be accounted for, the state agencies
shall determine the cause(s) and augment internal controls, as necessary, to minimize any future
occurrences.

4. Any capital assets determined to be missing should be documented in writing for reporting to the
Office of the State Auditor and a Police/insurance report should be obtained, if stolen. A copy of
the letter must also be send to the State Comptroller.

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E. Applicability

This policy applies to all state agencies.

F. Procedures

State Agency

1. Inventory report produced from Asset Management.

2. Physical assets compared to report.

3. Complete state agency certification for all assets on site.

4. Begin asset disposal process for all missing assets.

5. Make necessary adjustments to Capital Asset records for any unrecorded assets or deletions.

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FIN 6.7 Safeguarding Capital Assets

A. MAP Standard

To safeguard capital assets, state agencies must establish formal internal control structures.

B. Purpose

This policy establishes the requirement that state agencies have written policies and procedures to
ensure that capital assets are adequately controlled and safeguarded.

C. Authority

NMSA 1978, §6-5-2

Rule 2.20.1.18 NMAC

D. Policy

1. State agencies that own capital assets should develop written internal controls to safeguard those
assets against pilferage, fraud, fire, vandalism, theft, and other irregularities.

2. State agencies shall mark or tag each capital asset (property and equipment) with a unique
number that identifies the state agency and the specific asset.

3. State agencies shall maintain a record of all capital assets they own. This record keeping is
required for legal compliance and does not necessarily meet the requirements of Generally
Accepted Accounting Principles. The record shall contain at a minimum:

a. State agency name.

b. Capital asset number and description.

c. Tag number, if different from Capital Asset number.

d. Manufacturer, model number and serial number.

e. Date acquired.

f. Cost (actual, including book value of any trade in, etc.).

g. Payment Voucher, Warrant number and expenditure account used to acquire the asset. If
using Asset Management (AM) module in SHARE, should be able to drill into Voucher or
Warrant information using AM.

h. Location of the asset and custodian to whom asset is assigned.

i. Source of Funding when applicable, Agency match vs. non-match

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4. State agencies should perform periodic reviews to verify the compliance with and adequacy of the
written policies and procedures.

5. State Agencies should maintain records and record transfers and changes of locations and
custodians on an ongoing basis.

E. Applicability

This policy applies to all state agencies.

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Business Process AM-01

AM-01 Asset Addition

Agency

Asset ordered
through Purchasing
& received

From
Asset item inspected AM-03,
& put into service AM-05

Asset item tagged

Process
A: Authorize
A – AM01 / 1 B: Record
D: Verify I
E: Verify S
A – AM01 / 2 Asset entered into F: Reconcile
Asset Management
M – AM01 / 3

Is asset Depreciable,
Non-Depreciable, or
Non-Capitalized?

To
AM-02 Asset Depreciation Note: Certain non-capitalized
Depreciable Non-capitalized assets need to be tracked for t ag
Process
number and licensing
requirements

Asset Management
Asset Management updated
Non-Depreciable
updated

GL journal
generated for asset To General
addition on daily or Ledger
monthly basis

To
AM-05

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Business Process AM-01

AM-01 Asset Addition (Control Points)

A – AM01 / 1 Restricted system access to enter data into Asset Management Module in order to prevent inaccurate asset data.

All asset management data entries must be reviewed and approved by supervisor before posting occurs in order to
A – AM01 / 2
prevent inaccurate asset data.

A monthly reconciliation is performed between the asset management, GL, and sub ledgers to detect inaccurate asset
M – AM01 / 3
data.

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Business Process AM-02

AM-02 Asset Depreciation

Agency

From
AM-01

Asset Addition
Process

Useful life, In service

date and depreciation
convention determined
by DFA

Process
M – AM02 / 1 A: Authorize
B: Record
D: Verify I Daily
A – AM02 / 2 Asset Management E: Verify S

updated

Depreciation
A – AM02 / 4 Daily or Monthly
calculated

Process A – AM02 / 3 GL journal

Monthly
B: Record generated for
E: Verify S depreciation expense

To General Monthly
Ledger

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Business Process AM-02

AM-02 Asset Depreciation (Control Points)

Depreciation useful life, in service date, and conventions are approved by Agency CFO for approval in order to prevent
M – AM02 / 1
inappropriate depreciation expenses.

A – AM02 / 2 Restricted system access to enter data into Asset Management Module in order to prevent inaccurate asset data.

All asset management data entries must be reviewed and approved by supervisor before posting occurs in order to
A – AM02 / 3
prevent inaccurate asset data.

Depreciation expenses automatically calculated by SHARE and posted in order to prevent incorrect expenses being
A – AM02 / 4
posted.

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FIN 6 – Asset Management
Business Process AM-03

AM-03 Asset Transfer

Disposing Agency

Process
A: Authorize
Physical transfer of D: Verify I
asset

Who receives the Notify State Auditor Process

Same bureau in the agency Different agency
asset? D: Verify I

M – AM03 / 1
Different bureau in the agency
Process
A: Authorize
Custodian/ Location/ B: Record
Organization change Custodian/ Location/ D: Verify I Asset Disposal
entered into Asset E: Verify S
Organization change Process
Management entered into Asset
Management M – AM03 / 2

Process A – AM03 / 3
A: Authorize
M – AM03 / 2
B: Record
D: Verify I
E: Verify S A – AM03 / 3
To
AM-04
Is asset
capitalized?

Process Capitalized Non-capitalized Process Receiving Agency

A: Authorize A: Authorize
B: Record B: Record
D: Verify I D: Verify I
E: Verify S E: Verify S

M – AM03 / 2 Asset Management Asset Management Asset Addition

updated updated Process
A – AM03 / 3

M – AM03 / 2
Process
B: Record A – AM03 / 3
E: Verify S To
GL journal AM-01
generated for asset
A – AM03 / 4
transfer

To
To General
AM-05
Ledger

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Business Process AM-03

AM-03 Asset Transfer (Control Points)

State Auditor is notified 30 days prior to disposition action, according to state policy in order to prevent incorrect or
M – AM03 / 1
unauthorized asset transfer.

All asset management data entries must be reviewed and approved by supervisor before posting occurs in order to
M – AM03 / 2
prevent inaccurate asset data.

A – AM03 / 3 Restricted system access to enter data into Asset Management Module in order to prevent inaccurate asset data.

A – AM03 / 4 System automatically transfers asset depreciation to new bureau when an asset is transferred within an agency in order to
prevent inaccurate financial data.

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FIN 6 – Asset Management
Business Process AM-04

AM-04 Asset Disposal

Agency

Start

Process
A: Authorize
D: Verify I

From M – AM04 / 1
Is asset obsolete,
AM-05
missing, or stolen?
M – AM04 / 2

Obsolete/to be sold/transferred Stolen

If over $5,000,
obtain DFA SBD
approval Missing

Notify Surplus
Notify State Auditor Notify State Auditor Notify Police
Property Department

Is the asset kept on site Process

Dispose
or disposed of? Was Asset A: Authorize
B: Record
Capitalized? D: Verify I
E: Verify S
Notify State Auditor
A – AM04 / 3
Yes No
Keep
M – AM04 / 4
Process
A: Authorize
B: Record
Asset Management D: Verify I
E: Verify S
From updated Asset Management
AM-03 Was asset sold? Yes
A – AM04 / 3 updated

M – AM04 / 4
Cash Receipts
Process
Process
No B: Record
E: Verify S
GL journal
generated for asset
Asset Disposal in disposal
Asset Management
M – AM04 / 4

Process A – AM04 / 3 To
To General
A: Authorize AM-05
Ledger
B: Record
D: Verify I
E: Verify S

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FIN 6 – Asset Management
Business Process AM-04

AM-04 Asset Disposal (Control Points)

Committee approval process required by Chapter 13-6-1(B), NMSA 1978, required for asset disposal process in order to
M – AM04 / 1
prevent incorrect or unauthorized asset disposal.

State Auditor is notified 30 days prior to disposition action, according to state policy in order to prevent incorrect or
M – AM04 / 2
unauthorized asset disposal.

A – AM04 / 3 Restricted system access to enter data into Asset Management Module in order to prevent inaccurate asset data.

M – AM04 / 4 All asset management data entries must be reviewed and approved by supervisor before posting occurs in order to
prevent inaccurate asset data.

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FIN 6 – Asset Management
Business Process AM-05

AM-05 Asset Physical Inventory

Agency

From From From

AM-01 AM-03 AM-04

Inventory report
produced from Asset
Management

Process
D: Verify I
Annual physical E: Verify S
F: Reconcile
inventory is
performed for book
to floor and floor to M – AM05 / 1
book

Is asset missing?

Yes No

Is asset not on Agency Certification

No End
books?
Asset Disposal
process

Yes

To
To
AM-01
AM-04

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FIN 6 – Asset Management
Business Process AM-05

AM-05 Asset Physical Inventory (Control Points)

Inventory of Capital Assets is performed annually, reviewed by supervisor, and approved by Agency CFO in order to
detect inaccurate asset data. Inventory is performed for both Book to floor and floor to Book. The annual inventory
M – AM05 / 1
process is a back end control that would identify and address errors in the asset addition, asset transfer and asset disposal
processes.

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FIN 7 – Deal Management – Investment Management
FIN 7

FIN 7 – Deal Management

Policies and Procedures

Business Processes

Beginning of Document

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FIN 7 – Deal Management – Investment Management
Policies & Procedures FIN 7.1

FIN 7.1 Authorizing Investments

A. MAP Standard

To ensure legal compliance, investments of State funds must be authorized by statute.

B. Purpose

This policy establishes that the State Treasurer, with advice and consent of the State Board of
Finance, is authorized by State law to invest State funds.

C. Authority

NMSA 1978, §6-10-10

D. Policy

1. State monies shall be invested only as authorized by State law.

2. Only the State Treasurer’s Office (STO) as authorized by State law is permitted to invest State
monies.

3. STO shall record investment transactions when they occur.

4. At least once a month, STO must prepare and then send to FCD the Journal Entries needed to
record investment activity in SHARE.

E. Applicability

This policy applies to STO.

F. Procedures

STO

1. Performs cash forecast to verify cash availability

2. Based on the cash availability the STO can:

a. Select investment for purchase.

b. Select investment for liquidation.

3. Purchase investment/Liquidate Investment

4. Prepare the entry on G/L (SHARE) and submit to FCD.

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Policies & Procedures FIN 7.1

Financial Control Division (FCD)

5. Processes the Journal Entry received from STO and return a posted copy to STO.

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Policies & Procedures FIN 7.2

FIN 7.2 Accounting for Investments

A. Statement

This procedure addresses the methods to be used to account for investments.

B. Procedures

STO

1. Process a wire transfer going from the fiscal agent bank to the custody bank to purchase an
investment. Attach supporting documentation to the overnight worksheet, including trade ticket.

2. Process a Cash Receipt to record the sale of an investment.

3. Prepare a monthly Journal Entry and send it to FCD to record the investment balances in
SHARE, and attach the required supporting documentation to the Journal Entry.

4. Contact FCD if there are any questions concerning how to record the purchase or sale of an
investment.

5. Prepare the entry on G/L (SHARE) and submit to FCD.

PERA/ERB/SIC
Prepare a monthly Journal Entry to record in SHARE investment activity for the month, send it to
FCD to record the transactions in SHARE, and attach the required supporting documentation to
the Journal Entry.

Financial Control Division (FCD)

6. Process the Journal Entry received from STO/PERA/ERB/SIC and return a posted copy.

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FIN 7 – Deal Management – Investment Management
Policies & Procedures FIN 7.3

FIN 7.3 Authorization of Long-Term Debt

A. MAP Standard

Properly managing long-term debt requires that an agency must have legal authority to obligate the
State prior to entering into a commitment.

B. Purpose

This policy establishes the requirement that all long-term debt must be legally authorized before the
debt is incurred.

C. Authority

NMSA 1978, §6-5-2

Article IV of New Mexico Constitution.

D. Policy

1. STO, with the State Board of Finance (SBOF) approval, and the SBOF have the authority to
obligate the State for the purpose to be financed and that they are authorized to use the manner of
financing being considered.

E. Applicability

This policy applies to STO and SBOF.

F. Procedures

Legislature

1. Obtain debt capacity and authorized but unissued project amount from Board of Finance division.

2. Appropriate capital to be funded with Severance Tax Bonds or General Obligation Bonds (in
even numbered years) and authorize SBOF to issue those bonds.

3. General Obligation Bonds: If yes, follow the procedures outlined for electorate. If No, then skip
to Step 8, Board of Finance Section.

Electorate (For the General Obligation Bond requests)

4. Electorate votes to approve or disapprove the General Obligation Bond request. If the General
Obligation Bond request is approved, go to step 5. If the General Obligation request is denied,
the process ceases. It will be necessary to obtain more information/documentation (in accordance
with the law period) to support the approval.

5. Determine type/term of debt.

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Policies & Procedures FIN 7.3

6. Initiate debt instruments.

STO, BOF Division, and Agency (as appropriate)

7. Determine accounting needs for new bond issuances.

a. STO – Creates a Debt Service Fund in SHARE.

b. BOF Division – Creates a Bond Proceeds Fund in SHARE.

Issues Severance Tax Bonds or General Obligation Bonds (in even numbered years).
On day of closing, deposits proceeds in the bond proceeds fund.

c. Agency – Receive the Proceeds to create a fund into SHARE.

8. All the related entities have to prepare the SHARE Chartfield Maintenance Fund Form.

9. Send the SHARE Chartfield Maintenance Fund form to FCD.

10. Prepare the entry on G/L (SHARE) and submit to FCD.

If debt is to be paid down:

11. Determine amount to pay down.

12. Initiate payment voucher.

FCD

13. Approve the funds creation into SHARE.

14. Process the Journal Entry received from STO and return a posted copy to STO.

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FIN 7 – Deal Management – Investment Management
Policies & Procedures FIN 7.4

FIN 7.4 Debt Service Fund

A. MAP Standard

To properly manage long-term debt, resources for debt service must be recognized and recorded.

B. Purpose

This policy establishes the requirement that the resources to service long-term debt be recognized and
recorded so as to demonstrate compliance with: 1) any conditions, contingencies, or limitations
imposed by legislation, rules, or regulations; 2) the terms, covenants, conditions, and other
requirements of the related debt instrument; 3) the budgetary basis of accounting used by the State;
and 4) generally accepted accounting principles.

C. Authority

NMSA 1978, §6-5-2

Generally Accepted Accounting Principles

D. Policy

1. Generally accepted accounting principles permit debt service funds be used if: (a) the use of a
debt service fund is legally required, or (b) financial resources are being accumulated for
principal and interest payments maturing in future years.

2. For accounting purposes, FCD requires that agencies use a separate debt service fund for each
debt issue. Debt service funds should be used to accumulate resources for the payment of general
long-term debt, and to record and report the service the debt.

3. For the “General Purpose Financial Statements”, a separate debt service fund is not required for
each debt issue.

4. Long-term debt related to proprietary funds and trust funds belongs to the fund itself and is
recorded therein, not in a debt service fund.

5. Claims, judgments, leases of equipment, etc. are normally paid from the operating resources of an
entity and not from a debt service fund.

6. The number of debt service funds used by the State should be kept to the minimum required by
legal and sound financial administration. Agencies should contact FCD personnel if a question
arises as to the necessity of creating a debt service fund.

7. Agencies must have internal controls to ensure debt service funds are used only for their intended
purpose. Any questions regarding the use of debt service funds should be directed to FCD.

8. Agencies that have tax intercepts that are sent directly to pay for bonds, debt, etc. are still
required to record the debt service payment on their financials even though this money did not
“pass through” their agency. Any questions regarding this process should be directed to FCD.

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Policies & Procedures FIN 7.4

E. Applicability

This policy applies to all State agencies.

F. Procedures – Use of Funds

Agency

1. When long-term debt is issued (e.g., Severance Tax Bonds and General Obligation Bonds),
contact FCD to determine whether to establish a debt service fund. If a debt service fund is
needed, agencies processing transactions through SHARE should complete an SHARE Chartfield
Maintenance form requesting that a debt service fund be established.

FCD

2. Review the request. If the request is approved, provide the agency with the fund number.

Agency

3. Ensure that sufficient cash is available in the debt service fund prior to processing payments or
transfers against the fund.

4. Make payments from the debt service fund on the date required in the repayment provisions of
the debt issuance.

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FIN 7 – Deal Management – Investment Management
Policies & Procedures FIN 7.5

FIN 7.5 Timely Servicing of Long-Term Debt

A. MAP Standard

The proper management of long-term debt includes the timely servicing of debt; satisfying all
conditions, contingencies, and limitations imposed by legislation, rules, and regulations; meeting the
terms, covenants, conditions, and other requirements of the debt.

B. Purpose

This policy establishes the requirement that agencies service long-term debt timely and accurately.

C. Authority

NMSA 1978, §6-5-2

D. Policy

1. Agencies that manage debt are responsible for ensuring that all debt service transfers and
payments are made on a timely basis and in accordance with the terms of the debt issuance.

2. FCD will honor special processing requests to expedite the processing of Payment Vouchers and
Warrants.

E. Applicability

This policy applies to all state agencies, including FCD personnel responsible for processing payment
vouchers.

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FIN 7 – Deal Management – Investment Management
Business Process DM-01

DM-01 Deal Management – Investment Management

Financial Control Division (FCD) State Treasurer Office (STO)

Performs Cash
Forecast

Performs cash
forecast to verify
Cash availability

Is Cash available?
Yes
No

Select investment for Process Select investment for Process

D: Verify I D: Verify I
purchase liquidation

M – DM01 / 1 M – DM01 / 1

Process Process
Purchase investment A: Authorize Liquidate investment A: Authorize
E: Verify S E: Verify S

M – DM01 / 2 M – DM01 / 2

Performs the entry Prepare Journal

on G/L (SHARE). Entry Process
Journal generated for B: Record
investment

A – DM01 / 3
M – DM01 / 4

Process
B: Record
To General
Ledger

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FIN 7 – Deal Management – Investment Management
Business Process DM-01

DM-01 Deal Management – Investment Management (Control Points)

Authorized STO personnel must verify and validate the cash availability, in order to select investment for purchase/
M – DM01 / 1
liquidation.

All the investment purchase/liquidation must be verified / analyzed by a person other than the requester. The reviewer
M – DM01 / 2
validates investment for purchase/liquidation.

A – DM01 / 3 SHARE requires that only an authorized user other than the requestor, verifies and performs the Investment entry on G/L.

STO personnel attach supporting documentation to the Payment Voucher, including reference to the State law that allows
M – DM01 / 4
the investment to be made.

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FIN 7 – Deal Management – Investment Management
Business Process DM-02

DM-02 Deal Management – Long Term Debt

Financial Control
Division (FCD) Electorate Legislature

Performs debt
forecast

Performs debt
forecast to verify
debt necessity

Debt Required?
Yes No

From
DM-02.1

Electorate vote to
Yes General Obligation? A Redeem Debt
approve debt request

Account M – DM02 / 5
Process No
Maintenance Form A: Authorize
D: Verify 2

Revenue Debt
Determine amount to
pay down
Approve the Fund(s) Process
creation into A: Authorize
SHARE D: Verify 2

M – DM02 / 1
Debt approved? Yes Issue Debt
M – DM02 / 4
Process
D: Verify I
Performs the entry No
on G/L (SHARE).
Journal generated for
debts A Determine type/term Process
Process of debt D: Verify I
B: Record
Initiate payment
voucher
A – DM02 / 3 M – DM02 / 1

To M – DM02 / 2
To General Initiate debt
Ledger DM-02.1
instruments

Process Process
A: Authorize A: Authorize
D: Verify 2 D: Verify 2

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FIN 7 – Deal Management – Investment Management
Business Process DM-02.1

DM-02.1 Deal Management – Long Term Debt

State Treasurer Office Board of Finance (BOF) Agency
(STO)
From
DM-02

Creates a Bond Receive the

Creates a Debt Fund
Proceeds Fund into Proceeds to create a
into SHARE
SHARE fund into SHARE

Prepare the Account Prepare the Account Prepare the Account

Maintenance Form Maintenance Form Maintenance Form

Account Account Account

Maintenance Form Maintenance Form Maintenance Form

Send the Account Send the Account Send the Account

Maintenance Form Maintenance Form Maintenance Form
to FCD to FCD to FCD

To
DM-02

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FIN 7 – Deal Management – Investment Management
Business Process DM-02

DM-02 Deal Management – Long Term Debt (Control Points)

M – DM02 / 1 Authorized Legislature personnel have to verify and validate the cash availability, in order to select issue or redeem debts.

All the debt redemption is verified / analyzed by a person independent of the requester. The reviewer validates debt to be
M – DM02 / 2
issued or redeemed.

A – DM02 / 3 SHARE access control requires that an authorized user other than the requestor verifies and performs the debt entry on G/L.

M – DM02 / 4 STO personnel verify the support documentation and authorize the funds creation into SHARE.

M – DM02 / 5 General Obligation debt must be approved by the Electorate. Electorate votes to approves/denies the assumption of debt.

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FIN 8 – Project Costing
FIN 8

FIN 8 – Project Costing

Policies and Procedures

Business Processes

Beginning of Document

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FIN 8 – Project Costing
Policies & Procedures FIN 8.1

FIN 8.1 Project Costing

A. MAP Standard

To ensure the timely and accurate collection of expenditure data related to program specific projects.

B. Purpose

This policy provides agencies the ability to organize financial information for the purposes of
accounting, analysis, monitoring, billing, and reporting on projects.

C. Authority

NMSA 1978, §6-5-2

Rule 2.20.5 NMAC

D. Definition

A project is defined as an activity requiring the grouping and organization of financial transactions in
order to monitor and report on the conditions of that activity. Sub-activities of the project may be
defined in order to develop the detailed work requirements of the project.

E. Policy

1. Project costing will be used to accumulate and summarize project budgets, time and labor details,
encumbrances, expenditures, cost allocations, operating transfers and journal entries. Project
costing is not to be used for accounting for state-sponsored grants to school districts,
municipalities and counties unless the expenditures are related to a major capital acquisition or
construction project, properly accounted for in a capital projects fund.

2. Project costing can be used in conjunction with grants to account for grants or used independently
to account for non-grant capital projects.

3. Based upon the reporting periods as required of the project monitor, agencies shall run project
information reports to create expenditure reports and/or billing information for the appropriate
period. The information shall be reviewed for accuracy and verification of detail information.
Documentation shall be gathered, as required, to support reporting requirements of the project
monitor or third parties to the project.

F. Applicability

This policy applies to all State agencies with the responsibility of tracking and monitoring projects.

G. Procedures

1. State agency creates Project into SHARE and feeds the Project Costing Module.

2. State agency creates Activities into SHARE and feeds the Project Costing Module.

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FIN 8 – Project Costing
Policies & Procedures FIN 8.1

3. State agency creates Budget into SHARE and feeds the Project Costing Module.

4. SHARE System accumulates the cost information obtained from the following modules:

a. Accounts Payable Cost Collection Module

b. Time & Labor Module

c. Purchasing Module

d. Grants Management – F&A Module

e. Contracts – Revenue Recognition Module

5. After SHARE accumulated all the information at the Project Costing Module, the data is sent to
Billing Module and General Ledger Module.

6. SHARE also generates a Project Cost Reports (Transaction Level Summary, Queries, etc.).
These Reports are used for auditing reconciliation or validate transactions.

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FIN 8 – Project Costing
Business Process PC-01

PC-01 Project Costing (Overview)

SHARE System

Create Project into

SHARE
Process
A: Authorize
B: Record
D: Verify I

Create Activities
A – PC01 / 2
into SHARE
M – PC01 / 3

Process
Updates the A: Authorize
Commitment B: Record
Control Module D: Verify I

Create Budget into

SHARE A – PC01 / 2

M – PC01 / 3

Transaction
Adjustment Transaction
Adjustment

From
Accounts Payable Accounts Payable
Negotiated Rate PO-02a Purchasing Module
Allocat ion
Cost Collection Module Module

From Process
A: Authorize
GM-04 B: Record
D: Verify I
E: Verify S Transaction
F: Reconcile Adjustment
Grants Management - F&A Module
Time & Labor
Time & Labor
Contracts - Revenue Recognition Update Project Resource Module
Module Table
(Project Costing)
10

M – PC01/ 1

Contracts

General Ledger Module

Reports used for:

auditing reconciliation Billing Module
or validate
trans actions Cost Allocation
Transaction
Adjustment

Project Cost Reports

(Transaction Level To
Summary, Queries, etc.) BI-01 General Ledger

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FIN 8 – Project Costing
Business Process PC-01

PC-01 Project Costing (Overview) (Control Points)

Monthly the Project Costing is reconciled to each Agency’s General Ledger. The reconciliation is reviewed and approved
M – PC01 / 1
by a separate individual.

A – PC01 / 2 System Access only allows authorized person to create budget and activities into SHARE.

The budget and activities are compared with the support documentation in order to verify if the correct data is entered into
M – PC01 / 3
SHARE database.

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FIN 9 – Grants Management
FIN 9

FIN 9 – Grants Management

Policies and Procedures

Business Processes

Beginning of Document

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FIN 9 – Grants Management
Policies & Procedures FIN 9.1

FIN 9.1 Grants Management Overview

A. MAP Standard

To ensure the complete, accurate, and timely recording of grant proposals and awards including the
expenditure and revenue recognition activity related to the grant awards.

B. Purpose

This policy establishes requirements for recording each phase of the life cycle for grant awards and its
implication to the central reporting system.

C. Authority

NMSA 1978, §6-5-2

Rule 2.20.5 NMAC

D. Policy

1. Project Administration – Requires establishing a project number and necessary activity levels to
be associated with proposals and awards.

2. Proposal Preparation and Submission – Parameters outlining the basic features of the proposal’s
preparation shall be recorded. These shall include the statement of work, proposal budget, and
administrative, personnel and submission information required by funding agencies.

3. Award Negotiation/Funding/Administration – The award generation process shall continue to be

tracked from the point of negotiation through to the final award and its administration. Managing
award funding will require creating the contract, billing, and revenue recognition. Administration
of the award requires managing award funding through budget administration to allow for
complete integration with purchasing, indirect costs processing, and accounts payable in order to
accumulate expenditure information.

4. Financial Reporting and Analysis – Based upon the required reporting periods of the grantor,
state agencies shall run project information reports and create bills to the grantor for the
appropriate period. The billing shall be reviewed for accuracy and verification of detail
information. Documentation shall be gathered, as required by the grantor, to support the billing.
When the preparation of an invoice for billing is required by the Federal grantor, it shall follow
the format specified by the Federal grantor. If the Federal grantor allows for direct funding
drawdowns without the submission of an invoice, the grantee shall maintain all documentation
necessary to support the drawdown request and shall make that documentation available for both
Single audit and grantor audit requirements.

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FIN 9 – Grants Management
Policies & Procedures FIN 9.1

5. If state agencies utilize the SHARE system to bill the Federal grantor agency, they are to
reconcile the detail of the grant award billings recorded in the accounts receivable subsidiary
schedule to the control account for accounts receivable within the general ledger on a monthly
basis. If the billing cycle occurs outside of the SHARE system, state agencies must reconcile
Federal receipts to the Agency’s record of amounts receivable from the Federal agency and
complete general ledger reconciliation monthly to ensure the receipt of anticipated federal funds.

6. Collection of outstanding accounts receivable is the responsibility of the originating state agency.

7. Award Closeout – Upon completion of the grant requirements and receipt of grant award funding,
the project shall be deactivated by the originating state agency.

E. Applicability

This policy applies to all state agencies responsible for submitting grant proposals and/or receiving
grant awards.

F. Procedures – Grants Management (Overview)

State Agency – Based on the use of the SHARE Grant Module:

1. Completes the Grantor Form.

2. Enters the proposal and award in SHARE.

3. Develops the project, project budget, and contract.

4. SHARE then accumulates costs.

5. Prepares invoice/requests for funds for submission to funding agencies.

6. Receives pre-payment or payment for invoice and deposits the funds.

STO

7. Apply payments and/or perform adjustments and/or transfers on A/R balances.

G. Procedures – Customer Set-up and Maintenance

State Agency

1. Enter New/Update Customer data in SHARE.

2. Complete and submit grantor form and/or grant document (New or Existing).

3. Enter new sponsor or update existing customer data in SHARE. Add the following details into
the system:

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a. Enter new sponsor or update existing customer data in SHARE.

b. Billing Set-up, if the billing is to be completed through SHARE. If the billing is handled
outside of SHARE, appropriate billing documents should be updated and/or developed to
adhere to the federal grantor specifications.

c. Assign Billing Address.

d. Identify and record the grantor contact for both programmatic and billing functions.

4. Customer set-up is completed in SHARE.

H. Procedures – Grants Management Project Initiation

State Agency

1. Develops the funding proposal and submits proposal to the appropriate state or federal agency for
approval.

2. Enters proposal data into SHARE.

3. Enters grantor proposal number in SHARE.

4. Generate an “Award Document” (filed by requesting state agency) in SHARE if the grantor
agency does not provide an award document for use by the grantee/state agency.

5. Creates Contract in SHARE, if necessary, to complete the billing process in SHARE.

a. Assign Scheduled Bill Rate Template.

b. Activate Grant Contract in SHARE.

6. Create Award and Project in SHARE

a. Update Award & Project with sub-recipient detail from vendor file.

7. Populate Project Budget in SHARE

a. Post Budget to Project Costing.

b. Create Project/Activity Budget Journal Entry.

I. Procedures – Grants Management – Cost Accumulation & Integration (Overview)

SHARE

1. SHARE accumulates the cost information obtained from the following modules:

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a. Accounts Payable Cost Collection Module.

b. Time & Labor Module.

c. Purchasing Module.

d. Grants Management – F&A Module.

e. Contracts – Revenue Recognition Module.

f. General Ledger Cost Collection – (correcting entries for the general ledger).

2. After SHARE accumulates all the information in the Project Costing Module and is collected in
the Project Resource subsidiary ledger, the data is sent to Billing Module and General Ledger
Module in order to create a bill to the grantor. If bills/invoices are created outside of SHARE,
Project Cost Reports (Transaction Level Summary, Queries, etc.) can be run for auditing
reconciliations, validating transactions, or developing bills/invoices.

J. Procedures – Grants Management – Bill and Draw Creation

State Agency

1. Run queries in SHARE by fund, department, and project to generate the worksheets required to
complete draw requests.

2. State agency enters draw request in Federal Systems (FED System).

3. SHARE automatically runs Journal Generator and Updates G/L.

4. SHARE automatically runs Project & Contracts Interface.

5. SHARE Updates Contracts & Billing Cross-Reference.

K. Procedures – Grants Management – Create Accounts Receivable (Overview)

State Agency

1. Create Accounts Receivable in SHARE or post to federal revenue.

2. Grantor Creates and Submits Payment request.

3. Electronic Deposits are credited to the State of New Mexico’s bank account at the fiscal agent
bank.

a. For Checks received at state agency - State agency prepares a 3-part deposit slip and takes
cash to Bank. The state agency obtains a validated Deposit Slip from Bank, or

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b. For Checks received at state agency - State agency uses desktop deposit scanners. Once
deposit is completed, a scanned copy of the deposit and checks is obtain and confirmation
from the fiscal agent bank is received.

4. Deposits are entered into SHARE.

State Treasurer Office (STO)

5. STO Approves/Validates the deposit (Set to Post).

SHARE

6. SHARE batches direct journal (DJ) for deposit for posting to the GL.

STO

7. Posts Journal in SHARE.

8. Deposit posted and payment applied.

L. Procedures – Grants Management – Accounts Receivable Research (Overview)

State Agency

1. Research Accounts Receivable and federal revenue issues.

2. If any review is necessary, state agency verifies if it is a technical or an accounting problem.

3. Accounting problem is researched by the Financial Control Division Support Unit (FCDSU)

a. FCDSU verifies the source of the Issues.

b. FCDSU completes accounts receivable research and posts the necessary adjustments on G/L.

4. Technical problem is researched by the financial unit of state agency

a. State agency verifies the source of the Issues.

b. State agency complete accounts receivable research and posts the necessary adjustments on
G/L.

M. Procedures - Grants Management – Grant Prepayments (Deferred Revenue)

State Agency

1. Receive and recognize prepayments for a grant.

2. Enter prepaid amount into SHARE (Contracts Module).

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3. Define Billing Plan, Define Utilization, and Activate Plan (Contracts Module).

4. Verify the propriety of the Contracts Module/Billing Module Interface in SHARE.

N. Procedures – Grants Management – Allocations (Overview)

Note: The allocation process is performed only as necessary, and maybe repeated if there is more
than one allocation to be made. State agencies perform this process until all the indirect costs are
allocated.

State Agency

1. Run GL line queries by fund.

2. Segregate expense account codes by cost pool.

3. Apply Basis.

4. Segregate allocated costs by grant.

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FIN 9.2 Grants Management- Funding Criteria and Oversight Requirements

A. MAP Standard

Assure State capital outlay appropriations granted by State agencies to other entities are expended in
accordance with law and that grant funds and assets acquired with grant funds are properly accounted
for and safeguarded.

B. Purpose

This document establishes uniform funding criteria for grantees to receive State capital outlay
appropriations and grant management and oversight requirements.

C. Authority

Executive Order 2013-006- Establishing Uniform Funding Criteria and Grant Management and
Oversight Requirements for Grants of State Capital Outlay Appropriations by State Agencies to Other
Entities.

NMSA 1978, §6-5-2(A), (granting FCD the authority to "devise, formulate, approve, control and set
standards for the accounting methods and procedures of all state agencies" and to "prescribe
procedures, policies and processing documents for use by state agencies in connection with fiscal
matters"); NMSA 1978, §6-5-2.(A) (authorizing FCD to "coordinate all procedures for financial
administration and financial control and integrate them into an adequate and unified system"); and
NMSA 1978, §6-5-2.l(Q) (authorizing FCD to "make improvements in the state's model accounting
practices, systems and procedures").

D. Policy

1. Non-Tribal Government grantees- uniform funding criteria. The following uniform funding
criteria must be met for a non-Tribal Government grantee to be eligible to receive a grant of a
State capital outlay appropriation:

a. for the most recently concluded fiscal year, a grantee must have submitted the report of its
annual audit or agreed upon procedures, as required by NMSA 1978, §12-6-3(A)-(B), if the
due date for the report under Rule 2.2.2 NMAC has passed;

b. if the due date for the annual audit or agreed upon procedures report for the most recently
concluded fiscal year was forty-five (45) or more days before the date on which a grant is
made or a project is certified to the State Board of Finance, the report must be a public
record pursuant to NMSA 1978, §12-6-5(A). For example, in July 2013, the relevant fiscal
year for applying this and the previous criterion to counties is Fiscal Year 2012, since the
Fiscal Year 2012 audit report was due to the State Auditor on November 15, 2012, and the
Fiscal Year 2013 audit report is not due to the State Auditor until November 15, 2013. If a
county's Fiscal Year 2012 audit report was not a public record in July 2013, the county would
not be eligible to receive a grant of a State capital outlay appropriation at that time;

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c. in the case of a grantee whose most recent annual audit report, agreed upon procedures report,
or special audit report released since its most recent annual audit or agreed upon procedures
report became a public record documents material weaknesses, significant deficiencies, or
findings that raise concerns about the grantee's ability to expend grant funds in accordance
with applicable law and account for and safeguard grant funds and assets acquired with grant
funds:

i. the grantee must have remedied the material weaknesses, significant deficiencies, and
findings to the satisfaction of the State agency making the grant;

ii. the State agency making the grant must have determined that it can impose and has the
resources to implement special grant conditions that adequately address those
weaknesses, deficiencies, and findings; or

iii. the State agency making the grant must have determined that another appropriate entity is
able and willing to act as fiscal agent for the grant;

d. in the case of a grantee that is not required to have annual audits or agreed upon procedures
conducted under the Audit Act:

i. the grantee must have otherwise demonstrated to the satisfaction of the State agency
making the grant that it has adequate accounting methods and procedures to expend grant
funds in accordance with applicable law and account for and safeguard grant funds and
assets acquired by grant funds;

ii. the State agency must have determined that it can impose and has the resources to
implement special grant conditions that will adequately address any relevant deficiencies
in the grantee's accounting methods and procedures; or

iii. the State agency must have determined that another appropriate entity is able and willing
to act as fiscal agent for the grant; and

e. the grantee must have a budget approved by its oversight agency (if any) for the current fiscal
year and be in compliance with any financial reporting requirements.

2. Tribal Government grantees - uniform funding criteria. The following uniform funding criteria
must be met for a Tribal Government grantee to be eligible to receive a grant of a State capital
outlay appropriation:

a. for the most recently concluded fiscal year, a grantee must have timely submitted to the
federal government all forms and federal single audit documentation required under the
federal Single Audit Act of 1984, as amended, and Office of Management and Budget
Circular No. A-133, if the due date for the report under federal law has passed. A federal
single audit report is timely submitted for purposes of this criterion if submitted by any
extended due date granted by the grantee's federal cognizant agency;

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b. in the case of a grantee whose most recent federal single audit raises concerns about the
grantee's ability to expend grant funds in accordance with applicable law and account for and
safeguard grant funds and assets acquired with grant funds:

i. the grantee must have remedied the inadequacies in its accounting methods and
procedures to the satisfaction of the State agency making the grant;

ii. the State agency making the grant must have determined that it can impose and has the
resources to implement special grant conditions that adequately address the inadequacies
in the grantee's accounting methods and procedures; or

iii. the State agency making the grant must have determined that another appropriate entity is
able and willing to act as fiscal agent for the grant.

3. Uniform funding criteria are minimums. The uniform funding criteria in paragraphs 1 and 2 of
this Section D are minimums. State agencies are not precluded from imposing other, more
stringent funding criteria or grant conditions.

4. Prefunding determinations concerning uniform funding criteria.

a. State agencies are responsible for ensuring that the uniform funding criteria are met prior (i)
to certifying to the State Board of Finance for the issuance of severance tax bonds,
supplemental severance tax bonds, or general obligation bonds for a project or (ii) to making
a grant of a State capital outlay appropriation to a grantee.

b. In the event that more than one State agency receives an appropriation for the same grantee,
those State agencies will coordinate their review concerning the grantee's compliance with
the applicable uniform funding criteria so as to (i) ensure that the grantee does not receive
multiple requests for the same information and (ii) prevent inconsistent determinations on
whether the grantee has adequate accounting methods and procedures to expend grant funds
in accordance with applicable law and account for and safeguard grant funds and assets
acquired by grant funds. COB shall notify State agencies that received an appropriation for
the same grantee and designate a lead agency from among those agencies to coordinate the
review of the grantee's compliance with the applicable uniform funding criteria and interact
with the grantee during the prefunding review process.

c. If the State agency receiving the appropriation has determined that one or more of the
uniform funding criteria has not been met, the State agency will communicate the results of
its review to the grantee. At this time, the grantee will have an opportunity to respond to the
State agency's assessment and/or work and consult with the State agency to remedy
deficiencies in the grantee's accounting methods and procedures through corrective action,
special conditions, or use of an appropriate fiscal agent. The State agency shall consider and
give due deference to any corrective action plan submitted to or approved by a federal
agency making an award to the grantee. The State agency may require Grantees to
demonstrate that corrective action has been implemented through an agreed-upon procedures
engagement with a certified public accountant. If the State agency determines that
deficiencies have not been remedied through corrective action, special conditions, or use of

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an appropriate fiscal agent, the State agency will not certify for the issuance of bonds or
initiate a grant agreement at that time.

d. With respect to Tribal Government grantees, the following additional procedures will apply.

i. Use of data collection firm for reporting on federal single audits. State agencies will use
federal Form SF-SAC (or its successor firms) to make an initial assessment of a Tribal
Government grantee's accounting methods and procedures. If the form reflects an
unqualified opinion and no significant deficiencies, material weaknesses, instances of
material noncompliance, or questioned costs, the State agency will make a determination
of eligibility under the adequate accounting methods and procedures criterion. If the form
reflects an opinion other than unqualified, a significant deficiency, a material weakness, a
material noncompliance, or questioned costs, the State agency will request from the
Tribal Government grantee relevant sections of the single audit report to analyze.

ii. Contents of single audit report to be disclosed to State agency . Tribal Government
grantees will not be required to provide the State agency with copies of the financial
statements, notes to financial statements, or supplementary information sections of the
single audit report for purposes of assessing whether the grantee has adequate accounting
methods and procedures to expend grant funds in accordance with applicable law and
account for and safeguard grant funds and assets acquired by grant funds.

5. Continual compliance with uniform funding criteria. Throughout the term of the grant, State
agencies must monitor a grantee's compliance with the applicable uniform funding criteria and
take appropriate action to remedy non-compliance.

6. Template capital outlay grant agreements. State agencies shall utilize the applicable template
capital outlay grant agreement developed by COB.

7. Private use of capital assets. State agencies must ensure that the private use of capital assets
acquired by a grantee with State capital outlay appropriations complies with law. As a general
condition to reimbursing the grantee for qualifying expenditures, the sale, lease, or license of
capital assets to a private entity or an operating agreement with a private entity:

a. must be approved by the applicable oversight entity (if any) in accordance with law; or

b. if no oversight entity is required to approve of the transaction, the State agency must approve
of the transaction as complying with law.

Prior to the sale, lease, license, or operating agreement being approved pursuant to subparagraph
(a) or (b) above, the State agency may, in its discretion and unless inconsistent with New Mexico
State Board of Finance imposed conditions, reimburse the grantee for necessary expenditures
incurred to develop the project sufficiently to make the sale, lease, license, or operating
agreement commercially feasible, such as plan and design expenditures.

8. Deviations and exceptions. Deviations from and exceptions to these policies, procedures, and
related templates require the approval of the Secretary of Finance and Administration or the

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Secretary's designee. More stringent or additional funding criteria and grant conditions are not
deviations or exceptions and, therefore, do not require approval by the Secretary or the
Secretary's designee. Deviations and exceptions will be evaluated upon the following criteria:

a. whether the underlying purposes of the policies, procedures, and related templates will be
adequately served through other means;

b. whether the programmatic needs of the State agency make compliance with the policies,
procedures, and related templates impracticable;

c. whether specific legal requirements of the State agency or Grantee make compliance with the
policies, procedures, and related templates impracticable; and

d. whether the requested deviation or exception is justified by other factors constituting good
cause as determined by the Secretary of Finance and Administration or the Secretary's
designee.

E. Applicability

All State agencies, unless specifically exempted by law.

F. Procedures

State Agency

1. Prepare the questionnaire or other form developed by COB to document compliance with uniform
funding criteria. Only upon COB's acknowledgement that requirements have been met should
State agency certify to the State Board of Finance for issuance of bonds or initiate a grant to a
grantee.

2. Use applicable template capital outlay grant agreement. More stringent or additional funding
criteria and grant conditions may be added in an Attachment A to the grant agreement. Such
more stringent or additional terms and conditions do not constitute deviations or exceptions and,
therefore, do not require approval by the Secretary or the Secretary's designee.

COB

1. Notify State agencies that received an appropriation for the same grantee and designate a lead
agency from among those agencies to coordinate the review of the grantee's compliance with the
applicable uniform funding criteria and interact with the grantee with regard to the prefunding
assessment of the grantee's compliance with the applicable uniform funding criteria.

2. Review submitted questionnaire or other form documenting compliance with uniform funding
criteria. Determine if submission is compliant. Notify State agency of determination.

3. Monitor compliance with requirements set out in the Policy and Procedures section.

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G. Definitions

1. "Adequate accounting methods and procedures to expend grant funds in accordance with
applicable law and account for and safeguard grant funds and assets acquired by grant funds"
means that the design and operation of the Grantee's internal controls allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and
correct, on a timely basis: (i) noncompliance with applicable laws, policies, and procedures
related to the expenditure of grant funds, including, but not limited to, expending grant funds
after expiration of the expenditure period; (ii) misstatements regarding grant funds, including, but
not limited to, the failure to timely and accurately record and report grant revenue and
expenditures; (iii) unauthorized or unsupported expenditures of grant funds; and (iv) the
misappropriation of grant funds or assets acquired by grant funds, including, but not limited to,
theft of grant funds or assets acquired by grant funds and the use of grant funds or assets acquired
by grant funds for other than allowable purposes.

2. "COB" means the Department of Finance and Administration's Capital Outlay Bureau.

3. "Material weakness" means a deficiency, or a combination of deficiencies, in internal control,

such that there is a reasonable possibility that a material misstatement of the entity's financial
statements will not be prevented, or detected and corrected on a timely basis.

4. "Significant deficiency" means a deficiency, or a combination of deficiencies, in internal control

that is less severe than a material weakness, yet important enough to merit attention by those
charged with governance.

5. "Tribal Government" means a federally recognized Indian Nation, Tribe or Pueblo located
wholly or partially in New Mexico or any of its governmental entities or subdivisions.

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Business Process GM-01

GM-01 Grants Management (Overview)

Agency State Treasurer Office
(STO)

Start

6
Apply payments
1 To General
To monthly
Complete the Ledger
GM-02 reconciliation of AR
Grantor Form and Revenue

M – GM01 / 2

2
Generate proposal
and obtain
award

3
Generate project,
project budget and
contract

To
4
GM-04
Accumulate Costs

5
Receive pre-
payment or payment
for invoice and
deposit funds

A – GM01 / 1

M – GM01 / 3

Process
B: Record
F: Reconcile

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GM-01 Grants Management (Overview) (Control Points)

A – GM01 / 1 Only authorized users can record pre-payment or payment into SHARE.

State Treasurer Office is responsible to review and approve payments, and perform adjustments and/or transfers on A/R
M – GM01 / 2 balances.

The agency reconciles the total of pre-payment or payment balance from the Bank to the total balance obtained from
M – GM01 / 3
SHARE.

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Business Process GM-02

GM-02 Grants Management – Customer Set-up & Maintenance

General Services Department (GSD)

Start

1
From Process
Complete and A: Authorize
GM-01
submit Grantor Form D: Verify I
E: Verify S
(New or Existing)

A – GM02 / 1

A – GM02 / 2

2
Enter new sponsor Process
B: Record
or update existing
customer in SHARE
A – GM02 / 3

To
GM-04

Process
B: Record

3 4 5
6
General Customer Billing Assign Billing
Grantor Contact
Information Set-up Address

7
Customer set-up
Completed into
SHARE

End

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Business Process GM-02

GM-02 Grants Management – Customer Set-up & Maintenance (Control Points)

A – GM02 / 1 SHARE limits access to enter or update a new sponsor into SHARE database to authorized users only.

A – GM02 / 2 No approval is necessary in SHARE.

A – GM02 / 3 SHARE requires that an authorized user record the updates/ new customer into database.

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Business Process GM-03

GM-03 Grants Management – Project Initiation

Agency
CFDA Number
St art/End Date
Project Title
Project Di rector
Award Document Grantor
(filed by requesting 1 2
Obtain the Award Agency) Submit proposal to Enter Proposal Data
funding Agency into SHARE module
Process
A: Authorize
D: Verify I

4 3 A – GM03 / 1
From
Generate Award Enter Sponsor
GM-01 M – GM03 / 2
(SHARE Code Proposal Number
Process) into SHARE

5 8 10
Create Contract into Create Award and Populate Project
SHARE Project into SHARE Budget into SHARE

To
GM-05

9
Update Award & To 11 Process
Scheduled
Project with sub- GM-03 Post Budget to B: Record
Billing? A: Authorize
Yes No recipient detail from Project Costing
vendor file
A – GM03 / 4

6
Assign Scheduled 7 Process
Bill Rate Activate Grant A: Authorize 12
Template Contract on SHARE D: Verify I Create Project
(CA) Budget Journal
Entry
A – GM03 / 3

To To
GM-05 GLCC-01

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GM-03 Grants Management – Project Initiation (Control Points)

A – GM03 / 1 No approval is necessary in SHARE. Access for entry is the same as approval.

M – GM03 / 2 The Proposal data is compared with the support documentation in order to enter the correct data into SHARE database.

SHARE only allows the Grant Activation after the Grant Contract is verified in the system. The contract must be received
A – GM03 / 3
before the billing process is started.

A – GM03 / 4 SHARE only allows authorized person to record the Post Budget to Project Costing.

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GM-04 Grants Management – Cost Accumulation & Integration (Overview)

SHARE System

1
Accounts Payable
From
PO-02 Transaction
Adjustment

Accounts Payable
Purchasing Module
Negotiated Rate Cost Collection Module
Allocation
From
GM-09
From
GM-01
Transaction
Adjustment
Grants Management - F&A Module
3
Contracts - Revenue Recognition Update Project Resource Time & Labor
Module Table
(Project Costing)
10

Process General Ledger Module

F: M – GM04 / 1
Reconcile
2
Contracts From
GM-02

Billing Module
Reports used
for: auditing
reconciliation or
validate Cost
transactions Allocation
Transaction
Adjustment
4
Project Cost Reports To
(Transaction Level 5
GM-06
Summary, Queries, etc.) General Ledger

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GM-04 Grants Management – Cost Accumulation & Integration (Control Points)

M – GM04 / 1 Monthly expenditures to revenues are reconciled.

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Business Process GM-05

GM-05 Grants Management – Billing and Draw Creation

Agency
From
GM-03

1 2 12
SHARE generates a 3 Return to initiating
Run Contracts-Billing
Billing Worksheet Analyze the Billing module
Interface (from
Worksheet
Contracts)

From
GM-08 A – GM05 / 1 A – GM04 / 2
Process
D: Verify I

5 4
11
SHARE performs the Approves Billing Billing Worksheet
Yes No Delete Billing
billing “Finalization” Worksheet into ok?
Worksheet
(run from Billing) SHARE

M – GM05 / 3
From
Process
BI-01 A: Authorize A – GM05 / 4

7
6 9 10
SHARE automatically
Finalized Invoice SHARE automatically SHARE Update
runs Journal Generator
runs Project & Contracts & Billing
and
Contracts Interface Cross-Reference
Update G/L

Note: Invoice finalized;

GL, Projects, Contracts
and Billing updated; fund
draw request initiated

8
Enter Draw request in
End
Federal Systems (FED
System)

Process
B: Record A – GM05 / 5

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GM-05 Grants Management – Billing and Draw Creation (Control Points)

Agency procedures require review and approval of cost allocation required prior to completion of worksheets by grant for
A – GM05 / 1
billing.

Process procedures (Billing Creation Overview) are being utilized by agencies to achieve completeness of documentation
A – GM05 / 2 and mitigate inconsistencies in reporting. In addition utilizing such process procedures complies with §6-5-2(A) & B and
2.20.5 & 6 by establishing documented standards.

Billing personnel (from the Agency) are responsible to verify if the billing worksheet is in accordance with General
M – GM05 / 3 Ledger. If the billing worksheet is not in accordance with General Ledger, the agency corrects the incorrect Invoices from
the Billing Worksheet.

A – GM05 / 4 Agency procedures require review and approval of billing worksheets are approved by a different person than the
preparer.

A – GM05 / 5 System Access only allows authorized person to enter Draw request in Federal Systems (FED System).

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Business Process GM-06

GM-06 Grants Management – Create Accounts Receivable (Overview)

Financial Control
Agency State Treasurers Office Division (FCD)
(STO)

1 2
From Create Grantor Creates
GM-04 Accounts and
Receivable into Submits
SHARE Payment

Process
F: Reconcile

Electronic 13
No Deposit? Yes
STO reconciles
SHARE deposits to M – GM06 / 8
bank deposit
3 4
Agency Electronic
Receives deposit
Customer Received at
Payment Bank
14
STO validates and Process
A: Authorize
5 approves deposit and B: Record
3-part paper validates budget in E: Verify S
deposit ticket SHARE
prepared
A – GM06 / 7

6
Are budget
Deposit ticket and cash/checks are checks Yes
taken to the bank same day as confirmed?
entered into SHARE
Process
A: Authorize No 16
D: Verify I SHARE creates
7
deposit journal
Validated deposit slip
15 entries
received from Bank M – GM06 / 6
Deposit is posted to
A – GM06 / 3 Agencies general
operating fund by default
8 to acct #290900 to be Process
Deposit ticket retained by researched by Agency
A: Authorize
B: Record
the Agency for research, E: Verify S
audit and posting 17
purposes Post journal entries
Note:
Deposi t ID i n SHARE =
to record CASH
Deposi t Number on Bank
Deposi t Ticket (lower left hand End
corner)
9 A – GM06 / 4
Deposit entered
A – GM06 / 5
Process into SHARE M – GM06 / 1
A: Authorize
B: Record
D: Verify I
A – GM06 / 2 To General
10 Ledger
Accounting entries
created
Note: St andard Entry,
Correcting Entry,
Adjusting Entry,
Sus pense Entry
11
SHARE generates
Audit-Reports

End

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FIN 9 – Grants Management
Business Process GM-06

GM-06 Grants Management – Create Accounts Receivable (Overview) (Control Points)

M – GM06 / 1 Agency personnel validate the Deposit Slip/Electronic deposits received from Bank within the G/L.

A – GM06 / 2 System Access only allows authorized person to validate deposit to be entered into SHARE.

Agency personnel reconciles the total balance from the deposit worksheet with the Bank total balance. Differences are
A – GM06 / 3
identified and verified at the Maintenance Worksheet.

A – GM06 / 4 Only authorized users can post Journal Entries into SHARE.

A – GM06 / 5 The State Treasurer’s Office is responsible for validating and authorizing the Journal Entry into SHARE.

State Treasurer’s Office verifies if the information on SHARE is in accordance with the support documentation in order to
M – GM06 / 6
verify the Journal Entry.

A – GM06 / 7 State Treasurer’s Office approves/validates the deposit (Set to Post) into SHARE.

M – GM06 / 8 State Treasurer Office reconciles SHARE deposits to bank deposits.

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FIN 9 – Grants Management
Business Process GM-07

GM-07 Grants Management – Accounts Receivable Research (Overview)

Financial Control Division
Support Unit (FCDSU) Agency

Research Accounts
Receivable issues

Need to
No End
review?

Yes

1 Is it a Technical Process
No
Accounting Problem Problem? F: Reconcile

M – GM07 / 1
Yes

2
FCDSU verifies the
Issues and perform 4
Process Technical Problem
the necessary adjusts D: Verify I
on SHARE

M – GM07 / 3

5
Agency verifies the
3 Issues and perform Process
Complete Accounts the necessary adjusts D: Verify I
Receivable Research on SHARE
and Post adjustments
on G/L
M – GM07 / 2

6
End Complete Accounts
Receivable Research
and Post adjustments
on G/L

End

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FIN 9 – Grants Management
Business Process GM-07

GM-07 Grants Management – Accounts Receivable Research (Overview) (Control Overviews)

In order to verify any accounts receivable issues, agency personnel have to manually reconcile if the billed data matches
M – GM07 / 1
with the G/L data.

M – GM07 / 2 Agency verifies the accounts receivable and revenue issues and perform the necessary adjusts on SHARE.

M – GM07 / 3 FCDSU verifies the accounts receivable issues and perform the necessary adjustments on SHARE.

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FIN 9 – Grants Management
Business Process GM-08

GM-08 Grants Management – Grant Payments (Deferred Revenue) – (Overview)

Agency

Receive and
recognize
prepayments for a
grant

1
Enter Prepaid
Amount
Into SHARE
(Contracts Module)

2
Define Billing Plan, Process
Define Utilization, A: Authorize
Activate Plan D: Verify I

(Contracts Module)

A – GM08 / 1
M – GM08 / 2

3
To
Contracts Module /
GM-05
Billing Module
Interface on SHARE

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FIN 9 – Grants Management
Business Process GM-08

GM-08 Grants Management – Grant Payments (Deferred Revenue) – (Overview) (Control Points)
A – GM08 / 1 User authorization in SHARE restricts defining Billing Plan, Defining Utilization and activate Plans.

Agency personnel compares the support documentation with the entry in order to validate the data into SHARE for the
M – GM08 / 2
Billing Plan and Utilization prior to activating plan.

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FIN 9 – Grants Management
Business Process GM-09

GM-09 Grants Management – Allocations (Overview)

Agency

Start to set-up the

allocations into
SHARE

1
Process
A: Authorize Run GL line queries
by fund

A – GM09 / 1

2
Segregate expense
account codes by
cost pool

3
Apply Basis Yes

4
Segregate allocated
costs by grant on
worksheets

5
Update Offset
Ledger

Note:
The allocation process has to be performed as necessary. Necessary more
Agency performs this process until all the Grants are allocations?
completely allocated.

No

To
GM-04

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FIN 9 – Grants Management
Business Process GM-09

GM-09 Grants Management – Allocations (Overview) (Control Points)

A – GM09 / 1 User authorization in SHARE restricts the performance of allocations to authorized personnel.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 10 – Inventory
FIN 10

FIN 10 – Inventory

Policies and Procedures

Business Processes

Beginning of Document

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 10 – Inventory
Policies & Procedures FIN 10.1

FIN 10.1 Recording Inventory

A. MAP Standard

To ensure that inventory is recognized and recorded, state agencies shall maintain inventory
accounting systems.

B. Purpose

This policy establishes the requirement that state agencies account for significant inventories in
accordance with Generally Accepted Accounting Principles and the budgetary basis of accounting.

C. Authority

NMSA §1978, 6-5-2

D. Policy

1. SHARE agencies with the exception of NMDOT must use the purchase basis of accounting for
inventories of materials and supplies.

The purchase basis of accounting requires that state agencies record expenditures at the time the
goods and materials are received and accepted as delivered.

2. NMDOT must use the consumption basis of accounting for inventories of materials and supplies.

The consumption basis of accounting requires recording expenditures at the time the goods and
materials are issued for use.

E. Applicability

This policy applies to all state agencies.

F. Procedures – Receive item into inventory

1. Receiving clerk receives inventory items, assigns location, and enters into SHARE.

2. Receiving clerk puts inventory item away.

3. Reviews the Correct Staged Errors Table and the Stockroom Feedback Table.

4. If there are errors, the receiving clerk processes the Correct Staged Errors Table and the
Stockroom Feedback Table.

5. Cost accounting is created in SHARE.

6. Journal is generated to update the inventory in the G/L.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 10 – Inventory
Policies & Procedures FIN 10.1

G. Procedures – Issue Stock

1. An Express Issue is created in SHARE, which requests the item to be issued.

2. Express Issue is saved, and the item pulled from stores and given to requestor.

3. Cost accounting is created in SHARE.

4. Journal is generated to update the inventory in the G/L.

H. Procedures – Creation of a New Item

1. Using the Define the Items and Attributes link, user establishes the item in SHARE. It remains in
Pending Status until approved in system.

2. Authorized Item Approver from Finance reviews and approves in SHARE.

3. After approval by Item Approver, user completes defining the item within SHARE.

4. After item is defined, it is established as a valid item for each appropriate business unit.

I. Procedures – Bin to Bin Transfer

1. Inventory clerk creates Transfer in the system.

2. Enters current location, quantity, and destination.

3. Save Transfer in the system.

Note: This is to record the movement of the same inventory item from one storage area to another,
within the same business unit. This does not create an accounting entry.

J. Procedures – Inter Unit Transfer

1. An Express Issue is created in SHARE, which requests the item to be issued.

2. Express Issue is saved, and the item pulled from stores and given to requestor.

3. Items transferred are reviewed by both shipping and receiving location.

4. Receiving location performs putaway process.

5. Cost accounting is created in SHARE.

6. Journal is generated to update the inventory in the G/L.

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FIN 10 – Inventory
Policies & Procedures FIN 10.1

K. Procedures – Quantity Adjustment

Note: Adjustments can be required for many reasons such as:

-Original entry was in error

-Loss of items
-Discrepancies found during the year-end or periodic inventory
-Expansion or contraction of fuel inventory

a. Inventory Clerks enter adjustment type and quantity.

b. Agency accounting department performs an adjustment review.

c. The adjustment is saved in the system.

4. Cost accounting is created in SHARE.

5. Journal is generated to update the inventory in the G/L.

L. Procedures – Average Cost Adjustment

Note: A manual adjustment of costs may be needed if, for example:

- Item was originally recorded at the wrong cost, or the wrong unit of measure.
- To add the freight charges to the cost.

1. Inventory clerk updates the Costs Page in the system, entering adjustment type and
method.

2. The adjustment is saved in the system.

3. SHARE calculates new value of item.

4. Cost accounting is created in SHARE.

5. Journal is generated to update the inventory in the G/L.

M. Procedures – Return Materials

1. The Storehouse Creates RMA.

2. Receive Returned Material.

3. Save Receipt to Putaway.

4. Reversal of Issuance.

5. Cost accounting is created in SHARE.

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FIN 10 – Inventory
Policies & Procedures FIN 10.1

6. Journal is generated to update the inventory in the G/L.

Note: The system will cost the reversal at current cost rather than the cost at the time of the original
issuance. This is a known anomaly of the system.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 10 – Inventory
Policies & Procedures FIN 10.2

FIN 10.2 Financial Reporting

A. MAP Principle

Inventory management should provide for a timely and accurate accounting and reporting of
materials and supplies on hand.

B. Purpose

This policy establishes the requirement that state agencies report significant inventory amounts on the
balance sheet at fiscal year-end.

C. Authority

NMSA 1978, §6-5-2

D. Policy

1. At the end of each fiscal year, inventories of materials and supplies on hand should be counted
and reconciled with inventory records of goods on hand.

2. State agencies that manufacture goods must make a physical count of finished goods and raw
materials on hand, and to calculate work in progress to update inventory and accounting records.

3. When significant shortages or overages are found, state agencies shall determine the cause(s) and
augment internal controls as necessary to control and minimize any future occurrences.

4. State agencies must report significant inventories of materials, goods, and supplies on the balance
sheet of their year-end financial statements.

E. Applicability

This policy applies to all state agencies.

F. Procedures – Physical Inventory

1. During June, inventory transactions are held for the yearly physical inventory.

2. Agency sets up the Counting Event, which will create the counting sheets (INS 9051).

3. The inventory count is performed by two people, one who counts, and the second who records the
count.

4. The item counts are entered into SHARE, and a reconciliation report (INS 5050) is run to show
all variances.

5. Variances are recounted and any necessary adjustments to the count are made.

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FIN 10 – Inventory
Policies & Procedures FIN 10.2

6. The Stock Quantity Update adjusts the inventory counts in the system.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 10 – Inventory
Policies & Procedures FIN 10.3

FIN 10.3 Inventory Valuation

A. MAP Standard

Inventory valuation methods must accurately reflect the value of inventory.

B. Purpose

This policy establishes the inventory valuation methods authorized for use by state agencies.

C. Authority

NMSA 1978, §6-5-2

D. Policy

1. State agencies that are accounting for inventories must use either FIFO (first in, first out), LIFO
(last in, first out), or the Average Cost method for valuation of inventory, unless they obtain
written approval to use another method from DFA/FCD.

2. Only one valuation method can be used within the same inventory.

3. State agencies using FIFO (first-in, first-out) for valuing inventory must:

a. Use the cost of the last item(s) purchased and on hand for the valuation of each inventory
item and the value for the ending inventory.

b. Use the cost of the oldest item(s) purchased and on hand to record the cost of issuance.

4. State agencies using LIFO (last-in, first-out) for valuing inventory must:

a. Use the cost of the oldest item(s) purchased and on hand for the valuation of each inventory
item and the value for the ending inventory.

b. Use the cost of the last item(s) purchased and on hand to record the cost of issuance.

5. State agencies using the Average Cost method for valuing inventory must:

a. Combine the individual costs of all items and divide these combined costs by the number of
items on hand.

b. Use the resulting cost per item as the cost of issuance, the on-hand valuation of each
inventory item, and the value for the ending inventory.

E. Applicability

This policy applies to all state agencies.

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FIN 10 – Inventory
Policies & Procedures FIN 10.4

FIN 10.4 Tracking Significant Inventory

A. Statement

State agencies should maintain timely and accurate records when using a central stores operation for
acquiring and issuing significant supplies and materials.

B. Procedures

State Agency

1. Maintain timely and accurate inventory and accounting records that record in detail: each item in
the inventory, the number of units, cost, date received, and vendor for each purchase.

2. Maintain timely and accurate inventory and accounting records that record in detail: each item in
the inventory, the number, cost, and purchaser for items issued out of inventory.

3. Use requisition forms to request issuances. The completed form should be signed by the
requestor and should identify the account(s) to which the issuance will be charged.

4. Keep on file a list of personnel authorized to requisition items and/or to whom items can be
issued from central stores.

5. Develop written procedures for performing all functions associated with a central store. These
procedures should address acquisition, issuance, safeguards, physical count, write-offs, and
methods to record inventory adjustments.

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FIN 10 – Inventory
Policies & Procedures FIN 10.5

FIN 10.5 Safeguarding Inventory

A. MAP Standard

To safeguard inventory, state agencies must establish formal internal control structures.

B. Purpose

This policy establishes the requirement that state agencies have written policies and procedures to
ensure that materials and supplies are adequately controlled and safeguarded.

C. Authority

NMSA 1978, §6-5-2

D. Policy

1. State agencies that order, receive, and store significant amounts of materials and supplies for
future use, should develop written internal controls to safeguard those assets.

2. Inventory controls should provide safeguards against pilferage, fraud, fire, vandalism, theft, and
irregularities caused by employees, customers, or vendors.

3. State agencies should designate a secure place for physically storing inventories and state
agencies should limit access to inventories to authorized personnel.

4. State agencies should develop internal policies that limit actual quantities of and/or dollar
amounts of inventories that can be kept on site.

5. State agencies should establish procedures and accounting processes to document additions,
issuances, returns, and write-offs of inventory items.

6. State agencies should perform periodic reviews to verify the adequacy of the written policies and
procedures and to ensure compliance.

E. Applicability

This policy applies to all state agencies.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 10 – Inventory
Business Process IN-01

IN-01 Inventory (Overview)

Agency Financial Control
Division (FCD)

Receive Generate
Process
inventory items Put Away Items Journal Entry B
IN-02 into SHARE

Create Issue Save Issue Generate Journal Process

B: Record
IN-03

Available for
Create New Item Item is defined and
approved.
purchasing
IN-04
module

Bin to Bin Enter Location,

Save Transfer Generate Journal Process
Transfer Quantity & B: Record
IN-05 Destination

Inter Unit Save Issue

Put away Process Generate Journal Process
Transfer Stockroom B: Record
IN-06 Feedback

Quantity Enter Adjustment

Save Page Generate Journal Process
Adjustment Type and Quantity B: Record
IN-07

Average Cost Enter Adjustment

Save Page Generate Journal Process
Adjustment Type and Method B: Record
IN-08

Receive Returned
Return Materials Save Receipt to Generate Journal Process
Material
IN-09 Put away B: Record

Enter Item Counts

Inventory Count Stock Quantity Generate Journal Process
on Counting Sheet
IN-10 Update B: Record

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FIN 10 – Inventory
Business Process IN-02

IN-02 Inventory – Receiving and Putting Away Stock

Financial Control
Agency Division (FCD)

Start
6
Process
Generate Journal F: Reconcile
Entry
1
Receiving Clerk
Receives Inventory A – IN02 / 4
Process Items, assigns
D: Verify I
location and Enters
Into SHARE

M – IN02/ 1
End

Process 2
F: Reconcile Interface Receipts

3
Receiving Clerk puts M – IN02/ 2
inventory item away. No

4
Reviews the Correct
Process
D: Verify I Staged Errors Table
and the Stockroom M – IN02/ 3
Feedback Table

Errors?

Yes

5
Process the Correct
Staged Errors Table
and the Stockroom
Feedback Table

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 10 – Inventory
Business Process IN-02

IN-02 Inventory – Receiving and Putting Away Stock (Control Points)

M – IN02/ 1 Shipments are inspected by the receiving clerk and verified to shipping documents and entered into SHARE.

M – IN02/ 2 Inventory is stored in a secure location to prevent loss or misappropriation.

The clerk reviews the Correct Staged Errors report to determine if corrections need to be made, prior to the creation of the
M – IN02/ 3
journal entry.

A – IN02 / 4 Inventory post to and affect the balances of the Inventory Subsystem, and also post automatically to the General Ledger.

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FIN 10 – Inventory
Business Process IN-03

IN-03 Inventory – Issue Stock

Agency Financial Control Division (FCD)

5
Start Journal Generate

1 A – IN03 / 2
Create Express Issue
(Requisition) End

M – IN03 / 1

2 Process A:
Save Issue Authorize
D: Verify I

3
Item pulled from
stores and given to M – IN03 / 3
requestor.

4
Cost Accounting
Creation

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 10 – Inventory
Business Process IN-03

IN-03 Inventory – Issue Stock (Control Points)

M – IN03 / 1 Requisitions for inventory can only be made by authorized personnel.

A – IN03 / 2 SHARE limits access to Express Issues to authorized personnel.

M – IN03 / 3 Items requested are verified by both stock personnel and requestor.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 10 – Inventory
Business Process IN-04

IN-04 Inventory – Creation of a New Item

Agency

Start

A – IN04 / 1

1
Using the Define the
Items and Attributes
link, user establishes
the item in SHARE

2 Process
New Item is in D: Verify
Pending Status I

Process
A: 3
Authorize Authorized Item
Approver from A – IN04 / 2
Finance reviews and
approves in SHARE.

4
After approval by
Item Approver, user
completes defining
Establishes:
the item within Mandatory Account
SHARE. Conversion Rate
Quant ity Precis ion

5
After Item is set up,
it is established as an
item for each
appropriate business
unit.

END

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FIN 10 – Inventory
Business Process IN-04

IN-04 Inventory – Creation of a New Item (Control Points)

A – IN04 / 1 SHARE limits access to set up new items to authorized personnel.

A – IN04 / 2 Separate authorized individual reviews and approves initial item set-up.

340
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2.0 Unit 2—Work Break Down Structure and Policies
FIN 10 – Inventory
Business Process IN-05

IN-05 Inventory – Bin to Bin Transfer

Agency

A – IN05 / 1
Start

1
Create Transfer

2
Enter Location,
Quantity &
Destination

3 Process A:
Save Transfer M – IN05/ 2 Authorize
D: Verify I

Note – This is to record the movement of the same inventory item from one storage area to another,
within the same business unit. This does not create an accounting entry.

341
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FIN 10 – Inventory
Business Process IN-05

IN-05 Inventory – Bin to Bin Transfer (Control Points)

A – IN05 / 1 SHARE restricts access to create a transfer entry to authorized personnel.

M – IN05/ 2 The transfer is confirmed by personnel at both the shipping and the receiving location.

342
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FIN 10 – Inventory
Business Process IN-06

IN-06 Inventory – Inter Unit Transfer

Agency Financial Control Division (FCD)

6
Journal Generate
Start

A – IN06 / 1
1
Create Express
Issue End

2 Process
Save Issue A: Authorize
D: Verify I

M – IN06/ 2
3
Stockroom
Feedback

4
Putaway Process

5
Cost Accounting
Creation

Note – This is to record the movement of the same inventory item from one business unit to another
business unit. This creates an accounting entry between units.

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FIN 10 – Inventory
Business Process IN-06

IN-06 Inventory – Inter Unit Transfer (Control Points)

A – IN06 / 1 SHARE restricts access to create a transfer entry to authorized personnel.

M – IN06/ 2 The transfer is confirmed by personnel at both the shipping and the receiving locations.

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FIN 10 – Inventory
Business Process IN-07

IN-07 Inventory – Quantity Adjustment

Agency Financial Control Division
(FCD)

7
Journal Generate
Start

1 Adjustments can be required for many End

Manage Adjustments reasons such as:
o Original entry was in error
o Loss of items
o Discrepancies found during the year
end or periodic inventory
o Expansion or contraction of fuel
inventory.
2
Enter Adjustment Type

A – IN07 / 1

3
Enter Quantity

Process
A: Authorize
D: Verify I
4 E: Verify S
NMDOT Finance
Bureau Performs an
Adjustment Review M – IN07 / 2

5
Save Adjustment

6
Cost Accounting
Creation

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 10 – Inventory
Business Process IN-07

IN-07 Inventory – Quantity Adjustment (Control Points)

A – IN07 / 1 SHARE limits access to adjustments to authorized personnel.

M – IN07 / 2 A monthly reconciliation process is performed to compare the warehouse value to the general ledger value.

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FIN 10 – Inventory
Business Process IN-08

IN-08 Inventory – Average Cost Adjustment

Financial Control
Agency Division (FCD)

7
Start
Journal Generate

1 A manual adjustment of costs may be

End
Update Costs Page needed if, for example:
o Item was originally recorded at
the wrong cost, or the wrong
unit of measure.
o To add the freight charges to the
cost.

2
Enter Adjustment Process
Type A:
Authorize
D: Verify
I

3
Enter Adjustment M – IN08 / 1
Method

Process
A:
4 Authorize
Save Adjustment D: Verify
I

M – IN08 / 2

5
Process
SHARE
B: Record
Calculates New
Value of Item.

A – IN08/ 3

6
Cost Accounting
Creation

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FIN 10 – Inventory
Business Process IN-08

IN-08 Inventory – Average Cost Adjustment (Control Points)

Verification of actual inventory costs should be performed by the Warehouse. A review of report data (IN 40 report) is
M – IN08 / 1
done to detect items with significant unit cost changes or unusual costs.

M – IN08 / 2 Authorized user will review and verify adjustment type and method prior to saving page in SHARE.

A – IN08/ 3 SHARE has been configured to systematically value inventory using the average cost method in order to accurately
reflect the value of inventory.

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FIN 10 – Inventory
Business Process IN-09

IN-09 Inventory – Return Materials

Agency Financial Control Division
(FCD)

Start 6
Journal Generate

1
The Storehouse
Creates
RMA
End

Process
2 D:
Receive Returned Verify I
Material

M – IN09 / 1

3
Save Receipt to
Putaway

4
Reversal of Issuance

5
Cost Accounting
Creation

Note – the system will cost the reversal at

current cost rather than the cost at the
time of the original issuance. This is a
known anomaly of the system.

349
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FIN 10 – Inventory
Business Process IN-09

IN-09 Inventory – Return Materials (Control Points)

M – IN09 / 1 Returned materials are inspected by the receiving clerk and verified to shipping documents.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 10 – Inventory
Business Process IN-10

IN-10 Inventory – Counts

Agency Financial Control Division
(FCD)

Start
9
Journal Generate

1
Process D: 2
Setup Counting
Authorize Event Creation End
Event

M – IN10 / 1

3
4
Create Counting
Perform Inventory
Sheet
Counts
(INS 9051)

Process M – IN10 / 2
B: Rec ord

M – IN10 / 3

6
Process F:
Process 5 Run Reconciliation
Rec oncile
B: Rec ord Enter Item Counts Report E: Verify
(INS 5050)

M – IN10 / 4 A – IN10 / 5

Process
F:
7 8
Rec oncile Stock Quantity Cost Accounting
Update Creation

M – IN10 / 6

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FIN 10 – Inventory
Business Process IN-10

IN-10 Inventory – Counts (Control Points)

During each fiscal year the SHARE stores warehouse "freeze” period is in June; all SHARE inventory transactions
M – IN10 / 1 (Inventory Adjustment Transactions, Over the Counter Transactions, etc.) are held and not processed until the inventory is
completed.

Agency personnel create counting sheets for each event. These sheets are sorted by bin location and are used for recording
M – IN10 / 2
actual counts. They do not contain any "on-hand-quantities."

M – IN10 / 3 One employee counts quantity of items at each stock location, the other employee records the count on the count sheet.

M – IN10 / 4 An employee not involved in the actual count process enters count quantities into SHARE.

Agency personnel run the reconciliation report (INS 5050) showing adjustments to be made, i.e. differences between the
A – IN10 / 5
actual counts and the count shown in the system.

M – IN10 / 6 A recount is performed for all items with a difference by the Stores Supervisor.

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FIN 11 – Receivables (Federal Grant)
FIN 11

FIN 11 – Receivables

Policies and Procedures

Business Processes

Beginning of Document

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FIN 11 – Receivables (Federal Grant)
Policies & Procedures FIN 11.1

FIN 11.1 Managing Accounts Receivable

A. MAP Standard

To protect assets, accounts receivable should be actively managed.

B. Purpose

This policy establishes the requirement that state agencies actively manage accounts receivable.

C. Authority

NMSA 1978, §6-5-2

D. Policy

1. All receivables must be properly managed.

a. State agencies must maintain detail accounts receivable ledgers.

b. State agencies must make every effort possible to collect all accounts receivable.

E. Applicability

This policy applies to all state agencies.

F. Procedures

State Agency

1. Create Accounts Receivable into SHARE into proper classifications depending on grantor.

2. Grantor Creates and Submits Payment.

3. For Electronic Deposit the Electronic deposit is received at Bank.

a. For Checks Received at state agency. State agency prepares a 3-part deposit slip prepared
and Cash taken to Bank. The state agency validates Deposit Slip Received from Bank.

4. Deposits are entered into SHARE.

5. Agency creates accounting entries, completes, and budget checks deposit in SHARE

State Treasurer Office (STO)

6. STO reconciles SHARE deposits to bank deposit.

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Policies & Procedures FIN 11.1

Financial Control Division (FCD)

7. SHARE creates deposit journal entries.

8. Post journal entries to record CASH.

9. Request Receivables Update (Update Customer Balance).

10. Deposit posted and payment applied.

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FIN 11 – Receivables (Federal Grant)
Policies & Procedures FIN 11.2

FIN 11.2 Revenue Susceptible to Accrual

A. MAP Standard

To ensure that revenues are properly recognized, state agencies should accrue revenues.

B. Purpose

This policy establishes the criteria to be used for recording revenue.

C. Authority

NMSA 1978, §6-5-2

Codification of Governmental Accounting and Financial Reporting Standards – Governmental
Accounting Standards Board
Legislation Specific to state agency, Account(s), and/or Fund(s)

D. Policy

1. To meet management needs, meet federal reporting requirements, and comply with state law,
state agencies must recognize and record revenues.

2. State agencies should recognize and accrue revenues using either the accrual or modified accrual
basis, depending on the fund type:

a. Governmental Fund Types use the Modified Accrual Basis of accounting under which
revenues are recognized in the accounting period in which they become susceptible to
accrual. Revenues become susceptible to accrual when they are:

i. Measurable – meaning that the sum of the forthcoming revenues can be readily
determined.

ii. Available – meaning (1) that the revenues legally can be used to finance current period
expenditures, and (2) that the revenues will be collected in the current period or soon
enough thereafter for use to pay liabilities of the current period. (The cut-off for revenue
recognition should not exceed ninety days.)

b. Proprietary Fund Types use the Accrual Basis of accounting and recognize revenues in the
accounting period in which they are earned and become measurable.

c. Fiduciary Fund Types use either the Modified Accrual or Accrual Basis to recognize
revenues on a basis consistent with the fund's accounting measurement objective.

i. Nonexpendable trust and pension funds should use the accrual basis.

ii. Expendable trust funds should adhere to the modified accrual basis.

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Policies & Procedures FIN 11.2

iii. State agency fund types do not recognize revenues.

3. State agencies that are unable to properly account for accounts receivable may be required by
FCD to account for all revenue on a “cash” basis.

E. Applicability

These policies apply to all state agencies.

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FIN 11 – Receivables (Federal Grant)
Policies & Procedures FIN 11.3

FIN 11.3 Revenue Classification

A. MAP Standard

To ensure that revenue and related receivables are properly accounted for, Cash Receipt must be
properly classified and recorded in the accounting records.

B. Purpose

This policy establishes the requirement that state agencies classify Cash Receipts in accordance with
legal requirements, management needs, and Generally Accepted Accounting Principles.

C. Authority

NMSA 1978, §6-5-2

Generally Accepted Accounting Principles

D. Policy

1. State agencies shall accurately classify and record Cash Receipts to correctly recognize the
economic event that has taken place:

a. A receipt of revenue.

b. A reduction of Accounts Receivable.

c. A refund of Expenditures.

2. Recording a refund of an expenditure:

a. To record a refund made in the same fiscal year in which the money was received, state
agencies should use the same accounts as the original transaction, effectively reversing the
entry; providing the amount does not exceed $500.00. If the amount exceeds $500.00, the
agency should deposit the monies into Account 290900, “Receipts Held in Suspense”. The
agency must then submit a journal entry along with supporting documentation to reclassify
the amount in 290900 to the appropriate expenditure account.

b. To record a refund of a transaction that occurred in a previous fiscal year, state agencies
should not charge a current revenue or expenditure account, but should use
miscellaneous revenue or the same balance sheet account(s) used for the original transaction.

c. State agencies should contact FCD if they have questions concerning the appropriate
accounts to use.

d. To record a refund of a transaction that occurred in a previous fiscal year for a multi-year
appropriation that is still active, state agencies should charge the appropriate expenditure
account(s) used on the original transaction.

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3. State agencies that are unable to properly account for accounts receivable may be required by
FCD to account for revenues on a “cash” basis.

E. Applicability

This policy applies to all state agencies.

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FIN 11 – Receivables (Federal Grant)
Policies & Procedures FIN 11.4

FIN 11.4 Legal Basis for Revenue

A. MAP Standard

For state agencies to legally generate revenue, they must have specific legislative authority to do so.

B. Purpose

This policy establishes that all revenues generated by state agencies must be authorized by legislation.

C. Authority

NMSA 1978, §6-4-2 and §6-5-2

D. Policy

1. To generate revenue or enter into agreements that will generate revenue, state agencies must have
specific legal authority.

2. All revenue generated must be credited to the proper fund:

a. State statute provides that all revenue not otherwise allocated by law must be credited to the
State General Fund.

E. Applicability

This policy applies to all state agencies.

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FIN 11 – Receivables (Federal Grant)
Policies & Procedures FIN 11.5

FIN 11.5 Deferred Revenue

A. MAP Standard

To ensure that liabilities are recognized properly, cash that is received before it is earned should be
recorded as a liability.

B. Purpose

This policy establishes the requirement that state agencies use the Deferred Revenue liability account
to record cash that is received before the state agency performs the services or delivers the related
goods.

C. Authority

NMSA 1978, §6-5-2

D. Policy

1. When state agencies receive cash before it is earned, they should record the receipt as deferred
revenue by increasing (credit) the Deferred Revenue liability account and increasing (debit) the
applicable cash account.

2. Immediately upon earning the cash received, state agencies should recognize the revenue by
reducing (debit) the Deferred Revenue liability account and increasing (credit) the applicable
revenue source account.

3. State agencies that are unable to properly account for Deferred Revenue may be required by FCD
to account for all revenue on a “cash” basis.

E. Applicability

This policy applies to all state agencies.

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FIN 11 – Receivables (Federal Grant)
Policies & Procedures FIN 11.6

FIN 11.6 Revenue Source Codes

A. MAP Standard

To ensure that Cash Receipts are properly recorded, Cash Receipts must be properly identified and
classified in the accounting records.

B. Purpose

This policy establishes the requirement that state agencies use only existing SHARE revenue source
codes for recording revenues.

C. Authority

NMSA 1978, §6-5-2

D. Policy

1. State agencies must use the revenue source codes established by FCD in the Account Chartfield
to record revenue in SHARE.

2. State agencies may request in writing additional revenue source codes from the FCD Director.

3. All revenue source codes added to SHARE must be approved in writing by the FCD Director.

E. Applicability

This policy applies to all state agencies.

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FIN 11 – Receivables (Federal Grant)
Policies & Procedures FIN 11.7

FIN 11.7 Use of Deposit Slip or Journal Entry to Recognize Revenue

A. Statement

This procedure addresses the methods that state agencies should use to record revenue in SHARE.

B. Procedures – Deposit Receipts to Recognize Revenue

State Agency

1. The procedures for receipting monies and depositing with the State Fiscal Agent Bank should be
followed.

2. Enter a revenue source code on the deposit slip or confirmation of electronic deposit when
depositing monies to your account. Enter the revenue string for the deposits that were uploaded
into the SHARE Accounts Receivable Module. Revenue source codes require a valid fund,
department value, budget reference, and class fields. (Affiliate and Fund Affiliate are required on
certain revenue codes. Check with the CAFR unit for updated list).

3. Complete and Budget Check deposit. Make sure the deposit is in valid status in SHARE.

State Treasurer

4. Reconcile bank transaction to system transactions.

C. Procedures – Journal Entry to Recognize Revenue

State Agency

1. Prepare a Journal Entry to record as a revenue receipts or accruals previously recorded as

deferred revenue.

2. Approve the journal entry online and select Submit Journal.

3. Send the completed Journal Entry to FCD for processing.

FCD

4. Process the Journal Entry received from the state agency and return a posted copy of the
document to the state agency.

State Agency

5. Recognize revenue and the related accounts receivable when the revenue is earned.

a. Accrue revenue through a Journal Entry that debits the appropriate receivable and credits the
appropriate revenue account. Send the completed Journal Entry to FCD for processing.

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Policies & Procedures FIN 11.7

b. Reverse the accrued accounts receivable when the related cash is received, by entering the
appropriate receivable account code and corresponding accounting string when entering the
deposit. .

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FIN 11 – Receivables (Federal Grant)
Business Process AR-01

AR-01 Accounts Receivable – Grant Cash Deposits (Overview)

Financial Control
Agency State Treasurers Office Division (FCD)
(STO)
1 2
Create Grantor Creates
Start Accounts and
Receivable into Submits
SHARE Payment

Electronic
No Yes
Deposit?

3
4
Electronic
Agency
deposit
Receives
Received at
Customer
Bank
Payment
Note:
Deposi t ID i n SHARE is auto
Process generated. Payment ID i ns
5 SHARE = Deposi t Number on
A: Authorize
3-part paper D: Verify I Bank Deposit Ticket (lower left
deposit ticket hand corner)Deposi t ID in
SHARE =
prepared Deposi t Number on Bank
M – AR01 / 1 Deposi t Ticket (lower left hand
corner)

12
6 Process
F: Reconcile SHARE creates
Deposit Ticket and cash/checks are 8 deposit journal
taken to the bank within 24hrs of Bank Activity is loaded entries via journal
receipt. Cash/Money orders processed into SHARE Accounts generator
through electronic deposit with 24hrs Receivable Module via
Accounts Receivable
Process Load
7 F: Reconcile
Validated deposit 13
slip received from Yes Post journal entries
Bank to record CASH
10
STO reconciles M – AR01 / 4
Deposit ticket retained by
SHARE deposits to
the Agency for research,
bank deposit
audit and posting
purposes
To General
Ledger
To Are budget
CM-01.2 checks
9
M – AR01 / 2 comfirmed?
Accounting entries
entered,
completed, and
Process M – AR01 / 3
A: Authorize budget checked A – AR01 / 14
No
B: Record
D: Verify I

M – AR01 / 5 11
Deposit is posted to
Process
Agencies general
A: Authorize M – AR01 / 6
B: Record operating fund by default
E: Verify S
M – AR01 / 7 to acct #290900 to be
researched by Agency
M – AR01 / 8

M – AR01 / 9

M – AR01 / 10 End

End M – AR01 / 11

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FIN 11 – Receivables (Federal Grant)
Business Process AR-01

AR-01 Accounts Receivable – Grant Cash Deposits (Overview) (Control Points)

The Agency prepares the 3-part paper deposit ticket that is deposited at the bank or is electronically deposited. Bank
M – AR01 / 1
Activity is loaded into SHARE and reviewed and approved by a separate individual.

M – AR01 / 2 Agency validates the deposit slip received from Bank within the 3-part paper bank deposit-ticket.

Agency must complete and budget check deposits. Deposits are complete when they are in valid status.
M – AR01 / 3

The State Treasurer's Office verifies all reconciled transactions are marked as complete and budget checked the same
M – AR01 / 4
day.
Accounts Receivable is reviewed by the Agency Supervisor on at least a monthly basis to validate that Agencies
recognize and accrue for revenues using either the accrual or modified accrual basis, depending on the fund type.
M – AR01 / 5
Agencies that are unable to properly account for accounts receivable may be required by DFA/FCD to account for all
revenue on a “cash” basis.

Accounts Receivable is reviewed by the Agency Supervisor on at least a monthly basis to validate that Agencies
M – AR01 / 6 accurately classify and record Cash Receipts so as to correctly recognize the economic event that has taken place: A
receipt of revenue, A reduction of Accounts Receivable, A refund of Expenditures.

Only authorized individuals with the Agencies have specific legal authority to generate revenue or enter into agreements
M – AR01 / 7
that will generate revenue.

M – AR01 / 8 All receivables are properly managed with detailed accounts receivable ledgers maintained and Agencies have an
accounts receivable collections process in place.
All revenue generated is credited to the proper fund or is allocated (credited) to the State General Fund. Accounts
Receivable is reviewed by an Agency Supervisor on at least a monthly basis to validate that revenue is properly recorded
M – AR01 / 9
as earned or deferred. Agencies properly record cash received before it is earned as deferred revenue by increasing
(credit) the Deferred Revenue liability account and increasing (debit) the applicable cash account.

M – AR01 / 10 All revenue source codes added to SHARE are approved in writing by the DFA/FCD Director.

M – AR01 / 11 Only authorized individuals with proper segregation of duties in place can apply cash to customer accounts

Bank statements are reconciled by the Cash Control Bureau to cash accounts monthly. Discrepancies are researched,
corrected, and adjusted by the Agency or STO with assistance from the Cash Control Bureau by preparing a deposit or
M – AR01 / 12
journal entry to ensure that all cash receipts are recorded in the proper period. The reconciliation is reviewed and
approved by a separate individual.

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FIN 12 – Billing (Federal Grant)
FIN 12

FIN 12 – Billing (Federal Grants)

Policies and Procedures

Business Processes

Beginning of Document

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 12 – Billing (Federal Grant)
Policies & Procedures FIN 12.1

FIN 12.1 Billing and Draw Creation

A. MAP Standard

To ensure that state-provided resources related to the provision of goods or services are properly
recognized and recorded.

B. Purpose

To establish requirements for the recognition and recording of sales transactions related to the state’s
provision of goods or services to parties outside of the state or to parties (agencies) within the state.

C. Authority

NMSA 1978, §6-5-2

Rule 2.20.5 NMAC

D. Policy

1. Transactions occurring because of goods and/or services being provided by a state agency must
be timely recognized. These goods or services may be in the form of grant awards, contracts,
internal services (insurance, transportation, etc.) and/or unit sales (i.e., goods, including asset
transfers). These sales transactions are to be recognized by billing the customer upon the initial
transfer of goods or services from a state agency to another state agency or outside party.

2. Recognition of the sales transaction is to be recorded through the payment voucher process.
Requesting the federal funds and entering the deposit generates the appropriate accounting entries
and provides the basis for the recognition and recording of the revenue and for the transfer of
asset(s) related to the transaction.

3. Reconciliation of the sales transactions is to be conducted monthly by comparing the detail of

invoices, which have been generated to the accounts receivable aging schedule. If a state agency
is fully utilizing the SHARE Grants Module, it is to reconcile the billing originating from sales
transactions and recorded within the accounts receivable subsidiary schedule to the control
account for accounts receivable within the general ledger in SHARE. If a state agency is not
utilizing the SHARE Grants Module, reconciliation of the billing, accounts receivable and receipt
of monies shall be completed via processes approved by the Federal cognizant agency.

4. Collection of outstanding accounts receivable is the responsibility of the originating agency.

E. Applicability

This policy applies to all state agencies providing goods and/or services.

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FIN 12 – Billing (Federal Grant)
Policies & Procedures FIN 12.1

F. Procedures

Agency

1. Complete cost allocation on a monthly basis using a series of queries from SHARE. The queries
isolate expenditures by cost pool and apply appropriate statistics.

2. Use the cost sheets produced each month as the basis for “billing” or drawing federal funds.

3. Enter the draw request in the Federal System (FED System).

4. Record the request of federal funds as a deposit in the SHARE AR module.

5. Perform monthly reconciliation of federal share of expenditures to federal revenue or federal

accounts receivable.

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FIN 12 – Billing (Federal Grant)
Business Process BI-01

BI-01 Billing – Non-DOT Billing and Draw Creation

Agency

From Run Contracts-

SHARE generates a Analyze the Billing
PC-01 Billing Interface
Billing Worksheet Worksheet
(from Contracts)
Diagnose & fix
problems with
Incorrect Invoices
A – BI01 / 1 A – BI01 / 2

Process
D: Verify I
E: Verify S

SHARE performs
Approves Billing
the billing Billing
Worksheet into Yes No
“Finalization” Worksheet ok?
SHARE
(run from Billing)

M – BI01/ 3

Process A – BI01 / 4
A: Authorize

SHARE
automatically runs Finalized Invoice Update Contracts &
Journal Generator Billing Cross-
and Reference
Update G/L
Note: Invoice finalized; GL,
Projects, Contracts and Billing
updated; fund draw reques t
initiated

Enter Draw request

in Federal Systems End
To
(FED System)
GM-05

Ack-Nak File
Received & Payment
Amounts

Process
B: Record A – BI01 / 5

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FIN 12 – Billing (Federal Grant)
Business Process BI-01

BI-01 Billing – Non-DOT Billing and Draw Creation (Control Points)

A – BI01 / 1 SHARE restricts access to the creation and approval of grant billing transactions to authorized personnel.

Process procedures (Billing Creation Overview) are being utilized by agencies to achieve completeness of documentation
A – BI01 / 2 and mitigate inconsistencies in reporting.

Billing personnel (from the Agency) is responsible to verify if the billing worksheet is in accordance with General
M – BI01 / 3 Ledger. If the billing worksheet is not in accordance with General Ledger, the agency delete and correct the incorrect
Invoices from the Billing Worksheet.

A – BI01 / 4 Billing Worksheet must be authorized in SHARE. SHARE does not allow the same person to verify and approve the
Billing Worksheet in the system.

A – BI01 / 5 System access is limited to only authorized persons to enter Draw request in Federal Systems (FED System).

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FIN 13 – External Systems
FIN 13

FIN 13 – External Systems

Policies and Procedures

Business Processes

Beginning of Document

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 13 – External Systems
Policies & Procedures FIN 13.1

FIN 13.1 External Systems

A. MAP Standard

To ensure the complete, accurate and timely recording of accounting transactions originating from a
subsidiary system into SHARE, the central reporting system.

B. Purpose

This policy establishes requirements of agencies who record financial transactions, which originate
externally to SHARE.

C. Authority

NMSA 1978, §6-5-2.1 (A-B), (E)

Rule 2.20.5.8.C(7) NMAC

D. Policy

1. Agencies must record financial transactions occurring within a subsidiary system through an
appropriate interface to SHARE. These transactions may be recorded through one of the
following interface types:

a. Warrants Issued in a Third-Party System Interface

b. Payment Load Interface

c. Third-Party Deposits to the Fiscal Agent Bank Interface

d. All Transactions Outbound Interface

e. Flat File Journal Import

f. Journal Upload

2. State Agencies must reconcile the total of financial transactions recorded from their subsidiary
system through to the interface point within SHARE.

3. The Financial Control Division shall approve the interface transaction upon validation that the
subsidiary system detail equates to the control balance total.

E. Applicability

This policy applies to all State Agencies processing accounting transactions originating externally to
SHARE.

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FIN 13 – External Systems
Policies & Procedures FIN 13.2

FIN 13.2 SHARE Interface Systems

There are approximately 124 agencies operating within the State of New Mexico for which some use
subsystems as a form of processing financial information, which interfaces with SHARE. The
following chart lists the type of current subsystems available for interface with SHARE:

Interface Type

Warrants Issued in a 3rd Party System Interface – warrants generated by an agency using a
1 third-party system, which interfaces into SHARE. Payees are not on the SHARE vendor file.
Interface is received in the form of a flat file journal import.
Payment Load Interface – used by SHARE to generate direct payments to payees not on the
SHARE vendor file (i.e. distribution payment vouchers) without having to create actual
2 payment vouchers. This interface is appropriate where multiple payees not in the SHARE
vendor file are being paid under an identical accounting string (account, fund, etc.). Interface
is received in the form of a flat file journal import.
3 Third-Party Deposits to the Fiscal Agent Bank Interface – NOT IN USE
All Transactions Outbound Interface – an outbound interface that provides data from
SHARE relating to the General Ledger, Accounts Payable, Purchasing, Grants, Deposits, and
4
warrant issuance. This is the mechanism, which provides REPORTS of activity within the
modules.
Flat File Journal Import – interfacing journal entries from a third-party system into SHARE
5 via the journal entry import method. Flat file is provided in Excel format and is imported
without requiring macro execution.
Journal Upload – interfacing journal entries from a third-party system into SHARE via the
6 journal upload method. Upload is provided in Excel format and requires macro execution to
upload.

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FIN 13 – External Systems
Policies & Procedures FIN 13.3

FIN 13.3 State Agencies and Related Subsystems

Currently, the following 14 agencies send financial transactions to interface with SHARE through
either Payment Load Interface or Warrants Issued in a Third Party System Interface:

Agency Subsystem
Administrative Office of the Courts JURY+
Children, Youth and Families Department FACTS
EPICS
Commission for the Blind Aware
Educational Retirement Board Browser
Department of Finance and Administration Local Government Subsidiary System (Grants)
Department of Game and Fish License Refunds
General Services Department RMIS
ERISA
Human Services Department Child Support Enforcement
Medicaid
LIHEAP
EBT – JP Morgan
Legacy and Aspen Systems
Department of Workforce Solutions UFACTS
Public Employees Retirement Association RIO
(PERA)
Taxation and Revenue Department Gentax
Tapestry
Wager
Division of Vocational Rehabilitation (DVR) DDS
Aware
Aging & Long Term Services APSS (Adult Protective Services System)
STO/SIC QED

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FIN 13 – External Systems
Business Process EX-01

EX-01 Payment Load & Related General Ledger Interfaces

Agency Financial Control Financial Control Division
Division (FCD) (FCD) Financial Management
Operations Section

Upload General Ledger file FCD FMS processes journal

rd
into SHARE upon receipt of Process entry in SHARE (including
Export data from 3 Party approved Payment Load A: validation of accounts and
System(s) Submission Form Authorize proper impact on cash) and
1 6 D: Verify I signs Payment Load
Submission Form
8
Prepare Payment Load and
accompanying General Ledger
interface files Forward Payment Load
2 Submission Form to FMS for
review and approval
7
Complete Payment Load
Submission Form attesting to FMS forwards approved
validity of payments. Form Payment Load
signed by authorized agency Submission Form to
approver. FCD Operations
3 authorizing the
Process A – EX01/ 1
uploading of the
A: payment load file. Process
Authorize 9 A: Authorize
Upon receipt of FMS approved E: Verify S
D: Verify I
Upload interface files to Payment Load Submission Form,
FTP Site 4 upload the payment load file into
SHARE
10

Fax Approved Payment Load FMS reviews and

Submission Form to FCD at reconciles warrants per
505-827-1219 the Payment Load
5 Warrant Register to the Process
journal entry F: Reconcile
14
Process
Obtain Warrants from FMS B: Record
Distribution Center. Both FMS
and Agency sign
acknowledging receipt of
warrants Using Pay Cycle, process and print
17 Payment Load B Warrants. Send
confirmation to agency of file being Payment load warrants
loaded reconciled to General Ledger
M – EX01 / 2 11 15

Agency matches warrant to Prepare and transmit Positive Pay file to

outstanding vouchers. Fiscal Agent Bank. Complete
Discrepancies or missing transmission log. Confirm receipt of
warrants positive pay file by bank. Confirm positive pay file
18 12 16
Yes
Process
F:
No Reconcile Note: the loading an d payment process is
Positive Pay file received by Fiscal the same for 3rd party a gency payments,
Agent Bank however, the Jes are reconciled to the bank
To 13 acti vity afte r the payments are made.
Warrants sent to Age nci es reconcile the payme nts with th e
AP-07a &
Vendors ban k prior to sub mitting info rmation to FCD
b
19 for a pproval and posting

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FIN 13 – External Systems
Business Process EX-01

EX-01 Payment Load & Related General Ledger Interfaces (Control Points)
FCD uploads the Payment load interface into SHARE daily to record transactions timely, completely, and accurately §6-
A – EX01 / 1
5-2-1(N).

M – EX01 / 2 Originating Agency reconciles upload to original file.

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FIN 15 – Time and Labor
FIN 15

FIN 15 – Time and Labor

Payroll is documented in the HR section.

Time and Labor is documented in the HR section.

Beginning of Document

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FIN 16 – General Accounting Practices
FIN 16

FIN 16 – General Accounting Practices

Policies and Procedures

Beginning of Document

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FIN 16 – General Accounting Practices
Policies & Procedures FIN 16.1

FIN 16.1 Error Detection and Correction

A. MAP Standard

To ensure accuracy, state agencies should establish internal controls that include a requirement that
documents be reviewed and/or approved on-line prior to the documents being sent to Financial
Control Division (FCD).

B. Purpose

This policy establishes the requirement that state agencies adequately review the information on
processing documents (and related supporting documentation) to ensure that the documents do not
contain errors when submitted to FCD unless those errors require an override by FCD.

C. Authority

NMSA 1978, §6-10-2

D. Policy

1. State agencies must implement internal control procedures that will detect errors on documents
prior to submitting the documents for processing.

2. To safeguard assets, state agencies should establish procedures that require error corrections, to
be scrutinized by a person independent of the person who made the error.

3. Documents received at FCD that contain errors of commission or omission which make it
impossible, illegal, or otherwise improper to process them through SHARE shall be returned to
the originating state agency.

4. FCD may reject a document after the document has been entered into SHARE.

E. Applicability

This policy applies to all state agencies that process documents through SHARE.

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FIN 16 – General Accounting Practices
Policies & Procedures FIN 16.2

FIN 16.2 Verifying SHARE Reports

A. MAP Standard

To ensure that all transactions are recognized and recorded, all accounting reports must be verified for
accuracy and completeness.

B. Purpose

This policy establishes the requirement that state agencies 1) Verify monthly that all transactions have
been posted in SHARE, and 2) prepare any reclassification or adjusting entries as soon as they are
known.

C. Authority

NMSA 1978, §6-5-2

D. Policy

1. State agencies must verify all SHARE reports monthly to their internal accounting system by
performing the following steps:

a. Verify the accuracy of the trial balance

b. Validate the allotments
c. Validate the deposits
d. Validate the expenditures
e. Validate the operating transfers
f. Validate payroll entries
g. Validate payroll expenditures and payroll liabilities
h. Resolve unposted journal entries
i. Validate collected revenue
j. Reconcile budgeted appropriations and revenue against the general ledger

Note: The process is further defined in the DFA website: Validating the Trial Balance Manual -
07/30/09

E. Applicability

This policy applies to all state agencies.

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FIN 16 – General Accounting Practices
Policies & Procedures FIN 16.3

FIN 16.3 Document Numbering Conventions

A. MAP Standard

To ensure completeness, state agencies must use document-numbering conventions that allow the
population of documents to be verified.

B. Purpose

This policy establishes the requirement that all state agencies are required to use document-
numbering conventions when processing documents or forms through SHARE.

C. Authority

NMSA 1978, §6-5-2

D. Policy

1. State agencies that process documents through SHARE must adhere to the numbering
conventions for the following document types:

Puchase Orders
Payment Vouchers
Journal Entries
Journal Vouchers
Operating Transfers
Cash Receipts
Budget Documents
Warrant Cancellation Documents

E. Applicability

This policy applies to all state agencies that process documents through SHARE.

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Policies & Procedures FIN 16.4

FIN 16.4 Unique Document Numbers

A. MAP Standard

To ensure accurate document tracking and control, state agencies must assign unique document
numbers to all documents.

B. Purpose

This policy establishes the requirement that state agencies follow document-numbering conventions
to track and identify SHARE documents.

C. Authority

NMSA 1978, §6-5-2

D. Policy

1. All document types processed through SHARE must have a unique document number clearly
marked on the form.

2. All document numbers assigned by state agencies must be 11 characters except for journal
entries, which require 10.

3. Document numbers must be unique within each state agency for each document type by fiscal
year.

E. Applicability

This policy applies to all state agencies that process documents through SHARE.

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FIN 16 – General Accounting Practices
Policies & Procedures FIN 16.5

FIN 16.5 Documents Rejected Prior to SHARE Input

A. Statement

This procedure identifies the method for correcting documents that are rejected prior to input to
SHARE.

B. Procedures

State Agency

1. Send the document and all required supporting documentation to FCD.

FCD

2. Manually pre-audit the document for proper authorization; completeness and correctness of data;
and appropriateness of supporting documentation.

3. If there are errors or if the supporting documentation requires further justification or explanation,
return the document to the originating state agency for correction. Use the Document Rejection
Transmittal form to identify the error(s) and needed corrections.

State Agency

4. If a document is returned by FCD, make all necessary corrections and resubmit the document
along with the Document Rejection Transmittal form within 5 business days.

5. If the State Agency is notified by email from FCD regarding issues, the agency must correct all
errors and respond back electronically within 3 business days.

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Policies & Procedures FIN 16.6

FIN 16.6 Documents Rejected While on Hold in SHARE

A. Statement

This procedure identifies the time limits for state agencies to correct errors and resubmit documents
already entered into SHARE.

B. Procedures

State Agency

1. Send the document and all required supporting documentation to FCD.

FCD

2. Manually pre-audit the document for proper authorization; completeness and correctness of data;
and appropriateness of supporting documentation.

3. If the document and supporting documentation are without errors, retrieve the transaction on-line
in SHARE.

4. Compare the documents to the information on-line and verify the data is correct in SHARE. If
the information in SHARE does not match the data on the document, reject the document to the
agency for correction.

5. If the information in SHARE matches the data on the document, post the document in SHARE.
If the document does not post because it fails the SHARE edits, return the document to the
originating state agency. Use the Document Rejection Transmittal form to identify the error(s)
and needed correction(s). Once corrected, the state agency may resubmit the document to FCD.
A new Transmittal form is not required.

State Agency

6. If a document is returned by FCD, make all the necessary corrections and resubmit the document
along with the colored Document Rejection Transmittal form.

FCD

7. A review of the system-generated transactions (i.e. Payroll, A/P, and Direct Journals) will be
performed by the FCD Support Unit prior to the closing of each month, and may be deleted if
necessary.

State Agency

8. Any deleted document that is resubmitted will be subjected to the complete pre-audit, entry, and
approval process, as if it were a new document.

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Policies & Procedures FIN 16.7

FIN 16.7 Authorized Corrections

A. Statement

This procedure identifies that documents submitted to FCD are processed through SHARE as
intended by the submitting state agency.

B. Procedures

FCD Director, Deputy Director, Audit Bureau Supervisors, CAFR Unit Manager or Financial
Management Section Manager:

1. Correct information under the following circumstances:

a. The alternate vendor letter of a vendor code needs to be added or changed so that the vendor
code being used reflects the same data as the data on the Payment Voucher or Purchase
Order.

b. Dollar amounts shown on Payment Vouchers, Purchase Orders, and Warrant Cancellations
are in error by one dollar or less.

2. Initial any additions or changes.

3. Any other changes may be made only if they are requested by the fiscal officer of the State
agency that submitted the document and approved (initialed) by the FCD Director or Deputy
Director.

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FIN 16 – General Accounting Practices
Policies & Procedures FIN 16.8

FIN 16.8 Document Numbering Procedures

A. Statement

This procedure addresses the document numbering convention that all state agencies that process
documents in SHARE must follow.

B. Procedure

State Agency

1. Follow the document numbering conventions when sending documents or forms to FCD for
processing.

A. State agencies have two options for numbering documents. The preferred option is using
SHARE’s automatic numbering functionality. SHARE will automatically assign a unique
eight-digit sequential document number for vouchers and a unique ten-digit sequential
document number for requisitions, purchase orders, and journal entries. The second option
allows a state agency to manually assign an eight-digit number to a voucher and a ten-digit
number for requisitions, purchase orders, journal entries, and journal entries. In the second
option agencies are responsible for maintaining an internal document numbering log.

B. Only alphanumeric characters and the following special characters, * / - $ %, may be used in
the document ID (e.g., purchase orders, journal entries, or vouchers). While PeopleSoft will
allow any character, the barcode technology used by the state imaging system will not
accommodate anything other than alphanumeric or the handful of special characters shown
above.

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FIN 16 – General Accounting Practices
Policies & Procedures FIN 16.11

FIN 16.9 Responsibility for Accounting Function – Chief Financial Officer Delegation
Requirements

A. MAP Standard

To establish accountability for the accounting function by establishing, at the state agency level,
standards for the proper recording, summarizing, and reporting of financial transactions and
designating one state employee at each state agency to be responsible for maintaining those standards.

B. Purpose

This policy establishes the requirements that all state agency’s Chief Financial Officers (CFO) must
comply with the CFO delegation approval by the Financial Control Division (FCD).

C. Authority

NMSA 1978, §6-5-2

Rule 2.20.5 NMAC

D. Policy

1. Statute requires that the administrative head of each agency ensure that the model accounting
practices, established by FCD, are followed. In order to ensure that model accounting practices
are followed, it is incumbent upon the agency head to carry out the responsibilities of the CFO,
outlined in Subsection C of 2.20.5.8 NMAC.

2. An agency head may assign the responsibilities outlined in Subsection C of 2.20.5.8 NMAC to
one state employee within the agency that has the educational background, knowledge, and
experience necessary to supervise, monitor, and control the state agency’s accounting function.

3. The delegation must be in writing and signed by the agency head for a specific fiscal year, and
must be approved by FCD.

a. If the state employee designated as CFO leaves the agency during the fiscal year, the CFO
responsibilities revert back to the agency head until someone else is designated as CFO and
approved by FCD.

4. It is the responsibility of the CFO to ensure that:

a. An internal control structure exists at the state agency and is functioning properly.

b. All transactions are recorded daily in the agency’s accounting records.

c. All transactions are properly classified in the agency’s records.

d. Cash account records are reconciled timely each month to FCD’s reports and to the state
treasurer’s reports.

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e. All transactions comply with federal and state law.

f. All expenditures have a public benefit or purpose, are necessary, and are consistent with the
appropriation, the expenditure authority from the legislature and comply with NMSA 1978,
§6-5-3, as amended.

g. All accounting systems, including subsidiary systems, are recording transactions timely,
completely, and accurately.

h. All payments to vendors are accurate, timely and the state agency has certified they are for
services rendered or goods received in accordance with NMSA 1978, §13-1-158, as
amended.

i. All information requested by FCD from the state agency is provided timely and accurately.

j. All reporting of financial information must be timely, complete and accurate, to the state
agency’s management and to oversight agencies and entities.

k. The state agency’s annual financial statement audit is completed by the deadline established
by the state auditor.

l. A budgetary control system, approved by the Department of Finance and Administration’s

State Budget Division, is in place and functioning.

5. Certain contingencies will need to be complied with or completed by the CFO upon approval:

a. The CFO is to adhere to the responsibilities outlined in Rule 2.20.5 NMAC Responsibility for
Accounting Function;

b. The CFO is to review the policies and procedures outlined in the State of New Mexico
Manual of Model Accounting Practices (MAPs) or other future publications;

c. The CFO is to follow the Year-End Deadlines;

d. The CFO is to disseminate FCD e-mail notices to agency staff as appropriate;

e. The CFO is to complete continuing education each year as determined by FCD:

- For CFO’s who have an accounting certification (i.e. Certified Governmental

Financial Manager, Certified Public Accountant) that requires annual or biennial
continuing education, provide FCD with completed course certifications.

- CFO’s who do not have an accounting certification will be required to complete

continuing education as determined by FCD. Each year, FCD will notify the CFO’s
the qualifying courses and the deadline for completion. Once the CFO has completed
the required continuing education, submit the completion certification to FCD.

f. Or any other contingencies as required by the State Controller.

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6. It is the sole decision of the State Controller to approve the agency’s submission of the CFO
designation at least annually.

7. Any non-compliance with the above may result in FCD revoking the CFO designation.

8. If at any time during the fiscal year, the CFO will be out of the office and cannot sign applicable
documents that need to be processed, the agency shall submit a letter to FCD indicating the
existing CFO will be out of the office and an alternate individual will be the interim CFO. The
letter should state the timeframe the CFO will be out, in addition to the contact information of the
alternate CFO. The letter must be signed by the agency head and submitted to FCD prior to the
CFO’s absence.

a. If no communication is received, the CFO responsibilities revert back to the agency head.

9. The Signature/Transaction Authorization Form is signed by the Delegating Authority; who is the
agency head. As delegating authority, the agency head is giving the CFO the responsibility of
ensuring the accounting transactions are appropriate and necessary. The CFO then delegates the
authority to approve specific financial documents to appropriate employees within the agency by
submitting the Signature/Transaction Authorization Form to FCD for approval. The form
indicates the individuals being given the authority to sign specific documents submitted to FCD
for approval and processing.

a. To comply with FIN 3.1 Interagency Transactions, the CFO must be authorized to sign
operating transfers and journal entries.

b. Any and all changes to employees authorized to sign financial documents must be
communicated to FCD with a new Signature/Transaction Authorization Form immediately.

i. A new form must be filled out and signed by ALL employees authorized to sign financial
document

ii. No forms that are for changes ONLY, will not be accepted.

c. If an approved CFO leaves the agency or the position, FCD must be notified immediately; the
agency head becomes CFO and a new Signature/Transaction Authorization Form must be
submitted immediately; as the agency head now becomes responsible for authorizing
employees to sign financial documents.

10. FCD will allow agencies to provide an alternative point of contact for Vouchers, Purchase
Orders, Operating Transfers/Journal Entries, Warrant Cancellations, and Payroll processed
through FCD. The CFO is still the agency’s point of contact for all communications from FCD;
however, in the event the CFO can’t be contacted, each agency will be allowed to designate one
(1) person for each document type. Ultimately, the CFO is still responsible for the agency’s
financial activities as outlined in Subsection C of 2.20.5.8 NMAC.

a. When the agency needs to contact DFA, they should begin with the appropriate
managers/supervisors of the bureau/unit first, then escalate to upper management when no
response if reciprocated.

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E. Applicability

This policy applies to all state agencies.

Rule 2.20.5 NMAC indicates that agency heads, unless duties are otherwise designated to an
individual, are the CFO for their agency. As such, an agency head who also act as CFO will not
rejected for not complying with Sections D 5(e) and D 5(f); however, due to the complex nature of
governmental accounting and state laws, it is strongly recommended that agency heads voluntarily
adhere to the training requirements in Sections D 5(e) and D 5(f).
.

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FIN 16 – General Accounting Practices
Policies & Procedures FIN 16.12

FIN 16.10 Delegating Chief Financial Officer Duties

A. Statement

The following procedures should be followed when an agency head is designating someone other
than themselves as Chief Financial Officer (CFO) for the fiscal year.

B. Authority

NMSA 1978, §6-5-2

Rule 2.20.5 NMAC

C. Procedures

State Agency

1. Prepare a letter requesting approval for the delegation of the CFO duties to a state employee
within the agency that has the educational background, knowledge, and experience necessary to
supervise, monitor, and control the state agency’s accounting functions.

a. The letter must be on agency letterhead and signed by the agency head.

b. The letter must contain contact information of the potential delegated state employee.

c. A copy of the potential delegated state employee’s resume’ must accompany the letter.

d. The request must be submitted either

i. By the deadline set in the year end closing instructions for the new fiscal year, or

ii. As soon as a new individual is selected to replace a previously approved individual, if the
prior approved CFO leaves either the agency or the position.

iii. If an agency does not submit a request, by default the agency head is the CFO until a
future request is approved.

FCD

2. Review the request and resume’ to determine if the potential delegated individual is qualified to
be appointed as CFO.

3. Request input from DFA Bureaus regarding the potential delegated state employee.

4. Review all information regarding the potential delegated state employee with the State Controller
for a decision.

5. Prepare a letter by the State Controller with the final decision and send the letter.

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a. If an approved CFO leaves the agency or the position, FCD must be notified in writing
immediately; the CFO duties revert back to the agency head.

b. If approved, the CFO delegation is effective for the entire fiscal year unless, the individual
leaves the agency and/or position or the delegation is revoked by FCD.

i. Approval of the delegation may be contingent due to the following reasons:

- FIN 16.9 Responsibility for Accounting Function – Chief Financial Officer

Delegation Requirements D.5.

- Temporary approval for new delegations (state employee is either new to the State or
to the position)

c. If the delegation is not approved, the agency head is the CFO.

State Agency

6. Contingent Approval

a. Remedy any deficiencies noted in the approval letter.

b. Complete any training as necessary.

c. Comply with all requirements established by oversight agencies.

7. Complete the FCD Signature/Transaction Authorization Form. While the form is signed by the
agency Head, the CFO is authorizing the individual(s) to have signature authority on applicable
financial documents indicated on the form. The CFO is ultimately responsible for the
transactions this individual(s) approves.

a. A new form is required to be filled out when any staff changes occur and/or when a new CFO
is approved.

b. In addition, all previously authorized signers will need to be re-approved each time there is a
change in the staff, CFO and/or agency head.

8. Review and approve all appropriate documents that only the CFO is required to sign.

9. Submit the Agency Point of Contact Form. The CFO is allowed to designate one (1) employee
for Payment Vouchers, Purchase Orders, Operating Transfers/Journal Entries, Warrant
Cancellations, and Payroll processed through FCD.

10. Submit a new delegation letter if approved state employee leaves the agency or the position.
During the transition, the CFO duties revert back to the agency head only.

11. Submit a letter to FCD indicating an alternate CFO when the approved CFO will be unavailable
to sign documents that need to be processed by FCD. The letter should indicate the timeframe

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the CFO is out of the office and the alternate CFO’s name and contact information. The letter
must be signed by the agency head and submitted to FCD prior to the CFO’s absence.

D. Applicability

This policy applies to all state agencies.

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Policies & Procedures FIN 16.9

FIN 16.11 Agency Noncompliance with DFA Requirements

A. MAP Standard

To establish accountability for the accounting function by establishing disciplinary actions for non-
compliance with required processing procedures and established deadlines as provided by the
Department of Finance and Administration.

B. Purpose

This policy establishes the requirements that all state agencies’ Chief Financial Officers (CFO) must
comply with the CFO delegation approval by the Financial Control Division (FCD).

C. Authority

NMSA 1978, §6-5-2

Rule 2.20.5 NMAC

D. Policy

1. Statute requires state agencies to comply with the Model of Accounting Practices established by
FCD and to implement internal accounting controls designed to prevent accounting errors and
violations of state and federal laws and rules. In addition, state agencies shall implement controls
to prevent the submission of processing documents that contain errors or that for a purpose not
authorized by law.

2. With the approval of the State Controller, an agency head can delegated the CFO duties to a state
employee with the appropriate and necessary experience and knowledge. Upon approval of the
delegation, the individual takes on the responsibilities as noted in item 1 of this section.

3. If an agency CFO is unable to comply with the CFO responsibilities, then the State Controller can
revoke the CFO designation for the agency and the CFO duties default back to the agency head.

a. On a monthly basis, DFA staff will meet to review and discuss agency performance and
issues with agency’s compliance to oversight rules, regulations, and laws.

c. DFA will use list items in section 5 below to track agency performance.

4. If the CFO is deemed to be noncompliant, then the following will occur with written notification
detailing concerns and offenses sent to agency head:

a. First time a pattern of non-compliance of responsibilities as outlined in FIN 16.9

Responsibility for Accounting Function – Chief Financial Officer Delegation Requirements,
will be a written warning and may additional requirements such as one-on-one training or
monitoring

b. Second notice will be CFO delegation suspended for 30 days

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c. Third notice will be CFO delegation suspended for 90 days

d. Fourth notice, CFO delegation will be revoked for the remaining of the fiscal year and up to
the following fiscal year.

e. Other actions as deemed appropriate, i.e. noncompliance such as fraud or willful

disobedience warrants removal of CFO delegation immediately.

5. The following expectations will be used in determining a CFO’s compliance with FIN 16.11
Agency Noncompliance with DFA Requirements:

a. FCD - CAFR Unit

i. Noncompliance with Monthly Closing Deadlines, or
ii. Noncompliance with Year-End Deadlines, or
iii. Noncompliance with CAFR Specific Deadlines, or
iv. Noncompliance with attending required CAFR Trainings as scheduled throughout the
fiscal year
iv. Noncompliance with CAFR Requests for information and/or corrections within 3
working days, or
v. Numerous (more than 3 per month or continuous pattern of same rejection each month
for more than 2 months) rejections for not have appropriate supporting documentation or
completeness and accuracy of the entry

b. Financial Management Section & Vendor Relations

i. Numerous (more than 3 per month or continuous pattern of same rejection each month
for more than 2 months) rejections on:
- Requests to Pay Year Bills, or
- Warrant Cancellations
- W-9 submissions
ii. Noncompliance with processing requirements on:
- Submission of reissue payment voucher or CFR journal entry on ACH Returns
- Submission of draw down documents or prior year accounts receivable balances on
Requests to Pay Prior Year Bills Capital Outlay/Multiple Year Appropriations
- Submission of signed Warrant Registers within 5 business days
- Vendor Relations Point of Contact (POC) requirements as documented on the State
of New Mexico Coversheet
iii. Noncompliance with attending required training as scheduled throughout the fiscal year
iv. Noncompliance with deadlines established by FCD

c. State Budget Division

i. General
- Requests for information/fire drills or corrections responded to by deadline or (if
none) in a timely manner

ii. BARs
- Submitted before BAR moratorium and FY closing deadlines

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- All necessary copies included

- BAR form correctly identifies funds, revenues, expenditures, statutory authority and
is otherwise free of errors
- SHARE reports included to prove budget availability for transfer BARs
- Proof of source of funds included for budget increase BARs
- Sufficient descriptive justification included in narrative

iii. HR Actions
- Accurate, complete projections included
- Sufficient justification for action included

iv. Budget Projections

- Budget projections submitted for each BAR and Job Action
- Budget projections correctly utilize actual expenditures based on SHARE reports
- Budget projections show evidence of thoughtful analysis of projected expenditures
through end of fiscal year

v. Budget Requests
- Submitted by statutory deadline including BRS files
- All required copies submitted
- Contains all required documents
- Submissions are in line with DFA-issued budget guidelines and, for Cabinet
agencies, pre-established directives
- Sources and Uses on all BRS report columns match except for Actuals
- In general, apparent that all forms have been reviewed and checked, allowing for
minor errors or complexities such as revenue codes or fund transfers
- Mandatory line items such as GSD and DoIT rates match schedules
- Sufficient justification for expenditures and significant changes provided on E-4s and
E-5s

vi. Operating Budget Submissions

- Submitted by statutory deadline including BRS files
- All required copies submitted
- Contain all required documents
- All OPBUD-3s and allotment forms signed and dated by CFO
- Sources and Uses on all BRS report columns match except for Actuals
- Submissions match agency’s OPBUD-2 by sources and uses except for federal
changes and approved GAAP adjustments
- In general, apparent that all forms have been reviewed and checked, allowing for
minor errors or complexities such as revenue codes or fund transfers

d. Cash Control Bureau

i. Timeliness of deposits – i.e. all deposits posted to GL within five days of end of month
ii. Timeliness of Journal Entries for clearing accounts – all clearing accounts must be
cleared within five days of the end of the month
iii. Yearly Deadlines

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FIN 16 – General Accounting Practices
Policies & Procedures FIN 16.9

e. Audit Bureau

i. Excessive After the Facts

- Showing a continuous pattern after notification of the same type of violation

ii. Numerous rejections on:

- Purchase orders - Continuous pattern of rejections after notification of
noncompliance with procurement code
- Payment vouchers - Continuous pattern of rejections after notification of
noncompliance with procurement code

iii. P-Card (procurement card):

- Submission of late payments (past due).
- Submission of late post audits, past 30 days.

E. Applicability

This policy applies to all state agencies.

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2.0 Unit 2—Work Break Down Structure and Policies
FIN 17 – General Accounting Practices
FIN 17

FIN 17 – General Accounting Reporting Requirements

Policies and Procedures

Beginning of Document

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System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
FIN 17 – General Accounting Practices
Policies & Procedures FIN 17.1

FIN 17.1 Compensated Absence Reporting

A. MAP Standard

To ensure accuracy, state agencies must comply with GASB 34, Paragraph 119 in regards to
compensated absences. All agencies must have the note disclosure that conforms with GASB 34.

B. Purpose

This policy establishes the requirement that state agencies are required to follow the procedures and
polices established by DFA for uniform standards.

C. Authority

NMSA 1978, §6-5-2

D. Policy

1. State agencies must show in the note disclosure the beginning balance, additions, deletions and
ending balances for compensated absences.

2. Following example of how the note disclosure should be:

E. Applicability

This policy applies to all state agencies.

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System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
FIN 17 – General Accounting Practices
Policies & Procedures FIN 17.2

FIN 17.2 Transfers In and Transfers Out Reporting

A. MAP Standard

To ensure accuracy, state agencies must comply with GASB 34, in regards to transfers in and
transfers out. All agencies must have the financial statements and note disclosure that conforms with
GASB 34.

B. Purpose

This policy establishes the requirement that state agencies are required to follow the procedures and
polices established by DFA for uniform standards.

C. Authority

NMSA 1978, §6-5-2

D. Policy

1. State agencies must show on the fund financial statements Transfers In and Transfers Out
separately. Agencies are not allowed to combine these two account codes together for the
financial statements.

2. Following example of how the financial statements should be presented:

E. Applicability

This policy applies to all state agencies.

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System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
FIN 17 – General Accounting Practices
Policies & Procedures FIN 17.3

FIN 17.3 Presentation of Land Grant Permanent Fund

A. MAP Standard

To ensure accuracy, state agencies must comply with GASB’s guidance on the accounting and
presentation of the Land Grant Permanent Fund.

B. Purpose

This policy establishes the requirement that state agencies are required to follow the procedures and
polices established by DFA for uniform standards.

C. Authority

NMSA 1978, §6-5-2

D. Policy

1. GASB guidance is that the primary government CAFR is the only true Generally Accepted
Accounting Principles (GAAP) financial statements.

2. A legal opinion indicates title to the land and corpus derived from the land are state assets with
resulting use and distribution to be compliant with the grant agreement

3. Nowhere in the State’s documented accounting policy has authorization been provided to state
sub-entities directing them to present this information in their financial statements.

a. Sub-entity represents the individual state agencies and universities as partial pieces of the full
reporting entity, the State of New Mexico as presented in its CAFR.

4. Guidance provided by the Governmental Accounting Standards Board generally does not allow
for presentation of beneficial interest in the assets of another governmental body as assets of the
reporting entity. GASB indicated that reporting entities which are sub-entities of the primary
government may present their share, as long as it was consistent across the entire entity.
However, given numerous state reporting entities, research indicates that there is one rational way
to report the LGPF to ensure sub-entity and CAFR financial statement consistency and supports
the concepts of relevance and understandability of the state’s collectively published statements.

5. Therefore, compliant with GASB guidance and to address the weaknesses identified above, the
Land Grant Permanent Fund (LGPF) shall be accounted for and reported as follows at the sub-
entity level:

a. The historical value of the donated federal land shall be reported as a General Capital Asset
by the Commissioner of Public Lands (COPL). No further allocation or distribution shall
occur and it will be carried into the primary government CAFR unchanged in amount and
characterization at year-end.

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System Administration, Work Breakdown Structure, and Policies_____________________
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FIN 17 – General Accounting Practices
Policies & Procedures FIN 17.3

b. At year-end, the Commissioner of Public Lands will account for, and transfer to, the
beneficiaries the value of royalties, rentals and deposits currently reported as assets held in
trust in a fiduciary fund. Entities receiving these assets shall report the incremental receipts
consistent with actual distributions. Only assets not belonging to the state are to be reported
as fiduciary assets. Depending on materiality, the inclusion of state assets in a fiduciary fund
could result in a modified or disclaimed audit opinion.

c. State Investment Council (SIC), as the state sub-entity responsible for managing the LGPF,
shall account for the LGPF, in its entirety, as an asset within a governmental fund. This data
shall roll-up into the CAFR unchanged at year-end. All other recipients shall cease reporting
the LGPF as an asset in their financial statements, as it will be reported by SIC. Compliant
with GASB 54 the fund balance shall be classified as restricted on SIC’s books.

d. LGPF beneficiaries shall only report their share of distributions in the financial statement and
the impact of any closing entries by the Commissioner of Public Lands that distributes
previously misclassified state assets held in trust. Beneficiaries may disclose their share of
assets held by SIC in a note disclosure.

e. The state’s CAFR shall be prepared by aggregating the sub-entity financial statements.

i. The CAFR shall report the value of land which will roll-up from the division-level COPL
report.

ii. The CAFR shall report the value of the LGPF that will be presented based on the nature
of the assets held and derived from the SIC financial statements. It will incorporate assets
unallocated and shown as assets held in trust by the Commissioner of Public Lands, if
applicable, and LGPF asset valuation adjustments value previously unallocated by SIC.

6. The approach described above is the preferred way to produce consistent division-level and
statewide CAFR financial statements that are relevant and support assigned accountability for
these assets. Specifically, parties interested in the LGPF may access that data by reviewing the
financial statements of the state sub-entity responsible for investing them, the State Investment
Council, which will report 100% of the assets or by referring to the State CAFR.

7. This change becomes effective with the fiscal year 2017 published financial statements.

E. Applicability

This policy applies to all state agencies.

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System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies

HUMAN CAPITAL MANAGEMENT

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System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 1 – Payroll
HR-1

HR 1 – Payroll

Policies and Procedures

Business Processes

Beginning of Document

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System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 1 – Payroll
Policies & Procedures HR-1.1

HR 1.1 Employee Payroll Data

A. MAP Standard

To ensure compliance, state agencies and the Department of Finance and Administration (DFA) must
have internal controls for documenting authorized deductions and special requests for paychecks.

B. Purpose

This policy establishes requirements and procedures for deductions and net payment on paychecks.

C. Authority

NMSA 1978, §10-9-10 (198.); §7-3-3 (1996)

26 U.S.C §3402.

D. Policy

1. State agencies must document special deductions requested by employees and/or other authorized
sources. Requests received by parties other than the employee must be by a legal source, such as
a court order.

2. State agencies shall have state employees re-elect benefits and W-4 information on an annual
basis or upon change in eligibility.

E. Applicability

This policy applies to all state agencies who process payroll through SHARE HCM.

F. Procedures

State Agency Payroll Staff

1. Receive W-4 Tax Form Data/Receive the General Deduction

Data/Receive /Receive Direct Deposit Request Data/Receive Personnel Action Form.

2. Validate the received document and enter into SHARE.

3. Review the item entered for accuracy.

Additional Payment Process

State Agency Payroll Staff

1. Receive request for additional payment.

2. If the State Personnel Office (SPO) approval is required, SPO validates and returns document to
agency. Agency enters applicable changes into SHARE.

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System Administration, Work Breakdown Structure, and Policies_____________________
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HR 1 – Payroll
Policies & Procedures HR-1.1

3. Request for Out of Cycle salary increases (‘lump sum payments’) from the Administrative Office
of the District Attorneys (DA) must be in conformity with applicable laws as well as policy and
procedures. Appropriate supporting documents should be attached to the additional pay request
form. Such request will be reviewed and approved by the Central Payroll bureau (CPB) chief and
the director of the State Budget Division of the Department of Finance & Administration prior to
processing.

4. State agency validates document and data item entered in SHARE by CPB.

Receive Data Change Request

State Agency Payroll Staff

1. Receive request for address/name change or a check due to death of employee.

2. State agency sends request to CPB.

Receive Garnishment Request

CPB

3. Receives garnishment request documentation.

4. Verify if it is a current employee and/or if it is a new vendor. For the new vendors, request FCD
to create new vendor.

5. Validate document and enter into SHARE.

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System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 1 – Payroll
Policies & Procedures HR-1.2

HR 1.2 Payroll Processing

A. MAP Standard

To ensure compliance, the Department of Finance and Administration must have internal controls for
documenting all aspects of payroll records.

B. Purpose

This policy establishes requirements and procedures for production of payroll records and payments
of deductions and taxes due.

C. Authority

NMSA 1978, §10-9-17 (1961)

D. Policy

1. State agencies must document requests for one-time pay adjustments.

2. CPB shall pre-audit payroll requests, address and fix issues discovered and confirm the payroll
process before posting payroll. After posting, CPB through the Financial Control Distribution
Center will distribute paychecks/remit advices to state agencies as well as prepare payroll
withholding payments to vendors accordingly. In addition, CPB will prepare tax reporting for the
pay period.

E. Applicability

This policy applies to all state agencies who process payroll through SHARE HCM.

F. Procedures

CPB

1. Runs the On – Cycle and Off – Cycle payroll process (bi-weekly).

2. Input the pay-run ID into the SHARE and run the payroll.

3. Create pay sheets in SHARE.

4. Load Time and Labor Data (SHARE).

5. SHARE System uploads data into Time and Labor Module.

6. Perform pre-calculation audit (SHARE).

7. Calculate payroll (SHARE).

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System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 1 – Payroll
Policies & Procedures HR-1.2

8. Generate/evaluate preliminary reports.

9. Run payroll queries to confirm payroll data.

10. Confirm payroll process (SHARE).

11. Process the leave accrual processing.

12. Process warrants and check register.

13. Process advices and advice register.

14. Send the direct deposit and checks to the printer.

15. Prepare the direct deposit and child support files in SHARE – HCM.

a. Transmit direct deposit and child support files to the fiscal agent bank.

b. Prints pay checks and advices.

16. Distribute pay checks and advices to state agencies through the Financial Control Division
Distribution Center.

17. Sends payroll register (Paid Hours), warrants and advices back to state agencies.

18. Performs the Actuals Distribution.

19. Prepare accounts payable voucher.

20. Post payroll data into the general ledger. State agencies perform the necessary payroll expense
allocations for time and labor. Monthly, the state agencies perform a reconciliation of the state
agency’s payroll to SHARE general ledger.

21. Performs the payroll interface with the general ledger.

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System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 1 – Payroll
Policies & Procedures HR-1.3

HR 1.3 Tax Reporting Process

A. MAP Standard

To ensure compliance, the Department of Finance and Administration must have internal controls for
all aspects of payroll deductions and taxes due.

B. Purpose

This policy establishes requirements and procedures for deductions’ accounts payable and taxes due
for each pay period.

C. Authority

NMSA 1978, §10-9-17 (1961)

D. Policy

Department of Finance and Administration Central Payroll shall produce all reports necessary for pay
period accounts payable, state and federal tax payments, and federal 941 reports.

E. Applicability

This policy applies to all state agencies who process payroll through SHARE HCM.

F. Procedures

CPB

1. Generate Tax Summary – Federal Report/Generate Tax Summary

State Report/Generate Federal Liability by State Report/Generate Tax Deposit Summary
Report/Generate Tax Balance Audit Report.

2. Per Pay Period: Deposit Federal Taxes on payday.

3. Monthly: Report State Withholding CRS-1.

Quarterly Process

4. In addition to the monthly procedures – (Quarterly) the CPB prepares the 941 Report.

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System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 1 – Payroll
Policies & Procedures HR-1.4

HR 1.4 W-2 Form (Year-End Process)

A. MAP Standard

To ensure compliance, Department of Finance and Administration must have internal controls for
documenting year-end reporting of employee pay.

B. Purpose

This policy establishes requirements, procedures documenting, and reporting payroll data.

C. Authority

NMSA 1978, §10-9-17 (1961)

D. Policy

1. CPB shall assure that all relevant state and federal regulations are current in the SHARE system.

2. CPB shall create and audit W-2 data to assure accuracy at year-end.

3. CPB shall create/print the W-2s for distribution to employees and files for federal reporting.

E. Applicability

This policy applies to all state agencies who process payroll through SHARE HCM.

F. Procedures

CPB

1. Start the Annual W-2 form process into SHARE.

2. Verify if database is current with SHARE Tax Updates. CPB validates and makes necessary
modifications to ensure all relevant state and federal regulations are current in the SHARE
System.

3. Define Tax Reporting Parameters (W-2s) on SHARE.

4. Load year end data into SHARE.

5. Run Tax 900 and Tax 910 – Audit and Error Reports.

6. Run the Tax 915 (W-3 Transmittal – Total Report). Reconcile the 941 totals for the year to the
W-3 totals.

7. Create and Print W-2s/W-2cs.

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System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 1 – Payroll
Policies & Procedures HR-1.4

8. Create W-2s/W-2cs Federal File.

9. Submit W-2s/ W-2cs wage file to the Social Security Administration.

State Agency

1. Make copies of W-2 per CPB instructions.

2. Distribute W-2 to employees.

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System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 1 – Payroll
Business Process PY-01

PY-01 Payroll Employee Pay Data

State
Personnel
Agency Payroll Staff Office (SPO) Central Payroll Bureau
(CPB)
From HR- Process
A: Authorize
02a M – PY01 / 1 D: Verify I

Receive
approved
Personnel Start
Action Form M – PY01 / 4

Process
A: Authorize 7
B: Record Receive
Receive W-4 D: Verify I
Garnishment
E. Verify S
Tax Form Data Request

1
Validate Document
and enter into
No
SHARE
Current 8
Receive the No
Yes Employee? Return to Agency
General
Deduction Form
Data

To
PY-02
Receive Direct New Vendor? Yes
Deposit Request
Data

9
2 Request FCD to
No Approved? Create New Vendor
Return to Agency

From
PY-02.1 Process
A: Authorize No
B: Record
M – PY01 / 5 E: Verify S
Process
D: Verify I
To
3 4 AP-02
Receive Request for SPO Approval Validate Document
additional payment Yes
Required? and enter into
SHARE
Process
A: Authorize
Process B: Record
D: Verify I M – PY01 / 2 E: Verify S
Receive Request for
Address/Name Change 6
5
or a Check due to death Validate Document
Agency Sends to
of employee and enter into
Central Payroll
SHARE

M – PY01 / 3

To
PY-02

413
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 1 – Payroll
Business Process PY-01

PY-01 Payroll Employee Pay Data (Control Points)

M – PY01 / 1 Personnel Action Form is reviewed for appropriate approvals.

M – PY01 / 2 The SPO approves the request for additional payments to employees prior to being input into SHARE.

M – PY01 / 3 CPB validates the request and the documentation before input the data into the SHARE System.

M – PY01 / 4 Entry into SHARE is reviewed and approved by independent reviewer.

M – PY01 / 5 Agency Payroll reviews to determine if additional approval by SPO is required.

414
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 1 – Payroll
Business Process PY-02

PY-02 Payroll Processing

Agency Payroll
/ HR Staff Central Payroll Bureau (CPB)

Process
A: Authorize
Needs an One-Time Runs the Payroll B: Record
Adjustment Process (bi-weekly) D: Verify I

3
1
Input the Pay-Run
Request One-Time
ID into the SHARE
Adjustments
and run the payroll

4
Create Pay Sheets
into SHARE
From
PY-01
Process
A: Authorize
B: Record
E: Verify S
2 5
From
Update Pay Sheets Load Time and
TL-01
with One-Time Labor Data
Adjustments (SHARE) M – PY02 / 3 Process
E: Verify S
M – PY02 / 4 F: Reconcile

From
BN-03 12 To
From Confirm Payroll PY-02.1
TL-01 Process (SHARE)

Process
A: Authorize
C: Report No M – PY02 / 2
F: Reconcile

Refer to “Payroll to 13
6
General Ledger Issues Detected Yes Address and fix
Pre-Calculation
Journal” Process for Issues
Audit (SHARE) A – PY02 / 1 Details

11
8
Run Payroll Queries
Issues Detected? Yes Address and fix
to confirm payroll
Issues
data

No No

7 9 10
Calculate Payroll Generate /Evaluate Issues Detected Yes Address and fix
(SHARE) Preliminary Reports issues

415
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 1 – Payroll
Business Process PY-02.1

PY-02.1 Payroll Processing

Central Payroll Bureau
(CPB)

From From
PY-02 BN-04 B
Off-Cycle Checks Process

A – PY02b / 1
Start the Off-Cycle
A – PY02b / 2 Checks Process

1
Leave Accrual
Processing 13
Off-Cycle Check
Process
Process (Manual Checks)
A: Authorize
C: Report Process
A: Authorize
2 B: Record
Process Warrants D: Verify I
and Check Register E: Verify S
14
Create and Calculate
Check
Process
A: Authorize
C: Report 12
3 To A – PY02.1 / 1
Prepare Tax
Process Advices and PY-03
Reporting for the
Advice Register A – PY02.1 / 2
Pay Period A
Process
A: Authorize
B: Record
C: Report Direct Deposit
A D: Verify I File
E: Verify S Check Reversals
4 11
Send the Direct Performs the payroll Process
Deposit and Checks interface with the
to the printer General Ledger
5 Refer to the Start the Check
Print Pay General Ledger reversal Process
Checks Journal Process
for Details
6
Pay Checks M – PY02.1 / 3
Distributed to Process
Agencies A: Authorize 15
B: Record Check Reversals
E: Verify S
F: Reconcile

7
Sends Payroll 10 To
Register (Paid Prepare Accounts AP-07
Hours), Warrants Payable Voucher
and advises back to Note: Agencies perform the necessary 16
payroll expense allocations for Time &
Agencies Labor. Monthly, the agencies perform a
Process Reversal
reconciliation of the agency’s payroll to M – PY02.1 / 4
SHARE General Ledger.
No

8
Issues Detected
Actuals Distribution 17 Process
A: Authorize
Confirm Reversal D: Verify I

To 9
PY-01 Address and Fix Yes
Issues B

416
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 1 – Payroll
Business Process PY-02.2

PY-02.2 Submission of Positive Pay File to the Fiscal Agent Bank

Financial Control Financial Control

Central Payroll Division (FCD) Division (FCD)
Operations Financial
Management Section

NMS Payroll to Cash Run NMS Positive Pay File Obtain the total number of A-
Management Intfc daily at 3:30 PM to warrants to verify the fiscal agent
1 generate a positive pay for all bank received the positive pay file.
3rd party warrants. 11
5
Process
B: Record
Process and send payroll bank
information for checks and Obtain total amount A-warrants in
direct deposits to SHARE – Transmit positive pay file from
SHARE to the FTP server the Positive Pay File and compare
Financials to the fiscal agent bank email
2 6.
confirmation.
12

Process
Run Query Transmit Positive Pay file to D: Verify
NMS_3RD_PARTY_POS_PAY Fiscal Agent Bank. Complete E
to identify the total number of transmission log. Confirm Received ARP Register
A-warrants generated receipt of positive pay file by Maintenance Event: ARP File
3 bank. Confirmation email from Wells
7 Fargo and compare
Process 13
A:
Authorize
Email FCD Operations & FCD
Financial Management Section
(FMS) the results of query
requesting when the positive Confirm positive pay file amount
pay file is submitted to fiscal 14
agent bank.
4 Email Central Payroll & FCD
Financial Management Section
(FMS) confirmation that the
positive pay file was submitted
to fiscal agent bank.
8

Positive Pay file received by

Fiscal Agent Bank
9

Fiscal Agent Bank

Emails State ARP File

Confirmation of registers items
captured.
10

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System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 1 – Payroll
Business Process PY-02

PY-02 Payroll Processing (Control Points)

System access is restricted to authorized Financial Control Division Support Unit (FCDSU) individuals to execute the
A – PY02 / 1 payroll process within SHARE to prevent unauthorized entries posted to the general ledger. Authorized FCDSU
individuals are systematically restricted from creating or modifying employee records or creating manual journal entries.

CPB verifies and analyses the payroll preliminary reports. Additionally, CPB runs Payroll Queries to confirm payroll
M – PY02 / 2
data, address and fix payroll issues.

Segregation of duties exist that systematically prevents the Agencies and individuals within the SPO who are authorized
A – PY02 / 3
to enter and approve employee data within SHARE from generating payroll.

Segregation of duties exist that prevent the same individual from authorizing employee additions or changes, recording
A – PY02 / 4 employee additions or changes, generating payroll, executing checks or direct deposits, distributing payroll and
performing the payroll reconciliation.

Segregation of duties exist that systematically prevents the Agencies and individuals within the SPO who are authorized
A – PY02.1 / 1
to enter and approve employee data within SHARE from generating payroll.

Segregation of duties exist that prevent the same individual from authorizing employee additions or changes, recording
A – PY02.1 / 2 employee additions or changes, generating payroll, executing checks or direct deposits, distributing payroll and
performing the payroll reconciliation.

The payroll check stock and warrants are secured within CPB. The payroll check stock has built in security features and
M – PY02.1 / 3
is block stock until printed. Warrants are kept in a vault and periodically inventoried.

Monthly the agencies perform a reconciliation of the agency’s payroll to SHARE General Ledger. Additionally, the
M – PY02.1 / 4 agencies reconcile payroll information in order to verify if the paid hours are in accordance with the Time & Labor
hours. The reconciliation is reviewed and approved by a separate individual.

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System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 1 – Payroll
Business Process PY-03

PY-03 Tax Reporting Process

Central Payroll Bureau
(CPB)
From
PY-02.1

Process
A: Authorize
C: Report
1 Tax Summary –
Generate Tax Federal
Summary – Federal Report
Report

Process
A: Authorize
C: Report
2 Tax Summary State
Generate Tax Report
Summary State
Process Process Process
Report A: Authorize A: Authorize A: Authorize
B: Record B: Record B: Record
D: Verify I D: Verify I D: Verify I
Process E: Verify S E: Verify S E: Verify S
A: Authorize
C: Report
Federal Liability by 7
3 6
State Monthly 8
Generate Federal Per Pay Period
Report Report State (Quarterly)
Liability by State Deposit Federal
Withholding Prepare 941 Report
Report Taxes
CRS-1

Process M – PY03 / 1
M – PY03 / 1 M – PY03 / 1
A: Authorize
C: Report
4 Tax Deposit
Generate Tax Summary Report End
Deposit Summary
Report

Process
A: Authorize
C: Report
5 Tax Balance Audit
Generate Tax Report
Balance Audit
Report

419
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 1 – Payroll
Business Process PY-03

PY-03 Tax Reporting Process (Control Points)

The supervisor of CPB reviews and approves the Federal Taxes to be deposited prior to submitting payment or
M – PY03 / 1
recording entries.

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System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 1 – Payroll
Business Process PY-04

PY-04 W-2 Form (Year-end Process)

Central Payroll Bureau
(CPB)

Start the Annual W-

2 Form Process
Process
A: Authorize
B: Record
C: Report
D: Verify I
1
Verify if database is
current with SHARE
Tax Updates Note: CPB validates and makes necessary
modifications to ensure all relevant State
and Federal regulations are current in the
SHARE System.

2
Define Tax
Reporting
Parameters
(W-2's) on SHARE

3
Generates W-2 Data
from SHARE

Process
C: Report
D: Verify I
4
5 Process
Run Tax 900 & Tax
Address and Fix F:
910 - Audit and Reconcile
issues / Errors
Error Reports

A – PY04 / 1

Issues / Errors
Yes
Detected

No

6
Start the Annual W-
Create and Print W-
2c Form Process
2's / W-2c’s

7
Create W-2's / W- End
2c’s Federal File

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System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 1 – Payroll
Business Process PY-04

PY-04 W-2 Form (Year-end Process) (Control Points)

SHARE runs the TAX900 and TAX910 in order to identify errors on conditional invalid data and error on W-2 data
A – PY04 / 1
miscellaneous, respectively.

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System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 1 – Payroll
Business Process PY-05

PY-05 Control Table Maintenance

Agency HR / Payroll Central Payroll Bureau
(CPB)

From
Request Payroll
TL-02
Table Maintenance

Process Process
Process A: Authorize A: Authorize
A: Authorize E: Verify S B: Record
D: Verify I
1 2 3
Request
Request New Yes Create Earnings Update Earnings
Approved?
Earnings Code Code in SHARE Mappings
6

M – PY05 / 1

No To
CA-01

To
Time Reporting
TL-02 Yes
Codes Needed?

No

Request Payroll End

Table Maintenance

Process Process
Process A: Authorize A: Authorize
A: Authorize E: Verify S B: Record
D: Verify I
4 5 6
Request
Request New Yes Create Deduction Update Deduction
Approved?
Deduction Code Code in SHARE Mappings
6

M – PY05 / 1
No To
CA-01

To
BN-01 Yes Benefit Deduction?

No Process
A: Authorize
B: Record

7
Update General
End
Deduction Tables on
SHARE

423
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 1 – Payroll
Business Process PY-05

PY-05 Control Table Maintenance (Control Points)

M – PY05 / 1 Table Updates request have to be approved by CPB, before it is processed on the SHARE.

424
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
HR-2

HR 2 – Benefits

Policies and Procedures

Business Processes

Beginning of Document

425
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Policies & Procedures HR-2.1

HR 2.1 Control Table Maintenance

A. MAP Standard

To ensure compliance, Department of Finance and Administration must have internal controls for
maintaining and updating employee data.

B. Purpose

This policy establishes requirements and procedures for deductions and pay for employees in the
SHARE system.

C. Authority

NMSA 1978, §10-9-17 (1961)

D. Policy

1. State agencies shall document and request all changes in employee pay and deductions in
accordance with CPB deadline prior to payroll processing.

2. CPB shall approve and create/update employee earnings and deductions in SHARE.

E. Applicability

This policy applies to all state agencies who process payroll through SHARE HCM.

F. Procedures

New Earnings Code Request

State Agency/HR Payroll

1. Request payroll table maintenance into SHARE.

2. Request new earnings code into SHARE.

CPB

3. Create earnings code in SHARE.

4. Update earnings mappings.

New Deduction Code Request

State Agency/HR Payroll

1. Request payroll table maintenance into SHARE.

426
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Policies & Procedures HR-2.1

2. Request new deduction code into SHARE.

CPB

3. Create deduction code in SHARE.

4. Update deduction mappings.

5. If it is a benefit deduction, the CPB, also updates general deduction tables on SHARE.

427
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Policies & Procedures HR-2.2

HR 2.2 Benefits

A. MAP Standard

To document and maintain employee benefit records using only the methods and procedures
authorized by state law, rules, and regulations.

B. Purpose

This policy establishes requirements and procedures for administration and documentation of state
employees.

C. Authority

NMSA 1978, §10-7-B and §10-7-B-6

Health Care Purchasing Act, NMSA 1978, §13-7

D. Policy

1. The director and state agencies shall maintain a record of each employee’s employment history in
accordance with operational necessity and applicable state and federal law requirements.
Employees shall have access to their own file. Employment-related confidential records shall be
available for inspection by state agencies during the process of interviewing for employment
when the employee has provided a signed release. No materials shall be placed in an employee’s
employment history without providing the employee a copy. Employees may submit written
rebuttal of any material placed in their employment history. State agencies shall transfer the
complete record of an employee’s employment history upon inter-agency transfer.

2. Employment records, except confidential records, are subject to inspection by the public.
Confidential records may be inspected with the written permission of the employee or pursuant to
a lawful court order.

3. For the purpose of inspection of public records under Subsection B of Rule 1.7.1.12 NMAC, the
following material shall be regarded as confidential and exempted from public inspection: records
and documentation pertaining to physical or mental illness, injury or examinations, sick leave and
medical treatment of persons; records and documentation maintained for purposes of the
Americans with Disabilities Act [42 U.S.C. Section 101 et seq.]; letters of reference concerning
employment, licensing or permits; records and documentation containing matters of opinion;
documents concerning infractions and disciplinary actions; performance appraisals; opinions as to
whether a person should be re-employed; college transcripts; military discharge; information on
the race, color, religion, sex, national origin, political affiliation, age and disability of employees;
home address and personal telephone number unless related to public business; social security
number; laboratory reports or test results generated according to the provisions of Rule 1.7.8
NMAC; and as otherwise provided by state or federal law.

4. The state personnel office shall review new benefit rates before the stated effective date.

428
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Policies & Procedures HR-2.2

5. General Services Department shall coordinate and oversee the updates in SHARE upon:

a. Receipt of contribution schedule from legislative approval.

b. Approval of a new benefit vendor.

c. Changes due to Interagency Benefits Advisory Committee RFP process.

E. Applicability

This policy applies to all state agencies who processes payroll through SHARE HCM.

F. Procedures

Benefit Plan Update Process

General Services Department (GSD)/Risk Management Division (RMD)

1. Interagency Benefits Advisory Committee (IABC) RFP process.

2. Plan redesign changes identified by RMD Director and benefits consultant.

Department of Information Technology (DoIT) and/or State Contractor

3. Benefit plans updated in SHARE if required (updates made based upon GSD/RMD’s needs).

State’s Third Party Administrator/Benefits Staff

4. Enroll employees in new benefit plans (if necessary).

Contribution Schedule Process

GSD/RMD

1. Receive new contribution schedule from Legislation.

2. Determine premiums.

3. Rates provided by GSD/RMD to DOIT.

DoIT or State Contractor

4. Create new rates in SHARE.

Department of Finance Administration Central Payroll Bureau (CPB)

5. Update deduction code table if necessary.

429
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Policies & Procedures HR-2.2

6. Review new rates prior to effective date.

Rules and Policies Process – Existing Vendors

GSD/RMD

1. Receive and disseminate new rules or policies.

2. Coordinate and oversee activities with DoIT, State Contractor, and DFA.

3. Testing to be performed by GSD/RMD.

DoIT or State Contractor

4. Create and/or modify new benefit enrollments rules in SHARE.

Rules and Policies Process – New Vendors

GSD/RMD

1. New benefit vendor approved.

2. Communicate vendor selection to DoIT, DFA, Legislative Finance Committee (LFC), and State
Personnel Office (SPO).

3. Request DFA’s Audit & Vendor Relations Bureau to create new vendor.

4. Testing to be performed by GSD/RMD.

DoIT or State Contractor

5. Create new rules in SHARE.

6. Create new benefit plan in SHARE (testing to be performed by GSD/RMD).

7. Create interface files.

DFA

8. Create deduction codes.

9. Create vendor files.

State’s Third Party Administrator/Benefits Staff

10. Enroll in new benefit plan.

430
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Policies & Procedures HR-2.3

HR 2.3 Open Enrollment Process

A. MAP Standard

To document and maintain employee benefit records using only the methods and procedures
authorized by state law, rules, and regulations.

B. Purpose

This policy establishes requirements and procedures for administration and documentation of benefits
selected by state employees.

C. Authority

NMSA 1978, §10-7B-6 (2006) and §13-7

D. Policy

1. GSD/RMD holds an annual Open/Switch Enrollment, during this time employees are allowed to
make defined new enrollments, those employees electing to not make changes are re-enrolled by
passive enrollment.

E. Applicability

This policy applies to all state agencies who process payroll through SHARE HCM.

F. Procedures

GSD/RMD/State’s Third Party Administrator

1. Hold Open/Switch Enrollment Meetings.

2. Testing to be performed by GSD/RMD.

3. Coordinate and oversee enrollment changes with DoIT, DFA, and Third Party Administrator.

DoIT or State Contractor

4. Configure the SHARE HCM benefits module with the benefit eligibility options.

DoIT & GSD/RMD/Employee Benefits Bureau Super-User

5. Open SHARE for benefit enrollment.

Employee

6. Verify the eligible benefit options via the State’s benefits website www.mybenefitsnm.com and
the Third Party Administrator.

431
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Policies & Procedures HR-2.3

7. State employees complete and submit benefits enrollment via the online enrollment form.

Third Party Administrator

8. Receive employee elections.

9. Enter employee elections and dependent information into SHARE.

DoIT or State Contractor

10. Close SHARE for benefit enrollment.

11. Update interface files.

DoIT & GSD/RMD/Third Party Administrator

12. Perform an on-line finalization/validation.

Employee

13. Confirms proper elections by reviewing pay advice. HR Representatives are able to view
elections in SHARE for employee confirmation.

14. Return any needed enrollment corrections to Third Party Administrator within 14 calendar days
of first pay advice, documenting benefit changes.

432
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Policies & Procedures HR-2.4

HR 2.4 Administration Process

A. MAP Standard

To document and maintain employee benefit records using only the methods and procedures
authorized by state law, rules, and regulations.

B. Purpose

This policy establishes requirements and procedures for administration and documentation of benefits
selected by state employees.

C. Authority

NMSA 1978, §10-7B-6 (2006) and §13-7

D. Policy

1. Third Party Administrator/State agencies shall update benefit elections annually and/or upon
change in employee eligibility.

2. DoIT, on a weekly basis, will update and send State eligibility files to vendors. Third Party
Administrator, on a weekly basis, will send LPB, COBRA & Legislators eligibility files to
vendors. Corrections to State files will be sent to vendors on Wednesday of each week. All week
and mid-week files are placed on the secure file transfer protocol (SFTP) site for vendor pick-up.

3. DoIT, on each pay cycle, will update and send data files to vendors for remittance.

E. Applicability

This policy applies to all state agencies who process payroll through SHARE HCM.

F. Procedures

Third Party Administrator/Benefits Staff

1. Performs an on-line procedure to determine benefit eligibility.

2. Receive employee elections via benefits website for State employees and via LBP HR
Representatives for LBP employees

3. Enter employee elections and dependent information into SHARE.

4. Performs an on-line finalization/validation and deductions updated on payroll module.

433
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Policies & Procedures HR-2.4

Benefits Data Update for Vendors Process – Interface Files

DoIT or State Contractor

1. Data Benefit elections and/or deductions pulled for vendor files.

2. Data file placed on the SFTP site for vendors to pick-up.

434
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Policies & Procedures HR-2.5

HR 2.5 Leave Accrual Management

A. MAP Standard

To document and maintain employee benefit records using only the methods and procedures
authorized by state law, rules, and regulations.

B. Purpose

This policy establishes requirements and procedures for administration and documentation of leave
accrued and taken by state employees.

C. Authority

NMSA 1978, § 10-9-10 (1983)

New Mexico State Personnel Board Rules and Regulations, Rule 1.7.7 NMAC (07-07-01)
Department of Finance and Administration Policies for the Governor Exempt Employees, June 2010
New Mexico Judicial Branch Personnel Rules, NMJBPR 5, NMJBPRAWE 19, August 2010
Rules 10.4.7.11 and 10.4.7.12 NMAC

D. Policy

1. Updated benefit elections shall be entered into SHARE annually.

E. Applicability

This policy applies to all classified state agencies with the exception of legislative agencies:

F. Procedures

State agency HR/Benefits Staff

1. Employee request for a leave (annual leave/sick leave or donation request).

2. State agency receives Annual Leave/Sick Leave Request.

3. Manually calculate hours for donation.

4. Balance adjustment approval (leave balance).

CPB

5. Update employee pay sheet with balance updates.

State agency HR/Benefits Staff

6. Enroll employee in leave plan.

435
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Policies & Procedures HR-2.5

CPB

7. Leave Accrual Processing, which updates the balances in SHARE database, and keep the
balances available online to the employees.

8. Perform enrollment audits.

436
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Policies & Procedures HR-2.6

HR 2.6 Leave Donation

A. MAP Standard

To donate leave to another employee using only the methods and procedures authorized by state law,
rules, and regulations.

B. Purpose

This policy establishes requirements and procedures for donation of leave available to state
employees.

C. Authority

NMSA 1978, §10-9-10 (1983)

New Mexico State Personnel Board Rules and Regulations, Rule 1.7.7.9 NMAC (07-15-05)
Department of Finance and Administration Policies for the Governor Exempt Employees, June 2010
New Mexico Judicial Branch Personnel Rules, Part I, Part II, August 2010
10.4.7.24 6-30-2010

D. Policy

1. Two types of leave are available to employees for donation.

a. Annual Leave – the employee may donate up to the full amount of his/her accumulated hours.

b. Sick Leave – the employee may donate up to his/her accumulated sick leave greater than 600
hours. Additional restrictions include that no more than 120 hours may be donated in any
one fiscal year with the exception of the year in which an employee retires, when the
employee may transfer up to 400 hours of sick leave. The dollar value of the transferred
leave shall equal 50% of the monetary value of the total hours transferred by the donor
employee.

E. Applicability (should be reviewed and agreed to by DFA)

This policy applies to all state agencies who processes payroll through SHARE HCM.

F. Procedures

State agency HR/Benefits Staff

1. Employee request for a leave (annual leave/sick leave or donation request).

2. State agency receives annual leave/sick leave request.

3. Manually calculate hours for donation.

4. Balance adjustment approval (leave balance).

437
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Policies & Procedures HR-2.6

CPB

5. Update employee pay sheet with balance updates.

State agency HR/Benefits Staff

6. Enroll employee in leave plan.

CPB

7. Leave Accrual Processing, which updates the balances in SHARE database, and keep the
balances available online to the employees.

8. Perform enrollment audits.

438
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Policies & Procedures HR-2.7

HR 2.7 COBRA Administration Process

A. MAP Standard

To document and maintain employee benefit records using only the methods and procedures
authorized by state law, rules, and regulations.

B. Purpose

This policy establishes requirements and procedures for administration and documentation of
COBRA benefits of state employees.

C. Authority

Consolidated Omnibus Budget Reconciliation Act of 1985 (Pub. L. 99-272).

D. Policy

1. The director and state agencies shall notify no-benefits employees and terminated employees of
COBRA benefits available.

2. HR Representatives immediately notify Third Party Administrator of any potential COBRA

participant so that Third Party Administrator mails COBRA information packet to individual

3. Third Party Administrator shall enter enrollments or waivers into SHARE.

a. Expiration of coverage period.

b. Cancellation of coverage by employee.

c. Cancellation due to nonpayment.

E. Applicability

This policy applies to all state agencies who process payroll through SHARE HCM.

F. Procedures

State agency HR/Benefits Staff

1. Terminate an employee/employee loses benefits eligibility.

2. Terminate benefits/process employee benefit admin action.

3. Send Third Party Administrator the COBRA notification form.

439
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Policies & Procedures HR-2.7

Third Party Administrator/GSD/RMD

1. Verifies if the employee is a COBRA Benefits eligible.

2. Send employee COBRA information packet.

3. Receive application paperwork from employee.

4. If the employee requests benefits then process plan enrollments.

5. Enroll employee in benefits.

Terminate Cobra Benefits Process

Third Party Administrator

1. Terminate COBRA benefits due to: coverage expired or employee cancelling coverage.

2. Cancellation due to nonpayment.

3. Terminate the employee billing.

4. COBRA process termination and generate coverage termination letter.

440
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Policies & Procedures HR-2.8

HR 2.8 COBRA Billing Administration

A. MAP Standard

To document and maintain employee benefit records using only the methods and procedures
authorized by state law, rules, and regulations.

B. Purpose

This policy establishes requirements and procedures for billing to and receipt of COBRA payments
by state employees.

C. Authority

Consolidated Omnibus Budget Reconciliation Act of 1985 (Pub. L. 99-272).

D. Policy

1. SunSystems shall generate billing statements to employees after receiving billing details via the
SFTP site from the Third Party Administrator.

2. GSD/Administrative Services Division (ASD) shall track and deposit receipts of COBRA
payments and enter into SHARE and SunSystems.

E. Applicability

This policy applies to all:

1. State agencies.

F. Procedures

Billing Enrollment

Third Party Administrator/GSD/RMD

1. COBRA billing process requested.

2. COBRA enrollments entered into SHARE.

3. Billing enrollments generated in SunSystems via enrollment file retrieved from the SFTP site.

4. Third Party Administrator calculates the charges to each employee.

5. GSD/ASD emails or mails COBRA invoices to employees.

441
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Policies & Procedures HR-2.8

COBRA Benefits Payment

GSD/ASD

1. COBRA payments received from employees.

2. Enter payments into SunSystems and SHARE.

3. Process adjustments (payments x charges), credits/debits.

4. Third Party Administrator calculates the charges to each employee and sends invoice details via
the SFTP site to be uploaded into SunSystems.

5. Email or mail COBRA invoices to employee.

442
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Policies & Procedures HR-2.9

HR 2.9 Taxable Use of State Owned Vehicles for Commuting Purposes

A. MAP Standard

To document and maintain employee record of taxable use of state owned vehicles for commuting
purposes.

B. Purpose

This policy establishes requirements and procedures for the taxable use of state owned vehicles for
commuting purposes.

C. Authority

Internal Revenue Service Publication 15-B, Employer’s Tax Guide to Fringe Benefits (2014)
Rule 1.5.3.20 NMAC

D. Policy

State agencies shall apply the commuting rule.

E. Applicability

This policy applies to all state agencies with the exception of:

1. Law enforcement officers with the Department of Public Safety.

B. Procedures

State Agency

1. Develop a written policy for the use of state owned vehicle for commuting purposes.

2. Submit request to the Governor’s office through the agency’s cabinet secretary or agency head.

3. Request approval from the Director of the Financial Control Division (FCD) of the Department of
Finance and Administration for the written policy.

Financial Control Division (FCD)

4. The Director of FCD shall review and act on the request from the agency.

5. Notify the requesting agency of the decision of the Director of FCD.

State Agency

6. Send State Central Fleet Authority (General Services Department) all documented approvals.

443
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Policies & Procedures HR-2.9

Employee

Once the policy is approved, the employee shall:

7. Reports unit value on the time sheet in SHARE HCM by using the Taxable Vehicle Use
(CARTX) time reporting code.

Note: Employee should report one unit value per daily use.

Manager/Timekeeper

8. Approve time sheet.

DFA Central Payroll

9. Process payroll.

10. Issue W-2.

11. Submit W-3 wage file to the Social Security Administration.

444
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Business Process BN-01

BN-01 Benefits – Control Table Maintenance

General Services Department / Central Payroll Bureau
Risk Management Division (CPB)

1 2
Intra Agency Benefits Benefit Plans Enroll Employees in
Committee (IABC)
RFP Process Updated in SHARE New Benefit Plans
if required (if necessary)

A – BN01 /2

To
Process BN-03
A: Authorize A
B: Record

A – BN01 /2

Receive New 5 To
3 4
Contribution Review New Rates BN-03
Schedule from Determine Create New Rates in
Prior to Effective B
Legislation Premiums the SHARE System
Date

Process
Process Process
Process M – BN01 / 1
A: A: Authorize
D: Verify I B: Record
Authorize E: Verify S

A – BN01 /2

7
6
Receive New Rules Apply Rules to
Create New Rules in
or Policies Benefit Enrollments
SHARE System
(if necessary)

Process
A: Authorize
Process
B: Record To
BN-03
C
A – BN01 / 2

9
8
New Benefit Vendor Create New Benefit
Request AP to
Approved Plan in SHARE
Create New Vendor
System

Process
A: Authorize Process
B: Record

To 10
AP-02 Enroll in New
Benefit Plan

To
BN-03
D

445
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Business Process BN-01

BN-01 Benefits – Control Table Maintenance (Control Points)

M – BN01 / 1 CPB Review New Rates Prior to Effective Date in order to validate the entries into the system.

A – BN01 / 2 SHARE restricts access to authorized personnel.

446
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Business Process BN-02

BN-02 Benefits – Open Enrollment Process

Risk Management / Employee Third Party
General Services Department Administrator

Start the Open-

Enrollment Process

M – BN02 / 2

1 4
3
Configure the Fills the Eligible 5
Verify the eligible
SHARE System Benefit Form Receive Employee
benefit options via
with the benefit Elections
the GSD website
eligibility options
Note: Receive
M – BN02 / 1 any status
Process Process Change
A: Authorize A: Reques t from
D: Verify I A – BN02 / 6 Authorize Employee

6
Enter Employee
2 Elections and
Open SHARE for
Dependent
benefit enrollment
Information into
SHARE

M – BN02 / 3

Process
B: Record
D: Verify I

7
Close SHARE for
benefit enrollment

8 Election
To Confirmation
On-Line
BN-03 Statement Printed
Finalization/
Validation

A – BN02 / 4 Process
D: Verify I
B: Record
9
10
Deliver Election
Process Receives Election
Confirmation
E: Verify S Confirmation
Statement Printed to
Statement Printed
Employee

M – BN02 / 5

End

447
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Business Process BN-02

BN-02 Benefits – Open Enrollment Process (Control Points)

M – BN02 / 1 Benefits Eligibility Options on SHARE are verified and approved by a person other than the preparer.

M – BN02 / 2 Employee approves the benefit request before it is entered into SHARE System.

Third Party Administrator compares the actual benefit enrollment form within the prior employee benefit from SHARE.
M – BN02 / 3
If any discrepancy is identified, the Third Party Administrator request further details from the employee.

A – BN02 / 4 SHARE performs an On-Line Finalization in order to allocate the benefits data to each eligible employee.

Employee verifies the election Confirmation Statement Printed in order to identify any discrepancies to the selected
M – BN02 / 5
benefit.

A – BN02 /6 SHARE restricts access to authorized personnel.

448
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Business Process B-03

BN-03 Benefits – Administration Process (Overview)

General Services Department /
Third Party Administrator / Risk Management Division/ Third Party
Benefits Staff & GSD/ISD Administrator
From Benefit data updates for vendors
BN-01 C,
D
From
HR-02b From
A – BN03 / 1
PY-02

From 1 Print Eligible

BN-01 A, On-Line Procedure Benefit Form
B to Determine Benefit
Eligibility 7
From
Process Benefit Elections
From BN-07 D: Verify I and Deductions
HR-03 Process Selected
A:
Note: Receive any Authorize
2
status Change Receive Employee
Request from Elections
Employee
Data Created for
Vendors
3
Enter Employee
Process
Elections and A: Authorize
From Dependent D: Verify I

BN-02 Information into E: Verify S

SHARE
8
M – BN03 / 2 Process
Data File Sent to
E: Verify S
Vendors
4
To 5 From
On-Line Process
PY-02 Deductions updated BN-01 M – BN03 / 5
Finalization/ B: Record
on Payroll
Validation

End
A – BN03 / 3

Election
Confirmation
Statement Printed

6
Deliver Election
Process
Confirmation E: Verify S
Statement Printed to
Employee

M – BN03 / 4

End

449
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Business Process BN-03

BN-03 Benefits – Administration Process (Overview) (Control Points)

A – BN03 / 1 SHARE determines the benefit eligibility for each employee based on the database employee information.

M – BN03 / 2 Employee approves the benefit request before it is entered into SHARE System.

A – BN03 / 3 SHARE performs an On-Line Finalization/Validation in order to allocate the benefits data to each eligible employee.

Employee verifies the election Confirmation Statement Printed in order to identify any discrepancies to the selected
M – BN03 / 4
benefit.

M – BN03 / 5 Benefit Vendor verifies the received benefit data in order to identify any discrepancies to the received file.

450
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Business Process BN-04

BN-04 Benefits – Leave Accrual Management

Agency HR / Benefits Staff General Services Department / Central Payroll
Risk Management Division Bureau (CPB)

Employee Request
for a Leave

Note: Annual Leave/Sick

Leave or Donation
Reques t
1
Agency receive
Annual Leave /Sick
Leave Request

Request 2
No
Approved? Return to Employee
9
M – BN04 / 1
Yes

3 Process To
Manually Calculate A: Authorize PY-02.1
D: Verify I
Hours For Donation

Process
Process A: Authorize
A: Authorize B: Record
E: Verify S E: Verify S
4 5
Balance Adjustment Update Employee
Approval (Leave Pay Sheet with
Balance) Balance Updates
M – BN04 / 3
M – BN04 / 2

6
8
Enroll Employee in 7
Leave Accrual
Leave Plan into Audit Enrollments
Processing
SHARE
Process M – BN04 / 4
A: Authorize
B: Record
Process Process
D: Verify S
A – BN04 / 5 B: Record

A – BN04 / 6
10
Balances Available
Online to the Balances Maintained
Employees in Database

Process
A: Authorize Process
D: Verify I F:
Reconcile
9
End Maintain Leave
Accrual Schedules

451
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Business Process BN-04

BN-04 Benefits – Leave Accrual Management (Control Points)

M – BN04 / 1 Agency Manager approves the Annual Leave/Sick Leave Donation Request before it is entered into the system.

Agency personnel verifies if the Balance Adjustment Approval (Leave Balance) is in accordance with the calculated
M – BN04 / 2
leave balance.

M – BN04 / 3 CPB approves the updated Employee Pay Sheet with Balance Updates into SHARE.

M – BN04 / 4 General Services Department / Risk Management Division is responsible for performing Audit procedures on the Leave
Accrual Management.

A – BN04 / 5 System Access limits enrolling employees in leave plan to authorized personnel.

A – BN04 / 6 System Access limits Leave Accrual processing to authorized personnel.

452
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Business Process BN-05

BN-05 Benefits – COBRA Administration Process (Terminated Employees)

Agency HR / General Services Department /
Benefits Staff/ Third Risk Management Division/ Third Party
Party Administrator Administrator

COBRA Benefits Set-Up Process

Terminated
Employee

3 Receive Reply From Process

Process COBRA Employee A: Authorize
Eligibility Letter D: Verify I

From Process
B: Record
HR-07
Process
A: Authorize
D: Verify I
E: Verify S Employee 4
Requests No Process Denial in End
Yes
Benefits? SHARE System
1
Terminate Benefits M – BN05 / 1
Yes
M – BN05 / 2

6 To
5
Is COBRA Enroll Employee in BN-06
Process Plan
Eligible? COBRA Benefits - A
Enrollments
Billing
Process
B: Record
2
Process Employee No
Benefit Admin
Action
Secondary Letter Secondary COBRA
End Eligibility Letter

Employee Loses
Benefits Eligibility
Terminate Cobra Benefits Process
Process
A: Authorize
Terminate COBRA Coverage D: Verify I

Benefits Expired?
From
BN-07
A 7
No COBRA Process
Yes Termination and End
Generate Coverage
Termination Letter
8 Employee
Cancellation due to No Cancelling
Non Payment Coverage?

From
9
BN-06
Terminate the
B
Employee Billing
Process
B: Record

453
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Business Process BN-05

BN-05 Benefits – COBRA Administration Process (Terminated Employees) (Control Points)

M – BN05 / 1 Employee must approve the COBRA Benefit enrollment, before it is inputted into the SHARE.

M – BN05 / 2 Risk Management Personnel confirm COBRA eligibility prior to processing Eligibility Letter.

454
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Business Process BN-06

BN-06 Benefits – COBRA Billing Administration

General Services Department /
Risk Management Division/ Third Party
Administrator
COBRA Billing Enrollment COBRA Benefits Payment

From From
BN-05 BN-07 COBRA Payments
A B from Employees

To
1
Process BN-05 Employee pays
COBRA Billing No
A: Authorize B the Bill?
Process requested

A – BN06 / 2 Yes
A – BN06 / 2

4
2 3 6
SHARE System 5
COBRA Billing Enrollments Process Adjustments
Calculates the Enter Payments into
Enrollments Entered Generated on (Payments x
charges to each SHARE System
into SHARE SHARE Charges)
employee

A – BN06 / 1
Process Process Process
B: Record F: Reconcile B: Record

Print/Deliver
Statements to
Employee

End

455
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 2 – Benefits
Business Process BN-06

BN-06 Benefits – COBRA Billing Administration (Control Points)

A – BN06 / 1 System obtains the Payments and Billed amount in order to calculate the charges to each employee.

A – BN06 / 2 SHARE restricts access to authorized personnel.

456
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 3 – Recruitment
HR-3

HR 3 – Recruitment

Policies and Procedures

Business Processes

Beginning of Document

457
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 3 – Recruitment
Policies & Procedures HR-3.1

HR 3.1 Recruit Workforce – Classified

A. MAP Standard

To assure creation or change in job positions and classifications using only the methods and
procedures authorized by state law, rules, and regulations.

B. Purpose

This policy establishes the job position creation and change methods available to state agencies.

C. Authority

NMSA 1978, §10-9-12, §10-9-13 (A) (B)

New Mexico State Personnel Board Rules and Regulations, Rule 1.7.3.9 NMAC (10-15-05)
New Mexico State Personnel Board Rules and Regulations, Rule 1.7.4.8 NMAC (06-15-10)

D. Policy

1. State agency shall enter job posting into NEOGOV.

2. State Personnel Office (SPO) shall review and approve job posting.

3. After job posting closed, SPO or state agency shall review applications/resumes and apply rating
criteria, issue ranked list and select a candidate for hire.

E. Applicability

This policy applies to all classified state agencies with the exception of:

1. officials elected by popular vote;

2. members of boards and commissions and heads of state agencies appointed by the governor;
3. heads of state agencies appointed by boards and commissions;
4. directors of department divisions;
5. those in educational institutions and in public schools;
6. those employed by state institutions and by state agencies providing educational programs and
who are required to hold valid certificates as certified school instructors as defined in NMSA
1978, §22-1-2, issued by the state board of education;
7. those in the governor’s office;
8. those in the state militia or the commissioned officers of the New Mexico state police division of
the department of public safety;
9. those in the judicial branch of the government;
10. those in the public defender department, upon implementation of personnel policies and rules by
the public defender commission;
11. those in the legislative branch of the government;
12. not more than two assistants and one secretary in the office of each official listed in Subsections
1, 2 and 3 of this section, excluding members of boards and commissions in subsection 2;
13. those of a professional or scientific nature which are temporary in nature;

458
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 3 – Recruitment
Policies & Procedures HR-3.1

14. those filled by patients of inmates in charitable, penal or correctional institutions; state employees
if the personnel board in its discretion decides that the position is one of policymaking;

15. disadvantaged youth under 22 years of age regularly enrolled or to be enrolled in a secondary
educational institution approved by the state board of education or in an accredited state
institution of advanced learning or vocational training and who are to be employed for not more
than 720 hours during any calendar year.

F. Procedures

State Agency HR Staff

1. Enter requisition into NEOGOV. Submit requisition to SPO.

Note: Certain SPO-identified state agencies are given full or partial line authority to post frequent
positions without SPO review.

SPO

2. Review the job posting and determine whether job posting complies with regulations, budget,
completeness, validity).

3. If the job posting fails to pass the review, return the job posting to the originating state agency.

State Agency HR Staff

4. If the job posting is returned by SPO, correct the errors and resubmit.

SPO

5. If the job posting passes the review, approve in NEOGOV and post the job.

State Agency HR Staff

6. Collect applications in NEOGOV.

7. Close job posting. NEOGOV screens applications and assigns ratings to applicants.

8. Issue ranked applicant list to agency requestor.

9. Interview and select a candidate.

10. Begin HR hire process.

459
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 3 – Recruitment
Policies & Procedures HR-3.2

HR 3.2 Recruit Workforce – Nonclassified

A. MAP Standard

To assure creation or change in job positions and classifications using only the methods and
procedures authorized by state law, rules, and regulations.

B. Purpose

This policy establishes the job position creation and change methods available to state agencies.

C. Authority

NMSA 1978, §10-9-4

D. Policy

1. State agency shall advertise for vacant positions using their own systems/procedure approved for
use in the unclassified agencies salary plan.

2. After job posting closed, state agency shall review applications/resumes and apply rating criteria,
issue list and select a candidate from the population.

E. Applicability

1. This policy applies to all nonclassified state agencies as defined in NMSA 1978, §10-9-4.

F. Procedures

State Agency HR Staff

1. HR Approver advertise vacant position in salary plan specific system in accordance with its own
policies and procedures.

2. Post the job (nonclassified state agencies are not required to post jobs on standard government job
board).

3. Collect applications, close job posting. SHARE assigns rating to applicants.

4. Issue applicant list to requestor.

5. Interview and select a candidate.

6. Begin HR hire process.

460
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 3 – Recruitment
Business Process RC-01

RC-01 Recruit Workforce – Classified

Agency HR Staff Applicant State Personnel Office
(SPO)
From
HR-01 Note: Certain SPO-identified agenci es are
given full or partial line authority to post
frequent positions without SPO review

M – RC01 / 2

A – RC01 / 1 M – RC01 / 3 1
Enters requisition Reviews
into NEOGOV submitted posting
Process requirements
A: Authorize
D: Verify I
E: Verify S
Process
D: Verify I
E: Verify S

2
Inform No Approved?
Agency

Yes

5
Job Closes, 4 3
NEOGOV applies Submits Application Job is posted
rating criteria

A – RC01 / 1

6
Issues Applicant List

7
Interviews/selects
candidate

To
HR-02

461
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 3 – Recruitment
Business Process RC-01

RC-01 Recruit Workforce – Classified (Control Points)

A – RC01 / 1 Restricted system access to create Job Postings in NEOGOV in order to prevent unauthorized job postings.

M – RC01 / 2 Job postings reviewed and approved by appropriate level of management prior to entry into NEOGOV.

M – RC01 / 3 State Personnel Office approval required for positions to be posted in order to prevent unauthorized job postings.

462
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 3 – Recruitment
Business Process RC-02

RC-02 Recruit Workforce – Non-Classified

Agency HR Staff Applicant

From
HR-01 Process
A: Authorize
D: Verify I
E: Verify S

1
HR/Approver M – RC02 / 1
advertises job
posting

2 3
Job is posted Submits Application

4
Job Closes, HR
applies rating
criteria

5
Issues
Applicant List

6
Candidate
interviews, Selection

To HR-
02

463
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 3 – Recruitment
Business Process RC-02

RC-02 Recruit Workforce – Non-Classified (Control Points)

M – RC02 / 1 Job postings reviewed and approved by appropriate level of management prior to entry into SHARE system.

464
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 4 – Time and Labor
HR-4

HR 4 – Time and Labor

Policies and Procedures

Business Processes

Beginning of Document

465
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 4 – Time and Labor
Policies & Procedures HR-4.1

HR 4.1 Time Processing/Time Approval Process

A. MAP Standard

To ensure compliance, state agencies must have internal controls for handling work time reported.

B. Purpose

This policy establishes requirements and procedures for reporting and certification of employee hours
worked.

C. Authority

NMSA 1978, §10-9-17 (1961)

D. Policy

1. State agencies must provide Financial Control Division (FCD) with a list of the names and
signatures of all Managers/Timekeepers authorized to approve reported time by the state agency’s
employees. The authorized list must be signed and approved by a cabinet secretary or state
agency director.

2. Authorized Managers/Timekeepers are entered into SHARE HCM module.

3. Employees must enter exception time into SHARE HCM module for each pay period by FCD’s
stipulated deadline. State agency Managers/Timekeepers may enter exception time in lieu of
employee entry.

4. State agency Managers/Timekeepers must approve payable time entered into the SHARE HCM
module by FCD’s stipulated deadline.

5. State agency human resource personnel must review and clear all time and labor exceptions in
SHARE HCM module by FCD’s stipulated deadline.

6. Central Payroll Bureau (CPB) reviews time posted in SHARE HCM for approval and exceptions.

7. CPB loads the payroll information into payroll distribution for ACH/warrant payments.

E. Applicability

This policy applies to all state agencies who process payroll through SHARE HCM.

F. Procedures

Employee

1. Reports time exception into SHARE HCM.

466
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 4 – Time and Labor
Policies & Procedures HR-4.1

2. Employee with positive pay schedule reports regular and/or exceptions in SHARE HCM.

3. Enter elapsed exception time (annual leave, sick, etc.)/enter exception punch time (in, out, etc.).

Manager/Timekeeper (Time Approval Process)

4. Collect time sheets, time cards.

5. As appropriate, Managers/Timekeepers enter employee Exception/Punch Time.

6. Time administration (batch rules processing) processing.

7. Audit – manage time and labor exceptions.

8. Managers/Timekeepers approve payable time.

DFA Central Payroll

9. Audit – review for time and labor exceptions and approval.

10. Monitor – time administration process.

11. Load time to payroll on SHARE HCM.

467
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 4 – Time and Labor
Policies & Procedures HR-4.2

HR 4.2 Table Maintenance

A. MAP Standard

To ensure compliance, state agencies must have internal controls for employee records.

B. Purpose

This policy establishes requirements and procedures for maintaining and updating of employee
assignments.

C. Authority

NMSA 1978, §10-9-17 (1961) and §12-5-2 (1987)

New Mexico State Personnel Board Rules and Regulations, Rule 1.7.6.9 NMAC (11-30-00)

D. Policy

1. Each year, prior to December 1, the Board of the State Personnel Office shall publish the dates on
which legal public holidays as designated in NMSA 1978, §12-5-2, shall be observed for the next
calendar year. Those dates are entered into SHARE HCM by CPB.

2. Changes in employee’s workgroup or schedule are approved and entered into SHARE HCM.

E. Applicability

This policy applies to all state agencies who process payroll through SHARE HCM.

F. Procedures

Payroll Table Maintenance Process

State Agency HR/Payroll

1. Request new schedule creation in SHARE HCM.

CPB

2. Approve and configure new schedule into SHARE HCM.

State Agency HR/Payroll

3. Update employee record with new schedule.

4. Inform employee of changes.

468
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 4 – Time and Labor
Policies & Procedures HR-4.2

Workgroup /Task Profile Maintenance

State Agency HR/Payroll

1. Request new workgroup/task profile creation.

CPB

2. Enter approved request into SHARE HCM.

State Agency HR/Payroll

3. Update employee record with new workgroup.

4. Inform employee of changes.

469
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 4 – Time and Labor
Business Process TL-01

TL-01 Time & Labor – Time Processing

Agency HR / Employee Manager / Central Payroll
Payroll Timekeeper Bureau (CPB)

Reports the time into

SHARE System 3
Collect Time Sheets, Process
Time Cards E: Verify S
Process
A: Authorize
2
Enter Elapsed M – TL01 / 3
Exception Time Process
and Exception 4 A: Authorize
Punch Time As Appropriate,
M – TL01 / 6 Managers/ 8
Timekeepers Enter Audit – Review for
Employee M – TL01 / 5 Exceptions and
M – TL01 / 7 Exception/Punch
1 Approval
Time
Enroll Time Reporters,
Assign Schedules,
Enroll in
Process
Compensatory Time E: Verify 1
Plans 9
5
Monitor - Time
Time Administration
Admin Process
(Batch Rules
Processing)

10
6 Load Time to
SHARE Runs Audit -Manage Payroll on SHARE
Process
A: Authorize
the Group Exceptions
Refresh Process
every 2 hours
Process
A: Authorize
To
D: Verify I PY-02
7 E: Verify S
Managers/
Timekeepers
Approve Payable
M – TL01 / 1 Process
Time A: Authorize
D: Verify I
A – TL01 / 2 11 E: Verify S

Enters Exceptions
M – TL01 / 5

M – TL01 / 4

12
LFC Employees
report exceptions

Need to report the

time exceptions into
the system

470
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 4 – Time and Labor
Business Process TL-01

TL-01 Time & Labor – Time Processing (Control Points)

M – TL01 / 1 The Employees Manager or the Timekeepers approve time entered into the SHARE system by the employee.

A – TL01 / 2 SHARE only allows the time to be loaded into payroll database after Managers/Timekeepers approval.

CPB will only process payroll for approved employee time. Identified exceptions are reviewed and corrected prior to
M – TL01 / 3
payroll generation.

All LFC Employee exceptions are reviewed and approved by an individual in HR who is systematically prevented from
M – TL01 / 4 adding or modifying employee data, generating employee payroll, creating employee payroll check or direct deposit,
perform the payroll reconciliation.

M – TL01 / 5 Segregation of duties are in place that prevent the same individual from entering and approving employees time.

M – TL01 / 6 Authorized Managers/Timekeepers Enroll Time Reporters, Assign Schedules, Enroll in Compensatory Time Plans.

M – TL01 / 7 Employee confirms time is reported accurately or enters any exceptions into the system.

471
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 4 – Time and Labor
Business Process TL-02

TL-02 Time & Labor – Table Maintenance

Agency HR / Payroll Central Payroll Bureau
(CPB)

From
Holiday Schedule and
PY-05 Calendar Maintenance
Needs Payroll Table
Maintenance
No
(Holidays)

1
Needs Payroll Table Request New
Approved?
Maintenance Schedule Creation
1 8
on SHARE
Holidays Defined
Process
A: Authorize
B: Record
M – TL02 / 1 Yes D: Verify I

Process
A: Authorize 3 2 9
Update Employee Enter Approved Maintain Holiday
Record with new Request into Schedule and
Schedule SHARE Calendars

To 4 End
PY-05 Inform Employee of
changes

7
Process
A: Authorize Update Employee Exception Time
Record with new (Legislative Employees)
Workgroup

Needs Payroll
Exception Time
(Legislative
5 6 Employees)
Needs Workgroup Process
Request New Enter Approved
Task Profile Approved? Yes A: Authorize
Workgroup Task Request into B: Record
Maintenance
Profile Creation SHARE 10
D: Verify I

Enters Exception
M – TL02 / 2 Time for Legislative
Employees (Salaried)
Inform Employee as to the as needed
Workgroup/Task Profile No
Assignment Process
A: Authorize
B: Record
D: Verify I
End

472
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 4 – Time and Labor
Business Process TL-02

TL-02 Time & Labor – Table Maintenance (Control Points)

M – TL02 / 1 All New Schedule Creations are reviewed and approved by CPB prior to being input into the SHARE database.

M – TL02 / 2 All New Workgroup Task Profile Creations are reviewed and approved by CPB prior to being input into the SHARE
database.

473
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 4 – Time and Labor
Business Process TL-03

TL-03 Time & Labor – Time Approval Process

Employee Manager / Timekeeper

Need to report the

time into the System

Process
A: Authorize

1 2
Perform the time Time Administration
entry applies rules

3
Time is ready for
approval by
Manager/Supervisor/
Time Approver

Process
4 A: Authorize
D: Verify I
Manager/Supervisor/
Time Approver
views daily time M – TL03 / 1
entries for an
individual employee M – TL03 / 3
Process
Process
A: Authorize
B: Record
E: Verify S

5 6 To
Time Entry
Yes Manager/Supervisor Load Time to PY-02a
Correct?
approves time Payroll on SHARE

No M – TL03 / 3 A – TL03 / 2

7
Contact employee
for clarification

474
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 4 – Time and Labor
Business Process TL-03

TL-03 Time & Labor – Time Approval Process (Control Points)

M – TL03 / 1 The Employees Manager or the Timekeepers approve time entered into the SHARE system by the employee.

A – TL03 / 2 SHARE only allows the time to be loaded into payroll database after Managers/Timekeepers approval.

M – TL03 / 3 Segregation of duties are in place that prevent the same individual from entering and approving employees time.

475
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 5 – Human Resources
HR-5

HR 5 – Human Resources

Policies and Procedures

Business Processes

Beginning of Document

476
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 5 – Human Resources
Policies & Procedures HR-5.1

HR 5.1 Position Creation/Change Process

A. MAP Standard

To assure creation or change in job positions and classifications using only the methods and
procedures authorized by state law, rules, and regulations.

B. Purpose

This policy establishes the job position creation and change methods available to state agencies.

C. Authority

NMSA 1978, §10-9-12 and §10-9-4

New Mexico State Personnel Board Rules and Regulations, Rule 1.7.3.9 NMAC (10-30-12)
New Mexico State Personnel Board Rules and Regulations, Rule 1.7.4.8 NMAC (10-30-12)

D. Policy

All new positions created or changed shall be made pending:

1. Budget approval by the State Budget Division (SBD) of the Department of Finance and
Administration (DFA).

2. Classification and organizational review and approval by the Director of the State Personnel
Office (SPO).

Note: If the position is disapproved by either or both of the DFA or the SPO, the documentation shall
be returned to the state agency for further documentation and/or corrections.

E. Applicability

This policy applies to all classified state agencies with the exception of:

1. officials elected by popular vote;

2. members of boards and commissions and heads of state agencies appointed by the governor;
3. heads of state agencies appointed by boards and commissions;
4. directors of department divisions;
5. those in educational institutions and in public schools;
6. those employed by state institutions and by state agencies providing educational programs and
who are required to hold valid certificates as certified school instructors as defined in NMSA
1978, §22-1-2, issued by the state board of education;
7. those in the governor’s office;
8. those in the state militia;
9. those in the judicial branch of the government;

477
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 5 – Human Resources
Policies & Procedures HR-5.1

10. those in the public defender department, upon implementation of personnel policies and rules by
the public defender commission;
11. those in the legislative branch of the government;
12. not more than two assistants and one secretary in the office of each official listed in Subsections
1, 2 and 3 of this section, excluding members of boards and commissions in subsection 2;
13. those of a professional or scientific nature which are temporary in nature;
14. those filled by patients of inmates in charitable, penal, or correctional institutions;
15. state positions if the personnel board in its discretion decides that the position is one of
policymaking;
16. disadvantaged youth under 22 years of age regularly enrolled or to be enrolled in a secondary
educational institution approved by the state board of education or in an accredited state
institution of advanced learning or vocational training and who are to be employed for not more
than 720 hours during any calendar year.

F. Procedures

State Agency HR Staff

1. Define a Budget Position at state agency level. Create position in PeopleSoft within parameters
of annual budget and submit to SBD for budget approval.

SBD

2. Review the submitted Budget Position and all supporting documentation as to compliance with
(annual budget, completeness, and correctness of data).

3. If the Budget Position passes review, submit to SPO for Classification/Organizational Structure
Review and Approval.

4. If there are errors or if the supporting documentation requires further justification or explanation,
return the documentation to the originating state agency for correction.

SPO

5. Review the submitted Budget Position and all supporting documentation as to compliance with
(organizational structure, completeness, and correctness of data).

6. If the Budget Position passes review, inform Agency that Budget Position is ready for Hire
Recruitment.

7. If there are errors or if the supporting documentation requires further justification or explanation,
return the document to the originating state agency for correction.

State Agency HR Staff

8. If the job requisition is returned by SPO, correct the errors and resubmit to the SPO.

9. Once the job requisition is approved by the SPO, the Budget Position is ready for recruitment.

478
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 5 – Human Resources
Policies & Procedures HR-5.1

10. Begin recruitment.

SBD

11. Biweekly, reconcile the new budget positions to entries in the SHARE system.

479
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 5 – Human Resources
Policies & Procedures HR-5.2

HR 5.2 Hiring Process

A. MAP Standard

To assure hiring of job positions using only the methods and procedures authorized by State law,
rules, and regulations.

B. Purpose

This policy establishes the job hiring methods available to state agencies.

C. Authority

NMSA 1978, §10-9-4

New Mexico State Personnel Board Rules and Regulations, Rule 1.7.2.12 NMAC (10-30-12)
New Mexico State Personnel Board Rules and Regulations, Rule 1.7.4.12 NMAC (10-30-12)
New Mexico State Personnel Board Rules and Regulations, Rule 1.7.5.10 NMAC (10-30-12)
New Mexico State Personnel Board Rules and Regulations, Rule 1.7.5.12 NMAC (10-30-12)

D. Policy

1. Two methods are available to state agencies for hiring for open positions.

a. Recruitment Waiver (Recruitment through SPO) – subject to budget availability, the state
agency shall document that the hire is within the parameters set by SPO, and that the Hire is
within the parameters set by the appropriate pay band, or if a transfer, that the transfer is
within the parameters set by allowable salary increase or decrease.

b. Direct Hire (Exception to regular Recruitment process requires SPO approval) – subject to
budget availability, the state agency shall document that the hire is within the parameters set
by the SPO and that the hire is within the parameters set by the appropriate pay band, or if a
transfer, that the hire is within the parameters set by allowable salary increase or decrease.

For both types of Hires 1a and 1b, if the hire is outside of the parameters of the SPO
Rules and Regulations, the state agency submits documentation to SPO for approval prior to date
entry into SHARE.

If the hire is disapproved by the SPO, the documentation shall be returned to the state agency for
further documentation and/or corrections.

E. Applicability

This policy applies to all classified state agencies with the exception of:

1. officials elected by popular vote;

2. members of boards and commissions and heads of state agencies appointed by the
governor;
3. heads of state agencies appointed by boards and commissions;

480
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4. directors of department divisions;

5. those in educational institutions and in public schools;
6. those employed by state institutions and by state agencies providing educational
programs and who are required to hold valid certificates as certified school instructors as defined
in NMSA 1978, §22-1-2, issued by the state board of education;
7. those in the governor’s office;
8. those in the state militia or the commissioned officers of the New Mexico state police
division of the department of public safety;
9. those in the judicial branch of the government;
10. those in the public defender department, upon implementation of personnel policies and
rules by the public defender commission;
11. those in the legislative branch of the government;
12. not more than two assistants and one secretary in the office of each official listed in
Subsections 1, 2 and 3 of this section, excluding members of boards and commissions in
subsection 2;
13. those of a professional or scientific nature which are temporary in nature;
14. those filled by patients of inmates in charitable, penal or correctional institutions;
15. state employees if the personnel board in its discretion decides that the position is one of
policymaking;
16. disadvantaged youth under 22 years of age regularly enrolled or to be enrolled in a
secondary educational institution approved by the state board of education or in an accredited
state institution of advanced learning or vocational training and who are to be employed for not
more than 720 hours during any calendar year.

F. Procedures

Classified Agency

State Agency/HR Staff

1. If hiring for an open position qualifies as Standard Hire and hiring is within the parameters set by
the appropriate pay band, proceed with and complete the New Hire.

2. If hiring for open position does not qualify as a Standard Hire and is instead considered a Direct
Hire, submit documentation to the SPO that the hire is within the parameters set by emergency
appointments by the SPO and that the hire is within the parameters set by the appropriate pay
band, or if a transfer, that the hire is within the parameters set by allowable salary increase or
decrease.

3. If hiring for open position (Standard Recruitment Hire or Direct Hire) is not within the
parameters set by the appropriate pay band, state agency submits documentation, justifying the
reasons for the hire not being within the appropriate parameters, to the SPO and requests to
proceed with the New Hire.

SPO

4. Review the submitted Direct Hire and all supporting documentation and determine whether the
hire is within the parameters set by emergency appointments by the SPO and that the hire is

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Policies & Procedures HR-5.2

within the parameters set by the appropriate pay band, or if a transfer, that the hire is within the
parameters set by allowable salary increase or decrease.
5. If the new hire is outside the parameters set by the SPO Rules and Regulations (Recruitment
Waiver), review the submitted Recruitment Waiver documentation and determine whether the
state agency should proceed with the hire.

6. If there are errors or if the supporting documentation requires further justification or explanation,
return the document to the originating state agency for correction. Use the appropriate Document
Rejection Transmittal form to identify the error(s) and needed corrections.

State Agency HR Staff

7. If the Direct Hire or New Hire outside the appropriate pay band parameters is approved by SPO,
proceed with and complete the New Hire.

8. If the Direct Hire or New Hire outside the appropriate pay band parameters is not approved by
SPO, correct the errors and resubmit to the SPO.

SPO Quality Assurance

9. Quarterly, reconcile the New Hire Listing to entries in the SHARE system.

Nonclassified State Agency

State Agency HR Staff

10. Proceed with and complete the New Hire using either the Direct Hire or Hire from Recruit
process.

Note: AOC/AODA process includes obtaining approval from AOC/AODA HR if outside salary
parameters; GOVX process requires approval from Governor and Cabinet Secretary at DFA

Quality Assurance

11. Quarterly, reconcile the New Hire Listing to entries in the SHARE system.

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Policies & Procedures HR-5.3

HR 5.3 Changes in Salary

A. MAP Standard

To assure salary changes using only the methods and procedures authorized by State law, rules, and
regulations.

B. Purpose

This policy establishes the pay rate change methods available to state agencies.

C. Authority

NMSA 1978, §10-9-4

New Mexico State Personnel Board Rules and Regulations, Rule 1.7.4.8 NMAC (10-30-12)
New Mexico State Personnel Board Rules and Regulations, Rule 1.7.4.12 NMAC (10-30-12)
New Mexico State Personnel Board Rules and Regulations, Rule 1.7.5.10 NMAC (10-30-12)
New Mexico State Personnel Board Rules and Regulations, Rule 1.7.5.12 NMAC (10-30-12)

D. Policy

1. Two methods are available to state agencies for pay rate changes.

a. Legislative Authorized Salary Increase – increase in state employees pay is specifically

authorized by legislative action.

b. Individual Salary Change — subject to budget availability, the state agency shall document
that the salary change is within the parameters set by the SPO Rules and Regulations.

If the salary change is disapproved by either or both of the DFA or the SPO, the documentation shall
be returned to the state agency for further documentation and/or corrections.

E. Applicability

This policy applies to all classified state agencies with the exception of:

1. officials elected by popular vote;

2. members of boards and commissions and heads of state agencies appointed by the
governor;
3. heads of state agencies appointed by boards and commissions;
4. directors of department divisions;
5. those in educational institutions and in public schools;
6. those employed by state institutions and by state agencies providing educational
programs and who are required to hold valid certificates as certified school instructors as defined
in NMSA 1978, §22-1-2, issued by the state board of education;
7. those in the governor’s office;

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8. those in the state militia;

9. those in the judicial branch of the government;
10. those in the public defender department, upon implementation of personnel policies and
rules by the public defender commission;
11. those in the legislative branch of the government;
12. not more than two assistants and one secretary in the office of each official listed in
Subsections 1, 2 and 3 of this section, excluding members of boards and commissions in
subsection 2;
13. those filled by patients of inmates in charitable, penal or correctional institutions;
14. state employees if the personnel board in its discretion decides that the position is one of
policymaking;
15. disadvantaged youth under 22 years of age regularly enrolled or to be enrolled in a
secondary educational institution approved by the state board of education or in an accredited
state institution of advanced learning or vocational training and who are to be employed for not
more than 720 hours during any calendar year.
16. those of a professional or scientific nature which are temporary in nature.

F. Procedures

State Agency HR Staff

1. If the pay rate change qualifies as a Legislative Authorized Salary Increase, proceed with and
complete the pay rate change process.

2. If the pay rate change does not qualify as a Legislative Authorized Salary Increase and is instead
considered an Individual Salary Change but is within, document that the salary change is within
parameters set by the SPO Rules and Regulations, proceed with and complete the pay rate
change.

3. If the Pay Rate Change does not qualify as a Legislative Authorized Salary Increase and is instead
considered an Individual Salary Change and is not within parameters, document the salary change
and submit for approval. Classified state agencies submit to SBD and SPO, and AOC/AODA
submit to Salary Plan Administrator.

4. After approval, enter a Pay Rate Change into PeopleSoft.

5. SHARE system runs process approval and distributes warning for invalid data.

Note: AOC, AODA, and LGIS do not require SPO or DFA approval for pay increases; GOVX
requires only DFA Cabinet Secretary or Governor’s Office approval.

SBD

6. Review the submitted pay rate change and all supporting documentation to ensure compliance
with (annual budget, policy, completeness, and correctness of data).

7. If the pay rate change passes review, submit to SPO for review and approval.

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8. If there are errors or if the supporting documentation requires further justification or explanation,
return the document to the originating state agency for correction.

SPO (or Salary Plan Administrator)

9. Review the submitted pay rate changes and all supporting documentation as to completeness and
correctness of data.

10. If the pay rate change passes review, inform the originating state agency to proceed with and
complete pay rate change.

11. If there are errors or if the supporting documentation requires further justification or explanation,
return the document to the originating state agency for correction.

State Agency HR Staff

12. If the pay rate change request is returned by SBD, SPO or other Salary Plan Administrator,
correct the errors and resubmit.

13. If the pay rate change is approved by SBD, SPO or other Salary Plan Administrator, proceed with
and complete the pay rate change.

14. Biweekly, reconcile the pay rate change to entries in the SHARE system.

485
System Administration, Work Breakdown Structure, and Policies_____________________
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HR 5 – Human Resources
Policies & Procedures HR-5.4

HR 5.4 Termination

A. MAP Standard

To assure termination process using only the methods and procedures authorized by State law, rules,
and regulations.

B. Purpose

This policy establishes termination procedures available to state agencies.

C. Authority

NMSA 1978, §10-9-4

New Mexico State Personnel Board Rules and Regulations, Rule 1.7.10.9 NMAC (10-30-12)
New Mexico State Personnel Board Rules and Regulations, Rule 1.7.11 NMAC (10-30-12)

D. Policy

1. Two processes are available to state agencies for termination.

a. Reduction in Force (RIF) – layoff of employees only for deletion of positions, shortage of
work or funds, or other reasons that do not reflect discredit on the services of the employees –
Requires State Personnel Board (Board) approval.

b. Individual Termination – the state agency shall document that the termination process is
within the parameters set by the SPO Rules and Regulations.

If the termination is disapproved by SPO, the documentation shall be returned to the state agency for
further documentation and/or corrections.

E. Applicability

This policy applies to all classified state agencies with the exception of:

1. officials elected by popular vote;

2. members of boards and commissions and heads of state agencies appointed by the
governor;
3. heads of state agencies appointed by boards and commissions;
4. directors of department divisions;
5. those in educational institutions and in public schools;
6. those employed by state institutions and by state agencies providing educational
programs and who are required to hold valid certificates as certified school instructors as defined
in NMSA 1978, §22-1-2, issued by the state board of education;
7. those in the governor’s office;
8. those in the state militia or the commissioned officers of the New Mexico state police
division of the department of public safety;

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Policies & Procedures HR-5.4

9. those in the judicial branch of the government;

10. those in the public defender department, upon implementation of personnel policies and
rules by the public defender commission;
11. those in the legislative branch of the government;
12. not more than two assistants and one secretary in the office of each official listed in
Subsections 1, 2 and 3 of this section, excluding members of boards and commissions in
subsection 2;
13. those of a professional or scientific nature which are temporary in nature;
14. those filled by patients of inmates in charitable, penal or correctional institutions;
15. state employees if the personnel board in its discretion decides that the position is one of
policymaking;
16. disadvantaged youth under 22 years of age regularly enrolled or to be enrolled in a
secondary educational institution approved by the state board of education or in an accredited
state institution of advanced learning or vocational training and who are to be employed for not
more than 720 hours during any calendar year.

F. Procedures

State Agency HR Staff

1. Complete required termination documentation.

2. If the Termination is a Voluntary Resignation, enter the Termination into PeopleSoft and
complete Termination process.

Note: CLSS AOC, AODA, STPL, EXOT, and GOVX enter own terminations; LGIS enters own
terminations or has Central Payroll enter terminations.

3. If the Termination is a Dismissal for Just Cause, submit documentation to SPO for review.

4. If the Termination is a RIF, submit documentation to SPO for Board approval.

SPO

5. If the submitted Termination is a Dismissal for Just Cause, review the submitted supporting
documentation as to (compliance with regulation, completeness, and correctness of data) and
inform the originating state agency of procedural errors or corrections to documentation.

6. If a Dismissal for Just Cause Termination is appealed, the Board reviews the appeal and decides
whether to uphold the state agency’s decision or overturn the decision and enter into a Settlement
Agreement.

7. If the submitted Termination is a RIF, the Board will review the submitted supporting
documentation as to (compliance with regulation, completeness, and correctness of data).

8. If the RIF Termination is approved by the Board, inform the originating state agency to proceed
with and complete the Termination process. The employee is afforded RIF rights.

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9. If there are errors in the RIF Termination, or the supporting documentation requires further
justification or explanation, or the RIF Termination is otherwise fails approval, return the
document to the originating state agency to reconsider termination options.

10. Monthly, reconcile the Termination Listing to entries in the SHARE system.

State Agency HR Staff

11. State agency staff enters the Termination action into SHARE after sending documentation to SPO
for review.

12. State agency enters RIF actions into SHARE after Board approval.

13. Monthly, reconcile the Termination Listing to entries in the SHARE system.

488
System Administration, Work Breakdown Structure, and Policies_____________________
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HR 5 – Human Resources
Business Process HR-01

HR-01 Organizational Development Create Budget Position

Agency HR State Budget Division State Personnel Office

(SBD) (SPO)
1
Process New Budget
A: Authorize Positions outlined in
annual General
House Bill 2

M – HR01 / 1

2
Process Classified Agency -
A: Authorize No
Create Position, Enter
into SHARE

A – HR01 / 2 No

Classification/
Budget Organizational
Yes Process
Approved? Structure Reviewed E: Verify S
and Approved?
Process
E: Verify S
A – HR01 / 3 M – HR01 / 5
M – HR01 / 4
Note: T180/NB180
positions do not require
recruitment process

3
Ready for Hire Yes
Recruitment

Biweekly:
To HR-02a, 5
RC-01 Reconcile the New
Budget Positions to
entries in the
SHARE system.

Process
4 E: Verify M – HR01 / 6
Non-Classified Agency F: Reconcile
-
A – HR01 / 2
Create Position, Enter
into SHARE
Process
A: Authorize
D: Verify I

To HR-
02b, RC-02

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System Administration, Work Breakdown Structure, and Policies_____________________
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HR 5 – Human Resources
Business Process HR-01

HR-01 Organizational Development Create Budget Position (Control Points)

Agency management requests New Budget Positions in a budget proposal through SBD, presented to Legislature for
M – HR01 / 1 funding. Approved New Budget Positions are put into the Genera House Bill 2, which is passed by the Legislature and
signed into law by the Governor.

Restricted system access at Agency HR level to create Budget Position in SHARE in order to prevent unauthorized
A – HR01 / 2
Budget Positions.

When a temp is hired, the agency enters an Expected End Date in Job Data and the 180 day end date as the Effective
A – HR01 / 3
Date in Position Data. The future dated row will not allow any type of processing to take place on the position at all.

M – HR01 / 4 SBD approval required to create Budget Positions for Classified Agencies in SHARE in order to prevent unauthorized
Budget Position.

State Personnel Office approval required to create Budget Positions for Classified Agencies in SHARE in order to
M – HR01 / 5
prevent unauthorized Budget Positions.

Bi-weekly reconciliation of New Budget Position Listing performed at both SBD and SPO in order to detect
M – HR01 / 6
unauthorized Budget Positions.

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System Administration, Work Breakdown Structure, and Policies_____________________
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HR 5 – Human Resources
Business Process HR-02a

HR-02a Workforce Administration Hire an Employee – Classified Agency

Agency HR State Personnel Office
(SPO)

1
Start to Hire an
Employee

From HR-
01 Hire from Direct Hire 2
No No
Recruitment? Approval? Return to Agency

Process Process
A: Authorize M – HR02a / 2 A: Authorize M – HR02a / 1
D: Verify I E: Verify S

Yes
Yes

No

Salary Within
No Approved?
Parameters?

M – HR02a / 1
Yes
Process
A: Authorize
E: Verify S

3
Yes
Complete Hire
A – HR02a / 3

A – HR02a / 4

M – HR02a / 5

To HR-03,
Process
BN-03, PY- A: Authorize
01 F: Reconcile

491
System Administration, Work Breakdown Structure, and Policies_____________________
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HR 5 – Human Resources
Business Process HR-02a

HR-02a Workforce Administration Hire an Employee – Classified Agency (Control Points)

State Personnel Office authorization required for New Hires outside Recruitment Process or Salary Parameters in order
M – HR02a / 1
to prevent unauthorized New Hires.

M – HR02a / 2 Agency supervisor approval required for all New Hires in order to prevent unauthorized New Hires.

A – HR02a / 3 Restricted system access to create New Hire in SHARE system in order to prevent unauthorized New Hires.

Employees cannot be hired in SHARE module until a budget position is created in order to prevent unauthorized New
A – HR02a / 4
Hires.

Quarterly reconciliation of New Hire Listing performed by Quality Assurance in order to detect unauthorized New
M – HR02a / 5
Hires.

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System Administration, Work Breakdown Structure, and Policies_____________________
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HR 5 – Human Resources
Business Process HR-02b

HR-02b Workforce Administration Hire an Employee – Non-Classified Agency

Agency HR

1
Direct Hire

To HR-03,
3 BN-03, PY-
From
Complete Hire 01
HR-01

M – HR02b / 1
2 Process
Hire from Recruit M – HR02b / 2 A: Authorize
D: Verify I
A – HR02b / 3 F: Reconcile

A – HR02b / 4

M – HR02b / 5

Note: AOC/AODA process includes obtaining approval from AOC/AODA HR if outside salary
parameters; GOVX process requires approval from Governor and Cabinet Secretary at DFA.

493
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 5 – Human Resources
Business Process HR-02b

HR-02b Workforce Administration Hire an Employee – Non-Classified Agency (Control Points)

State Personnel Office authorization required for New Hires outside Recruitment Process or Salary Parameters in order
M – HR02b / 1
to prevent unauthorized New Hires.

M – HR02b / 2 Agency supervisor approval required for all New Hires in order to prevent unauthorized New Hires.

A – HR02b / 3 Restricted system access to create New Hire in SHARE system in order to prevent unauthorized New Hires.

Employees cannot be hired in SHARE module until a budget position is created in order to prevent unauthorized New
A – HR02b / 4
Hires.

Quarterly reconciliation of New Hire Listing performed by Quality Assurance in order to detect unauthorized New
M – HR02b / 5
Hires.

Note: Control M – HR02 /1 is not applicable to Non-Classified Agency Process.

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HR 5 – Human Resources
Business Process HR-03

HR-03 Organizational Development Employee Data Maintenance

Employee Agency HR State Personnel
Office (SPO)

2
Enter Un-Paid or
Employee request 1
Paid Leave of
Leave of Absence Leave of Absence
Absence into
SHARE
Process
A: Authorize A – HR03 / 1

4
3 Enter a Data Change
Employee Data
Extension of Term with the New
Changes
Date Expected End Date
From HR-02, into SHARE
HR-04, HR-
05, HR-07

5
Employee 6
Employee To
Completes Form Data Entered into
Responsible for BN-03
SHARE
Completing PERA
System
Form

Process A – HR03 / 1
A: Authorize
Complete Action Yes
M – HR03 / 4
No Process
M – HR03 / 3 E: Verify S

7
Employee Transfer Salary Outside
w/ Pay Increase Due Parameters or
Yes Approved?
to Lateral Otherwise Requiring
Promotion, Class SPO Approval?
Reduction
No
M – HR03 / 2
Process
D: Verify I
8
Return to Agency

From RC-
01, RC-02

Agency HR DFA HR Bureau

DFA HR Bureau
All LFC & LPB-
Enters into SHARE Process
Changes, Transfers,
if not entered by A: Authorize
Adjustments
LFC

A – HR03 / 1

495
System Administration, Work Breakdown Structure, and Policies_____________________
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HR 5 – Human Resources
Business Process HR-03

HR-03 Organizational Development Employee Data Maintenance (Control Points)

Restricted system access at Agency HR level and Central Payroll levels to enter or change all employee data except
A – HR03 / 1
employees’ time & labor preferences in order to prevent unauthorized data changes.

M – HR03 / 2 Supervisor approval required for all Employee Transfers in order to prevent unauthorized Employee Transfers.

State Personnel Office authorization required for certain Employee Transfers within both Classified and Non-Classified
M – HR03 / 3
Agencies in order to prevent unauthorized Employee Transfers.

Periodic reconciliation of Data Changes performed by Salary Plan Administrators in order to detect unauthorized
M – HR03 / 4
employee data changes.

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HR 5 – Human Resources

Business Process HR-04

HR-04 Workforce Administration Pay Rate Changes – Non-Automated

Agency HR State Budget State Personnel Office (SPO)
Division (SBD)

Compensation
Increase/Decrease
Process Entered into SHARE A – HR04 / 1
A: Authorize
D: Verify I
M – HR04 / 2
3
Return to Agency
1
Process Approval A – HR04 / 3
(system reviews for
invalid data) No
Process
D: Verify I
No No

Classified Agency In-Band

Is Pay Rate Change No Increases Yes Approved?
within Parameters? Approved?

M – HR04 / 4 M – HR04 / 5
Process
Process A: Authorize
A: Authorize
AOC/AODA D: Verify I
D: Verify I
Is Pay Rate Change
within Parameters? No

Sal Plan
Administrator
Approval? M – HR04 / 6
Yes Yes
Yes

Process
A: Authorize
D: Verify I
2
Complete Pay Rate Yes
M – HR04 / 7 Change

Process To HR-
F: Reconcile 03

Note: AOC, AODA and LGIS do not require SPO or DFA approval for pay increases; GOVX
requires only DFA Cabinet Secretary or Governor’s Office approval – EXEMPT PROCESS

497
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Business Process HR-04

HR-04 Workforce Administration Pay Rate Changes – Non-Automated (Control Points)

Restricted system access at Agency HR level to create Pay Rate Changes in SHARE in order to prevent unauthorized
A – HR04 / 1
Pay Rate Changes.

Pay Rate Change must be evidenced by signed form from agency management in order to prevent unauthorized Pay Rate
M – HR04 / 2
Changes.

System reviews all Pay Rate Changes and sends notifications of any invalid data in order to prevent inaccurate Pay Rate
A – HR04 / 3
Change data.

M – HR04 / 4 In-Band Increases require approval from SBD and SPO in order to prevent unauthorized Pay Rate Changes.

Classified agency Pay Rate Changes outside parameters require approval from State Personnel Office and State Budget
M – HR04 / 5
Division in order to prevent unauthorized Pay Rate Changes.

Non-classified agency pay rate changes outside parameters require approval from Salary Plan Administrator in order to
M – HR04 / 6
prevent unauthorized Pay Rate Changes.

M – HR04 / 7 Monthly reconciliation of Pay Rate Change Listing performed by Salary Plan Administrator in order to detect
unauthorized Pay Rate Changes.

498
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HR 5 – Human Resources

Business Process HR-05

HR-05 Workforce Administration Position Changes

Agency HR State Budget State Personnel Office (SPO)
Division (SBD)

M – HR05 / 1
1
Submits Position
Change Request

Process
A: Authorize 3 4
Return to Agency Return to Agency

No

M – HR05 / 2

Requires SBD No
Yes Approved?
Approval?

Process
A: Authorize

No
Yes

Requires SPO
Yes Approved?
Approval?

Process
A: Authorize
No
A – HR05 / 4 Process
A: Authorize
M – HR05 / 5 F: Reconcile M – HR05 / 3
2
Complete Position Yes
Change

To HR-
03

Note: Non-Classified Agencies do not require DFA or SPO approval for position change

499
System Administration, Work Breakdown Structure, and Policies_____________________
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HR 5 – Human Resources

Business Process HR-05

HR-05 Workforce Administration Position Changes (Control Points)

Management authorization required on submitted Position Change Request forms in order to prevent unauthorized
M – HR05 / 1
Position Changes.

M – HR05 / 2 SBD approval required for certain Position Changes in order to prevent unauthorized Position Changes.

State Personnel Office approval required for certain Position Changes in order to prevent unauthorized Position
M – HR05 / 3
Changes.

Restricted system access to enter Position Changes at Agency HR level in order to prevent unauthorized Position
A – HR05 / 4
Changes.

Monthly review of Position Change Listing performed by Salary Plan Administrator in order to detect unauthorized
M – HR05 / 5
Position Changes.

500
System Administration, Work Breakdown Structure, and Policies_____________________
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HR 5 – Human Resources

Business Process HR-06

HR-06 Workforce Administration Review & Evaluation

Agency HR

1
Annually, Agency HR 2
obtains Employee Ratings SHARE System
from Agency Mgt and enters Checks for Valid
with Date into E-Evaluation Input
Module

A – HR06 / 1 A – HR06 / 2

M – HR06 / 3
Process
D: Verify I
Process
A: Authorize
F: Reconcile

501
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HR 5 – Human Resources

Business Process HR-06

HR-06 Workforce Administration Review & Evaluation (Control Points)

Restricted system access at Agency HR level to enter Review & Evaluation data into SHARE in order to prevent
A – HR06 / 1
unauthorized Review & Evaluation data.

System review for invalid data in Review & Evaluation process in order to prevent inaccurate Review & Evaluation
A – HR06 / 2
data.

Periodic review for agency, SPO using various EDA Review Listings in order to detect unauthorized Review &
M – HR06 / 3
Evaluation data.

502
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 5 – Human Resources

Business Process HR-07

HR-07 Workforce Administration Termination

Agency HR
State Personnel Office (SPO)

Process 7
A: Authorize 1
Reconsider 6
D: Verify I Termination Form Continue
Termination Return to Agency
completed
Options
M – HR07 / 1

No
End
Process
A: Authorize
Classified D: Verify I
Agency
Reduction in Force (RIF) SPB Approval?
Reason for
Termination? Dismissal for Just Cause
M – HR07 / 2
Process
3 E: Verify S
SPO Review

M – HR07 / 3
Voluntary Resignation Yes
4
SPO informs agency
of procedural errors
Process or corrections to
A: Authorize documentation
F: Reconcile
2 5
Enter Termination Employee afforded
into SHARE RIF rights
A – HR07 / 4
M – HR07 / 5

To HR-03,
BN-03, BN- 8
04, PY-02 Appeals of Dismissal for
Cause Terminations

9
SPB Review?

11
10 Decision overturned
Dismissal for Cause and Settle
decision upheld Agreement entered
into SHARE

Note: AOC, AODA, STPL, EXOT, and GOVX enter own terminations; LGIS enters own terminations
or has DFA HR Bureau enter termination.

503
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 5 – Human Resources

Business Process HR-07

HR-07 Workforce Administration Termination (Control Points)

M – HR07 / 1 Supervisor approval required for all Terminations in order to prevent unauthorized Terminations.

M – HR07 / 2 SPB approval required for all Reduction In Force (RIF) Terminations in order to prevent unauthorized Terminations.

SPO reviews Dismissal for Just Cause Terminations and informs agency of corrections in documentation and procedures
M – HR07 / 3
in order to detect incorrect terminations and maintain legal compliance.

A – HR07 / 4 Restricted system access to enter Terminations at Agency HR level in order to prevent unauthorized Terminations.

Monthly reconciliation of Termination Listing performed by Salary Plan Administrator in order to detect incorrect
M – HR07 / 5
Terminations.

504
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 5 – Human Resources

Business Process HR-08

HR-08 Organizational Development Table Maintenance

State Personnel Office (SPO)

2
1
SHARE Project Team
Additional Field Data
Module Lead enters
Identified Process
updates
A: Authorize
E: Verify S
A – HR08 / 1

M – HR08 / 2

505
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 5 – Human Resources

Business Process HR-08

HR-08 Organizational Development Table Maintenance (Control Points)

A – HR08 / 1 Restricted system access to enter or change table data in order to prevent unauthorized data changes.

M – HR08 / 2 SHARE Module Lead reviews/approves data changes to be entered in order to prevent incorrect data entry.

506
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 6 – Commitment Accounting
HR-6

HR 6 – Commitment Accounting

Policies and Procedures

Business Processes

Beginning of Document

507
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 6 – Commitment Accounting
Policies & Procedures HR-6.1

HR 6.1 Commitment Accounting

A. MAP Standard

To ensure compliance with the Personnel Act regarding recording of employee compensation.

B. Purpose

This policy establishes requirements and procedures for employee budget, confirmation of data and
general ledger posting for each pay period.

C. Authority

NMSA 1978, §10-9-17 (1961)

D. Policy

1. The Department of Finance and Administration Central Payroll Bureau (CPD) shall review
agency department budgets and Chartfields.

2. After approval of employee time entries, CPD shall calculate and confirm pay.

3. After payroll has run, CPD shall distribute payroll data and upload into the general ledger.

E. Applicability

This policy applies to all state agencies who process payroll through SHARE HCM.

F. Procedures

Setup

1. Department Budget Table (Accounting Defaults)/Accounting Tables (From GL) Chartfield

Review & Analysis.

2. SHARE sends the information/data to the Payroll Process.

Time & Labor/Payroll

3. Payroll receives the data and the Time & Labor entries. Distribution Accounting data can be
specified on the T&L Task Profile, or on a specific time line specified at Time Entry. This data is
transferred to the Payroll PayLine, which will override the default values that are stored in the
Department Budget and Mapping tables.

4. Performs the Payroll Calculation (PSPPYRUN) into SHARE.

5. Performs the Pay Confirmation (PSPCNFRM) into SHARE.

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System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 6 – Commitment Accounting
Policies & Procedures HR-6.1

Actuals Distribution

6. Pay Check/Actuals Distribution (PSPPFUND COBOL).

7. SHARE runs an Actuals GL Interface (PAYGL02 SQR). The GL Interface summarizes the
expenses, liabilities and cash accounting transactions.

8. Publish & copies this information to an identical table in the financial system (HR ACCTG LINE
- HRMS and HR ACCTG LINE - FMS) through the database link. The PAYGL02 process takes
the results from the PSPPFUND tables and populates the HR_ACCTG_LINE table in SHARE
HCM as well as the HR_ACCTG_LINE tables in SHARE Financials.

9. Runs the Labor Distribution PAY_ERN_DISTPAY_DED_DIST/PAY_TAX_DIST.

General Ledger

10. Runs a Journal Generator into SHARE (FS_JGEN).

11. Edit and post Journal Entries into SHARE (GL_JEDIT).

509
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 6 – Commitment Accounting
Business Process CA-01

CA-01 Commitment Accounting

Setup Time & Labor / Actuals General Ledger
Payroll Distribution

Note:
Distribution Accounting
data can be specified on the
T&L Task Profile, or on a 7
specific time line specified Pay Check / Actuals
at Time Entry. This data is Distribution
trans ferred to the Payroll
Over Ride / PayLine, which will (PSPPFUND
Mapping Tables override the default values COBOL)
that are stored in the
Department Budget and
Mapping tables.

8
1 3 Runs the Labor Refer to General
Distribution Ledger Process
Department Budget Time & Labor for Details
Table (Accounting (T&L) Employee PAY_ERN_DISTP
Defaults) Time Entry AY_DED_DIST
PAY_TAX_DIST

Process
B: Recording
D: Verify I
E: Verify S
4 A – CA01 / 3
Payroll Process

2
Accounting Tables
(From GL)
ChartField Review 5 9 14
& Analysis Payroll Calculation Actuals GL Interface Performs Journal
into SHARE (PAYGL02 SQR) Entries into SHARE

Note:
The GL Interface
Note:
summ arizes the
Process Journal Generator
distribution
B: Recording creates the Payroll
expenses, applies the
6 Journal from the
offset information
information in the
Pay Confirmation and stores the result
HR Accounting Li ne
on the HR
into SHARE Accounting Line
table.

A – CA01 / 1 table.

13
Process 10
B: Recording Runs a Journal
HR ACCTG LINE
Generator into
(HRMS)
SHARE
A – CA01 / 2

12
Database Link HR ACCTG LINE
(FMS)

510
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 6 – Commitment Accounting
Business Process CA-01

CA-01 Commitment Accounting (Control Points)

Combination Codes are created through Chatfield combination that are normally entered into SHARE HCM. Standard
A – CA01 / 1
combination codes are recreated every fiscal year through an automated process.

A – CA01 / 2 Pay Confirmation must be run before Labor costs can be distributed in order to record the data into SHARE.

A – CA01 / 3 Labor Distribution combines payroll dollars with the accounting information to record earnings, deductions and taxes by
combination codes.

511
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 7 – Project Costing
HR-7

HR 7 – Project Costing

Policies and Procedures

Business Processes

Beginning of Document

512
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 7 – Project Costing
Policies & Procedures HR-7.1

HR 7.1 Project Costing

A. MAP Standard

To ensure the timely and accurate collection of expenditure data related to program specific projects.

B. Purpose

This policy provides state agencies the ability to organize financial information for the purposes of
accounting, analysis, monitoring, billing, and reporting on projects.

C. Authority

NMSA 1978, §6-5-2 (2003)

Rule 2.20.5 NMAC (8-29-03)

D. Definition

A project is defined as an activity requiring the grouping and organization of financial transactions in
order to monitor and report on the conditions of that activity. Sub-activities of the project may be
defined in order to develop the detailed work requirements of the project.

E. Policy

1. Project costing will be used to accumulate and summarize project budgets, time and labor details,
encumbrances, expenditures, cost allocations, operating transfers and journal entries. Project
costing is not to be used for accounting for state-sponsored grants to school districts,
municipalities and counties unless the expenditures are related to a major capital acquisition or
construction project, properly accounted for in a capital projects fund.

2. Project costing can be used in conjunction with grants to account for grants or used independently
to account for non-grant capital projects.

3. Based upon the reporting periods as required of the project monitor, state agencies shall run
project information reports to create expenditure reports and/or billing information for the
appropriate period. The information shall be reviewed for accuracy and verification of detail
information. Documentation shall be gathered, as required, to support reporting requirements of
the project monitor or third parties to the project.

F. Applicability

This policy applies to all state agencies with the responsibility of tracking and monitoring projects.

G. Procedures

State Agency

1. Legislature approves budget or Grants Management requests and provides budget.

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System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 7 – Project Costing
Policies & Procedures HR-7.1

2. Create Project and/or Activities on Project Costing transaction data tables.

3. Accounts Payable, Purchasing, Requisitions, and Time & Labor provide cost accumulation and
transaction adjustments into Project Costing transaction data tables.

4. The PY_Pull_-Cost (project breakdown by hours) distributes payroll actual costs back to Time &
Labor Payable Time in the Labor Distribution Amount, and publishes the Project details across to
Financial Project Costing interface table by the Actual_Time_Batch_Add Integration Broker
message. Journal Entries sent to General Ledger and General Ledger is updated. Capitalized
projects sent to Asset Management.

5. Project Cost Reports (Transaction Level Summary, Queries, etc.) available to project
management.

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System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 7 – Project Costing
Business Process HR PC-01

HR PC-01 Project Costing (Overview)

SHARE System
Process
A: Authorize
1 B: Record
Create Project into D: Verify I
SHARE

Process
A: Authorize
B: Record
2 D: Verify I
Create Activities
into SHARE A – PC01 / 2

M – PC01 / 3

Process
Updates the A: Authorize
Commitment B: Record
Control Module D: Verify I
3
Create Budget into
A – PC01 / 2
SHARE
M – PC01 / 3

Transaction
Adjustment Transaction
Adjustment

From 4
Accounts Payable
Negotiated Rate PO-02 Purchasing Module Accounts Payable
Cost Collection Module
Allocation Module

From Process
A: Authorize
GM-02 B: Record
D: Verify I
E: Verify S Transaction
F: Reconcile Adjustment
Grants Management - F&A Module
Time & Labor 5
Contracts - Revenue Recognition Update Project Resource Module Time & Labor
Module Table
(Project Costing)
10

M – PC01/ 1

6
Contracts

General Ledger Module

Reports used for:

auditing reconciliation Billing Module
or validate
transactions Cost Allocation
Transaction
Adjustment

Project Cost Reports

(Transaction Level To
7
Summary, Queries, etc.) BI-03
General Ledger

515
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 7 – Project Costing
Business Process HR PC-01

HR PC-01 Project Costing (Overview) (Control Points)

Monthly the State Treasurer Office reconciles the Project Costing within each Agencies General Ledger. The
M – PC01 / 1
reconciliation is reviewed and approved by a separate individual.

A – PC01 / 2 System Access only allows authorized person to create budget and activities into SHARE System.

The budget and activities are compared with the support documentation in order to verify if the correct data is entered into
M – PC01 / 3
SHARE database.

516
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 8 – Accounts Payable
HR-8

HR 8 – Accounts Payable

Policies and Procedures

Business Processes

Beginning of Document

517
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 8 – Accounts Payable
Business Process HR AP-09

HR 8.1 Accounts Payable

A. MAP Standard

To ensure compliance, the Department of Finance and Administration (DFA) must have internal
controls for all aspects of payroll deductions due to vendors.

B. Purpose

This policy establishes requirements and procedures for deductions’ accounts payable due for each
pay period.

C. Authority

NMSA 1978, §10-9-17 (1961)

D. Policy

The DFA Central Payroll Bureau (CPB) shall produce all reports necessary for pay period accounts
payable, post SHARE HCM to the general ledger, and disburse all warrants due to employees and
vendors.

E. Applicability

This policy applies to all state agencies who process payroll through SHARE HCM.

F. Procedures

CPB

1. SHARE calculates biweekly payroll for pay period. SHARE calculates pay related to off-cycle
warrants (produced during the same pay period SHARE calculates biweekly payroll). Central
Payroll confirms payroll process is complete.

Note: Off-cycle warrants’ accounting entry produced during the same next regular bi-weekly
payroll.

2. Perform extract of credit entries (identify credit entries).

3. Generate reports and extract the Deduction Register (employee and employer data), Pay Register
(gross-to-net data), Payroll Summary (summarized employee and employer data), and third-party
interface data.

Accounts Payable

4. Create third-party files and send to secure website. Confirm receipt of file and payment and
begin third party payment reporting.

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System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 8 – Accounts Payable
Business Process HR AP-09

5. Provide technical support to third parties as necessary.

CPB

6. Generate employee payment warrants (A warrants) and ACH.

7. Run direct deposit process.

8. Perform cost distributions and post to Projects and FIN General Ledger.

9. Update Financial General Ledger.

Accounts Payable

10. Perform AP processes that extract deductions and taxes, and send to Financials AP staging table `

Note: This process is flawed because it ignores credit entries. Extracting credit entries and creating
credit payment vouchers mitigates this problem.

11. Create credit file and run process to load credits into the voucher build table.

12. Run Voucher Build process in Financials.

13. Check for errors.

14. If errors, a SQL is prepared to make fund code corrections and is sent to DoIT so that they can
run the SQL. Once SQL is completed, re-run voucher build process.

15. Run Budget Check process.

16. Send B-Warrant amount to DFA IT MGR for validation.

17. If total B-Warrant amount matches DFA IT MGR amount, then the B-Warrants are printed.

519
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 8 – Accounts Payable
Business Process HR AP-09

HR AP-09 Accounts Payable

Central Payroll Accounts Payable
Bureau
SHARE calculates SHARE calculates
bi-weekly payroll for pay related to off-
pay period. cycle warrants

A
Note: off-cycle warrants’ Note:This process is flawed
accounting entry produced because i t ignores credit
A – AP09 / 1 during the same next regular entri es. Extracting credit entries
1 bi-weekly payrol l and creating credit payment
10 vouchers mit igat es thi s
Perform “confirm problem.
process” Perform AP extract
Deduction Register of deductions and
(employee and taxes
employer data)
2 M – AP09 / 2
Perform extract of
Process credit entries
A: Authorize
(identify credit 11 Process
M – AP09 / 2 D: Verify I 3rd party A: Authorize
entries) Create payment &
E: Verify S Register D: Verify I
credit vouchers. E: Verify S

Pay Register (gross- 3 Process

to-net data) Generate reports and D: Verify I
E: Verify S 12
extract. Generate B warrants
and wire transfers.
M – AP09 / 2

Payroll Summary
(summarized 4
Process 3rd party payment
employee and Generate A warrants A: Authorize warrants and wire
employer data) and ACH. D: Verify I
E: Verify S transfers

M – AP09 / 2

Process
5 Employee payment A: Authorize B
D: Verify I
Run direct deposit warrants and ACH E: Verify S
3rd party
process.
interface data

14
13
Send to secure web
Create 3rd party files.
site.
6
Perform cost
B
distributions.

15 16
8 Confirm receipt of Provide technical
7 file and payment. support to 3rd parties.
Post to HCM general
Post to projects.
ledger.
Process
B: Record Process
D: Verify I
E: Verify S
9 3rd party payment
Update financial A reporting
general ledger.

520
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 8 – Accounts Payable
Business Process HR AP-09

HR AP-09 Accounts Payable (Control Points)

A – AP09 / 1 System access is restricted to authorized individuals.

M – AP09 / 2 Reports are reviewed be two levels of reviewer, and approved at the supervisory level.

521
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 9 – General Ledger
HR-9

HR 9 – General Ledger

Policies and Procedures

Business Processes

Beginning of Document

522
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 9 – General Ledger
Policies & Procedures HR-9.1

HR 9.1 Payroll to General Ledger Process

A. MAP Standard

To ensure compliance, the Department of Finance and Administration (DFA) must have internal
controls for all aspects of payroll postings to the general ledger.

B. Purpose

This policy establishes requirements and procedures for recording and posting payroll journals for
each pay period.

C. Authority

NMSA 1978, §10-9-17 (1961)

D. Policy

1. After payroll process is complete, the DFA Central Payroll Bureau (CPB) shall retrieve payroll
data from SHARE HCM, and confirm completeness and accuracy.

2. The DFA CPB shall then process payroll journals, budget check, and post payroll data into the
general ledger in SHARE. Any errors discovered during the budget check and posting will be
resolved with the state agency prior to completion of posting.

E. Applicability

This policy applies to all state agencies who process payroll through SHARE HCM.

F. Procedures

CPB

1. HCM SHARE calculates biweekly payroll for on-cycle warrants within the same pay period.
Central Payroll confirms payroll process is complete.

2. Run PAYGL02A. The PAYGL02A job is run from HCM and generates the HR_ACCTG_LINE
in HCM and Financials.

3. Private queries are run to validate that the data is the same in HCM and Financials.

4. Private queries are run to review the HR_ACCT_LINE detail data where the budget dates do not
fall into the current pay period. This usually occurs due to payroll reversals from prior pay
periods. A SQL is prepared specifying the business unit, run date and the correct budget date and
accounting date that is applicable to the current pay period.

5. The Journal Generator Template is updated with the current payroll pay period end date, pay date
and description for the journal header and journal line fields.

523
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 9 – General Ledger
Policies & Procedures HR-9.1

6. Run the Journal Generation process (FS_JGEN).

7. Run the NMS_FIXACT10 app engine under System Process Requests to update the journal lines
with the ACTIVITY ID>10 digits to 15 digits.

8. Run the GL_JEDIT process to edit, budget check and post the payroll journals.

9. CPB works with state agencies CFO to resolve issues and correct journal entries. Re-run
GL_JEDIT for impacted journals.

10. Run NMS_JRNLS_NOT_POSTED_PR_SYS query to produce a list of all payroll journals that
were not posted due to budget or edit errors.

11. If errors occur where a fund/department comes across from HCM that does not belong to the
business unit, then the agencies default fund/department is applied to the PR Journal to correct
the invalid fund/department.  CPB also works with the state agency CFO to resolve funding
source issues.   Once the corrections have been made to the PR Journal then CPB runs an online
edit and post to the General Ledger.

G. Procedures for Child Support EFT (Electronic File Transfers)

Note: The Child support EFT’s are not sent to AP (Accounts Payable); therefore, a manual process
is done to post the Child Support EFT entries to AP.

1. A query is run by the Central Payroll Bureau that extracts the Child Support EFT payroll data.

2. The Child Support EFT file is saved in a shared drive by the CPB.

3. CPB prepares the documentation that goes out to all business units that have Child Support EFTs
in HCM and creates a file APMCSPXXX, XXX = sequential number, which then gets uploaded
as a CFR in SHARE Financials.

4. The Child Support EFT documentation is received by the DFA Financial Management Bureau for
review and posting of the data to the GL.

524
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 9 – General Ledger
Business Process HR GL-01

HR GL-01 Payroll to General Ledger

Central Payroll Bureau
From
PY-02b Note: Produced during
the same pay period
SHARE calculates bi- Note:
weekly payrol l). The “NMS_FIXACT10” App
Engine under System Process
Reques ts to update the journal lines
with Activity ID > 10 digits or 15
digits.

SHARE calculates SHARE calculates This systematic activity changes

the 10 character description in the
bi-weekly payroll for pay related to off- J/E to a 15 character description.
pay period cycle warrants Run the
“NMS_FIXACT10”

Process
A: Authorize Note:
1 Run the GL_JEdit proces s to edit,
budget check and post the payroll
Central Payroll journals in the GL
Bureau (CPB)
confirms payroll Note:
process is complete A – GL01 / 1 If process ends in “warning” some
Run the GL_JEdit journals have budget or edit errors.
CPB work with Agency CFO to
resol ve iss ues and correct journal entry.
Re rerun GL_EDIT for impacted
M – GL01 / 2 journals.

M – GL01 / 3
4
GL_JEdit end in
PAYGLO2A is run No Process ends in
success?
Note:
“warning”
PAYGL02A retrieves data from HCM
HR_ACCTG_LN table and writes the
Process data i nto FIN HR_ACCTG_LN table.
F: Reconcile
Process t o validate that the HCM Yes
payroll data l ine items trans ferred
completel y to SHARE.
Yes
SQL is prepared for NMS_JRNLS_
applicable current NOT_POSTED_PR
period’s chartfields Payroll Journals _SYS query is run
Posted in GL by CPB

M – GL01 / 4
2
Update the Payroll
Journal Template for
the Journal Header Process
Refer to General D: Verify I
and Journal Line E: Verify S
Ledger Process
fields F: Reconcile
for Details

M – GL01 / 5

Run the Journal FS_JGEN end in

Generation process success?
(FS_JGEN)

No

3
Delete process
instance re-run
FS_JGEN

525
System Administration, Work Breakdown Structure, and Policies_____________________
2.0 Unit 2—Work Break Down Structure and Policies
HR 9 – General Ledger
Business Process HR GL-01

HR GL-01 Payroll to General Ledger (Control Points)

System access is restricted to authorized CPB individuals to prevent unauthorized entries posted to the general ledger.
A – GL01 / 1 Authorized CPB individuals are systematically restricted from creating or modifying employee records or creating manual
journal entries.

CPB performs reconciliation of payroll generated in HCM to HCM HR_ACCTG_LN for each payroll period. CPB
M – GL01 / 2
validates that HCM payroll data/line items transferred completely to SHARE payroll.

CPB performs reconciliation of HCM HR_ACCTG_LN to Payroll Journals Posted in GL for each agency for each quarter.
M – GL01 / 3 CPB validates that the total payroll expense in HCD agrees to the expense in SHARE to ensure that journal entry creation is
complete.

Review NMS_JRNLS_Not_Posted query reviewed by CPB to identify payroll journals with edit or budget errors. CPB
M – GL01 / 4
works with Agency CFO to resolve.

Monthly, the agencies perform a reconciliation of the agency’s payroll to SHARE General Ledger. The reconciliation is
M – GL01 / 5
reviewed and approved by a separate individual.

526