Cash Management

Procedures

Information on how to sign onto the cash management system and request funds, with sample menus and screens, etc.

Zero-Out Outline

The Zero-Out

Purpose is to equate LEA Certifications to LEA Expenditures each month.
DPI's goal for the LEAs is to have a zero-out amount no greater than 1% of their monthly expenditures.

A. MSA System

Effective dates on MSA are IMPORTANT!
2 Day Rule - Cash Certifications are recorded on MSA two business days before the Funds Requirement Date.

B. What affects the Zero-Out?

Formula (Federal)
- Beginning Cash + MTD Certifications - MTD Expenditures
- Calculated by Period Ending Balance for the Cash Advance Account (22430000) for each Federal PRC.
Federal Certifications
- Federal Certifications create a CR entry in the 22430000 account.
Federal Expenditures
- Federal Expenditures create a DR entry in the 22430000 account.
Zero-Out Amount
- In most cases will be equal to 22430000 balance at the end of the month after expenditures have posted.
- If the Zero-Out amount is greater than the Authority to Draw (11210000) account balance for a PRC, then only the remaining ATD balance will be drawn down.

Contact Gwendolyn Tucker at 919.807.3708

Zero-Out Examples

July 2002 :: Cash Balance

DESCRIPTION	DEBIT	CREDIT
1. Yearly Beginning Cash Balance	0.00
2. Monthly Payroll & Gen Exp Certs for July	2,000,000.00
3. SPSF Expenditures for July		1,500,000.00
4. Ending Cash Balance (Zero-Out)	500,000.00

August 2002 :: Cash Balance

DESCRIPTION	DEBIT	CREDIT
1. Monthly Beginning Cash Balance	500,000.00
2. Monthly Payroll & Gen Exp Certs for August	1,500,000.00
3. July Zero-Out		500,000.00
4. SPSF Expenditures for August		2,000,000.00
5. Ending Cash Balance (Zero-Out)		(500,000.00)

August 2002 :: Cash Balance (With Refund)

DESCRIPTION	DEBIT	CREDIT
1. Monthly Beginning Cash Balance	500,000.00
2. Monthly Payroll & Gen Exp Certs for August	1,500,000.00
3. July Zero-Out		500,000.00
4. $10,000 Refund for PRC 072		(10,000.00)
5. SPSF Expenditures for August		2,000,000.00
6. Ending Cash Balance (Zero-Out)		(490,000.00)

July 2002 :: PRC 017 Cash Advance Balance 22430000

DESCRIPTION	DEBIT	CREDIT
1. Yearly Beginning Cash Balance for PRC 017	0.00
2. Total Cash Draws for July	25,000.00
3. PRC 017 Expenditures for July		23,000.00
4. Ending Cash Balance (Zero-Out)	2,000.00

August 2002 :: PRC 017 Cash Advance Balance 22430000

DESCRIPTION	DEBIT	CREDIT
1. August Beginning Cash Balance for PRC 017	2,000.00
2. Total Cash Draws for August	20,000.00
3. July PRC 017 Zero-Out		2,000.00
4. PRC 017 Expenditures for August		22,000.00
5. Ending Cash Balance (Zero-Out)	(2,000.00)