Special Revenue Fund Procedures
For Special Revenue Funds Policy #FM025
Effective Date: March 12, 2021
Revised: November 4, 2022
Print Procedures (pdf)
Introduction
This document is the technical companion to the Minnesota Department of Transportation’s (MnDOT’s) Special Revenue Fund Policy.
The Minnesota Department of Transportation (MnDOT) must create a Special Revenue Fund appropriation for all contracts under which MnDOT receives non-federal funds. Special revenue funded contracts must be created pursuant to the Contract Management Policy and Contract Management Manual. Employees must follow the Special Revenue Fund Procedures to establish budgets, collect and spend funds, and disperse remaining funds per contract terms at the time the appropriation is put on hold. Expenditures must be for the work specified in the contract and must be moved from the related fund to the Special Revenue Fund in the year the expenditures occurred.
Financial Requirements
- Special revenue funded contracts must describe what each party will provide, the agreed-upon scope of work, and the financial responsibility of each party.
- Special revenue funded contracts must establish a beginning and ending date. If the contract will continue past the anticipated ending date, an amendment to the contract must be written and signed before the contract expires.
- Costs must be tracked for goods and services rendered.
- If a lump sum special revenue funded contract is written and fully executed, the financial terms can only be amended with approval of the Director of Financial Management. Offices and Districts cannot change how much is owed or when the payments are to be made without the approval of the Director of Financial Management.
- Excess funds for non-lump sum special revenue funded contracts shall be refunded or returned to the related fund according to contract language.
- Excess funds for lump sum special revenue funded contracts shall be cancelled to the Trunk Highway Fund when the contract is completed.
- The Office of Financial Management may deduct a pre-determined percentage to cover the costs of managing billing and collections for Damage Restitution that may be adjusted annually.
- For encumbrances, refer to the Contract Management Procedures.
- In rare instances, the legislature designates a Special Revenue Fund appropriation for a specific activity, and a contract is no longer necessary as the statute creates the legal authority for the spending. Funds are collected through fees and spent as statutorily mandated. Offices and districts encumber funds for products and services used for this activity either in the Special Revenue Fund appropriation or in an operating budget appropriation. Expenditures are either directly applied or moved from operating budgets to the corresponding Special Revenue Fund appropriation as applicable per the legislatively mandated activity. Examples of this type of Special Revenue Fund are Forest Hauler Fees, Training appropriations and Damage Restitution.
Definitions
Allotment
Breakdown of appropriations into smaller management control units. Allotments establish spending ceilings based on the total amounts entered on related expense budgets.
Appropriation
Authorization by the legislature to spend money from the state treasury for purposes established in law. Appropriations typically limit expenditures to a specific amount and purpose within a fiscal year or biennial period.
Appropriation Maintenance Application (AMA)
System used to create new appropriations, establish appropriations in a particular budget period, or modify an existing appropriation.
Automated Clearing House (ACH), electronic payment
Primary system used for electronic funds transfer (EFT). Funds are electronically deposited in financial institutions and payments are made online.
Cash Accounting Billing System (CABS):
A database compiler in Microsoft Access for expenses that aggregates SEMA4, RCA and Material Inventory records for any expenses charged to a Project ID starting with a TA98 or a TA99 (Project ID coding for city or county).
Contract Work Order
A document, which is considered a Contract, issued under the authority of a Master Contract, and which directs the Contractor to perform specific work and provides for payment for that specific work, all subject to the general terms set forth in the Master Contract.
Deposit Correction
Entry in SWIFT to move the funds to the correct fiscal year and/or correct funding string.
Excess Funds
The difference between the actual cost of the contract and the estimated budget for the contract.
Expense Budget
A budget used to manage the expenditures that will be expended during the budget period and track all of the spending for a particular appropriation. An expense budget must be present in order to process a transaction since spending control is facilitated at the allotment level. Once appropriate sources of funding have been established, expense budgets can be posted.
Funding String
The elements of a funding string include the Fiscal Budget Year, Fund, Fin DeptID, Appropriation ID, Account Codes, and Project ID. The funding string is used to designate the revenue and/or expense budget for either spending or collecting monies.
Journal Voucher (JV)
A mechanism in SWIFT for making an intra-agency payment. With a special revenue funded contract, a journal voucher should be used for transferring expenditures to the Special Revenue Fund appropriation.
Lump Sum
A contract payment method which provides a fixed payment for performing work required by a contract, regardless of the actual costs required to perform the work. A lump sum may be paid at one time upon completion, or it may be broken into multiple payments, such as per-deliverable or "progress" payments.
Master Partnership
A contract allowing one party to procure routine services from another party, which the parties agree will enhance the efficiency of delivering governmental services at all levels.
One-Time Receivable Technical Services Partnership Contract (formerly known as TA99)
A signed form requesting MnDOT services for a one-time need, not to exceed $5,000. This type of contract is used when there isn’t a Master Partnership Contract with a customer. Current overhead rates are added to all One-Time Receivable Technical Services Partnership Contracts. The funds received from One-Time Receivable Technical Services Partnership Contracts are deposited into the related fund. Funds cannot be returned to District or Office budgets.
Originator
The person initiating the contract proposal process. This can be a Contract Administrator, Project Manager, or Authorized Representative.
Project ID
A number used to identify a unique project and to accumulate direct and indirect costs which makes the data available for reporting.
Proposal
An internal MnDOT document that shows management approval of the basic terms of an agreement with the other party to a proposed contract.
Restricted Fund
A fund which is authorized by legislation that allows a government entity to collect money from an external entity and restricts those monies for a specific purpose.
Revenue Budget
A forecast of expected receipts for the fiscal year that is critical to budget management because it defines encumbrance constraints. Revenue budgets are used to allocate and record all dedicated and non-dedicated revenues earned for a given fiscal year. Revenues include both cash receipts and accounts receivable.
Special Revenue Fund
A non-federal restricted fund (2000 and 2001 funds) in which to deposit receipts for a specific purpose.
Procedures - Regular Special Revenue Funded Contracts
Special Revenue Fund - Proposal Procedure
Business Unit responsible for procedure: Contract Management
Version: 1.00
Effective Date: March 12, 2021
Revised Date: November 4, 2022
Objective
To standardize the routing and approval process for a Regular Special Revenue Fund Proposal.
Procedure Steps
Step |
Action |
Responsible Party |
Timeline |
---|---|---|---|
1 | Originator (Office/District) will contact Contract Management regarding process for starting a proposal. |
Originator (Office/District) |
N/A |
2 | Contract Management will advise the Originator what forms and process to use. |
Contract Management |
24 hours |
3 | Originator (Office/District) will send a proposal draft and “Attachment A: Detailed Estimated Cost of Contract.” |
Originator (Office/District) |
Up to 1 month |
4 | Contract Management will review, and Operating Budget Support may review the proposal draft and “Attachment A”. If more information is needed, Contract Management will send the proposal back to the Originator (Office/District) for revisions. If the proposal does not need revision, Contract Management will determine if the proposal is for a Shared Facility. |
Contract Management/Operating Budget Support |
1 week |
5 | If the proposal is not for a Shared Facility, Contract Management will send the proposal to the Office Director or District Engineer (DE) for a signature. |
Office Director or District Engineer |
24 hours |
6 | OFM Director will review, approve, and sign the proposal. |
OFM Director |
1 week |
7 | If the proposal is over $100,000, the Assistant Commissioner or Assistant Division Director will review, approve, and sign the proposal. |
Assistant Commissioner |
1 week |
8 | Senior Legal Counsel will review, approve and sign the proposal. |
Contract Management |
Within 48 hours |
9 | Notify Fiscal Support to setup funding. |
Contract Management |
Within 24 hours |
10 | OFM Fiscal Support enters the appropriation budget into Appropriation Maintenance Application for MMB approval with contract end date noted. | OFM Fiscal Support/MMB | 24 to 48 hours |
11 | OFM Fiscal Support verifies appropriation budget in SWIFT and creates revenue and expense budgets. | OFM Fiscal Support | 24 to 48 hours |
12 | OFM Fiscal Support returns completed funding string request to Contract Management and notifies Operating Budget Support and District FPG Contact. | OFM Fiscal Support | 24 to 48 hours |
Forms
Forms associated with the procedure:
- Receivable Partnership Proposal (Contract Management Partnerships iHUB Page)
- Attachment A – Example of Estimated Cost of Contract (Contract Management Partnerships iHUB Page)
- Regular Special Revenue Fund Process Model
- Regular Special Revenue Fund Proposal Process, Page 1
Federal and State Requirements (if applicable)
Contact(s)
- Office of Financial Management Director
- Contract Management
Special Revenue Fund – Contract Draft and Approval Procedure
Business Unit responsible for procedure: Contract Management and Fiscal Support
Version: 1.00
Effective Date: March 12, 2021
Revised Date: November 4, 2022
Objective
To standardize the drafting, routing, approval and signature process for Regular Special Revenue Fund Proposals and Contracts.
Procedure Steps
Step |
Action |
Responsible Party |
Timeline |
---|---|---|---|
1 | Originator (Office/District) contacts the partner/customer to negotiate the contract. |
Originator (Office/District) |
1 week |
2 | Contract Management to draft contract after negotiations are complete. |
Contract Management |
1 week |
3 | Partner/customer signs the contract. |
Partner/customer |
1 week |
4 | Partner/customer returns the signed contract to the Originator (Office/District). |
Partner/customer |
1 week |
5 | Originator (Office/District) routes to Contract Management. |
Originator (Office/District) |
24 hours |
6 | Contract Management routes contract to Assistant Commissioner/Assistant Division Director for signature. |
Contract Management |
1 to 3 days |
7 | Under $1M Contract Administrator signs (final signature) and contract is approved. |
Contract Management |
1 to 2 days |
8 | Over $1M Contract Administrator initials then is routed to Dept. of Admin for signatures. |
Contract Management |
1 to 2 days |
9 | Dept. of Admin returns contract to Contract Management. |
Dept. of Admin |
1 week |
10 | Contract is distributed with the proposal to the Originator (Office/District), Fiscal Support, Budget Support, OFM Partnership Billing, and OFM Director. |
Contract Management |
24 hours |
11 | Originator (Office/District) returns a copy of the signed contract to the partner/customer. |
Originator (Office/District) |
24 hours |
12 | Originator contacts FPG/Finance contact to begin tracking costs associated with contract. | Originator (Office/District) | 24 hours |
Forms
Forms associated with the procedure:
- Partnership Contract (Contract Management Partnerships iHUB Page)
- Regular Special Revenue Fund Process Model
- Regular Partnership Contract Drafting and Approval Process, Page 2
Related Policies and Procedures
Contract Management Policy (Contract Management Resources iHUB Page)
Federal and State Requirements
Contact(s)
Office of Financial Management Director
Special Revenue Fund - Invoice Creation Procedure
Business Unit responsible for procedure: OFM Partnership Billing
Version: 1.00
Effective Date: March 12, 2021
Revised Date: November 4, 2022
Objective
To outline the process for creating a Special Revenue Fund invoice.
Procedure Steps
Step |
Action |
Responsible Party |
Timeline |
---|---|---|---|
1 | Send the Special Revenue Fund Invoice Request to the shared mailbox: ARAgreements.DOT@state.mn.us. |
Originator in Office/District or District FPG Contact |
As received by OFM State Aid & Capital Analysis |
2 | Review billing: OFM Partnership Billing reviews the Special Revenue Fund contract or billing request within one day of receiving to determine:
|
OFM Partnership Billing |
Within 24 hours |
3 | Determine if funding string has been set up. |
OFM Partnership Billing |
1 week |
4 | Once the funding string and the Project ID are set up, verify that the appropriation and expense budget are set up and open in SWIFT for the current fiscal year. Review the Project ID to ensure it is “open” in SWIFT. |
OFM Partnership Billing |
1 to 2 days |
5 | Determine if partner has been billed previously.
*If there are any problems with invoicing for the contract, e-mail the Originator that is listed on the contract or the District FPG Contact.
|
OFM Partnership Billing |
Within 24 hours
|
6 | Review the billing request for clarity and accuracy and complete a SWIFT Receivable Input Data Form. |
OFM Partnership Billing |
Within 24 hours |
7 | Create and process the invoice in SWIFT:
|
OFM Partnership Billing |
24 to 48 hours |
8 | Invoice is saved electronically in eDOCS.
|
OFM Partnership Billing |
24 to 48 hours |
9 | The invoice is added to the AR cumulative invoice log which shows all open and closed invoices.
|
OFM Partnership Billing |
1 week |
10 | A file folder is created for the contract (if it is new) or the new invoice documentation is added to an existing file (A/R Open files). |
OFM Partnership Billing |
Within 24 hours |
Contact(s)
OFM Partnership Billing
ARAgreements.DOT@state.mn.us
Special Revenue Fund - Invoice Payment Procedure
Business Unit responsible for procedure: OFM Partnership Billing
Version: 1.00
Effective Date: March 12, 2021
Revised Date: November 4, 2022
Objective
To outline the process for creating a Special Revenue Fund invoice and recording the payment
Procedure Steps
Step |
Action |
Responsible Party |
Timeline |
---|---|---|---|
1 | Payments can be received via ACH, paper check, or online payments.
|
OFM Partnership Billing /OFM Cash & Collections |
Within 24 hours |
2 | When the payment is received, the contract file folder is pulled. |
OFM Partnership Billing |
Within 24 hours |
3 | An Appropriation report is created in SWIFT using the funding string that was provided on the invoice to be sure that the money has been deposited into the correct Appropriation.
|
OFM Partnership Billing |
1 week |
4 | After the Appropriation report is checked:
|
OFM Partnership Billing |
Within 24 hours |
5 | Email notification of payment is sent to the invoice requester, OFM Budget Support, and Contract Management.
|
OFM Partnership Billing |
Within 24 hours |
6 | After the AR Log is updated and the invoice requester(s) is notified, the contract folder is filed in the OFM Partnership Billing area. |
OFM Partnership Billing |
Within 24 hours |
7 | OFM Budget Support or District FPG assists the District or Central Office staff with moving move their expenditures into the Special Revenue Fund appropriation to free up operating revenue spending authority (see Expenditure Recognition Procedure). |
OFM Budget Support/ District FPG Contact |
1 week |
Contact(s)
OFM Cash and Collections: OFMDeposit.DOT@state.mn.us
OFM Partnership Billing: ARAgreements.DOT@state.mn.us
OFM Operating Budget Unit: budgetsupport.dot@state.mn.us
Special Revenue Fund – Deposit Procedure
Business Unit responsible for procedure: Cash and Collections
Version: 1.00
Effective Date: March 12, 2021
Revised Date: November 4, 2022
Objective
Document the deposit process for Special Revenue Funds. Same process for Master and Regular.
Procedure Steps
Step |
Action |
Responsible Party |
Timeline |
---|---|---|---|
1 | Receive a payment via ACH, regular check, or online payment. |
OFM Cash and Collections |
Daily |
2 | ACH: Receive email notification in OFMDeposit.DOT@state.mn.us mailbox from cities, counties, and MMB. Proceed to step 5.
|
OFM Cash and Collections and OFM Special Services |
Daily |
3 | Record payments received by mail on check register. |
OFM Special Services |
1 to 3 hours |
4 | Distribute checks to OFM Cash and Collections. |
OFM Special Services |
5 minutes |
5 | Verify whether there is an invoice or not against the payment.
|
OFM Cash and Collections |
30 minutes |
6 | SWIFT entry: post in Accounts Receivable Module. |
OFM Cash and Collections |
1 to 2 hours |
7 | ACH: Email OFM Partnership Billing that ACH has been received and posted in SWIFT. ACH is completed at this step. |
OFM Cash and Collections |
5 minutes |
8 | Deposit checks electronically into banking institution utilizing check scanners. The checks are digitally endorsed during the scanning process. |
OFM Cash and Collections |
30 minutes |
9 | Online payment is made via US Bank
|
OFM Cash and Collections | 1 day |
10 | Run payment detail report to verify that payment has been posted in SWIFT without errors. |
OFM Cash and Collections/OFM Partnership Billing |
30 minutes |
11 | Email notification to Operating Budget Support and District FPG Contact. | OFM Partnership Billing | 30 minutes |
Federal and State Requirements
Contact(s)
OFM Cash and Collections: OFMDeposit.DOT@state.mn.us
Special Revenue Fund – Expenditure Recognition Procedure
Business Unit responsible for procedure: Operating Budget Unit
Version: 1.00
Effective Date: March 12, 2021
Revised Date: Not applicable
Objective
To provide guidance on how to ensure expenditures are being properly applied to Special Revenue Fund appropriations. Each Special Revenue Fund appropriation has receivable funds and expenditures that must be applied in accordance with the set contract. Expenditures are applied to Special Revenue Fund appropriations in several different ways.
Finance Coordinators, Originators, and District FPG Contacts should oversee the appropriations to ensure that expenditures are applied correctly and in a timely manner.
Procedure Steps
Step |
Action |
Responsible Party |
Timeline |
---|---|---|---|
1 | Collaborate with Originator to review the contract and eligible expenditures and ensure all expenses have been invoiced. |
OFM Budget Support/ District FPG Contact |
When new Special Revenue Fund Appropriation is created |
2 | Complete monthly review of special revenue funded contracts for unexpended receipts. |
OFM Budget Support/ District FPG Contact |
Up to 1 week |
3 | Adjust expense budgets for unallotted receipts. |
OFM Budget Support/ District FPG Contact |
1 to 4 weeks |
4 | Reconcile Operating and Special Revenue expenditures to ensure spending authority has been restored to the Operating appropriation. This occurs with the movement of expenses to the SRF appropriation. These are processed with journal vouchers in SWIFT. |
OFM Budget Support/Consultant Services/OFM Partnership Billing / District FPG Contact |
1 to 4 weeks |
5 | Verify expenditures are eligible. |
OFM Budget Support/ District FPG Contact |
24 to 48 hours |
6 | Verify correct account codes, source codes, and project numbers have been used for expenditures directly applied. |
OFM Budget Support/ District FPG Contact |
24 to 48 hours |
7 | Process journal voucher to move expenditures from operating budgets to respective Special Revenue Fund appropriation. |
OFM Budget Support/Consultant Services/OFM Partnership Billing / District FPG Contact |
24 to 48 hours |
8 | Review special revenue funded contract to verify that threshold has not been exceeded. |
OFM Budget Support/ District FPG Contact /Originator |
1 to 4 weeks |
Federal and State Requirements
Contact(s)
OFM Budget Support: budgetsupport.dot@state.mn.us
OFM Partnership Billing: ARAgreements.DOT@state.mn.us
Special Revenue Fund - Close Out Procedure
Business Unit responsible for procedure: Operating Budget Unit, Originator, District FPG Contact, and OFM State Aid & Capital Analysis Unit
Version: 1.00
Effective Date: March 12, 2021
Revised Date: November 4, 2022
Objective
To provide guidelines of initiating the close out process.
Procedure Steps
Step |
Action |
Responsible Party |
Timeline |
---|---|---|---|
1 | Originator notifies District FPG Contact or OFM Budget Support:
|
Originator |
Completion of contract |
2 | District FPG Contact, OFM Budget Support, or Originator reviews the contract, runs the appropriation report, and verifies how much has been collected and expended. |
OFM Budget Support/Originator/ District FPG Contact |
1 Week |
3 | District FPG Contact, OFM Budget Support, or Originator emails OFM Partnership Billing at ARAgreements.dot@state.mn.us to begin review of Special Revenue Fund appropriation. |
OFM Budget Support/Originator/ District FPG Contact |
24 to 48 hours |
4 | OFM Partnership Billing begins the process of closing the contract and appropriation.
|
OFM Partnership Billing |
1 week |
5 | OFM Partnership Billing contacts Originator, District FPG Contact, OFM Cash and Collections, and/or OFM Budget Support for further clarification on balances remaining in the appropriation, etc. |
OFM Partnership Billing |
1 week |
6 | Review appropriation for remaining balance. Determine amount to be billed, refunded, or returned to related fund according to contract language.
|
OFM Partnership Billing |
1 week |
7 | OFM Partnership Billing receives written verification from the Originator, District FPG Contact or OFM Budget Support to confirm amount to be refunded or canceled to the Trunk Highway Fund. |
OFM Partnership Billing |
1 week |
8 | If refunding, OFM Partnership Billing processes the refund in SWIFT, then notifies the Originator, District FPG Contract or OFM Budget Support.
If funds are canceled to the Trunk Highway Fund, OFM Partnership Billing contacts OFM Budget Support. |
OFM Partnership Billing |
24 to 48 hours |
9 | OFM Budget Support completes deposit correction form and submits to OFM Cash and Collections for processing. |
OFM Budget Support |
24 to 48 hours |
10 | OFM Cash and Collections processes deposit correction and notifies OFM Budget Support. |
OFM Cash and Collections |
24 hours |
11 | OFM Budget Support, District FPG Contact or Originator contacts OFM Partnership Billing to request to close the Project ID. |
OFM Budget Support/Originator/ District FPG Contact |
24 hours |
12 | OFM Budget Support, District FPG Contact or Originator contacts OFM Fiscal Support at fiscalsupport.dot@state.mn.us to put the appropriation on hold (if not already on hold as Appropriation cannot be open past the contract end date budget period). Send a copy of the email to the Operating Budget Director. |
OFM Budget Support/Originator/ District FPG Contact |
24 hours |
13 | OFM Fiscal Support reviews whether there is any additional expense/revenue budget clean up needed in SWIFT. |
OFM Fiscal Support |
24 hours |
14 | OFM Fiscal Support creates the request in Appropriation Maintenance Application (AMA) for appropriation to be put on hold. |
OFM Fiscal Support |
24 hours |
15 | OFM Partnership Billing files contract paperwork in “closed” file cabinet. |
OFM Partnership Billing |
1 week |
16 | OFM Fiscal Support emails confirmation to OFM Budget Support, District FPG Contact and/or Originator when appropriation has been put on hold in SWIFT. | OFM Fiscal Support | 1 week |
Forms
- Deposit Correction Form
Contact(s)
OFM Operating Budget Unit: Budgetsupport.dot@state.mn.us
OFM Cash and Collections: ofm_deposit@state.mn.us
OFM Fiscal Support: Fiscalsupport.dot@state.mn.us
OFM Partnership Billing: ARAgreements.DOT@state.mn.us
Special Revenue Fund - Closing Project IDs Procedure
Business Unit responsible for procedure: OFM Budget Support and OFM State Aid & Capital Analysis
Version: 1.00
Effective Date: March 12, 2021
Revised Date: November 4, 2022
Objective
This document outlines the process to request the closing of a Project ID for a special revenue funded contract.
Procedure Steps
Step |
Action |
Responsible Party |
Timeline |
---|---|---|---|
1 | Verify that all Special Revenue Funds for the Contract have been invoiced for and payments have been received. |
OFM Partnership Billing |
As received |
2 | Contact the Originator, District FPG Contact or OFM Budget Support to verify that all work has been done and there are no pending amendments for the contract. |
OFM Partnership Billing |
Within 30 days of expiration of contract |
3 | Review the SRF appropriation to verify there is no remaining balance. A remaining balance reflects expenditures in the Operating appropriation which need to be moved to the SRF appropriation. |
OFM Partnership Billing |
24 to 48 hours |
4 | If the expenses have not been moved into the SRF appropriation, then contact Originator, District FPG Contact or OFM Budget Support to get expenses moved to free up their operating budget. |
OFM Partnership Billing/ OFM Budget Support/District FPG Contact |
Within one week |
5 | After the expenses are moved into the SRF appropriation, any additional funds left in the appropriation must be refunded or canceled to the Trunk Highway Fund. |
OFM Budget Support/ District FPG Contact |
Within one week |
6 | When the SRF appropriation has the collected receipts matching the funds expended, the District FPG Contact or OFM Budget Support requests the appropriation to be put on hold. |
OFM Budget Support/ District FPG Contact |
Within one week |
7 | The Special Revenue Fund Project ID must be requested to be closed. Once closed in SWIFT, the contract file can be closed and filed. |
OFM Partnership Billing |
Within one week |
Federal and State Requirements
Do not close any Federal Project IDs, this should only be done by OFM Program Accounting.
Contact(s)
OFM Cash and Collections: ARAgreements.DOT@state.mn.us
OFM Operating Budget Unit: budgetsupport.dot@state.mn.us
Special Revenue Fund – Placing Appropriation on HOLD Procedure
Business Unit responsible for procedure: OFM Budget Support, OFM State Aid & Capital Analysis, and OFM Fiscal Support
Version: 1.00
Effective Date: March 12, 2021
Revised Date: November 4, 2022
Objective
To provide guidelines of placing a Special Revenue Fund appropriation on hold.
Procedure Steps
Step |
Action |
Responsible Party |
Timeline |
---|---|---|---|
1 | Verify that all expenditures have been moved and all refunds/cancellations have been processed. |
OFM Fiscal Support |
As received |
2 | Contact Financial Coordinator in OFM Budget Support if step 1 isn’t complete. |
OFM Fiscal Support |
24 to 48 hours |
3 | Submit request in AMA. |
OFM Fiscal Support |
24 to 48 hours |
4 | Approve request in AMA and contact MMB Executive Budget Officer (EBO). |
OFM Fiscal Support |
24 to 48 hours |
5 | Verify appropriation is on hold. |
OFM Fiscal Support |
1 to 2 weeks |
6 | OFM Fiscal Support emails confirmation to OFM Budget Support when appropriation has been put on hold in SWIFT. | OFM Fiscal Support | 24 hours |
Federal and State Requirements
Do not place any Federal Project Appropriation IDs on hold. This should only be done by request by the OFM Grants Unit.
Contact(s)
OFM Fiscal Support: Fiscalsupport.dot@state.mn.us
OFM Operating Budget Unit: budgetsupport.dot@state.mn.us
Procedures - Master (Blanket) Partnerships
Master (Blanket) Partnership – Special Revenue Fund Procedure
Business Unit responsible for procedure: OFM Cash and Collections Unit
Version: 1.00
Effective Date: March 12, 2021
Revised Date: Not applicable
Objective
To give a step-by-step overview of the Master Partnership Special Revenue Fund procedure.
Procedure Steps
Step |
Action |
Responsible Party |
Timeline |
---|---|---|---|
1 | Contract Management sends the signed contract to OFM Cash and Collections. |
Contract Management |
N/A |
2 | Routine Master Partnership?
Master:
Work Order:
|
OFM Cash and Collections |
5 to 10 minutes per contract |
3 | Verify if the customer exists in SWIFT or not.
Verify that there is an existing TA number.
If there is a TA number, move to step 4. |
OFM Cash and Collections |
5 to 10 minutes per contract |
4 | Run CABS report using the access system. Material, equipment, payroll, expenses tied to TA98. |
OFM Cash and Collections |
10 to 20 minutes, once a month |
5 | Compare to project folder; Analyze and verify the charges are correct (correct customer, correct activity, etc.). Run batch for cities and counties for a 4 to 6 week period of time. |
OFM Cash and Collections |
2 weeks (minimum) to process and invoice charges |
6 | Attach supporting documentation (run crystal reports, send emails). Save copies electronically (One Note) and by paper. |
OFM Cash and Collections |
2 weeks |
7 | Ok to bill?
Once charges have been corrected and confirmed, delete incorrect charge in CABS database. |
OFM Cash and Collections |
2 to 4 weeks |
8 | Run CABS verification report to produce invoice in CABS (this is the invoice that will go to the customer) and send email to OFM MNIT for MMB error check. |
OFM Cash and Collections |
30 minutes |
9 | Email OFM MNIT - send (flat file) invoice to MMB for verification. |
OFM MNIT |
30 minutes |
10 | MMB contacts OFM MNIT once verified. |
MMB |
Within 24 hours |
11 | OFM MNIT contacts OFM Cash and Collections. |
OFM MNIT |
Within 24 hours |
12 | Receive email from OFM MNIT that invoice is good. Save a copy (print invoice in PDF) on one note, print paper invoice from CABS. |
OFM Cash and Collections |
30 minutes |
13 | Generate invoices in SWIFT (do not print). |
OFM Cash and Collections |
15 minutes |
14 | Go into SWIFT and load the AR update. |
OFM Cash and Collections |
15 minutes |
15 | If there are any credits in the system, do maintenance worksheet to offset previous invoice. |
OFM Cash and Collections |
30 minutes |
16 | Mail out printed paper invoice from CABS (PDF package). |
OFM Cash and Collections |
24 to 48 hours |
17 | Customer initiates charge dispute via phone or email. Return to step 7 for error corrections. |
OFM Cash and Collections |
5 to 10 minutes |
18 | Receive payment. |
OFM Cash and Collections |
Daily |
19 | Deposit (see Procedures for Deposit). |
OFM Cash and Collections Depositors |
24 to 48 hours |
Forms
Forms associated with the procedure:
- Master Partnership (Contract Management Partnerships iHUB Page)
- Exhibit A – Table of Technical Services (Contract Management Partnerships iHUB Page)
- Master (Blanket) Partnership Revenue Fund Process Model
- Supporting Documents are generated from Crystal reports and include; RCA Remarks and hours, Equipment Use, Payroll Correction, LIMS Correction, TAMS Work Order Summary Reports, Bridge Inventory reports. Email Correspondence from Staff and Customers.
Contact(s)
OFM Cash and Collections: ofm_deposit@state.mn.us
Master Partnership – Invoices Related to Expenses Outside of CABS Procedure
Business Unit responsible for procedure: OFM Cash and Collections Unit
Version: 1.00
Effective Date: March 12, 2021
Revised Date: Not applicable
Objective
To give a step-by-step overview of the procedures and how to review invoices related to expenses outside of CABS (Cash Accounting Billing System): electrical and road pavement. These cases fall on Exhibit A but are not set up in CABS – these are manually invoiced.
Procedure Steps
Step |
Action |
Responsible Party |
Timeline |
---|---|---|---|
1 | Receive email requesting invoicing. There are two types of invoicing; electrical and road pavement (pavement marking). This email includes the funding string, names of counties, quantities of how much to bill. |
Electrical: Electrical Services Section Manager |
Electrical: Quarterly or Bi-annually |
2 | Verify the information in SWIFT. Verify Project ID, the customer number (customer number should already be created, and appropriation should be active); if not, check CAATS to see if there is a document that has not been reported. If no document is located, contact Contract Management Contract Coordinator. |
OFM Cash and Collections |
Billed within 24 hours |
3 | Manually create invoice in SWIFT. Pull up customer ID number, enter billing portion using the funding codes and relevant information provided. |
OFM Cash and Collections |
Billed within 24 hours |
4 | Generate invoice process. |
OFM Cash and Collections |
5 minutes |
5 | Print invoice and mail to customer. |
OFM Cash and Collections |
10 minutes |
6 | A/R Update to load SWIFT. |
OFM Cash and Collections |
5 minutes |
Forms
Forms associated with the procedure:
- One-Time Receivable Technical Services Partnership Contract (Contract Management Partnerships iHUB Page)
Contact(s)
OFM Cash and Collections: ofm_deposit@state.mn.us
Frequently Asked Questions
Can the special revenue funds be transferred directly into an Office operating budget?
No, the funds cannot be transferred into an Office operating budget. Expenditures need to be transferred from the Office operating budget into the respective funding string for the Special Revenue Fund appropriation.
Can a partner pay in arrears rather than in advance?
Yes, when pre-approved by the Director of the Office of Financial Management. In this case, the Office operating budget covers the expense until the partner pays the invoice.
Can MnDOT do anything it wants to do under a special revenue funded contract?
No, MnDOT must still have the statutory authority to perform the project or undertaking covered by the special revenue funded contract.
Is there a limit to the amount of a special revenue funded contract?
No
How can an Office charge payroll time directly to the Special Revenue Fund appropriation?
An employee who is working on a special revenue funded project needs to change the funding on their time sheet. The Fund, Appr ID, Fin Dept ID and Project ID need to be changed on the funding tab in RCA (Resource Consumption Application).
Can an Office create an encumbrance before the funds are received from the partner?
Yes, money can be encumbered but expenditures cannot be made from the Special Revenue Fund appropriation until the funds are deposited.
How can I track how much has been spent on a special revenue funded contract?
A Project ID must be established in SWIFT (Statewide Integrated Financial Tools) at the start of the special revenue funded contract and all expenditures should be charged to the Project ID number. A project report can be created to show all of the expenditures charged to the special revenue funded contract.
Can a special revenue funded contract be “payable” by MnDOT?
Yes, though there may be alternative contracting methods that will work better. Contact the Contract Management Section for further details.
Who transfers the expenditures to the Special Revenue Fund appropriation?
The Financial Coordinator assigned to the Office can transfer the expenditures. A journal voucher should be used for transferring expenditures.