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SWIFT Update May 29 2014

SWIFT

2015 Appropriation Transfers/Roll Forwards

 
Reminder: Agencies should not roll forward appropriation balances into budget period 2015 or process actual transfers for budget period 2015 before July 1st. MMB Agency Assistance will be monitoring for 2015 transfers and have agencies reverse transactions that are processed in error.
 
Below is the wording from page 12 of the Annual Budget and Accounting Instructions - Document 1.
 

Anticipated and Actual Appropriation Transfers

There is no authority to move BFY 2015 monies prior to July 1; therefore, agencies cannot process actual transfers of appropriation documents (XTA - transfer against an anticipated, XTN - actual transfer, no anticipated) for BFY 2015 until July 1, 2014. This includes appropriation transfers between funds and within the same fund.
 
Agencies can process anticipated transfers (XATs) prior to July 1 in order to set up anticipated transfers, expense budgets and encumbrances.
 

Balance Forward Prior to Close

Agencies must have a need to use the funds prior to hard close in order to complete a balance forward which can be entered beginning July 1, 2014. Agencies should anticipate the amount of money necessary to liquidate BFY 2014 certified encumbrances and not carry those amounts forward.
 

Balance forward considerations when changing chart of accounts

In order to balance forward funds, a BFY 2015 appropriation must have the exact coding as the BFY 2014 appropriation (same BFY-Fund-Fin DeptID-AppropID).
 
If you need assistance, contact the Agency Assistance division of MMB at AgencyAssistance.MMB@state.mn.us.
 

Notice on New Local Taxes

The Minnesota Department of Revenue will be administering the following new sales and use tax effective July 1, 2014.
 
Becker County 0.5% Transit Sales and Use Tax
 
The sales and use tax rate changes apply to sales made on or after July 1, 2014, and will be in addition to all other taxes in effect. Local sales tax applies to retail sales made and taxable services provided within the local taxing area (city limits). The tax applies to the same items that are taxable under the Minnesota sales and use tax law.
 
Orders entered in SWIFT on or after July 1, 2014, will calculate the new tax rates for each city. Existing orders and/or their vouchers will need to be adjusted to pay the correct tax if delivery occurs after various dates. Please note that the dates will be different based on whether goods or construction materials are being delivered. Check the tax notice for the affected city for the correct dates. For assistance in changing the sales tax on a PO, please consult the Quick Reference Guide for Sales Tax Settings on Purchase Order Documents.
 
Please see the Minnesota Department of Revenue tax notice for guidance in handling orders and payments during the transition period.
 
 
SWIFT will be updated with the new tax codes for all existing ship-to addresses located in the affected cities. New orders, created on or after Tuesday, July 1, 2014, will calculate the new rate of tax for the ship-to addresses within those cities. Existing orders may or may not need to have the tax code updated on the PO if payment can be processed during any allowed grace period(s), again, see the general notice for each city.
 
If any ship-to addresses for the affected cities previously used the tax code of 0000, State Tax only, to calculate the new combined rate of state and local tax, the tax code(s) on the PO must be updated to the new tax code(s) from the current 0000 tax code. Because of the various transition rules these codes will not be updated by SWIFT and must be updated by the PO buyer. NOTE: Any POs created for FY15 before the tax tables are updated on July 1, 2014 will need to be updated for the new tax rate to calculate. Either hold off creating POs in advance or be sure to update the PO on or after July 1, 2014.
 

PO Date Must be Within the Contract Begin and End Dates

 
Reminder: when setting up a new purchase order, the PO Date must be a date within the contract Begin and End Dates. When searching for a contract to reference on your PO and the contract does not show up in the search, check the PO Date. A common call to the SWIFT Help Line this time of year is that the PO Date defaulted to the current date and needs to be changed to 7/1/2014 because the contract begins on that date.
 

SWIFT Help Desk

 
Contact the SWIFT Help Desk for any questions, concerns or issues you have with SWIFT.
651-201-8100, option 2; Hours: 7:30 a.m. to 4:00 p.m., Monday through Friday; closed holidays.
Additional reference information can be found on the SWIFT website
 

SWIFT Update Listserv

 
The SWIFT Update is sent to SWIFT Agency Sponsors/Project Managers/Readiness Coordinators, Chief Financial Officers, SWIFT Project Team, SWIFT Steering Committee, and Agency Training Managers. It is also sent to a larger listserv composed of SWIFT end users - to be removed or added to this SWIFT Update list, go to the SWIFT Newsletter List
 
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