PAYEE INFORMATION PORTAL PIP GUIDELINES FOR VENDOR REFERRALS

PAYEE INFORMATION PORTAL (PIP) GUIDELINES FOR VENDOR REFERRALS NEW W 9 REQUIREMENTS

PIP AND NEW CITY VENDORS § New vendors that have not conducted business with the City can activate in PIP § PIP will enable vendors to manage their contact information § Vendors are validated between 5 -10 business days by the PIP/Tax Reporting Unit üVendors can review payments and agreements once they conduct business with City agencies

PIP AND ESTABLISHED FMS VENDORS § Established Vendors can be referred to PIP if there are no FMS issues, including: ü IRS Name/Taxpayer Identification Number (TIN) Mismatches ü IRS Backup Withholding Flags ü Prevent Automatic Payments (PAP) ü Duplicated FMS Vendor Codes Note: Once the issues are cleared established FMS vendors can be referred to PIP § Vendors with existing agreements that have name and/or TIN changes should be processed through FMS Agency Vendor Modification documents (VCMA 1) documents ü This will enable City Agencies to request vendor information updates to their contracts

PIP AND FOREIGN VENDORS § Foreign Vendors should not be referred to PIP ü PIP does not meet tax reporting compliance requirements § Necessary document found on Comptroller’s website ü W 8 Form (BEN, BEN-E, ECI, EXP) ü Foreign Vendor Questionnaire § City agencies should forward Foreign Vendor validation requests to: ü 1042 vendor@comptroller. nyc. gov

PIP AND CITY EMPLOYEES § City Employees should not be referred to PIP ü The PIP Unit cannot confirm that PIP validation requests are coming from City Employees ü City employees should be entered in FMS through the Agency Vendor Creation documents (VCCA 1)

PIP WEBSITES § City Agency Users ühttps: //pip. fisa. nycnet/webapp/PRDPCWAdm/Advantage. PIP Users § PIP Users ühttps: //a 127 -pip. nyc. gov/webapp/PRDPCW/Self. Service

NEW W 9 REQUIREMENTS § New Exemption Codes required on W 9 to meet IRS Compliance ü Foreign Account Tax Compliance Act (FATCA) ü Backup Withholding Exemption Codes § FATCA ü Exemptions box includes entry for global tax reporting ü Domestic Vendors will not be affected, but the W 9 form has included the Exemption Codes to meet IRS compliance § Backup Withholding Exemption Codes ü No longer a checkbox ü Exemption code now required for Backup Withholding City’s Substitute W 9 and Instructions are available at www. comptroller. nyc. gov

DIRECTIVE 29 UPDATES § Updates expected for Fall 2015 § Will include topics mentioned in this presentation

VENDOR SUPPORT DIVISION CONTACTS Vendor Issues § Vendor Validation Unit: fmsvendor@comptroller. nyc. gov. § PIP/ Tax Reporting Unit: pipunit@comptroller. nyc. gov. Foreign Vendor Requests § PIP/ Tax Reporting Unit: 1042 vendor@comptroller. nyc. gov.

Comptroller Office’s FY 2015 Annual Closing Instructions Seminar NYC Vendor Payments June 3, 2015 11

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Growth of EFT Vendor Payments 13

Estimated Cost of Paper Checks • Studies Estimate All-In Costs of Checks Range from $7 to $36 Per Check • City Issues Approximately 18, 000 Vendor Checks Per Month • Monthly Cost of Checks: $125 K to $630 K • Annual Cost of Checks: $1. 5 MM to $7. 5 MM • No Cost for EFT Vendor Payments 14

City Vendor Checks • FISA Sends Approximately 2, 000 of the 18, 000 Checks Issued each Month to Treasury (100/day) • Undeliverable Vendor Checks Also Returned to Treasury (30/day) • Treasury Staff Spends 35 Hours per Week Sorting and Distributing Checks • Agencies Send Vendor Checks to Themselves 15

FY 2016 Vendor Payment Goals • Mandate EFT Vendors Payments • Link EFT Enrollment with Vendex Approval • Increase $3. 50 Check Fee • Reduce/Eliminate Checks on Hold in FMS • Change Agency Self-Payments to ACH • Reduce Monthly Check Volume from 18, 000 to 8, 000 by FY 2016 Year-End • Estimated Annual Savings of Approximately $850 K to $4. 2 MM 16

TOPICS v v v v v Agency Bank Accounts Revenues Expenditures Single Audit Capital Assets Accounting Lease Expense Lease Income Imprest Funds Inventory of Supplies Fiduciary Accounts

CLOSING INSTRUCTIONS WALK THROUGH • Note: The Letters on the slides correspond to the appropriate sections in the Fiscal Year-End Closing Instructions

AGENCY BANK ACCOUNTS (SECTION A. ) CONTACT: KATRINA STAUFFER 212 -669 -7861 v New policies for the reconciliations of the Citywide Payments and Receivables Services (CPRS) accounts v v v v Creation of FMS Bank Codes for CPRS Accounts Send Monthly CPRS Bank Reconciliations to the Banking Unit at reconcilations@comptroller. nyc. gov Submit items electronically by the stated deadlines Make changes legibly on the Active Bank Account report Supervisor must initial/sign each reconciliation FMS level 3 approvals should be applied to J 2 I documents prior to submission to the Comptroller’s Office for review Open & Close accounts through Department of Finance Timely Responses to Audit Requests are imperative

GENERAL REMINDERS-REVENUE v. Updated Revenue Monitors List: Page 37 v Attach Supporting Documentation for FMS transactions v FMS level 3 approvals should be applied to revenue documents prior to requesting Comptroller’s Office approval v Review of “No Good” Checks Revenue Source 00845 v Capital Fund Revenue should be monitored with the same effort as the General Fund Revenue.

GENERAL FUND & CAPITAL FUND REVENUE (SECTIONS C. , D. , E. ) CONTACT: AGENCY REVENUE MONITOR v Recording Grant Revenue Receivables For Both General and Capital Fund v Process FY 2015 revenue realizations in Month 13 NOT current Fiscal Year (FY 2016) v Prepare RE and URE with Record Date (6/30/15), FY (2015), BFY (2015) and Period 13 on the Header v When invoicing New York State use the RE document ID in the reference line so that when the funds come in they are not put into the miscellaneous holding code. v If Agency is expecting Funds: notify Revenue Monitor

REVENUE (SECTIONS C. , D. , E. ) CONTINUED CONTACT: AGENCY REVENUE MONITOR v Recording Cash Basis Revenue v CRE’s prepared for monies received 6/30/15, prepare CRE in Month 12 (July 1 st - July 10 th) v Deposit date on CREs should be the date the money is deposited in the bank v A J 2 D is required for cash basis revenue received by June 30, 2015 but deposited July 1, 2015. Prepare the J 2 D in the current Fiscal Year (FY 2016).

REVENUE (SECTIONS C. , D. , E. ) CONTINUED CONTACT: AGENCY REVENUE MONITOR v Capital Fund Revenue v Review Open Items reports distributed weekly v Ensure Capital Fund expenditures and revenues are being applied to the correct reporting categories v Book Capital Fund accrual receivables UREs in FMS v On September 4 th Revenue Monitors will be distributing the Audit Report of Outyear Realizations for verification of the Capital Fund receivables Status

GENERAL REMINDERS - ACCRUALS v All communications should be sent to the Accrued Expenditures email address Accrued. Expenditures@comptroller. nyc. gov v Notify the Accrued Expenditures Unit via email immediately after uploading documentation to the file sharing portal FTP v The Accrued Expenditures Unit must be informed of revised spreadsheets as it affects the sample population. v The title of the revised spreadsheet should include the version number. For example, version 2, 3…

ACCRUALS (SECTIONS F. , G. , H. ) CONTACT: I YAN FUNG 212 -669 -8020 v Processing accrual documents in FMS v Service from and to dates drive the generation of the two-sided accrual and clearing documents in FMS v Helpful accrual reports available on Info. Advantage v MYACRL-001 Automated Multi Year Accrual Report v PRQACC-004 Payment Requests With Service Dates in Prior FY v AGOACR-001 Aged Open Multi Year Accrued Expense v Submit manual accrual documents August 24 th through September 11 th v ACL document IDs should end with the letter G

SINGLE AUDIT (SECTION I. ) CONTACT: I YAN FUNG 212 -669 -8020 v New federal guidance issued; Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards v Subrecipient information required v Implementation of new Certification letter v New Policy regarding the certification of CFDA 97. 036 expenditures v FMS Info. Advantage Report FEDAST-001 is available for review v v Provide documentation for adjustments made to the Federal Report for your agency v Verify CFDA numbers, provide pass-through grantor information October 15, 2015 is the deadline for the return of the FMS Accounting Report of Federal Awards, Subrecipient information, and Certification letter

CAPTIAL PROJECTS EXPENDITURE ACCRUALS (SECTION K. ) CONTACT: MAN HON CHEUNG 212 -669 -3710 v Payment Request processed during Period 12 v v Must be approved by July 10, 2015 v Record Date: June 30, 2015 and v Accounting Period 12 Payment Request processed during Fiscal Year 2016 using service from and to dates prior to June 30, 2015 v Must be approved by September 4, 2015

CAPITAL ACCOUNTING RECORDS RECONCILIATION (SECTION L. ) CONTACT: MAN HON CHEUNG 212 -669 -3710 v The Capital Reconciliation Representation Certification must be submitted by July 17, 2015 v Reconciliation items: v Unencumbered balance for each Unit of Appropriation v Contract Liability Reconciliation v Capital Asset Inventory Reconciliation v Reports: CWA-CASINV-001 and CWA-CASINV-002

CAPITAL ASSETS CUTOFF DATES Contact: Man Hon Cheung 212 -669 -3710 v. The last run of FAIR for FY 2015 is on July 11, 2015 v. Pending Documents: The approvals should ideally be done by June 30, 2015; for documents other than FN’s and FM’s v. Any pending or rejected documents (except FM or FN) that reference existing assets will cause those assets to NOT be depreciated or revaluated v. The mass depreciation and revaluation event is scheduled on August 8, 2015

CAPITAL ASSETS ACCOUNTING (SECTION M. ) CONTACT: MAN HON CHEUNG 212 -669 -3710 v General Contract Information: v Requirements Contracts - $1 Capital registration are no longer being approved v Required Attachments: v Certificate to Proceed (CP), Fixed Asset Waiver Letter, Itemized list of Equipment v Contract Discrepancies: v Detail Objects: Pollution Remediation v Mixed Fund Contract Commodity Lines v Response time to BOA Inquiries

CAPITAL ASSETS ACCOUNTING (SECTION M. ) CONTINUED. . CONTACT: MAN HON CHEUNG 212 -669 -3710 Fixed Asset Disposition (FD): v Timeliness of large value Dispositions v v Attachments (example: Demolition CP) Fixed Asset Impairment (Dispositions and Asset Reductions) v Directive 30

REQUIREMENTS AND UPDATES TO THE CAPITAL PROCESS v. Condemnations Contacts: v. Capital Projects Fund mailbox-Capital@comptroller. nyc. gov v. Diana Marcotullio-dmarcot@comptroller. nyc. gov v. Marina Verba-mverba@comptroller. nyc. gov v. Amaid Ali-aali@comptroller. nyc. gov v. DEP FN Documents – fixedassetmanagement@dep. nyc. gov v. End of Year Contract Procedures (FMS Bulletin)

FUTURE PROJECTS AND AGENCY INVOLVEMENT – STATUS UPDATE 2013 Deloitte - Management Letter Comment : During the fiscal year 2013 audit, one selection was noted where an item from the current year building additions population was related to a capital asset that should have been reported as an addition in 1996. The asset had been misclassified as work-in-progress (“WIP”) and was not subject to depreciation. 2016 BOA – Capital Initiative v. Infrastructure Fund – Merger: v. Preliminary Infrastructure Discussions

LEASE EXPENSE (SECTION O). CONTACT: TAMMY TRUONG 212 -669 -8039 AND ADETUTU LONGE 212 -669 -4285 Report was sent via e-mail on June 2, 2015. v Agencies must review the Lease Expense report for the following: v 1 -Missing leases 4 -Landlord Name 2 -Terminations 5 -Expirations 3 -Amendments 6 -Minimum annual base rents and balances Please pay special attention to the instructions on the top of the report. v The “Terminated” or “Inactive” check boxes should be marked if the lease was terminated or inactive in the current or past fiscal years. v

LEASE EXPENSE (SECTION O) CONTINUED CONTACT: TAMMY TRUONG 212 -669 -8039 AND ADETUTU LONGE 212 -669 -4285 v The reviewed report along with documentation supporting all changes and corrections must be returned to the Fixed Assets and Capital Projects Division by July 6, 2015 v Hardcopy submissions of the report must be signed and dated by the preparer v E-mail or fax submission is also permissible

LEASE INCOME (SECTION P. ) CONTACT: KAREN BORNSTEIN-MOHR 212 -669 -8016 Lease Income Certification v Lease Income Certification instructions and form was e -mailed to your agency on May 29, 2015. v All Agencies must return the Lease Income certification form indicating the number of agreements held by the Agency no later than July 6, 2015. v This certification form is required even if the Agency has no agreements.

LEASE INCOME (SECTION P) CONTINUED CONTACT: KAREN BORNSTEIN-MOHR 212 -669 -8016 Lease Income Report v On June 2, 2015 Lease Income Report was emailed to your agency. v Supporting documentation MUST accompany all modifications to existing leases. v New leases MUST be accompanied by a copy of the full lease. v Each page of the report must be signed and dated by the reviewer. v July 13 th : Return Lease Income Report

GOVERNMENTAL ACCOUNTING STANDARDS BOARD: LEASE ACCOUNTING PROPOSAL v GASB Preliminary Views on Leases – Statement 13 and 62 v Affects both Lease Expense and Lease Income v One Lease Model v No longer identifying Leases as Operating or Capital v Exception for Short Term Leases – Less than 12 month v Estimated Time of Issuance- TBD

IMPREST FUNDS (SECTION B. ) CONTACT: STEPHEN MESSING 212 -669 -8044 v Submit Accountability Report via email to imprestfund@comptroller. nyc. gov by July 24 th v No hardcopy will be accepted. v Required attachments for Accountability Report; please refer to checklist in the booklet v J 2 I and PRR 1’s documents submitted by the agency must include your contact information and detailed description. v No FY 2016 PRR 1’s can be processed before Bureau of Accountancy has approved your FY 2015 Accountability Report.

INVENTORY OF SUPPLIES (SECTION Q. ) CONTACT: NATASHA WALKER 212 -669 -7405 v Agencies must submit an inventory report as of June 30, 2015 v Submit Inventory Report via email to inventory@comptroller. nyc. gov by July 13 th v Cost of supplies and materials including stamps and postage meters v v v Based on physical count - NOT an estimate Inventory detail supported by documentation must be retained by Agencies Two Inventory Systems are Allowed: v v Periodic - Total count at June 30, 2015 Perpetual - Portions of inventory can be counted during the year v Agencies with less than $5, 000 in Inventory valuation are not required to file a report. However, they must notify us via e-mail they did not meet the threshold to file. v Separate forms should be submitted for: v v Capital Budget Inventory Expense Budget Inventory

FIDUCIARY ACCOUNTS (SECTION R. ) CONTACT: ELVIS CLARKE 212 -669 -8034 v Directive #27, Fiduciary Accounts-Procedures for Requesting, Controlling and Monitoring, is a Directive on the overall accountability, control, and reporting requirements for fiduciary accounts. v Agencies that maintain Fiduciary Accounts must submit the certification signed by the Agency head (or authorized designee) by August 14, 2015; This includes accounts with zero balances.

CLOSING REMARKS & QUESTIONS v Reminder - Importance of Critical Dates v Closing Comments v Questions can be addressed at the Inquiry Tables