Bureau of Accounting and Financial Management
Our Goal… is to provide the commonwealth with exemplary financial service through innovative, accurate and timely processing and reporting to promote accountability, transparency and the effective use of taxpayer resources.
We Achieve Our Goal… by providing quality governmental accounting, financial management and financial reporting services that enable commonwealth agencies to better manage their diverse financial operations; by leading the commonwealth’s efforts to assess and implement new accounting standards; by providing prompt and courteous service to agencies and business partners; and by ensuring the commonwealth’s accounting system properly reflects each agency’s financial activities, and that those activities are performed within the parameters of the authorized budget and applicable commonwealth and federal statutes, regulations and policies.
The Bureau of Accounting and Financial Management (BAFM) consists of six divisions. The size and diversity of commonwealth financial activities requires a broad range of governmental accounting skills and expertise.
The Financial Management Division serves as the finance business process owner and liaison to the Office of Administration, Office for Information Technology, Bureau of Integrated Enterprise System regarding matters that affect the financial functionality of the SAP enterprise resource planning system and provides consultative and analytical financial services to commonwealth agencies. It maintains the general ledger chart of accounts, supports fixed asset and project systems, monitors balance sheets, completes monthly and year-end closing activities, and issues budgetary financial statements in the SAP system. The division promotes and manages enterprise-wide efforts to improve the efficiency of financial services, including ensuring contracts provide for the use and acceptance of credit cards, expanding the Purchasing Card Program, expanding the use of electronic invoicing and payment for utility costs, and negotiating the commonwealth’s statewide indirect cost allocation plan.
The Financial Reporting Division oversees and coordinates the preparation, audit and issuance of the CAFR (used to report balances and results of commonwealth activities in accordance with generally accepted accounting principles (GAAP)) and the state-level single audit report (a federally-mandated report disclosing the financial results of federally funded programs administered by the commonwealth and the commonwealth’s compliance with applicable laws and regulations) and monitors the resolution of state-level single audit findings. The division monitors developments in governmental accounting and reporting standards, assesses the impact of new standards on commonwealth accounting and reporting practices, ensures conformance to applicable standards through monitoring and action plans and provides consultative services to commonwealth agencies and entities regarding the application of such standards. It also oversees issuance of the Treasury-State Agreement and submission of the annual interest report to the U.S. Department of the Treasury, in accordance with the Cash Management Improvement Act.
The General Accounting Division provides accounting expertise and performs a broad range of financial, budgetary and revenue accounting services to ensure agencies operate within their authorized budgets and that financial records and accounting transactions comply with GAAP. The division monitors and analyzes commitments, expenditures and revenues; performs cash management analyses and funds forecasting; reconciles revenues and expenditures to Treasury and bank balances; ensures appropriate balances are lapsed at the conclusion of each fiscal year or as otherwise required; processes accounts receivable and interagency billings; prepares accounting entries for deposits of cash, checks, money orders, electronic funds transfers and automated clearing house transfers; prepares financial statements for commonwealth special funds; and supports the preparation of the CAFR by preparing financial schedules and making accounting entries in the SAP system as needed. The division consists of two units:
The Federal Accounting Division manages the accounting, monitoring, cash management and reporting functions for federal grants awarded and federal contracts and agreements entered into by the commonwealth. The specialized staff within the division’s six customer units ensure agencies’ program activities comply with the programmatic and financial requirements of each federal award, contract or agreement. Federal Accounting also reviews and verifies information reported in accordance with the Federal Funding Accountability and Transparency Act. Customer units are grouped as follows:
The Special Accounting Division provides and supports commonwealth-wide specialized accounting functions, including development and maintenance of a uniform accounting and reporting system for over 700 local education agencies; maintenance of the PA Public School Accounting Manual in accordance with GAAP; maintenance of accounting records and cash accounts for insurance companies in liquidation; provision of accounting and reporting services for PennDOT projects and more than 15 commonwealth loan programs administered by PENNVEST, the Office of the State Fire Commissioner, Pennsylvania Industrial Development Authority, Pennsylvania Minority Business Development Authority, and Commonwealth Financing Authority; and billing the Federal Highway Administration and processing closeout documentation for federal highway projects. The division consists of three units:
The LCB Services Division maintains the budgetary accounting records of the State Stores Fund and Liquor License Fund, maintains the general ledger accounting records for the State Stores Fund in the Oracle enterprise resource planning system and prepares financial statements and reports on the PLCB’s activities and balances. The division also handles accounts receivable, non-merchandise inventory and fixed asset accounting activities in the Oracle system.