Insurance fund and insurance appropriation accounting reason for issue
SECTION B. GENERAL LEDGER ACCOUNTING
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- 2. MAINTENANCE OF GENERAL LEDGERS
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SECTION B. GENERAL LEDGER ACCOUNTING
General ledger accounts for the insurance funds will be maintained on the ADP system. Each general ledger account, including memorandum accounts will be maintained in a data base master file. The master records are maintained separately on the GL application for each office having insurance transactions.
a. General ledger accounts will not be deleted from or added to the ADP system without the specific approval of the VBA ORM, Accounting Policy and Reporting Division (101/241B). b. The use of a particular general ledger account for system processing is dependent on the system edits, type of transaction and the effects the account has on reports and the various accounting formulas used by the system. This means that a specific account can only be used in the system if the type of transaction and the edits involved accept the transaction as valid; e.g., an account that is programmed to be accepted with a debit entry only for a particular transaction type (TT) will not be accepted by the system when used with an invalid credit entry. Whenever it becomes necessary to change the method of posting to existing accounts, delete old or add new accounts, a complete analysis of the transaction must be made to determine the effects the change will have on the ADP accounting system. A complete explanation of the proposed change will be submitted to the VBA ORM Accounting Policy and Reporting Division (101/241B) in VACO. If it is determined that system modifications are necessary, they will be requested from the Philadelphia Systems Development Center (005Q2D3). c. The instructions covering the maintenance and closing of the general ledger accounts are in Attachment 1 (formerly VA Manual MP-4, Part V, Chapter 8, Appendix K). The instructions on the preparation of input to maintain the accounts on the system are contained in MP-6, Part II, Supp. Nos. 3.1 and 3.2, and the MSA/GEAC Accounting Users Guide. d. At the end of each month, the MSA/GEAC system will produce a listing of all general ledger account master records for each station. The account balance and the accumulated debits and credits as of the end of each month will be shown. This listing will be filed in a binder and will be maintained as the Insurance General Ledger. The monthly Trial Balance generated from the master records should be reviewed as soon as possible by the Chief Accountant to determine if the general ledger balances appear to be accurate. If balances suggest there has been a processing or accounting problem, notify VBA ORM Accounting Policy and Reporting Division (101/241B) to determine if a rerun is appropriate. e. As of September 30th each year after the regular end-of-month processing is completed, a special end-of-year run will be made by the system. This run will automatically process year-end closing transactions. After final processing is completed, the general ledger master record will reflect an opening balance if applicable. The accumulated debit and credit fields will reflect zeros. An opening Trial Balance, as of October 1st, will also be generated at this time. The opening Trial Balance and the year-end Trial Balance should be reviewed as soon as possible by the Chief Accountant to determine if the general ledger balances appear to be accurate. If balances suggest there has been a processing or accounting problem, please notify VBA ORM Accounting Policy and Reporting Division (101/241B) to determine if a rerun is appropriate. f. It is the responsibility of accountants processing general ledger transactions after month-end processing has been started on the system to determine the effects such transactions have on fiscal reports. In some instances, it may be necessary to process a transaction to effect a change in a fiscal report which has been completed by the ADP system in the first phase of month-end processing. Such transactions will be analyzed and a determination must be made to see if it will be necessary to request a rerun on the system so that the additional transaction(s) may be included on the reports. g. In regard to MSA/GEAC month-end and year-end processing, all communications with Computer Operations will be through the Philadelphia Finance Section. When VBA ORM Accounting Policy and Reporting Division (101/241B) has finished their input for month-end, they will notify Philadelphia Finance via phone with a confirmation via electronic mail (E-Mail). Philadelphia Finance will notify Computer Operations (20M43E) via phone with confirmation via E-Mail when all transaction input is complete. Using reports and/or Suspended Batch Master, Finance sections will determine whether or not additional transactions are required. VACO will communicate to Philadelphia whether or not they will be entering transactions. When all corrections have been entered, Philadelphia Finance will advise Computer Operations to run an additional correction run. This cycle will continue until no further corrections are required. Philadelphia Finance will then advise Operations to run Pass I Reports. After Pass I, VACO Finance will advise Philadelphia Finance whether or not adjustments are necessary. Operations will then be notified that either an additional correction run will be needed or that month-end processing is to continue with Phase II updates and Pass II Reports. All monthly processing will be completed by close of business on the last workday of the month. The daily update cycle will resume at 3:30 PM (Philadelphia time) with no notification required. In the event that accounting and/or processing errors are detected after month-end processing has been completed, please notify VBA ORM Accounting Policy and Reporting Division (101/241B) to determine if a rerun request is appropriate. Chief accountants should review all monthly reports on the last day of the month.
a. The MSA/GEAC system will generate a daily listing identified as "General Ledger Transaction Listing." All processed transactions for that day will be shown on the listing. (1) The listing will show the accounting documents and related entries as they were processed from the input documents. Each accounting document will be identified by a specific transaction type or TT number (MP-6, Part II, Supp. No. 3.2, Figure 106F1). (2) The listing will also include system generated accounting transactions from regular daily insurance In-Force and Awards runs, the occasional Allotment-DFB run as well as other special transactions. Each accounting action is identified by a special TT number. b. The daily listings will be filed and will be maintained as insurance journals. c. The MSA/GEAC system will also generate listing of all input transactions entered for a particular day. Included on the listing will be items rejected by the system and identified with a specific reason code (MP-6, Part II, Supp. No. 3.1, Figure 103.F4 and MSA/GEAC Accounting Users Guide). (1) The listing will be used as a control to make certain that all rejected items are resubmitted into the system for processing. Transactions that fail edit requirements will be identified with a reject code. Before rejected input is resubmitted, the complete transaction will be analyzed to make certain that all adjustments have been made. NOTE: This input listing is generated from a VA-written stand alone program. See MSA/GEAC Accounting Users Guide for input and/or reject listings generated as part of that software package. d. Based on certain accounting formulas and system matching of contra entries, a daily listing identified as "Daily X Foots" will be generated for each station. Each particular series of accounts is totaled, and under normal conditions there should be no differences between the series. It is the responsibility of the accountants to check this daily listing. Any amounts noted on the "difference" line should be analyzed and necessary corrective action taken. Any differences that appear at the end of the month will be resolved prior to the final processing runs for the month. e. Accounting transactions which affect the Standard Form (SF) 224, Treasury Statement of Transactions, are also reconciled on a daily basis. A listing identified as "224 Reconciliation" is generated daily. All transactions that affect the disbursing authority accounts are accumulated and a formula based on the debit and credit entries is applied and if all entries are normal the "balance" line should show that there are no differences. Accountants are responsible for checking the listings. When a difference appears it must be resolved and corrective action taken as soon as possible. If the difference appears at the time transactions for the last day of the month are processed, it must be resolved before final processing is accomplished on the system. f. Every month, after the accounting transactions for the last processing day number are completed, the interest accruals are computed for policy loans and dividend credits and deposits. The loan balances for 4 percent, 5 percent, and 11 percent are extracted from the 810 Report and input to MSA/GEAC EOM Pass I, via appropriate transaction types 384, 385, and 383 respectively. The system, based on an internal formula, will use the loan amount and account balances to automatically calculate and post the interest accruals via system-generated transaction type 380s. Accrued interest on dividend credits and deposits is automatically computed and posted by the system.
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