Retainage Fund Control

When it is necessary, retainage may be forfeited. The Retainage Fund Controls (RTGFC) page allows users to establish retainage forfeiture rules on a specific Fund for any given Fiscal Year. The page includes two options for each value for the current Fiscal Year and prior Fiscal Year. The flags will be optional, but when populated and the Application Parameters Retainage Forfeiture option is set to 2, the two options will be used to determine whether the specified forfeiture is allowed (when indicator is set to true) or not allowed (when indicator is set to false) for the specific fund, for example:

For each forfeiture method, the user may specify if funds may be forfeited to the current Fiscal Year or the prior Fiscal Year, or both.  If the Retainage Forfeiture Option on Application Parameters is set to 2, the rules will be read by the Retainage Summary By Commodity Line table on save when retainage forfeiture is setup. The retainage forfeiture rules will only be stored on this table.  In cases where a user changes previously established forfeiture rules for a given Fund, Retainage Summary By Commodity Line table will read the modified rules the next time a retainage forfeiture is set up. The NYTI process will roll the set up established forward to the new Fiscal Year. The Retainage Payout process will check with this table for forfeiture rules when the Application Parameters parameter Retainage Forfeiture option is 2.

If the Fund rules are not established for every forfeiture method or if the Fund has no rules for any forfeiture method, then the system will use the First-In-First-Out (FIFO) method to forfeit retainage.  For example, the following rules are established for a Fund:

Since the Forfeiture Method of Forfeiture to Expenditure (as shown above) is set to allow forfeiture in the current fiscal year but prohibit forfeiture of retainage taken in a prior fiscal year, the user will only be allowed to setup for Forfeiture to Expenditure the amount of money that was retained in the current Fiscal Year.   

Because the Forfeiture Method of Forfeiture to Revenue is set to allow forfeiture in the current fiscal year as well as the prior fiscal year, no constraints will apply when the user sets up the forfeiture on the Retainage Summary By Commodity Line page. The system will continue to use the FIFO method when forfeiting retainage. Therefore, the user will be able to set up for Forfeiture to Revenue the amount of money that was retained in the current and prior fiscal years.  

The Forfeiture Method of Forfeiture to Trust and Agency Fund has no rules established to allow forfeiture in the current fiscal year or the prior fiscal year. No constraints will apply when the user sets up the forfeiture on the Retainage Summary By Commodity Line page; the system will use the FIFO method.