CGI Advantage Financial provides advanced functionality to calculate the funding split by which a payment is split for reimbursement. Funding Splits apply when multiple sources fund a Program, for example, Federal, State or Third Party. For example, your data-entry clerk codes the Program, Phase and Activity and the pre-defined funding split ratios are utilized to generate the appropriate Funding Lines. Funding Splits can occur on two time frames: Point of entry (front-end) or prior to the creation of cost billings (back-end). Below is an overview of the different splitting types:
As transactions are processed against a reimbursable program, the amount may be split across multiple funding sources. Front-end Split calculates the amounts to be billed for each funding source. This calculation is based on the Funding Profile captured on each expenditure. As noted in the Funding Agreement Structure (Reimbursable Budget Structure) section, each Funding Profile has one or more Funding Priorities that define the sequential billing ceilings allowed. During document processing, if Task Order Billing is not used, the budget posting routine determines which Funding Priority funds the current expenditure (based on current budget levels and previous billings) and then splits the expenditure across the priority's Funding Lines according to the Funding Lines' percentages. If Task Order Billing is used, then a reimbursement budget is optional and the Splitting Routine will use the only Funding Priority and Funding Line associated with the Funding Profile. The Reimbursement process uses the expenditure amount split to each Funding Line to create the output(s) that the program accountants identified for the funding source. Refer to Running the Reimbursement Cycle section for more information.
For example, assume that separate funds should be used to record the Federal and non-federal shares of an expenditure. When your data entry staff key in the document, their input infers a Funding Profile, which then prompts Front-end Split to calculate the appropriate percentage split (based on current budget levels) and generate multiple lines on the input document to record the Federal and non-federal shares to their appropriate funds.
Note: Back-end Split also uses the same Funding Split Calculation with the key distinction being that the logic is solely invoked on the Charge documents generated by the Reimbursement Selection job.
The special budget structures (for example, Reimbursable Budgets) created for agreement amount tracking and control are impacted/updated at the point of cash disbursement. In other words, even though obligation and accrual expenditure documents can split lines created due to the Front-end Split process, the agreement budget structure will not be updated with these document amounts. Consequently, the official/final determination and recording of the Funding Priority and Funding Line breakdown occurs when the obligation has reached the ”cash expenditure” life-cycle phase or during the billing cycle. The front-end split information on all documents prior to the "cash expenditure” phase is used for estimation and internal reporting purposes only. In most cases, if not all cases, the Federal regulations state that an expenditure is not reimbursable until it has been disbursed. You can access the Front-end Split Log (FSL) to access the detailed split information.
The substantial benefit of the Front-end Split is the up-front recording of expenditures to their reimbursed accounting codes. Splitting the expenditures at the front-end allows for true budget updates to the appropriate budgets and provides a more accurate cash balance at any point in time. Knowing the split in advance of the reimbursement billing cycle also allows your program accountants to better predict drawdown needs and react in advance if any issues arise. Front-end Split, if used by your entity, improves the budgeting, reporting, and cash management functions by more accurately reflecting the accounting for all purchasing and expenditure events.
Front-end Split allows you to directly charge the appropriate Fund codes during document entry (for example, real-time). FES facilitates the charging of the multiple accounting funds with a single line of entry based on pre-defined table-driven rules. The FES process has the capability to support the use of a complex Fund Structure; however, it is not required. In other words, your entity can implement FES without using different Fund codes for the Federal, State and Miscellaneous funding providers.
The substantial benefit of Back-end Split is that fewer posting lines are stored because the Charge documents solely impact the Cost Accounting Journal and not the Accounting Journal. In addition, the documents are created during the nightly cycle and thereby process quicker than a document Submitted on-line during the day via Front-end Split.