SWIFT will be unavailable on Tuesday, June 30, 2020, beginning at 6 p.m. for soft close. The system will become available Wednesday, July 1, 2020, once soft close is complete. A system notification email will be sent to users when the system becomes available.
Reminder to Buyers: Please be aware of the system downtime. This includes the Supplier Portal. Avoid scheduling events to close on July 1st. Depending on when the system comes up, bidders and suppliers may or may not have time to enter bid responses if an event is scheduled to close on July 1, 2020.
Agencies should not roll forward appropriation balances into budget period 2021 or process actual transfers for budget period 2021 before July 1. Minnesota Management and Budget (MMB)'s SWIFT Module Support will be monitoring for 2021 transfers and will have agencies reverse transactions with a transfer correction for those transfers that are processed before July 1. Agencies can process anticipated transfers (XATs) prior to July 1 in order to set up expense budgets and encumbrances.
As we approach the end of the fiscal year (FY), it is important to ensure that outstanding 2020 accounting transactions are complete. To the extent possible, these transactions should be fully processed by June 30. For More Information about any of these items, please review the previous SWIFT Newsletters - June 11, 2020.
1. Identify and process all known receipt and expenditure corrections related to FY 2020.
2. Deposit at the bank and record in SWIFT all miscellaneous cash receipts received on or before June 30.
3. Review transactions to make sure they are fully processed in SWIFT. Here are some resources to help with this review:
4. Review and close negative encumbrances.
5. Statewide Indirect Cost invoices are due June 30.
Agencies should make all effort to pay them timely. The invoices do not include the federal portion as this is paid separately.
Recently your agency should have received an email containing any open/unpaid invoices for the 3rd quarter billings along with the 4th quarter billings from Minnesota Management and Budget's (MMB) general accounting department. Please note that this is not the typical practice, as these are typically either emailed or mailed to agency’s by MMB’s Fiscal Services department. However with the current COVID-19 situation and most teleworking, this method was chosen to get the invoices to agencies as quickly as possible.
6. Federal Indirect Cost Payments.
Agencies need to process their federal receipt vouchers for the indirect costs timely as well to be included in the reverse bilateral netting process. Please see Budget and Accounting Instructions Document 2 for details on how to enter Federal Indirect Cost Vouchers. You can find it on the SWIFT Budget and Accounting Instructions page.
The reverse bilateral netting process will be run on the following dates:
• June 23, 2020
• July 7, 2020
• July 21, 2020
• August 4, 2020
• August 18, 2020
7. FY 2020 Transfers.
Agencies are to complete any known FY 2020 transfers by June 30, so that the fiscal year and the budget year are the same. This helps to minimize manual adjustments in the ACFR reporting.
8. BFY 2020 Year-End Spending.
All goods and services must be encumbered according to MMB Statewide Operating Policy 0901-02, Fiscal Year-End Closing Transactions – Pre-Encumbrances/Requisitions, Encumbrances/Purchase Orders, Expenditures/ Payment Vouchers. Payments for services rendered or goods ordered after June 30 must be made from BFY 2021.
As part of the year end clean-up activities, the PO Reconciliation (PO Close) job is scheduled to run Tuesday, June 30. The PO Reconciliation Job closes purchase orders that have been fully matched by setting the Status to “Complete.” See the SWIFT Procurement Year End Processing Tips for additional information.
The next scheduled run of the PO Close job is the hard close weekend of August 7.
Remember, you can prevent the PO Reconciliation Job from closing a purchase order by selecting the “Hold From Further Processing” checkbox on the purchase order header page. You can use this checkbox if you plan on increasing the purchase order at a later date.
In preparation for the year-end closing, the SWIFT team is offering a Close and Cancel Purchase Order webinar. It will provide an overview of the various ways to close and cancel purchase orders and purchase order lines in SWIFT. It allows time for questions. To learn more about this webinar or other SWIFT webinars, see the SWIFT Training and Resources item in this update.
The Minnesota Department of Revenue will be administering the following new sales and use taxes effective July 1, 2020:
Lyon County 0.5% will end Transit Sales and Use Tax on June 30, 2020.
The sales and use tax rate changes apply to sales made on or after July 1, 2020. They will be in addition to all other taxes in effect. Local sales tax applies to retail sales made and taxable services provided within the local taxing area (county/city limits). The tax applies to the same items that are taxable under the Minnesota sales and use tax law.
Agencies entering purchase orders for the new fiscal year, prior to the July 1, 2020 tax effective date, will have the old rate calculated and will need to update their purchase orders.
Purchase orders entered in SWIFT on or after July 1, 2020, will calculate the new tax rates for each county/city. Existing purchase orders and/or their vouchers will need to be adjusted to pay the correct tax if delivery occurs after various dates. Please note that the dates will be different based on whether goods or construction materials are being delivered. Check the tax notice for the affected city for the correct dates.
For assistance in changing the sales tax on a purchase order, please consult the Update Sales Tax Settings on Purchase Orders guide.
Please see the Minnesota Department of Revenue tax notice for the appropriate city or county for guidance in handling purchase orders and payments during the transition period.
Impact on Accounts Payable:
Vouchers entered in SWIFT on or after the tax effective date will calculate the new tax rates for each county/city if the Invoice Date is on or after the tax effective date. If the Invoice Date is before the tax effective date, SWIFT will exclude the new tax rates. Please review the tax calculation carefully prior to payment on all vouchers with Ship To locations within these jurisdictions.
Impact on Purchase Orders:
SWIFT will be updated with the new tax codes for all existing Ship To addresses located in the affected cities. New purchase orders, created on or after July 1, 2020, will calculate the new rate of tax for the ship to addresses within those counties/cities. Existing purchase orders may or may not need to have the tax code updated on the PO if payment can be processed during any allowed grace period(s), again, see the general notice for each county/city. Previously any Ship To addresses in affected cities may have used the tax code of 0000, State Tax only. To calculate the new combined rate, state and local tax rate, the tax code(s) on the purchase order must be updated to the new tax code(s) from the 0000 tax code. Because of the various transition rules, these codes will not be updated by SWIFT and must be updated by the purchase order buyer.
The SWIFT training team is following the guidance from the Governor’s office on Supporting State Workforce through COVID-19. We are offering online training through webinars, one-on-one sessions, and video tutorials.
To find and enroll in SWIFT webinars, open the Self Service or Administrative Portal and select the ELM tile. On the Learning Management page, select Find Learning on the left menu. On the Find Learning page, enter “SWIFT” in the Description field and choose Search. Seats are available in the following webinars:
|
Webinar |
Date |
Time |
|
SWIFT Overview of the Accounts Payable Module webinar |
June 30, 2020 |
8:30 am to 10:00 am |
|
SWIFT Billing Part 1 webinar |
July 16, 2020 |
9:30 am to 11:00 am |
|
SWIFT Billing Part 2 webinar |
July 16, 2020 |
1:30 pm to 3:00 pm |
You can find reference guides on all modules in SWIFT on the Training Guides and Resources page.
Contact the SWIFT Help Desk for any questions, concerns or issues you have with SWIFT:
651-201-8100, option 2 or by email SWIFTHelpDesk.MMB@state.mn.us Hours: 7:30 a.m. to 4:00 p.m., Monday through Friday; closed holidays. When emailing the SWIFT Help Desk, be sure to include all details regarding the issue.
Information to include with your message:
The SWIFT Update is sent to the SWIFT Newsletter subscription list. Use the links at the bottom of the page to subscribe or unsubscribe to the SWIFT Newsletter subscription list.
