Cash Flow

Cash Flow=The amount of money an Agency has paid the ASO that the ASO can use to pay that Agency’s vendors at any one given time.

This page describes the Cash Flow report provided in NMSTAR and how Agency Financial Managers can use the report to monitor vendor spending and how Falling Colors the ASO bills agencies for different fund types. The report can only be run by Agency Financial Managers.

How to Run the Cash Flow Report

1. Click on your Invoices (Lead Agency) link from your Welcome Screen.

2. Click on the Run Report dropdown under Run Reports for Overview.

3. Select the Cash Flow report.

4. Select a Fiscal Year, Agency, and As of Date.

 The report can then be viewed and then exported for review.

 

Open

Open

 

The report will display:

Open

Received is the amount of money the Agency has paid Falling Colors the ASO by the As-of-Date.

Paid is the amount of money the ASO has paid to that Agency’s vendors.

Cash Flow is the amount of money the ASO has on-hand on the As-of-Date in the Agency’s bank account to be able to their vendors.

Pending Receivables is the amount of money that the ASO has billed the Agency and is currently awaiting payment for.

Pending Payables is the amount of vendor services that are awaiting payment for the Agency.

Expected Cash Flow is the amount of money the ASO could have on-hand on the As-of-Date in the Agency’s bank account if the Agency pays the Pending Receivable amount to the ASO, and of the ASO pays the Pending Payables amount to the vendors for services that are awaiting payment for the Agency.

At the beginning of a Fiscal Year, and as various times during a Fiscal Year, the Agency adds and subtracts money to/from their overall budget using Budgetary Letters of Direction (BLODS). The Agency does not pay the ASO their entire budget. The Agency pays the ASO based on the following rules according to what type of Funds the Agency has:

• Federal Funds-The Agency pays the ASO on a Cost Reimbursement basis.

• Other State Funds-The Agency pays the ASO on a Cost Reimbursement basis.

• Special Appropriations-The Agency pays the ASO on a Cost Reimbursement basis.

• State General Funds-The Agency pays the ASO 25% of the budget at the beginning of the Fiscal Year, and then at equal 1/9th intervals ending in April for the Fiscal Year . This establishes the Cash Flow for the agency, thus putting money in the ASO Agency’s bank account so that payments can begin for that Agency.

Invoices are generated every Monday at 12:01am MT and are Pending Approval by the Agency Program Managers on Monday morning. The ASO pays approved invoices every Wednesday.

The Agency Financial Manager should run the Cash Flow Report using today for the As-of-Date to determine if there is sufficient Cash Flow to make an urgent payment.

The Agency Financial Manager should run the Cash Flow Report using today for the As-of-Date to determine if there is sufficient Cash Flow to make all Pending Payments for their Agency.

The Agency Financial Manager should run the Cash Flow Report using today or the next Wednesday for the As-of-Date to determine if there is/are Pending ASO Invoices the Agency needs to pay the ASO for to ensure adequate Cash Flow to make all Pending Payments for their Agency. Agencies are encouraged to pay ASO invoices in a timely manner to ensure no vendors payments are held an additional period of time due to lack of Cash Flow.