Return to CHAPTER 2: ACCOUNTING PROCEDURES

SUBSECTION 2.2.6.2
QUASI-EXTERNAL TRANSACTIONS

2.2.6.2.1

Quasi-External Transactions

Effective Date:

Sept. 1, 1998
 

Quasi-external transactions are transactions within a government that are reported as though they had occurred with organizations external to the governmental unit. Quasi-external transactions are to be accounted for consistently by the accounts involved.

At the end of each fiscal period, any unpaid or unsettled amounts are reported as either interagency or interfund receivables and payables. (Refer to Section 2.2.6.4.4 for illustrative entries.)

To record quasi-external transactions, the paying agency records an expenditure/expense using an appropriate object of expenditure. The receiving agency records revenue using either Revenue Source Code 0420 "Charges for Services," 0450 "Sales of Goods and Supplies - Proprietary Funds," or another appropriate revenue source code. Quasi-external transactions are budgeted as well as accounted for in this manner.

The following are examples of quasi-external transactions:
 

· Internal service fund billings for goods or services, such as purchases from Central Stores and services provided by the Office of the Attorney General. Refer to Section 2.2.6.2.2.
 

· Routine employer contributions from operating accounts to a pension trust fund.
 

· Routine service charges for inspection, engineering, utilities, or similar services provided by one account to another.

2.2.6.2.2

Payment Procedures for Selected Central Services Agency Charges

 

Effective Date:

 

Sept. 1, 1998

2.2.6.2.2.a

The following are selected central services agencies which require the use of unique object codes by the paying agency. A listing of services provided is as follows:
 

· Office of the Secretary of State - Archives, records storage, and microfilm services.
 

· Office of the State Auditor - Auditing services.
 

· Office of the Attorney General - Legal services.
 

· Office of Administrative Hearings - Administrative hearings examiner services.
 

· Department of Personnel - Personnel services for classified employees.
 

· Office of Minority and Women's Business Enterprises (OMWBE) - Certification of minority business enterprises, socially and economically disadvantaged business enterprises, and women's business enterprises statewide.
 

· Department of General Administration - Office space, janitorial services, utilities, buildings and grounds maintenance, campus delivery and mail service, parking, motor pool, Central Stores, risk management, and procurement.
 

· Department of Information Services - Computer and telecommunication services.

2.2.6.2.2.b

The following object codes and payment schedules are to be used by the paying agency for transactions with selected central services agencies: A PDF File

2.2.6.2.2.c

Central service agencies are to present invoices for payment to receiving agencies within 15 calendar days after the end of each billing period.

2.2.6.2.2.d

When problems arise with the collection of interagency receivables, the following steps are to be taken:

2.2.6.2.2.d(1)

The interagency receivables/payables personnel are to contact each other to resolve the problems.

2.2.6.2.2.d(2)

If (1) fails, the accounting chiefs are to contact each other to find a resolution.

2.2.6.2.2.d(3)

If (2) fails, the agencies are to contact their assigned OFM Accounting Consultants.
Return to CHAPTER 2: ACCOUNTING PROCEDURES