INTRODUCTION
GENERAL
The Statewide Accounting and Reporting
System (STARS) serves as the States
centralized accounting and financial reporting system. STARS
accounts for and reports on statewide financial transactions on
the budgetary basis of accounting (i.e. the cash basis). Under
the budgetary basis of accounting revenue is recorded when cash
is received and expenditures are recorded when cash is expended
with the following exceptions:
- Departments and agencies charge
certain vendor and interfund payments against the
preceding fiscal years appropriations through
fiscal month thirteen
- Certain revenues collected in advance
are recorded as liabilities (deferred revenues) rather
than as revenues
- Certain taxes are recorded on the
modified accrual basis
STARS captures financial data in a
manner that ensures agency compliance with the Appropriation Act.
Specifically, STARS:
- Provides a common basis for financial
reporting of accounting information to all levels of
management within the State
- Provides an historical record of all
financial transactions affecting the State
- Serves as a basis for issuing
financial statements that report on the States
activities in accordance with generally accepted
accounting principles
STARS is a "table driven"
system. This means that key data elements such as agency code,
transaction code, and mini code recorded on STARS input
documents trigger table lookups. The table driven system is
designed to minimize the amount of input data needed to process,
record, and report on the States financial transactions.
The primary functions of STARS are
to:
- Satisfy the legal requirements of
state financial management
- Provide a mechanism for writing vendor
and payroll checks
- Ensure that checks are written only if
cash is available
- Provide data needed to prepare W-2 and
1099 tax information forms
- Provide reports on individual state
agencies and statewide financial activities
STARS requires agencies to:
- Submit input documents or magnetic
tapes coded and formatted in accordance with prescribed
procedures
- Comply with budgetary restrictions,
other finance-related laws and regulations, available
cash balances, and state accounting policies
STARS provides agencies with:
- Daily, weekly, and monthly financial
reports
- Special periodic control reports (for
travel advances, short-term interfund loans, late payment
charges, etc.)
- Magnetic tape output for agencies that
request it
- Special-purpose reports to meet unique
needs
- On-line inquiry access to STARS
financial data files
STARS does not provide:
- Encumbrance accounting
- Trial balance and general ledger
reports that could be used to prepare agency financial
statements
- Accounting or reporting for fixed
assets, inventories, compensated absences, long-term
debt, uncollected accounts receivable, unpaid accounts
payable, and noncash items (e.g. depreciation, bad debt
expense, food stamps, and food commodities)
- Detailed accounting for college and
university financial transactions. College and
universities are called "lump-sum" agencies
meaning they draw down cash from STARS and write
their own checks
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