Protecting Prior Month Information
Not everyone may know that the GMS Accounting software has a way to prevent the editing, creating or deleting of any transaction for a prior period. Once a month has been “closed” and the financial reports reviewed and/or approved, you may want to prevent any type of changes to this data, especially if it has been used to generate external reports to a funding source.
Under Tools\User Set Up you will see a tab called Month End Period. If you are the one that made the decision that a particular month end was final and no changes should be made, make sure you click on your user name. And on that form is a Posting Period combo box. If you set the Posting Period at 04/30/15 for example, that will prevent anyone from creating, editing or deleting any batch with a posting period of 04/30/15 or earlier.
GMS strongly suggests that access to change this date be limited to a very few, if not just one person. That way if you are the only employee with access to this form no one can make any changes to the prior period information without first coming to you to set this date to an earlier period.
RLSS Interest Calculation Methods:
How They Work and How to Edit
When a new loan is entered into the RLSS system, there are entries made that determine the method to be used when the interest for that loan is calculated. The method can be either daily or amortized, and is a required field, meaning a selection must be made before the Loan Master file can be saved. If daily interest is chosen, you must also indicate whether the interest is to be calculated on 360 or 365 days per year. The method used by the majority of GMS clients is daily, but the choice is dictated by your loan closing documents. Since closing documents are legally binding, we suggest you talk to your auditor or attorney before changing the method of calculation.
When posting repayments in Loan Activity, the interest is calculated as follows:
Daily Interest: The loan balance multiplied by the interest rate and then divided by either 360 or 365 (as entered in the loan master file) will determine a daily interest amount. The daily interest amount is then multiplied by the days that have elapsed since the most recent activity was recorded as deter-mined by the activity date.
Amortized Loans: The loan balance is multiplied by the interest rate to determine an annual interest amount. The annual interest amount is then divided by the payment frequency (number of payments expected in a year, usually 12) to determine the amount of interest to be allocated to the repayment being posted.
Circumstances may result in the need to change a loan’s terms. One change might be the way interest is calculated. For example, some agencies have closing documents that allow them to switch from amortized to daily when the loan becomes delinquent. There are also times a loan is switched from daily interest calculation to following an amortization schedule.
Whether the loan is being switched from daily to amortized or vice versa, it is important to determine 1) the date of the change, and 2) what is to happen to any interest due on the loan as of that date. The Features menu includes Loan Payoff which can be printed to show how much interest is due. Use the date of the method change as the payoff date, and review the interest fields on the report. “Past Due Accrued Interest” reflects interest that is currently a part of the loan history, and “Additional Accrued Interest” reflects interest that has accrued since the last activity was posted. Knowing how much interest is due may assist with the decision as to whether or not to accrue it for collection at a later time.
If the decision is to not collect accrued interest, take the following steps:
Using Loan Activity, Adjustments, enter a repayment. Use the date of the interest calculation change as the activity date, and enter zero as the activity total. Leave all other fields as zero. This entry should have no impact on the loan balance.
Edit/Save the Loan Master file, Loan Terms tab, to reflect the new interest calculation.
Note: If there is accrued interest outstanding on the loan history which is not to be collected, an adjusting entry is required to clear that interest. Please refer to Help, GMS Help, Loan Activity, Handling Special Situations, Adjusting Accrued Interest for instructions on making this entry.
If the decision is to collect accrued interest, take the following steps:
Daily Interest loan being switched to Amortized:
1. Using Loan Activity, enter a Repayment. Use the date of the interest calculation change as the activity date, and enter zero as the activity total. This entry should have no impact on the loan balance. However, you will see a positive amount in the “accrued interest” field. This reflects the interest that has accrued on a daily basis from the last recorded activity date to the date used for this activity. Once the entry is saved, this accrued interest will be a part of the loan’s history and will be collected automatically from future repayments.
2. Edit/Save the Loan Master file, Loan Terms tab to reflect the new interest calculation.
Amortized loan being switched to Daily Interest:
1. Using Loan Activity, Adjustments, enter a repayment. Use the date of the interest calculation change as the activity date, and enter zero as the activity total. Manually enter the amount listed as “additional accrued interest” from the Loan Payoff report (see above) under both “current interest” and “accrued interest”. This entry should have no impact on the loan balance. Once the entry is saved, this accrued interest will be a part of the loan’s history and will be col-lected automatically from future repayments.
2. Edit/Save the Loan Master file, Loan Terms tab, to reflect the new interest calculation.
Regardless of the entry being made, please pay close attention to the “new paid-thru date” and the “next payment due” fields and be certain they are accurate before saving the entry. Sometimes terms change as part of a work-out agreement, and that agree-ment may also affect these dates. Remember, “next payment due’ determines when a loan appears as delinquent on reports. These entries are necessary to have a record in the loan history that reflects the date of the interest calculation change and to al-low interest to be collected accurately from subsequently recorded activity.
GHG Time & Attendance
Looking for a way to reduce the time it takes to process payroll plus reduce data entry errors? If yes, you will want to attend the GMS Summit session of Time and Attendance presented by Debbie Sabin, Director of Sales at GHG Corporation. She will explain how GHG’s Clockwise time-keeping solutions will help you manage employees and grant funding quicker and more accurately. They offer time and attendance software solutions to assist in grant tracking, leave management and employee self-services such as access to online pay stubs and W-2s.
Debbie has a degree in finance with over 20 years of experience in accounting and financial reporting. Debbie's background in finance, software support, product implementation and project management, enable her to optimize GHG's Clockwise solution to fit each organization's individual needs.
On-site June Discounts
Staff turnover and your new employees would benefit from training? Need help reconciling your accounts or cleaning up your books in preparation for your fiscal year end? If you would like one of our Training & Implementation Managers to come to your agency and per-form on-site staff training for your accounting software or to help pre-pare your books for year end, we will be offering a 10% discount of the on-site fee for the month of June, 2015. Our prevailing rate of $600 will be reduced to just $540 per day during this time! (Additional travel costs still apply.) We have some openings for the weeks of June 1, 8, and 15. These are available on a first come, first serve basis. Book now while there are still weeks available!
Prepaid Maintenance Saves You Money!
Prepay a year’s worth of maintenance fees and save 7.5%. If your fiscal year is getting ready to start, now is the time to contact Sara Drury at 800.933.3501 ext. 3 for further details or to request billing for a whole year. We must receive payment by the last day of the month the bill is received in order for you to receive the discount. If not, the billing will be reverted to the original monthly billing amount and the 7.5% discount will be forfeited.
If you are planning to attend the GMS Summit 2015 in June which will be held at the Grand Hyatt Denver in Denver, CO you must have your hotel reservations in by May 22, 2015 to receive the designated rates. Denver is a popular tourist destination in June plus the hotel’s location of 1 block from the 16th Street Pedestrian Mall makes it a very desirable location so it is extremely important that you make your hotel reservation as soon as you can as space may become limited.
For those of you who would like to add some additional “Fun Time” before or after the conference, remember that the conference rates are available from June 15-30, based on availability.
Looking to get the most value for your conference registration? Schedule a one-on-one appointment with one of our Service & Sup-port Specialists to receive individualized assistance in helping answer questions or solve accounting problems specific to your organization. Appointments are $75 for 90 minutes. They may be scheduled for Monday thru Friday during conference hours based upon availability. Email our Event Director, Robin Berseth, at firstname.lastname@example.org for details or to be scheduled.
Countdown to the Summit!
June 21 - 26, 2015
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Attend the GMS Summit and Get a 50% Supplement Credit
Agencies attending the GMS Summit in Denver, CO will be entitled to a 50% supplement credit. This is a 50% credit on the purchase price of any supplement(s) up to your agency’s total registration price for either the regular Summit or intensive sessions, whichever is greater! This credit is valid from the time of your registration through July 31, 2015. See the Summit brochure on our website for more information. Another great reason to attend the Summit!