Minnesota Department of Transportation

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MnDOT Policies

Special Revenue Fund Procedures

For Special Revenue Funds Policy #FM025

Effective Date: March 12, 2021
Revised: November 4, 2022

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Introduction

This document is the technical companion to the Minnesota Department of Transportation’s (MnDOT’s) Special Revenue Fund Policy.

The Minnesota Department of Transportation (MnDOT) must create a Special Revenue Fund appropriation for all contracts under which MnDOT receives non-federal funds. Special revenue funded contracts must be created pursuant to the Contract Management Policy and Contract Management Manual. Employees must follow the Special Revenue Fund Procedures to establish budgets, collect and spend funds, and disperse remaining funds per contract terms at the time the appropriation is put on hold. Expenditures must be for the work specified in the contract and must be moved from the related fund to the Special Revenue Fund in the year the expenditures occurred.

Financial Requirements

  • Special revenue funded contracts must describe what each party will provide, the agreed-upon scope of work, and the financial responsibility of each party.
  • Special revenue funded contracts must establish a beginning and ending date. If the contract will continue past the anticipated ending date, an amendment to the contract must be written and signed before the contract expires.
  • Costs must be tracked for goods and services rendered.
  • If a lump sum special revenue funded contract is written and fully executed, the financial terms can only be amended with approval of the Director of Financial Management. Offices and Districts cannot change how much is owed or when the payments are to be made without the approval of the Director of Financial Management.
  • Excess funds for non-lump sum special revenue funded contracts shall be refunded or returned to the related fund according to contract language.
  • Excess funds for lump sum special revenue funded contracts shall be cancelled to the Trunk Highway Fund when the contract is completed.
  • The Office of Financial Management may deduct a pre-determined percentage to cover the costs of managing billing and collections for Damage Restitution that may be adjusted annually.
  • For encumbrances, refer to the Contract Management Procedures.
  • In rare instances, the legislature designates a Special Revenue Fund appropriation for a specific activity, and a contract is no longer necessary as the statute creates the legal authority for the spending.  Funds are collected through fees and spent as statutorily mandated. Offices and districts encumber funds for products and services used for this activity either in the Special Revenue Fund appropriation or in an operating budget appropriation. Expenditures are either directly applied or moved from operating budgets to the corresponding Special Revenue Fund appropriation as applicable per the legislatively mandated activity.  Examples of this type of Special Revenue Fund are Forest Hauler Fees, Training appropriations and Damage Restitution.

Definitions

Allotment

Breakdown of appropriations into smaller management control units. Allotments establish spending ceilings based on the total amounts entered on related expense budgets.

Appropriation 

Authorization by the legislature to spend money from the state treasury for purposes established in law. Appropriations typically limit expenditures to a specific amount and purpose within a fiscal year or biennial period.

Appropriation Maintenance Application (AMA)

System used to create new appropriations, establish appropriations in a particular budget period, or modify an existing appropriation.

Automated Clearing House (ACH), electronic payment

Primary system used for electronic funds transfer (EFT).  Funds are electronically deposited in financial institutions and payments are made online.

Cash Accounting Billing System (CABS): 

A database compiler in Microsoft Access for expenses that aggregates SEMA4, RCA and Material Inventory records for any expenses charged to a Project ID starting with a TA98 or a TA99 (Project ID coding for city or county).

Contract Work Order

A document, which is considered a Contract, issued under the authority of a Master Contract, and which directs the Contractor to perform specific work and provides for payment for that specific work, all subject to the general terms set forth in the Master Contract.

Deposit Correction

Entry in SWIFT to move the funds to the correct fiscal year and/or correct funding string.

Excess Funds

The difference between the actual cost of the contract and the estimated budget for the contract.

Expense Budget

A budget used to manage the expenditures that will be expended during the budget period and track all of the spending for a particular appropriation. An expense budget must be present in order to process a transaction since spending control is facilitated at the allotment level.  Once appropriate sources of funding have been established, expense budgets can be posted.   

Funding String

The elements of a funding string include the Fiscal Budget Year, Fund, Fin DeptID, Appropriation ID, Account Codes, and Project ID. The funding string is used to designate the revenue and/or expense budget for either spending or collecting monies.

Journal Voucher (JV)

A mechanism in SWIFT for making an intra-agency payment. With a special revenue funded contract, a journal voucher should be used for transferring expenditures to the Special Revenue Fund appropriation.

Lump Sum

A contract payment method which provides a fixed payment for performing work required by a contract, regardless of the actual costs required to perform the work.  A lump sum may be paid at one time upon completion, or it may be broken into multiple payments, such as per-deliverable or "progress" payments.

Master Partnership

A contract allowing one party to procure routine services from another party, which the parties agree will enhance the efficiency of delivering governmental services at all levels.

One-Time Receivable Technical Services Partnership Contract (formerly known as TA99)

A signed form requesting MnDOT services for a one-time need, not to exceed $5,000. This type of contract is used when there isn’t a Master Partnership Contract with a customer.  Current overhead rates are added to all One-Time Receivable Technical Services Partnership Contracts.  The funds received from One-Time Receivable Technical Services Partnership Contracts are deposited into the related fund.  Funds cannot be returned to District or Office budgets.

Originator

The person initiating the contract proposal process. This can be a Contract Administrator, Project Manager, or Authorized Representative.

Project ID

A number used to identify a unique project and to accumulate direct and indirect costs which makes the data available for reporting. 

Proposal

An internal MnDOT document that shows management approval of the basic terms of an agreement with the other party to a proposed contract.

Restricted Fund

A fund which is authorized by legislation that allows a government entity to collect money from an external entity and restricts those monies for a specific purpose.

Revenue Budget

A forecast of expected receipts for the fiscal year that is critical to budget management because it defines encumbrance constraints. Revenue budgets are used to allocate and record all dedicated and non-dedicated revenues earned for a given fiscal year. Revenues include both cash receipts and accounts receivable. 

Special Revenue Fund

A non-federal restricted fund (2000 and 2001 funds) in which to deposit receipts for a specific purpose.

Procedures - Regular Special Revenue Funded Contracts

Special Revenue Fund - Proposal Procedure

Business Unit responsible for procedure: Contract Management

Version: 1.00
Effective Date: March 12, 2021
Revised Date: November 4, 2022

Objective

To standardize the routing and approval process for a Regular Special Revenue Fund Proposal.

Procedure Steps

Step

Action

Responsible Party

Timeline
1

Originator (Office/District) will contact Contract Management regarding process for starting a proposal.

Originator (Office/District)

N/A
2

Contract Management will advise the Originator what forms and process to use. 

Contract Management

24 hours
3

Originator (Office/District) will send a proposal draft and “Attachment A: Detailed Estimated Cost of Contract.”

Originator (Office/District)

Up to 1 month
4

Contract Management will review, and Operating Budget Support may review the proposal draft and “Attachment A”. If more information is needed, Contract Management will send the proposal back to the Originator (Office/District) for revisions. If the proposal does not need revision, Contract Management will determine if the proposal is for a Shared Facility.

Contract Management/Operating Budget Support

1 week

5

If the proposal is not for a Shared Facility, Contract Management will send the proposal to the Office Director or District Engineer (DE) for a signature.
If it is a Shared Facility, and the first signature has been obtained, the proposal will route to the Office Director or District Engineer (DE) for the next signature.

Office Director or District Engineer

24 hours
6

OFM Director will review, approve, and sign the proposal.

OFM Director

1 week
7

If the proposal is over $100,000, the Assistant Commissioner or Assistant Division Director will review, approve, and sign the proposal.

Assistant Commissioner

1 week
8

Senior Legal Counsel will review, approve and sign the proposal.

Contract Management

Within 48 hours
9

Notify Fiscal Support to setup funding.

Contract Management

Within 24 hours
10 OFM Fiscal Support enters the appropriation budget into Appropriation Maintenance Application for MMB approval with contract end date noted. OFM Fiscal Support/MMB 24 to 48 hours
11 OFM Fiscal Support verifies appropriation budget in SWIFT and creates revenue and expense budgets. OFM Fiscal Support 24 to 48 hours
12 OFM Fiscal Support returns completed funding string request to Contract Management and notifies Operating Budget Support and District FPG Contact. OFM Fiscal Support 24 to 48 hours
Forms

Forms associated with the procedure:

Federal and State Requirements (if applicable)
Contact(s)
  • Office of Financial Management Director
  • Contract Management

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Special Revenue Fund – Contract Draft and Approval Procedure

Business Unit responsible for procedure:  Contract Management and Fiscal Support

Version:                     1.00
Effective Date: March 12, 2021
Revised Date: November 4, 2022

Objective

To standardize the drafting, routing, approval and signature process for Regular Special Revenue Fund Proposals and Contracts.

Procedure Steps

Step

Action

Responsible Party

Timeline
1

Originator (Office/District) contacts the partner/customer to negotiate the contract.

Originator (Office/District)

1 week
2

Contract Management to draft contract after negotiations are complete.

Contract Management

1 week
3

Partner/customer signs the contract.

Partner/customer

1 week
4

Partner/customer returns the signed contract to the Originator (Office/District).

Partner/customer

1 week
5

Originator (Office/District) routes to Contract Management.

Originator (Office/District)

24 hours
6

Contract Management routes contract to Assistant Commissioner/Assistant Division Director for signature.

Contract Management

1 to 3 days
7

Under $1M Contract Administrator signs (final signature) and contract is approved.

Contract Management

1 to 2 days
8

Over $1M Contract Administrator initials then is routed to Dept. of Admin for signatures.

Contract Management

1 to 2 days
9

Dept. of Admin returns contract to Contract Management.

Dept. of Admin

1 week
10

Contract is distributed with the proposal to the Originator (Office/District), Fiscal Support, Budget Support, OFM Partnership Billing, and OFM Director.

Contract Management

24 hours
11

Originator (Office/District) returns a copy of the signed contract to the partner/customer.

Originator (Office/District)

24 hours
12 Originator contacts FPG/Finance contact to begin tracking costs associated with contract. Originator (Office/District) 24 hours
Forms

Forms associated with the procedure:

Related Policies and Procedures

Contract Management Policy (Contract Management Resources iHUB Page)

Federal and State Requirements
Contact(s)

Office of Financial Management Director

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Special Revenue Fund - Invoice Creation Procedure

Business Unit responsible for procedure: OFM Partnership Billing

Version:                     1.00
Effective Date: March 12, 2021
Revised Date: November 4, 2022

Objective

To outline the process for creating a Special Revenue Fund invoice.

Procedure Steps

Step

Action

Responsible Party

Timeline
1

Send the Special Revenue Fund Invoice Request to the shared mailbox:  ARAgreements.DOT@state.mn.us.

Originator in Office/District or District FPG Contact

As received by OFM State Aid & Capital Analysis

2

Review billing: OFM Partnership Billing reviews the Special Revenue Fund contract or billing request within one day of receiving to determine:

  • Whether this is a new request which requires a funding string to be set up, or
  • Previous request has been done so a file should exist.

OFM Partnership Billing

Within 24 hours

3

Determine if funding string has been set up.
Yes (standard): Proceed to step 4. (Contract Management requests funding string and Project ID prior to the receipt of the invoice request).
No (exception): Request funding string from OFM Fiscal Support and request Project ID from Contract Coordinator.

OFM Partnership Billing

1 week
4

Once the funding string and the Project ID are set up, verify that the appropriation and expense budget are set up and open in SWIFT for the current fiscal year.  Review the Project ID to ensure it is “open” in SWIFT.

OFM Partnership Billing

1 to 2 days
5

Determine if partner has been billed previously.
If yes, navigate to CAATS and review contract. Review and verify:

  • Amendments.
  • Contract Balance.
  • Expiration date of the contract.
  • Signatures.

*If there are any problems with invoicing for the contract, e-mail the Originator that is listed on the contract or the District FPG Contact.


If no, set up customer in SWIFT. Once the customer has been set up in SWIFT, proceed to review the contract before billing.

OFM Partnership Billing

Within 24 hours


Problems with the contract or amendment can take weeks to correct
6

Review the billing request for clarity and accuracy and complete a SWIFT Receivable Input Data Form.

OFM Partnership Billing

Within 24 hours

7

Create and process the invoice in SWIFT: 

  • If recurring, verify that the amount to invoice has not changed. 
  • Verify the customer's name and address, the amount of the invoice, and the funding string.
  • Use the correct contract number in the Contract Field in the Line-Project Info tab in SWIFT.  The contract number pulls into CAATS.
  • Review the notes section to be sure the information referenced is beneficial to the customer. 
  • Verify the contact information (e.g., city engineer or city administrator).

OFM Partnership Billing

24 to 48 hours
8

Invoice is saved electronically in eDOCS.

  • Invoice is emailed to the partner.
  • Invoice is emailed to Originator and District FPG Contact.   

OFM Partnership Billing

24 to 48 hours

9

The invoice is added to the AR cumulative invoice log which shows all open and closed invoices.

  • When the invoice is sent, it is listed as “Open” on the AR Log. 
  • Invoices are due within 30 days.

OFM Partnership Billing

1 week 

10

A file folder is created for the contract (if it is new) or the new invoice documentation is added to an existing file (A/R Open files).

OFM Partnership Billing

Within 24 hours
Contact(s)

OFM Partnership Billing
ARAgreements.DOT@state.mn.us  

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Special Revenue Fund - Invoice Payment Procedure

Business Unit responsible for procedure: OFM Partnership Billing

Version:                     1.00
Effective Date: March 12, 2021
Revised Date: November 4, 2022

Objective

To outline the process for creating a Special Revenue Fund invoice and recording the payment

Procedure Steps

Step

Action

Responsible Party

Timeline
1

Payments can be received via ACH, paper check, or online payments. 

  • ACH payments must be set up through Cash & Collections. 
    • An e-mail notification with the invoice number and dollar amount is sent to OFMDeposit.DOT@state.mn.us  (invoice must be attached).
  • Paper checks are sent to Central Office.
    • Invoice number must be referenced on the check for proper credit to account.
  • Online payment option at https://webpayments.state.mn.us/dot
    • A service fee will apply to credit/debit card transactions.
    • No service fee will apply to electronic check transactions.

OFM Partnership Billing /OFM Cash & Collections

Within 24 hours
2

When the payment is received, the contract file folder is pulled.

OFM Partnership Billing

Within 24 hours
3

An Appropriation report is created in SWIFT using the funding string that was provided on the invoice to be sure that the money has been deposited into the correct Appropriation.


The amount received is verified in the “collected” line under the Ledger Amounts and that the “unexpended” line amount under Balances also shows the amount collected from the invoice. 

OFM Partnership Billing

1 week
4

After the Appropriation report is checked:

  • The AR Invoice log is updated to reflect the payment has been received.
  • Change the status from “Open” to “Closed.”
  • Record the date the payment is received and the deposit ID.

OFM Partnership Billing

Within 24 hours
5

Email notification of payment is sent to the invoice requester, OFM Budget Support, and Contract Management. 


Email notification includes:

  • The CAATS contract number.
  • Payment date.
  • Payment amount.
  • Payment received from.
  • The funding string (Fund, FinDept ID, and Appropriation).  

OFM Partnership Billing

Within 24 hours
6

After the AR Log is updated and the invoice requester(s) is notified, the contract folder is filed in the OFM Partnership Billing area.

OFM Partnership Billing

Within 24 hours
7

OFM Budget Support or District FPG assists the District or Central Office staff with moving move their expenditures into the Special Revenue Fund appropriation to free up operating revenue spending authority (see Expenditure Recognition Procedure).

OFM Budget Support/ District FPG Contact

1 week

Contact(s)

OFM Cash and Collections: OFMDeposit.DOT@state.mn.us
OFM Partnership Billing: ARAgreements.DOT@state.mn.us
OFM Operating Budget Unit: budgetsupport.dot@state.mn.us

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Special Revenue Fund – Deposit Procedure

Business Unit responsible for procedure:  Cash and Collections

Version:                     1.00
Effective Date: March 12, 2021
Revised Date: November 4, 2022

Objective

Document the deposit process for Special Revenue Funds.  Same process for Master and Regular.

Procedure Steps

Step

Action

Responsible Party

Timeline
1

Receive a payment via ACH, regular check, or online payment.

OFM Cash and Collections

Daily
2

ACH:  Receive email notification in OFMDeposit.DOT@state.mn.us mailbox from cities, counties, and MMB.  Proceed to step 5.


Check:  Receive via regular mail.

OFM Cash and Collections and OFM Special Services

Daily
3

Record payments received by mail on check register. 

OFM Special Services

1 to 3 hours
4

Distribute checks to OFM Cash and Collections.

OFM Special Services

5 minutes
5

Verify whether there is an invoice or not against the payment.

  • If yes, go to step 6.
  • If no, investigate origin of payment.  Once verified, proceed to step 6.

OFM Cash and Collections

30 minutes
6

SWIFT entry: post in Accounts Receivable Module. 

OFM Cash and Collections

1 to 2 hours
7

ACH:  Email OFM Partnership Billing that ACH has been received and posted in SWIFT.

 

ACH is completed at this step.

OFM Cash and Collections

5 minutes
8

Deposit checks electronically into banking institution utilizing check scanners.  The checks are digitally endorsed during the scanning process.

OFM Cash and Collections

30 minutes
9

Online payment is made via US Bank

  • Processed through SWIFT to the invoice overnight.
 OFM Cash and Collections 1 day
10

Run payment detail report to verify that payment has been posted in SWIFT without errors.

OFM Cash and Collections/OFM Partnership Billing

30 minutes
11 Email notification to Operating Budget Support and District FPG Contact. OFM Partnership Billing 30 minutes
Federal and State Requirements
Contact(s)

OFM Cash and Collections: OFMDeposit.DOT@state.mn.us

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Special Revenue Fund – Expenditure Recognition Procedure

Business Unit responsible for procedure: Operating Budget Unit

Version:                     1.00
Effective Date: March 12, 2021
Revised Date: Not applicable

Objective

To provide guidance on how to ensure expenditures are being properly applied to Special Revenue Fund appropriations.  Each Special Revenue Fund appropriation has receivable funds and expenditures that must be applied in accordance with the set contract. Expenditures are applied to Special Revenue Fund appropriations in several different ways.

Finance Coordinators, Originators, and District FPG Contacts should oversee the appropriations to ensure that expenditures are applied correctly and in a timely manner.

Procedure Steps

Step

Action

Responsible Party

Timeline
1

Collaborate with Originator to review the contract and eligible expenditures and ensure all expenses have been invoiced.

OFM Budget Support/ District FPG Contact

When new Special Revenue Fund Appropriation is created

2

Complete monthly review of special revenue funded contracts for unexpended receipts.

OFM Budget Support/ District FPG Contact

Up to 1 week
3

Adjust expense budgets for unallotted receipts.

OFM Budget Support/ District FPG Contact

1 to 4 weeks
4

Reconcile Operating and Special Revenue expenditures to ensure spending authority has been restored to the Operating appropriation.  This occurs with the movement of expenses to the SRF appropriation.  These are processed with journal vouchers in SWIFT.

OFM Budget Support/Consultant Services/OFM Partnership Billing / District FPG Contact

1 to 4 weeks
5

Verify expenditures are eligible.

OFM Budget Support/ District FPG Contact

24 to 48 hours
6

Verify correct account codes, source codes, and project numbers have been used for expenditures directly applied.

OFM Budget Support/ District FPG Contact

24 to 48 hours
7

Process journal voucher to move expenditures from operating budgets to respective Special Revenue Fund appropriation.

OFM Budget Support/Consultant Services/OFM Partnership Billing / District FPG Contact

24 to 48 hours
8

Review special revenue funded contract to verify that threshold has not been exceeded.

OFM Budget Support/ District FPG Contact /Originator

1 to 4 weeks
Federal and State Requirements
Contact(s)

OFM Budget Support: budgetsupport.dot@state.mn.us

OFM Partnership Billing: ARAgreements.DOT@state.mn.us

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Special Revenue Fund - Close Out Procedure

Business Unit responsible for procedure: Operating Budget Unit, Originator, District FPG Contact, and OFM State Aid & Capital Analysis Unit

Version:                     1.00
Effective Date: March 12, 2021
Revised Date: November 4, 2022

Objective

To provide guidelines of initiating the close out process.

Procedure Steps

Step

Action

Responsible Party

Timeline
1

Originator notifies District FPG Contact or OFM Budget Support:

  • Referencing the contract number.
  • Confirming all components of contract are complete.

Originator

Completion of contract
2

District FPG Contact, OFM Budget Support, or Originator reviews the contract, runs the appropriation report, and verifies how much has been collected and expended.

OFM Budget Support/Originator/ District FPG Contact

1 Week
3

District FPG Contact, OFM Budget Support, or Originator emails OFM Partnership Billing at ARAgreements.dot@state.mn.us to begin review of Special Revenue Fund appropriation.

OFM Budget Support/Originator/ District FPG Contact

24 to 48 hours
4

OFM Partnership Billing begins the process of closing the contract and appropriation.

  • Verification from Originator that contract is complete.
  • Review the contract.
  • Run the appropriation report.
  • Verify how much has been collected and expended.

OFM Partnership Billing

1 week
5

OFM Partnership Billing contacts Originator, District FPG Contact, OFM Cash and Collections, and/or OFM Budget Support for further clarification on balances remaining in the appropriation, etc.

OFM Partnership Billing

1 week
6

Review appropriation for remaining balance. Determine amount to be billed, refunded, or returned to related fund according to contract language.

  • If billable, create invoice and proceed to step 4.
  • If refunding or returning to related fund, proceed to step 7.
  • If no remaining balance, go to step 13.

OFM Partnership Billing

1 week
7

OFM Partnership Billing receives written verification from the Originator, District FPG Contact or OFM Budget Support to confirm amount to be refunded or canceled to the Trunk Highway Fund.

OFM Partnership Billing

1 week
8

If refunding, OFM Partnership Billing processes the refund in SWIFT, then notifies the Originator, District FPG Contract or OFM Budget Support.

 

If funds are canceled to the Trunk Highway Fund, OFM Partnership Billing contacts OFM Budget Support.

OFM Partnership Billing

24 to 48 hours
9

OFM Budget Support completes deposit correction form and submits to OFM Cash and Collections for processing.

OFM Budget Support

24 to 48 hours
10

OFM Cash and Collections processes deposit correction and notifies OFM Budget Support.

OFM Cash and Collections

24 hours
11

OFM Budget Support, District FPG Contact or Originator contacts OFM Partnership Billing to request to close the Project ID.

OFM Budget Support/Originator/ District FPG Contact

24 hours
12

OFM Budget Support, District FPG Contact or Originator contacts OFM Fiscal Support at fiscalsupport.dot@state.mn.us to put the appropriation on hold (if not already on hold as Appropriation cannot be open past the contract end date budget period). Send a copy of the email to the Operating Budget Director.

OFM Budget Support/Originator/ District FPG Contact

24 hours
13

OFM Fiscal Support reviews whether there is any additional expense/revenue budget clean up needed in SWIFT.

OFM Fiscal Support

24 hours
14

OFM Fiscal Support creates the request in Appropriation Maintenance Application (AMA) for appropriation to be put on hold.

OFM Fiscal Support

24 hours
15

OFM Partnership Billing files contract paperwork in “closed” file cabinet.

OFM Partnership Billing

1 week
16 OFM Fiscal Support emails confirmation to OFM Budget Support, District FPG Contact and/or Originator when appropriation has been put on hold in SWIFT. OFM Fiscal Support 1 week
Forms
  • Deposit Correction Form 
Contact(s)

OFM Operating Budget Unit: Budgetsupport.dot@state.mn.us
OFM Cash and Collections: ofm_deposit@state.mn.us
OFM Fiscal Support: Fiscalsupport.dot@state.mn.us
OFM Partnership Billing: ARAgreements.DOT@state.mn.us

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Special Revenue Fund - Closing Project IDs Procedure

Business Unit responsible for procedure: OFM Budget Support and OFM State Aid & Capital Analysis

Version:                     1.00
Effective Date: March 12, 2021
Revised Date: November 4, 2022

Objective

This document outlines the process to request the closing of a Project ID for a special revenue funded contract. 

Procedure Steps

Step

Action

Responsible Party

Timeline
1

Verify that all Special Revenue Funds for the Contract have been invoiced for and payments have been received.

OFM Partnership Billing

As received
2

Contact the Originator, District FPG Contact or OFM Budget Support to verify that all work has been done and there are no pending amendments for the contract.

OFM Partnership Billing

Within 30 days of expiration of contract
3

Review the SRF appropriation to verify there is no remaining balance.  A remaining balance reflects expenditures in the Operating appropriation which need to be moved to the SRF appropriation. 

OFM Partnership Billing

24 to 48 hours 

4

If the expenses have not been moved into the SRF appropriation, then contact Originator, District FPG Contact or OFM Budget Support to get expenses moved to free up their operating budget.

OFM Partnership Billing/ OFM Budget Support/District FPG Contact

Within one week
5

After the expenses are moved into the SRF appropriation, any additional funds left in the appropriation must be refunded or canceled to the Trunk Highway Fund. 

OFM Budget Support/ District FPG Contact

Within one week
6

When the SRF appropriation has the collected receipts matching the funds expended, the District FPG Contact or OFM Budget Support requests the appropriation to be put on hold. 

OFM Budget Support/ District FPG Contact

Within one week
7

The Special Revenue Fund Project ID must be requested to be closed.  Once closed in SWIFT, the contract file can be closed and filed.

OFM Partnership Billing

Within one week
Federal and State Requirements

Do not close any Federal Project IDs, this should only be done by OFM Program Accounting.

Contact(s)

OFM Cash and Collections: ARAgreements.DOT@state.mn.us
OFM Operating Budget Unit: budgetsupport.dot@state.mn.us

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Special Revenue Fund – Placing Appropriation on HOLD Procedure

 Business Unit responsible for procedure: OFM Budget Support, OFM State Aid & Capital Analysis, and OFM Fiscal Support

Version:                     1.00
Effective Date: March 12, 2021
Revised Date: November 4, 2022

Objective

To provide guidelines of placing a Special Revenue Fund appropriation on hold.

Procedure Steps

Step

Action

Responsible Party

Timeline
1

Verify that all expenditures have been moved and all refunds/cancellations have been processed.

OFM Fiscal Support

As received
2

Contact Financial Coordinator in OFM Budget Support if step 1 isn’t complete.

OFM Fiscal Support

24 to 48 hours
3

Submit request in AMA.

OFM Fiscal Support

24 to 48 hours
4

Approve request in AMA and contact MMB Executive Budget Officer (EBO).

OFM Fiscal Support

24 to 48 hours
5

Verify appropriation is on hold.

OFM Fiscal Support

1 to 2 weeks
6 OFM Fiscal Support emails confirmation to OFM Budget Support when appropriation has been put on hold in SWIFT. OFM Fiscal Support 24 hours
Federal and State Requirements

Do not place any Federal Project Appropriation IDs on hold.  This should only be done by request by the OFM Grants Unit.

Contact(s)

OFM Fiscal Support: Fiscalsupport.dot@state.mn.us
OFM Operating Budget Unit: budgetsupport.dot@state.mn.us

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Procedures - Master (Blanket) Partnerships

Master (Blanket) Partnership – Special Revenue Fund Procedure

Business Unit responsible for procedure: OFM Cash and Collections Unit

Version:                     1.00
Effective Date: March 12, 2021
Revised Date: Not applicable

Objective

To give a step-by-step overview of the Master Partnership Special Revenue Fund procedure.

Procedure Steps

Step

Action

Responsible Party

Timeline
1

Contract Management sends the signed contract to OFM Cash and Collections.

Contract Management

N/A
2

Routine Master Partnership?

  • Review contract. Determine if Master or Work Order.

Master:

  • Falls in scope of Exhibit A.
  • Applies to TA98, proceed to step 3.

Work Order:

  • Falls out of scope of Exhibit A.
  • Needs a Special Revenue Fund appropriation.
  • If the contract involves a Work Order, send to OFM State Aid & Capital Analysis.
    • If it falls under the TA98, proceed to step 3. 

OFM Cash and Collections

5 to 10 minutes per contract
3

Verify if the customer exists in SWIFT or not.

  • If not, create a customer ID.

Verify that there is an existing TA number.

  • If there is not, create a TA number. Process is to open TA98000-TA98999 spreadsheet, review what numbers are open, use the ordering system.

If there is a TA number, move to step 4.

OFM Cash and Collections

5 to 10 minutes per contract
4

Run CABS report using the access system. Material, equipment, payroll, expenses tied to TA98.

OFM Cash and Collections

10 to 20 minutes, once a month
5

Compare to project folder; Analyze and verify the charges are correct (correct customer, correct activity, etc.). Run batch for cities and counties for a 4 to 6 week period of time.

OFM Cash and Collections

2 weeks (minimum) to process and invoice charges
6

Attach supporting documentation (run crystal reports, send emails). Save copies electronically (One Note) and by paper.

OFM Cash and Collections

2 weeks
7

Ok to bill?

  • Yes, proceed to step 8.
  • No, and if corrections are needed, submit to applicable section (may be Payroll, MNIT, or MMS). After system update, go back to Step 2 and start verification process again.

Once charges have been corrected and confirmed, delete incorrect charge in CABS database.
For charges that are already correct, proceed to step 8.

OFM Cash and Collections

2 to 4 weeks
8

Run CABS verification report to produce invoice in CABS (this is the invoice that will go to the customer) and send email to OFM MNIT for MMB error check.

OFM Cash and Collections

30 minutes
9

Email OFM MNIT - send (flat file) invoice to MMB for verification.

OFM MNIT

30 minutes
10

MMB contacts OFM MNIT once verified.

MMB

Within 24 hours
11

OFM MNIT contacts OFM Cash and Collections.

OFM MNIT

Within 24 hours
12

Receive email from OFM MNIT that invoice is good. Save a copy (print invoice in PDF) on one note, print paper invoice from CABS.

OFM Cash and Collections

30 minutes
13

Generate invoices in SWIFT (do not print).

OFM Cash and Collections

15 minutes
14

Go into SWIFT and load the AR update.

OFM Cash and Collections

15 minutes

15

If there are any credits in the system, do maintenance worksheet to offset previous invoice.

OFM Cash and Collections

30 minutes
16

Mail out printed paper invoice from CABS (PDF package).

OFM Cash and Collections

24 to 48 hours
17

Customer initiates charge dispute via phone or email. Return to step 7 for error corrections.
If Customer does not find errors, they submit the payment for invoice.

OFM Cash and Collections

5 to 10 minutes
18

Receive payment.

OFM Cash and Collections

Daily
19

Deposit (see Procedures for Deposit).

OFM Cash and Collections Depositors

24 to 48 hours
Forms

Forms associated with the procedure:

Contact(s)

OFM Cash and Collections: ofm_deposit@state.mn.us

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Master Partnership – Invoices Related to Expenses Outside of CABS Procedure

Business Unit responsible for procedure: OFM Cash and Collections Unit

Version:                     1.00
Effective Date: March 12, 2021
Revised Date: Not applicable

Objective

To give a step-by-step overview of the procedures and how to review invoices related to expenses outside of CABS (Cash Accounting Billing System): electrical and road pavement. These cases fall on Exhibit A but are not set up in CABS – these are manually invoiced.

Procedure Steps

Step

Action

Responsible Party

Timeline
1

Receive email requesting invoicing. There are two types of invoicing; electrical and road pavement (pavement marking). This email includes the funding string, names of counties, quantities of how much to bill.
Electrical: Spreadsheet sent as attachment that has complete details for Hennepin County. This spreadsheet will be attached with invoice.
Road pavement: MnDOT contact compiles charges and emails for billing.

Electrical: Electrical Services Section Manager
Road pavement: Materials and Road Research Engineer

Electrical: Quarterly or Bi-annually
Road pavement: Annually
2

Verify the information in SWIFT. Verify Project ID, the customer number (customer number should already be created, and appropriation should be active); if not, check CAATS to see if there is a document that has not been reported. If no document is located, contact Contract Management Contract Coordinator.
Verify amount totals manually with a calculator. Errors are corrected through an error credit rebill process. Send an email to Electrical Services Section Manager.

OFM Cash and Collections

Billed within 24 hours
3

Manually create invoice in SWIFT.  Pull up customer ID number, enter billing portion using the funding codes and relevant information provided.
Note: Enter in amount of material and rate in the invoice notes.

OFM Cash and Collections

Billed within 24 hours
4

Generate invoice process.

OFM Cash and Collections

5 minutes
5

Print invoice and mail to customer.

OFM Cash and Collections

10 minutes
6

A/R Update to load SWIFT.

OFM Cash and Collections

5 minutes
Forms

Forms associated with the procedure:

Contact(s)

OFM Cash and Collections: ofm_deposit@state.mn.us

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Frequently Asked Questions

Can the special revenue funds be transferred directly into an Office operating budget?

No, the funds cannot be transferred into an Office operating budget. Expenditures need to be transferred from the Office operating budget into the respective funding string for the Special Revenue Fund appropriation.

Can a partner pay in arrears rather than in advance?

Yes, when pre-approved by the Director of the Office of Financial Management. In this case, the Office operating budget covers the expense until the partner pays the invoice.

Can MnDOT do anything it wants to do under a special revenue funded contract?

No, MnDOT must still have the statutory authority to perform the project or undertaking covered by the special revenue funded contract.

Is there a limit to the amount of a special revenue funded contract?

No

How can an Office charge payroll time directly to the Special Revenue Fund appropriation?

An employee who is working on a special revenue funded project needs to change the funding on their time sheet. The Fund, Appr ID, Fin Dept ID and Project ID need to be changed on the funding tab in RCA (Resource Consumption Application).

Can an Office create an encumbrance before the funds are received from the partner?

Yes, money can be encumbered but expenditures cannot be made from the Special Revenue Fund appropriation until the funds are deposited.

How can I track how much has been spent on a special revenue funded contract?

A Project ID must be established in SWIFT (Statewide Integrated Financial Tools) at the start of the special revenue funded contract and all expenditures should be charged to the Project ID number. A project report can be created to show all of the expenditures charged to the special revenue funded contract.

Can a special revenue funded contract be “payable” by MnDOT?

Yes, though there may be alternative contracting methods that will work better. Contact the Contract Management Section for further details.

Who transfers the expenditures to the Special Revenue Fund appropriation?

The Financial Coordinator assigned to the Office can transfer the expenditures. A journal voucher should be used for transferring expenditures.