1970.33 REV-2

CHAPTER 2. USE OF SYSTEM

2-1. INTRODUCTION. PAS is a transaction-oriented system. All processes

are initiated by the entry of transactions or master control

parameter requests. Files are maintained in order to accumulate

amounts for reporting purposes. Tables are maintained in order to

control the processing of transactions. Accounting records and

reports are generated from the files maintained within PAS.

2-2. INPUT OF TRANSACTIONS.

a\. General. The transactions that are entered into PAS are

divided into the five distinct processing types described

below.

b\. Financial Transactions. These transactions are for the

recording of dollar-amounts in the system and represent the

basic transactions which make this an accounting system. They

include establishing apportionment, allotments, assignments and

subassignments; recording prevalidations and reservations;

establishing unliquidated obligations; recording payments and

receivables; collecting funds, and other miscellaneous

transactions. Each of these transactions initiates posting to

general ledger and/or related subsidiary files, such as

Regional and Field Office files and the file of grantee

records.

c\. Non-Financial Transactions. These transactions are used to

record a name and address for each project within the system

that receives a payment by generated magnetic tape and to

modify project or delete these data.

d\. System Actions. These transactions are primarily involved with

maintaining, adjusting, or closing the system. They include

transactions for month-end adjustments, year-end adjustment,

general closing, and updating system tables.

e\. Error Processing. These transactions relate to the disposition

of errors, both those rejected by the system and those noted by

accounting or program officials after acceptance and posting by

the system.

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1970.33 REV-2

f\. Report Requests. These transactions relate to requesting those

reports which are under user control. These are referred to as

\"Special Request Reports.\"

2-3. FILES MAINTAINED BY THE SYSTEM. The files maintained by PAS are

the core of the system itself. Transactions are processed to

update the files. These files are used to produce reports of

activity on a daily, weekly, monthly or annual basis. The

following files are the ones maintained by the system.

a\. Appropriation file (GRA)

b\. Allotment file (GRL)

c\. Program file (GRP)

d\. Regional Office file (includes Headquarters when it is

considered as a Region) (GRR)

e\. Field Office file (GRF)

f\. Project Level or Grant Record Detail File (GRD)

g\. Letter of Credit file (LOC)

h\. History of transactions files (month-to-date and year-to-date)

i\. General ledger balance file (GLB)

j\. Erroneous accounting transactions file (recycle file)

k\. Status of funds file (SF1)

l\. Name and address file (NAA)

m\. Receivable file (RCV)

n\. Cash reconciliation file (CRF)

o\. Purged project file (PRG)

p\. Purged Letter of Credit file (LRG)

q\. Valid Disbursement Transactions file (AEE)

r\. General Ledger Transaction Summary file (GTS)

2-4. TABLES MAINTAINED BY THE SYSTEM. Certain tables are maintained by

the system in order to control the validity of the data being

entered. These tables are accessed by the PAS coordinator in OFA

only. Each transaction is processed against the tables in order

that the validity of the data within the transaction may be

determined. These tables include the following:

a\. Names and codes of programs and subprograms (PRN)

b\. Names and codes of Regional Offices (ROT)

c\. Names and codes of Area Office (AOT)

d\. Names and codes of appropriations (AST)

e\. Names and codes of general ledger accounts (GLA)

f\. Names and codes of error conditions (ECT)

g\. Transaction code table (TRC)

h\. State Name (STN)

i\. General ledger accounts by transaction (GLT)

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1970.33 REV-2

2-5. ACCOUNTING RECORDS PRODUCED BY THE SYSTEM.

a\. General Ledgers.

Within each accounting office\'s set of records up to four

general ledgers are kept for each program\--one for the current

fiscal year; if applicable, one for each of the two preceding

fiscal years; and, if applicable, a merged ledger for all

earlier open transactions and balances. Each transaction is

posted to the General Ledger for the fiscal year indicated on

the input format. When the books are closed at the end of a

fiscal year, the balances from the second preceding fiscal year

(if any) are merged into the merged (M) general ledger and a

ledger for the new year are processed. For no-year funds, only

one general ledger is maintained for each program for each

office.

b\. Accounts in the General Ledgers.

\(1\) Budgetary Accounts.

\(a\) General. Budgetary accounts for apportionments,

allotments, obligations, and expended appropriations

are employed to control appropriated funds.

Apportionments are made on a net reservation or

obligation basis depending on the program involved.

The \"PRN\" Table indicates which programs have usage

of funds based on reservation or obligation.

Allotments are made at the highest practical level,

and obligating authority is made available to

operating offices through the use of assignments and

subassignments.

\(b\) Control of Obligations. Obligations are classified

by programs, sub-program, allotment code, and

individual grantee. Unliquidated obligations are

normally liquidated upon payment of grantee cash

requisitions or upon receipt of documents showing

letter-of-credit drawdowns. However, the system

provides the capability to reduce unliquidated

obligations owed to grantees, as determined in total

by program from data on grantee reports.

Unliquidated obligations are created: (1) when the

last signature is affixed to a formal contract, or

\(2\) when the last act which makes a binding contract

takes place. Prevalidations and reservations are

recorded when properly approved prescribed forms are

received from program officials (see Appendix 18).

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1970.33 REV-2

\(2\) Real Accounts.

\(a\) Assets. Each general ledger maintains various asset

accounts. These include accounts for cash,

receivables, and advances to grantees. The system

provides for recording cash receipts and Treasury

check disbursements when related documents are sent

to Treasury. Letter-of-credit disbursements are

recorded upon receipt of Payment Voucher on Letter of

Credit (SF-183) or a Daily Support Listing in the

accounting office. Receivables are recorded when

billed. All collections are treated as liquidating

receivables, whether they were previously billed or

not. Receivables and payables are classified as to

type. Procedures for establishing allowance for

uncollectible receivables and for writing off

receivables are included.

\(b\) Liabilities. Liabilities are recorded at the time

they are incurred. They include such items as

amounts of approved cash requisitions on hand at

month-end not yet scheduled, accrued amounts owed

grantees, and payments made to grantees that were

unconfirmed by Treasury.

\(3\) Other Accounts. The general ledgers also contains

accounts to show the investment of the U.S. Government,

income from miscellaneous general fund receipts, expenses

(classified as to type), cash items in transit, and

advances from other agencies. Balances of advances from

other agencies are reduced when HUD incurs obligations for

the benefit of such agencies.

c\. Grant Status Report (SNCA). The Grant Status Report (see

paragraph 6-5) lists all the transactions pertaining to a

project for a fiscal year. This document becomes the permanent

record of project activity for a particular project for the

year and should be retained as a permanent file.

d\. Other Records. The reports produced by PAS generally fit in a

category of reports that give a status of the system that

changes from one reporting period to another. These reports

are not considered to be of a permanent nature but as aids to

making management decisions.

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1970.33 REV-2

2-6. REPORTS. The reports included in PAS are in sufficient detail to

meet external reporting requirements and to meet the data needs of

HUD management. The reports are designed to facilitate management

control of both total funds available for a program and funds

committed to or in the hands of each grantee. Details of the

reports are presented in Chapter 6.

2-7. QUERY LANGUAGE PROCESSING (QLP). PAS has the capability of

producing AD HOC reports using QLP. This gives the user

opportunity to extract information from PAS that is needed on a

non-recurring basis. The OFA PAS coordinator should contact the

Office of Information Policies and Systems if assistance is needed

in this area.

2-8. OVERVIEW OF SYSTEM.

a\. General. This paragraph presents a brief overview of the

system and explains the document flow. There is no data entry

required at month-end or year-end that is not done daily or

weekly. However, PAS performs certain tasks at month-end or

year-end as part of the normal operating procedures.

b\. Document Flow. Documents shall flow through the system in the

following sequence:

\(1\) Source documents are prepared in various program offices

in Headquarters, Regional and Area Offices, and sent to

either OFA or the RAD.

\(2\) A coded input document is prepared from a source document.

NOTE: The source document may be used as the input

document.

\(3\) Input documents are batched.

\(4\) Data are keyed into machine readable form, by batch, from

the input documents.

\(5\) Data are transmitted to PAS and processed.

\(6\) Transaction registers are produced.

\(a\) The erroneous transaction register (AQCA) is sent to

OFA or RAD as applicable. A copy of the RAD

erroneous transaction registers is sent to OFA.

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1970.33 REV-2

1\. Errors are reviewed.

2\. Errors are corrected by the inputting of

additional data, by correcting data elements of

the original input which are reprocessed through

the system or by deletion.

\(b\) The valid transaction register (AQCA) is sent to OFA

or RAD, as applicable, to be distributed. A copy of

the RAD valid transaction registers is sent to OFA.

\(c\) Reports are sent to OFA or RAD, as applicable, and to

other users to be reviewed.

\(7\) Batches of valid transactions are released, source and

input documents are filed.

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