What is Centralized Accounting?

Published 12/30/2013 11:45 AM   |    Updated 12/30/2013 11:45 AM
What is Centralized Accounting?
In 2009, the State of Indiana implemented a new web-based accounting system, ENCOMPASS, which compiles financial data from all agencies in a more consistent manner. The inherent efficiencies of this integrated accounting software system have allowed the State Budget Agency to offer consolidated, centralized accounting services to a host of smaller agencies, helping to ensure that these agencies are able to recognize cost savings related to those efficiencies and conform to overall ENCOMPASS-compliant business practices.
Agencies utilizing SBA’s centralized accounting staff are charged a fee based on the number of transactions conducted by those agencies. The fees charged to each agency are significantly less than the cost of maintaining the necessary staff, computers, training, etc., that would be necessary to conduct these transactions on their own with dedicated internal resources.
To date, SBA’s centralized accounting staff perform accounting functions for over a dozen state agencies. As a result, ten full-time positions were subsequently not filled in the consolidated agencies, saving taxpayers approximately $530,000 in salaries and benefits annually. In addition, in many cases, invoices are being paid more timely and federal dollars are being leveraged more efficiently as a result of the level of attention and specialization that a centralized and full-time accounting staff affords to smaller agencies.
For more information on SBA Centralized Accounting, please see http://www.in.gov/sba/2570.htm. If you are a state agency interested in learning more about what specific services SBA can offer, please call (317) 232-5610.
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