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Campus Budget – Oct 2006
AGENDA– Overview
– Major changes Supplemental Allocations
– SWAT
Budgeting for Prior Year Encumbrances Allocating Prior Year Balances
– Equity and Budgets
Building a Budget
– Detail - How the budget is built First Year (2006-2007) Subsequent Years
3
Major Changes
Supplemental Allocation Orders Funding Encumbrances from prior years Balances Remaining
– Allocating in future years Building the budget and reconciling it
4
Components of the “New” Campus Budget
General Fund state support Campus Estimated Revenue Supplemental Funds Received (SWAT) Equity Reserve for Prior Period Encumbrances Equity Reserve for “Roll Forward” funds Campus planned use of Unallocated Equity or
Campus planned contribution to Unallocated Equity
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Past
Budgeting within the Budget Act Appropriated General Fund – The Old Way
– Budget Administration handled by CO Financial Management Services (FMS)
– FMS processes two notices Notice of Allocation Order to campuses Transaction Request to the State Controller
– Both the campus and the SCO recorded a budget entry
– If either party recorded these transactions in error there was a reconciling factor in the SAM99
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Present
Budgeting within the CSU Operating Fund Today– State University Trust Fund (SCO Fund 0948)
– CSU Operating Fund (CSU Fund 485)
– Budget Administration handled by CO Financial Management Services
– FMS processes a Systemwide Allocation Transfer (SWAT Notice) Notice Sent to:
– Campuses Budget Office
– CO Systemwide Financial Operations
– CO SFO will distribute an AD NOAT to campus
– Both the campus and the SCO will record an ACCOUNTING entry Campus MAY record a budget entry
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Future
Budgeting within the CSU Operating Fund in the Future – State University Trust Fund (SCO Fund 0948)
– CSU Operating Fund (CSU Fund 485)
– Budget Administration handled by CO Cash Management Operations
– CMO processes two notices Systemwide Allocation Transfer (SWAT Notice)
– Sent to campus budget office
CSU Cash Posting Order– Sent to campus accounting office
– There is no activity between the CSU and the State Controller
– Campus MUST record an accounting entry
– Campus MAY record a budget entry
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Past, Present and Future
Past– Allocation Orders for all Budgeted Funds
From CO to SCO From CO to campus Campus posts a budget entry
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Past, Present and Future A little more detailed
Present– Allocation Order to General Fund for Final Budget State
Support Only Not operating within the general fund
– CO will process PFA moving funds to campus trust account at SCO CO will notify SCO – (PFA) CO will notify Campus – (SWAT and AD-NOAT)
– SWAT - Systemwide Allocation Transfer Campus posts a budget
– Revenue budget in 506100 – Expenditure Budget in appropriate program
– AD-NOAT Campus posts an accounting entry
– Credit revenue 506100– Debit fund Balance Clearing
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Past, Present and Future
Future– CO will process a cash transfer to the campus account at
CSU Central Bank
– CO will notify Campus (SWAT and Cash Posting Order)
– SWAT - Systemwide Allocation Transfer Campus posts a budget
– Revenue budget in 506100
– Expenditure Budget in appropriate program
– Cash Posting Order Campus posts an accounting entry
– Credit revenue 506100
– Debit Cash
– No more allocation orders to campus
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News Flash
GOOD NEWS– No More FIRMS Budget Edits
Submission is a breeze with lack of error messages
– No More SAM99 for General Fund (0001) One Big Pot of Money at the Chancellor’s Office
BAD NEWS– No More FIRMS Budget Edit
Need new method to ensure accuracy
– No SAM99 for CSU Operating Fund (485) Need new method to ensure accuracy
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Building the Campus Budget
Final budget allocation from CO to Campus– The only notification the campus will receive for
this amount is the annual Final Budget Memo from the CO
– Campuses will not have a general fund account at the State Controller All CSU General Fund monies will be held centrally
in a CO managed account at the SCO
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Budget Control Ideas
Campus Budget Controls (CSU Fund 485)– Ideas to control/reconcile budgets
06/07 Transition – Campus PFA (690003) State Appropriation Adjustment (690106) SWAT In (506100) Campus Revenue from Fees (5XXXXX) Beginning in 07/08 – Fund Equity (305002)
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Sacramento State Example
SAM99 Budget Actual
Mgmt Budget Actual Encumb. BBA
Sources of Funds to Build BudgetCO Allocation Order AO#1-2006 153,000 - CO Allocation Order AO#1A-2006 4,000 - CO De-Allocation Order * (91,000) - Fee Revenue (60,000) (60,000) - State Appropriation Adjustment (690106) * (91,000) (91,000) -
Total Sources for Budget 66,000 - (151,000) (151,000) - -
Uses of Funds Against BudgetPayroll Expenses 198,000 198,000 - Transfer for Payroll before Central PFA (690003) 66,000 66,000 (66,000) (66,000) - Non payroll Expense 19,000 18,000 400 600
Total Uses of Budget 66,000 66,000 151,000 150,000 400 600
Net 485 Total - (1,000) 400 600
* State Appropriation Adjustment (Object Code 6901XX) = CO De-allocation Order Amount for this first transition year
Fund 001 Fund 485 - AAAAA
2006/07 Fiscal Yearas of June 30, 2007
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San Diego Example
Budget Actual Budget Actual Encumb BBARevenue/Appropriation Budgets06/07 State Appropriation - Allocation Orders (650,000) (300,000) (300,000) 006/07 State Appropriation - Deallocation to CO 400,000 0State Appropriation Adjustment (400,000) (400,000) 0System-wide Allocation Transfers (SWAT) In [b] (30,000) (30,000) 0Campus Revenue (320,000) (320,000) 0Prior Year Fund Equity [c] 0
Total Revenue/Appn Budget (250,000) 0 (1,050,000) (1,050,000) 0 0
Expenditure BudgetsState Appropriation (PFA - Payroll, DGS, PI) 250,000 300,000 700,000 700,000 005/06 State Appropriation Carry-forward [d] (50,000)System-wide Allocation Transfers (SWAT) In [b] 30,000 30,000 0Campus Revenue 320,000 310,000 2,000 8,000Carry-forward Budget for Encumbrance (fund equity) 0Carry-forward BBA (fund equity) 0
Total Expenditure Budget 250,000 250,000 1,050,000 1,040,000 2,000 8,000
Fund Equity 0 (10,000) 2,000 8,000
[a] Fund 0001 - Only expenditure budgets are posted to ledger.[b] New process for Supplemental Allocation Orders[c] Fund Equity - Only expenditure budgets are posted to ledger (Note: SDSU has a carry-forward budget view process).[d] 06/07 transition year only
YTD YEAR-END JUNE 30 2007 - Transition YearFUND 0485FUND 0001 [a]
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San Diego Example
Budget Actual Encumb BBARevenue/Appropriation Budgets06/07 State Appropriation - Allocation Orders06/07 State Appropriation - Deallocation to COState Appropriation Adjustment (750,000) (750,000) 0System-wide Allocation Transfers (SWAT) In [b] (40,000) (40,000) 0Campus Revenue (340,000) (340,000) 0Prior Year Fund Equity [c] (10,000) (10,000) 0
Total Revenue/Appn Budget (1,140,000) (1,140,000) 0 0
Expenditure BudgetsState Appropriation (PFA - Payroll, DGS, PI) 750,000 750,000 005/06 State Appropriation Carry-forward [d]System-wide Allocation Transfers (SWAT) In [b] 40,000 40,000 0Campus Revenue 340,000 320,000 5,000 15,000Carry-forward Budget for Encumbrance (fund equity) 2,000 2,000 0Carry-forward BBA (fund equity) 8,000 8,000 0
Total Expenditure Budget 1,140,000 1,120,000 5,000 15,000
Fund Equity 0 (20,000) 5,000 15,000
[a] Fund 0001 - Only expenditure budgets are posted to ledger.[b] New process for Supplemental Allocation Orders[c] Fund Equity - Only expenditure budgets are posted to ledger (Note: SDSU has a carry-forward budget view process).[d] 06/07 transition year only
YTD YEAR-END JUNE 30 2008FUND 0485
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How the budget is built
Source of funds to consider– Prior Year Unspent Amounts
(Fund Equity)– This will be left over Student Fee Money as all CSU
State appropriated amounts will be spent in the year of appropriation
– Current Year State Appropriation Amount (e.g., $ .70)
– Student Fee / Revenue Amounts (e.g., $ .30)
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How the budget is built (continued)
Student Fee and Revenues:– SHALL be included: SUF, Non-Resident Tuition,
Mandatory Course Fees, Application, Transcripts, Rejected Checks, Library, Administrative Allowances, CERF (573) Reimbursement, Parking (583) Reimbursement, and other Miscellaneous Fees
– MAY be included (FSAC will review for final determination): Work Study, Contracts & Grants Overhead, Student Health Services, Independent Operations Revenue, Trust Transfers and other Campus Specific Revenues
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How the budget is built(continued)
How the budget is built (continued)– CMS Tools for Managing the Campus Budget
Sac State Example - CMS Scenario ChartField– Unique 485 Fund with a Global DeptID
$.06 ROLLFWD – Prior Year Unspent <.03> ROLLFWD – PY Enc to Departments <.01> ROLLFWD – BBA to Division Level .70 APPROP – State Appropriation for CY ~ Agrees to CO ACR (or new report) .30 FEES – Student Fee/Revenue for CY <.90> ALLOC – Budget Out to Campus Departments
– Primary 485 Fund with Campus User DeptID’s $.03 ROLLFWD – PY Encumbrances for Departments .01 ROLLFWD – BBA for Division Level .90 ALLOC – Budget In for Campus Departments .00 BUDTX – Internal Campus Budget Transfers
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Ongoing Budget
Handling Your Budget on an Ongoing Basis– Need to Consider
Beginning Fund Equity (equal to PY Budget less Actuals)– Outstanding PY Encumbrances– Reserves
Major equipment purchase, working capital, emergency reserve, etc.
– Remaining Fund Equity Balance State Appropriation (.70 – CO to use for Payroll) Estimated Fee Revenue (.30)
– Campus Options Rollforward PY unspent (encumbrance and BBA) and then
allocate current year budget Rollforward PY encumbrance amount only and then allocate
current year budget (BBA is kept for campus-wide uses) Rollforward 100% of PY encumbrances and a percentage of
BBA and then allocate current year budget
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Equity and BBA
Relationship between Equity and BBA
– Fund Equity – FIRMS Object Code 305002 (Fund Balance – Continuing Appropriation) Cumulative Actuals Net Income/Loss
EQUALS– Budget Balance Available plus Encumbrances
OR Budget less Actuals when “Budget” is equal to CY State Appropriation
plus CY SWATs plus CY Actual Fee Revenue plus Beginning Fund Equity
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Equity Reserves
Reserve Policy– Current Equity Reserve Object Codes
Capital improvement Equipment acquisition Program development Future debt service Facilities, maintenance & repairs Operations (working capital) Campus/debt obligations (encumbrances) Catastrophic events
– Possibility for additional object codes to meet CSU Operating Fund reserve requirements
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It is what it is
It is what it is– Not required to accrue to Zero in CSU Fund 485
at Year End
– Legal Expenditures and Encumbrances will reflect what really happened in that Fiscal Year
– Management will want to establish Campus Reserve Policy with CO guidance Major Equipment Purchases Business Continuity Planning Cash Flow / Working Capital Needs Other
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Things to Remember
During 2006-2007 all campuses will de-allocate their remaining general fund balance to the CO (By year end 690106 in CSU Fund 485 will equal this amount)
Campus generated Payroll PFA transactions between General fund and Trust have been recorded in CSU Fund 485 FIRMS Object Code 690003
CO generated Payroll PFA transactions shall be recorded in CSU Fund 485 FIRMS Object Code 690106
For 2006-2007 the sum of 690003 and 690106 in CSU Fund 485 will equal the campus state support allocation
2007-2008 690003 no longer used– State support = 690106
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Example Worksheets
Excel Files from Presentation– Sac State Example
– Summary of SWAT – PAST Present and Future
– San Diego Example
Microsoft Excel Worksheet
Microsoft Office Excel Worksheet
Microsoft Excel Worksheet
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