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8/13/2019 Bo Overview
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AUBURN UNIVERSITY
BUDGETING & ACCOUNTING Financial Management
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AU BUDGETI NG & ACCOUNTI NGObjectives
Financial overview of AU Business Office introduction Controllers office and account structure Administrative systems, Banner Finance
Budget Services and the budget process
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AU BUDGETI NG & ACCOUNTI NG
What is the Business Off ice?
Controllers Office(Financial Reporting &Property Services)
Mgmt Reporting Budget Services Student Financial Services
(formerly Bursar andFinancial Aid)
Procurement & PaymentServices (formerly AcctsPayable & Purchasing)
Contracts & GrantsAccounting
Payroll & EmployeeBenefits
Information SystemsSupport
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Associate VP forBusiness & Finance
Marcie Smith
DirectorBudget Services
Teresa Vest
Exec DirProcurement &
Payment ServicesShawn Corrigan Asmuth
DirectorContracts & Grants
AccountingSheila Duffield
DirectorManagementAccounting
Cindy Selman
Exec DirPayroll & Employee
BenefitsRonnie Herring
Exec DirStudent Financial
ServicesMike Reynolds
DirectorInformation Systems
SupportMichael Miller
Controller Amy Douglas
Exec SecSandra Bonney
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Procurement & Payment Services Responsibilities
Procurement of and payment for acquired goods and services, includingcompliance, proper accounting and records retention
Manage purchasing card program Promulgate policies associated with procurement & payment Compliance with IRS 1099 tax laws and state escheat laws
Major Projects Enhanced control and fraud monitoring Electronic workflow and imaging of financial documents
Challenges Decentralized buying and receiving Regulatory climate
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Payroll and Employee Benef its Responsibilities
Ensure the timely and accurate pay and all accounting of payroll & benefits for all AU employees
Manage all benefit programs
Major projects Benefit analysis and wellness program Post retirement actuarial update
Challenges Cost containment of health insurance program Decentralized time entry
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Contracts and Grants Accounting Responsibilities Financial reporting and sponsor billing for all sponsored agreements Oversees federal, state and other compliance related to financial aspects
of sponsored agreements
Facilities & Administrative rate development and recovery distribution Major Projects
Effort certification automate & improve compliance Development of Banner reporting
Challenges Keeping abreast of regulatory climate Maintaining adequate compliance in decentralized environment
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Student F inancial Services Responsibilities
Manage student financial aid program Bill and collect all student tuition and fees
Record revenue received by AU Maintain student billing system Major Projects
Implementation of Banner student info system Integration of activities of billing/receiving with student financial aid to
assure optimal cost savings and efficiencies Challenges
Maintain complex tuition/fee structure Maintain compliance with constantly changing Title IV Higher
Education Regulations
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M anagement Accounting Responsibilities
Provide university-wide management reports and analysis Assist units in preparing management reports
Preparation and analysis of reserve reporting Oversee capital budgeting, deferred maintenance and debt needs Major Projects
College/School needs assessment Development of management reporting and presentation to campus
constituents Challenges
Defining, creating, automating management reports to meet all needs Dissemination of information in formats acceptable to deans,
department heads, financial managers, etc.
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I nformation Systems Suppor t Responsibilities Programming, tech support for finance and human resource systems Desktop/server support for Business Office & other administrative units Liaison with central information technology
Production support data entry, print, imaging financial documents Major Projects
Banner reporting Budget development system Converting AS400 data and systems
Challenges Prioritizing to meet needs of all users in current climate of new systems Constantly changing IT environment
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Banner Project Off ice Responsibilities
Coordinate activities of users, information technology, outside consultants,steering and executive committees in implementation
Recommend policy changes and software purchases to senior administration Manage project budget
Major Projects Completing student implementation for Fall 07 roll-out Implementation of workflow and executive reporting
Challenges Prioritization of competing demands for technical resources Coordination of upgrades in a relational database environment
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AU BUDGETI NG & ACCOUNTI NGOther F inancial Services
Treasury Services Development Accounting Alumni Accounting Risk Management & Safety
Internal Audit
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AU ACCOUNTI NG & BUDGETI NGM ission Statement
The mission of the Business Office is to provide leadership in the development,implementation, and continuousimprovement of the business and financialservices essential for Auburn University to
pursue its mission of teaching, research, andoutreach
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AU ACCOUNTI NG & BUDGETING
Service is important Compliance is important Constant balancing act to do both
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AU ACCOUNTI NG & BUDGETI NGService and Compliance
Increased demands for financial information Enhanced technology Federal Regulatory Climate - IRS, Federal
Sponsors, Dept of Education, CostAccounting Standards
State regulations travel, bid law, publicworks law
Governmental Accounting Standards andFinancial Accounting Standards
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AU ACCOUNTI NG & BUDGETI NGWorld Wide Web I nformation
Description of each business office Financial Policies & Procedures
Information can be found athttp://www.auburn.edu/administration/business
_office/
OR on Banner site athttp://auaccess.auburn.edu (will require user IDto log into Banner)
http://www.auburn.edu/administration/business_office/http://www.auburn.edu/administration/business_office/http://auaccess.auburn.edu/http://auaccess.auburn.edu/http://www.auburn.edu/administration/business_office/http://www.auburn.edu/administration/business_office/8/13/2019 Bo Overview
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Controllers Office
Role of Controllers Office
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AU ACCOUNTI NG & BUDGETI NGControllers Office
Our Customers: Federal and State regulatory agencies External auditors Bond Agents and banks Other Institutions for benchmarking
Internal Users - Presidents Office, VicePresidents, Deans, Directors and DepartmentHeads and YOU!
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AU ACCOUNTI NG & BUDGETI NGControllers Office
Responsibilities: Preparing annual, audited, published Financial
Statements Coordinate Financial Audit and A-133 Audit of Federal
Funds, NCAA Audit Accounting for University Assets
Cash - monthly bank reconciliations Property, Plant and Equipment-Reported in General Ledger Capitalized Equipment Recorded in Fixed Asset Module
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Responsibilities continued: Process Bond Payments and reconcile accounts
related to debt service, ratio analysis Preparation of various tax returns including
990T, sales tax and excise tax
Prepare Journal Entries for transfers andcorrections, review ITVs and DECs, analyzeaccounts, do special projects
Implement service centers policies Key role in Banner Finance System
AU ACCOUNTI NG & BUDGETI NGControllers Office
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FINANCIAL SYSTEMS
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AU ACCOUNTI NG & BUDGETI NG
Banner Basics
Banner Project Financial System
October 1, 2005 implementation Includes budget system, finance system, payables, purchasing,
fixed assets Training ongoing (HRD classes offered each semester), Banner
Boost
Human Resource System July 1, 2006 implementation (includes payroll, leave information)
Student Info System (Billing/Receivables) July 1, 2007
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AU ACCOUNTI NG & BUDGETI NG
Banner Basics
Access to systems AU ACCESS is web -basedwith a single sign-on
Two types of access Banner Self-Service andBanner Admin
The AU Access portal provides calendar,announcements, shortcuts to processing, policiesand procedures, and other information
Many transactions can be processed electronically purchase requisitions, budget, etc.
We are working toward being able to processimaged documents
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AU ACCOUNTI NG & BUDGETI NG Finance System
Accumulation of hundreds of thousands oftransactions in various funds, orgs, accountsand programs allows AU to meet thereporting needs for State of Alabama
Annual Financial report Federal funds audit And many more.
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AU ACCOUNTI NG & BUDGETI NG More Finance System
Banner Finance Includes an accounts payable and purchasing function
Grants module for sponsored programs/project tracking Fixed assets system for recording depreciation/Detail of
Capitalized Assets Ability to download financial information into
spreadsheets for additional reporting and monitoring Monthly and other reports delivered electronically
via E-Print. Other report options coming throughARGOS reporting
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AU ACCOUNTI NG & BUDGETI NG More Finance System
All financial information is captured in uniqueaccounts (Now referred to as FOAPs in Banner)
Where the money comes from, restrictions on theuse placed by outsiders and how it is spent allinfluence the classification of dollars in theFinance System
Allows for budgeting, reporting and trackingresources received and used
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AU ACCOUNTI NG & BUDGETI NG WHAT IS A FOAP?
Fund assets, liabilities and fund balances identified bytype (ex. Unrestricted base budget funds, plant funds,restricted sponsored project fund)
Org revenue, expenditures and budget for a uniqueorganizational unit. Identifies Who is spending the funds.
Account five digits which identifies What type ofrevenue, expense, asset, liability, etc.
Program identifies the function or purpose of expense(instruction, research, etc.) AND A-21 classification ofexpense (organized research, general administration, etc.)
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AU ACCOUNTI NG & BUDGETI NG Example
Fund Org Account Program
101001 113600 70935 7000
UnrestrictedBase Budget
Procurement &PaymentServices
Supplies InstitutionalSupportexpense
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AU ACCOUNTI NG & BUDGETI NG Self Service Banner
Uses traditional web browser Easy to use and understand
Transaction processing Use for purchase requisitions and budget transfers Approvals routed electronically
Query Balances for year-to-date transactions and budgets available Only operating ledger revenues, expenditures and budgets
Overall, limited functionality
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AU ACCOUNTI NG & BUDGETI NG Banner Admin
Special navigation is required training iscritical
Expanded functionality Vendor query Fund (General ledger) information
Project basis accounts
construction and grant
accounts gives project-to-date expenses andrevenues
Query and reports downloading available
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Auburn University Budgeting
Role of Budget ServicesAU Budget Process
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AU ACCOUNTI NG & BUDGETI NGBudget Services
Auburn Universitys annual financial plan isexpressed as an annual budget
The office of Budget Services is chargedwith the responsibility for the completeAuburn University budget, including the
systems used to develop and track budgets,for all divisions
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AU ACCOUNTI NG & BUDGETI NG
Budget Process
Budget Advisory Committee Board of Trustees - tuition increases
Legislature - passes appropriation in April Budget Preparation - usually late June through
September
Currently using online budget developmentsystem created by users and programmers at AU Typically an incremental process
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AU ACCOUNTI NG & BUDGETI NGBudget Process
Individual colleges/schools and VP areas use thecombination of a Banner product, Salary Planner, and anin-house developed system called Stripes to prepare the
annual budget. Budget Services balances and summarizes the budgets for
presentation and approval to the Board of Trustees New salaries are loaded into the Human Resource System
Total budgets are uploaded into the Finance system New tools were utilized starting in the FY08 budget year
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AU ACCOUNTI NG & BUDGETI NGBudget Year
October 1 is the beginning of the fiscal year September 30 is the end of the fiscal year
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AU ACCOUNTI NG & BUDGETI NG
Budget Changes
Budgets can be modified throughout theyear by processing budget changes online in
the Banner System (AU04) Instructions to web-based system found on
the Budget Office website:
www.auburn.edu/budget
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AU ACCOUNTI NG & BUDGETI NGBudget Carryover
Unused Budget can be carried forward andspent in future fiscal years
Provides incentive More efficient/effective use of funds
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AU ACCOUNTI NG & BUDGETI NGBudget Car ryover
Reserve reporting is done annually tosummarize carryover and resources
available to each unit Units are encouraged to use existing
resources for one-time needs
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MORE CHANGES
Electronic pay advices Internal control emphasis (SAS 112) Enhanced reports Imaging/workflow
New policies signature authority, cell- phone, etc.