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LOGO
Best Practices
Boise State University Budget Office
Goals for Training
1. Understand Basic Budget Building 1. Understand Basic Budget Building
2. How to Monitor OE, Travel & Capital Budgets
2. How to Monitor OE, Travel & Capital Budgets
3. How to Monitor Payroll Budgets3. How to Monitor Payroll Budgets
4. Understand End of Year Processes 4. Understand End of Year Processes
For Profit vs. Government
For ProfitRevenue –
Expenses = Net Income
Maximize Profit
GovernmentResources Received = Resources Used
Efficient & Effective Use of Resources
Boise State University
Financial Reporting
Fiscal Year
ProgramType
Department Account
FY 2008
July 1, 2007To
June 30, 2008
10 Digit Alpha-Numeric
909A100001
6 Digit Numeric
AssetLiabilityRevenueExpenseFund Balance
Associated with Department
General description of activity
Fiscal Year
12-Months
July 1 to June 30
FY 2008: July 1, 2007 – June 30, 2008
Program Types / Activity Type
Program 01: Instruction Program 04: Research Program 06: Public Service Program 07: Library Program 08: Student Services Program 09: Physical Plant Program 10: Institutional Support Program 11: Academic Support Program 12: Auxiliary Enterprises (Athletics) Program 13: Scholarships
Program Types / Activity Type
006 A 100001
Department
Anatomy of the Department ID
Department identifier
Fund SourceA = Appropriated
L = LocalG = Grant
Section/Unit Identifier
Format: 3-1-6
Alpha Numeric
B i o l o g y
1 = Main Campus
2 = BSU West
Accounts
6 Digit Numeric“Buckets”3***** = Revenue4***** = Personnel Costs5***** = OE & Travel (53****)6***** = Capital9***** = Fund Balance
Budget Rollup Accounts
410000 Regular Salary
411000 Part-Time/Irregular Salary
412000 Student Salary
420000 Fringe Benefits
500000 Operating/Other Expenses
530000 Travel
600000 Capital Outlay
Types of Financial Statements
Income Statement GL Department Detail Report
Balance Sheet
Etc.
Users of our Financial Statements
DepartmentsDeans / VP’s /
Provost / PresidentState Board of
EducationGovernor /
LegislatureLending institutionsAuditors
Uses of Financial Statements
Track progress towards goalsCompare Actual with Plan/BudgetCommunicateModify behaviorAssess financial conditionAssist in evaluating efficiency and effectiveness
Why do we have Budgets?
Control spendingMonitor progress & modify spendingCommunicateRequired
Kinds of Budgets
Appropriated General Fund (taxes)
$80 million Budget Tuition
$47 million Budget
***A****** Departments
Local & Auxiliary Other Student Fees User Fees F&A Transfers from
Foundation $26 million Local
Budget $61 million Auxiliary
Budget
***L****** Departments
Appropriated Budget Process
BSU Budget Process
JULY: Budget effective
AUG: Submit Budget Request to SBOE
DEC: Annual Planning Documents
MAR: Local Budget Templates
MAR: JFAC & SBOE sets Budget MAY: BSU
sets department budgets
Local Budgets
Budget = a plan or estimateMost common meaning for businessBudget is not a guaranteeNo budget transfersAnnual budget preparation: March – MaySeparate budget bookLook at the bigger picture **
** Think of: Fund Balance = Spending Authority
Why Budget Local Departments?
Required to submit Local Budgets to the State Board of Education (For FY08 864 budgets sent out, 648 returned
75%)Estimate activityEnsure strategic plans are metMake better planning decisionsGives you something to compare current activity
against
How does a Local Budget work with the Fund Balance?
Fund BalanceSalary OE
10,000 5,000 5,000
Budget
How does a Local Budget work with the Fund Balance?
Fund BalanceSalary OE
10,000 5,000 5,000 (3,000) (3,000)
Budget
How does a Local Budget work with the Fund Balance?
Fund BalanceSalary OE
10,000 5,000 5,000 (3,000) (3,000)
7,000 2,000 5,000
Budget
Auxiliary Budgets
Auxiliary Enterprises are essentially self-supporting per SBOE policy
Annual budget preparation: March - AprilInformation for budget preparation
Projected enrollment Salary and payroll expense Utilities Administrative Service Charge
Separate budget book
Auxiliary Budget Overview
16 Auxiliary Enterprise Departments FY08 Revenue = $61,315,648FY08 Expense = $61,260,842FY08 Total Employee FTE = 357.85
Auxiliary Budget Revenue
AUXILIARY REVENUE BY CATEGORY
APPROPRIATED3.9%
STUDENT FEES16.6%
PRIVATE GIFTS6.6%
TICKET SALES & EVENTS14.8%
SALES & SERVICE49.2%
FACILITY RENTAL2.9%
ADVERTISING & PROMOTIONS2.6%
OTHER REVENUE3.4%
Appropriated Budget
Annual Planning Documents Request additional budget for upcoming fiscal
year. Used to plan for the next years budget request Planning Communicate
Approved New Budget is communicated to department through VP or Provost
Appropriated Budget Book
DistributionLists $$ support from State and from StudentsLists permanent budget for each appropriated
department
One-time vs. Permanent Budget
Permanent transfers increase or decrease the next years original budget (base) as well as this years budget
One-time transfers only effect the current year’s budget
Budget Transfers
Allowable Budget TransfersClearing Budget Errors
One error holds up the entire journal entry
Budget Transfer Form Appropriated Only Correct signatures Plan ahead – remaining fiscal year
Not just one pay period at a time
Monitoring OE, Travel & Capital
Reports Department Detail Report Department Summary Report Appropriated Budget Summary Budget Overview DDR Query & Pivot Table
Monitoring OE, Travel & Capital
DDR Query & Pivot Table On-line instructions:
http://finad.boisestate.edu/aa_home.htm Pros and Cons of using DDR Query
Additional entry information Entry signs are ‘reversed’ No budget information
Examples: Single DeptID – 12 months side-by-side Single DeptID – 3 Years side-by-side Multiple DeptIDs – side-by-side
Monitoring OE, Travel & Capital
Local & Auxiliary Fund Balance
What to look for on reports No deficits in fund balance
Budget What to look for on reports No budget transfers
Except for: Auxiliary, computer labs, & a very few others
Monitoring OE, Travel & Capital
Appropriated Budget
What to look for No deficits in budget
Allowable Budget Transfers One-time vs. Permanent Timing of transfers
Monitoring OE, Travel & Capital
Tracking – Folders and Spreadsheets Folders for
Open Payments Pending Invoices Pending P-Card Pending Deposits Posted Expenses Posted Revenues
When picking an account Be Specific, Reasonable & Consistent Examples: Non-employee travel is OE
Folders - Example
Folders
I’m going to purchase MS Project with my P-Card. Cost is about $100.
Folders
I’m going to purchase MS Project with my P-Card. Cost is about $100.
Memo: Acct: 557000 Desktop Software
Folders
Memo:
P-Card “Statement”:
$107.59
Office Max
Code to 557000 Desktop Software
Match Memos to P-Card “Statement”
Folders
Memo:
P-Card “Statement”:
$107.59
Office Max
Code to 557000 Desktop Software
Place in Pending P-Card Folder
Folders
Place in Pending P-Card Folder
Memo & P-Card “Statement”
Folders
Match P-Card Statement to PeopleSoft
Memo & P-Card “Statement”
Department Detail Report:
500000 OE
557000 Desktop Software
P-Card Wargo 107.59
Folders
File in Posted Expenses Folder
Memo & P-Card Statement
Department Detail Report:
500000 OE
557000 Desktop Software
P-Card Wargo 107.59
Folders
File in Posted Expenses Folder – Keep 5 years
Detail Report
P-Card Statement
Memos
Folders
Department Detail Report:
500000 OE
571020 Minor Tools
Home Depot $456.78
?
??
DDR query.
Call AP (if source document is AP) or Accounting to get more information.
Folders
Department Detail Report:
?
Call AP (if the source document is AP) or Accounting to get more information.
Invoice Copy
$345.67 Office Solutions
Reconciliation Workbook
Advantage of folders: Tracking expenses from your office to PeopleSoft
ExampleAdvantage of Workbook
Tracking permanent vs. one-time budget
Monitoring Payroll
Reports & Tools Payroll Expense Distribution Report
Example
Payroll query from Business Manager
Budget Position Action Request (BPARs)
Main focus is on the position Submit BPAR if requesting permanent new position
Must have APPROVED funding Permanent Budget (transfer if Appropriated) Approved Supplemental Funding Request (SFR) form if
funded by an appropriated department
Other reasons for submitting BPARsAcademic Areas
Must have Department Chair, Dean & Provost signatures before submission to the Budget Office
Non-Academic Areas Must have Director & Vice President signatures
Employment Action Forms (EAFs)
Main focus is on the employee Submit EAF for reappointment if:
funded by grant for temp employee, change in salary, term, title
Importance of submitting EAFs in a timely manner If late, creates payroll corrections & could delay first
paycheck Effective Dates Contract Dates/Working Dates
Prorated Salaries
Prorated Salaries Employees working less than 12 months Example
Who Funds Salary Changes?
Faculty & ProfessionalClassified
Appropriated Salary Savings
What is Salary Savings? Salary savings occurs when there is a vacancy in
a permanent PCN that is funded by an appropriated department
Appropriated Salary Savings
Items needed for salary savings request Budget Book GL Detail Budget Salary Ledger Query (provided by your
Business Manager) Pivot Table Example
Department Salary Summary by PCN Template (will be provided by the Budget Office upon request)
Request for Use of Institutional Salary Savings Form Has to be directly related to a PCN Timing of contracts can impact salary savings
Appropriated Salary Savings
How do I figure out the amount of the salary savings? Department Salary Summary by PCN Template Request for Use of Institutional Salary Savings
Will be reviewed by Budget Office
End of Year Processes
Carryforward Sweep Timing Permanent Budget for payroll (July Payroll Errors)
Behind the Scenes Budget TransfersSTARS Cutoff
Additional Training Opportunities
Budget & Accounting Drop-in Sessions Tue October 16, 2007 9am Tue November 20, 2007 9am
PeopleSoft Training October 10, 2007 9am – noon Call Suzy White x 6-2543
Let’s Talk – Account Codes October 24 11am