Faculty of MedicineBusiness Manager MeetingOpen Forum

Operating Cash Flow expectations

Capital Projects setting up capital accounts, transferring funds, time lines

MB Health cash flow requirements

Predecessor Funds (Source of Funds) what are they

Deposits to expense lines

6. Open forum discussionTodays Agenda

Cash Flow ExpectationsPlease make sure your forecast is as accurate as possible. If you are going to have a surplus, the Dean needs to know.If you are going to over expend your FOP, you need to know.Any surplus in the 110000 Fund will be caught up in carry over. Any deficit will come back to the department at 100%.

Capital ProjectsDepartments must identify Capital Projects early- by September

Start with email to SFO listing funding source, project scope, time line. We will assist in setting up the capital fund

Capital funds are carried over at 100% but must be set up early in the fiscal year.

If you are contacting Physical Plant, keep all documentation related to time lines and commitments.

Jonathan Hyman, Assistant Manager, Capital Revenue, Capital and General AccountingSets up the capital fundTracks expensesMonitors the progressWill contact SFO if project goes over budgetAny transfers from operating require approval from Joanne Dyer, University Budget Officer or Tom Hay, University Comptroller.Departments are responsible for any projects that go over budget.

Manitoba Health ReportingWhy:MB Health requirement Dean needs to know how you are spending the MB Health funds

How:Departments will run the Revenue and Expenditure Statement report in FAST for FUND 12101

We will require a separate report for each use of the MB Health Funding.IMGNPIncreased Enrolment Phase 1 and 2OtherSubmit your quarterly report to Nashon.Due dates are based on the 2009/2010 Monthly Cut-off schedule as set by Financial Services.July 15, Oct 15, Jan 15 and April 20

The University of Manitoba - Faculty of Medicine - Department of XXXXXXXXQuarterly Reporting As at June 30, 2009

April to JuneJuly to SeptOct to DecTotal Outstanding Jan to MarTotalsActualsActualsActualsActualsCommitmentsProjectedSalary ExpendituresAcademic Staff 100,000.00 100,000.00 - 200,000.00 200,000.00 - 400,000.00

Support Staff 50,000.00 50,000.00 - 100,000.00 100,000.00 - 200,000.00

Benefits & Levy 10,000.00 1,000.00 - 11,000.00 4,000.00 - 15,000.00

Total Salary Expenditures 160,000.00 151,000.00 - 311,000.00 304,000.00 - 615,000.00

Non-Salary Expenditures

Travel 10,000.00 5,000.00 - 15,000.00 - - 15,000.00 Printing and Duplicating 500.00 450.00 - 950.00 - - 950.00 Other Materials and Supplies 1,000.00 1,000.00 - 2,000.00 - - 2,000.00 Telecommunications 1,000.00 1,000.00 - 2,000.00 - - 2,000.00 Other Operational Expenses 1,000.00 1,000.00 - 2,000.00 - - 2,000.00 Externally Contracted Services 1,000.00 1,000.00 - 2,000.00 - - 2,000.00 Professional Fees 1,000.00 1,000.00 - 2,000.00 20,000.00 - 22,000.00 Capital Asset Acquisitions 1,000.00 - - 1,000.00 - - 1,000.00 Repairs and Maintenance 1,000.00 1,000.00 - 2,000.00 5,000.00 - 7,000.00

Total Non Salary Expenditures 17,500.00 11,450.00 - 28,950.00 25,000.00 - 53,950.00 - - Total Salary and Non Salary Expenditures 177,500.00 162,450.00 - 339,950.00 329,000.00 - 668,950.00

Method used by non profit organizations and the public sector

Accountability is measured rather than profitability

Main focus is to keep track of resources that are designated for specific purposes; to avoid mixing up resources that are intended for diverse purposes

Ensures management fulfills the stewardship responsibility for proper disposition of the resources

Fund Accounting

Fund Accounting ExampleEach fund further segregated for stewardship purposesResearch Fund Example

Why Fund Accounting?By recording and reporting resources in this manner, we are better able to:Identify and document if resources are being used properlyDetermine our condition on a fund by fund basisPlan, budget and later evaluate if we are accomplishing objectivesCommunicate financial information to all who need to know

Why Fund Accounting?Answers the following:Do we have money to spend?. Important information for faculties and units

Are funds being used appropriately? Financial Services needs to know

Have University guidelines been followed? Internal Audit needs to knowAre funds being used for the defined purpose given? Important information to granting agencies

Why Fund Accounting?Answers the following questions:Did the University provide the goods and or services expected within budget? Industry partners want to know

Has the University utilized public funds (tax dollars) in an appropriate manner?. Important information for federal and provincial governments

Why the Separation of Funds?vs.

Why the Separation of Funds?Better manage budgetsUnderstand how the Universitys operating activities are fundedKnow what needs to be cut in case of downsizing or a stop in funding from external sourcesFacilitate accountability to funding providers

Operating Fund HierarchyComprised of two revenue sourcesPrimary Sources COPSE & TuitionSecondary Sources (multiple)

Levels of the Fund Hierarchy represent the 2 main categories / revenue sourcesMain Levels are called Fund TypesUnrestricted Operating Funds (Fund Type 01)Internally Restricted Operating Funds (Fund Type 11)

Operating Fund Hierarchy

Operating Fund HierarchyVarious levels of the hierarchy are called levels or predecessors General FundsType 10

Unrestricted FundsType 01

Unrestricted Operating Fnds 110

Individual Allocation Funds1240

Start Up Research12400

Startup Example12xxxx

Fund TypePredecessor LevelPredecessor LevelPredecessor LevelPredecessor LevelData Entry Level

Unrestricted Operating Fund

Fund TypeFund PredecessorFund Predecessor DescriptionAllocation & AdministrationRevenue Source100111000General Operating AllocationRCGA, B&GCOPSEOperating Revenue (Overhead, Investment, Miscellaneous)11100TuitionRCGATuition Revenue12400Start Up ResearchUnits & FacultiesOperating, COPSE & Tuition Revenue12500OverheadB&GReserves (Central Administration Account 711105)12600Other Allocations & ProjectsB&GOperating, COPSE & Tuition Revenue12601Research MatchingB&GOperating revenue12650VP (Acad) ProjectsB&GCOPSE, Operating & Tuition Revenue12103Targeted COPSE ACCESS B&GCOPSE Access12107Targeted COPSE Projects B&GCOPSE12700Pooled & Individual Travel & ExpB&GReserves (Central Administration Account 797010)12900Operating Research GrantsVP (Research), B&GOperating, COPSE & Tuition Revenue12970Operating Research DevelopmentVP (Research), B&GOperating, COPSE & Tuition Revenue

Internally Restricted Operating Fund

Fund TypeFund PredecessorFund Predecessor DescriptionAllocation & AdministrationRevenue SourceRevenue Account Range101112100Targeted Other Federal ProjectsUnits & FacultiesFederal Contract Revenue567000-56700612101Targeted Provincial ProjectsUnits & FacultiesProvincial Grant RevenueProvincial Contract Revenue564001-564009568001-56801012102Targeted IndustryUnits & FacultiesOther Contracts569001-56901412105Targeted Misc Fnds Assoc's GrantsUnits & FacultiesOther Grants566001-56699812104Targeted Indirect Cost of Res (IMS - 613)VP (Research)Social Sciences and Humanities Research Council of Canada (SSHRC)N/A12200Income Funded ProjectsUnits & FacultiesExternal Sales & Service IncomeInternal Sales & Service Income520001-524905530001-53495112300Transfers from Trust & EndowmentTrust & EndowmentTransfers in from Trust82000212800Gifts for OperatingUnits & FacultiesGifts & ContributionsGifts to Operating540001-541000589001

Finding the Predecessor CodeUtilize the Operating Fund Hierarchy website available onlineAurora Finance Chart of Accounts webpage www.umanitoba.ca/computing/renewal/aurora/finance/aca/coa

Utilize FTMFUND in BannerEnter QueryType Fund code in Fund: fieldExecute QueryPredecessor Fund is listed

Deposits To Expense LinesThere should be NO deposits to expense lines at all. The reasoning behind this is that we dont want to get to the end of the year and have a credit balance sitting in an expense line account.

For deposits that would have been reimbursing an expense on a 110000 fund (or any unrestricted fund), this should get deposited to the specific departments cost recovery fund (we can set new ones up if each department doesnt have a cost recovery fund) and the expense would be transferred from the unrestricted fund to the cost recovery fund.

For restricted funds, again nothing is deposited to an expense account line. Rather it should be deposited to a revenue cost recovery account line and the expense will be sitting on the appropriate expense line which in theory nets out to zero.

Fund accounting is used by most non-profit organizations like governments, schools, universities and charities. Fund accounting provides a means to show how money is allocated because we track how we spend our money, not track to see how profitable we are.Non profit organizations by definition can only spend what they receive. In using fund accounting, our goal is to keep track of the various resources we receive and to ensure the resources we do receive are used appropriately.

*Each funding type is broken down so we can properly take care of the money received we need to ensure we are proper stewards of the $

So we have these large sources of funding coming into the University and then those sources are further broken down. This is only the tip of the iceberg on how many different sources of funding the University receives for research. We could only show you a very tiny example of how we segregate funds, but it provides you with an idea of how it works.*So, why do we have fund accounting? Lets go over some of the reasons.

***Family 1 pools all their money from their 2 jobs into 1 bank account were going to call it a fund from here on in. From that bank fund they pay for all expenses both necessary and extraneous. Now family 2 is different. They deposit their income into 2 separate bank funds. From 1 they pay for all the necessary expenses for their family and from the other, they pay for all the extras like the fancy golf club membership and the Starbucks addiction.

One day, unfortunately, there is a downfall in the economy and both families have 1 family member who loses his/her job. Both families now have to deal with a single income and make their budgeting decisions with the single income in mind. Which family do you think will be more easily be able to ascertain what expenses need to be cut? Family 2. It will be a lot more difficult for family 1 to figure out what exactly they need in order to survive and thrive. Family 2 will be able to more easily see if they can stop their monthly family dinners at Boston Pizza or not. Family 1 might have a little more difficulty figuring that out.*Its the same way for the University and why we separate our funding sources its somewhat like separate bank accountsfunds enable us to budget and see how things are progressing more easily.*Unrestricted Operating COPSE & Tuition Internally Restricted secondary sources*****Unrestricted Operating COPSE & Tuition Internally Restricted secondary sources*