Best Practices - Vice President for Finance and Administration
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Transcript Best Practices - Vice President for Finance and Administration
Best Practices
Boise State University Budget Office
Company
LOGO
Goals for Training
1. Understand Basic Budget Building
2. How to Monitor OE, Travel &
Capital Budgets
3. How to Monitor Payroll Budgets
4. Understand End of Year Processes
For Profit vs. Government
For Profit
Government
Revenue –
Expenses = Net
Income
Resources Received
= Resources Used
Maximize Profit
Efficient & Effective
Use of Resources
Boise State University
Financial Reporting
Fiscal
Year
FY 2008
July 1, 2007
To
June 30, 2008
Program
Type
Department
Account
Associated with
Department
10 Digit
Alpha-Numeric
6 Digit
Numeric
General
description of
activity
909A100001
Asset
Liability
Revenue
Expense
Fund Balance
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
Department
Anatomy of the Department ID
Biology
Format: 3-1-6
Alpha Numeric
006 A 100001
Department
identifier
Fund Source
A = Appropriated
L = Local
G = Grant
1 = Main Campus
2 = BSU West
Section/Unit Identifier
Accounts
6 Digit Numeric
“Buckets”
3***** = Revenue
4***** = Personnel Costs
5***** = OE & Travel (53****)
6***** = Capital
9***** = 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
Departments
Deans / VP’s /
Provost / President
State Board of
Education
Governor /
Legislature
Lending institutions
Auditors
Uses of Financial Statements
Track progress towards goals
Compare Actual with Plan/Budget
Communicate
Modify behavior
Assess financial condition
Assist in evaluating efficiency and effectiveness
Why do we have Budgets?
Control spending
Monitor progress & modify spending
Communicate
Required
Kinds of Budgets
Appropriated
General Fund (taxes)
$80 million Budget
Tuition
$47 million Budget
Local & Auxiliary
Other Student Fees
User Fees
F&A
Transfers from
Foundation
$26 million Local
Budget
$61 million Auxiliary
Budget
***A****** Departments
***L****** Departments
Appropriated Budget Process
BSU Budget Process
MAR: JFAC &
SBOE sets Budget
MAR: Local
Budget
Templates
MAY: BSU
sets
department
budgets
JULY: Budget
effective
DEC: Annual
Planning
Documents
AUG: Submit
Budget
Request to SBOE
Local Budgets
Budget = a plan or estimate
Most common meaning for business
Budget is not a guarantee
No budget transfers
Annual budget preparation: March – May
Separate budget book
Look 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 activity
Ensure strategic plans are met
Make better planning decisions
Gives you something to compare current activity
against
How does a Local Budget work with
the Fund Balance?
Fund Balance
10,000
Budget
Salary
OE
5,000
5,000
How does a Local Budget work with
the Fund Balance?
Fund Balance
10,000
(3,000)
Budget
Salary
OE
5,000
5,000
(3,000)
How does a Local Budget work with
the Fund Balance?
Fund Balance
10,000
(3,000)
7,000
Budget
Salary
OE
5,000
5,000
(3,000)
2,000
5,000
Auxiliary Budgets
Auxiliary Enterprises are essentially selfsupporting per SBOE policy
Annual budget preparation: March - April
Information 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 = $61,315,648
FY08 Expense = $61,260,842
FY08 Total Employee FTE = 357.85
Auxiliary Budget Revenue
AUXILIARY REVENUE BY CATEGORY
OTHER REVENUE
3.4%
ADVERTISING & PROMOTIONS
2.6%
APPROPRIATED
3.9%
FACILITY RENTAL
2.9%
STUDENT FEES
16.6%
PRIVATE GIFTS
6.6%
SALES & SERVICE
49.2%
TICKET SALES & EVENTS
14.8%
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
Distribution
Lists $$ support from State and from Students
Lists 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 Transfers
Clearing 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 PCard. Cost is about
$100.
Folders
Memo:
Acct: 557000 Desktop Software
I’m going to purchase MS
Project with my P-Card.
Cost is about $100.
Folders
Match Memos to P-Card
“Statement”
Memo:
P-Card “Statement”:
$107.59
Office Max
Code to 557000 Desktop Software
Folders
Place in Pending P-Card Folder
Memo:
P-Card “Statement”:
$107.59
Office Max
Code to 557000 Desktop Software
Folders
Place in Pending P-Card Folder
Memo & P-Card
“Statement”
Folders
Match P-Card Statement to
PeopleSoft
Department Detail Report:
500000 OE
557000 Desktop Software
Memo & P-Card
“Statement”
P-Card Wargo 107.59
Folders
File in Posted Expenses Folder
Department Detail Report:
500000 OE
557000 Desktop Software
Memo & P-Card
Statement
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
Invoice Copy
$345.67 Office Solutions
Department Detail Report:
?
Call AP (if the source document
is AP) or Accounting to get more
information.
Reconciliation Workbook
Advantage of folders:
Tracking expenses from your office to PeopleSoft
Example
Advantage 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 BPARs
Academic 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 & Professional
Classified
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 Transfers
STARS 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