Financial Reporting Training

Office of the Controller

Objective

1. Accounting Review 2. What is a Budget and General Budget Concepts 3. Budget Inquiries & Budget Status Report 4. Overview of some useful Queries 5. nVision Financial Reports:

•

Define nVision

•

Variance Analysis

•

Available Budget 6. Demo

Office of the Controller

What is Accounting?

Accounting is a systematic way to identify, measure and communicate the economic impact of events, such as activities that generate inflows and outflows.

Accounting is a self-balancing process which measures: 1. Financial Activity: REVENUES and EXPENSES for a period

Income = Revenues – Expenses AND

2. Financial Position: BALANCES on a cumulative basis at a certain date  Positive balances which will provide future benefits are ASSETS  Negative balances which represent future obligations are LIABILITIES Office of the Controller

What is Accounting?

Example of Economic Event:

FIU provides educational services to students. 1. The University has the right to collect fees from students (Revenues) but must also pay faculty to render the services (Expenses).

AND

2. The University collects the cash from the student and pays cash to the professor, resulting in a net positive cash (Asset) balance at the end of the period Office of the Controller

Why “fund” accounting

Activities are segregated by funding source

Each fund :

  is Restricted in its uses by statute is Allocated a

Budget

that cannot be overspent Currently, within each fund, activities are further segregated by Organizations and Departments that identify which unit/college is responsible for performing the activity and the specific nature of the activity (e.g. College of Business puts on the FIU Online Conference).

http://finance.fiu.edu/controller/Docs/FundRulesMatrix.xls

Office of the Controller

Which funds does FIU have?

      

E&G – Educational and General AUX – Auxiliary Enterprises C&G – Contracts and Grants Agencies FA /FinAid – Financial Aid/ Scholarships Student-Related Activities Concessions

Office of the Controller

Which Entities does FIU have ?

Entities affiliated to the University:



FCN01 — FIU01 AP Construction

           

FIU01 — Florida International University

FIU02 — FIU Foundation: administers donations for the purpose of the advancement of FIU. Considered a Non-for-profit entity, not a governmental entity.

FIU03 — Wolfsonian Inc.

FIU04 — FIU Research Foundation FIU05 — FIU Athletic Finance Corp FIU06 — FIU Health Care Network FIU07 — FD Enterprise Holdings I, LLC.

FIU08 — FD Enterprise Holdings II, LLC.

FIU09 — FD Enterprise Holdings III, LLC.

FIU10 — FD Enterprise Holdings IV, LLC.

FSR01 — Office of Sponsored Research FSR04 — FIU Research Foundation

Office of the Controller

Revenues = Money coming in

Operating Revenues

are generated from providing goods or services in the normal course of operations to customers.

Non-Operating Revenues

are for incidental activities, such as investment earnings. In fund accounting, revenues are recognized when measurable and available to spend, the earlier of:   When collected in cash using cash basis (e.g. conference registration fees collected now for an event to occur in the future)

OR

When earned using accrual method (e.g. student registers for classes now but tuition payment is not due to University until later) NOTE: Revenues which have not been collected are classified as receivables until they are collected in cash (e.g. the University has a receivable from a student until his/her student account is paid to the University).

Office of the Controller

Expenditures = Money being spent

Costs incurred in efforts to generate revenues, classified as:  Expenses if the payment provides immediate benefits (e.g. salaries, travel)  Capital if the payment provides long-term benefits (e.g. tangible assets with longer lives such as equipment).

NOTE: In accounting, all expenditures for goods and services are recorded in the fiscal year that they occur using accrual method At the operating fund level, expenditures are treated as expenses and those subject to capitalization are accounted for in another fund.

Expenses which have not been paid are classified as payable until they are paid in cash (e.g. invoices from vendors with certain number of days to pay).

Office of the Controller

Sources of Revenues and Expenses

Revenues:

 Student Financials (tuition, other student fees)  Cashiers (cash/credit card deposits)

Expenses

 Payroll (salaries and benefits actual and accruals)  Voucher (operating and capital expenses)  Commodity Card (operating expenses)  Interdepartmental charges with no approval required (phone, printing, overhead)  Interdepartmental charges with approval required (facilities maintenance) In both cases, re-classes of revenues and expenses from one department to another or from one account to another should be requested via an

Inter-Departmental Transfer Form.

Office of the Controller

Income and Financial Position

Remember the results of accounting?

1. Income measures net operations earned during the period

Income = Revenues –Expenses

2. Fund Balance is the net financial position at the end of the period. It represents what resources you have left to spend in the short-term:

Cash + Receivables –Payables = Fund Balance

Beginning Fund Balance + Income + Cash Coming In

– Cash Going Out

= Ending Fund Balance

Office of the Controller

Example

College creates a new program to begin 7/13/xxxx

Balance at 6/1/xxxx

Start-up funding from another department 26 Students register for classes $2000 each due 7/1 New Program Manager is paid for 2 periods 6/1 - 6/14 Purchase of laptop for new PM New Program Manager is paid for 2 periods 6/15 - 6/28 Payroll accrues 2 days in June 6/29 - 6/30

Balance at 6/30/xxxx

Student pays for classes Program Manager is paid for period 6/29- 7/12 Reverse accrual for 2 days in June, liability paid Buy food for students for July, payment not due until 8/5 PM paid for period 7/13 - 7/27 Faculty paid for period 7/13 - 7/27 Pay back start-up funding

Balance at 7/1/xxxx Assets Liabilities = Net Assets Cash

$ $ 10,000 +

Receivable

$ $ 52,000 $ (2,520) $ (1,200) $ (2,520)

Payable

$ -

$ 3,760

$ 52,000 $ (2,520)

$ 52,000

$ (52,000) $ (360)

$ (360)

$ 360 $ (4,000) $ (2,520) $ (3,880)

= Fund Balance

$ $ 10,000 $ 52,000 $ (2,520) $ (1,200) $ (2,520) $ (360)

$ 55,400

Cash In Revenue Expense Expense Expense Expense $ $ (2,520) $ 360 $ (4,000) $ (2,520) $ (3,880) Expense Expense Expense Expense Expense Expense $ (10,000) $ (10,000) Cash Out

$ 36,840 $ $ (4,000) $ 32,840

Office of the Controller

Example

(Continued) Beginning Fund Balance Revenues Expenses Salaries and Benefits Operating Expenses Other Capital Outlay Total Operating Expenses Income (Loss) Transfer In Transfer Out

June

$ $ 52,000 $ 5,400 $ $ 1,200 $ 6,600 $ 45,400 $ 10,000 $ 55,400 Tuition 26* $2000

July

$ 55,400 $ 8,560 $ 4,000 $ $ 12,560 $ 42,840 $2520 $2520 $ 360 $5400 $ 2520 $ 2520 $ 3880 $ (360) $ 8560 Food $4000 Laptop $1200 Departmental Loan Loan Payback $ (10,000) $ 32,840 Office of the Controller

Objective

1. Accounting Review 2. What is a Budget and General Budget Concepts 3. Budget Inquiries & Budget Status Report 4. Overview of some useful Queries 5. nVision Financial Reports:

•

Define nVision

•

Variance Analysis

•

Available Budget 6. Demo

Office of the Controller

What is a Budget ?



Management revenues and expenses for a given period of time

plan

for meeting probable



Serves as a

control mechanism

anticipated and actual revenues and expenditures to match

Office of the Controller

Budgetary Accounts Categories used at FIU

Category Revenue Permanent Salaries and Benefits Other Personal Services (OPS) Other Operating Expenses Operating Capital Outlay (Assets ≥ $5000) Cash Transfers In & Out Examples

• Sales of Goods or Services • Rental Income • Sponsorship Revenues • Faculty, Staff, Administrative Salaries • Benefits • Temporary Employees • Student and Graduate Assistants • Adjunct Faculty • Travel Expenses • Office Supplies • Repair and Maintenance • Personal Computers • Furniture • Repair and Maintenance • Transfers to Construction • Start-up Costs for other departments Office of the Controller

Budget Cycle for FIU

Preliminary Phase July – February

Prior Year

Implementation Phase February – April Review Phase April – May

Current Year

Monitoring Phase July –June

Budget Posted End of June Office of the Controller

Objective

1. Accounting Review 2. What is a Budget and General Budget Concepts 3. Budget Inquiries & Budget Status Report 4. Overview of some useful Queries 5. nVision Financial Reports:

•

Define nVision

•

Variance Analysis

•

Available Budget 6. Demo

Office of the Controller

Crystal Reports Inventory: Available Balance Budget Status Report

Ledger Group

CC_DEP (Department Child) CC_PRD (Department Parent)

Description

Expense budgets, expenses, encumbrances & pre encumbrances for Departments* or Activity Numbers

by detail Budget Account

Expense budgets, expenses, encumbrances & pre encumbrances for Departments* or Activity Numbers

by Parent Department

CC_REV CC_PG (Project Child) CC_PID CC_PRP (Project Parent) Budgeted, collected and recognized revenues Expense budgets, expenses, encumbrances & pre encumbrances for project by detail Budget Account Expense budgets, expenses, encumbrances & pre encumbrances for Departments* or Activity Numbers

by detail Faculty Allocation

Expense budgets, expenses, encumbrances & pre encumbrances for projects by Parent Project ID * Organizational Unit Office of the Controller

On-Line Inquiries - Reports Inventory: Available Balance Budget Overview Detail View Office of the Controller

On-Line Inquiries - Reports Inventory: Reconciliation Budget Overview: Drill to Activity Log Office of the Controller

Reports Inventory: Reconciliation Budget Overview: Drill to Activity Log Office of the Controller

On-Line Inquiries - Reports Inventory: Available Balance Budget Overview Parent View Office of the Controller

On-Line Inquiries - Reports Inventory: Available Balance Budget Overview Detail View Office of the Controller

Reports Inventory: Reconciliation Budget Overview: Drill to Activity Log Office of the Controller

SQR Reports Inventory: Available Balance Budget Status Report Office of the Controller

SQR Reports Inventory: Available Balance Budget Status Report Office of the Controller

Objective

1. Accounting Review 2. What is a Budget and General Budget Concepts 3. Budget Inquiries & Budget Status Report 4. Overview of some useful Queries 5. nVision Financial Reports:

•

Define nVision

•

Variance Analysis

•

Available Budget

Office of the Controller

Useful Queries

Query Name Description REQUISITION_WORKFLOW_ROUTING FIU_DEPT_APPROVERS FIU_GL_TRANDATA_BYDATE FIU_GL_DEPT_PROJ_LOOKUP List of employees involved in approving a requisition by Requisition ID Lookup Expense Managers 1 & 2 (Approvers) and Organizational department by Dept ID Detail transaction data for committed (enc & pre)/ paid expenses as well as budget by Dept ID Lookup Fund / PCS/ Class associated with a Dept ID or Org dept/Fund/Class/PCS/PCBU/Activity for a project Office of the Controller

Query Data

Office of the Controller

Objective

1. Accounting Review 2. What is a Budget and General Budget Concepts 3. Budget Inquiries & Budget Status Report 4. Overview of some useful Queries 5. nVision Financial Reports:

•

Define nVision

•

Variance Analysis

•

Available Budget 6. Demo

Office of the Controller

The nVision reporting tool

 Provides real-time financial reporting capability.

 Extracts requested financial data from PeopleSoft.

 Places it into an Excel spreadsheet where it can easily be reviewed and manipulated.

Template or style sheet Report Request • Keyed to Business Unit • Includes saved parameters • • Rules for generating reports for slices of the data The Scope feature allows you to create multiple instances of a report using a single report request.

Layout

Scope Office of the Controller

Reporting nVision – Elements

Microsoft Excel

 Microsoft Excel is the backbone of nVision reporting. nVision facilitates the retrieval of information from PeopleSoft databases into a Microsoft Excel spreadsheet.

The Layout of the Report

 The Layout of the Report is a Matrix or Tabular Excel spreadsheet.

The Ledger Tables

  Layouts retrieve data from a ledger. This could be Actual, Budget or Forecast Ledgers. The ledger tables have five major data components:    Business Unit Ledger Chartfields (Account, Department and Project ID, Program, Fund, Site or Class. Additionally for Projects PC Business Unit and Activity) Period and Year   Net Posted Amount Actual transactions and Budget Transactions are stored on two separate tables.  Actuals data is on the LEDGER table  Budget data is on the LEDGER_KK table Office of the Controller

Reporting nVision – Elements Continued

Time Spans

 Time Spans control the number of data periods extracted from the ledger table and summarized.

Trees

 Trees are used to create hierarchical structures that visually represent a set of summarization rules for a particular field. The summarization rules depicted in a tree apply to the detail values of a particular field – departments, accounts, funds, vendors, customers or other values the University defines.

Office of the Controller

Reporting nVision – Variables

Report Variables

 Provide information about the current nVision report such as the Business Unit, Report ID/name, Title, Layout Name, Operator ID, etc.

Date and Time Variables

 Provide information about the Date of the Report, the Tree, the Fiscal Year Accounting Period, etc.

Scope Variables

 Provide information related to the scope definition used in the nVision report such as the Scope Field Value or description (i.e., department id or name) Office of the Controller

Reporting nVision – Time Spans

Time Spans

 The Time Span controls the number of data periods extracted from the ledger tables and summarized.

 Typical Time spans provided with PeopleSoft General Ledger include:  PER – Period – Retrieves only activity for the period selected (1=July, 2=Aug, etc.)  YTD – Year to Date – Includes year-to-date amount for items selected.

  BAL – Balance – Retrieves life-to-date amounts (balance forward amounts) for balance sheet accounts.

Time spans are often expressed relative to current period, so that they automatically adapt the content of a report to the “As of Reporting Date” specified when the report is executed. Office of the Controller

Reporting nVision – Scope

Scope

 A Scope can be on one Chartfield and one value as well as many Chartfields and any values   A Scope can be built on single values or tree nodes.

This is a single value scope: Office of the Controller



Scope

Reporting nVision – Scope

This Scope includes Department and Fund Trees: • This Scope can be copied to another and change the fund node to: OTHER_UNRESTRIC_FUND Office of the Controller

Users Aggregate level Report

CFO / BOT OFP EABM ABM Fund

VA Report

Fund Exec Area Fund College/Unit E&G and Non E&G:

AS report*

Non Athletics:

AS report

Athletics:

AI Report

DeptID E&G :

DI report

Non E&G:

XA report

*A modified version of the AS showing subtotals per EA and College is being tested Office of the Controller

Type of Report

nVision Financial Reports

Variance (Budget vs. Actual) Reports Description of the Report Name

Detail Transaction Reports Detail transaction data for committed (enc & pre)/ paid expenses as well as budget by Dept ID

DT

Summary Reports Detail variance by account with a subtotal by account rollups ( S&B, OCO,OPS, OOE) for a single Dept ID Detail variance by account with a subtotal by account rollups ( S&B, OCO,OPS, OOE) for a single E&G Dept ID Detail Inflow (revenue, fund balance & transfers in) and Outflow (Expenses and transfers out) variance with subtotals account and account rollups Detail Inflow (revenue, fund balance & transfers in) and Outflow (Expenses and transfers out) variance with subtotals account and account rollups for an Athletics dept

DI XA AI

Office of the Controller

Type of Report

Executive Summary nVision Financial Reports

Variance (Budget vs. Actual) Reports Description of the Report

Actual and budget information for Salaries & Benefits for a range of Dept ID with a subtotal by Dept ID and funding source Actual and budget information for Other Capital Outlay for a range of Dept ID with a subtotal by Dept ID and funding source Actual and budget information for Other Personnel Services for a range of Dept ID with a subtotal by Dept ID and funding source Actual and budget information for Other Operating Expenses for a range of Dept ID with a subtotal by Dept ID and funding source

Name AS*

Actual and budget information for all expenses for a range of Dept ID with a subtotal by Dept ID and funding source Actual and budget information for revenues for a range of Dept ID with a subtotal by Dept ID and funding source *Note: The revenue section is collapsed Office of the Controller

Reports Inventory: Variance Analysis The VA Report The Columns come from Ledgers and use Time Spans The Rows come from Chartfields Office of the Controller

Reports Inventory: Variance Analysis The AS report

Perm. Salaries OPS

Variance Categories:

OCO OOE Total Expenses Revenue

Office of the Controller

Reports Inventory: Variance Analysis The XA report Office of the Controller

Reports Inventory: Variance Analysis The DI report Office of the Controller

Reports Inventory: Available Balance

Audience Aggregate level Report

CFO OFP EABM Fund Fund Exec Area Fund College/Unit

DS Report

E&G and Non E&G:

DS Report

E&G and Non E&G:

DS Report

ABM DeptID

Budget Overview Budget Status Report

Office of the Controller

Reports Inventory: Available Balance DS Report Office of the Controller

Reports Inventory: Available Balance DS Report Budget Reconciliation Office of the Controller

Reports Inventory: Available Balance ES Report Office of the Controller

nVision Financial Reports

Available Budget Detail Budget status Report Available Balance detail by Budget account DI Budget Status*

Salaries Executive Summary Salaries & Benefits Available Balance

ES ES

OCO Executive Summary Other Capital Outlay Available Balance

EC EC

OPS Executive summary OOE Executive Summary Other Personnel Services Available Balance

EO

Other Operating Expenses Available Balance

EE EO EE

Executive Summary Exec Sum by Dept

DS DS

*Note: The Budget status report is NOT an nVision report. A tutorial is available online (UPK) on how to run it at http://panthersoft.fiu.edu/financials/onlinetraining.htm

Office of the Controller

Objective

1. Accounting Review 2. What is a Budget and General Budget Concepts 3. Budget Inquiries & Budget Status Report 4. Overview of some useful Queries 5. nVision Financial Reports:

•

Define nVision

•

Variance Analysis

•

Available Budget 6. Demo

Office of the Controller

Reports Inventory: The DT report Using nVision Office of the Controller

Reports Inventory: The DT report Office of the Controller

Reports Inventory: The DT report You can choose either a Department Area or Activity Number for this report. Whichever you choose, your report will reflect all selections for the report.

Office of the Controller

Reports Inventory: The DT report Office of the Controller

Reports Inventory: The DT report Be sure to “

ENABLE

” the Macros for you to adjust and retrieve the item details from PantherSoft.

Office of the Controller

Reports Inventory: The DT report Office of the Controller

Questions ?