Transcript Managing a Budget - Florida State University

Managing a Budget
Conducted by the Budget Office
Corbin deNagy – Budget Analyst
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GL: Where accounting transactions are recorded,
contains actual (non-budgetary) financial information
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GL Accounts: Classify balances on the GL
Examples:
◦ 112000 – Cash in Bank
◦ 600501 – Investment Earnings-Interest
◦ 741101 – Supplies Office
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GL Journal Entries: Record accounting transactions,
must be in balance (Debits = Credits)
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GL Account
Type
OMNI
Accounts
GL Account
Examples
Increase
Decrease
Assets
1XXXXX
2XXXXX
Cash, Receivables
Debit
Credit
Liabilities
3XXXXX
4XXXXX
Accounts Payable
Credit
Debit
Revenues
6XXXXX
Interest Income
Credit
Debit
Expenses
7XXXXX
Salaries, Office Supplies
Debit
Credit
Examples:
 When a voucher is keyed
◦ Debit Expense $500
◦ Credit Payable ($500)
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When the payment is made
◦ Debit Payable $500
◦ Credit Cash ($500)
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Budgetary Accounts: Classify balances on KK
Examples:
◦ 690500 – Budget Interest Earnings
◦ 710000 – Budget Salary Wages
◦ 740000 – Budget Expense
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Budget Journals & Budget Transfers: Record
transactions to KK budget ledgers
◦ Journals are used to increase or reduce budget
◦ Transfers are used to transfer budget
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KK Ledger Groups & KK Ledgers: Where
budgetary transactions are recorded
Examples:
KK Ledger Group
KK Ledger
CC_BUD – Expense Budget
CC_EXP_GRP
For non-project expense budgets
CC_ENC – Encumbrances
CC_EXP – Expense
CC_REV_BUD – Revenue Budget
CC_REV_GRP
For non-project revenue budgets
CC_REV_REC – Revenue Recognized
CC_REV_COL – Revenue Collected
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Transaction
GL
KK
GL Journal Entries
Everything
Lines including cash,
receivables, payables,
revenues, expenses, etc.
all post to the GL.
Some things
Only lines including nonproperty revenues and
non-property expenses
post to KK.
Budget Journals &
Budget Transfers
Nothing
GL Journal Entries are
the only financial
transactions that post to
the GL.
Everything
Lines updating budget
balances post to the
appropriate KK budget
ledgers.
Other – Purchase
Orders, Travel
Authorizations, etc.
Nothing
GL Journal Entries are
the only financial
transactions that post to
the GL.
Some things
Encumbrances are
established when
purchase orders or travel
authorizations are issued.
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In OMNI:
◦ Departments roll up to Areas
◦ Areas roll up to Schools/Colleges*
◦ Schools/Colleges roll up to Divisions
Examples:
Department
Area
School/College
Division
008012
Central
Women's Athletics
Athletics
Women's Track
Administration
042002
Finance &
Utilities
AVP Facilities
Utilities Electricity
Administration
087001
College of Arts &
Meteorology
Academic Affairs
FL Climate Center
Sciences
187016
College of Music College of Music Academic Affairs
Jazz Education
*Note: OMNI Schools/Colleges are not always academic!
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Budget Entity is a classification used to define
resources. In short, it indicates funding sources.
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Funding sources may be:
◦ Appropriated – Set aside by the State Legislature for
specific purposes
◦ Non-Appropriated
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At FSU, budget entities correspond to OMNI
Fund numbers.
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OMNI funds 1XX (non-College of Medicine) and
2XX (College of Medicine).
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Appropriated by the State Legislature.
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Includes General Revenue (primarily Florida’s
sales tax), Student Tuition and Fees, and Lottery.
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Spending must result in a direct, specific benefit to
the University.
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OMNI funds 121 and 126
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Established in 2008-09.
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Funds are allocated by the Provost.
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F.S. 1009.24, “the revenues from the tuition
differential shall be expended for purposes of
undergraduate education.”
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OMNI funds 3XX
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Primarily sales to University departments, students, faculty,
staff, and others. Student Housing, food services, bookstores,
student health centers, transportation and parking services,
facilities management and computer support are among the
major services provided.
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Spending from an auxiliary should be consistent with its
mission/purpose.
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Note: Surplus revenues from Market Rate Tuition auxiliaries
(OMNI fund 325) may be used in support of non-auxiliary
activities, but must follow E&G/auxiliary spending guidelines.
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OMNI funds 520-570
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From contracts and grants related to sponsored
research.
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Spending must comply with all university and agency
requirements, and must follow the terms of the
contract/grant.
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Budget Office policies and procedures cover
everything except sponsored research activities under
the purview of SRAS.
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OMNI fund 610
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Primarily the Activity and Service (A&S) fee,
along with some self-generated revenues from the
FSU Flying High Circus, the Ogelsby Union, etc.
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A&S fee revenues are allocated by SGA and
should be spent to benefit the student body in
general.
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OMNI fund 615
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From the technology fee paid by students.
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Funding is distributed in three ways: (1) one-third
to the colleges based on an allocation model that
uses each college’s most recent total student credit
hours; (2) one-third to the central IT organizations
based on a similar model; (3) most or all of the
final one-third to faculty or staff projects that
enhance instructional technology.
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OMNI fund 620
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Commissions from vending machines (over 250
on campus!).
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Funds are allocated from the President to the VPs
and then to the colleges/departments.
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Identifying DDDHC, Budget Manager, Authorized Signer(s)
◦ To look up single departments:
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Financials
Main Menu
Set Up Financials/Supply Chain
Common Definitions
Design Chartfields
Define Values
Chartfield Values
Add to Favorites!
Department
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Financials
Main Menu
Reporting Tools
Query
Query Viewer
FSU_DPT_AUTHORIZED_SIGNERS
◦ To look up multiple departments:
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Authorized Signers – those designated to approve
transactions.
DDDHC – typically delegates budgetary
responsibility, but holds ultimate responsibility for
the fiscal soundness of a department.
Designations can be updated using the Update
Existing Department ID Form (located on the
Budget Office website).
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Serves as the official contact for the department on
financial matters.
Ensures that departmental ledgers are reconciled
to supporting documents.
Identifies and corrects invalid department-fund
combinations.
For Non-E&G, enter operating budgets.
Completes and submits required documentation.
Maintains departmental available and cash
balances.
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Budget Office policies and procedures cover
everything except sponsored research activities under
the purview of SRAS.
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Our office focuses on DDDHCs, Budget Managers and
Authorized Signers, SRAS focuses on project
personnel.
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Updates may need to be made through SRS along
with Chartfield Values.
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http://www.research.fsu.edu/contractsgrants/forms.html
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Budget Errors prevent financial transactions from posting.
Budget Error
Budget is Closed
To Correct
• Sponsored Research Only: Contact SRAS
• All Others: Contact the Budget Office
Exceeds Budget Tolerance
• Follow procedures to increase E&G Available
(The transaction did not pass
Balance
E&G “Budget Checking”)
No Budget Exists
• E&G Only: If possible, perform a Budget
(The department-fundTransfer to add budget to the combination
account combination has not • Anyone: Contact the Budget Office to request a
been activated in OMNI)
Zero Budget Journal
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Budget Entities are constrained by either:
◦ Budget
◦ Cash
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When a Budget Entity is constrained by budget,
“Budget Checking” in OMNI will prevent transaction
from being processed without sufficient funds.
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When a Budget Entity is constrained by cash,
departments may spend into a cash deficit, as there is
no “Cash Checking” in OMNI.
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Which Budget Entities are constrained by budget?
◦ All E&G funds (1XX-2XX)
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Which Budget Entities are constrained by cash?
◦ All Non-E&G funds (3XX, 610, 615, etc.)
Why are E&G funds constrained by budget and not cash?
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What does this mean for the Budget Manager?
◦ When spending is constrained by budget, departments
should monitor Available Balance.
◦ When spending is constrained by cash, departments
should monitor Departmental Cash Balance
Before we delve into this more, let’s recap.
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Budget Entity
OMNI
Fund(s)
State
Appropriated
Spending
Constraint
Education & General (E&G)
1XX
Yes
Budget
E&G-College of Medicine
2XX
Yes
Budget
Auxiliary
3XX
No
Cash
Student Activities
610
No
Cash
Technology Fee Trust Fund
615
No
Cash
Vending
620
No
Cash
Athletics
630
No
Cash
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Available Balance = Budget-EncumbrancesExpenses
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There are a few ways to check available balance:
◦ Budgets Overview
◦ Budget Detail
◦ OBI Available Balance
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The first two ways are “live” while OBI uses data
as of close of business the night before.
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OMNI Financials
Main Menu
Commitment Control
Review Budget Activities
Budgets Overview
Add a New Value tab
Enter BUD OVER
Add
Ledger Group: CC_EXP_GRP
Save
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Let’s try an example:
◦ Enter 004% in the Dept field
◦ Click Search
What information do we have?
What information can we ignore?
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OMNI Financials
Main Menu
Commitment Control
Review Budget Activities
Budget Details
Ledger Group: CC_EXP_GRP
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Let’s try an example:
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Ledger Group: CC_EXP_GRP
Enter 004% in the Department field
Budget Period: 2013
Click Search
What information do we have?
What information can we ignore?
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myFSU BI
Dashboards
Financial Reports – Available Balance
Notice the date and time beneath the headers – if you are
providing data from OBI, be sure to note that the data does not
include the current day’s transactions
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Let’s try an example:
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Click the drop-down arrow for Department
Click Search…
Enter 004 in the Name field
Click Search
Click the double arrows to “Move All”
Click OK
Click Apply
Unlike the other options, OBI Available Balance will not show
carryforward funds next to current-year funds. To view carryforward
funds, change the Report Categories to
E & G – FSU – CARRY FORWARD
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You discover that one of your departments has a
negative available balance; what do you do? You
could do one or both of the following:
◦ Transfer budget between departments and/or accounts
 Budget cannot be transferred between different E&G funds
 Salary conversions must be processed by the Budget Office
◦ Transfer expenses between departments and/or funds
 Maintain reporting integrity (e.g., E&G expenses that belong
on E&G should not be transferred to an Auxiliary)
 Payroll transfers must be processed by Payroll Accounting
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The Budget Manager designation does not give an
employee the proper security to process budget
transfers in OMNI.
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Any user (Budget Manager or not) may request
the Budget Transfer Role via the eORR link.
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The FSU Budget Transfer Role Request form
(available on the Budget Office website) must also
be submitted to the Budget Office.
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In general, budget may be transferred:
◦ Within a department, between budgetary accounts
(046000-110-720000 to 046000-110-740000)
◦ Between departments, within a budgetary account
(046000-110-720000 to 001000-110-720000)
◦ Between departments and budgetary accounts
(046000-110-720000 to 001000-110-740000)
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Budget cannot be transferred between funds
(i.e.,110 to 140). Why?
All E&G budget transfers involving Salary (710000)
must be coordinated through the Budget Office.
Visit the Budget Office website for detailed job aids.
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Let’s try an example:
◦ What could we do to correct this negative available
balance?
Department
Fund
Account
Budget
Encumbrances
Expenses
Available
Balance
046000
110
740000
$20,000
$5,000
$17,000
$(2,000)
046000
110
710000
$5,000
$1,000
$1,000
$3,000
046000
140
700001
$15,000
$3,000
$6,000
$6,000
046001
110
740000
$10,000
$2,000
$2,000
$6,000
046002
320
740000
$30,000
$20,000
$2,000
$8,000
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How often should a Budget Manager monitor
their available balance?
Answer: At least weekly. The Budget Office runs queries at
the end of every month and emails Budget Managers
whose departments have an aggregate (non-Salary
Budgetary Accounts) negative available balance.
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OMNI Financials
Main Menu
Reporting Tools
Query
Query Viewer
Query Name: FSU_DPT_CASH_BALANCE
Click Favorite under “Add to Favorites”
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Let’s try an example:
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Click HTML under “Run to HTML”
Business Unit: FSU01
Non E-G Fund w wildcard %: 330
Dept ID w/ wildcard %: 046001
As of Jrnl Date: t
Click View Results
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You discover that one of your departments has a
negative cash balance; what do you do? You could do
one or both of the following:
◦ Transfer cash between departments and/or funds
 E&G cash cannot be transferred to Non-E&G, and Vending
cash cannot be transferred to a Non-Vending fund
 Maintain reporting integrity (e.g., cash that truly belongs on
Student Activities should not be transferred to cover an
Auxiliary cash deficit)
◦ Transfer expenses between departments and/or funds
 Maintain reporting integrity (e.g., Auxiliary expenses that
belong on an Auxiliary should not be transferred to E&G)
 Payroll transfers must be processed by Payroll Accounting
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How often should a Budget Manager monitor
their cash balance?
Answer: Like available balance, at least weekly. The
Budget Office runs queries at the end of every month and
emails Budget Managers whose departments have a cash
deficit.
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What funds do you get to keep?
Type of Budget Entity
E&G
Non-E&G
Funds
Funds Kept by
Department
OPS
Expense
OCO
Special Categories
Carryforward
June 30th Encumbered
Balance + Available
Balance
Salary
$0-Excess funds are
swept to the University
Central Reserve
Cash
June 30th Fund Balance
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E&G Example
At June 30th, your balances are:
Budgetary
Account
Budget
Encumbrances
Expense
Available
Balance
Salary
$300,000
$5,000
$283,000
$12,000
Expense
$40,000
$2,000
$16,000
$22,000
Carryforward $10,000
$1,000
$8,000
$1,000
How much would your July 1st carryforward
budget be?
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Rate: the annualized pay attached to a position
(doesn’t include fringe benefits)
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Salary: Rate plus fringe benefits
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Example:
◦ An employee’s Rate, or annual pay, is $30,000.
◦ The University pays an additional $8,400 for the
employee’s health insurance, retirement, etc.
◦ The Salary budget for the employee is $38,400.
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For the Operating Budget, the Budget Office
calculates E&G Salary budgets by department,
then books the budgets in OMNI.
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The Budget Office then manages E&G Salary
throughout the fiscal year using a process called
Rate Allocation, keeping control totals of Rate.
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For this reason, any Rate changes must go
through the Budget Office.
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Unlike Rate, Salary budget is not generally
adjusted during the fiscal year.
Exception: In some cases, unused budget for Faculty (excluding
benefits) may be converted to OPS, Expense, or OCO. These
conversions must be processed by the Budget Office.
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Because the Budget Office manages E&G Salary,
Budget Managers do not need to monitor E&G
Salary budget or available balance. They do need
to ensure that employees are paid correct amounts
on the proper department-fund combinations.
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For the Operating Budget, the Budget Office
generates Non-E&G Position Reports to show
estimated Salary expenditures by department.
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These reports are sent to Budget Managers, and
the Salary Estimates are displayed on the
Non-E&G Budget Request screen in OMNI.
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Budget Managers may use these estimates to
develop their Salary budget requests.
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Once Operating Budget requests are approved
and booked in OMNI, Non-E&G budgets are not
generally adjusted.
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Like E&G, Non-E&G Budget Managers do not
need to monitor Salary budget or available
balance. They should, however:
◦ Monitor their Departmental Cash Balance
◦ Ensure that employees are paid correct amounts on the
proper department-fund combinations
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1.
2.
3.
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1.
2.
For E&G, three reports are periodically created
and distributed to OMNI Schools/Colleges:
Allocation Reports (separate Faculty & Support Staff)
Position Reports (separate Faculty & Support Staff)
Support Staff Rate Pool Reconciliations (which
reconcile Allocation Reports to Position Reports)
Non-E&G Position Reports are created and
distributed to Budget Managers:
Around June of each year for use in developing budgets
As requested
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Visit the Budget Office website for more on:
◦ Rate & Salary
◦ Fringe Benefits
◦ In-Unit & Out-of-Unit Classifications
http://www.budget.fsu.edu/Positions-Rate
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Can we have more than one Budget Manager?
◦ Answer: OMNI only allows for one person to be listed.
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Our department is starting a new auxiliary; can we
use our main department ID (which is an E&G
department)?
◦ Answer: The purpose and corresponding coding of the
department ID determines what Budget Entity can be used.
Typically, a department ID can only be associated with one
Budget Entity. For this question, the auxiliary would need to
have it’s own department ID.
◦ Exceptions
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Can we delete or inactivate an unused department ID?
◦ Answer: At this time, we are unable to inactivate department
IDs. We cannot delete department IDs because we must retain
historical records.
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If we can’t delete or inactivate an unused department,
why do we need to maintain department designations
(DDDHC, Budget Manager)?
◦ Answer: Designations must be maintained in case erroneous
transactions hit the department. If this happens, we will know
who to contact (remember – the Budget Manager is the official
contact for the department).
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Budget Office: http://www.budget.fsu.edu/
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Important Announcements
Budget Office Staff
Financial Reports & Data
Auxiliary Information and Forms
Positions & Rate Information and Forms
FSU Department ID Form
Budget Manager Responsibilities
Job Aids
Frequently Asked Questions and a Glossary of Terms
Controller’s Office: http://control.vpfa.fsu.edu/
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Enterprise Resource Planning (ERP):
http://www.erp.fsu.edu/
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Human Resources: http://hr.fsu.edu/
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OMNI Training: http://omni.training.fsu.edu/
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Purchasing Services: http://purchasing.fsu.edu/
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Sponsored Research Accounting Services (SRAS):
http://www.research.fsu.edu/sras/
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Budget Office Courses
◦ BTBUD1 – Managing a Budget
◦ BTBUD2 – Introduction to Auxiliaries
◦ BTBUD3 – Auxiliary Rate Calculation
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Visit http://www.hr.fsu.edu/train/ for:
◦ Course Schedules
◦ Registration Instructions
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Thank you for attending!
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Questions or comments?
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Please complete a course evaluation!
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Corbin deNagy
645-0050
[email protected]
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