Transcript COLLEGE OF ARTS AND SCIENCES FISCAL AFFAIRS ADMINISTRATOR

COLLEGE OF ARTS AND SCIENCES
FISCAL AFFAIRS ADMINISTRATOR
BACK TO BASICS TRAINING
April 20, 2006
AGENDA
• 12:00 – 12:30 Lunch & Networking
• 12:30 – 2:00 Introduction & University –Wide
Information & Policies
• 2:00 – 2:10
Break
• 2:10 – 3:00
Arts & Sciences Policies; College
Reference Information & Budgeting Practices
• 3:00 – 4:00
College Policies & Procedures –
Expenditure Control, Auditing and Reporting
• 4:00 – 4:30
Q&A, Assessment, Topics for
Future Training
Why You?
Provide a frame of Reference for position
Clarification of responsibilities as senior
department or program administrator
and/or supervisor vis-à-vis
– Detailed knowledge
– Training for faculty & staff
– Accountability
What does Fiscal Affairs
Administration Include?
Budgeting
Planning
Expenditure Control
Auditing
Reporting
Planning
As the department or program manager
and/or primary fiscal administrator you are
in a unique position to provide critical
information to your chair, faculty, or
director in support of planning initiatives.
Information you will need to acquire
• Institutional, College and Department or
Program Mission
• Operational Priorities
• University & Departmental Trends
• Expenditure Levels and Patterns
• Unmet Needs
Knowledge you provide to others
• Resource Availability
• Limitations or Restrictions on Resources
(multiple accounts and purposes)
• How funds are currently being used
• Projection of future needs & costs
• Fiscal impact of anticipated or proposed
changes
University Reference Information
• Business & Finance Division Organization
Chart
• UM Website Policy Manuals
• Budget Account Types
• Object Code List
• Signatory Authority Policy
University Policies are now WebBased
Financial Accounting & Reporting
(Controller’s Office)
Payroll (Treasurer’s Office)
Non-Payroll (Treasurer’s Office)
– Travel
– Petty Cash
University Policies (cont’d.)
General Business Policies
– Contracts
– Use of Facilities
Purchasing
– Ariba, UM e-Net
Risk Management
Facilities Administration
University Policies (cont’d.)
[email protected]
Research Administration (Provost’s Office)
• Pre-award Assistance – UMPARA website
• Proposal Processing Policies
Sponsored Programs (Controller’s Office)
• Expenditure Compliance
• Post-Award Administration
University Advancement Division
Budgeting
A budget should reflect the planning and
priorities of the department, program or
initiative it is intended to support. It
should clearly and concisely outline the
funding and costs related to the endeavor.
As a fiscal administrator, you are
responsible for translating programmatic
information into University of Miami
Budget Format
College Information
How are U-Budgets Funded
What is a U-Budget
• Permanent vs. OTO Funding
Salary Line item Funding Practices
• Vacant Lines
• New Hires (faculty, non-faculty)
• Annual Merit Process
• Centrally Funded Recurring Items – TA’s,
PT/OT
College Information
How are U-Budgets Funded
(cont’d.)
Operational Funds (B/C)
• Permanent Lump Sum Allocation from
Dean, reallocated by Dept (fixed vs.
discretionary)
• Permanent Annual Adjustments
• Special Request (Perm)
• International Travel Central Fund
What expenses are covered by the
departmental or program budget?
Most commonly:
• Undergraduate Student Assistants or CWSP students
• Phone service (equipment and line costs)
• Long distance & voice mail costs
• Clerical and technical supplies
• Faculty professional travel
• Postage, FEDEX,
• Copy machine rental, per copy charges/supplies (new contract)
• Student lab/studio consumables
• Equipment maintenance and repair
• Other teaching, research, service or recruitment expenses at
discretion of chair
• Special Events
• Research-related F&A expenses (more later)
What’s not in your B/C budget?
•
•
•
•
Major capital equipment costs
Port/Wireless Fees
Periodic replacement of computers
New Faculty Recruitment & Start-up
Funds
• Student Scholarship or Award funds
What are “F & A” Accounts?
“Facilities and Administration” expenditure
accounts were created in several
departments to track expenses directly
related to funded sponsored program
activities that cannot be charged to grants.
Unallowable costs may include clerical
supplies, postage, staff support, etc.
How are F&A Accounts Funded?
• Provost Allocations – Some departments have
received allocations based on documented
needs associated with specific (new) grants
• Department reallocation – When no central
funding has been provided, departments must
cover expenses in these accounts from available
departmental sources.
If no funding, why have an F& A
Account?
• Allows department, college & university to
track such expenses and include them in
overhead cost calculations.
• Provides documentation for request to
supplemental funding.
• Summer 2006 Survey.
How are revenue-related accounts
managed?
• Purpose: support of programmatic activities (J.H.
Ring Theatre, PSY Clinic) or Service (recharge)
Center activities.
• Revenue estimate & expenditure budget
prepared by department or program as part of
budget process.
• Must be self-sustaining, i.e., expenditures limited
to actual revenue/funding available.
• Fees for Service Centers must have prior
approval of Dean’s Office and Controller’s
Office.
What are Designated & Restricted
Accounts
• Designated Accounts – Funds in these
accounts may be spent at the discretion of
the authorized signor as long as consistent
with the general intent of the account.
• Restricted Accounts – Funds in these
accounts must be spent only for the
specific purpose as defined by the donor.
The most typical type of restricted account
is the scholarship account.
How are Designated & Restricted
Accounts Managed?
• Although balances in these accounts roll forward at the
end of the fiscal year; they must end the year ‘in the
black.’
• Estimated annual revenue in these accounts is based on
prior history and does not include ‘roll-over’ funding.
• Departments may be asked to provide revenue
estimates during the budget preparation process.
• Fund sources include: ‘banked’ surpluses from prior
years, gifts & annual endowment income distributions.
• Budgeted expenditures are projected to ‘match’
estimated revenue, but actual expenditures may not
exceed actual revenue plus roll-over funds.
Expenditure Control
The financial administrator is responsible for
insuring that expenditures are incurred
against the appropriate account and object
code and that they comply with university,
college and departmental policies. (S)He
must develop and implement appropriate
practices within his(her) area to insure
compliance.
College Policies (cont’d.)
Supplemental expenditure policies may be
established by the dean, vice dean,
department chair, program director
account principal investigator and/or
relevant faculty.
College Policies (cont’d.)
Signatory Authority
– The primary authorized signor is responsible for the
prudent management of an account.
– The chair, director or P.I. may delegate signatory
authority to appropriate administrators, except that an
authorized signor may not also be responsible for
reconciliation of the account.
– Signature approving a financial expenditure also
confirms that the expenditure is reasonable,
appropriate to the account and in compliance with
university and/or funding source regulations.
College Policies (cont’d.)
• The fiscal administrator is responsible for
– insuring that individuals involved with financial
or expenditure paperwork are aware of (and
have access to) all relevant policies and
receive appropriate training.
– insuring that prior to signature, authorized
signors are aware of any issues related to an
expense which may require a written
justification or explanation to accompany the
document.
College Policies (cont’d.)
• To this end, the fiscal administrator should
recommend appropriate internal policies
and practices for:
– Training of new faculty, staff and students
– Paperwork flow to insure review for
completeness, accuracy and compliance
– Paperwork flow for approvals
– Fiscal paperwork file management
College Policies (cont’d.)
• Expenditure Paperwork Training –
legibility, accuracy, completeness,
compliance, documentation
– BERFs (new template)
– UM e-net (Ariba); Approval Loops (new
template)
– P-Card documentation (new template)
Monitoring of Expenditures
• Monthly reconciliation of R90’s (using RDS
not DMAS)
• Assign responsibility for corrections.
• Who to call for mistakes.
• How to reallocate expenses (journal
entries)
Monitoring & Reallocating Available
Funds
• When to use a fund transfer rather than
expense reallocation.
• Transfer of Funds U-budget accounts (F8)
• Transfer of Funds Designated & Restricted
Accounts (Journal entries)
• One-time-only vs. Permanent
Requesting Reimbursement
• From Dean’s Office -- See Policy
– Documentation required
– Approvals required
– When to use a F8 & when to use a JE
• From Provost – similar procedure, send
via Dean’s Office.
Reporting
The fiscal administrator is responsible for insuring that the
authorized signors and their supervisors within the
department receive regular and accurate summaries of
expenditures and fund availability to include:
• A monthly summary of R90’s expenditures vs. budget
• Projection of known and/or estimated expenses vs.
budget for the remainder of the fiscal (grant) year
• Identification of problems or opportunities identified as
part of the analysis process.
• Maintenance of data needed for annual reports, planning
and assessment purposes.
Auditing
Within a given department or program, there may
be several individuals with fiscal management
responsibilities. It is the responsibility of the
department manager and/or fiscal administrator
to conduct periodic audits to determine:
• Use of appropriate fiscal management practices
• Compliance with policies and procedures
• Expenditures are appropriate to purpose and
accounts to which they are charged.
• Chairs are required to certify to such controls
annually.
Sponsored Programs Fiscal
Administration
Within the College, senior administrators
have been designated to assist
departments with sponsored program
issues:
• Arts & Humanities – Judy Busch
• Life & Physical Sciences – Tracy Ehrlich
• Social & Behavioral Sciences – Richard
Williams
Basic Budgeting for Sponsored
Accounts – Pre-Award
• The proposal narrative, budget & budget narrative
should be checked by the department’s fiscal manager
before the chair signs the proposal transmittal form.
• When appropriate, the Cost-Share & Matching Funds
form must be attached, include all cost-share or
matching commitments & identify the funding source(s).
• The Proposal Transmittal Form and related attachments
must be signed by the chair & appropriate vice dean
before they are sent to Research Administration for
review & processing.
• For assistance with pre-award administration issues,
refer to the University’s UMPARA website.
Basic Budgeting for Sponsored
Accounts – Post-Award
• All sponsored program (grant) accounts are
created by the Office of Sponsored Programs
Administration upon receipt of an award notice
• If the award notice is delayed, an account may
be requested by the department under
‘guarantee.’
• Fiscal administrators should review the budgets
as created to be sure that they comply with
award allocations.
• When necessary an IPAR form should be used
to correct or revise budget allocations.
THE END
….FOR NOW