Transcript Dickinson Budget training

Budgeting Fundamentals
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Definition of Key Concepts
Reading and Understanding Budgets
Managing Budgets
FAQs
Dickinson College’s Fiscal Year runs from July 1 to June 30
Fiscal Year is named by the year in which its ends. For example:
•FY11 runs from July 1, 2010 to June 30, 2011
•FY12 runs from July 1, 2011 to June 30, 2012
Fiscal Periods are numbered per the fiscal year:
•Period 01 = July
•Period 02 = August
•Period 03 = September
•Period 04 = October
•Period 05 = November
•Period 06 = December
•Period 07 = January
•Period 08 = February
•Period 09 = March
•Period 10 = April
•Period 11 = May
•Period 12 = June
•Period 13 = D’son doesn’t use
•Period 14 = Accrual Period
Fund - a six digit code that identifies the source of the money; e.g., operating
budget, internally designated, grant, etc.
Organization - a six digit code that identifies the
department spending the
money; e.g., English, Admissions, Financial Operations, Biology, etc.
Account - a five digit code that identifies the type of expenditure; e.g., postage,
office supplies, travel, printing, etc.
Program- a three digit code that identifies the general purpose; e.g.,
instructional, student services, institutional, etc.
Activity- a four digit code that can be used to track a project or event within
your budget.
Location- a four digit code that identifies different campus locations and is used
by Facilities.
All parts of the “FOAP” (fund, organization, account, program) must
be used in coding.
“AL” (activity, location) are optional codes.
Basic FOAP string is: xxxxxx-xxxxxx-xxxxx-xxx
Example: 110100-601050-70101-600
110100 = General Operating Fund
601050 = Financial Operations
70101 = Postage
600 = Institutional
This transaction means that Financial Operations used money from its
operating budget to purchase postage in its institutional role at the
College.
FUNDING SOURCES
BUDGET
OTHER:
Internally Designated
Grants
Endowment
Agency
OPERATING
Available in Banner
Self-Service
STUDENT WAGES
PAYROLL & BENEFITS
Not available in
Banner Self-Service
Adopted Budget: Budget that is given yearly for daily operation of the department.
Temporary Budget: Budget that is given for a one-time need such as equipment,
furniture, etc.
Accounted Budget: Term used in Banner Self-Service for total budget. This equals
Adopted Budget + Temporary Budget.
Funds that start with “1” or “3” are general operating funds
•Budget money is supplied yearly
• Monies are to used for the daily operation of the department
•Unused budget money does not roll over to subsequent year
Funds that start with “2” are restricted funds
•Funding comes from an non-budget source such as contributions, endowment,
grants, etc.
• Fund has a specific purpose and monies are to be used within those guidelines
•Unused money does roll over to subsequent year
Funds that start with “8” are agency funds
•Funds held for others such as Senate Clubs or national honor society local
chapters
• Some transactional activity may be in liability accounts which are not available
on Banner Self-Service
•Unused money does roll over to subsequent year
Account Numbering Logic:
• “4’s” = Fund Balance – monies rolled forward from
previous year – used in Banner Self Service with Restricted
Funds
• “5’s” = Revenue
• “6’s” = Payroll*
• “7’s” = Expense
• “8’s” = Transfers
* Only Student Payroll is available in Banner Self Service
Sample Operating Budget:
205600 – Equestrian Studies
70054 Supplies-Educational
1,000
70055-Supplies-Office
500
70101-Postage-General
100
70205-Travel-Field Trips
1,500
70302-Printing/Duplicating-Copying
900
70552-Fees-Professional Dues/Membership
300
70553-Fees-Subscprit/Books/Publications
200
70804-Telcom-Telephone Charges
250
70911-Program Expenses
750
TOTAL OPERATING BUDGET
5,500
• Budgets are spread across
several account lines
• Budgets are a forecast of future
spending – actual spending may
vary in individual lines.
Account
60401
60402
70055
70061
70101
70153
70155
70201
70202
70203
70204
70301
70302
70360
70551
70552
70553
70504
70903
72401
Account Title
Student Wage-Institutional
Student Wage-FWS
Suppplies-Office
Supplies-General
Postage-General
Entertainment/Receptions/Banquets
Meals-Dining Service
Travel-Transportation
Travel-Lodging
Travel-Meals & Entertainment
Travel-Other
Printing/Duplicating-In-House Pring
Printing/Duplicating-Copying
Prof. Fees-Other
Fees-Conference/Meeting/Seminar
Fees-Professional Dues/Membership
Fees-Subscript/Books/Publications
Telcom-Telephone Charges
Misc. Expense-Other
Furniture
TOTALS
Acounted Budget Year to Date
Available Balance
3,132.00
4,036.87
(904.87)
1,218.00
1,075.64
142.36
9,142.00
9,336.07
(194.07)
1,670.00
1,868.96
(198.96)
13,363.00
11,086.12
2,276.88
1,038.00
478.12
559.88
34.00
34.00
980.00
718.62
261.38
1,397.00
2,372.09
(975.09)
313.00
562.76
(249.76)
3,314.00
410.28
2,903.72
3,573.00
4,325.05
(752.05)
1,925.00
3,469.92
(1,544.92)
4,527.00
3,882.82
644.18
2,573.00
3,023.00
(450.00)
1,476.00
1,229.95
246.05
4,335.00
1,410.92
2,924.08
1,550.00
1,017.14
532.86
355.00
497.07
(142.07)
614.51
(614.51)
(55,915.00)
Budget
(51,415.91)
Expenses
to date
Budget minus
Year-to-Date
Student Wages
6’s
Operating Expenses
7’s
Determine amount
available to spend
by subtracting
Year-to-Date from
Accounted Budget
Account
Account Title
41000 Fund Balance-Unrestricted
53101 Contributions-General
70054 Suplies-Educational
70205 Travel-Field Trips
81200 Transfers-General
Report Total
Accounted
Budget
Year to Date
6,321.56
2,500.00
958.78
4,698.75
500.00
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2,664.03
Fund Balance- 4’s
Revenue-5’s-add to Fund Balance
Operating Expenses-7’s-subtract from Fund
Balance
Transfers-8’s-subtract from Fund Balance
Available Funds
•Fund Balance is money rolled forward from previous year
•Note that Budget column reads “0”. Restricted Funds are not funded by budget.
•Note that Available Balance column is not used. Since it equals Budget minus Year-todate, it is meaningless in the absence of budget monies.
•Remember that payroll (other than student payroll) does not show in Banner SelfService. If you know that payroll is being paid from a restricted fund, please contact the
Budget Office for that information and to obtain your true Report Total.
Types of transactions charged to budget:
• Monthly Entries for College Services – phones, mail, print center, vehicles
•Example: “JM000442 - FAS Mail-July 10”
• Invoices paid through Accounts Payable to outside vendors
•Example: “I012999 - AT&T Wireless”
• Transfers between two Dickinson College departments
•Example: “J0006899 - To History for copies”
• Purchasing card transactions
•Example: “PC072610”- USAIRWAYS”
• Cashier’s Office transactions (cash payments under $100)
•Example: “F0007694 - Doe, J./reim tolls-NYC”
Transaction Code Legend:
“J” – Journal Entry, followed by description of transaction
“I” – Invoice, followed by name of vendor
“PC” – Purchasing Card, with date of statement close (072610 = July 26, 2010),
followed by name of vendor
“F” – Feed, followed by description of Cashier’s Office or Advancement transaction
THE ABC’S
Campus-wide reporting depends on accurate coding by all
departments.
A: Accurate
Coding
Pick the account line that most closely matches the purchase.
You can code to lines even if you do not have budget allocated
to that line.
Account list is located in Banner Self-Service and on the
Financial Operations website for reference.
B: Bottom
Line
You do not have to stay within budget in every line. However,
you should not spend more than the department total.
C: Check
Regularly
Monitor your budget on a regular basis. Contact the Budget Office
with any questions as mistakes in coding can occur.
Use your spending history to refine your budget next year.
You will be able to more effectively manage your budget and
avoid possible overages if you aware of its status throughout the
fiscal year.
The Budget Officer……
……is responsible for all budget expenditures. Your approval indicates that the
expenditure is appropriate and adheres to current College guidelines.
……is expected to spend within the limits of the budget. Particular caution
must be taken at the end of the year when determining the availability of funds
since many transactions are in process (monthly college services such as phone,
copier charges, postage, etc., and expenditures via a Purchasing Card).
……can appoint a proxy for day-to-day transactional budget work, but must
provide appropriate oversight.
……develops the budget for the next fiscal year in the spring. Past spending
history, additional training, and assistance will be provided.
……can access a variety of resources on the Financial Operations website.
1. When should I contact the Budget Office?
• You see a transaction in your budget that you do not understand or recognize
• You need payroll information not provided in Banner Self-Service
• You need information on an Agency Fund (starts with “8”) because not all
transactional data is available in Banner Self-Service
• You are having difficulty managing your budget and may want to reallocate
• You are having difficulty accessing your budget through Banner Self-Service.
Troubleshooting is available over the phone.
• You want to assign a proxy and are requesting access for that person
2. May I use unspent student wage budget monies to cover overages in my operating
budget?
• No. These are two separate budgets. You are expected to come in at or under
budget in each one.
3. May I reallocate budget during the year?
•
Yes. Contact the Budget Office. We do not recommend moving small amounts
of budget between lines, but will move budget to help you more effectively
manage your budget.
4. How timely is the data in Banner Self-Service?
• Any entry posted into the Banner ledger is available in Banner Self-Service in 90
seconds. For example, when Accounts Payable enters an invoice you have sent
over for payment, you will see it 90 seconds later. There are two important
exceptions to remember:
1. College services such as phones, print center, postage, vehicles, etc., are
posted monthly. For example, a completed print job from the Print Center
received in early September will not be charged to your budget until the
end of the month. (Copier charges are posted quarterly.)
2. The Purchasing Card transactions are also posted monthly after the close of
the statement on the 26th. Due to a time allowance for cardholders to code
their purchases, Purchasing Card transactions post on the 11th of the
following month .
4. Why did a Purchasing Card transaction show up in an account line I did not
designate?
• The Purchasing Card transactions for the entire College are uploaded to the
ledger at the same time. The upload will fail if even one transaction is not coded.
Therefore, Financial Operations will assign the closest ledger code based on the
vendor’s MCC designation to any transactions not coded by the 10th of the month.
6. How do I get more budget money?
• If you need additional student wage monies, please contact Heather Dunn to
discuss your situation.
•The Vice President of each Division controls the operating budget monies in
his/her Division, working in conjunction with the College’s Planning & Budget
Committee.
7. Can I roll unused budget monies forward from one year to the next?
•No. You are given budget monies for each year.
8. Who do I call with a question about….
• Operating Budget Questions/Transfers– Laura Potthoff
• Student Wage Budget Questions/Transfers – Heather Dunn
• Banner Self-Service Training/Issues – Laura Potthoff
• Purchasing Card – Kari Travitz or Miriam McMechen
• Obtaining Banner Self-Service access for a Proxy – Miriam McMechen
We hope that you have found this presentation helpful.
We are always interested in hearing:
1. Your thoughts and ideas that would result in more efficient use of financial
resources within the Dickinson Community
2. Ways our office can more effectively meet your informational or training needs
Please contact us with any questions/comments:
Margaret Stafford, Associate Director of Budget and Planning
Heather Dunn, Assistant Director Student Employment/Resource Analyst
Laura Potthoff, Budget Coordinator