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Boise State University Budget Office

Goals for Training

1. Understand Basic Budget Building 1. Understand Basic Budget Building

2. How to Monitor OE, Travel & Capital Budgets

2. How to Monitor OE, Travel & Capital Budgets

3. How to Monitor Payroll Budgets3. How to Monitor Payroll Budgets

4. Understand End of Year Processes 4. Understand End of Year Processes

For Profit vs. Government

For ProfitRevenue –

Expenses = Net Income

Maximize Profit

GovernmentResources Received = Resources Used

Efficient & Effective Use of Resources

Boise State University

Financial Reporting

Fiscal Year

ProgramType

Department Account

FY 2008

July 1, 2007To

June 30, 2008

10 Digit Alpha-Numeric

909A100001

6 Digit Numeric

AssetLiabilityRevenueExpenseFund Balance

Associated with Department

General description of activity

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

006 A 100001

Department

Anatomy of the Department ID

Department identifier

Fund SourceA = Appropriated

L = LocalG = Grant

Section/Unit Identifier

Format: 3-1-6

Alpha Numeric

B i o l o g y

1 = Main Campus

2 = BSU West

Accounts

6 Digit Numeric“Buckets”3***** = Revenue4***** = Personnel Costs5***** = OE & Travel (53****)6***** = Capital9***** = 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

DepartmentsDeans / VP’s /

Provost / PresidentState Board of

EducationGovernor /

LegislatureLending institutionsAuditors

Uses of Financial Statements

Track progress towards goalsCompare Actual with Plan/BudgetCommunicateModify behaviorAssess financial conditionAssist in evaluating efficiency and effectiveness

Why do we have Budgets?

Control spendingMonitor progress & modify spendingCommunicateRequired

Kinds of Budgets

Appropriated General Fund (taxes)

$80 million Budget Tuition

$47 million Budget

***A****** Departments

Local & Auxiliary Other Student Fees User Fees F&A Transfers from

Foundation $26 million Local

Budget $61 million Auxiliary

Budget

***L****** Departments

Appropriated Budget Process

BSU Budget Process

JULY: Budget effective

AUG: Submit Budget Request to SBOE

DEC: Annual Planning Documents

MAR: Local Budget Templates

MAR: JFAC & SBOE sets Budget MAY: BSU

sets department budgets

Local Budgets

Budget = a plan or estimateMost common meaning for businessBudget is not a guaranteeNo budget transfersAnnual budget preparation: March – MaySeparate budget bookLook 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 activityEnsure strategic plans are metMake better planning decisionsGives you something to compare current activity

against

How does a Local Budget work with the Fund Balance?

Fund BalanceSalary OE

10,000 5,000 5,000

Budget

How does a Local Budget work with the Fund Balance?

Fund BalanceSalary OE

10,000 5,000 5,000 (3,000) (3,000)

Budget

How does a Local Budget work with the Fund Balance?

Fund BalanceSalary OE

10,000 5,000 5,000 (3,000) (3,000)

7,000 2,000 5,000

Budget

Auxiliary Budgets

Auxiliary Enterprises are essentially self-supporting per SBOE policy

Annual budget preparation: March - AprilInformation 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 = $61,315,648FY08 Expense = $61,260,842FY08 Total Employee FTE = 357.85

Auxiliary Budget Revenue

AUXILIARY REVENUE BY CATEGORY

APPROPRIATED3.9%

STUDENT FEES16.6%

PRIVATE GIFTS6.6%

TICKET SALES & EVENTS14.8%

SALES & SERVICE49.2%

FACILITY RENTAL2.9%

ADVERTISING & PROMOTIONS2.6%

OTHER REVENUE3.4%

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

DistributionLists $$ support from State and from StudentsLists 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 TransfersClearing 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 P-Card. Cost is about $100.

Folders

I’m going to purchase MS Project with my P-Card. Cost is about $100.

Memo: Acct: 557000 Desktop Software

Folders

Memo:

P-Card “Statement”:

$107.59

Office Max

Code to 557000 Desktop Software

Match Memos to P-Card “Statement”

Folders

Memo:

P-Card “Statement”:

$107.59

Office Max

Code to 557000 Desktop Software

Place in Pending P-Card Folder

Folders

Place in Pending P-Card Folder

Memo & P-Card “Statement”

Folders

Match P-Card Statement to PeopleSoft

Memo & P-Card “Statement”

Department Detail Report:

500000 OE

557000 Desktop Software

P-Card Wargo 107.59

Folders

File in Posted Expenses Folder

Memo & P-Card Statement

Department Detail Report:

500000 OE

557000 Desktop Software

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

Department Detail Report:

?

Call AP (if the source document is AP) or Accounting to get more information.

Invoice Copy

$345.67 Office Solutions

Reconciliation Workbook

Advantage of folders: Tracking expenses from your office to PeopleSoft

ExampleAdvantage 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 BPARsAcademic 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 & ProfessionalClassified

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 TransfersSTARS 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