APRIL 3-6, 2013, LONG BEACH, CA Facilities Accounting What Every District Should Know Lettie...

APRIL 3-6, 2013, LONG BEACH, CAFacilities Accounting

What Every District Should KnowLettie Boggs-Cowie, COLBI Technologies, Inc.

714-505-9544

APRIL 3-6, 2013, LONG BEACH, CA

Annual Cycle

Budget

Multi-year, Multi-fund

Pace and timing

Chart of Accounts

Risk and internal

controls

What are the differences

between fiscal and facilities accounting?

Annual Cycle

What are the differences between fiscal

and facilities accounting?

Facilities goes into its most active phase when Fiscal goes into closing activities

Important to have clarity of project scopes and budgets so facilities can proceed while fiscal is down

2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

Annual Cycle

CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO 2013

Facilities budgets need to be done for the annual update to the board, typically in conjunction with the Montieth Report, within 120 days after Fiscal close.

Project budgets span multiple years Facilities projects typically have multiple sources The aggregate of project budgets constitute the

Facilities Program

Annual Cycle


Project budgets combine to become the Program


Program budgets become cash schedules


Each project budget should be aged


Budget



The annual appropriation budget in fiscal is a subset of the project budget

The project budget can be funding driven – or need driven

And the basis may shift

The budget will change over time


Budget



Budget




The Triangle Effect

If you constrain one – the others move. The same essential project, with different constraints, will need budget adjustments.

Budget

Pace and Timing



In the spring the project budgets should inform the fiscal planning process

In the fall the fiscal close should inform the project budgets prior year actuals

Project budgets should be routinely be analyzed to keep them real and coordinated with fiscal (twice a year minimum)


Pace and Timing

Chart of Accounts



Fund Codes The source of the funds

Object Codes How you spend the money

Site Codes Don’t differentiate projects, but can help combine projects

Resource Codes Unique Code for Each Project

Coding Projects in SACSThe perfect accounting system tracks everything

you need to know – And nothing more!

Resource CodesResource 7710 is required for OPSC projectsEach 77XX Resource has a balance sheet

More work for Fiscal at year end

So…If one self contained project

Use a unique 77XX Resource

Avoid use of unique 77XX Resource numbers for sub projects

StrategiesBegin with the end in mind

SAB 50-06 ColumnsWhat constitutes a project?

If it is an OPSC project – account for it alone! Otherwise, track projects as bid

Have a distinct object code for every reporting category

Make sure your coding matches the way the projects will be billed

If you can’t easily know the number, it will be a lot of work to track it separately!

• Monitor the interest and assign it to projects– Its yours, but they track it– Be consistent in your methodology

• Track the savings and be able to report them– Need to report on the SAB 50-06 for the giving project and

the receiving project– Working on a change at OPSC on this one…

• The challenge of using 5800’s– What type of consultant?– All capital project costs can legitimately be in 6XXX

More Strategies…

Risk and Internal Controls



Internal Control Elements Control environment

Risk assessment

Control activities

Information and communication

Monitoring

Review Procedures and Workflow

Examine workflow in a team meeting

Map existing system

Correct bottlenecks and inappropriate assignments

Communicate to all team members

For the leader of the process Identify the processes

Contracting, PO process, invoice payments, change orders, stop notices, budget adjustments

Define your starting points clearly For the Contracting Process, you may want to start at approval of the

bid set and front end docs For the Payment Process, you may start at the arrival of an invoice or

payment application

Do the complex example, not the simple one

One step per post it

Let everyone contribute for themselves This gets to the real process Each participant’s role is validated

Flowchart Workshop

Give each dept a different color post-it pad

Have each participant write down each step they do in the process

Work together to put the post-its in the

correct order for the workflow

Control Checks

Establish approval routing Someone with knowledge of the work/purchase Someone with knowledge of the budget

Look at the results – is it what you want? Appropriate redundancies Inappropriate redundancies Legal compliance

Keep it real

Prepare a formal write up and circulate that draft for comments

If significant changes were made, schedule a Review & Revise meeting for 4-6 weeks after the flow charting Assure that changes have really happened Verify the system is working

This is a great opportunity to promote conversations

and understanding between departments

Remember to review

Review when new employees are hiredReview when people leave the process

The most likely person to pick up the work is the person who is the “second set of eyes”

Review when people are walking things through to make it happen – the process is broken!

Review when process changesReview annually

Calendar it

Lettie Boggs-Cowie

CEO

COLBI Technologies, Inc

714-505-9544

[email protected]

For questions or assistance with additional

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