Budget Revision Training Presented by Budget Office Magda Rangel, Financial Analyst 1.
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Transcript of Budget Revision Training Presented by Budget Office Magda Rangel, Financial Analyst 1.
Topics to be covered
Background Information• GL Accounting String• Funds Checking• GL Funds Inquiry• Fiscal vs. Rollover Accounts• Budget Revisions Needed• Budget Revisions Not Allowed• Drill Down Procedure
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GL Accounting String (aka “Accounting Key Flexfield”)
Accounting Flexfield sections
Example: Budget Office operating expense line
10.G0000.30200.100BUDG00.53001.000060
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GL Accounting String
Fund10.G0000.30200.100BUDG00.53001.000060
Ranges:10 – Educational & General (E&G)20 – Designated30 – Auxiliary40 – Restricted50 – Loans60 – Endowment70 – Plant80 – Agency
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GL Accounting String
Funding Source10.G0000.30200.100BUDG00.53001.000060
Examples:G0000 – E&G Unspecified (G1xxx is “Fund 1”; G2xxx is “Fund 2”)D1000 – DesignatedD2000 – Service DepartmentsD4000 – Indirect Cost RecoveryA1000 – AES Student ServicesR1000 – Federal GrantR5000 – Private GrantZ2000 – Agency Scholarship
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GL Accounting String
Organization10.G0000.30200.100BUDG00.53001.000060
Ranges:1xxxx – President2xxxx – Academic Affairs/Colleges3xxxx – Business Affairs5xxxx – Student Affairs6xxxx – Information Technology7xxxx – University Advancement
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GL Accounting String
Project Value10.G0000.30200.100BUDG00.53001.000060
Examples:“1” – E&G (State) accounts ►“21” – Designated accounts“22” – Service Departments“24” – Indirect Cost Recovery“310” – AES Student Services“41” – Federal Grant“45” – Private Grant“82” – Agency Scholarship
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GL Accounting String
Object10.G0000.30200.100BUDG00.53001.000060
Examples:40001 – Revenue Budget51101 - Wages53001 – Operating Budget53005 – Materials and Supplies53010 – Utilities53025 – Printing and Reproduction57001 – Travel58500 – Capital Asset Purchases
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GL Accounting String
NACUBO10.G0000.30200.100BUDG00.53001.000060
Examples:000010 – Instruction000020 – Research000030 – Public Service000040 – Academic Support000050 – Student Services000060 – Institutional Support
000070 – Operation & Maintenance of Plant000080 – Scholarship000090 – Auxiliary 000100 – Depreciation & Amortization000110 – Agency000000 – Used only for Revenue & Transfers
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Funds Checking
• Oracle performs absolute funds checking at the non-labor expense summary (“60000” object).
• For non-sponsored activities, budget changes between non-labor expense pools belonging to the same project are not required.
• Must exercise care that overall account balance (“99999” summary) does not go negative due to revenue or labor expense deficits.
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Budgeted Object Codes Summary Objects
▼ ▼ ▼ ▼
40001Revenue 40000
99999
44600Transfer In (Intrafund)
44626Transfer In (Interfund) 51001Single Incumbent Salaries 51000
52999
51002Faculty Salaries 51003Longevity Pay 51010Pooled Salaries 51101Wages 5110052001Benefits 5200053001Operating Expense 53999
60000
53425Transfer Out (Intrafund)
53430Transfer Out (Interfund) 54001Books 5499955001Scholarship 5599957001Travel 5799958001Capital Outlay 5899959001Merchandise for Resale 59999
GL FundsInquiry
Budget – Encumbrance – Actual = Funds Available• Account balance = funds available in “99999” summary line.
• A negative ( ) in funds available column is always a deficit, even in revenue lines.
• To view current account balance: Select “Revised Budget”, “Year to Date Extended” amounts, “All” encumbrances, and latest open period.
• Hint: First select “Summary” account level to get overview of account, then drill down into detail accounts, periods, and transactions using the Tools menu.
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Fiscal Accounts• E&G (except HEAF) and Auxiliary• Funded by expense budget• Easy to transfer between accounts (just move budget)• Unencumbered balance lapses at fiscal year-end
GL Funds Inquiry (Budget – Encumbrance – Actual = Funds Available)
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Account Budget Encumbrance ActualFunds
Available
Operating (53999) 800.00 50.00 150.00 600.00
Travel (57999) 200.00 0.00 100.00 100.00
Non-Labor Total (60000) 1,000.00 50.00 250.00 700.00
Account Total (99999) 1,000.00 50.00 250.00 700.00
Rollover Accounts• Designated (start with “2”), Restricted, Plant, Agency, HEAF• Self-funded by revenues, transfers-in and/or carryover balance • Transfer between accounts by actual funds transfer, not by moving budget• Balance before encumbrances carries forward to next year (non-lapsing)• Account is fully funded when revenue summary (49999) is non-negative.
GL Funds Inquiry (Budget – Encumbrance – Actual = Funds Available)
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Account Budget Encumbrance ActualFunds
Available
Revenue (49999) (1,000.00) 0.00 0.00 (1,000.00)
Operating (53999) 800.00 50.00 150.00 600.00
Travel (57999) 200.00 0.00 100.00 100.00
Non-Labor Total (60000) 1,000.00 50.00 250.00 700.00
Account Total (99999) 0.00 50.00 250.00 (300.00)
Rollover Accounts (continued)
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Account Budget Encumbrance ActualFunds
Available
Revenue (49999) (1,000.00) 0.00 (1,200.00) 200.00
Operating (53999) 800.00 50.00 150.00 600.00
Travel (57999) 200.00 0.00 100.00 100.00
Non-Labor Total (60000) 1,000.00 50.00 250.00 700.00
Account Total (99999) 0.00 50.00 (950.00) 900.00
Account Budget Encumbrance ActualFunds
Available
Revenue (49999) (1,000.00) 0.00 (800.00) (200.00)
Operating (53999) 800.00 50.00 150.00 600.00
Travel (57999) 200.00 0.00 100.00 100.00
Non-Labor Total (60000) 1,000.00 50.00 250.00 700.00
Account Total (99999) 0.00 50.00 (550.00) 500.00
◄ $200 revenue shortage
(after $800 received)
$200 ►revenue surplus
(after $1,200 received)
When is a budget revision needed?
• To set up a new budget• To align expenditures with actual or anticipated revenues• To fully fund labor costs
• Position Changes• Benefits and Longevity (non-E&G accounts)
• To address or avoid funds checking failures in non-labor expenses
• To transfer funds between two or more accounts
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Which revisions are not allowed?
• Transfer of funds into or out of the following E&G subgroups:
• Transfers which cross fund groups (with a few exceptions)Example: Indirect Cost Recovery funds may not be moved to an E&G account.
• Transfers which would violate the purpose of an account.Examples:• Endowment income restricted to payment of scholarships may not pay travel.• Fee revenue may not be used for purposes outside of the fee justification.
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Prefix E&G SUBGROUP Prefix E&G SUBGROUP
135 Research Enhancement 165 Advance Technology
145 Incentive Funds 180 Special Lines / State Transfers
160 HEAF 185 Institutional Enhancement
Drill DownProcedure
1. Place cursor on summary line you wish to examine. Next, select Tools and select Detail Accounts
2. Place cursor on the detail account line you wish to examine. Select Tools and select Period Balances
3. Place cursor on month of interest. Select Tools and select either Budget Lines, Actual Lines, or Encumbrance Lines based on type of inquiry.
For additional information, refer to Accounting for Your Project in Oracle (Reconciliation Guide) available at the Accounts Control website: http://portal.utpa.edu/utpa_main/dba_home/comptroller_home/accounts_control_home/
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