FINANCIAL LIAISON MEETING JUNE 2009

10079DG03.PPT/37COMMnll January 12, 20071

FINANCIAL LIAISON MEETING

JUNE 2009


FY10 OUTLOOK AND FY10 OUTLOOK AND PROPOSED BUDGET PLANPROPOSED BUDGET PLAN


FY09 Funding ShortfallFY09 Funding Shortfall

All Divisions

AuburnCampus

Reduction in FY09 total AU state appropriations - 12% $42.9M $28.0M

FY09 prorated – 9% $26.4M $17.3M

Total reduction in FY09 continuing funding $69.3M $45.3M

Less: Continuing funding shortfall addressed in FY09 $36.6M $22.2M

Shortfall of continuing funds in FY09 $32.7M $23.1MAUM $ 2.9M AAES $3.2M ACES $3.5M


AUBURN UNIVERSITY-Auburn CampusAUBURN UNIVERSITY-Auburn CampusProposed Budget PlanProposed Budget Plan

Projected shortfalls/add’l costs

Shortfall of continuing funds FY09 $23.1M

Further reduction in state app FY10

$ 5.8M

Mandatory & essential costs FY10 $10.3M

Required to address budget needs $39.2M


AUBURN UNIVERSITY-Auburn CampusAUBURN UNIVERSITY-Auburn CampusProposed Budget PlanProposed Budget Plan

Required to address budget needs $39.2M

Less: Proposed tuition/fee increase $ 9.0M

Permanent budget reduction $ 15.1M

Shortfall of continuing funding remaining $15.1M

One-time budget reductions $15.1M


Budget StrategyBudget Strategy

• Continued focus on strategic plan• Enhance quality and reputation and maintain progress of

past years• Reduce costs of operations where possible

– Numerous budget and cost reduction initiatives underway• Inclusive budget process

– 26 member Budget Advisory Committee with broad representation

– Various meetings/discussions with Deans – Senate, Admin and Prof, Staff discussions– Solicited input on cost cutting, revenue enhancement

• Internal and external messages from President• Permanent Budget reductions – all divisions


Current InitiativesCurrent Initiatives

• Strategic Sourcing project – IT hardware & peripherals, office related products, travel, scientific supplies, cell phones and mobile devices (more shortly from PPS)– New contracts with discounts, rebates, bonuses,

scholarships • Equipment threshold• Fringe benefit rate project and benchmarking– currently

underway with October 1 implementation• Review of special budget allocations including ICRE,

summer incentives, etc.• Life insurance and LTD cost reduction• Facilities prioritization process


Budget Guidelines – All Budget Guidelines – All DivisionsDivisions

• No salary increases for 2nd consecutive year • Promotions will be funded• Mandatory and essential allocations• Continuing and one-time budget reductions


Budget Development Update


DOCUMENT CODES

Controller’s Office Controller’s Office


Banner Document Codes

Banner Finance Document codes The list below provides a basic definition of the documents and the person or group to contact if you have questions .

Code Definition contact person

AE Thirteen month entries and accruals 3600 - Financial Reporting

AL Alumni Accounting Chart M 7035 - Kristy Peralta

AT Athletic Chart A Fupload feed 9841 - Jennifer Wright

BB GL Balance load 5852 - Budget office

BG Budget Load 5852 - Budget office

BS Bookstore Direct Charge Feed 1355 - Resa Halsey

BT Bank Transfer 3732 - Linda Ledbetter

CC Copy Cat Direct Charge Feed 4200 - Glenda Miley

DC Dixon Conference Center Dexter Jackson


Document Codes Continued

DJ Development Accounting Budget 7982 - Kathy Wilson

DM Donor Management 7982 - Kathy Wilson

FC Facilities Direct Charge Feed 9505 - Glenn Adams

FR Financial Reporting Fuploads 3600 - Financial Reporting

FS Food Service Direct Charge Feed 1487 - Beth Tatum

FY Foy Student Union Direct Charges 1303 - Andrea Conti

IM AUM Student Refunds 334-244-3733 Kay Knighton

IT OIT Direct Charge Feed [email protected]

PC Purchasing Card 7771 - Debbie Griggs

RE Chart R ARTF 3602 - Cathy Pate

RF RESF Direct Charge Feed 1832 - Pat Smith

RM Risk Mgmt Direct Charges 4533 - George Leaker

SF Spirit Foundation Chart S 1299 - Donna Mitcham

SP Sympro Cash Receipts Feed 5233 - Pam Lindsay

TE TES Direct Charge Feed 1604 - Mike Hill

TS Treasury Services Direct Charge Feed 0433 - Shauna Kilpatrick (Pool shares) 5231 - Regena Isbell (distribution )

TU TUF Accounting Chart T 9841 - Jennifer Wright


Document Codes Continued

D Document tag Number (Fixed asset) 5937 - Property Services

E Encumbrance Number 7771 - Sara Henderson

F Interface Document Number 5661 - ISS (documents are: SFS - Payroll - LMS )

G Deferred Grant Calculations JV 4847 - Contracts and Grants

I Invoice Code 3639 - PPS Customer Support

J Journal Voucher Code Budget Office for budget transaction -all others 3600 - Financial Report

M Fixed Assets Accounting Adjustments 3600 - Financial Reporting

N Permanent Tag number 5937 - Property Services

P Purchase/Change Order Code 7771 - PPS Buyer

R Requisition Code 7771 - PPS Buyer

T Origination Tag Num (Fixed Assets) 5937 - Property Services

S AU SFS Invoices 3771 - Jan Pettus


Codes No Longer Used BUT you May Need for Historical Review

AF AUM A/R Feed to Fupload 334-244-3733 Kay Knighton

BD FRS Budget Load 5852 - Budget Office

BK Bank Transfer 3602 - Cathy Pate

EF FRS EFT correction AmSouth Bank 7771 - Melissa Morris

FA SIS BRS Accounting Feed 3771 - Jan Pettus

FB FRS Balance loads 3600 - Financial Reporting

FG FRS General Accounting Feed 3600- Financial Reporting

FJ Financial Rpt Accrual Fuploads 3600- Financial Reporting

FL LMS Accounting Feed 3762 - Julie Trussell

FM AUM Accounts Receivable Feed 334-244-3733 - Kay Knighton

FP HRS Payroll Accounting Feed 1487 - Beth Tatum

IA AU BRS Student Refund 3771 - Jan Pettus

NP Net Pay for Payroll 5661 - ISS

RE Used by ISS to Reverse feeds 5661 - ISS

SE Scholarship Encumbrances 5661 - ISS

TC Tiger Card Direct Feed 1438 - Teresa Chandler

WK PPS Works for Purchasing Card 7771 - Debbie Griggs

DB Development Accounting Budget 7982 - Kathy Wilson

DF Development Accounting Budget 7982 - Kathy Wilson


Procurement & Payment ServicesProcurement & Payment Services

Results of Phase ICost Reduction Initiatives

Strategic Sourcing


Cost Reduction InitiativesCost Reduction Initiatives

• Strategic Sourcing project – Phase I is complete– Office supplies– IT hardware– Travel

• Involved review of spending habits, renegotiation and bid of contracts, policy adjustments, demand management

• Cost savings will be retained in units, allowing for better opportunity to manage budget reductions

• Contract vendor show targeted for early fall


Office Supplies and Related Products

• Awarded to OfficeMax• Includes paper, toner and office supplies

(Toner portion of contract will go into effect Nov. 1)• Core list and non-core discounts

(63% WAD off of a core list of 400 items)• Vendor providing significant financial incentives• “Retail Connect” cards and discounts for personal

spending provided• Webinar training plus • Vendor kickoff show on July 14 at 9:00 AM


IT Hardware

• Renegotiated contract pricing with Dell

• Desktops/laptops

• Larger number of bundles “AU Best Buys”

(42% off of any bundle)


IT Peripherals

• Awarded to GovConnection

• Includes printers, memory, monitors, keyboards/mice, storage devices and systems, video projectors

• Volume Rebates

• “Best Buy” printers are being established


Car Rental

• Awarded to Enterprise/National (contract # XZ55028)• Includes Local, Domestic, and International rentals• Deeper discount pricing available for local rentals• 5,000 locations throughout the US• Greatest savings achieved by renting compact &

standard/midsize class vehicles• Current personal “preferred” status with other

vendors will be honored/matched• Vendor kickoff event- week of July 6


Benefits of Contract Usage

• Achievable 1st year savings of between 11%-13% or $1M - $1.2M by utilizing preferred vendor contracts

• Electronic ordering will be available via PPS webpage and/or AU Access

• Financial incentives and discounts will help offset current and future budget cuts

• The higher the spend volume with preferred vendors the greater the volume rebates

• When preferred vendor contracts are used, AU can easily track spend to allow for future price negotiations with vendors


Cost Reduction InitiativesStrategic SourcingPhase II Overview


Phase II Overview

• Strategic Sourcing project – Phase II began late May

• AU Travel Processes & Procedures• Preferred Airline Agreement• Preferred Hotel Agreement• Scientific Supplies


BANNER REPORTS

Management ReportingManagement Reporting


Banner New Reporting Banner New Reporting e~Printe~Print

Reminder that base reports are available monthly in e~Print which allow you to focus only on 10x001 base funds within your division, executive level or college.

The report names are:• Base Budget Balances (excluding benefits 62xxx)• Base Budget Balances Labor Only (60xxx & 61xxx)• Base Budget Balances Operational Expenses


New Reports Continued

• GL-SL Comparison Report

Allows Budget Services to routinely identify variances that exist between a general ledger fund balance and an operating ledger available balance. Review covers numerous fund types but ignores ones where it is likely the fund balance and available balance should not be in sync (example – auxiliaries).


New Report Similar to FRS 045

REPORT NAME: FZODOS1• This report has been in the works for over a year and has

gone through numerous revisions and tests. We are ready to roll it out and am hopeful you will find the report useful.

• Available at month end in e~Print by College, School or Department Organizational Hierarchy.

• If college or school is selected, the report will accumulate funds by type at the department level and summarize by college at end of report. If multiple divisions are found (should not be), the information will sort so each division is displayed.


FZODOS1

• Fund information displayed includes:Unrestricted - (10x001-10x004) fund types 1A-1D

Contracts & Grants – fund types 2A-2D Appropriations – fund types 2E, 2F, 2S, 2T, 2U Other Restricted – all other 2x fund types Plant – typically unexpended plant/construction R&R – fund types 9E-9H

• Each section above will have unique headers providing unique information based on the type of fund


FZODOS1

• A lot of information on this report. Stretching it across the page makes it appear small. When printing out this report, go into printer properties and change the page size to legal (8 ½ x 14).

• On most printers you can also zoom to about 110% to make the print a little larger.


FZODOS1

Tips

1. Check to see if multiple divisions are present. Would typically suggest a problem. If pulling division 1 org, you would only want to see division 1 fund (rare exceptions).

2. The report works off of most current organizational hierarchy

3. In C&G section, fund balance at month end will usually be zero as revenues are booked to match expenditures made with reimbursement from agent to follow. Report focuses on budget versus spending.

4. C&G and Plant fund sections use the grant ledger

5. Other Restricted section available balance and fund balance should match. If not, review of details is necessary.

6. Appropriations (2F) available balance and fund balance will differ by original budget. If different, will require investigation.


FZODOS1

• Go to e~Print Report for further explanation

In our example we will review:

the best way to extract the data

sectional headings


What’s Next

• Fund Attributes – changes in process• College Visits to resume• Additional training options, new reports, workflow

opportunities, etc.• Example of benefits: Several months back, the Dean of the

College of Veterinary Medicine requested a summary report be created that would show departmental balances. A new report is in the process of being written that many of you may find useful for your area.

• This report will provide by department within the college, base, other unrestricted, C&G, restricted, plant and R&R information. Each section within the report will show sources of revenue, carryover, expenditures and encumbrances, as well as supporting fund balance information. We are a couple of months away from completion.

• How can we assist your area?

FINANCIAL LIAISON MEETING JUNE 2009

Documents

Transcript of FINANCIAL LIAISON MEETING JUNE 2009