Reading Account Statements & Expenditure Processing February 17, 2011 Sponsored Programs Accounting.
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Transcript of Reading Account Statements & Expenditure Processing February 17, 2011 Sponsored Programs Accounting.
Reading Account Statements& Expenditure Processing
February 17, 2011
Sponsored Programs Accounting
Workshop Goals/Objectives
• Overview of which documents PI receives on monthly basis and what they are
• How to understand your monthly statements• Understand Expense Processing (purchasing
card / travel)
• Answer any questions
Where can I find help?
Call us! Really – we’re friendly people!487-2244
Reference manual at:http://www.mtu.edu/research/references/training/docs/reference-manual.pdf
Our websitewww.mtu.edu/research/adminstration/accounting
Monthly Statements – Who gets them?
• Beginning of Month statements are sent to:• Principal Investigator / Financial Manager• Department Coordinator
• These reports are sent via Email
What are these reports???
• Budget vs. Actual Report• Shows a summary of the budgeted line items as well
as current month and project to date expenses
• Organization Detail Report• Lists all transactions (expenses) for the period
What are these Reports???
• Open Encumbrances Report• Lists all open encumbrances
• Gross Earnings Report• Lists Employees on project, hours worked and amount
charged
Budget Vs. Actual Report
Open Encumbrance Report
Organization Detail ReportAKA: Transaction Detail
Gross Earnings Report
How are these reports related?
All reports tie together!
Total Payroll Expenses are found on: Budget vs. Actual, Gross Earnings & Org. Detail
How are these reports related?
Non Payroll expenses can be found on the Budget Vs. Actual and the Organization Detail
Total Encumbrances can be found on the Budget Vs. Actual and the Open Encumbrance Report
Tying it all Together
Actual Vs. Budget Report
Transaction Detail Report
Gross Earnings Report
Tying it all Together
Actual Vs. Budget Report
Transaction Detail Report
Note that the $210.15 charge shown on the Actual Vs. Budget Report is comprised of two different charges, as shown on the Organization Detail Report
Tying it all Together
Actual Vs. Budget Report
Open Encumbrance Report
Wondering how much you have left to spend?
For Projects with no cost share:
Take the BALANCE amount as seen at the bottom of the Budget vs. actual report
LESS: the total encumbrance amount times the F&A rate
DIVIDE that total by 1 + the F&A rate
Wondering how much you have left to spend?
Page 2 of Budget vs. Actual Report
Wondering how much you have left to spend?
Example:
Balance: $50,036.55 (from Budget vs. Actual)
Less F&A on encumbrances: $4,500 * .56 = $2,520
= $47,516.55
Finally...$47,516.55 / (1+.56) = $30,459.33
$30,459.33 is the amount of direct expenditures remaining on this project
ANY QUESTIONS
?
Expense Processing
Purchasing Credit CardTravel
Purchasing Card• Purchasing Card Agreement – on Purchasing’s
web site http://www.admin.mtu.edu/acct/dept/pur/purchcard/index.html
• Supervisor approval required• Banner Index must be provided as default –
cannot be a sponsored index• Pick up card from Purchasing – Citizen’s Bank
5th Floor
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Purchasing Card • Credit Limit $4,999.99 (includes shipping)• Supplies• Travel – airfare, car rental, lodging, conference
fees, gas for rental car• No food, meals, entertainment• No personal items• No prohibited items (listed on website)
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Card Holder Responsibilities • Keep all receipts (3 years or 7 years)• Reconcile receipts to monthly statement• Reallocate charges to the appropriate index and
account code• Include who/what/when/where on Visa
Information Management System for travel expenses
• Supervisor must sign monthly statement– Verifying purchases are valid and receipts are on file
Travel • Conference/Registration Fees
– Purchasing Card– Check request
• Transportation– Mileage – current IRS rate of 51 cents per mile– Airline Tickets – Superior Travel
Must complete an Advance of Funds form
– Purchasing Card
Travel
• Lodging – Purchasing Card– Check request - deposits
• Meals – Per diem rates or actual expenses– Standard daily per diem $46/day– IRS Key Cities – higher rates– Return day – standard per diem rate– Actual expenses when hosting non-university personnel
during travel
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Business Meals and Banquet Report
• Must include a valid business purpose• No alcohol• Payee – can reimburse an employee or pay the vendor directly• If paying the vendor, include the vendor in the Name field• Include attendees and affiliations• Include original receipts
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Travel Expense Voucher•Complete within 2 weeks of return
•List purchasing card expenses in appropriate section on voucher
•Reimbursable expenses – expenses not charged to the purchasing card, Superior Travel or paid via check request.
International Travel• Complete an International Travel Request
prior to departure• Approval of department chair• Submit to Office of Risk Management &
Insurance
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Accounting’s Web sitehttp://www.admin.mtu.edu/acct/index.html
Travel policies and procedures can be found under Departments.
ANY QUESTIONS
?
Payroll Forms Determine the distribution of payroll up front by using:
• Account distribution Form• Employee Status Forms• Time override
Payrolls weblink: http://www.admin.mtu.edu/hro/payroll/index.shtml
Human Resources series of presentations:• Getting to Know You• Keeping It All Together• Weblink: http://www.admin.mtu.edu/hro/
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Expenditure Reallocations
Reallocations are sometimes necessary to correct data entry errors found after reviewing monthly account summaries.
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Two types of reallocations:(examples in your handouts)
• Accounting weblink to Expenditure reallocation form:http://www.admin.mtu.edu/acct/pdf/reallocation_of_expenditures.pdf
• Payroll weblink to the reallocation form:http://www.admin.mtu.edu/hro/forms/payrollreallocationform0608.pdf
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Reallocation after 90 Days Expenditure reallocations to sponsored projects after 90 days of the original charge are generally unallowable.
OMB Circular A-133, Federal guidelines for auditors specifically directs auditors to target: “projects that are complete or in the later stages of completion. Frequent, untimely, and poorly documented reallocations can be an indicator of poor internal control”.
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Reallocations necessary and exceptions to 90 day requirement:
Official paperwork for an award is delayed (could request an advance-Handouts):
http://www.mtu.edu/research/administration/sponsored-programs/pdf/advance2.pdf
Charging another sponsored project while waiting for another to be awarded.A semester effort certification is received and there is a problem with the % effort.It is determined that an unallowable expense is charged to the project.When reallocating to another index under the same award.
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Miscellaneous: Justification should always include:
• Why the expense was not originally charged to the correct project.
• How the expenditure relates/benefits the project being charged.
Other to the sponsors and auditors: Reallocations charging one sponsor project to clear a
deficit in another. Reallocations at the end of the project to spend the
remaining balance.
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QUESTIONS?
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