Budget Basics UNT Budget Office budget.unt.edu

Agenda Objective Chart of Accounts Budget 101 Chartfield Setup/Change Form ABA IDT Payroll Questions

Become familiar with the tools needed to manage your budget. Objective Become familiar with the tools needed to manage your budget.

Chart of Accounts (COA)

Organization Department Chart of Accounts Chart of Accounts refers to the individual fields that make up a chartstring and their corresponding tree-roll ups. 9 Chartfields – Each field answers a specific question Who’s spending the money How the transaction is being funded Why the money is being spent Chartfield GL Business Unit Organization Department Fund Category Fund Function Project* Program Purpose Site Field Length 5  6  3 6 3   7 4   5 Use Who? How? Why? Where?

Organization Department GL Business Unit GL Business Unit reflects the UNT Component. NT752 UNT Denton SY769 UNT System Chartfield GL Business Unit Organization Department Fund Category Fund Function Project Program Purpose Site Field Length 5  6  3 6 3   7 4   5 Use Who? How? Why? Where?

Organization Department Organization Department represents the academic or operating unit responsible for the transaction. Org Dept Fund Cat Fund Function Project Program Purpose Site 122300 Physics 105 Educational & General 800001 GRD-General 100 Instruction General 1274 Planetarium 134000 College of Music – Gen 805038 State Appropriation HEF 400 Academic Support 160100 Division of Student Affairs 200 Designated Operating Managed 880002 Student Service FFF 500 Student Services 6600 First Flight Week

Fund Category & Fund Fund Category identifies the “bucket” of money. Fund identifies the different types of money within that bucket. Org Dept Fund Cat Fund Function Project Program Purpose Site 122300 Physics 105 Educational & General 800001 GRD-General 100 Instruction General 1274 Planetarium 134000 College of Music – Gen 805038 State Appropriation HEF 400 Academic Support 160100 Division of Student Affairs 200 Designated Operating Managed 880002 Student Service FFF 500 Student Services 6600 First Flight Week

Fund Category & Fund STATE Budgeted Non-Budgeted AUXILIARY RESTRICTED Education & General Fund Cat 105 (106 Project) GRD-General Revenue Dedicated Higher Education Fund (HEF) Core Research Laboratory Fees Budgeted Designated Operating Managed Fund Cat 200 (201 Project) Instructional Fees Student Services Fees Application Fees Recurring External Revenues (Camps, etc.) Non-Budgeted Designated Operating General Fund Cat 202 IDC Funds Non Recurring External Revenues (One time conference speaking fees) AUXILIARY Fund Cat 120 (121 Project) Housing Dining Parking Union RESTRICTED Fund Cats - Various Gifts Grants Endowments LOCAL

Function Function designates the purpose of the expense. Required for federal, state, and other reporting. Determined by NACUBO. 100 Instruction-General 110 Instruction-Sponsored 200 Research-Sponsored 220 Research-General* 300 Public Service 310 Public Service-Sponsored 400 Academic Support 500 Student Services 550 Institutional Support 600 Operations and Maintenance 630 Scholarships & Fellowships 700 Auxiliary Enterprise 850 Capital Projects

Function Org Dept Fund Cat Fund Function Project Program Purpose Site 122300 Physics 105 Educational & General 800001 GRD-General 100 Instruction General 1274 Planetarium 134000 College of Music – Gen 805038 State Appropriation HEF 400 Academic Support 160100 Division of Student Affairs 200 Designated Operating Managed 880002 Student Service FFF 500 Student Services 6600 First Flight Week 135360 Public Administration 303 Restricted Expendable 340305 Schol/Rest H Sumners Public 630 Scholarships & Fellowships

Project The Project Chartfield is used to track sponsored (grants), capital, other non-capital internal, and faculty discretionary activity. When using a project code, the chartstring will include two other fields: PC Business Unit & Activity (Activity should always be 101) Org Dept Fund Cat Fund Function Project PC Business Unit Activity Program Purpose Site 134300 Composition Studies 201 Designated Operating Projects 840002 Faculty Start Up 220 Research Departmental 1600346 Fac NSP-Stout, David NDISC UNT Discretionary 101 12258 iARTA

Program & Purpose Program is used to account for formal institutional programs and initiatives. Purpose is used to account for informal activities. Org Dept Fund Cat Fund Function Project Program Purpose Site 160100 Division of Student Affairs 200 Designated Operating Managed 880002 Student Service FFF 500 Student Services 6600 First Flight Week 163800 Housing Admin 120 Auxiliary Housing 810020 700 Auxiliary Enterprises 13781 Professional Development 1260 Crumley Hall 220600 202 Designated Operating General 885000 Departmental Discretionary 3010 Letterman’s Association 11308 R08- Contributions

Site Site identifies the physical location at which a transaction is occurring. Org Dept Fund Cat Fund Function Project Program Purpose Site 122300 Physics 105 Educational & General 800001 GRD-General 100 Instruction General 1274 Planetarium 163800 Housing Admin 120 Auxiliary Housing 810020 700 Auxiliary Enterprises 13781 Professional Development 1260 Crumley Hall

Examples of Chartstrings Org Dept Fund Cat Fund Function Project Program Purpose Site 122300 Physics 105 Educational & General 800001 GRD-General 100 Instruction General 1274 Planetarium 134000 College of Music – Gen 805038 State Appropriation HEF 400 Academic Support 134300 Composition Studies 201 Designated Operating Projects 840002 Faculty Start Up 220 Research Departmental 1600346 Fac NSP-Stout, David 12258 iARTA 160100 Division of Student Affairs 200 Designated Operating Managed 880002 Student Service FFF 500 Student Services 6600 First Flight Week 163800 Housing Admin 120 Auxiliary Housing 810020 700 Auxiliary Enterprises 13781 Professional Development 1260 Crumley Hall 135360 Public Administration 303 Restricted Expendable 340305 Schol/Rest H Sumners Public 630 Scholarships & Fellowships 220600 Athletic Dev – Gen 202 Designated Operating General 885000 Departmental Discretionary 3010 Letterman’s Association 11308 R08- Contributions

Tips The first five fields are required to create a valid chartstring: GL Business Unit, Org Dept, Fund Cat, Fund, and Function. GL Business Unit Org Dept Fund Cat Fund Function Project Program Purpose Site Balance NT752 UNT Denton 160100 Division of Student Affairs 200 Designated Operating Managed 880002 Student Service FFF 500 Student Services $20,000 6600 First Flight Week $3,000

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Budget 101

vs Chartstring Account What are you buying? Who’s buying it? Chemistry (121200-105-800001-100) Retail Dining Services (163710-120-810030-700) Account What are you buying? (Object of Expense) Salaries M&O Travel vs Chartstring Accounts

Account Tree Rollups Accounts are structured like a family tree. There are levels A-D plus the base level that is composed of all numerical digits, no alphabetical letters. Each level “rolls up” into the level above it.

Account Tree Rollups C5070 Maintenance & Operations D5301 Materials & Supplies 53071 Lab Supplies 53001 Office Supplies D5371 Printing & Reproduction 80151 I/C Copy Services-Exp 53701 Printing Services

2 Types of Chartstrings Projects Departmental Budgetary Funds are generally guaranteed every year. Fund Cats equal to 105, 120, or 200. May or may not roll-forward. Examples: state appropriation, tuition, fees, summer camps, parking Non-Budgetary (NB) Funds are not guaranteed every year. Fund Cats equal to 202 or greater but the chartstring does not contain a Project value. Funds Rollforward. Examples: Gifts, certain goods/services, one time speaking engagements Projects Fund Cats – most common 106, 121, 201 and 400 Chartstrings are identified by whether or not they have a project value. Balances are reported life-to-date. Examples include Grants, Faculty Discretionary (F&A) Funds, & Construction.

Budgetary Chartstrings Budgeting occurs at the D-Level Individual D-account lines should carry a positive balance. Budget checking occurs at the C-Level

Non-Budgetary Chartstrings Budgeting does not occur. The amount in the “Budget” column simply indicates the amount of funds that rolled forward from the prior year. It doesn’t matter if individual account lines are negative as long as the total balance is positive. Budget checking occurs on the chartstring total.

Columns on Report The Actuals, PreEncumbrances, and Encumbrances columns reflect stages of an expense. PreEncumbrances Requisitions Vacant position salaries (not yet paid) Encumbrances Purchase orders Filled position salaries Actuals Paid Vouchers (invoices) Paid salaries

Budget Website > Resources > Documents Helpful Documents Budget Website > Resources > Documents Budget Management Documents 1. Valid Fund Category & Fund Combinations 2. Requisition Category Codes 3. Closing Rules 4. 9.2 Budgetary Accounts 5. Common Terms 6. Common Journal Headers Chartfield Values & Trees

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Chartfield Setup Change Form

Overview A Chartfield Setup/Change Form is used to create or edit an existing field, not an entire chartstring. Creating Chartstrings Chartstrings are “created” once they are transacted on for the first time. Revenue, Expense, ABA, Journal Entry Inactivating Chartstrings Chartstrings are “inactivated” once they carry a zero balance.

Overview Prior to submission, visit the Budget Website to view values that already exist: ● Fund ● Project ● Purpose ● Function ● Program ● Site Once the field is created, the department is responsible for setting up the chartstring. The chartstring will appear in COGNOS within 24 hours of the first transaction posting in PeopleSoft.

Holder Changes Grants – NGRCT Projects All other Holder Changes Contact the Office for Grants and Contracts Administration (OGCA) (i.e. the Research Office) for assistance All other Holder Changes Email the Budget Office. CC the current holder and the new holder Identify the Org Dept Number and Name Include the Name and Empl ID of the current holder and the new holder Indicate the Effective Date

Holder Changes – Example Email TO: Budget.Office@unt.edu CC: Jane.Smith@unt.edu , John.Smith@unt.edu Please update the Org Dept Holder for 151210 Movie Department from Jane Smith(10300001) to John Smith (10400020) effective 09/01/2021.

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ABAs & IDTs

Move specific revenue or expense transactions What’s the Difference? ABA Move funds or budgets Budget Office IDT Move specific revenue or expense transactions Financial Reporting Reminder: The expense should be carried on the chart string to which it belongs

Budgetary Chartstrings IDT Move a specific expense/revenue Remit to Financial Reporting ABA Move Budget Remit to Budget Office

Non Budgetary or Project IDT Move a specific expense/revenue ABA Move Funds

Examples ABA IDT Transfer M&O to Wages Transfer funds from Org Dept to another Org Dept Reduce budget in one Org Dept and increase in another Org Dept IDT Move PCard expenses from one chartstring to another chartstring Move the cost of background checks from one Dept to another Share copier expense

Scenarios Scenario Form Reason $343 in Telecom charges belonging to Police posted to Parking. IDT The expense belongs to the Police Department and should be carried on the Police Department’s books. TIP: Ask Telecom to update their chartstring records to avoid future charges posting incorrectly. The Biology Department purchases $500 of test tubes. Chemistry $200 of those tubes. Biology’s books should only reflect the amount of expense it incurred which is $300. Chemistry’s books should reflect $200. Use an IDT to split the expense. TIP: Split the expense on the front end when submitting the requisition or coding the Pcard charge CVAD is hosting an event in March. The Provost’s office is giving $800 to cover the cost of the event’s guest speaker. ABA The expense belongs to CVAD and should be carried on CVAD’s chartstring. The Provost’s Office is simply supporting the event.

Automated Budget Authorization ABA Automated Budget Authorization

How to complete an ABA The signatures on the ABA must reflect the department transferring the funds, not the department receiving the funds. Always include a description to help prevent errors or delays. An Account is REQUIRED.

Selecting an Account FROM: TO: Budgetary Chartstring – REVENUE Enter the 4XXXX or 6XXXX account Budgetary Chartstring – EXPENSE Enter the D-Level Account Non-Budgetary or Project Chartstrings Enter 70001 TO: Non-Budgetary or Project Chartstrings Enter 70003 Budgetary Chartstrings are those whose FC = 105, 120, & 200 *Informational Note: If balances move between two different Funds then the transfer will appear on both the D-Level and on the 7000X accounts.

Permanent vs. One-Time Transfers Applies to Budgetary chartstrings only Permanent – Funds are permanently transferred to a new chartstring One-Time – Funds are not permanently transferred. This is the default on ABA requests.

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Interdepartmental Transaction IDT Interdepartmental Transaction

Overview of the IDT PURPOSE OF AN IDT To transfer revenue or expenses from one department to another To purchase goods or services from another department To correct the account where a revenue or expense was recorded

Overview of the IDT IDT LIMITATIONS Expenses arising through Payroll and Purchase Orders should be corrected using the original method of payment. TIMING IDTs can only be submitted once the invoice has been received or the revenue has posted. IDTs cannot be submitted on encumbered balances.

Overview of the IDT WHO INITIATES THE IDT? WHO SIGNS THE IDT Generally, the Pay To or Charge To Department may initiate the IDT. IDT’s that pay service centers for services must originate from the Pay To department (Copy Center, Mail Services, Catering, etc) WHO SIGNS THE IDT The “Charge To” Department must sign the IDT. Exception: Services originating from service centers do not need to be signed by the “Charge to Dept.” For Sponsored Projects, OGCA approval is required.

IDTs - Other Names Interdepartmental Order (IDO) Interdepartmental Transfers goods/services between departments Uses Internal GL Accounts: Revenue (6XXXX) and Expense (8XXXX) Interdepartmental Expense Transfer Corrects expense transactions that have occurred Uses Expense Accounts: (5XXXX to 5XXXX) or (8XXXX to 8XXXX) “Swap 5s” Correction must include original voucher number, purchase order number or journal number Revenue Reallocation (IRR) Corrects revenue transactions that have occurred Uses Revenue Accounts: (4XXXX to 4XXXX) or (6XXXX to 6XXXX) “Swap 4s”

Elements of the IDT

Elements of the IDT Account Charge To Deliver To Select a General Ledger Account, not a budgetary account See FIT Website Department to which the goods/services are being delivered Department whose net balance will be decreased Account Deliver To

Elements of the IDT Account Pay To Department whose net balance will be increased Select a General Ledger Account, not a budgetary account See Budget Website Pay To Account

Elements of the IDT Justification or Business Purpose Should reflect the nature of the transaction and include enough detail for the Controller’s Office to verify that the transaction has been coded appropriately Expense transfers must include the original purchase order or voucher number associated with the transaction and dollar amount Justification (cont’d)

Elements of the IDT Itemization The items purchased or being transferred should be itemized in this section Itemization

Elements of the IDT Signatures OGCA Approval The signature of the DEPTID holder that will be charged must be included If a sponsored chartstring is listed (i.e. a grant, NGRCT project) then OGCA must approve OGCA Approval

Selecting the Account For Expense Transfers or Revenue Reallocations To find which account the transaction posted to, drill into the Cognos Budget Summary Report (or run the Cognos Transaction Detail Report). Refer to the “Account” column. The account will be a 5-digit number (no alpha characters). To determine which account the transaction should move to, typically select the same account the transaction posted to. However, if the account is incorrect then refer to the Account list on the Budget Website.

How to select which chartstring to debit or credit IDTs are an accounting transaction, not a budgetary transaction. Debits and credits in Accounting are different than in Budget. When completing the IDT (not an ABA) refer to the chart below. Increases Expense Decreases Revenue Net Balance Decreases Debit (CHARGE TO) Decreases Expense Increases Revenue Net Balance Increases Credit (PAY TO)

IDT Tips An IDT is used to move a specific transaction, not a balance Backup support must be included. For example, receipts should add up to the amount as shown on the face of the document or items clearly marked as requested total the amount on the face of the document. Cognos detail is acceptable backup Remit questions or the completed form to: FRO_Cash&CampusAcctg@untsystem.edu

Common Scenarios Scenario 1. Department A purchases copy services from the Copy Center Charge To: Department A, account 80151 I/C Copy Services-Exp (Debit) Pay To: Copy Center, account 60151 I/C Copy Services-Inc (Credit) Scenario 2. Department A incorrectly records gift revenues to the Advertising Revenue account Charge To: Department A, account 45005 Advertising Revenue (Debit) Pay To: Department A, account 47601 Contributions-Donations (Credit)

Common Scenarios Scenario 3. Department A purchases supplies for all instructional areas and they share in the cost Charge To: Department B, account 5XXXX (Debit) Pay To: Department A, account 5XXXX (Credit) TIP: Avoid completing an IDT by splitting the expenses at the onset when entering a requisition; or, by splitting the expenses when coding PCard charges.

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HRM-4s and ePars Staff Positions

HRM-4s and ePars HRM-4 ePar About the Position Paper About the Person Electronic

HRM-4s HRM-4s are used to update the information on a position. Not required for Faculty positions paid from D5010 A HRM-4 is used for: ● Requesting a new position ● Salary changes ● Reclassifying a vacant position ● Overlaps ● Replacements (Rehire) ● Funding changes ● FTE changes ● HR Department changes

HRM-4s When completing the HRM-4, verify that the HRM-4 reflects the changes you want to make – not what the position currently is. Please indicate the changes you want to make in the comments section of the HRM-4.

HRM-4s If a position is moving from one department to another, indicate on the HRM-4 if the funding is moving with the position. The offer letter must be at or below the amount on the most recently approved HRM-4 or a new HRM-4 will be required.

HRM-4s Compensation plans by job code are available on the System HR website. Each compensation plan is split into quartiles. HRM-4 approval requirements vary based on where the requested salary falls within the quartiles.

HRM-4s Salaries less than Q2 Salaries equal to Q2 and less than Q3 Required Approvals Salaries less than Q2 Dept Head Budget Office Salaries equal to Q2 and less than Q3 Dean/AVP Salaries greater than or equal to Q3 Area VP *These are the minimum requirements. Departments/Colleges may have additional approval requirements.

HRM-4s Min (Q1) Q2 Mid (Q3) Q4 Max $30,000 $33,000 $36,000 $39,000 Example of Quartiles Min (Q1) Q2 Mid (Q3) Q4 Max $30,000 $33,000 $36,000 $39,000 $42,000 Salary < Q2 ● Dept Head ● Budget Office Up to $32,999 Q2 ≤ Salary < Q3 ● Dean/AVP $33,000 to $35,999 Salary is ≥ Q3 ● Area VP $36,000 or greater

Electronic Payroll Action Request ePAR Electronic Payroll Action Request An ePAR is used to update the information on an employee. An ePAR is used to: Hire a person Terminate a person Transfer a person to a different position TIP! Verify that the amount and the funding chartstring match what was submitted on your HRM-4. If the amount is more, or the funding string is different we might ask you to submit a new HRM-4.

Helpful Info Budget Office Provost Office Career Center Payroll/HR Who processes HRM-4s and ePars? Budget Office Salaried Staff Positions Provost Office Salaried Faculty Positions Career Center Student Hourly Employees Payroll/HR Non-Student Hourly Employees

Salary Savings Salary Savings are created by position changes Salary Savings are accumulated for staff salaries on the Fund Category - Fund combinations below: Fund Cat Fund Description 105 800001 State 805001 200 830001 Designated Tuition

Permanent Temporary Salary Savings Salary Savings must be applied in the fiscal year earned. Generally, savings may not be rolled forward. Savings are swept to central funds at the end of the year. Two types of salary savings: Permanent Temporary The terms “Permanent” and “Temporary” refer to the types of expenses the savings may be applied to.

Permanent Salary Savings A position is ended A position is reclassed down A position that was encumbered above entry hires someone at a lower annual salary Obtained When Fund equity increases Hire someone over entry Fund a new position Reclass a current position Can Be Used To

Temporary Salary Savings A position is vacant For example if you have $24,000 budgeted for a position that is vacant, every month $2,000 is getting swept to salary savings. Obtained When Lump sum vacation payouts Comp time/over-time payouts Temporary employees Overlaps Can Be Used For Tip! Think of “temporary” salary savings as “one-time-use” funds. The Vacant position will eventually be filled and the salary savings will end. For this reason temporary salary savings cannot be used to fund permanent uses such as new positions, positions over entry, or equity increases.

Example Jane is making $42,000 annually. Jane retires. The position is reset to entry, and is vacant for 3 months. Entry level for Jane’s position is $30,000. PERMANENT SAVINGS There will be $12,000 in permanent salary savings. $12,000 = $42,000-$30,000 TEMPORARY SAVINGS There will be $7,500 in temporary salary savings. $7,500 = ($30,000/12) x 3

Other Information If an employee is terminated the system automatically resets the position to entry. If an employee transfers to another position the position salary is not automatically reset to entry. The position will stay encumbered at the current rate until a HRM-4 or an ePar is processed to change it.

Payroll Encumbrances and Pre-Encumbrances The salary for filled positions are encumbered Every month 1/12th of the salary disencumbers (shows as a negative in the encumbrance column) and the salary is charged as an expense (shows as a positive in the actual column). The salary for vacant positions are pre- encumbered Every month 1/12th of the salary is dis-pre-encumbered (shows as a negative in the pre-encumbrance column) and a salary savings journal is done which moves it from the budget into salary savings (shows as a negative in the budget column)

Encumbrances & Pre-Encumbrances Journal Description Budget Actual PreEncumb Encumb October Salary Savings* (3,000) Payroll 2,000 Pre-Encumbrance Encumbrance (2,000) September 9/1 Payroll Encumbrance 24,000 9/1 Payroll Pre-Encumbrance 36,000 FY18 Original Budget 60,000 *Salary savings only apply to 105-800001, 105-805001 and 200-830001

Residual & Negative Encumbrances If there are any residual encumbrances that do not dis- encumber, or a negative encumbrance please let the Budget Office know. It could be something in the system or it could be that the department needs to process an ePar. These are handled on a case by case basis.

Fringe Benefits Fringe Benefits are payroll related costs that show up under account D5050. Examples include Payroll Tax Expense, Unemployment Benefits, TRS, OASI, Group Insurance Longevity Pay (50401) is a fringe benefit carried on D5031. BRP is a fringe benefit that shows up on the same account as the employee’s salary (ex 50101, 50143).

Fringe Benefits Fringe Benefits are covered centrally for the following: The expenses will post to these chart strings and then a budget entry will be recorded to cover those expenses. Fund Cat Fund Description 105 Any State 200 830001 Designated Tuition

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