Budget Update October 15, Budget Planning and Development: Mary Simon, Senior Director Tammy Anthony, Assistant Director Elizabeth Bay, Senior Budget Analyst Brenda Clarke, Senior Budget Analyst

AGENDA FMS Commitment Control Update   Budget Overview   Reconciling Items / Issues Outstanding   Detail Accounting Period vs. Detail Budget Period   Educational & General Balances FY 2014   Balance Forwards   Associated Revenues HCM Commitment Accounting Update   Position Funding   Budgetary Funding Tab   Encumbrances   Upcoming Training Classes   Q&A FMS Commitment Control Update   Budget Overview   Reconciling Items / Issues Outstanding   Detail Accounting Period vs. Detail Budget Period   Educational & General Balances FY 2014   Balance Forwards   Associated Revenues HCM Commitment Accounting Update   Position Funding   Budgetary Funding Tab   Encumbrances   Upcoming Training Classes   Q&A

Budget Overview Reconciling Items / Issues Outstanding FY 2014   Transition to the New Fiscal Year resulted in transactions being ‘budget checked’ against Budget Year 2014 versus Budget Year   Majority of journals include Central Office processing. Examples include retro adjustments, automatic reversal adjustments and copied journal entries.   In addition, Purchasing has been working to resolve dis-encumbrance issues related to processing and/or transactions crossing fiscal years.   An Oracle issue related to Travel Encumbrances was identified and has been escalated to UT Share system support.   Transactions with incorrect budget date are impacting Budget Overview - Detail “Budget” Period only. For purposes of reconciling, Departments should continue to utilize Detail Accounting Period.   Central Offices - Accounting, Budget, Disbursements, Purchasing - are working with the consultants to resolve the outstanding issues.   Transition to the New Fiscal Year resulted in transactions being ‘budget checked’ against Budget Year 2014 versus Budget Year   Majority of journals include Central Office processing. Examples include retro adjustments, automatic reversal adjustments and copied journal entries.   In addition, Purchasing has been working to resolve dis-encumbrance issues related to processing and/or transactions crossing fiscal years.   An Oracle issue related to Travel Encumbrances was identified and has been escalated to UT Share system support.   Transactions with incorrect budget date are impacting Budget Overview - Detail “Budget” Period only. For purposes of reconciling, Departments should continue to utilize Detail Accounting Period.   Central Offices - Accounting, Budget, Disbursements, Purchasing - are working with the consultants to resolve the outstanding issues.

Budget Overview Detail Accounting Period vs. Detail Budget Period   As a reminder, for purposes of reconciling accounts, Departments should continue to utilize Detail Accounting Period   As a reminder, for purposes of reconciling accounts, Departments should continue to utilize Detail Accounting Period

Educational & General Balances FY 2014   Budget Office provided year end balance reports to Primary Financial Area Reps for processing budget transfers   E&G remaining balances were transferred, as appropriate   Any E&G negative balances were addressed and cleared   Based on a final review, remaining balances will be transferred   Certain E&G cost center balances will carry balances forward into the new fiscal year such as, VP reserves, GIT & lab fees   Special Items & Research Development Funding will carry E&G balances forward into the new fiscal year; however, these funds must be fully expended next year as FY 2015 is the 2 nd year of the biennium.   Budget Office provided year end balance reports to Primary Financial Area Reps for processing budget transfers   E&G remaining balances were transferred, as appropriate   Any E&G negative balances were addressed and cleared   Based on a final review, remaining balances will be transferred   Certain E&G cost center balances will carry balances forward into the new fiscal year such as, VP reserves, GIT & lab fees   Special Items & Research Development Funding will carry E&G balances forward into the new fiscal year; however, these funds must be fully expended next year as FY 2015 is the 2 nd year of the biennium.

  Prior to recording Balance Forwards, Budget Office will adjust spending authority to match Actual Revenues recorded for FY   Once balances are correctly reflected in Commitment Control, a two part budget journal entry will record balance forward amounts:   Part I: Balances “before encumbrances” will be recorded by cost center   Part II: Balances to cover outstanding encumbrances being brought forward from FY 2014 to FY 2015 by cost center   Controlled Option will be turned on after year end balances are rolled forward   Prior to recording Balance Forwards, Budget Office will adjust spending authority to match Actual Revenues recorded for FY   Once balances are correctly reflected in Commitment Control, a two part budget journal entry will record balance forward amounts:   Part I: Balances “before encumbrances” will be recorded by cost center   Part II: Balances to cover outstanding encumbrances being brought forward from FY 2014 to FY 2015 by cost center   Controlled Option will be turned on after year end balances are rolled forward Balance Forwards

Associated Revenues   Provides automatic spending authority for cost centers with no Original Budgets   All active Gift and Agency funds have been associated for FY 2015   Revenue Association is found on Budget Overview - Detail “Budget” Period for Commitment Control. It will not be found on the Detail Accounting Period.   Please contact for additional cost centers to be associated   Provides automatic spending authority for cost centers with no Original Budgets   All active Gift and Agency funds have been associated for FY 2015   Revenue Association is found on Budget Overview - Detail “Budget” Period for Commitment Control. It will not be found on the Detail Accounting Period.   Please contact for additional cost centers to be associated

HCM Commitment Accounting Update

DBT (Department Budget Table) Position Funding Effective date of DBT for initial funding on new positions should match position effective date Future effective funding changes work “Best”! Retro funding changes – There are many lessons we are learning! Effective dating DBT’s ends the current funding by assigning the new funding with the new effective date. Funding Type: Non-Grant or Grant is used for approval routing The DBT is the funding source for each payroll process The DBT will be the funding source for the encumbrance process Key things to remember Look for our “Key Announcements”… Great source of information Without funding on a paid position the payroll process cannot be completed No DBT required on an existing position if the funding is not changing DBT does not include job or employee data DBT (Department Budget Table) Position Funding Effective date of DBT for initial funding on new positions should match position effective date Future effective funding changes work “Best”! Retro funding changes – There are many lessons we are learning! Effective dating DBT’s ends the current funding by assigning the new funding with the new effective date. Funding Type: Non-Grant or Grant is used for approval routing The DBT is the funding source for each payroll process The DBT will be the funding source for the encumbrance process Key things to remember Look for our “Key Announcements”… Great source of information Without funding on a paid position the payroll process cannot be completed No DBT required on an existing position if the funding is not changing DBT does not include job or employee data Commitment Accounting Updates And Position Funding

Encumbrances Initial Encumbrance process is “Pending Further Testing” The Plan is as follows: All regular salaried filled positions will be encumbered Vacant and hourly paid positions will not be encumbered Encumbrance is by Fiscal Year and/or Contract Pay A nightly process will run to capture daily DBT funding changes Fringe Benefit encumbrances will be implemented at a later date Details of the encumbrances Salary encumbrances in A1000 and A2000 budgetary accounts Liquidation of salary encumbrances after each pay cycle and GL posting Queries/Reports will be developed Encumbrances Initial Encumbrance process is “Pending Further Testing” The Plan is as follows: All regular salaried filled positions will be encumbered Vacant and hourly paid positions will not be encumbered Encumbrance is by Fiscal Year and/or Contract Pay A nightly process will run to capture daily DBT funding changes Fringe Benefit encumbrances will be implemented at a later date Details of the encumbrances Salary encumbrances in A1000 and A2000 budgetary accounts Liquidation of salary encumbrances after each pay cycle and GL posting Queries/Reports will be developed Commitment Accounting Updates And Position Funding

Budgetary Funding Tab in the DBT This section of the DBT is “Information Only” on the position – not the person (i.e. Job) This information is to be used in the Annual Budget Process and for budget reporting throughout the year. We are currently validating the FY2015 Budgeted Amount and Funding Cost Center loaded for permanent positions that converted in May. We will learn more on how this information can be used as we move into our next budget cycle. Budgetary Funding Tab in the DBT This section of the DBT is “Information Only” on the position – not the person (i.e. Job) This information is to be used in the Annual Budget Process and for budget reporting throughout the year. We are currently validating the FY2015 Budgeted Amount and Funding Cost Center loaded for permanent positions that converted in May. We will learn more on how this information can be used as we move into our next budget cycle. Commitment Accounting Updates And Position Funding

“Managing Departmental Expense & Revenue Budgets” Next Class is November 18, :30–10:30 am Downtown FS Contact “Funding Positions” Class Next Class is November 14, :30-3:30 pm in NPB Contact Our goal always is a successful “funding experience” for all! “Managing Departmental Expense & Revenue Budgets” Next Class is November 18, :30–10:30 am Downtown FS Contact “Funding Positions” Class Next Class is November 14, :30-3:30 pm in NPB Contact Our goal always is a successful “funding experience” for all! Upcoming Training Classes

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