Company LOGO Best Practices Boise State University Budget Office

Goals for Training 1. Understand Basic Budget Building 2. How to Monitor OE, Travel & Capital Budgets 2. How to Monitor OE, Travel & Capital Budgets 3. How to Monitor Payroll Budgets 4. Understand End of Year Processes

For Profit vs. Government For Profit  Revenue – Expenses = Net Income  Maximize Profit Government  Resources Received = Resources Used  Efficient & Effective Use of Resources

Boise State University

Financial Reporting Fiscal Year Program Type DepartmentAccount FY 2008 July 1, 2007 To June 30, Digit Alpha-Numeric 909A Digit Numeric Asset Liability Revenue Expense Fund Balance Associated with Department General description of activity

Fiscal Year 12-Months July 1 to June 30 FY 2008: July 1, 2007 – June 30, 2008

Program Types / Activity Type  Program 01: Instruction  Program 04: Research  Program 06: Public Service  Program 07: Library  Program 08: Student Services  Program 09: Physical Plant  Program 10: Institutional Support  Program 11: Academic Support  Program 12: Auxiliary Enterprises (Athletics)  Program 13: Scholarships

Program Types / Activity Type

006 A Department Anatomy of the Department ID Department identifier Fund Source A = Appropriated L = Local G = Grant Section/Unit Identifier Format: Alpha Numeric B i o l o g y 1 = Main Campus 2 = BSU West

Accounts  6 Digit Numeric  “Buckets”  3***** = Revenue  4***** = Personnel Costs  5***** = OE & Travel (53****)  6***** = Capital  9***** = Fund Balance

Budget Rollup Accounts Regular Salary Part-Time/Irregular Salary Student Salary Fringe Benefits Operating/Other Expenses Travel Capital Outlay

Types of Financial Statements  Income Statement  GL Department Detail Report  Balance Sheet  Etc.

Users of our Financial Statements  Departments  Deans / VP’s / Provost / President  State Board of Education  Governor / Legislature  Lending institutions  Auditors

Uses of Financial Statements  Track progress towards goals  Compare Actual with Plan/Budget  Communicate  Modify behavior  Assess financial condition  Assist in evaluating efficiency and effectiveness

Why do we have Budgets?  Control spending  Monitor progress & modify spending  Communicate  Required

Kinds of Budgets  Appropriated  General Fund (taxes)  $80 million Budget  Tuition  $47 million Budget  ***A****** Departments  Local & Auxiliary  Other Student Fees  User Fees  F&A  Transfers from Foundation  $26 million Local Budget  $61 million Auxiliary Budget  ***L****** Departments

Appropriated Budget Process

BSU Budget Process JULY: Budget effective AUG: Submit Budget Request to SBOE DEC: Annual Planning Documents MAR: Local Budget Templates MAR: JFAC & SBOE sets Budget MAY: BSU sets department budgets

Local Budgets  Budget = a plan or estimate  Most common meaning for business  Budget is not a guarantee  No budget transfers  Annual budget preparation: March – May  Separate budget book  Look at the bigger picture ** ** Think of: Fund Balance = Spending Authority

Why Budget Local Departments?  Required to submit Local Budgets to the State Board of Education  (For FY budgets sent out, 648 returned 75%)  Estimate activity  Ensure strategic plans are met  Make better planning decisions  Gives you something to compare current activity against

How does a Local Budget work with the Fund Balance?

Auxiliary Budgets  Auxiliary Enterprises are essentially self- supporting per SBOE policy  Annual budget preparation: March - April  Information for budget preparation  Projected enrollment  Salary and payroll expense  Utilities  Administrative Service Charge  Separate budget book

Auxiliary Budget Overview  16 Auxiliary Enterprise Departments  FY08 Revenue = $61,315,648  FY08 Expense = $61,260,842  FY08 Total Employee FTE =

Auxiliary Budget Revenue

Appropriated Budget  Annual Planning Documents  Request additional budget for upcoming fiscal year.  Used to plan for the next years budget request  Planning  Communicate  Approved New Budget is communicated to department through VP or Provost

Appropriated Budget Book  Distribution  Lists $$ support from State and from Students  Lists permanent budget for each appropriated department

One-time vs. Permanent Budget  Permanent transfers increase or decrease the next years original budget (base) as well as this years budget  One-time transfers only effect the current year’s budget

Budget Transfers  Allowable Budget Transfers  Clearing Budget Errors  One error holds up the entire journal entry  Budget Transfer Form  Appropriated Only  Correct signatures  Plan ahead – remaining fiscal year  Not just one pay period at a time

Monitoring OE, Travel & Capital  Reports  Department Detail Report  Department Summary Report  Appropriated Budget Summary  Budget Overview  DDR Query & Pivot Table

Monitoring OE, Travel & Capital  DDR Query & Pivot Table  On-line instructions:  Pros and Cons of using DDR Query  Additional entry information  Entry signs are ‘reversed’  No budget information  Examples:  Single DeptID – 12 months side-by-side  Single DeptID – 3 Years side-by-side  Multiple DeptIDs – side-by-side

Monitoring OE, Travel & Capital  Local & Auxiliary  Fund Balance  What to look for on reports  No deficits in fund balance  Budget  What to look for on reports  No budget transfers  Except for: Auxiliary, computer labs, & a very few others

Monitoring OE, Travel & Capital  Appropriated  Budget  What to look for  No deficits in budget  Allowable Budget Transfers  One-time vs. Permanent  Timing of transfers

Monitoring OE, Travel & Capital  Tracking – Folders and Spreadsheets  Folders for  Open Payments  Pending Invoices  Pending P-Card  Pending Deposits  Posted Expenses  Posted Revenues  When picking an account  Be Specific, Reasonable & Consistent  Examples: Non-employee travel is OE

Folders - Example

Folders I’m going to purchase MS Project with my P- Card. Cost is about $100.

Folders I’m going to purchase MS Project with my P-Card. Cost is about $100. Memo: Acct: Desktop Software

Folders Memo: P-Card “Statement”: $ Office Max Code to Desktop Software Match Memos to P-Card “Statement”

Folders Memo: P-Card “Statement”: $ Office Max Code to Desktop Software Place in Pending P-Card Folder

Folders Place in Pending P-Card Folder Memo & P-Card “Statement”

Folders Match P-Card Statement to PeopleSoft Memo & P-Card “Statement” Department Detail Report: OE Desktop Software P-Card Wargo

Folders File in Posted Expenses Folder Memo & P-Card Statement Department Detail Report: OE Desktop Software P-Card Wargo

Folders File in Posted Expenses Folder – Keep 5 years Detail Report P-Card Statement Memos

Folders Department Detail Report: OE Minor Tools Home Depot $ ? ? ? DDR query. Call AP (if source document is AP) or Accounting to get more information.

Folders Department Detail Report: ? Call AP (if the source document is AP) or Accounting to get more information. Invoice Copy $ Office Solutions

Reconciliation Workbook  Advantage of folders:  Tracking expenses from your office to PeopleSoft  Example  Advantage of Workbook  Tracking permanent vs. one-time budget

Monitoring Payroll  Reports & Tools  Payroll Expense Distribution Report  Example  Payroll query from Business Manager

Budget Position Action Request (BPARs)  Main focus is on the position  Submit BPAR if requesting permanent new position  Must have APPROVED funding  Permanent Budget (transfer if Appropriated)  Approved Supplemental Funding Request (SFR) form if funded by an appropriated department  Other reasons for submitting BPARs  Academic Areas  Must have Department Chair, Dean & Provost signatures before submission to the Budget Office  Non-Academic Areas  Must have Director & Vice President signatures

Employment Action Forms (EAFs)  Main focus is on the employee  Submit EAF for reappointment if:  funded by grant  for temp employee,  change in salary, term, title  Importance of submitting EAFs in a timely manner  If late, creates payroll corrections & could delay first paycheck  Effective Dates  Contract Dates/Working Dates

Prorated Salaries  Prorated Salaries  Employees working less than 12 months  Example

Who Funds Salary Changes?  Faculty & Professional  Classified

Appropriated Salary Savings  What is Salary Savings?  Salary savings occurs when there is a vacancy in a permanent PCN that is funded by an appropriated department

Appropriated Salary Savings  Items needed for salary savings request  Budget Book  GL Detail  Budget Salary Ledger Query (provided by your Business Manager)  Pivot Table Example  Department Salary Summary by PCN Template (will be provided by the Budget Office upon request)  Request for Use of Institutional Salary Savings Form  Has to be directly related to a PCN  Timing of contracts can impact salary savings

Appropriated Salary Savings  How do I figure out the amount of the salary savings?  Department Salary Summary by PCN Template  Request for Use of Institutional Salary Savings  Will be reviewed by Budget Office

End of Year Processes  Carryforward  Sweep  Timing  Permanent Budget for payroll (July Payroll Errors)  Behind the Scenes Budget Transfers  STARS Cutoff

Additional Training Opportunities  Budget & Accounting Drop-in Sessions  Tue October 16, am  Tue November 20, am  PeopleSoft Training  October 10, am – noon  Call Suzy White x  Let’s Talk – Account Codes  October 24 11am