PO/Requisition Encumbrance Update Sheri Hardison, Assistant Vice President for Financial Affairs & University Controller Mary Simon, Senior Director for Budget Planning & Development Yvette Medina, Purchasing Business Analyst

Encumbrance Update The Original Problem UTShare used manual roll-forward process to move FY2014 PO open encumbrances to FY2015 Open encumbrance balances were moved to FY2015 by journal entry, but active PO document remains in FY2014 Change orders, closing and sometimes payments on FY14 PO’s causes problems in FY2015 encumbrance balance Encumbrance moves between months Double encumbrances/re-encumbrance may occur Encumbrances may be released in the incorrect fiscal year

Encumbrance Update Where We Are Now Purchasing, Budget and Accounting working together Tested and attempted large scale solutions that caused new problems Requested outside assistance for global solution Processing specific fixes, when possible Each problem is a little different and requires help from all 3 departments

Encumbrance Update FY2015 Close  FY2016 Start High Priority Request to System to use automated rollfoward process in UTShare Will involve campus in identifying what should be rolled forward – stay tuned…

Procurement to Payment Documents flow through Commitment Control to budget check and hold funds for payment. Entries are recorded in ‘ledgers’ sourced by module processing activities from Procurement, Travel and Disbursements ‘Pre-Encumbrance’ ‘Encumbrance’ Requisition Purchase Order Vendor Ships; Sends Invoice Receiving ‘Expense’ Create Voucher Approve; Post Voucher; Process Payment Journal Generate

Encumbrance Scenarios Issue Requested Action Point of Contact Don’t know how to find encumbrance detail (PO #, requisition #, etc.) Budget Overview training – PS205.02 Managing Dept Expense & Revenue Budgets Budget.fms@utsa.edu Encumbrance Amount & Remaining Spending Authority (RSA) is incorrect Obtain PO/req. detail from Budget Overview. Contact Purchasing to verify encumbrance. Purchasing will work with Budget and/or Accounting for a possible solution Purchasing@utsa.edu (If no PO/Req. #, then budget.fms@utsa.edu) Encumbrance has moved in a previously reconciled month and RSA is correct Keep original reconciliation. Make a note on new month’s reconciliation that change was noted but RSA is correct. N/A

Encumbrance Scenarios Issue Requested Action Point of Contact Awaiting correction on encumbrance issue and don’t have adequate RSA Contact Budget to override a specific transaction. Budget.fms@utsa.edu To close a PO and add back the balance to RSA Contact Purchasing. FY2015 will be closed quickly. FY2014 PO’s will be held momentarily. Purchasing@utsa.edu To see the remaining encumbrance balance on a specific PO See next slide.

Encumbrances – See Remaining Balance on a PO… Purchasing  Purchase Orders  Review PO Information  Purchase Orders

Encumbrances – See Remaining Balance on a PO… To see full detailed purchase order encumbrance activity , please follow the Reviewing PO Activity instructional guide.

How to drill down into Encumbrances BUDGET OVERVIEW SCREEN How to drill down into Encumbrances

Budget Overview Main Menu>Commitment Control>Review Budget Activities>Budget Overview

Activity Log

Drill Down

Go to Source Entry

PO Information

In summary, Budget Overview provides drill down ability to view more information on requisitions, purchase orders and vouchers. Requisitions can be found under the Pre-Encumbrance Column Purchase Orders can be found under the Encumbrance Column Vouchers can be found under the Expense Column