1. How to budget & buy at Cal Maritime… Vineeta Dhillon 707.654.1086 dhillon@csum.edu

2. Agenda Credit Card Purchasing Thresholds Purchasing Requisitions Insurance Requirements Office Supplies Business Cards Toner Cartridges Direct Pay / Employee Reimbursement Car Rental

3. PeopleSoft Chart fields : Funds, Departments, Accounts, Class Codes & Scenario's These are the primary chart fields of the Budget and Actual Ledgers within the financial system of PeopleSoft. This data Must be entered by managers on all expense requests/documents to be processed by members of the financial services team.

4. Chart field labeling for transactions. Write chart fields on document in following order Account – Fund - Department – Class/Scenario Actual ledger example: 660003-45100-43000- Class. Budget ledger example: 660003-45100-43000–revision1 $500 660037-45100-33000–revision1 ($500) Why is it important to use the correct account number on expense requests?

5. Funds & Departments Number does not change with new fiscal year. Assigned by Fiscal Services. The General Operating Trust fund is 48485 See list provided by Accounting of commonly used fund & Dept ID numbers for FY2010/11

6. Accounts Six character code to Identify type of transaction. – Revenues account codes start with a five (e.g. 506100) – Expense account codes start with a six. (e.g. 660001) Maritime has over 200 accounts codes available for use. See list provided by Accounting of current Revenue & Expense Accounts. – Why is it important to use the correct account number on expense requests?

7. Class Codes Available 5 digit chart field used to identify a group of expenses within a Fund with a common theme that a department may need to track or report. In 2010/11 Departments will be allowed to identify up to ten CLASS codes for use. Departments will be responsible for ensuring the class code is provided to label the expenses posted by AP, as this is not a required accounting field. Example: Class code can be set up in the HR Dept ID to identify costs specific to diversity initiative.

8. Budget Scenario’s General Operating Trust - 48485 – “Initial” scenario identifies permanent budget transactions that show in the original budget column on the MAGL024 department budget summary. – “revision1” scenario identifies one-time budget transactions that show in the adjustments budget column. Grant Trusts – “PTD” Project-to-Date scenario identifies permanent budgets for Grant trusts. – “PTD Rev” is the one-time revision scenario for Grants CMA Trusts – “ITD” Inception-to-Date scenario identifies permanent budgets – “ITD Rev” is the one-time revision scenario for CMA trusts

9. Purchasing & CCP Card Processes Authorized use of CCP Card Unauthorized uses for CCP Card Purchasing authority to commit CMA to vendor/purchase agreement. Required use of Purchase order – Expenses over $2,000 – Contracted Services/ Independent contractor – Equipment. Requisition Form - required information and attachments. Timeline for issuing POs. Different types of POs

10. Accounts Payable Invoice /Check Processing. Statute & Policy Approvals Forms & Process Timelines/days checks are issued.

11. Travel Overview Statue & Policy Use of CCP and AMEX for travel expenses. Car rental state contract Travel approval CMA Forms Per Diem Rates Travel documentation requirements Tips that result in a timely reimbursement.

12. Grant Issues Budget Development & Revisions Timely posting of expenses Grant travel: Domestic vs Foreign. Purchasing: sole source, equipment, independent contractors, Faculty Buyout salary JE’s F&A Costs Time and effort reporting Conflict of interest Program Reporting Fiscal Reporting & Sponsor Invoicing.

13. Internal Invoicing and Chargebacks Internal invoicing is when one CMA department is invoicing for reimbursement from another CMA department. Policy governing Chargebacks are: – SAM 8752 Full Cost Recovery Policy – EO 753 Allocation of cost to Auxiliary enterprises – EO 847 Policy on Facility maintenance. – CMA General Fund Cost Allocation Plan

14. Requesting Accounting Issue Invoice Backup documentation to Invoice must indicate charges are appropriate under General Fund Cost Allocation plan and/or CMA policy. Submit backup documents to accounting manager including: – Pre-aproval by department to be invoiced; – Amounts to be charged; – Indicate chart fields

15. What is a Budget? Management plan for meeting probable expenses for a given period. Serves as a measuring stick to match anticipated and actual revenue and expenditures. Tool to keep expenditures within the budget established for the operation.

16. How to Successfully Manage a Budget Know the mission of the budget unit. Understand personnel costs (including benefits). Review the fiscal reports monthly. Recognize when and event has caused a budget issue when it happens and take action. – Know when the event can be absorbed in the department allocation and when it is necessary to ask for additional funding from help from the next level up. Remember: a budget is only a tool, and will likely require revisions as the year progresses based on actual events vs. planned events.

17. Budget Review Assistance Mid-year budget reviews would provide opportunity to; 1. Revise budget based on new priorities, unplanned events, and expense-to-date. 2. Make adjustments to OE based on personnel cost obligations. 3. Execute budget revisions and/or expense transfers. 4. Project how the budget vs. actual will look on June 30th.

18. Questions, Comments, Requests. Thank You