1. Funds (Huh!): What are they good for! - IUG 2008 Innovative Users Group 2008 Annual Conference Washington, D.C. Corey Seeman Kresge Business Administration Library University of Michigan http://mblog.lib.umich.edu/~cseeman Funds (Huh!): What are they good for!

2. Funds (Huh!): What are they good for! - IUG 2008 Program Overview What Are Funds Used For? Three Little Letters Funds and Reports Pulling it together (Fiscal Close) Case Studies Resources

3. Funds (Huh!): What are they good for! - IUG 2008 What Are Funds Used For? Presentation Goals: –Provide an overview of fund codes and how they work in the Acquisition system –Showcase means to expand and improve initial implementation. –Provide some ‘Case Studies’

4. Funds (Huh!): What are they good for! - IUG 2008 What Are Funds Used For? Assessment Questions: –Does your system give you the reports you need? –Does your system give you the reports you want? –Do you have to implement workarounds? –Do you have manual processes with the system

5. Funds (Huh!): What are they good for! - IUG 2008 What Are Funds Used For? User Manual 100706 & 103038 # of Funds in the system: –750 Fund Codes –You may purchase an additional 750 Purpose of a fund –Accepts appropriations, expenditures and encumbrances –Connects a purchase with the desired account –It is the DNA of the financial tracking element of acquisitions

6. Funds (Huh!): What are they good for! - IUG 2008 What Are Funds Used For? Other considerations –Funds can provide granularity of financial reporting desired by the library (fine-tune the materials budget) –There are no automatic reports –They can be as complex as you need/want/desire them to be

7. Funds (Huh!): What are they good for! - IUG 2008 Three Little Letters What Three Letter Phrase Helps here? –DNA? –OMG? –LOL? –WTF? GCF (Greatest Common Factor) –90 = 5 x 3 x 3 x 3 x 2 –60 = 5 x 3 x 2 x 2 –GCF = 30 (5 x 3 x 2)

8. Funds (Huh!): What are they good for! - IUG 2008 Three Little Letters Why think about GCF (Greatest Common Factor)? CGF establishes the Greatest Common element among different numbers Can apply this thinking to different constituents in the library: –Technical Services/Acquisitions –Selectors –Administrators / Governing Bodies

9. Funds (Huh!): What are they good for! - IUG 2008 Three Little Letters - Constituent Needs Constituent Needs for Financial Reporting - THE CRITICAL ELEMENT WHEN SETTING UP FUNDS! If this does not serve all three –Then it will not be effective for financial management –It will require additional backup or shadow systems –It will actually create more work for people in the library

10. Funds (Huh!): What are they good for! - IUG 2008 Three Little Letters - Constituent Needs Technical Services/Acquisitions –Place the orders (selecting funds) –Pay invoices –Manage the money (materials budget) Selectors –Choose items for the collection –Need to know what they have spent –Need to know how much they can spend

11. Funds (Huh!): What are they good for! - IUG 2008 Three Little Letters - Constituent Needs Administrators –Need to know the bottom line, but might be interested in discipline/material expenditures –Need to assess (at the highest level) and track materials expenditures for budgetary purposes Governing Bodies –Need to know the bottom line –Need to ensure fiscal responsibility –Do not care (typically) for the details

12. Funds (Huh!): What are they good for! - IUG 2008 Three Little Letters - Constituent Needs If you can figure out what the needs are for the constituents: –You can create better funds –Establish logical External Funds –Create reports that are useful for all –Get rid of shadow tracking systems* Ultimately - you can allow the system to serve financial and collection development functions (not the same)!

13. Funds (Huh!): What are they good for! - IUG 2008 Funds and Reports What do Funds look like? Where do they fit into the big picture?

14. Funds (Huh!): What are they good for! - IUG 2008 Funds and Reports

15. Funds (Huh!): What are they good for! - IUG 2008 Funds and Reports

16. Funds (Huh!): What are they good for! - IUG 2008 Funds and Reports System fund How the System Sees your Funds!

17. Funds (Huh!): What are they good for! - IUG 2008 Funds and Reports

18. Funds (Huh!): What are they good for! - IUG 2008 Funds and Reports How does the system organize these? Two basic ways: –External Funds –Groupings (Hierarchies)

19. Funds (Huh!): What are they good for! - IUG 2008 Funds and Reports External Funds Ideal way to match governing body funds with Innovative system funds Default value is “0” Reports totals during Invoice Processing (posting) However - does not present information in reports

20. Funds (Huh!): What are they good for! - IUG 2008 Funds and Reports See users manual Page # 105099 Slow Cooker Rule - Set it and Forget it!

21. Funds (Huh!): What are they good for! - IUG 2008 Funds and Reports When the invoice is posted - the total for each invoice is provided and broken down by External Funds Also see the manual Page # 102921

22. Funds (Huh!): What are they good for! - IUG 2008 Funds and Reports Groupings (Hierarchies) Also known as Financial Reports You can view files in Milacq and Web Management Reports Can be setup for all constituents: –Tech Services/Acquisitions –Selectors –Administrators/Governing Body

23. Funds (Huh!): What are they good for! - IUG 2008 Funds and Reports System fund How the System Sees your Funds! Fund Attributes Blue - Selector A (Alvin) Brown - Selector B (Barry) Green - Selector C (Corey) White - Books Maize - Electronic Resources

24. Funds (Huh!): What are they good for! - IUG 2008 Funds and Reports - by Selector System fund MATERIALS BY SELECTOR ALVIN FUNDS (BLUE) BARRY FUNDS (BROWN) COREY FUNDS (GREEN)

25. Funds (Huh!): What are they good for! - IUG 2008 Funds and Reports - by Selector System fund MATERIALS BY SELECTOR ALVIN FUNDS (BLUE) BOOK FUNDS (WHITE) ELECTRONIC RESOURCES FUNDS (MAIZE) Variation on the materials by selector report Reports can be built to the desired specificity Reports total information based on each level or hierarchy

26. Funds (Huh!): What are they good for! - IUG 2008 Funds and Reports - by Material Type System fund MATERIALS BY MATERIAL TYPE BOOKS (WHITE) ELECTRONIC RESOURCES (MAIZE)

27. Funds (Huh!): What are they good for! - IUG 2008 Funds and Reports - by Material Type System fund MATERIALS BY MATERIAL TYPE ELECTRONIC RESOURCES (MAIZE) Variation on the materials by selector report Reports can be built to the desired specificity Reports total information based on each level or hierarchy ALVIN (BLUE) BARRY (BROWN) COREY (GREEN)

28. Funds (Huh!): What are they good for! - IUG 2008 Funds and Reports - General Thoughts Users Manual Page 105788 Lack of Default or Canned Reports Be careful of missing funds in the reports Create at least one report that matches external needs USE ALL CAPS FOR GROUPINGS

29. Funds (Huh!): What are they good for! - IUG 2008 Funds and Reports - General Thoughts General Thoughts on “granularity” It should be as granular as YOU NEED! Do you need to keep this information? Firm vs. Approval? Grocery Shopping: –Grocery List / Impulse Purchase / Stock-up / Sale –Dinner / Lunch / Breakfast / Snack –Pam / Corey / Jeremy / Christopher Do we really need this broken down??

30. Funds (Huh!): What are they good for! - IUG 2008 You and Your Reports No canned reports* Totals Here Mean NOTHING!!

31. Funds (Huh!): What are they good for! - IUG 2008 You and Your Reports

32. Funds (Huh!): What are they good for! - IUG 2008 You and Your Reports

33. Funds (Huh!): What are they good for! - IUG 2008 Putting it all together Introduction to fiscal close –How they all fit –3 basic models –Many variations –Always defer to your governing body

34. Funds (Huh!): What are they good for! - IUG 2008 See: User Manual #102936 “use or lose” finances, Method One – Library keeps only one set of funds (i.e., books). - Most Common Method If you keep money you do not spend during the fiscal year, choose one of these two methods: Method Two – Library keeps two sets of funds: Current Year and Previous Years. Method Three – Library keeps a separate set of funds for every fiscal year in the system. System minimally supports 750 Pulling it together (Fiscal Close)

35. Funds (Huh!): What are they good for! - IUG 2008 Fiscal Close Method One TY Reports LY Reports TY Reports (new) Acquisition Records & Funds Financial Activity 04-05 Funds Order Records Funds Order Records Encumbrances Expenditures AppropriationsAppropriations* Financial Activity 05-06 Financial Reports 05-06Financial Reports 04-05

36. Funds (Huh!): What are they good for! - IUG 2008 Things not to Sweat for Method One “Circle of Life” Orders placed in late May and June rarely get paid in that fiscal year. Encumbrances can carry forward. Will be OK at most places where it is tagged to the year when it is paid. You start the year with some extra encumbrances, but you will have that cushion at the end.

37. Funds (Huh!): What are they good for! - IUG 2008 Fiscal Close Method Two TY Reports LY Reports TY Reports (new) Acquisition Records & Funds Financial Activity 04-05 TYFunds & PYFunds Order Records TYFunds & PYFunds Order Records TY Encumbrances PY Encumbrances TY/PY Expenditures TY/PY Appropriations Financial Activity 05-06 Financial Reports 05-06Financial Reports 04-05 TY Encumbrances PY Encumbrances Cash

38. Funds (Huh!): What are they good for! - IUG 2008 Fiscal Close Method Three FY04 Reports Acquisition Records & Funds Financial Activity FY05 Funds FY04 / FY05 Order Records Funds FY04 / FY05 Order Records Encumbrances Expenditures Appropriations Financial Activity FY06 Financial Reports FY06Financial Reports FY05 Encumbrances Funds FY06 (new) FY05 Reports FY04 Reports FY05 Reports FY06 Reports

39. Funds (Huh!): What are they good for! - IUG 2008 Now what? Some Case Studies Case 1 - Too much money in one fund Case 2 - When to change funds? Case 3 - Want to setup year by year funds, but they have use or lose finances Case 4 - What about things that I spend outside the current funds?

40. Funds (Huh!): What are they good for! - IUG 2008 Case 1 - Too much money in one fund Kresge Library Edb (Electronic Databases) $700,000 of our $1,000,000 budget 70% does not give us the real control over what is being spent No real rule of thumb - what do you want Goal: Break it up into separate funds

41. Funds (Huh!): What are they good for! - IUG 2008 Case 1 - Too much money in one fund Steps Add funds (do not need to mirror all the existing funds for monographs and serials) –Fin/b - Finance/books –Fin/o - Finance/other –Fin/p - Finance/serials Keep a “general” fund for things that cannot be compartmentalized.

42. Funds (Huh!): What are they good for! - IUG 2008 Case 1 - Too much money in one fund Change only current orders (no need or benefit to change older or cancelled records Rebuilt the reports to include the new funds. If breaking them down, keep the same basic structure. Best to do it when you need to get the information - Fiscal Close might make sense

43. Funds (Huh!): What are they good for! - IUG 2008 Case 1 - Too much money in one fund Current total – $472,000* - all edb New totals – –Acc/e - $26,610.00 –Car/e - $24,892.00 –Cin/e - $88,915.90 –Ejo/e - $65,160.00 –Fin/e - $149,046.80 –Mar/e - $75,680.00

44. Funds (Huh!): What are they good for! - IUG 2008 Case 1 - Too much money in one fund Do not get bogged down by assigning a code – Call Number vs. Access Can split between funds (Marketline evenly covers both company (cin/e) and marketing (mar/e). “Set and forget” Might be more problem than it is worth Gives you good sense of what is being spent…too much or too little in an area. Appropriate to general fund (they will all work out).

45. Funds (Huh!): What are they good for! - IUG 2008 Case 2 – When to Change Funds? When should a library change funds? When should a library change loan rules? When should a library change call numbers? When should a library change fixed fields? Should a library change SCAT tables if it will invalidate Call Number Circ Stats?

46. Funds (Huh!): What are they good for! - IUG 2008 Case 2 – When to Change Funds? When they no longer do what is needed!

47. Funds (Huh!): What are they good for! - IUG 2008 Case 2 – When to Change Funds? With fiscal changes – Fiscal Close is a nice time to change If you do this at fiscal close: –have all the funds setup before hand –have the reports setup before Remember that when your funds are not in Financial Reports - They virtually do not exist!

48. Funds (Huh!): What are they good for! - IUG 2008 Case 2 – When to Change Funds? You can really do this at any time You can use the fiscal close Method Two to move outstanding funds to a different set. If you do not clear the values (appropriations and encumbrances), then you can do it ANY TIME. If the change is important, do not wait. For items already paid, you can use adjust fund balances to move them to the new codes. Changing the fund if paid will not work.

49. Funds (Huh!): What are they good for! - IUG 2008 Case 3 - Year by Year Funds Can you setup a fund system that has year by year funds, but is Method One (use or lose)? Yes Every year, you have to create new funds and reports Every year, you will clear appropriations and expenditures at Fiscal Close Existing Reports will not be as useful.

50. Funds (Huh!): What are they good for! - IUG 2008 Case 3 - Year by Year Funds What is the goal? –What is being attempted - there might be other ways to manage this. If it is to have more years of data, pull the data from the system into Excel Innovative system for Methods 1 and 2 have two years of data (current year and last year) Lots of extra work just for more years on the system.

51. Funds (Huh!): What are they good for! - IUG 2008 Case 4 – Other Expenses (non-system) I have separate accounts that I can pay for resources – how do I get it into our library system…or should I? Resources purchased with gift accounts or other funds Purchases should be in the library system to provide a real total of expenses

52. Funds (Huh!): What are they good for! - IUG 2008 Case 4 – Other Expenses (non-system) Finance reports should accurately depict the accounts. Problems with paying outside the system. Governing Body’s Accounting System Materials Expenditure ILS Order RecordsILS Adjustments ILS Totals Other Adjustments

53. Funds (Huh!): What are they good for! - IUG 2008 Case 4 – Other Expenses (non-system) Reconciliation* with accounting system –Appropriations should be the same –System accounts reflect credits accurately. Governing Body’s Accounting System Materials Expenditure ILS Order RecordsILS Adjustments ILS Totals Other Adjustments

54. Funds (Huh!): What are they good for! - IUG 2008 Case 4 – Other Expenses (non-system) Can use same funds or special fund codes for those endowments Special funds might be useful because they will not change the appropriation value You can appropriate monies right to that fund code

55. Funds (Huh!): What are they good for! - IUG 2008 Case 4 – Other Expenses (non-system) Cin/n – Company Information – endow. Add to Reports Appropriate right to that fund code Use groupings to distinguish between general operating and endowment funds Sub-totals will show total appropriations and expenses for each category Grand totals will show total spend for the library.

56. Funds (Huh!): What are they good for! - IUG 2008 Materials Budget & Finance Dealing with Credits –Use a negative expenditure –With Innovative, payments are typically made with current year’s funds. –This will reduce money spent from system, without changing appropriation.

57. Funds (Huh!): What are they good for! - IUG 2008 Resources Users Manual CSDirect Innovative List IUG Clearinghouse –http://www.innovativeusers.org/clearinghouse IUG Program Archives

58. Funds (Huh!): What are they good for! - IUG 2008 Questions? Corey Seeman University of Michigan cseeman@umich.edu