1. Financial Reporting Training Office of the Controller

2. Objective 1.Accounting Review 2.What is a Budget and General Budget Concepts 3.Budget Inquiries & Budget Status Report 4.Overview of some useful Queries 5.nVision Financial Reports: Define nVision Variance Analysis Available Budget 6. Demo Office of the Controller

3. What is Accounting? Accounting is a systematic way to identify, measure and communicate the economic impact of events, such as activities that generate inflows and outflows. Accounting is a self-balancing process which measures: 1.Financial Activity: REVENUES and EXPENSES for a period Income = Revenues – Expenses AND 2.Financial Position: BALANCES on a cumulative basis at a certain date Positive balances which will provide future benefits are ASSETS Negative balances which represent future obligations are LIABILITIES Office of the Controller

4. What is Accounting? Example of Economic Event: FIU provides educational services to students. 1.The University has the right to collect fees from students (Revenues) but must also pay faculty to render the services (Expenses). AND 2.The University collects the cash from the student and pays cash to the professor, resulting in a net positive cash (Asset) balance at the end of the period Office of the Controller

5. Why “fund” accounting Activities are segregated by funding source Each fund :  is Restricted in its uses by statute  is Allocated a Budget that cannot be overspent Currently, within each fund, activities are further segregated by Organizations and Departments that identify which unit/college is responsible for performing the activity and the specific nature of the activity (e.g. College of Business puts on the FIU Online Conference). Office of the Controller http://finance.fiu.edu/controller/Docs/FundRulesMatrix.xls

6. Which funds does FIU have?  E&G – Educational and General  AUX – Auxiliary Enterprises  C&G – Contracts and Grants  Agencies  FA /FinAid – Financial Aid/ Scholarships  Student-Related Activities  Concessions Office of the Controller

7. Which Entities does FIU have ? Entities affiliated to the University:  FCN01 — FIU01 AP Construction  FIU01 — Florida International University  FIU02 — FIU Foundation: administers donations for the purpose of the advancement of FIU. Considered a Non-for-profit entity, not a governmental entity.  FIU03 — Wolfsonian Inc.  FIU04 — FIU Research Foundation  FIU05 — FIU Athletic Finance Corp  FIU06 — FIU Health Care Network  FIU07 — FD Enterprise Holdings I, LLC.  FIU08 — FD Enterprise Holdings II, LLC.  FIU09 — FD Enterprise Holdings III, LLC.  FIU10 — FD Enterprise Holdings IV, LLC. FSR01 — Office of Sponsored Research FSR04 — FIU Research Foundation Office of the Controller

8. Revenues = Money coming in Operating Revenues are generated from providing goods or services in the normal course of operations to customers. Non-Operating Revenues are for incidental activities, such as investment earnings. In fund accounting, revenues are recognized when measurable and available to spend, the earlier of:  When collected in cash using cash basis (e.g. conference registration fees collected now for an event to occur in the future) OR  When earned using accrual method (e.g. student registers for classes now but tuition payment is not due to University until later) NOTE: Revenues which have not been collected are classified as receivables until they are collected in cash (e.g. the University has a receivable from a student until his/her student account is paid to the University). Office of the Controller

9. Expenditures = Money being spent Costs incurred in efforts to generate revenues, classified as:  Expenses if the payment provides immediate benefits (e.g. salaries, travel)  Capital if the payment provides long-term benefits (e.g. tangible assets with longer lives such as equipment). NOTE: In accounting, all expenditures for goods and services are recorded in the fiscal year that they occur using accrual method At the operating fund level, expenditures are treated as expenses and those subject to capitalization are accounted for in another fund. Expenses which have not been paid are classified as payable until they are paid in cash (e.g. invoices from vendors with certain number of days to pay). Office of the Controller

10. Sources of Revenues and Expenses Revenues:  Student Financials (tuition, other student fees)  Cashiers (cash/credit card deposits) Expenses  Payroll (salaries and benefits actual and accruals)  Voucher (operating and capital expenses)  Commodity Card (operating expenses)  Interdepartmental charges with no approval required (phone, printing, overhead)  Interdepartmental charges with approval required (facilities maintenance) In both cases, re-classes of revenues and expenses from one department to another or from one account to another should be requested via an Inter-Departmental Transfer Form. Office of the Controller

11. Income and Financial Position Remember the results of accounting? 1.Income measures net operations earned during the period Income = Revenues –Expenses 2.Fund Balance is the net financial position at the end of the period. It represents what resources you have left to spend in the short-term: Cash + Receivables –Payables = Fund Balance Beginning Fund Balance + Income + Cash Coming In – Cash Going Out = Ending Fund Balance Office of the Controller

12. Example Office of the Controller College creates a new program to begin 7/13/xxxx Assets-Liabilities=Net Assets Cash+Receivable-Payable=Fund Balance Balance at 6/1/xxxx $ - Start-up funding from another department $ 10,000 Cash In 26 Students register for classes $2000 each due 7/1 $ 52,000 Revenue New Program Manager is paid for 2 periods 6/1 - 6/14 $ (2,520) Expense Purchase of laptop for new PM $ (1,200) Expense New Program Manager is paid for 2 periods 6/15 - 6/28 $ (2,520) Expense Payroll accrues 2 days in June 6/29 - 6/30 $ (360) Expense Balance at 6/30/xxxx $ 3,760 $ 52,000 $ (360) $ 55,400 Student pays for classes $ 52,000 $ (52,000) $ - Expense Program Manager is paid for period 6/29- 7/12 $ (2,520) Expense Reverse accrual for 2 days in June, liability paid $ 360 Expense Buy food for students for July, payment not due until 8/5 $ (4,000) Expense PM paid for period 7/13 - 7/27 $ (2,520) Expense Faculty paid for period 7/13 - 7/27 $ (3,880) Expense Pay back start-up funding $ (10,000) Cash Out Balance at 7/1/xxxx $ 36,840 $ - $ (4,000) $ 32,840

13. Example (Continued) Office of the Controller June July Beginning Fund Balance $ - $ 55,400 Revenues $ 52,000 Expenses Salaries and Benefits $ 5,400 $ 8,560 Operating Expenses $ - $ 4,000 Other Capital Outlay $ 1,200 $ - Total Operating Expenses $ 6,600 $ 12,560 Income (Loss) $ 45,400 $ 42,840 Transfer In $ 10,000 Transfer Out $ (10,000) $ 55,400 $ 32,840 Tuition 26* $2000 $2520 $ 360 $5400 Laptop $1200 Departmental Loan Loan Payback Food $4000 $ 2520 $ 3880 $ (360) $ 8560

14. Objective Office of the Controller 1.Accounting Review 2.What is a Budget and General Budget Concepts 3.Budget Inquiries & Budget Status Report 4.Overview of some useful Queries 5.nVision Financial Reports: Define nVision Variance Analysis Available Budget 6.Demo

15. What is a Budget ? Management plan for meeting probable revenues and expenses for a given period of time Serves as a control mechanism to match anticipated and actual revenues and expenditures Office of the Controller

16. Budgetary Accounts Categories used at FIU Office of the Controller Category Examples Revenue Sales of Goods or Services Rental Income Sponsorship Revenues Permanent Salaries and Benefits Faculty, Staff, Administrative Salaries Benefits Other Personal Services (OPS) Temporary Employees Student and Graduate Assistants Adjunct Faculty Other Operating Expenses Travel Expenses Office Supplies Repair and Maintenance Operating Capital Outlay (Assets ≥ $5000) Personal Computers Furniture Repair and Maintenance Cash Transfers In & Out Transfers to Construction Start-up Costs for other departments

17. Budget Cycle for FIU Office of the Controller Preliminary Phase July – February Implementation Phase February – April Review Phase April – May Budget Posted End of June Monitoring Phase July –June Prior Year Current Year

18. Objective Office of the Controller 1.Accounting Review 2.What is a Budget and General Budget Concepts 3.Budget Inquiries & Budget Status Report 4.Overview of some useful Queries 5.nVision Financial Reports: Define nVision Variance Analysis Available Budget 6.Demo

19. Office of the Controller Crystal Reports Inventory: Available Balance Budget Status Report Ledger GroupDescription CC_DEP (Department Child) Expense budgets, expenses, encumbrances & pre- encumbrances for Departments* or Activity Numbers by detail Budget Account CC_PRD (Department Parent) Expense budgets, expenses, encumbrances & pre- encumbrances for Departments* or Activity Numbers by Parent Department CC_REVBudgeted, collected and recognized revenues CC_PG (Project Child) Expense budgets, expenses, encumbrances & pre- encumbrances for project by detail Budget Account CC_PID Expense budgets, expenses, encumbrances & pre- encumbrances for Departments* or Activity Numbers by detail Faculty Allocation CC_PRP (Project Parent) Expense budgets, expenses, encumbrances & pre- encumbrances for projects by Parent Project ID * Organizational Unit

20. On-Line Inquiries - Reports Inventory: Available Balance Budget Overview Detail View Office of the Controller

21. On-Line Inquiries - Reports Inventory: Reconciliation Budget Overview: Drill to Activity Log

22. Office of the Controller Reports Inventory: Reconciliation Budget Overview: Drill to Activity Log

23. On-Line Inquiries - Reports Inventory: Available Balance Budget Overview Parent View Office of the Controller

24. On-Line Inquiries - Reports Inventory: Available Balance Budget Overview Detail View Office of the Controller

25. Reports Inventory: Reconciliation Budget Overview: Drill to Activity Log

26. SQR Reports Inventory: Available Balance Budget Status Report Office of the Controller

27. SQR Reports Inventory: Available Balance Budget Status Report

28. Objective 1.Accounting Review 2.What is a Budget and General Budget Concepts 3.Budget Inquiries & Budget Status Report 4.Overview of some useful Queries 5.nVision Financial Reports: Define nVision Variance Analysis Available Budget Office of the Controller

29. Useful Queries Query NameDescription REQUISITION_WORKFLOW_ROUTING List of employees involved in approving a requisition by Requisition ID FIU_DEPT_APPROVERS Lookup Expense Managers 1 & 2 (Approvers) and Organizational department by Dept ID FIU_GL_TRANDATA_BYDATE Detail transaction data for committed (enc & pre)/ paid expenses as well as budget by Dept ID FIU_GL_DEPT_PROJ_LOOKUP Lookup Fund / PCS/ Class associated with a Dept ID or Org dept/Fund/Class/PCS/PCBU/Activity for a project

30. Office of the Controller Query Data

31. Objective Office of the Controller 1.Accounting Review 2.What is a Budget and General Budget Concepts 3.Budget Inquiries & Budget Status Report 4.Overview of some useful Queries 5.nVision Financial Reports: Define nVision Variance Analysis Available Budget 6.Demo

32. The nVision reporting tool Provides real-time financial reporting capability. Extracts requested financial data from PeopleSoft. Places it into an Excel spreadsheet where it can easily be reviewed and manipulated. Office of the Controller Report Request Layout Scope Keyed to Business Unit Includes saved parameters Rules for generating reports for slices of the data The Scope feature allows you to create multiple instances of a report using a single report request. Template or style sheet

33. Reporting nVision – Elements Microsoft Excel Microsoft Excel is the backbone of nVision reporting. nVision facilitates the retrieval of information from PeopleSoft databases into a Microsoft Excel spreadsheet. The Layout of the Report The Layout of the Report is a Matrix or Tabular Excel spreadsheet. The Ledger Tables Layouts retrieve data from a ledger. This could be Actual, Budget or Forecast Ledgers. The ledger tables have five major data components: Business Unit Ledger Chartfields (Account, Department and Project ID, Program, Fund, Site or Class. Additionally for Projects PC Business Unit and Activity) Period and Year Net Posted Amount Actual transactions and Budget Transactions are stored on two separate tables. Actuals data is on the LEDGER table Budget data is on the LEDGER_KK table Office of the Controller

34. Reporting nVision – Elements Continued Time Spans Time Spans control the number of data periods extracted from the ledger table and summarized. Trees Trees are used to create hierarchical structures that visually represent a set of summarization rules for a particular field. The summarization rules depicted in a tree apply to the detail values of a particular field – departments, accounts, funds, vendors, customers or other values the University defines. Office of the Controller

35. Reporting nVision – Variables Report Variables Provide information about the current nVision report such as the Business Unit, Report ID/name, Title, Layout Name, Operator ID, etc. Date and Time Variables Provide information about the Date of the Report, the Tree, the Fiscal Year Accounting Period, etc. Scope Variables Provide information related to the scope definition used in the nVision report such as the Scope Field Value or description (i.e., department id or name) Office of the Controller

36. Reporting nVision – Time Spans Time Spans The Time Span controls the number of data periods extracted from the ledger tables and summarized. Typical Time spans provided with PeopleSoft General Ledger include: PER – Period – Retrieves only activity for the period selected (1=July, 2=Aug, etc.) YTD – Year to Date – Includes year-to-date amount for items selected. BAL – Balance – Retrieves life-to-date amounts (balance forward amounts) for balance sheet accounts. Time spans are often expressed relative to current period, so that they automatically adapt the content of a report to the “As of Reporting Date” specified when the report is executed. Office of the Controller

37. Reporting nVision – Scope Scope A Scope can be on one Chartfield and one value as well as many Chartfields and any values A Scope can be built on single values or tree nodes. This is a single value scope: Office of the Controller

38. Reporting nVision – Scope Scope This Scope includes Department and Fund Trees: Office of the Controller This Scope can be copied to another and change the fund node to: OTHER_UNRESTRIC_FUND

39. Office of the Controller CFO / BOT OFP EABM ABM DeptID E&G : DI report Non E&G: XA report Fund College/Unit Non Athletics: AS report Athletics: AI Report Fund Exec Area E&G and Non E&G: AS report* Fund VA Report UsersReport Aggregate level *A modified version of the AS showing subtotals per EA and College is being tested

40. Office of the Controller nVision Financial Reports Variance (Budget vs. Actual) Reports Type of ReportDescription of the ReportName Detail Transaction Reports Detail transaction data for committed (enc & pre)/ paid expenses as well as budget by Dept ID DT Summary Reports Detail variance by account with a subtotal by account rollups ( S&B, OCO,OPS, OOE) for a single Dept ID DI Detail variance by account with a subtotal by account rollups ( S&B, OCO,OPS, OOE) for a single E&G Dept ID Detail Inflow (revenue, fund balance & transfers in) and Outflow (Expenses and transfers out) variance with subtotals account and account rollups XA Detail Inflow (revenue, fund balance & transfers in) and Outflow (Expenses and transfers out) variance with subtotals account and account rollups for an Athletics dept AI

41. nVision Financial Reports Variance (Budget vs. Actual) Reports Type of ReportDescription of the ReportName Office of the Controller Executive Summary Actual and budget information for Salaries & Benefits for a range of Dept ID with a subtotal by Dept ID and funding source AS* Actual and budget information for Other Capital Outlay for a range of Dept ID with a subtotal by Dept ID and funding source Actual and budget information for Other Personnel Services for a range of Dept ID with a subtotal by Dept ID and funding source Actual and budget information for Other Operating Expenses for a range of Dept ID with a subtotal by Dept ID and funding source Actual and budget information for all expenses for a range of Dept ID with a subtotal by Dept ID and funding source Actual and budget information for revenues for a range of Dept ID with a subtotal by Dept ID and funding source *Note: The revenue section is collapsed

42. Reports Inventory: Variance Analysis The VA Report Office of the Controller The Columns come from Ledgers and use Time Spans The Rows come from Chartfields

43. Office of the Controller Variance Categories: Perm. SalariesOPS OCOOOE Total Expenses Revenue Reports Inventory: Variance Analysis The AS report

44. Office of the Controller Reports Inventory: Variance Analysis The XA report

45. Office of the Controller Reports Inventory: Variance Analysis The DI report

46. Office of the Controller CFO OFP EABM ABM DeptID Budget Overview Budget Status Report Fund College/Unit Fund Exec Area E&G and Non E&G: DS Report Fund DS Report AudienceReport E&G and Non E&G: DS Report Aggregate level Reports Inventory: Available Balance

47. Office of the Controller Reports Inventory: Available Balance DS Report

48. Office of the Controller Reports Inventory: Available Balance DS Report Budget Reconciliation

49. Office of the Controller Reports Inventory: Available Balance ES Report

50. Office of the Controller nVision Financial Reports Available Budget Detail Budget status ReportAvailable Balance detail by Budget accountDI Budget Status* Salaries Executive SummarySalaries & Benefits Available BalanceES OCO Executive SummaryOther Capital Outlay Available BalanceEC OPS Executive summaryOther Personnel Services Available BalanceEO OOE Executive SummaryOther Operating Expenses Available BalanceEE Executive SummaryExec Sum by DeptDS *Note: The Budget status report is NOT an nVision report. A tutorial is available online (UPK) on how to run it at http://panthersoft.fiu.edu/financials/onlinetraining.htm

51. Objective 1.Accounting Review 2.What is a Budget and General Budget Concepts 3.Budget Inquiries & Budget Status Report 4.Overview of some useful Queries 5.nVision Financial Reports: Define nVision Variance Analysis Available Budget 6.Demo Office of the Controller

52. Reports Inventory: The DT report Using nVision

53. Office of the Controller Reports Inventory: The DT report

54. Office of the Controller Reports Inventory: The DT report You can choose either a Department Area or Activity Number for this report. Whichever you choose, your report will reflect all selections for the report.

55. Office of the Controller Reports Inventory: The DT report

56. Office of the Controller Reports Inventory: The DT report Be sure to “ENABLE” the Macros for you to adjust and retrieve the item details from PantherSoft.

57. Office of the Controller Reports Inventory: The DT report

58. Questions ?