PST950 Budget & Commitment Control

1. PST950Budget & Commitment Control

2. Housekeeping • Sign-in roster available later – get credit! • Break • Restrooms • Cell phones or pagers • Email – Wait until break to check • Fire/Fire Drill Procedure HRS Bridges HSC HRS

3. Today we’ll discuss • Definitions and Key Concepts • myUFLChartFields • Commitment Control: Fundamentals • KK Budget Inquiry: State Appropriations • KK Budget Inquiry: Grants

4. Today we’ll discuss • Commitment Control: Budgets Overview • Checking Budget Exceptions • Manager Self Service: Notify Preferences • KK Budget Inquiry: Cash-Based • Summary and Conclusion

5. 1 WHAT’S THIS? This icon on a presentation slide points you to the page number in your Study Guide where you can find the content you’re viewing in the PowerPoint presentation. Class Format • Lectures/Explanations of Topics • Reference: Study Guide • Hands-On Exercises • Reference: Apply It Handout

6. Definitions and Key Concepts

7. Definitions & Concepts • The myUFL System… Is a collection of online services and business processes, which includes - The Portal - A Finance System - A Human Resources System - An Enterprise Reporting System - A Student Financials System

8. Definitions & Concepts • Security Roles • Security role UF_FI_UNIVERSAL_INQUIRY allows you to view all FI modules (requires request by DSA) • Security role UF_KK_BDGT_TRANSFER_PROCESSOR allows you to conduct Budget Transfers (requires PST952 completion, request by DSA and approval by UF Budget Office)

9. Much more later… Definitions & Concepts • An accounting methodology in myUFL that identifies and reserves (“commits”) funds for future payment obligations • Designated “KK” because… “CC” = credit card in myUFL • Commitment Control (“KK”) is…

10. Definitions & Concepts • Ledger Groups • Provide information associated with the category of budget • Different ledger groups for different “categories” of budget available to departments • Different sources of funds, different “rules” associated with spending

11. Definitions & Concepts • Ledger Groups (Continued) • For example, APPROP CASH_BASED KKGMCHD • Much more later…

12. 2 Definitions & Concepts • Budget-Based vs. Cash-Based Funds • The distinction between budget-based funds and cash-based funds determines your “available spending authority”

13. Definitions & Concepts • Budget-Based Funds • Budget allocations funded from State Appropriations (including student tuition revenue) • - made in lump-sum amounts by the University Budget Office • - as determined by UF’s RCM budgeting model • These allocations may be further allocated to colleges, centers, and divisions

14. Think of budget-based funds as a credit line that has been extendedand guaranteed to your department Definitions & Concepts • Budget-Based Funds (Continued) • Once the budget allocation has been made, these funds can be spent • Sponsored Projects also are considered “budget-based”

15. Definitions & Concepts • Cash-Based Funds • Available resources (operating budget amounts) are based on beginning cash balances, plus revenue, less expenditures • Includes Auxiliaries, Component Units, Returned Overhead and Residuals, as well as others

16. Think of this as the cash you havein your wallet — you must have thecash in your wallet in order to spend it Definitions & Concepts • Cash-Based Funds (Continued) • These funds can be spent only when the “cash” has been obtained

17. Definitions & Concepts Questions or Comments?

18. myUFLChartFields

19. 2 myUFL ChartFields • ChartFields are the data entry fields that, used in proper combination, allow the completion of revenue and expense transactions within myUFL • Let’s look at an example of how ChartFields might be used in myUFL to set up a Budget Inquiry...

20. myUFL ChartFields Defining the criteria for a Budget Inquiry, for example, requires the entry of data into specific ChartFields.This is the Budget Details form (ChartFields) where you can define a Budget Inquiry.

21. myUFL ChartFields • These ChartFields are required on ALL transactions:

22. myUFL ChartFields Required on all transactions • Sometimes called a “GL Unit” (General Ledger Unit) UFLOR, for example UFLOR

23. myUFL ChartFields Required on all transactions • Department IDs have eight digits • Required for myUFL financial transactions • Used to identify your organizational structure 01020000

24. myUFL ChartFields Required on all transactions • Answers the question “Where does your department’s money come from?” • There are 82 valid Fund Codes from which to choose 101

25. myUFL ChartFields • Fund Code Examples • 101 E&G Gen Rev, Main Campus • 102 E&G Gen Rev, HSC • 103 E&G Gen Rev, IFAS • 171 Transfer from Component Units • 201 C&G Federal Restricted • 209 C&G Other Restricted

26. myUFL ChartFields Required on all transactions • Answers the question “Why Are You Doing This?” • Examples: 1100 4400 Computing Supp4600 Academic Admin6100 University Supp 0100 Physical Plant Admin0500 Custodial Services1100 Instruction & Research2200 Individual/Proj Res

27. myUFL ChartFields Required on all transactions • Answers the question: “What are you doing?” • Used to specify the classification of activities • Six-digit code 700000

28. myUFL ChartFields  Account ChartField value that begins with: 1 represents Assets 2 represents Liabilities 3 represents Fund Equity 4 represents Revenue, Operating 5 represents Revenue, Non-Operating 6 represents Expenses, Personnel Operating 7 represents Expenses, Other Operating 8 represents Expenses, Non-Operating 9 represents Statistics & Self-Balancing

29. myUFL ChartFields • Some FUND CODES require additional ChartFields. For example: • is required with these Fund Codes Dept Flex:

30. myUFL ChartFields Source of Funds: • ChartField is required with these Fund Codes:

31. myUFL ChartFields • Fund Codes 201, 209, 211, 212, 213 and 214 require these additional ChartFields Project: PC Business Unit: GRANT (for grants = “1”) Activity ID:

32. myUFL ChartFields • For more information on ChartFields… • See the ChartFields Toolkit http://hr.ufl.edu/training/myUFL/Toolkits/chartfields.asp

33. myUFL ChartFields Questions or Comments?

34. Commitment Control:Fundamentals

35. 4 Commitment ControlFundamentals • Commitment Control is a function of myUFL • Used to control commitments and expenditures automatically by checking them against predefined, authorized budgets • Will stop transactions that would exceed budget

36. Commitment ControlFundamentals • Commitment Control will • Track the following against a designated budget •  Encumbrances Expenditures

37. Commitment ControlFundamentals • The Cycle for financial transactions: • PURCHASE ORDER: KK creates an encumbrance • VOUCHER: KK relieves the encumbrance, creates an expenditure

38. Commitment ControlFundamentals • In general, Commitment Control (“KK”) answers the question: “What is my available spending authority?” • If you do not have sufficient budget or available cash, the process will be stopped • Available spending authority is defined in five categories, or ledger groups…

39. Today’s primary focus: 1, 2, 3 Commitment ControlFundamentals • The five ledger groups are: • State Appropriation APPROP • Cash-Based CASH_ BASED • Grants KKGMCHD • Construction CONST • Student Government STUGOV

40. Commitment ControlFundamentals • Each ledger group calculates - Available Spending Authority, or - Your “Available Spending” Balance

41. Commitment ControlFundamentals • Each Ledger Group is • Related to different FUNDING SOURCES, each with a different set of “rules” for spending • Let’s look at the respective Funding Sources…

42. 4 CASH_BASEDLedger Group APPROPLedger Group • Component Units - Auxiliaries- Returned Overhead • Cost Sharing • State Appropriations KKGMCHD Ledger Group FL FL - Sponsored Projects Commitment ControlFundamentals • Different funding sources are grouped under the same ledger group (“color of money”) CS

43. CONSTLedger Group - Funds for Capital Projects STUGOVLedger Group - Activity & Service Fee Commitment ControlFundamentals

44. 5 Commitment ControlFundamentals

45. Commitment ControlFundamentals

46. 6 Commitment ControlFundamentals

47. SP Commitment ControlFundamentals

48. 7 Commitment ControlFundamentals

49. 7 CS Commitment ControlFundamentals

50. 8 CU Commitment ControlFundamentals