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Everything You Wanted to Know about Finance and Budget

Everything You Wanted to Know about Finance and Budget. “How To” Conference June 1, 2005. Financial Services – What We Do. Receive funds - grants, tuition, sales and investment income Disburse Funds – payroll, suppliers and reimbursements

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Everything You Wanted to Know about Finance and Budget

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  1. Everything You Wanted to Know about Finance and Budget “How To” Conference June 1, 2005

  2. Financial Services – What We Do • Receive funds - grants, tuition, sales and investment income • Disburse Funds – payroll, suppliers and reimbursements • Keep Score – where did funds come from, how did we spend it and how much is left

  3. Key Financial Processes • Payroll – payment of wages and salaries • Procurement of goods and services • PO’s, Pcards, Standing & Blanket agreements • Disbursements • Invoice payments, Travel Claims, Professional Development, Other (cheque requisitions) • Accounts Receivable • General accounting and financial reporting • Research accounting • Endowment Accounting • Banking, cash management and investments • Student tuition fee assessment and collection • Budget development and management • Pension plan administration • Risk management and insurance

  4. Account Holder Responsibilities • Staying within budget • Authorizing transactions • Is it reasonable? • Is it funded? • Is it within UVic Policies? • Maintaining internal controls • Cash controls • Safeguarding of assets • Avoid surprises, review accounts regularly

  5. Chart of Accounts • Coding structure used to classify financial transactions • Based on Fund Accounting principles • Recognizes external/internal restrictions • Assigns lines of financial responsibility • Identifies revenues and expenses • Structured within hierarchies

  6. EASY Chart Structure • EASY Code = Fund + Organization • Subcode = Account

  7. Major Fund Types • General Operating • Core operating activities • Funding allocated via budgets • Fiscal year cycle (April to March) • Specific Purpose • Conferences, service contracts and activities funded through endowments • Project oriented • Sponsored Research • Externally restricted grants for specific research projects • Project oriented • Ancillary Enterprises • Units on self-supporting basis • Capital Fund • Land, buildings and renovations

  8. Operating Budget Information • developed to support the strategic plan • source of funds: gov’t grants & student tuition • main expenditure: salary ~76% of total budget • use of position control • must budget for benefits • salary increases funded centrally • includes funds 10000, 15000, & 11310 • includes Base and Non-recurring

  9. Sources of Operating Budget • Central base budget • allocations per Framework • Departmental revenue • external revenues • Internal recoveries • program fees

  10. Types of Operating Budgets Base Budget • also called ‘recurring’ budget • represents on-going revenues and expenditures • all continuing, regular employees must be base funded • identified in EASY in ‘Base Budget’ column Non-recurring Budget • also called ‘one-time’ funding • provided for one year only • may fund term employees • identified in EASY in ‘Total Budget’ column using “n/r” in description

  11. Budget Cycle Oct Nov Dec Jan Feb Mar Apr May Projections & Framework developed • uses current base budget information • annualizes salaries receiving July 1 increase • projects enrolment changes • government funding announcement Mar - April

  12. Budget Cycle Oct Nov Dec Jan Feb Mar Apr May Budget framework approved by BOG • approved by the BOG • outlines high level revenues & expenditures based on detailed projections • includes knowns (gov’t grant, bargaining unit contracts) and unknowns (enrollment estimates)

  13. Budget Cycle Oct Nov Dec Jan Feb Mar Apr May Departmental allocations • allocation decisions based on strategic plan • letter from VP to Deans/Executive Directors • budget worksheets from budget office to Faculties/Depts • completed worksheets returned to budget office

  14. Budget Cycle May Jun Jul Aug Sep Oct Nov • projected budget added to new allocations • posted into EASY financial system • sent to Faculties/Departments • detailed report prepared for BOG Preliminary budgets

  15. Budget Cycle May Jun Jul Aug Sep Oct Nov • Departmental base and non-recurring transfers • new allocations resource reallocations (new hires, reclassifications) • sessional funding transfers to departments from Deans • carryover and/or reserve drawdowns • departmental requested changes • Central or other transfers • salary changes • one-time funds to cover: • projects • enrolment management • start-up grants Ongoing budget transactions & salary reconciliations

  16. Budget Cycle Apr May Jun Jul Aug Sep Oct • Carryover policy is 100% • Key management tool • Sources • favorable budget variance • planned savings (7359) • Choice: • operating carry forward and/or • equipment reserves (interest earned) Carryover to fund 11310

  17. Carryover Process • Procedures • c/o report to Deans/Executive Directors • equipment reserve allocations? • year end balances posted to 11310 • Carryover drawdown requests • email or memo to budget office • spending must happen in year drawdown request made • Equipment reserve drawdown requests • email or memo to budget office • equipment only • once allocated can not be used for another purpose

  18. Budget Cycle May Jun Jul Aug Sep Oct Nov Budget vs actual statements • Central & Department level statements • reviewed annually by the BOG

  19. Minor Capital – What is it? • Funding from the province • Provided to support: • cyclical maintenance • accessibility • alterations and renovations • Not for capital or equipment

  20. Minor Capital Process • letter to Deans / Directors • submit ranked projects • FMGT reviews ,evaluates and costs each project & develops report • Budget developed based on rankings and review by VPFO, VPAC & FMGT • Funding is never enough! • Notification to departments

  21. Budget & Capital Planning Contacts

  22. What is EASY ? • Management tool providing financial information for budget control and decision making • Data warehouse providing web delivery of financial information updated daily and available 24/7 • Based on fund accounting principles • data structured in hierarchies

  23. EASY provides questions to: • How much do I have to spend? • How much have I spent so far? • How much have I committed to spend? • How much will be left at March 31?

  24. Commitments Commitments in EASY are generated from : • Appointments in the CHRIS (HR/Payroll) System • Purchase orders issued for goods and services • Procurement Card transactions Items not reflected in EASY Commitments: • wages for time reporting employees (paid by timesheet) • benefits on salaries paid outside of the General Operating Fund • Internal charges • Items purchased under blanket or standing orders • expenses paid via cheque requisitions or travel expense reports

  25. EASY Presentation of Data • Account summary and transaction detail • Budget, Actuals, Commitments and Balance Remaining • Negative sign indicate a credit (inflow) • Ability to “drill down” to transaction details

  26. Features of EASY • summarize data across EASY accounts • summarize data by activity or location • comparative balances on single screen • summarize subcodes in higher categories • variance indicator • expanded search functions • Pcard reporting and cashed cheque info

  27. “Transfer of Funds” • Budget transfer • Within general operating • Can’t cross funds • Email or memo request to budget office • Expense Transfer • Move expenses to match revenue • Most common type • Journal entry to accounting to move ‘actuals’ • Revenue Transfer • Must have external revenue • Journal entry to accounting to move ‘actuals’

  28. Support • Departmental administrative staff • Dean’s Office • Budget Office • Accounting Services • Purchasing Services

  29. Accounting Contacts • Executive Director, Financial Services - Murray Griffith (250) 721-7028     mgriff@uvic.ca • Controller - Fred Marshall   (250) 472-4515     fmarshal@uvic.ca • Manager, Payroll - Jill Stringer   (250) 721-7036     stringer@uvic.ca • Manager, Tuition Fee Assessments - Tory Hastings (250) 721-6648     fees01@uvic.ca • Manager, Research Accounting- Sandy Bligh (250) 472-4157     sbligh@uvic.ca • Manager, Financial Accounting & Training - Brian MacDonald (250) 721-7026  brianmac@uvic.ca • Manager, Cash Management & Disbursements - Myrna Ferguson (250) 721-6174  UVC B263  ferguson@uvic.ca

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