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Best Practices

Best Practices. Boise State University Budget Office. Goals for Training. 1. Understand Basic Budget Building. 2. How to Monitor OE, Travel & Capital Budgets. 3. How to Monitor Payroll Budgets. 4. Understand End of Year Processes. For Profit vs. Government. For Profit

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Best Practices

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  1. Best Practices Boise State University Budget Office

  2. Goals for Training 1. Understand Basic Budget Building 2. How to Monitor OE, Travel & CapitalBudgets 3. How to Monitor PayrollBudgets 4. Understand End of Year Processes

  3. For Profit vs. Government For Profit • Revenue – Expenses = Net Income • Maximize Profit • Government • Resources Received • = Resources Used • Efficient & Effective • Use of Resources

  4. Boise State University

  5. Financial Reporting Program Type Department Account Fiscal Year FY 2008 July 1, 2007 To June 30, 2008 10 Digit Alpha-Numeric 909A100001 6 Digit Numeric Asset Liability Revenue Expense Fund Balance Associated with Department General description of activity

  6. Fiscal Year 12-Months July 1 to June 30 FY 2008: July 1, 2007 – June 30, 2008

  7. Program Types / Activity Type • Program 01: Instruction • Program 04: Research • Program 06: Public Service • Program 07: Library • Program 08: Student Services • Program 09: Physical Plant • Program 10: Institutional Support • Program 11: Academic Support • Program 12: Auxiliary Enterprises (Athletics) • Program 13: Scholarships

  8. Program Types / Activity Type

  9. Department identifier Section/Unit Identifier 1 = Main Campus 2 = BSU West Fund Source A = Appropriated L = Local G = Grant Department Anatomy of the Department ID B i o l o g y Format: 3-1-6 Alpha Numeric 006 A100001

  10. Accounts • 6 Digit Numeric • “Buckets” • 3***** = Revenue • 4***** = Personnel Costs • 5***** = OE & Travel (53****) • 6***** = Capital • 9***** = Fund Balance

  11. Budget Rollup Accounts 410000 Regular Salary 411000 Part-Time/Irregular Salary 412000 Student Salary 420000 Fringe Benefits 500000 Operating/Other Expenses 530000 Travel 600000 Capital Outlay

  12. Types of Financial Statements • Income Statement • GL Department Detail Report • Balance Sheet • Etc.

  13. Users of our Financial Statements • Departments • Deans / VP’s / Provost / President • State Board of Education • Governor / Legislature • Lending institutions • Auditors

  14. Uses of Financial Statements • Track progress towards goals • Compare Actual with Plan/Budget • Communicate • Modify behavior • Assess financial condition • Assist in evaluating efficiency and effectiveness

  15. Why do we have Budgets? • Control spending • Monitor progress & modify spending • Communicate • Required

  16. Appropriated General Fund (taxes) $80 million Budget Tuition $47 million Budget ***A****** Departments Local & Auxiliary Other Student Fees User Fees F&A Transfers from Foundation $26 million Local Budget $61 million Auxiliary Budget ***L****** Departments Kinds of Budgets

  17. Appropriated Budget Process

  18. BSU Budget Process MAR: JFAC & SBOE sets Budget MAY: BSU sets department budgets MAR: Local Budget Templates JULY: Budget effective DEC: Annual Planning Documents AUG: Submit Budget Request to SBOE

  19. Local Budgets • Budget = a plan or estimate • Most common meaning for business • Budget is not a guarantee • No budget transfers • Annual budget preparation: March – May • Separate budget book • Look at the bigger picture ** ** Think of: Fund Balance = Spending Authority

  20. Why Budget Local Departments? • Required to submit Local Budgets to the State Board of Education • (For FY08 864 budgets sent out, 648 returned 75%) • Estimate activity • Ensure strategic plans are met • Make better planning decisions • Gives you something to compare current activity against

  21. How does a Local Budget work with the Fund Balance?

  22. How does a Local Budget work with the Fund Balance?

  23. How does a Local Budget work with the Fund Balance?

  24. Auxiliary Budgets • Auxiliary Enterprises are essentially self-supporting per SBOE policy • Annual budget preparation: March - April • Information for budget preparation • Projected enrollment • Salary and payroll expense • Utilities • Administrative Service Charge • Separate budget book

  25. Auxiliary Budget Overview • 16 Auxiliary Enterprise Departments • FY08 Revenue = $61,315,648 • FY08 Expense = $61,260,842 • FY08 Total Employee FTE = 357.85

  26. Auxiliary Budget Revenue

  27. Appropriated Budget • Annual Planning Documents • Request additional budget for upcoming fiscal year. • Used to plan for the next years budget request • Planning • Communicate • Approved New Budget is communicated to department through VP or Provost

  28. Appropriated Budget Book • Distribution • Lists $$ support from State and from Students • Lists permanent budget for each appropriated department

  29. One-time vs. Permanent Budget • Permanent transfers increase or decrease the next years original budget (base) as well as this years budget • One-time transfers only effect the current year’s budget

  30. Budget Transfers • Allowable Budget Transfers • Clearing Budget Errors • One error holds up the entire journal entry • Budget Transfer Form • Appropriated Only • Correct signatures • Plan ahead – remaining fiscal year • Not just one pay period at a time

  31. Monitoring OE, Travel & Capital • Reports • Department Detail Report • Department Summary Report • Appropriated Budget Summary • Budget Overview • DDR Query & Pivot Table

  32. Monitoring OE, Travel & Capital • DDR Query & Pivot Table • On-line instructions: http://finad.boisestate.edu/aa_home.htm • Pros and Cons of using DDR Query • Additional entry information • Entry signs are ‘reversed’ • No budget information • Examples: • Single DeptID – 12 months side-by-side • Single DeptID – 3 Years side-by-side • Multiple DeptIDs – side-by-side

  33. Monitoring OE, Travel & Capital • Local & Auxiliary • Fund Balance • What to look for on reports • No deficits in fund balance • Budget • What to look for on reports • No budget transfers • Except for: Auxiliary, computer labs, & a very few others

  34. Monitoring OE, Travel & Capital • Appropriated • Budget • What to look for • No deficits in budget • Allowable Budget Transfers • One-time vs. Permanent • Timing of transfers

  35. Monitoring OE, Travel & Capital • Tracking – Folders and Spreadsheets • Folders for • Open Payments • Pending Invoices • Pending P-Card • Pending Deposits • Posted Expenses • Posted Revenues • When picking an account • Be Specific, Reasonable & Consistent • Examples: Non-employee travel is OE

  36. Folders - Example

  37. Folders I’m going to purchase MS Project with my P-Card. Cost is about $100.

  38. Folders Memo: Acct: 557000 Desktop Software I’m going to purchase MS Project with my P-Card. Cost is about $100.

  39. Folders Match Memos to P-Card “Statement” Memo: P-Card “Statement”: $107.59 Office Max Code to 557000 Desktop Software

  40. Folders Place in Pending P-Card Folder Memo: P-Card “Statement”: $107.59 Office Max Code to 557000 Desktop Software

  41. Folders Place in Pending P-Card Folder Memo & P-Card “Statement”

  42. Folders Match P-Card Statement to PeopleSoft Department Detail Report: 500000 OE 557000 Desktop Software P-Card Wargo 107.59 Memo & P-Card “Statement”

  43. Folders File in Posted Expenses Folder Department Detail Report: 500000 OE 557000 Desktop Software P-Card Wargo 107.59 Memo & P-Card Statement

  44. Folders File in Posted Expenses Folder – Keep 5 years Detail Report P-Card Statement Memos

  45. Folders ? ? Department Detail Report: 500000 OE 571020 Minor Tools Home Depot $456.78 ? DDR query. Call AP (if source document is AP) or Accounting to get more information.

  46. Folders Invoice Copy $345.67 Office Solutions Department Detail Report: ? Call AP (if the source document is AP) or Accounting to get more information.

  47. Reconciliation Workbook • Advantage of folders: • Tracking expenses from your office to PeopleSoft • Example • Advantage of Workbook • Tracking permanent vs. one-time budget

  48. Monitoring Payroll • Reports & Tools • Payroll Expense Distribution Report • Example • Payroll query from Business Manager

  49. Budget Position Action Request (BPARs) • Main focus is on the position • Submit BPAR if requesting permanent new position • Must have APPROVED funding • Permanent Budget (transfer if Appropriated) • Approved Supplemental Funding Request (SFR) form if funded by an appropriated department • Other reasons for submitting BPARs • Academic Areas • Must have Department Chair, Dean & Provost signatures before submission to the Budget Office • Non-Academic Areas • Must have Director & Vice President signatures

  50. Employment Action Forms (EAFs) • Main focus is on the employee • Submit EAF for reappointment if: • funded by grant • for temp employee, • change in salary, term, title • Importance of submitting EAFs in a timely manner • If late, creates payroll corrections & could delay first paycheck • Effective Dates • Contract Dates/Working Dates

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