HR, Financials and Research Workshop for College of Education Administrators and Staff

1. HR, Financials and Research Workshop for College of Education Administrators and Staff

2. Goals for the Workshop To ensure College of Education administrators and staff • are advised of basic policies and procedures to carry out “business” while ensuring the good use of funds and resources. • are provided with a basic understanding of the different types of funds • know how to use on line tools to monitor resources

3. Conducting Business – With Who?

4. Off of Resource and Budget Management Budgetary Matters Budgetary control of: State appropriations funds Personnel salaries (financial) Capital improvement funds F&A funds Lower ledger 3 funds (example: ETF funds) Provides support for: Wolf Reports Position Control Chartfield Inquiry WESLI – Legislative increases on-line system

5. Controller’s OfficeUniv. Accounting, Accounts Payable, Accounts Receivable, Travel • University accounting system • Reporting (taxing authorities, state auditors, financial institutions, public, Gen Assembly) • Establish policies and procedures • Ensure compliance with university and state regulations • Establish trust funds • Capital Assets Management • Tax Information & Policy Manage financial transactions: • Payment to vendors • Travel • Interdepartmental transfers and Journal Vouchers • Cash advances, check writings, stop payments

6. Human Resources Personnel/Payroll Classification & compensation of SPA positions EPA Personnel Services Employment Services Recruitment Background checks Univ Temp Services Information Management HR System Web Leave Payroll Benefits Employee Relations Training & Development

7. ProcurementMaterials Management • Purchasing Purchase Orders Bids • MarketPlace • PCard • Materials Support • Surplus Property • Lab Supplies • Warehouse • Wolfcopy • Signature authority up to $50,000

8. Internal Audit Division • Internal audits business processes prevent and detect fraud, waste and abuse • Risk assessments to ensure compliance with NC State policies, rules, and regulations and federal and state requirements. • Cooperate with external auditors • Provide consulting and advise on business processes Hotline – fraudulent activities

9. InternalAudit’s preventive approach keeps us from away from risky situations!

10. Contracts and Grants Research Management Oversees all post award management issues throughout the life of a grant. Specifics: Project set up Billing to sponsoring agencies Budget allocation & re-budgeting Prior approval requests Cost sharing commitments Effort Project close-out F&A Negotiations

12. Organizational Unit Codes (OUC) or Department ID (new name) Was is this?

13. Organizational Unit Codes or Departmental ID Assigned numerical code to identify colleges, departments, and units throughout the University. OUCs have a total of 6 digits. First 2Second 2Last 2 College DepartmentUnit within dept

14. List of Colleges first 2 OUC Digits 11 = Ag & Life Sciences 12 = Design 13 = Education 14 = Engineering 15 = Forest Resources 16 = CHASS 17 = PAMS 18 = Textiles 19 = Vet School 20 = Management All other units on campus also have their own OUC. Ex. Chancellor’s Units Provost’s Units, Graduate School, Controller’s Office, etc.

15. “Some” of CED OUCs 130101 - 131099 Dean’s Units 131101 - 131199 Curriculum, Instruction and Counselor Ed 131301 - 131399 Science, Technology, Engineering and Math Ed 131601 - 131699 Leadership, Policy and Adult and Higher Ed 132401- 132499 ElementaryEducation 139001 - 139099 Friday Institute

16. And, so, how is the “University’s financial world” structured?It is grouped by type of funds !!

17. State Appropriated Ledgers 2 & lower 3 Research Ledger 5 Trust Funds Upper 3, 6, 7 & 9 Sales & Services (3) Gifts/Donations (6 & 7) Royalties (7) Endowments (6 & 7) Scholarships (6) Professorships (6) Gen Discretionary (6) Agency Funds (9) Regular Academic (2) Distance Education (2) Summer School (2) Tech Fees (3) Facilities & Adm (F&A) (2) Federal State Private Budget Office Contracts & Grants Univ. Acctng 3, 7, 9 Foundation Acctng 6

18. Which Funds Roll-Over/Carry-over?

19. State Appropriated Ledgers 2 & lower 3 Research Ledger 5 Trust Funds Upper 3, 6, 7 & 9 Never for regular state funds unless Legislature authorizes it but carries restrictions. F&A has more flexibility but also requires approval from Legislature. Lower ledger 3 accounts are allowed for funds collected in June to pay commitments in July. Requires prior approval from OSBM. Yes !! Determined by terms and conditions of funding agency .

20. Each account under each “group of funds” has a specific code that identifies the type of activity they serve.

21. Codes Purpose Codes: Purpose codes classify financial activities by function. These codes show up In Wolf Reports under “Program.” A complete listing of these codes and their respective description is available at: http://www.fis.ncsu.edu/controller/Procman/PCOA_IND.HTM

22. Some of the Most Common Codes in CED • 101 Regular Term Instruction = General academic instruction offered for credit through a regular academic department during a regular term or session.  Distance Ed funds are included in this category. • 102 Summer Term Instruction = General academic instruction offered for credit or non-credit through a regular academic department during a summer term or session. • 110 Organized Research = Research efforts conducted for the primary purpose of producing research outcomes. Ex: Most contracts and grants

23. 142 Community Services = Public services, whose primary function is not instruction and departmental research or organized research, directed to members of the community, i.e., persons external to the institution, and not classified elsewhere.  Ex = Pre College Program at FI • 152 General Academic Support = Academic and research administration, (e.g., college deans, faculty deans, and research deans), academic computing services (e.g. instructional computing and research computing). Ex = Model Clinical Teaching Program in CICE

24. Things to Keep in Mind When Managing Different Types of Funds • Transfer of $$ between different types of funds is not allowed. For example, you cannot transfer state appropriated funds to contracts and grants or trust fund accounts. However, transfer of expenditures such as: salaries and non-salary expenditures is allowed as long as it meets compliance, reasonable justification and can stand scrutiny and audit review. • Transfer of expenditures to and from state appropriated accounts must occur within the fiscal year in which the expenditure occurred. • Transfer of state appropriated funds from another department or unit on campus, or from another campus within the UNC system must be done through the Budget Office.

25. So, what happens when funds are received in the University? Where do they go and which office on campus handles these new funds? It depends…. • If it is a grant, the funding agency sends an award letter or e-mail that is received in Sponsored Programs. They process the award internally and prepare an award notification that is forwarded to Contracts and Grants for account set up.

26. If it is a state allocation or appropriation, it goes to the Budget Office who then works with the College to allocate the funds in a designated account. • If it is a gift, the gift is handled through the Development Office at the College level and then forwarded to University Development for official deposit in designated account.

27. State allocations/appropriations and contracts and grants awards funds must have a structured budget. The funds are distributed among specific “codes.” More codes

28. Account Codes = Object Codes Budgets are distributed among specific budget categories to classify the transactions: • 11XX = Non Teaching EPA • 12XX = SPAs • 13XX = Academic EPA • 14XX = Temporary Wages (Bi-weekly) • 18XX = Fringe Benefits • 19XX = Contracted Services • 59XX = Operating Budget Pool • 6XXX = Stipends, Tuition

29. Converting Funds * This line can only be increased “permanently” through special allocations (i.e Provost’s allocation) or state appropriations (i.e legislative increase).

30. Exercise

31. Exercise Scenarios: One-time needs: • 2 TAs at $15K each • 2 TAs and 1 RA $15K each • $ 80K Renovation • $ 25K Consultants Perm needs: • New faculty position at Assistant Prof level • .75 Bookkeeper

32. For Planning Purpose…..

34. I’m not sure what are all the accounts assigned to my department/unit. How can I find out? Easy! With Chartfield Inquiry Application

35. Chartfield Inquiry What is it ? • An application to retrieve all active and inactive accounts within one department or unit. • Retrieves information in a variety of ways, including wild card • Can download into an Excel spreadsheet. Where is it? It is in PS Financial, right above Wolf Reports option. Let’s go there !

36. Understanding Wolf Reports

37. Instructions to Get to Wolf Reports • Go to the NCSU Portal and login • Go to Financials • Go to Monitoring Tools and Reports • Go to Wolfpack Reporting System (WRS)

38. Which Report Should I use? Cool thing: All reports offer “drilldown” and can be downloaded into Excel.

39. Managing Financial Resources Approving and Monitoring Financial Activities, Who are responsible? Upper level administrators, responsible for budgetary management: deans, department heads, directors, and coordinators Budget Custodians

41. Internal Audit Tip • Assign duties to different individuals. This prevents one person from having both access to assets and the responsibility for maintaining the accountability for such assets. • No one should have complete control of any process. • Employees should not be in a position to carryout fraudulent activities and then be able to conceal the errors in the normal course of their duties. Relevant University References: • Monetary deposit process: University Policies, Regulations, and Rules (PRR) REG 07.30.03 “Receipt Centers – Operation and Use” • Segregation of duties in the management of trust funds: North Carolina State University Trust Fund Guidelines dated February 2008, Section Trust Fund Authority Requirements, Proper Segregation of Duties.

42. When approving expenditures, apply The “Appearance Test” • Always in agreement with program mission for type of fund. • Always provide a “direct” benefit to University, not an individual/employee. • How will this purchase look to external constituents? • How do I feel about it as a tax payer? Do I want my money spent this way? • Is this the kind of purchase that can make it to the front page of a newspaper? • Can it easily pass scrutiny? • Can I easily justify it or do I have to “build” a story around it? • Is it necessary to do the job? Or Is it just nice to have? • Always avoid appearance of poor management of funds as well as the reality of handling funds poorly.

43. Exceptions and Interpretations: Of course, there will be situations that will fall outside the guidelines. When this happens, please contact: Lili or Annie for state funds and trust funds Stephanie or Josh for contracts and grants accounts

44. Hopefully, prior to approving purchase!

45. On-line Approval: Vouchers, Requisitions, MarketPlace, Journal Vouchers, IDTs, HR actions • Purchases, transactions, and HR actions must have budget custodians or designees that provide prior approval. • Employees assigned to do on-line approvals must be knowledgeable of University rules and regulations and guidelines; and, must have attended University training provided by the Controller’s Office. • The person approving purchases should be different from the person involved with processing the purchase.

46. Levels of Authority CED support staff handle a variety of Financials and HR accesses. To better organize and structure the requests and the different levels of authority, each person working with financials and HR/Payroll activities in the College must complete: “Designated Levels of Authority for Financials and Human Resources form” Completed forms will be kept in the “personnel file” in the College Business Office (BCMS) to be made available to auditors during audit reviews. This form should be used for new employees when requesting on-line access. The form will be available on BMCS website.

47. Reconciliations All financial activities must be reconciled every month. http://www.fis.ncsu.edu/controller/monitoring_tools/Guide_ApprMonitor_DFAv3.pdf 1) Budgets/Allocations • Review the budget column in Wolf Reports to see if the budget has increased or decreased and understand why. • If there are differences, drill down to find out what caused the change. • CY 21 and CY 23 = Current Year Only • CN 24 and CN 26 = Continuing/Perm • FY 27 and FY 29 = Future Year Only • Read comment column for additional info • Make necessary adjustments to your spreadsheets.

48. 2) Labor Reconciliation (Salaries) Salaries and fringe benefits charges must be reviewed and reconciled every month. The review is performed to determine whether salary payments charged are for valid individuals working for the department, not terminated or on unpaid leave, that the amounts paid are accurate, and that the funding sources (accounts) charged are appropriate. Discrepancies must be reported to BMCS (Natalie Worth). 3) Non-Salary charges Non-salary charges must be reviewed and reconciled every month to ensure all charges are accurate and allowable using the new Reconciliation Departmental Online Monthly Activity Reconciliation (OMAR). The use of this system is the preferred reconciling method for all accounts in the College of Education.

49. Review of PCard Transactions: • The person reconciling the charges every month are responsible for ensuring the charges are: 1) appropriate 2) have been previously authorized by the head of the department or unit 3) there is sufficient documentation available to justify the charge • The monthly statements must be reviewed and approved by the cardholder’s supervisor.

50. Basic Spending Guidelines Where can I find do’s and don’ts? http://www7.acs.ncsu.edu/financialsvcs/SpendingGuidelines/Spending_Guidelines.pdf