FY13 BFS Changes Training Presented by the Office of the CFO

1. FY13 BFS Changes TrainingPresented by the Office of the CFO Summer 2012 This presentation does not automatically advance. Click the Play button to go to the next slide. Last Revision: July 23, 2012

2. Course Outline - Introduction • INTRODUCTION • TEMPBUDG CHANGES • OPERATING TRANSFERS – NUTS AND BOLTS • FUND BALANCE ESSENTIALS • SNEAK PEEK: NEW REPORTS • APPENDIX

3. Course ‘Take Homes’ You should be able to answer these questions by course-end: • Why is BFS changing? • What isn't changing in BFS? • Where will TempBudg functions be performed in FY13 for many funds? • What are operating transfers and how do I use them? • What are interfund transfers? • How will I tell what my balance is without the Temporary Budget?

4. Why are we here today – Big Picture HOW?– Move the Temporary Budget ledger functions to new places: Transfers  Actuals ledger Planning  Cal Plan

5. Benefits to Units and Campus – BIG Picture  

6. Introduction How to Prepare: • Budget Journals in BFS • Financial Journals in BFS How to Utilize: • CalPlan, the new budgeting tool • CalRptg, the new reporting system What this course WILL NOT cover…

7. Four Concepts to Keep in Mind 1 NO CHANGE • in FY12 2 NO CHANGE • to Revenue or Expense in BFS Actuals • to TempBudg for some funds: • Contracts & Grants, Plant 3 NO CHANGE • to TempBudg functionality for many funds: • Planning  CalPlan • Transfer of Resources  Actuals 4 CHANGE!

8. Berkeley Campus Funds – BIG Picture Current Fund Group All Other Fund Groups All Current Funds except Contracts and Grants Agency Plant Loan Contracts and Grants

9. Section 2 – TempBudg Changes • INTRODUCTION • TEMPBUDG CHANGES • OPERATING TRANSFERS – NUTS AND BOLTS • FUND BALANCE ESSENTIALS • SNEAK PEEK: NEW REPORTS • APPENDIX

10. Department of Aviation Example – Actuals CENTRAL FUND – Summary Report Year-to-Date • In Actuals - Revenue and Expense are not changing • In Actuals - Revenue and Expense track external activity

11. Journals in Current Funds (Non-C&G) JOURNALS in Current Funds (Non-C&G)

12. Department of Aviation Example – TempBudg CENTRAL FUND – Summary Report Year-to-Date

13. Department of Aviation Example – TempBudg CENTRAL FUND – Summary Report Year-to-Date PLAN Carryforward Transfer within fund Transfers between Funds PLAN Transfer within fund

14. TempBudg Transformation CURRENT STATE FY13 FUTURE STATE TempBudg Activity New Activity Locations PLAN for Revenue and Expense PLAN for Revenue and Expense Transfers within fund PLAN for Operating Transfers Operating Transfers within fund by DeptID, CF1, CF2 NEW! New Account Series 7xxxx Transfers between Funds PLAN for Interfund Transfers Interfund Transfers between Funds by DeptID, CF1, CF2 NEW! Fund Balance Accts 3xxxx Carryforward July 1 PLAN for Beginning Balance July 1 Beginning Balance July 1 by DeptID, CF1, CF2 NEW! Fund Balance Acct 30000 CalPlan BFS Actuals

15. Department of Aviation Example – Crosswalk to FY13 Department of Aviation Example – Crosswalk to FY13 CENTRAL FUND – Summary Report Year-to-Date

16. Journals in Current Funds (Non-C&G)

17. Expense Adjustments vs. Operating Transfers Expense Adjustments Operating Transfers Move monies/resources internally Give money to another unit to spend on their operations (or between DeptID, CF1, CF2 values in own unit) Things to consider when you just can’t tell… • Relationship to unit’s purpose • Fund restrictions • Dollar amount • ASK! • Underlying external transaction • Correct expense account coding, or move cost to ‘where it belongs’ VS.

18. TempBudg Changes and Your Department Think of a few examples of typical TempBudg transactions you prepare in BFS, or you look for in BAIRS. How would you categorize each of them? • (Select all that apply)

19. Section 3 – Operating Transfers • INTRODUCTION • TEMPBUDG CHANGES • OPERATING TRANSFERS – NUTS AND BOLTS • FUND BALANCE ESSENTIALS • SNEAK PEEK: NEW REPORTS • APPENDIX

20. Operating Transfers – Recap • New account range for operating transfers (7xxxx) • Valid only in Actuals ledger with Current, non-C&G funds • Replace most TempBudg transfers in those funds • Journal uses same fund number for debit and credit

21. Operating Transfer Account Series • 71xxx – Campus Support • 72xxx – External Transfers • 73xxx – To/From Other Divisions • 74xxx – Internal DIVISION Transfers • 75xxx – Internal DEPARTMENT Transfers A complete listing of new accounts is available at http://budget.berkeley.edu/

22. Visualizing Account Hierarchy Visualizing Account Hierarchy BHS 6/15/12

23. New Operating Transfer Account Series For Use By Central Campus Only Central Campus Only • 71xxx – Campus Support • 72xxx – External Transfers • 73xxx – To/From Other Divisions • 74xxx – Internal DIVISION Transfers • 75xxx – Internal DEPARTMENT Transfers Divisions and Depts Divisions and Depts Divisions and Depts • Special cases: • 731xx – Campuswide Distributions • 741xx – To/Fr Dean/AVC Office

24. Operating Transfers - Chart of Accounts Extract Partial listing of accounts: *cf 7/1 Adj Budget The full listing of operating transfer accounts is available at the Campus Budget Office website at http://budget.berkeley.edu/

25. Example 1 – Cascade Effect – TAS Accounts Partial Summary Reports Partial Journal Lines 1 2 3 Cascading can be applied to block grants, faculty start up, etc.

26. Example 2 – Where Did the July 1 Adj Budget Go? Partial Summary Reports Partial Journal Lines This is NOT a cascade example. These are separate transactions. Note: Regents Endowments are located in the 72xxx series.

27. Related Changes – New and Improved Accounts NEW REVENUE ACCOUNTS Gift Fee (contra revenue) 44004 Assessment on unrestricted funds 44015 Assessment on restricted funds Revenue from UCBF Unrestricted Restricted Donation 44001 44012 Endowment payout 44002 44013 Other 44003 44014

28. Operating Transfer Controls BFS System Controls • Location-Account-Fund combos in 7xxxx series must be in balance • 7xxxx can only be used with Current Funds that are not C&G YOU! • Don’t use 71xxx, 72xxx accounts • Only use 731xx if appropriate • Identify as internal vs. external to your Division/Dept - and code accordingly • Know when to use expense transfer vs. operating transfer • Campus best practice: Unit with the debit prepares the journal

29. Operating Transfer Take Homes • Operating transfers move monies within the campus, within a given fund • These transfers use a new account series (7xxxx) in the Actuals ledger • In your journals, each location-account-fund combo must balance • i.e. Debits = Credits • The account hierarchy allows more meaningful summary reporting!

30. Important Changes in Program Code Use WHY? It supports the move to high level Strategic Planning and it reduces unproductive journaling

31. Operating Transfers and Your Department Think of some typical TempBudg operating transfer transactions you prepare in BFS or look for in BAIRS. In FY13, what account series would be used for each? • (Choose from the following:)

32. Section 4 – Fund Balance Essentials • INTRODUCTION • TEMPBUDG CHANGES • OPERATING TRANSFERS – NUTS AND BOLTS • FUND BALANCE ESSENTIALS • SNEAK PEEK: NEW REPORTS • APPENDIX

33. Fund Balance Accounts - Review • Fund Balance accounts are in the 3xxxx series • Starting in FY13, in the Actuals ledger (for Current, non-C&G funds): • Dept Beg Balances are coded in account 30000 • Interfund transfers will be coded with Dept chartstrings

34. Interfund Transfers Quick Reference – Select Accounts * Beginning July 2012 go to http://controller.berkeley.edu/ for instructions and forms ** Contact: Principal Analyst Rico, luis_rico @berkeley.edu, or Director Martinez, jpmartinez@berkeley.edu

35. Example – Current Fund Transfers to Plant Partial Summary Reports Partial Journal Lines in Actuals

36. Fund Balance Accounts Controls BFS System Controls • TempBudg: Journals with fund balance accounts require central campus approval • Actuals: NO automated controls YOU! • Don’t adjust Beginning Balance amounts – account 30000 • For interfund transfer accounts • Don’t use yourself unless authorized • Follow campus guidelines • ASK!

37. Fund Balance Take Homes • Interfund transfers occur in the fund balance account series (3xxxx) in the Actuals ledger • Beginning in FY13, the Current fund (non-C&G) side of the transfer will be coded with department chartstring values, which will allow for more meaningful summary reporting • Transfers between funds can be complex and typically require central campus involvement

38. Section 5 – Sneak Peek: New Reports • INTRODUCTION • TEMPBUDG CHANGES • OPERATING TRANSFERS – NUTS AND BOLTS • FUND BALANCE ESSENTIALS • SNEAK PEEK: NEW REPORTS • APPENDIX

39. BAIRS Reports: What is changing in FY13? For Current funds (excluding contracts and grants) Some updated versions and new reports are needed Why? • TempBudg is going away for these funds • Reports need to reflect new elements and formats in Actuals • Operating transfers • Interfund funds • Beginning balance • Opportunity to improve existing data presentation

40. BAIRS Reports: Change Process Focus group formed - department users of BAIRS reports Tasks include: • Identify most important existing reports and needed changes • Brainstorm new reports and report design • Prioritize – develop first vs. develop later Programmers have begun development work Discussion underway on reporting needs for Faculty/PI reporting Education strategy under development

41. BAIRS Reports: What will change? Focus Group is still at work, but an early glimpse at what might change… • NEW FOLDER in BAIRS Reports Directory:

42. BAIRS Reports: What will change? (Cont’d) • DASHBOARD improvements:

43. BAIRS Reports: What will change? (Cont’d) • MODIFY existing reports, such as Customer Report by Fund: Changed Expenses to Actuals Added Ending Balance

44. BAIRS Reports: What will change? (Cont’d) • NEW REPORT FORMATS with transfers, beginning balance in Actuals:

45. BAIRS Reports: When are they happening? • New reports and major changes to existing – beginning August 2012 • Priority of development based upon • Usage • Focus group input • Management reporting needs Stay Tuned! More information to follow in August 2012.

46. Existing BAIRS Reports Until the new reports are ready … Many existing BAIRS reports* can be used: Operating Transfers: • Select “Range” from dropdown menu • Input desired 7xxxx values • Choose ‘Value List’ for individual accounts Interfund Transfers/Beginning balance: • Select “Range” from dropdown menu • Input desired 3xxxx values • Choose ‘Value List’ for individual accounts • Some menus also include ‘3 – Fund Balance’ * Including GL Expanded Detail, GL Detail Standard, GL Sum by Five Chartfields

47. Existing BAIRS Reports Availability Existing BAIRS Reports continue to be available: • For all Funds • Most useful for • Contracts and grants • Agency, Plant and Loan funds • Historical reporting for Current, non-C&G

48. Course ‘Take Homes’ • Why is BFS changing? • What isn't changing in BFS? • Wherewill TempBudg functions move to in FY13 for many funds? • What are operating transfers and how do I use them? • What are interfund transfers? • How will I tell what my balance is without the Temporary Budget? Are you now familiar with the answers to these questions?...

49. Next… • Next steps: • Take the on-line quiz • Go to the blu portal and select Learning Center course BECBO002 • Still have questions? Sign up for one of the Advanced Q&A sessions • Go to the blu portal and select Learning Center course BECBO003

50. Section 6 - Appendix • INTRODUCTION • TEMPBUDG CHANGES • OPERATING TRANSFERS – NUTS AND BOLTS • FUND BALANCE ESSENTIALS • SNEAK PEEK: NEW REPORTS • APPENDIX