Understanding UNT Budget Basics

1. Budget Basics UNT Budget Office budget.unt.edu

2. Agenda

3. Objectives Seven training objectives. Distinguish between State, Local, Auxiliary, and Restricted chartstrings, Identify and describe the differences between a project / departmental chartstring, Identify and describe the differences between budgetary and non-budgetary chartstrings, Identify and describe the difference between centrally and non-centrally funded chartstrings, Learn the concept of "budget checking" and how that differs by chartstring type, Define what an account is, understand how it differs from a chartstring, and be able to explain account hierarchies, and Identify where to find budget resource documents online.

4. Financial Resources

5. Financial Resources The University of North Texas has 4 primary categories (sources) of funding. Each category is governed by specific rules. State Funds (Educational & General, E&G). Funds given by the state of Texas. At UNT, State Funds are primarily used for salaries. Designated Operating Funds (Local). Funds that are not State Funds, Auxiliary Funds, or Restricted Funds. Local Funds primarily come from tuition and fees paid by students. These Funds also include, but are not limited to, revenues related to camps, conferences, and events. Auxiliary Funds. Auxiliary Funds come from self-supporting, business enterprises that provide services to students, faculty, staff, and the general public. Auxiliary units can have both internal and external customers. Examples include: housing, dining, parking, and transportation. Restricted Funds. Restricted funds are given by donors or external agencies, for nothing in return, for specific purposes. Examples include grants, gifts, and endowments.

6. Chart of Accounts (COA)

7. Chart of Accounts The Chart of Accounts refers to the 9 individual fields that make up a chartstring.

8. Chartfield: GL Business Unit The GL Business Unit reflects the UNT System Component

9. Chartfield: Organization Department Organization Department represents the academic or operating unit responsible for the transaction. Signature authority is held at the Org Dept level.

10. Chartfields: Fund Category & Fund Fund Category identifies the source of money: E&G (state), Designated (Local), Auxiliary, or Restricted. Fundidentifies the different types of money within each source.

11. Chartfields: Fund Category & Fund • AUXILIARY • 120 Auxiliary • 121 Auxiliary - Projects • E&G (STATE) • 105 Education & General • 106 Education & General - Projects • DESIGNATED (LOCAL) • 200 Designated Operating Managed • 202 Designated Operating General • 201 Designated Operating - Project RESTRICTED Fund Cats – VARIOUS FUND CAT • 800001 GRD General Revenue Dedicated • 800003 Laboratory Fees • 805009 Core Research • 805038 Higher Education Fund (HEF) • 349000 Schol/Rest-Departmental • 190000 Federal Direct • 195001 State of TX Direct • 200010 DepOp/End-Bill & Ann Stokes • 810002 Auxiliary Union • 810004Auxiliary Parking • 810020Auxiliary Housing • 810030Auxiliary Dining • 830001 Tuition • 880001 Instructional FFF • 830029 Designated Oper-Central Alloc • 840001 Faculty Discretionary • 850000 F&A Recovery Fund • 885000 Departmental Discretionary FUND

12. Chartfield: Function Function designates the purpose of the expense. It is required for federal, state, and other reporting.

13. Chartfield: Function Function classes and descriptions are set by the National Association of College and University Budget Officers (NACUBO). The Functions applicable to UNT are:

14. Chartfield: Project Projects are used to track activities with a finite life. Signature authority is held at the project level. Multiple chartstrings (and funding sources) can be tied to a single project code. Bonus Fields!

15. Chartfields: Program & Purpose Program is used to track formal institutional programs and initiatives. Purpose is used to track informal activities.

16. Chartfield: Site Site identifies the physical location at which a transaction is occurring.

17. Understanding Chartstrings Each unique combination of chartfields creates a separate chartstring. This means that chartfield codes can be used by different Org Depts without the Budgets being combined.

18. Understanding Chartstrings • The PeopleSoft System will recognize a chartstring as valid so long as the first five fields are present: GL Business Unit, Org Dept, Fund Cat, Fund, & Function. These are the “required” fields. • The two chartstrings below share all the same fields except for Program. • Assume that a $3,000 requisition is being coded to 6600 First Flight Week but the program code is inadvertently left off. • Will the system allow the requisition to go through? • To which chartstring will the requisition post? • What if the first chartstring had a budget less than $3,000K?

19. Accounts Chartstrings are used to identify the “bank account” paying for the expense. Accounts are used to identify what was purchased, or what type of revenue was received.

20. Chartstrings & Accounts in Cognos In Cognos, the chartstring is listed across the top of the Budget Summary. The Account is listed in the first column of the Budget Summary. Chartstring Account

21. Chart of Accounts Hierarchies • Each chartfield has a hierarchy structure. • There is a base chartfield level (all numeric characters) where transactions are coded. • Each base chartfield value rolls-up to a higher level. These levels begin with alpha-characters: “A,” “B,” “C,” etc.

22. Chart of Accounts Hierarchies Account Hierarchy: Account B5010 Salaries & Wages

23. Chart of Accounts Hierarchies Org Dept Hierarchy: B15000 Sr VP Finance & Administration

24. Chart of Accounts Hierarchies • The roll-up structure for each chartfield affects workflow routing or annual reporting. • Org Department Hierarchies: • The system allows for a holder at each of the A, B, C, D, and E levels. • The hierarchy levels affect ePar (payroll) and ePro (procurement) approval routing • Fund Category, Fund, and Function Hierarchies: • The different hierarchy levels affect how the transactions are reported on UNT’s annual financial statements.

25. Chart of Accounts Hierarchies • Project, Program, Purpose, and Site Hierarchies: • Most fields are used for internal tracking. • A limited number of values affect how the transactions are reported on UNT’s annual financial statements. • Account Hierarchies: • Used to record budget categories • Affects Board of Regents quarterly variance analysis reporting • Affects Budget Checking for requisitions

26. Questions?

27. Budget 101

28. Chartstring Types • There are two types of chartstrings: Departmental Chartstrings and Project Chartstrings. • Departmental Chartstrings • Chartstrings do not contain a project code. • Reporting is broken out by fiscal year. • Project Chartstrings • Chartstrings contain a project code. • Used to track activity that has a finite life. • Reporting is life-to-date which means reports cannot be run for a particular year. • Examples: Grants, Faculty, Construction, Internally funded research.

29. Chartstring Types Departmental chartstrings are further broken out into Budgetary and Non-Budgetary. • Budgetary Chartstrings • Budgetary Chartstrings are those for which the budget can be reasonably guaranteed and estimated year over year. • Balances may or may not rollforward. Depends on the Fund. • Examples: State Appropriations, Tuition, Fees, Summer Camps, Parking, Housing • Non-Budgetary Chartstrings • Non-Budgetary Chartstrings are those for which the budget cannot be reasonably guaranteed and estimated year over year. • Funds rollforward. • Examples: Gifts, one-time speaking engagements, F&A, royalties

30. Chartstring Types Departmental chartstrings can be Centrally Funded or Non-Centrally Funded • Centrally Funded chartstrings are those funded by UNT. They contain the following Fund Cat & Fund combinations. • Non-Centrally Funded chartstrings are those funded by the Department (i.e. all other chartstrings). The department is responsible for generating sufficient revenues to cover its expenses.

31. Chartstring Types Overview of chartstring types.

32. Chartstring Types • AUXILIARY • 120 Auxiliary • 121 Auxiliary - Projects • E&G (STATE) • 105 Education & General • 106 Education & General - Projects • DESIGNATED (LOCAL) • 200 Designated Operating Managed • 202 Designated Operating General • 201 Designated Operating - Project RESTRICTED* 303Restricted Expendable 304 Restricted Expendable Projects 401 Sponsored Restricted 400 Sponsored Restricted-Projects Each Fund Category can only have one chartstring type assigned to it: Departmental-Budgetary: Fund Cats 105, 120, 200(Blue) Departmental-Non Budgetary: Various Fund Cats. Most common Fund Cats 202 & 303 (Green) Project: Various Fund Cats. Most common Fund Cats 106, 121, 201, & 400(Orange) FUND CAT *There are many Restricted Fund Categories. Only four examples are shown.

33. How to Read a Chartstring In addition to answering the questions of who, how, why, and where, the Chart of Accounts provides insight as to whether the chartstring: Is Budgetary, Non-Budgetary, or a Project, Is funded Centrally or Non-Centrally, and Rolls Forward or is swept (closes) at year end.

34. Budgetary Chartstrings • Budgeting occurs at the D-Level • Individual D-account lines should carry a positive balance. • Budget checking occurs at the C-Level

35. Non Budgetary Chartstrings • Budgeting does not occur. The amount in the “Budget” column simply indicates the amount of funds that rolled forward from the prior year. • It doesn’t matter if individual account lines are negative as long as the total balance is positive. • Budget checking occurs on the chartstring total.

36. Columns on the Cognos Report The Actual, PreEncumbrance, and Encumbrance columns reflect stages of an expense.

37. Helpful Documents Budget Website > Resources > Documents Budget Management Documents • 1. Valid Fund Category & Fund Combinations • 2. Requisition Category Codes • 3. Closing Rules • 4. 9.2 Budgetary Accounts • 5. Common Terms • 6. Common Journal Headers • Chartfield Values & Trees

38. Questions?

39. Appendix: Chartfield Setup Change Form

40. Overview • A Chartfield Setup/Change Form is used to create or edit an existing field, not an entire chartstring. • Creating Chartstrings • Chartstrings are “created” once they are transacted on for the first time. • Revenue, Expense, ABA, Journal Entry • Inactivating Chartstrings • Chartstrings are “inactivated” once they carry a zero balance.

41. Overview Prior to submission, visit the Budget Websiteto view values that already exist: ● Fund ● Project ● Purpose ● Function ● Program ● Site Once the field is created, the department is responsible for setting up the chartstring. The chartstring will appear in COGNOS within 24 hours of the first transaction posting in PeopleSoft.

42. Holder Changes • Grants – NGRCT Projects • Contact the Office for Grants and Contracts Administration (OGCA) (i.e. the Research Office) for assistance • All other Holder Changes • Email the Budget Office. • CC the current holder and the new holder • Identify the Org Dept Number and Name • Include the Name and Empl ID of the current holder and the new holder • Indicate the Effective Date

43. Holder Changes – Example Email • TO: Budget.Office@unt.edu • CC: Jane.Smith@unt.edu , John.Smith@unt.edu • Please update the Org Dept Holder for 151210 Movie Department from Jane Smith(10300001) to John Smith (10400020) effective 09/01/2021.

44. Thank You.