Budget Processes 201S / 202D

1. Budget Processes201S / 202D

2. Welcome and Ground Rules • Have fun and enjoy the opportunities we have to contribute to SBBC’s future success! • Please turn off or silence cell phones and pagers • Please do not read or send email messages during class time • Respect those speaking and asking questions by keeping side discussions to a minimum • Please do not interrupt the person speaking • We will start, break, and end on time • All unanswered questions will be placed in the “Parking Lot” and answers will be distributed later

3. Logistics Before we get started ...

4. Classroom Materials Exercises (Let Me) BRITE Concepts (Tell Me) Demonstrations (Show Me)

5. Budgeting Execution Roles BRITE has created roles to define: • Who is responsible for the tasks within a business process • Who has access to perform those tasks in the BRITE system • Who needs what type of training • Roles involved in the End User Budget Execution process: • Budget Office • Budgetkeepers • Principals / Department Heads • Area Business Analyst (ABA)

6. What are Roles ECCRole SBBC Job Initial Mapping Budgetkeeper Process Map Mapping to Individual Transfer budget Budget Review END Source: Doc. Review Budgetkeeper Office Mgr

7. Budget Processing for End Users • Budget Prep involves allocating budget resources for the purpose of financing persons, positions, purchasing services or equipment. • Budget Prep is done in Integrated Planning (IP) • Upon approval projected budgets are retracted from IP into ECC. • Budget Execution involves the transferring of budget resources from and to different budget areas, and reserving budget funds for an anticipated future need. • Day-to-day transactions such as budget transfers and funds reservations will be accomplished in ECC.

8. Budget Preparation Process Data used for budget prep is placed in BI B I Locations prepare and submit budgets 1 6 Schools prepare Membership & FTE Projections in IP; it gets reviewed by ABAs 2 Budgets reviewed and approved in IP 7 Budget data from prior year(s) and current year placed in BI 3 B I Budget uploaded to ECC 8 Growth Budget requests submitted by departments Supplements, returns and transfers processed as needed (see note below) 4 9 Positions added/changed per Org Chart/Growth 5

9. Course Objectives At the end of this course participants will be able to: • Describe the various budgeting codes associated with Funds Management (FM) • Process budgetary resources in ECC using transaction “Budgeting Workbench” • Understand the process for budget supplements, returns and cross-activity, cross-fund or cross-location budget transfers • Create and maintain Funds Reservations, understanding their use and impact on spending controls • Access and analyze documents in Funds Management (FM) • Access and analyze Fund reports in ECC

10. Agenda

11. Unit One Business Intelligence Integrated Planning (BI-IP) and Funds Management (FM) Functions and Integration

12. Lesson Objectives Upon completion of this lesson, participants will be able to: • Describe the role the BI-IP client plays in the budgeting process • Understand how BI-IP and ECC-FM interact • Describe the budget prep to budget execution process

13. SAP Acronyms

14. BI-IP Client / ECC Client FM Interface • The budget process consists of two separate systems, which integrate together: • IP—Used for budget preparation and approval • ECC—FM/GM modules are used for budget execution and control • Once a budget has gone through the preparation and approval process in BI-IP, it will be retracted (downloaded) into the ECC client into: • GM—For grant relevant budgets. GM budget data flows down to FM to form the consolidated budget in ECC • FM—For all other budgets. • Periodic budget amendments as well as budget control is facilitated in FM (and GM, if applicable). Expenditures posting in various modules (MM, HR, FI) impact the budget in ECC.

15. BI-IP The “Integrated Planning” portion is used to enter budget data. The “Business Intelligence” portion runs reports. BI-IP (read/edit data) BI (read onlydata) Annual Budget Planning Data is Entered Generate Reports ECC ECC Updates BI Data Nightly with Transactional Data IP Updates SAP ECC as Needed with Plan Data

16. Review • Budget Information transfers from ECC to BI nightly? True / False • The acronym GM states for? • Funds Management • Grants Management • Human Resources • General Maintenance • Due to the fact that actual data is exchanged on a nightly basis, the Information contained in BI is considered ____________________________? • Irrelevant • Out dated • Near real time • None of the above • Once a budget has gone through the preparation and approval process in BI-IP, it will be retracted (downloaded) into the ECC client into_______________________? • GM – For grant relevant budgets.   • FM – For all other budgets • Both a and b

17. Questions?

18. Agenda

19. Unit Two Funds Management Master Data

20. Unit Objectives At the end of this unit participants will be able to: • Identify new terms and concepts associated with Funds Management and their relation to MSA objects, where possible • Display FM Master Data including: • Fund • Funds Center • Functional Area • Funded Program • Commitment Item • Grant * • Explain the use of FM Master Data Groups

21. Funds Management Data Funds Management Data Categories: Organizational Data Master Data Transactional Data • Funds • Functional Area • Funds Center • Funded Program • Commitment Item • Grant • Budget Amendments • Funds Reservations • Actual Postings from other modules * • FM Area (SBBC) * Actual Data from other modules will flow into FM as transactional data: Purchase Requisitions, Purchase Orders, Financial and HR Postings

22. FM Master Data Overview • Master Data records are created and stored as electronic records and play a key role in the core budgeting process • Master Data records include items such as: • Master Data records are highly centralized • The Budget Office is responsible for creating and maintaining FM Master Data records

23. FM Master Data: Maintenance • Master Data maintenance will be limited to a few individuals. The Budget Office will be responsible for maintaining all FM master data records (FM Area, Fund, Fund Center, Commitment Item, Functional Area, and Funded Program) and FM derivation rules. • Capital Budget will also maintain Funded Programs specific to Capital Projects • Standard Master Data request forms will be designed and used when requesting new master data. Forms will be completed and sent to the Budget Office for creation or maintenance.

24. FM Organization Data: FM Area FM Area A closed system for funds management, budgeting and budgeting execution. Contains the settings that impact master data and transaction data within that area. There will only be one FM Area: SBBC

25. FM Master Data: Fund Fund • Funds are the means to account for the School Boards’ various resources. School and Department day-to-day expenditures are normally charged to General Fund 1000

26. FM Master Data: Fund Fund Legacy ECC SAP Fund = 100 0 MSA Fund = 100 General Fund General Fund

27. FM Master Data: Fund Key Changes • Funds are now four digits long • Funds will be created and maintained by the Budget Office in SAP • New Fund for Summer School (1040) replaces Fund 100 and Use 1 or 3 • Elimination of Fund 199 • Budget will be loaded in May for next fiscal year and PO will consume the following year’s budget • Grant Funds have been consolidated and renumbered

28. FM Master Data: Fund—MSA vs ECC Sample

29. FM Master Data: Fund Center • Funds Centers represent areas of responsibility for budgetary monitoring and control at SBBC. • is equivalent to a location or department • captures “where” the costs are incurred • equivalent to a Cost Center in SAP’s Controlling module • A Cost Center is a unit of responsibility for capturing actual cost in Controlling (the CO module). There is a one-to-one relationship; there will be one Cost Center which will match to one Funds Center. • During actual postings in SAP, the Fund Center will not be entered. It will be derived from: • Cost Center • WBS Element (Capital Project) • Internal Order (Department specific program)

30. FM Master Data: Fund Center • All locations are assigned a Business Area for security control. • The business area number is new to SBBC and is the first 4 digits of the Fund Center/Cost Center. • Each school will have its own specific Business Area assigned that must be combined with the correct location number in order for an action to take place in SAP. • Some departments will have their own Business Area. Others within the same division will share a Business Area.

31. FM Master Data: Fund Center Legacy: Location = 1851 - Royal Palm E Type = 1 - School Type (Elementary) ECC: Funds Center/Cost Center = Business Area (1-4) + Type (5) + Location (6-9) + 0 Funds Center/Cost Center =3315 1 1851 0 (10 digits)

32. FM Master Data: Functional Area

33. Accounting String Comparison Functional Area Legacy: Function = 5103 - 9–12 Basic Activity = 00000 - Operating ECC: Functional Area = Function + Activity followed by 7 zeros Functional Area = 5103 00000 0000000 - 9-12 Basic (16 digits)

34. FM Master Data: Commitment Item

35. Accounting String Comparison Commitment Item Legacy:Class = 5 Expenditure Object = 511 - Supplies Commitment item =Class+Object Commitment Item =55110000 (8 digits)

36. FM Master Data: Funded Program

37. Accounting String Comparison Funded Program – e.g. Grant Legacy:Activity = 27615 ECC: Grant Funded Program = Grant Type (1) +Location Managing Grant (2-5)+Grant Number (6-9) Grant Funded Program =B97790001* Head Start * Example of FM budget control at grant level

38. MSA-ECC Crosswalk

39. FM Master Data List • Virtually all FM Master Data records can be displayed in a report: • Funds Center / Commitment Item / Functional Area / Funded Program Remember: Locations are identified by the 6th – 9th digit of the Funds Center Number. Deerfield Beach Elm - 0011 Bus. Area: 1320 = FNS 3101 = General School Deerfield Beach Elementary - 0011

40. Review • A new budget code that is 4 digits in length? • Functional Area • Commitment Item • Funds Center • Fund • Function + Activity followed by 7 zeros = ? • Functional Area • Commitment Item • Funds Center • Fund • Business Area (1-4) + Type (5) + Location (6-9) + 0 (10) = ? • Functional Area • Commitment Item • Funds Center • Fund • Class + Object = ? • Functional Area • Commitment Item • Funds Center • Fund

41. Questions?

42. Agenda

43. Unit Three FM Concepts and Changes

44. Lesson Objectives • Upon completion of this lesson, participants will be able to: • Describe an FM Account Assignment • Understand the different types and use of FM Addresses • Understand the new process for “Fund 199” purchases • Describe ECC’s Automatic Budget Posting use at SBBC • Understand the budget version concept

45. FM Concepts and Changes Account Assignment and Addresses • An FM Account assignment represents the combination of all of the following: • Fund • Fund Center • Functional Area • Funded Program (if relevant) • Commitment Item • Grant (if relevant) • There are three types of “addresses” in FM: • Budget Address: where the budget is appropriated • Posting Address: where expenditures are recorded • Availability Control (AVC) Address: where budget control occurs • An address is comprised of a unique FM account assignment

46. FM Concepts and Changes FM Addresses Posting addresses (PA) and Budget Addresses (BA) can be mapped to different account assignments for budget control. For example (for a school): * For Departments: Budget Address and Posting Address levels use the 3-digit Commitment Item 55110000

47. FM Concepts and Changes – Automatic Budget Postings: Revenue Increasing Budget (RIB) • The RIB functionality will be used in situations where cash receipt posted as revenues will automatically create supplemental expense budget to predefined expenditure budget addresses (once cash receipt entry is posted) • Two types of RIB: • Advance appropriations: Additional budget will be created automatically and available once cash receipts exceed the amount of the advanced appropriations • Will be used for various fee based services such as Aftercare, Commercial Foods and Fee Support. • Miscellaneous Revenues (no advances): Additional budget will be created automatically and available once cash receipts are posted. Amount of budget will equal the cash receipt. SBBC will utilize Automatic Budget Postings (ABPs) for Revenue Increasing Budget (RIB)

48. FM Concepts and Changes – Automatic Budget Postings: PO Carry forward Budget • SBBC will also utilize Automatic Budget Postings (ABPs) to return unused budget for carry forward POs • Prior year POs, along with the associated budget, will be automatically carried forward to the next fiscal year (under a separate budget type – YECB Residual Budget Carry forward) (Year End Carry forward Budget) • If the PO is subsequently closed or reduced in the new year, the system will create an ABP to “return”, in part or in full, the budget that was originally carried forward with the PO • Equivalent to the current Use 5 POs in MSA

49. Budget Versions • Budget Versions – Permits two or more sets of budget data for the same object. • There is only one active version – Version “0” • Version “0” = original budget + supplements – returns +/- transfers – lapses • Budget versions can be used as a snap shot in time for a particular budget. For example: • ORG (Frozen) - Original Budget • ADP (Frozen) - Board approved after 2nd Hearing • OCT (Frozen) - FTE October Adjustments; schools only • FEB (Frozen) - FTE February Adjustment; schools only • Information saved in a particular budget version can be retrieved for future analyses, reporting and planning purposes • IMPORTANT – The Availability Control (AVC) will only control budget resources in Version “0”. Locations will run reports with budget version “0”

50. Review • An FM Account assignment represents the combination of all of the following: Fund / Fund Center / Functional Area / Funded Program (if relevant). True/False • What are the two types of Revenue Increasing Budget (RIB) • Advance appropriations & Miscellaneous Revenues (no advances): • Commitment Item & Funds Center • Fund & Miscellaneous Revenues (no advances) • Which one of the below answers is not a type of “addresses” in FM? • Posting Address: where expenditures are recorded • Budget Address: where the budget is appropriated • Availability Control (AVC) Address: where budget control occurs • Functional Area / Commitment Item / Funds Center • SBBC will utilize Automatic Budget Postings (ABPs) to return unused budget for ______________. • All Purchase Orders • For Unavailable Funds • To retract budget information] • Carry forward POs