Presentation on theme: "1 Basic Financial Workshop Available on Financial Services Website at"— Presentation transcript:
1 Basic Financial Workshop Available on Financial Services Website at
2 Basic Financial Workshop Douglas G. Belliston Director, Financial Accounting and Reporting Kevin L. Walker, Director, Financial Solutions
3 The joint mission of all BYU Financial Employees: Promote effective use of Universitys resources Protect the assets of BYU Recognize our obligation to all University stakeholders who provide and use its resources
4 Your Role in Internal Control Control and protect university assets, and promote their effective use
5 Why Control? "Controls protect weak people from temptation, strong people from opportunity and innocent people from suspicion. "Controls protect weak people from temptation, strong people from opportunity and innocent people from suspicion. (August1977 IIA magazine)
6 Internal Control Basics Segregation of duties: Separate the request, receipt, payment and review functions Dual signatures on all documents Knowledgeable approver, different from buyer or requestor Financial statement review by knowledgeable managers
7 Are YOU an Effective Control?
8 Financial Service Web Resources FS Web page: du/index.jsp du/index.jsp Navigation: BYU homepage Faculty & Staff, General Services Financial Services Bookmark it!
9 Financial Services Web Page Highlight Services Tab, Accounting sub-tab: Controllers Desk Reference Questions Funds Resources ($ support) that are classified into funds according to specified activities or donor objectives
10 Financial Systems PeopleSoft - accounting software General Ledger, HR, Payroll, Purchasing, Receiving, Asset Management, Accounts Payable Business Objects (BOb) – reporting software Flexible tool across multiple systems via the Web Extensity – travel approval and reimbursement Kronos – time management
11 Financial Systems – cont. Other limited use systems: Folio – searchable archived financial statements Imaging – imaged financial documents UCA – University receivable and billing system Cashnet – cash and credit card processing Purchasing Card P-card – limited use credit card purchasing tool
12 Fund Accounting Funds you will generally deal with: 11 Budgeted Support from Church 13 Academic Related Academic Businesses 15 Auxiliary Campus Business Operations 19 Designated Designated by Management 23 Restricted Restricted by Donors 31 Endowment Income/Spending Earnings from Endowments to be spent
13 Speedtypes & Accounts Speedtype Fund+Chem Engineering Account 6100 Supplies Expense Class (optional) FLSKS various classes may be used Speedtypes identify activities to be accounted for,8 digit long codes: 2 digit Fund number + 6 digit Department number -or- An 8 character Project number, beginning with a letter (accounting system ties project to the fund automatically) Accounts identify the nature of the item purchased or received Classes are optional user-defined identifiers Example Transaction: FLSKS
14 Payroll and Kronos Hiring, the basics: People may not work until formally HIRED Employment must get notice of Terminations Employee types: Faculty and Administrative Staff employees Student hourly Student assistant (contract)
15 Payroll and Kronos Staff Employees - must be paid for overtime over 40 hours per week Student Hourly Employees - must be paid for hours worked, and OT if > 40 hrs/week Kronos web based time entry and time clocks track hours worked
16 Payroll and Kronos Kronos System Web based time entry: Improved employee management and scheduling, identifies source of time recorded Allows office-based students/staff to record time from their computers Allows home-based workers to record time from home Others will use Kronos clocks
17 Payroll and Kronos Management of Student time Non-resident alien limited to 20 hours per week by Federal regulation U.S. resident studentslimited to 20 hours per week by University policy
18 Cash Controls at Brigham Young University
19 Good Cash Controls Provide a Safer Workplace for Everyone
20 Cash Controls – Safety Equipment for Those Handling Cash Custodianship of Cash Funds Segregation of Duties Reconciliation Proper Documentation Frequent Deposits
21 Cash Controls are Strengthened when Combined
22 Cash Controls Safekeeping of Cash Assigned cash custodian Single custodian responsible for cash box Ideally dual custodians to receive mailed cash/checks Issuance of receipts, receipt logs Provides proof to payee Documents payments receivedmatch to recorded cash Independent cash counts Periodic and unexpected counts by a non-custodian ensures controls are in place and working
23 Cash Controls Timely Deposits Frequent deposits Smaller, more frequent deposits are preferred because…. Less cash is exposed to risk of loss
24 Cash Controls Accurate Recording of Cash Transactions Cash receipt and recording Segregation of duties assures more than one person is involved in a transaction Documentation Proof of purpose, validity and accuracy of cash transactions Reconciliation Someone different than those that handle cash For a Summary of Cash Controls see
25 Purchasing & Vendor Payment
26 Purchasing We seek to obtain the Best Net Value for the University: We seek to obtain the Best Net Value for the University: -Quality-Service -Price-Standardization -Life-cycle costing-Local availability -Warranty-P-card acceptance -Discounts-Technical support -Freight costs-Training -Timely delivery-E-business ready
28 Purchasing Tools Fast Track Check Request Initiated only by designated, trained Fast Track Buyers Initiated only by designated, trained Fast Track Buyers Only used for specific categories of products or service (see Purchasings website) Only used for specific categories of products or service (see Purchasings website) Only for established Fast Track vendors Only for established Fast Track vendors
29 Purchasing Tools Purchasing Card (P-card) VERY flexible tool assigned to specific people to purchase many kinds of products (not for services) VERY flexible tool assigned to specific people to purchase many kinds of products (not for services) $2,000 transaction limit ( $20,000/mo.) $2,000 transaction limit ( $20,000/mo.) Not for travel (conference fees and first- night hotel are allowed) Not for travel (conference fees and first- night hotel are allowed) Electronically approved by cardholder and supervisor Electronically approved by cardholder and supervisor
30 Purchasing Tools Convenience Check Same rules as Purchasing Card Same rules as Purchasing Card May not be used where P-card is accepted May not be used where P-card is accepted Penalty for misuse Penalty for misuse
31 Purchasing Tools Purchase Orders (from Purchase Requisitions) Used for: Requesting Purchasing to locate and negotiate with suppliers Requesting Purchasing to locate and negotiate with suppliers Transactions larger than $2,000 where items not allowed by Fast Track process Transactions larger than $2,000 where items not allowed by Fast Track process Items not allowed by P-card (e.g. Hazardous materials) Items not allowed by P-card (e.g. Hazardous materials)
32 Purchasing Tools Purchase Requisitions:
33 Purchasing Tools Extensity Reimbursements System planned to go live during first quarter System planned to go live during first quarter Approved travel reimbursements Approved travel reimbursements Approved reimbursement to employees for personal purchase of business supplies when other payment options are not feasible (use of Purchasing-card, Convenience Check recommended) Approved reimbursement to employees for personal purchase of business supplies when other payment options are not feasible (use of Purchasing-card, Convenience Check recommended)
34 Purchasing Tools Corporate Travel Card Encouraged for business travelers Encouraged for business travelers Automatic download of transactions to Extensity for reimbursement Automatic download of transactions to Extensity for reimbursement Corporate liability so personal items should not be paid with this card Corporate liability so personal items should not be paid with this card –If inadvertently paid, may be excluded from Extensity reimbursement
35 Purchasing Tools Petty Cash Take money to purchase items where P- card cannot be used and return the receipt Take money to purchase items where P- card cannot be used and return the receipt Count of cash plus receipts always equal to total authorized Petty Cash amount Count of cash plus receipts always equal to total authorized Petty Cash amount Change Funds are NOT petty cash and authorized balance must ALWAYS equal count of cash
36 Purchasing Tools Agency Checks Check stock controlled by campus clubs and certain other areas Check stock controlled by campus clubs and certain other areas Funds NOT owned by University Funds NOT owned by University University provides accounting reports for transactions University provides accounting reports for transactions Check steward must control check stock under lock and key Check steward must control check stock under lock and key
37 Purchasing Tools Limited Purchase Drafts (LPDs) Department controlled check that is being phased out during first quarter of 2004 Department controlled check that is being phased out during first quarter of 2004 Was used for low dollar transactions and to reimburse for personal purchases of business supplies Was used for low dollar transactions and to reimburse for personal purchases of business supplies
39 Purchasing Tools Campus Purchase Orders (CPOs) Department initiated instrument to sell or buy items between two departments on Campus Department initiated instrument to sell or buy items between two departments on Campus Requires signature of both buying and selling departments Requires signature of both buying and selling departments
42 Services Air, rental car, hotel booking for all campus personnel, students, and departments Travel Accounting Passport processing, photos, forms, etc. Group travel support for Athletics, Travel Study, Study Abroad, Sports Tours, Performing Arts Cliq Book – a travel self-booking/search tool Searches all web reservations sites
43 Services Cont.
44 Travel System Extensity Travel System coming Planned first quarter 2004 Electronic Travel application approval and travel reimbursement Business reimbursement for authorized purchases on behalf of BYU Direct deposit to employee bank account But until system is live…..
45 How To Travel On Business
46 How To Travel On Business Cont.
47 Web Page Support
48 Meal Per Diem Calculation
49 Mileage Calculations
50 Frequent Questions How do I get my cash advance check? Can I buy airline tickets on the internet? Do I need to fill out a Travel Application? How do I get reimbursed for expenses? Can multiple travelers go on the same form? What if I do not have a receipt for a claim? Can a student get a cash advance? Can students and employees use BYU Travel for personal travel?
51 Basic Financial Workshop Douglas G. Belliston Director, Financial Accounting and Reporting Kevin L. Walker, Director, Financial Solutions