Presentation on theme: "FINANCIAL SERVICES BUDGET DEPARTMENT BUDGET 101"— Presentation transcript:
1FINANCIAL SERVICES BUDGET DEPARTMENT BUDGET 101 February 27, 2012
2BUDGET DEPARTMENT Marilyn Farrell, Budget Director x8012Jennifer Eaton, Budget Coordinatorx8024Patty Epps, Position Controlx8122
3ACCOUNT CODE STRUCTURE GAAP and Legal ComplianceGuidelines for financial accounting and reporting are derived from generally accepted accounting principles (GAAP).School districts are required to adhere to GAAP.The Texas Education Code (TEC) and other state statutes contain the legal requirements for public school finance, accounting, budgeting and reporting.
4ACCOUNT CODE STRUCTURE FUND CODEFUNCTIONOBJECTSUB-OBJECTORGANIZATIONPROGRAMACTIVITYSOURCEPROJECT*Source: Budget Management Guidelines and Procedures document available for download on the Budget website
5ACCOUNT CODE STRUCTURE FUND CODE - A fund (3 digits) is an accounting entity with a self-balancing set of accounts recording financial resources and liabilities. The fund's purpose can be established by the state or federal government as well as the school district.EXAMPLES OF FUND TYPESGeneral Fund (Fund 199)Special Revenue Funds (Funds 200 – 499)Federal (Funds 200 – 379)State (Funds (380 – 459)Local (Funds (460 – 499)Capital Projects Funds (Funds 600 – 699)Internal Service Funds (Funds 750 – 799)Fiduciary Funds (Funds 800 – 899)*Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.
6ACCOUNT CODE STRUCTURE FUNCTION - A function (2 digits) represents a general operational area in a school district and groups together related activities. Most school districts use all of the functions in the process of educating students or organizing the resources. For example, in order to provide the appropriate atmosphere for learning, school districts transport students to school (function 34), teach students (function 11), feed students (function 35) and provide health services (function 33). Each of these activities is a function.SUMMARY OF COMMONLY USED FUNCTIONS11 Instruction12 Library13 Staff Development23 Campus Administration31 Counselor33 Nurse34 Transportation to/from school36 Extracurricular41 General Administration5 1 Maintenance52 Security53 Data Processing61 Community Services*Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.
7ACCOUNT CODE STRUCTURE OBJECT - An object code (4 digits) identifies the nature of an account or transaction. The school district's accounting records are to reflect expenses at the most detailed level, as depicted in the chart of accounts for accounting and Public Education Information Management System (PEIMS) reporting (actual data) purposes.SUMMARY OF COMMONLY USED OBJECT CODES6100 Payroll - Common Object Codes6112 – Substitutes for Teachers/Professionals6118 – Teacher/Professional Extra Duty Pay6121 – Support Personnel Extra Duty6122 – Substitutes for Support Personnel/Temps614X – Payroll Benefit Accounts*Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.
8ACCOUNT CODE STRUCTURE SUMMARY OF COMMONLY USED OBJECT CODES (cont’d)6200 Services – Common Object Codes6239 – Education Service Center6249 – Equipment Repair Contracts6269 – Rentals/Operating Leases6291 – Consulting Services6299 – Miscellaneous Contracted Services*Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.
9ACCOUNT CODE STRUCTURE SUMMARY OF COMMONLY USED OBJECT CODES (cont’d)6300 Supplies – Common Object Codes6315 – Custodial/Janitorial and Pest Control6321 – Textbooks6329 – Reading Materials6399 – Teaching/General Supplies*Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.
10ACCOUNT CODE STRUCTURE SUMMARY OF COMMONLY USED OBJECT CODES (cont’d)6400 Other Operating – Common Object Codes6411 – Employee Travel6412 – Student Travel6494 – Field Trips (Humble ISD Transportation)6495 – Dues6499 – Miscellaneous Operating*Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.
11ACCOUNT CODE STRUCTURE SUMMARY OF COMMONLY USED OBJECT CODES (cont’d)6600 Capital Outlay – Common Object Codes6631 – Vehicles >= $5,0006639 – Furniture, Equipment and Software >= $5,0006649 – Controllable Assets*6669 – Library Books and Media*Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.
12ACCOUNT CODE STRUCTURE Humble ISD Capital Assets Accounting and Financial Reporting RegulationPurpose of RegulationSafeguard the significant investment in capital assetsManagement tool for the replacement of recurring itemsComply with State law and regulations, and provide information for the preparation of financial statementsEnsure that capital assets are adequately insured to cover losses
13ACCOUNT CODE STRUCTURE Controllable AssetsTangible or intangible assets with a useful life that extends beyond a single reporting period that do not meet the District’s capitalization threshold but for which the District maintains an inventory record for other than reporting purposes, such as security from theft.Controllable assets include the following:Athletic/Fine Arts equipment, including uniforms, robes and costumesGraduation uniforms for administratorsAudio-visual equipment, including TV’s, CD players, stereos, certain cameras and projectorsTelecommunications equipmentComputer equipment (computers, laptops, printers, scanners, software)Health & safety equipment (security systems, AEDs, etc.)CopiersStudent desks and chairsOffice furnitureCafeteria tablesMajor appliances (these items are large, difficult to move, and generally fixed in place, e.g. ranges, refrigerators, ice makers, washers, dryers, and dishwashers)Special needs mobility equipmentToolsGraphing calculatorsCommercial grade custodial equipment (back pack vacuums, floor scrubbers, pressure washers, wet/dry vacs, floor buffers, carpet extractors, sweepers, etc.)*Refer to the Capital Assets Accounting and Financial Reporting Regulation which governs the use of capital funds.
14ACCOUNT CODE STRUCTURE SUB-OBJECT - The sub-object (2 digits) further identifies the object code (numeric and alpha) and is used by a district, campus, or department for management purposes to distinguish accounts.Sub-objects are optional in most cases and are used by the district to further define expenses such as:Printing (PR)Technology (65)Postage (PM)Mileage (MI)Subject Areas such as Math (54), Science (67), etc.*Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.
15ACCOUNT CODE STRUCTURE ORGANIZATION - An organization (3 digits) is a group of employees who are obligated to complete a specific responsibility and will generally have an identifiable leader or an individual who is accountable for the overall completion of the responsibility.Organizations are defined by the Financial Accounting Standards and Reporting Guidelines published by TEAHigh SchoolsMiddle SchoolsElementary Schools699 Summer SchoolAdministrative998 Unallocated999 Undistributed*Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.
16ACCOUNT CODE STRUCTURE PROGRAM - A program intent code (2 digits) is used to account for the cost of instruction and other services that are directed toward a particular need of a specific set of students. The intent (the student group toward which the instructional or other services is directed) determines the program intent code, not the demographic makeup of the students served.SUMMARY OF PROGRAM CODES11 Basic Education21 Gifted & Talented22 Career & Technology23 Special Education24 State Comp Ed (SCE)25 Bilingual26 AEP Basic Services28 DAEP Basic Services30 SCE Title I31 High School Allotment32 Prekindergarten91 Athletics99 Undistributed*Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.
17ACCOUNT CODE STRUCTURE ACTIVITY - The activity (4 digits) identifies the campus program, student group, or department program for which the expenditures are intended. Activities can be linked to expenditure as well as revenue accounts.Activities are optional in many cases. They are required for centralized activity fund accounts. Activities used by the district to further define groups or departments such as:Athletics groups (Basketball, Cross Country, Football, etc.)Academic groups (Debate/Speech, Science Olympiad, etc.)Departments/Classes (Math, English, Science, Library, etc.)Organizations/Clubs (NHS, Student Council, Honor Choir, etc.)*Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.
18ACCOUNT CODE STRUCTURE SOURCE - The source (3 digits) identifies the campus/department with budget authority over the expense/receipt. A department can continue to maintain control over those funds that are transferred to campuses and still maintain proper PEIMS coding.Source Codes are locally defined by the District and are used to assign budget authority within the financial system. See Summary of Organization Codes for list of values.*Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.
19ACCOUNT CODE STRUCTURE PROJECT - The project code identifies grants, bond projects, maintenance projects and other special projects where costs must be accumulated as separate projects with 5 characters in length.Project Codes are locally defined by the district. Some of the examples of how project codes are used to further define expenditures are:Projects beginning with F are granted by the Education FoundationProjects beginning with B are capital projects usually funded by bondsProjects that begin with numbers are generally federal, state or local grants where the first three digits define the fund, the fourth digit defines the expenditure period (e.g. 2 is for ) and the letter code separates multiple grants that may be combined in the same fund.Projects that begin with GF are part of the General Fund allocationProjects that begin with SP denote special projects related to unforeseen events (fire damage, water damage, etc.)*Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.
20ACCOUNT CODE STRUCTURE TEASTUDENT DEMOGRAPHICSPublic Education Information Management System (PEIMS)ACADEMIC PERFORMANCEPERSONNEL INFORMATIONFINANCIALDATA (MUNIS)
21GENERAL INFORMATIONBudget Management Guidelines and Procedures Document available for download on the Budget webpage
23GENERAL INFORMATION 2.1 – Definitions Accounting Periods - The months within a fiscal year are referred to as accounting periods in MUNIS. The District’s financial reporting periods begin with July (period 1) and end with June (period 12).Budget Amendment – This is a transfer of budget money between general ledger accounts. These items are generally processed by the budget department.
24GENERAL INFORMATION 2.1 – Definitions (cont’d) Capital Asset – Items with a useful life of more than one year and a unit cost greater than or equal to $5,000 (object code 6639.) Capital asset as defined by the District's capitalization policy includes equipment, furniture, works of art, historical treasures and infrastructure.
25GENERAL INFORMATION 2.1 – Definitions (cont’d) Controllable Asset – Items that do not meet the district's capitalization threshold, but for which the district maintains an inventory record, and which have a useful life of more than one year (object code 6649.) See the Capital Outlay Guidelines for a specific list of items which qualify.
26GENERAL INFORMATION 2.1 – Definitions (cont’d) External Budget Amendment - transfer to/from an account outside of the originating department’s budget authority.Fiscal Year - The start and end of the District’s financial year. The district’s fiscal year begins with July and ends with June.Internal Budget Amendment - transfer to/from accounts within the originating department’s budget authority.
27GENERAL INFORMATION 2.1 – Definitions (cont’d) Journal Entry – This is a transfer of actuals (e.g. revenues, expenditures) between general ledger accounts. These items are generally processed by the general ledger accountants.Multiyear Fund – Need exists to manage financial information for a set of accounts greater than one fiscal year (many federal grants have a begin and end date of greater than one year), or where the fiscal year of the grant does not line up with the district’s fiscal year (Jul – Jun.)
29GENERAL INFORMATION Journal Acronyms Accounts Payable Budget Entries API - AP Invoice PostingAPM - AP Invoice MaintenanceBudget EntriesBUA - Budget AdjustmentBUC - New Budget PostingCash ReceiptsCRP - Posted Payments & ReversalsGCR - General Cash Receipts
30GENERAL INFORMATION Journal Acronyms (cont’d) Encumbrances GEL - General Encumbrance JournalJournal EntriesGEN - General Journal EntryGNI - General Journal ImportGRV - Journal ReversalInventory Entries (Warehouse)INI - Inventory IssueWork Order Entries (Print Shop, Postage)WOJ - Work Order Journal
31GENERAL INFORMATION Journal Acronyms (cont’d) Purchase Order Entries POE - PO EntryPOL - PO LiquidationPOM - Purchase Order MaintenanceSOY - Open New Fiscal YearYEC - Close Current Fiscal YearPayroll EntriesPRJ - Payroll Distribution JournalPRX - Payroll Texas TRS
32BUDGET TRANSFERS AND AMENDMENTS 4.1 Internal Budget Transfers4.2 External Budget Transfers4.3 Viewing or Editing Pending Amendments4.4 Budget Amendments for Board Approval4.5 Board Meeting Dates4.6 Making Deposits in Munis4.6.1 Athletic Activity Fund4.6.2 Campus Activity Fund4.6.3 ERATE4.6.4 Foundation Grants4.6.5 Livestock Activity Fund4.6.6 Local Misc Deposit4.6.7 Local Vending Deposit
33BUDGET TRANSFERS AND AMENDMENTS Transferring Centralized Activity FundsBetween Campus (461) Activity AccountsCreate an internal budget transfer in MunisInclude description of why funds are transferringRelease for campus administrator’s approvalCampus (461) or Student (865) Activity Account to Student Activity (865) or Scholarship Account (810)Complete Request for Internal Transfer of Funds formInitiate budget transfer in Munis (status will be “unbalanced”)Record journal number on transfer request form and submit to the Director of Campus and Departmental SupportOnce original copy of form is received, transfer will be completed and released for your campus administrator’s approvalOriginal form will be returned to you when process is complete
34BUDGET TRANSFERS AND AMENDMENTS Transferring Centralized Activity Funds (cont’d)Between Student (865) Activity AccountsComplete Request for Internal Transfer of Funds formInitiate budget transfer in Munis (status will be “held” – do not release journal)Record journal number on transfer request form and submit to the Director of Campus and Departmental SupportOnce original copy of form is received, transfer will be completed and released for your campus administrator’s approvalOriginal form will be returned to you when process is completeStudent (865) Activity to Campus (461) ActivityTransfer from student activity to campus activity are generally not allowableContact the Finance Department with questions
35BUDGET TRANSFERS AND AMENDMENTS Querying and Printing Posted JournalsUnder the Financials Menu, select General Ledger Menu, Journal Entry/History, then click Journal Inquiry/PrintIn the Journal Inquiry/Print screen, click the magnifying glass to enter “find” modeInput these criteria to find a budget amendment journal:Year = Fiscal year journal was posted (2012)Period = Period journal posted (Jul = 1, etc.) or leave blank.Journal = Enter journal number or leave blankSource = BUA for budget amendment journalsCreated by = your user id (first initial and first 6 letters of last name)Leave the remaining fields blank and click Accept (green check)Scroll through journals on screen, print, display or save as PDF file
36QUERIES, REPORTS AND GUIDELINES 3.1 GL Account Inquiry3.2 YTD Budget Report3.3 Capital Outlay Guidelines3.4 Payroll Template3.5 Purchase Orders by GL Account
37QUERIES, REPORTS AND GUIDELINES Centralized Activity Fund ReportingUse Report Sequence under Report Options to control how the report sorts and breaksExample of Report Options to use for printing reports for Sponsors
38QUERIES, REPORTS AND GUIDELINES Centralized Activity Fund Reporting (cont’d)Example Sponsor Report (see Report Options on previous slide)
39QUERIES, REPORTS AND GUIDELINES Centralized Activity Fund ReportingUse “Totals Only” to summarize by Report Sequence for reporting to PrincipalsExample of Report Options to use for printing reports for Principals
40QUERIES, REPORTS AND GUIDELINES Centralized Activity Fund Reporting (cont’d)Example Principal Report (see Report Options on previous slide)
41QUERIES, REPORTS AND GUIDELINES Budgeting for P-CardsFunds set aside using sub-object P1P-Cards using 199-General FundFunds will be re-appropriated each year from your current year allocationSet aside funds will be used against P-Card purchases for June each yearIn the event a P-Card is cancelled, remaining funds will be released into available balanceP-Cards using other funding sourcesFunds will be set aside one time and remain set aside until P-Card is deactivatedSet aside funds will be used against P-Card purchases for the last month the P-Card is activeRemaining funds will be released into available balance
42QUERIES, REPORTS AND GUIDELINES Year End Close15% Carry ForwardAvailable balances at year end can be rolled forward up to a maximum of 15% of your original General Fund allocationAccounts that are not part of discretionary funds will be excluded from this calculation (example: utilities, legal fees, etc.)Amount will be added to your supply account once approved by the Board of Trustees at the September board meeting
43QUERIES, REPORTS AND GUIDELINES Year End Close (cont’d)Cut Off DatesTransfers between functions for 199-General Fund must be submitted no later than May 31, 2012 in order to be approve by the Board at the June board meetingAll requisitions must be entered and approved by administrator June 14, 2012
44QUERIES, REPORTS AND GUIDELINES Year End Close (cont’d)A/P ReconciliationIf the appropriate documentation is received by A/P, funds will be appropriated in the next fiscal year for purchases where the goods have not been received by Jun 30thReconcile open PO’s by running the Purchase Orders by GL Account report (section 3.5) and insure only valid purchase orders are carried forward into the next fiscal year
45QUERIES, REPORTS AND GUIDELINES Year End Close (cont’d)Capital Outlay AllocationBudget submitted by Feb 23rdAll requisitions entered and approve by administrator by May 11thReceiving records entered for items received / services provided on or before Jun 30th by Jul 10thAll items must be received by Aug 31stReceiving records entered for items received / services provided after Jun 30th by Sep 7thALL PAYMENTS MADE BY A/P NO LATER THAN SEP 30TH
46BEST PRACTICES Review YTD Budget Reports once per week Resolve negative balances once per weekPeriodically review and purge any pending budget amendments (section 4.3) and requisitionsReview Field Trip reports from Transportation to ensure correct accounts will be chargedMaintain sufficient funds in supplemental pay accounts (6112, 6118, 6121, 6122) and field trip accounts (6494)