1. Faculty of Medicine Business Manager Meeting Open Forum

2. 1.Operating Cash Flow – expectations 2.Capital Projects – setting up capital accounts, transferring funds, time lines 3.MB Health cash flow requirements 4.Predecessor Funds (Source of Funds) – what are they 5.Deposits to expense lines 6. Open forum discussion Today’s Agenda

3. Cash Flow Expectations Please make sure your forecast is as accurate as possible. If you are going to have a surplus, the Dean needs to know. If you are going to over expend your FOP, you need to know. Any surplus in the 110000 Fund will be caught up in carry over. Any deficit will come back to the department at 100%.

4. Capital Projects Departments must identify Capital Projects early- by September Start with email to SFO listing funding source, project scope, time line. We will assist in setting up the capital fund Capital funds are carried over at 100% but must be set up early in the fiscal year. If you are contacting Physical Plant, keep all documentation related to time lines and commitments.

5. Jonathan Hyman, Assistant Manager, Capital Revenue, Capital and General Accounting – Sets up the capital fund – Tracks expenses – Monitors the progress – Will contact SFO if project goes over budget Any transfers from operating require approval from Joanne Dyer, University Budget Officer or Tom Hay, University Comptroller. Departments are responsible for any projects that go over budget.

6. Manitoba Health Reporting Why: MB Health requirement Dean needs to know how you are spending the MB Health funds How: Departments will run the Revenue and Expenditure Statement report in FAST for FUND 12101

9. We will require a separate report for each use of the MB Health Funding. IMG NP Increased Enrolment Phase 1 and 2 Other Submit your quarterly report to Nashon. Due dates are based on the 2009/2010 Monthly Cut-off schedule as set by Financial Services. July 15, Oct 15, Jan 15 and April 20

10. The University of Manitoba - Faculty of Medicine - Department of XXXXXXXX Quarterly Reporting As at June 30, 2009 April to JuneJuly to SeptOct to DecTotalOutstandingJan to MarTotals Actuals CommitmentsProjected Salary Expenditures Academic Staff 100,000.00 - 200,000.00 - 400,000.00 Support Staff 50,000.00 - 100,000.00 - 200,000.00 Benefits & Levy 10,000.00 1,000.00 - 11,000.00 4,000.00 - 15,000.00 Total Salary Expenditures 160,000.00 151,000.00 - 311,000.00 304,000.00 - 615,000.00 Non-Salary Expenditures Travel 10,000.00 5,000.00 - 15,000.00 - - Printing and Duplicating 500.00 450.00 - 950.00 - - Other Materials and Supplies 1,000.00 - 2,000.00 - - Telecommunications 1,000.00 - 2,000.00 - - Other Operational Expenses 1,000.00 - 2,000.00 - - Externally Contracted Services 1,000.00 - 2,000.00 - - Professional Fees 1,000.00 - 2,000.00 20,000.00 - 22,000.00 Capital Asset Acquisitions 1,000.00 - - - - Repairs and Maintenance 1,000.00 - 2,000.00 5,000.00 - 7,000.00 Total Non Salary Expenditures 17,500.00 11,450.00 - 28,950.00 25,000.00 - 53,950.00 - - Total Salary and Non Salary Expenditures 177,500.00 162,450.00 - 339,950.00 329,000.00 - 668,950.00

11. Method used by non profit organizations and the public sector Accountability is measured rather than profitability Main focus is to keep track of resources that are designated for specific purposes; to avoid mixing up resources that are intended for diverse purposes Ensures management fulfills the stewardship responsibility for proper disposition of the resources Fund Accounting

12. Fund Accounting Example Each fund further segregated for stewardship purposes – Research Fund Example Research Fund Federal Government NSERC GrantsSSHRC Grants Provincial Government Dept of Agriculture MB Conservation

13. Why Fund Accounting? By recording and reporting resources in this manner, we are better able to: Identify and document if resources are being used properly Determine our condition on a fund by fund basis Plan, budget and later evaluate if we are accomplishing objectives Communicate financial information to all who need to know

14. Why Fund Accounting? Answers the following: Do we have money to spend? …. Important information for faculties and units Are funds being used appropriately? … Financial Services needs to know Have University guidelines been followed? … Internal Audit needs to know Are funds being used for the defined purpose given? … Important information to granting agencies

15. Why Fund Accounting? Answers the following questions: Did the University provide the goods and or services expected within budget? … Industry partners want to know Has the University utilized public funds (tax dollars) in an appropriate manner? …. Important information for federal and provincial governments

16. Why the Separation of Funds? vs.

17. Why the Separation of Funds? Better manage budgets Understand how the University’s operating activities are funded Know what needs to be cut in case of downsizing or a stop in funding from external sources Facilitate accountability to funding providers

18. Operating Fund Hierarchy Comprised of two revenue sources 1.Primary Sources – COPSE & Tuition 2.Secondary Sources (multiple) Levels of the Fund Hierarchy represent the 2 main categories / revenue sources Main Levels are called Fund Types 1.Unrestricted Operating Funds (Fund Type 01) 2.Internally Restricted Operating Funds (Fund Type 11)

19. Operating Fund Hierarchy Fund Type 10 General Funds Fund Type 01 Unrestricted Funds (Primary Sources) Fund Type 11 Internally Restricted Funds (Secondary Sources)

20. Operating Fund Hierarchy Various levels of the hierarchy are called levels or predecessors General Funds Type 10 Unrestricted Funds Type 01 Unrestricted Operating Fnds 110 Individual Allocation Funds 1240 Start Up Research 12400 “Startup – Example” 12xxxx Fund Type Predecessor Level Data Entry Level

21. Unrestricted Operating Fund Fund Type Fund Predecessor Fund Predecessor Description Allocation & Administration Revenue Source 10 01 11000 General Operating Allocation RCGA, B&G COPSE Operating Revenue (Overhead, Investment, Miscellaneous) 11100TuitionRCGATuition Revenue 12400Start Up ResearchUnits & FacultiesOperating, COPSE & Tuition Revenue 12500OverheadB&G Reserves (Central Administration – Account 711105) 12600 Other Allocations & Projects B&GOperating, COPSE & Tuition Revenue 12601Research MatchingB&GOperating revenue 12650VP (Acad) ProjectsB&GCOPSE, Operating & Tuition Revenue 12103 Targeted COPSE ACCESS B&GCOPSE Access 12107 Targeted COPSE Projects B&GCOPSE 12700 Pooled & Individual Travel & Exp B&G Reserves (Central Administration – Account 797010) 12900 Operating Research Grants VP (Research), B&G Operating, COPSE & Tuition Revenue 12970 Operating Research Development VP (Research), B&G Operating, COPSE & Tuition Revenue

22. Internally Restricted Operating Fund Fund Type Fund Predecessor Fund Predecessor Description Allocation & Administration Revenue Source Revenue Account Range 10 11 12100 Targeted Other Federal Projects Units & FacultiesFederal Contract Revenue567000-567006 12101 Targeted Provincial Projects Units & Faculties Provincial Grant Revenue Provincial Contract Revenue 564001-564009 568001-568010 12102Targeted IndustryUnits & FacultiesOther Contracts569001-569014 12105 Targeted Misc Fnds Assoc's Grants Units & FacultiesOther Grants566001-566998 12104 Targeted Indirect Cost of Res (IMS - 613) VP (Research) Social Sciences and Humanities Research Council of Canada (SSHRC) N/A 12200Income Funded ProjectsUnits & Faculties External Sales & Service Income Internal Sales & Service Income 520001-524905 530001-534951 12300 Transfers from Trust & Endowment Trust & Endowment Transfers in from Trust820002 12800Gifts for OperatingUnits & Faculties Gifts & Contributions Gifts to Operating 540001-541000 589001

23. Finding the Predecessor Code Utilize the Operating Fund Hierarchy website available online – Aurora Finance Chart of Accounts webpage www.umanitoba.ca/computing/renewal/aurora/finance/aca/coa Utilize FTMFUND in Banner 1.Enter Query 2.Type Fund code in Fund: field 3.Execute Query 4.…Predecessor Fund is listed

25. Deposits To Expense Lines There should be NO deposits to expense lines at all. The reasoning behind this is that we don’t want to get to the end of the year and have a credit balance sitting in an expense line account. For deposits that would have been reimbursing an expense on a 110000 fund (or any unrestricted fund), this should get deposited to the specific departments cost recovery fund (we can set new ones up if each department doesn’t have a cost recovery fund) and the expense would be transferred from the unrestricted fund to the cost recovery fund. For restricted funds, again nothing is deposited to an expense account line. Rather it should be deposited to a revenue cost recovery account line and the expense will be sitting on the appropriate expense line which in theory nets out to zero.