Managing IFR Accounts Presented by the Offices of Accounting and Budget 1.

Slides:



Advertisements
Similar presentations
Account Types and Funding Information.. You will be able to… Define Types and Sources of Accounts Define Purpose and Use of Funds Give Examples of the.
Advertisements

Business Office Financial Information Services Connecting And Leading AA Round Up April 25, 2007.
Cost Sharing Date Presenter Name Presenter Phone Number Presenter .
Revenue Budget Training 2/11/15. What is Revenue? Resources provided to the university as a result of a service and/or product provided. For higher education.
Indirect Cost Rate Proposal Region 11 Education Service Center January 28, 2015.
Financial Budget Training FY15. Budget ComponentsBudget Components State Appropriations - Biennial Legislative Appropriation Request (LAR) Tuition - Student.
Administrative Review Requirements September 17, 2014.
Congratulations on being awarded a grant! NOW WHAT?
Managing Your Grant: A Roadmap to the Finish Line Carol Gelormine Manager of Grant Accounting Division of Finance & Treasury Catherine Bruno Post-Award.
Petty Cash Custodian Workshop Research and Department Petty Cash Funds—from creation to close-out. A user’s guide. Controller’s Office.
College of Arts and Sciences - Budget PeopleSoft Training 4/13 – 4/15/10 CAS ATC Training 4/13 - 4/15/10.
FY2011 Other Education and General Program Accounts OVERVIEW OF “E” FUNDS.
Presented by Melissa Cope Manager of Financial Accounting BAS Forum June 9, 2010.
Financial Reports. Financial Reports are to be submitted to IDOC Community Corrections Division each month. Community Corrections Grant dollars are allocated.
Module 9 (POD 252) Year-End Close Processes for Financial Services, Budget and Payroll April 10, :00 AM - 11:00 AM CP-700.
Student Affairs Buying 101 Procurement Methods Students First Topic
HOW TO WRITE A BUDGET…. The Importance of Your Budget Preparation of the budget is an important part of the proposal preparation process. Pre-Award and.
Centralized Grant Training For Brown County Departments June 8-9, 2010.
Contracts & Grants Functionality Paul Sandoval, University of Arizona Jim Becker, Indiana University.
UAA Fiscal and Administrative Resources blackboard site Available resources and links to fiscal websites How To Instructions.
1 Module 4: Post-Award Administration of Sponsored Projects (Part 1) Office of Research and Sponsored Programs The University of Mississippi 100 Barr Hall.
1 Revenue Management Program (RMP) Campus Budget October 23 – 24, 2006.
TRAINING Accounts Payable Year End Close Process Presented by: Sandra King, Office of Business Services.
2015 Fiscal Year-End Activities for Recharge Centers Internal / External Sales Office.
End User Changes GO LIVE May 13, 2010 PS Grants Implementation.
The Management of Service centers NCURA REGIONS VI and VII CONFERENCE April 7, 2009.
Best Council, BSA Council Training Syllabus 1 Financial Management For Council Events & Activities.
NC CFW Expenditure reports How to complete and submit an expenditure report Expenditure reports How to complete and submit an expenditure report.
FISCAL RESPONSIBILITY IN TITLE III AND OTHER SPONSORED PROGRAMS AND GRANTS ADMINISTRATION Presented by Sharon S. Crews, M.Ac., CPA Vice President for Administrative.
Money Handling Procedures Updated by Roger Sparrow, Karen Ramage & David Herbst April 2014.
Best Practices: Financial Resource Management February 2011.
NuPAFP Conference October 13-14, 2010 Operational Adjustment Grants.
FY2008 Service Center Billing Rate Proposal Training Dates:Monday, February 26, 2007 Friday, March 2, 2007 Presented by: Rick Keller, Director – Cost Accounting.
CAMPUS AND STUDENT ACTIVITY FUNDS Presented by: Internal Audit Department Elizabeth G. Henry, Auditor Angelica R. Salinas, Staff Auditor Roxanna R. Pedraza,
School Budget (Draft)
Managing IFR Accounts Presented by the Accounting and Budget Offices.
Virginia Department for the Aging Area Plan Financial Section Training FY2006.
Contracts & Grants Functionality Paul Sandoval, University of Arizona Lori Schultz, University of Arizona.
Unboxing Research Finance at the UofA Research Administration Day 2015.
1 Grants Management (GM) Focus Monthly Accounting Reconciliation Process.
Budget Planning & Development Presented by: Elizabeth Bay, Senior Budget Analyst Tammy Anthony, Assistant Budget Director Mary Simon, Senior Budget Director.
2   Lab fees must be collected as E&G revenue per Texas Education Code.   Lab fee accounts must be reconciled for each semester’s activity to adjust.
Endowment Reporting Finance Director Presentation April 17, 2012 Presented by: Jennifer Hinkle with Renee Fitzmorris.
 Funding Sources  Account Characteristics  Annual vs. Fiscal Allocation  Free and Cash Balances  Expenditures and Codes  Expense & Revenue Transfers.
How to reconcile department ids. Finding answers to what is that? How did it get there? What do I do now? 1.
Prepared by the Office of Grants and Contracts1 INDIRECTS vs. REDIRECTS.
ACCOUNTING FOR CAPITAL PROJECTS Financial Policies and Procedures for the Capital Project Delivery Process Office of the CFO.
Child and Adult Care Food Program (CACFP) Administrative Review Requirements.
Grants and Contracts Jim Butterfield and Kathy Blackwood October 5, 2004.
1 Service Center FY2006 Billing Rate Proposal Preparation.
What are they? Where do they come from? How do I make them go away? 1.
Budget Basics for Managers. Purchasing Requisition-A request to purchase goods or services. PO-Approval to purchase goods or services on behalf of the.
Year-End 2012 Last Updated: May 11, Year End This session will: –Provide important information designed to educate departments on year end processes.
FINANCIAL FORMS How do I complete that? Presenter: Carrie Hutchins.
RCC Update ORS Quarterly Meeting April 28, 2016 Julie Cole, Director Research Costing Compliance.
Journal Entries Auditing Thursday, June 20 th,
Recharge/Service Center: Rate Setting Overview Auxiliary Forum December 2015.
Welcome. Contents: 1.Organization’s Policies & Procedure 2.Internal Controls 3.Manager’s Financial Role 4.Procurement Process 5.Monthly Financial Report.
Accounting and Financial Services 207 Howell-McDowell Administration Building Chelsa Hamilton: (606)
Research Service Center Business Plan September 2013.
PURPOSE OF PAYROLL CERTIFICATION 1 The Payroll Certification is an important tool for Fiscal Officers and/or Delegates. It’s purpose is to allow Fiscal.
Setting Up a New Recharge Center
Division Finances: Aligning Resources with Goals
FY2007 Billing Rate Proposal Preparation (Part I)
1. Know your business manager. -invite them to department
Contracts & Grants Functionality
Closing of Books Business Services May 8, 2019.
Business Services – All Campus May 22, 2019
Reports Welcome to the Finance video on reporting.
A Presentation to: Wisconsin Government Finance Officers Association
Presentation transcript:

Managing IFR Accounts Presented by the Offices of Accounting and Budget 1

Topics Defining what IFR Programs are. How they are funded. General IFR Guidelines:  Allocations, Fringe Benefits, Admin Overhead When an IFR account should be used. How to open an IFR account. 2

Topics Service Centers What reports are available. IFR Deposits IFR Allocations Questions? Contacts 3

What are IFR accounts? Income Fund Reimbursable account Self-supporting accounts that support activities related to the campus’ missions. Revenue/Income is directly related to the nature of expenditures $Cash balances are carried forward from one fiscal year to another. Incurs additional charges –  Fringe Benefits  Administration Overhead  (except for accounts that have received appropriate waivers – requires approval) 4

How do IFR accounts acquire allocation? The Budget Office submits an IFR budget request to System Administration in Albany. Previous year’s expenditure activity is a primary determinant in deciding how much allocation a campus will receive. On top of this System Administration usually builds on an inflation factor and increases for programmatic changes (new or expanding programs.) IFR worksheets are completed by account managers either online into the Campus Budget Module (CBM) system or on to hardcopy forms. 5

How do IFR accounts acquire allocation? The VP Coordinator reviews department’s IFR worksheets and compiles that information into a request that is reviewed by the University Budget and Accounting Offices. The Budget Office compiles each VP area’s submissions into a campus file which is transmitted to Albany. 6

General IFR Guidelines IFR accounts should have one purpose and one revenue source. –If multiple purposes, need separate IFR accounts Need to budget for Fringe Benefit and Administrative Overhead charges 7

General IFR Guidelines Fringe Benefit and Administration Overhead Rates The Office of the State Comptroller (OSC) and the Division of Budget analyze the actual fringe benefit costs on an annual basis. After the rate is computed, OSC notifies all state agencies of the rate specific to a fiscal year and agency. Fiscal Year 13/14Fiscal Year 14/15 State Fringe Benefit55.48%56.86% Federal Fringe Benefit58.75%53.48% Overhead Assessments15.00% 8

General IFR Guidelines The Fringe Benefit rate is assessed on expenditures.  Exception: SUTRA Summer and Winter accounts have fringe assessed on revenue. The IFR Administration Overhead assessment is charged on the revenue.  As revenue is deposited to your account, the assessment is charged. The charge is a direct reduction to your account’s cash balance. It DOES NOT affect your account’s allocation. Administration Overhead rate = 15% 9

General IFR Guidelines Example: IFR account will need $54,872 in revenue to cover a $30,000 in Personnel Service: $30,000 Personnel Service $16,644 in Fringe Benefit $ 8,228 in Administrative Overhead Total budget = $54,872 $30,000 x 55.48% ($30, ,644)x 17.64% 10

General IFR Guidelines Key Points of Stony Brook’s IFR Deficit Policy: IFR accounts should maintain positive accrued cash balances. The expenses charged to an IFR account should be covered by the revenue which that account takes in. Twice a year (Dec and June) you will receive the form “IFR Accrual Data”. You are required to complete the form with your accruals and send back to your VP coordinator. After approval by VP coordinator, Budget and Accounting meet to review your accrual statements. IFR accounts which develop cash deficits as of 6/30 will have one year to eliminate that deficit. If the deficit is not eliminated in that year the Budget Office may reduce that VP area’s state allocation. 11

When to Use an IFR Account An IFR account should be used when ever the activity is state funded. All activity should go through an IFR unless there is an approved exception as stated below. SBF (Stony Brook Foundation) account  Used only when the revenue is from gifts or contributions. FSA (Faculty Student Association) account  a) one-time events of short duration, i.e. conferences  b) benefit of individual students, faculty or staff members or appropriately recognized organizations RF S&F (Research Foundation Service & Facility) account  Used when activity is 100% research - highly technical research.  May include some third party activities. 12

How to Open an IFR Account Contact your VP coordinator  Determine what the account is to be used for.  Complete “IFR Allocation Worksheet” (on Accounting weblink)  Projected Revenue and Expenses Upon VP approval (and Dean/Chair approval if academic dept), the VP coordinator will submit the request to Accounting for processing. Accounting will inform you and all interested parties once the account has been created. 13

If the IFR account will be for a service that you will be charging a user fee, there are additional steps: Determine what the account /service is for. Obtain approval from your Dean or Chairperson Submit request to VP area for approval. Contact Accounting (Sara Lehmann) for guidance to determine the fee to charge internal and external users  You will need to complete a rate worksheet showing:  Projected annual expenses to operate the service  Projected annual unit of service (i.e. annual hours, annual # of analyses/tests). Once the rate has been calculated, it is then submitted to the VP area for their review and approval. Service Centers 14

There’s more …. The VP coordinator will request Accounting to create the IFR account to house the fee and related costs. Accounting will review and submit the proposed fee request to the University Controller for final approval and submit the request to the SUNY System Administration to create the IFR account. Upon final approval, Accounting will inform you and all interested parties of the new account number and effective date to charge the internal and external fee to users. Service Centers 15

Regulations New Service Center rates - reviewed after one year Existing rates – reviewed every two years  Exceptions – 25% increase or decrease in the rate, reviewed in a year Interim review upon request All Service Center fees MUST be approved by the University Controller PRIOR to charging the users. Service Centers 16

Regulations Internal users should only be charged for the cost of the service/product Per SUNY guidelines, cannot make a profit on internal users External users can be charged any fee in excess of the approved external fee. You can be competitive. Service Centers 17

Audit Requirements Account Director must keep a log of all activity of the service center IFR account (including expenses, P.O.s and annual usage) Information in the logs will be required during the campus rate review process If you have revenue from external users, a log must be kept for Excess Revenue from External sources.  Revenue collected in excess of the external rate. (External rate = Internal rate plus AOH; Breakeven point)  Revenue in excess of break even point – Surplus Service Centers 18

Audit Requirements The account director is responsible for maintaining a log which keeps track of the collection of external revenue and any excess revenue (surplus) as a result. During the rate review process the logs are used to identify the amount of excess external revenue, which is a component in the rate calculation. The Excess Revenue from External sources may be kept by the department and used at the department’s discretion as long as the cost is allowable. Spending of excess revenue (surplus) must also be noted on the log (invoice #s, P.O.s, etc.) Service Centers 19

NEED A BREAK? 20

Reports Available Online inquiries –SMRT Monthly reports –SMRT Month-End Management Report –Account Expenditure Summary (AES) » 21

IFR Deposits All deposits are made at the campus Bursar’s office. Bursar summarizes the deposits on the 15 th and 31 st To view deposits in your IFR account: Cash Collections Report in ERAS ( 15 day lag (ex: Today we would see cash collection report for 4/1 – 4/15. Report for 4/16-4/30 collections will be available on or about 5/16) 22

IFR Deposits If viewing deposits on AES monthly report’s cash page or the SUNY system, the deposit amounts reflected for each month are for the last 15 days of the prior month and the first 15 days of the current month.  For example, if you look at AES report for April, the cash would cover the periods 3/16 – 3/31 and 4/1 - 4/15. SBU All Funds Reporting – 2 day lag for cash reports For access, contact Michael Danielson in Accounting. For details on a specific deposit, contact Bursar with the transaction number. 23

IFR Deposits To correct a deposit made to wrong account Karen Shumar or Brenda Zhang in the Accounting dept explaining the error and indicate the correct account. Accounting will process a transfer of cash between the accounts. A transfer of cash may generate assessments (overhead). 24

IFR Allocation It is the allocation balance in your account which allows you to expend funds, not the cash balance in the account. Your account may have plenty of cash, yet Procurement is unable to process an order. When Procurement processes a purchase order, they make an encumbrance against your account’s allocation, NOT your cash. When you request your account’s initial allocation, your request should be based on your anticipated annual revenue and expenditures. If your cash is greater than anticipated, you may request, through your VP coordinator and ultimately the Accounting Department, additional allocation. 25

IFR Allocation Basically….. You need your allocation to spend your cash, and you need your cash to get your allocation! 26

IFR Allocation Unspent Allocation Unlike State Purpose funds, IFR accounts do not “lapse”. Although the allocation is unspent, the cash balance rolls forward. The cash balance is of the factors used to determine the account allocation for the following year. 27

IFR Allocation Unspent Allocation You may notice that unspent allocation was removed from your account.  When IFR allocation is in short supply and projections indicate that you will not require all of your requested allocation, some may be transferred to other accounts that are short at the VP coordinator’s discretion. This does not mean that your money has been taken; your cash balance is unaffected. Should you need to request additional allocation, you will have the cash to backup this request. 28

Questions? 29

Web Links u IFR Accounting (Manual, Worksheets, Contacts) u Introductions to State Accounts u Allocation and Expenditure Object codes u SMRT User Manual 30

Office Contacts u Initial Allocation/Campus Budget Module (CBM) –Diane Thide Budget Office u Midyear Allocation Adjustments –Sara Lehmann Accounting Office

Accounting Office Contacts Accounting Office Sara Lehmann2-6029State and IFR Accounting Chart of Accounts Lolita Sung2-5716IFR/Expenditure Accounting Chart of Accounts Libya Williams IFR/Expenditure Accounting Construction Guneeta Jaspal2-6030IFR/Expenditure Accounting For valuable information regarding Accounting Services, check out our website:

Guide to Problem Resolution BUDGETALLOCATIONS - FORM ALLOCATIONS - INTERCHANGE ACCOUNTING REPORT INQUIRIES JOURNAL ENTRIES ALLOCATION CHANGES PROCUREMENTREQUISITIONS, PURCHASE ORDERS VOUCHERS VENDOR CALLS CLARIFICATION OF FREIGHT CHARGES (OBJ CODE 5010) PETTY CASH TRANSACTIONS BURSARCASH RECEIPT INQUIRIES (IFR COLLECTION ANALYSIS) HUMAN RESOURCESAPPOINTMENT DISCREPANCIES PAYROLLQUESTIONS - OVERTIME, STANDBY AND LOCATION PAY 33

Thank You! 34