Agency Budget Analyst Workshop State of Indiana

2 Instructor Theresa Anderson IOT GMIS

3 Discussion Topics  State Budgeting System / Commitment Control  General Ledger Overview  Expense and Revenue Ledgers  Budget Journal Entries  Exercises

4 State Budgeting System  Fund Controls 3, 4, 5, 6, 7 have different budget characteristics  Fund to Fund Transfer scenarios  Funds to be transferred are currently allotted in Quarters 1- 4  Funds to be transferred have not been allotted or are in reserve  Point to Point Transfer scenarios  Separate appropriations for points 1(E19999) and 2-9 (E29999)  One appropriation for points 1- 9 (E10000)  Transfers not required where allotment is made at point 0 (E10000)

5 State Budgeting System Control Codes  Control Code: –Control Code 3: Appropriations Revert; Receipt of Revenue has no Budget Impact –Control Code 4: Biennial Appropriations; Receipt of Revenue has no Budget Impact –Control Code 5: Non-Reverting; Receipt of Revenue increases Appropriations –Control Code 6: Non-Reverting; Receipt of Revenue increases Appropriations and Allotments –Control Code 7: Non-Reverting; Receipt of Revenue has no Budget Impact (created for all Federal grants and Capital projects)

6 Fund Attributes  Fund Attributes –Legal Fund: (Generally Same as Four Digit Fund) –CAFR Fund: (Generally Same as Four Digit Fund) –Fund Type: (General, Special Revenue, Debt Service, etc.) –Funding Source (Federal, General Fund, State Dedicated, etc.) –Control Code: (Determines Budgeting & Closing Rules) –Function of Government (General Government, Public Safety, etc.) –Location Type (Locality Required on all Transactions: Yes or No) –Interest Income (Fund Retains Interest Income Earned: Yes or No)

7 Overview of General Ledger  General Ledger Control Tables require setup prior to transactional processing  SetID  Business Unit (BU)  Chartfields  Fund Code  Account  Program  Requests for new Chartfield values are submitted to SBA/AOS for approval

8 Overview of Budget Ledgers  Initial Budgets are loaded by SBA  Required Core Expense Budget Ledgers  APPROP  ALLOT_CTRL  ALLOT  Budgets are stored in Budget Ledger(s) by Budget Period  Year (APPROP)  Quarter (ALLOT_CTRL, ALLOT)  Maintained through Budget Journal entries created by Agency Budget Analysts and approved/posted by SBA Budget Analysts

9 APPROP Ledger  Appropriation Ledger  Where applicable corresponds to Budget Bill  Annual budgeted amount  Controlled Budget based on the Budget Bill  Total Operating (Account E10000) or  Personal Services / Other Operating level (Accounts E19999 & E29999)  Will not allow overspending  Budget Bill must allow for Augmentation Authority for State Funds

10 ALLOT_CTRL Ledger  Allotment Control  Child of APPROP Ledger  Corresponds to spending plan/allotment schedule  Quarterly budgeted amounts  Cumulative dollars for Budget Checking  Controlled Budget based on the Budget Bill  Total Operating (Account E10000) or  Personal Services / Other Operating level (Accounts E19999 & E29999)  Will not allow overspending

11 ALLOT Ledger  Allotment  Child of ALLOT_CTRL  Corresponds to spending plan/allotment schedule  Control 3 and 5 - Tracked at Level 3 (Major Point Account E51000, E52000, E53000, …)  Control 6 and 7 - Tracked at Level 2 (Point 0 Account E10000)  Quarterly budgeted amounts  Track with Budget - overspending allowed, but budget row must exist

12 APPROP, ALLOT_CTRL, ALLOT Key Features  All 3 Ledgers are required for all Funds  APPROP and ALLOT_CTRL budget set to Control – no exceptions  Key fields- Business Unit, Fund, Account, Bud Ref  Budget Reference is vital to distinguish Budget Years  SBA and Agencies will be jointly responsible for these three expense ledgers. Other ledgers will be owned and maintained by each agency.

13 APPROP, ALLOT_CTRL, ALLOT Key Features cont’d  Ledgers store summarized activity –PRE_ENC = Pre-Encumbrances (Requisitions, Travel Authorizations) –ENC = Encumbrances (Purchase Orders, Expense Reports) –EXP = Expenses (Vouchers, GL Journals, …)  Budget Overview screen shows flow of expense within ledgers. –Requisition - updates PRE_ENC –Purchase Order - reverses PRE_ENC and updates ENC –Expense - reverses ENC and updates EXP  PRE_ENC amounts must be zero at the end of each Fiscal Year.

14 Additional Ledgers  Budgets, if applicable, are entered and maintained by Agency  Additional Budget Ledgers –APPROP_REV –ALLT_C_REV –ALLOT_REV –DETAIL –KK_PROJECT –KK_ACTIVTY –ORG –ORGDTL

15 Associated Revenue  Applicable Core Ledgers include APPROP_REV, ALLT_C_REV and ALLOT_REV  Link revenue budgets to expense budgets so revenue can automatically increase available expense spend balances  Only set up for Control 5 and Control 6 funds  Revenue may be Budgeted and Recognized, but not collected. It depends on how the fund is set up.  Enter Budget Journal (ALLT_C_REV) to Debit associated revenue (Budget Account R40000) will release/collect revenue, making it available in the expense budget.  Budget Overview criteria should be “Ledger Inquiry Set” to include expense and revenue ledgers in search

16 DETAIL Ledger  Used to collect all budget checked transactions  Summarizes detailed transactions for each specific account number  Summarizes detailed transactions by monthly budget period  Only budget ledger that uses the specific account – no rollup to the major point

17 KK_PROJECT Ledger  Used for Project Costing to track Federal Grants and Capital Projects  Budgeted amounts based on project life  Must have sufficient dollars in Funding Source  Controlled budget – overspending not allowed  Key fields- PC Business Unit, Project  Maintained by Agency Project Administrator

18 KK_ACTIVTY Ledger  Used for Project Costing to track Federal Grants and Capital Projects at the Activity level  Child of KK_PROJECT  Budgeted amounts based on project life  Must have sufficient dollars in Funding Source  ENCOMPASS requirement is to track by Activity (Overspending allowed). Agency may elect to control by Activity.  Key fields- PC Business Unit, Project, Activity  Maintained by Agency Project Administrator

19 KK_PROJECT & KK_ACTIVTY Funding Source  Funding Sources are created by SBA Federal – requested by Agency State - at SBA direction  1 Federal Grant = 1 Federal Funding Source 3 year grant = 1 Funding Source  State Matching Funds = separate Funding Source Money transferred to Federal Fund via Appropriation Transfer list (SBA Budget Analyst)  Capital Funds in Budget Bill = 1 Funding Source By Function of Gov’t By Budget Bill

20 ORG Ledger  Organizational  Annual budget amount  Controlled budget – overspending not allowed  Chartfields, Budget Periods vary by Business Unit  Most often used for Departmental Budgets

21 ORGDTL Ledger  Organizational Detail  Monthly budgeted amounts, cumulative  Track w/ budget – overspending allowed, but budget must exist  Chartfield, Budget Periods vary by Business Unit  Most often used for Departmental Budgets –Major Point (E51000, E52000, …) –Minor Detailed Account (520101, …)

22 Questions???

23 Commitment Control  Fund Code is the main budgeted Chartfield  Budget process at beginning of year has not changed. Agencies still submit spending plans prior to beginning of fiscal year.  All four quarters of ALLOT_CTRL and ALLOT will be loaded at the beginning of the year.  SBA will establish Federal Grant appropriations in ENCOMPASS.  Project budgets and ORG budgets are owned and maintained by agencies.

24 Managing Budgets  Agencies should discuss budget adjustments with their SBA Budget Analyst prior to initiating any budget transactions.  Agency Budget Analyst will initiate budget journals in ENCOMPASS for budget adjustments and will send a notification to their SBA Budget Analyst to review/approve and post transactions for which they are authorized.  Point to point and fund to fund transfers and augmentations will still require Admin Action for approval prior to posting. SBA Budget Analyst will notify SBA Accounting.

25 Managing Budgets… cont’d  The initial ORG budget should be entered as the Original budget. Future changes should be entered as Adjustments.  At initial implementation, Agency will have the option to control or track budgets at the department level, and will determine budget periods to be used (annual or quarterly).  State Budget Agency will not have any role in maintaining the ORG and ORGDTL ledgers.

26 Types of Transactions  Budget Journals –Used for entering original budgets –Adjustments done throughout the year to increase or decrease the budget (i.e. Admin action)  Budget Transfers –Not used – per SBA –Used to move budget dollars within a single ledger group between Fund/Account within a Business Unit –Requires multiple entries to move funds

27 Budget Journals Header includes: –Business Unit, Journal ID, and Journal Date –Ledger Group –Budget Entry Type – Original or Adjustment SBA will enter Original Budgets for APPROP, ALLOT_CTRL, and ALLOT. Agencies enter Adjustments to core ledgers –Long Description field Used to document justification for SBA – reason for the entry –Attachments option – ability to upload supporting documentation (word, excel, pdf… up to 1MB each)

Budget Journals Lines tab includes  Applicable Chartfields, including: Budget Period Fund Code Budget Account (i.e. E10000, E19999, E53000) Budget Reference  Non-Core ledgers will require other chartfields  Record the amount of the entry (Credit is a Positive amount and Debit is a Negative amount) 28

29 Budget Journals  Agency Budget Analyst will have the ability to enter budget journals for APPROP, ALLOT_CTRL and ALLOT ledgers in ENCOMPASS  Agency Users will have limited ability to post these entries –APPROP and ALLOT_CTRL entries are posted by the SBA Budget Analyst because these Ledgers are controlled. –ALLOT Entries are posted by the Agency Budget Analyst. –Approval Workflow is not implemented for Budget Journals. Use the Notify button on the Budget Journal page to inform your SBA Budget Analyst that entries are waiting to be posted  Budget Journals do not need to balance –Users can enter a one-line journal entry

30 Budget Journals… cont’d Steps to record Transfers between Funds  Funds that are currently allotted in Quarters Enter Budget Journal to REDUCE Allotment (ALLOT) from ‘from’ fund 2.Enter Budget Journal to REDUCE Allotment Control (ALLOT_CTRL) from ‘from’ fund 3.Enter Budget Journal to REDUCE Appropriation (APPROP) from ‘from’ fund (requires Administrative Action) 4.Enter Budget Journal to INCREASE Appropriation (APPROP) to ‘to’ fund (requires Administrative Action) 5.Enter Budget Journal to INCREASE Allotment Control (ALLOT_CTRL) to ‘to’ fund 6.Enter Budget Journal to INCREASE Allotment (ALLOT) to ‘to’ fund  All entries must be Approved and Posted before the next entry can be processed

31 Budget Journals… cont’d  Funds still in reserve - not currently allotted 1.Funds are already Appropriated 2.Enter Budget Journal to INCREASE Allotment Control (ALLOT_CTRL) to ‘to’ fund 3.Enter Budget Journal to INCREASE Allotment (ALLOT) to ‘to’ fund  ALLOT_CTRL entry must be Approved and Posted by SBA Budget Analyst before the ALLOT entry can be processed

32 Commitment Control Posting  Posting the entries makes sure they meet the rules set up in ENCOMPASS. –If the journal does not meet the requirements set up in these rules, the journal will be marked with Errors –Errors must be fixed before the journal can be posted. –If no errors exist, the system will post the entry  Balancing/offset lines are created by SBA in GL using the 74 and 75 accounts to capture the transfers in and transfers out.

33 Exercises

34 Any Questions???

35