Budget Training

Budget Sources Student tuition and fees Reimbursement from the Federal gov’t and sponsor agencies Self-generated revenue in auxiliary units Cash transfers IN Uses Salaries and benefits Operating expenses Travel Utilities Cost sharing An estimate, often itemized, of expected income and expense for a given period of time. Our budgets are developed in the context of the CU system, campus priorities, and financial pressures and opportunities

Planning: Develop goals & objectives Development: Estimate cost of attaining goals & project revenues Implementation: Record budget in Financial System General Ledger Monitoring: Compare budget to actuals & investigate variances Control: Take corrective action Budget Cycle

Fund Review 1.Budgets are required in: Fund 1x: General Fund Fund 20 & 28: Auxiliary Funds Fund 3x: Restricted & Sponsored Projects Fund 71: Capital Construction Plant Fund 2.Budget may be recorded in: Fund 34: Restricted Fund, Gifts Fund 26 & 29: Auxiliary Funds Fund 72: Renewal & Replacement Plant Fund funded by Fund 1x Fund 78: Renewal & Replacement Plant Fund funded by Fund 2x 3.Individuals at the department level can adjust budgets in: Fund 1x: General Fund Fund 2x: Auxiliary Funds Fund 72: R&R Plant Fund funded by Fund 1x Fund 78: R&R Plant Fund funded by Fund 2x

General Fund (Fund 10) State appropriations, tuition, course fees Revenue budget centrally in a limited number of FOPPS at campus level Expense budgets are decentralized to the FOPPS at the department level Budget appears on SUMMARY Statement Budget = Spending Authority Bottom Line Available to spend is found on the Summary Statement

Auxiliary Fund (Fund 20, 26, 28, 29) Self-contained business units Generate their own revenue Both revenue and expense are budgeted by the department at the FOPPS level Budget appears on the SUMMARY Statement Budget = Plan Bottom Line Available to spend is found on the Balance Sheet

Plant Fund-Renewal & Replacement (Fund 72, 78) Funded by Transfers IN from the General or Auxiliary Fund FOPPS Transfers IN: From a General Fund FOPP to Fund 72 From an Auxiliary Fund FOPP to Fund 78 Budget only in the fiscal year during which a capital purchase will be made Budget appears on the SUMMARY Statement Budget = Plan Bottom Line Available to spend is found on the Balance Sheet

Fundamental Questions 1.How is the budget developed? 2.How does the budget get into my FOPPS? 3.Where do I find the bottom line available to spend?

General Fund Budget Basics 1.How is the budget developed? The budget is developed from scratch at the outset of a new program or activity In subsequent years, continuing budget in June becomes base budget in July 2.How does the budget get into my FOPPS? Office of Planning, Budget & Analysis allocates budget; continuing, temporary, and incremental Review DETAIL Statement for July and review Budget Journal Entries 3.Where do I find the bottom line available to spend? SUMMARY Statement

Auxiliary Fund Budget Basics 1.How is the budget developed? Units do with the Planning Guidelines & Parameters, published on the PBA websitePlanning Guidelines & Parameters Continuing or Temporary with optional temporary budget fiscal year rollforward 2.How does the budget get into my FOPPS? Departments prepare Excel spreadsheet for each FOPPS for upload by PBA Compare your spreadsheets to Budget Journal Entries on the DETAIL Statement 3.Where do I find the bottom line available to spend? BALANCE SHEET Statement (must subtract encumbrances)

R&R Fund Budget Basics 1.How is the budget developed? Budgets not required in 72 and 78; develop budgets only during years in which it anticipates making a purchase from its R&R FOPPS Use Voluntary Cash Transfer IN for your “revenue” budget (995000) Use Fixed Assets for your expense budget (810000) Fixed assets are >$5,000 per unit and have a life expectancy >1 year 2.How does the budget get into my FOPPS? Departments prepare Excel spreadsheet for each FOPPS for upload by PBA Compare your spreadsheets to Budget Journal Entries on the DETAIL Statement 3.Where do I find the bottom line available to spend? BALANCE SHEET Statement (must subtract encumbrances) You should ALWAYS have a spending plan for the balance in your R&R FOPPS

Financial Monitoring & Reconciling 1.What is it? Monthly comparison of source documents to transactions recorded on the DETAIL Statement Akin to reconciling your monthly checkbook 2.Why is it important? Foundation of internal control Insures compliance to federal and state regulations Protect the resources of the university by being good stewards

Financial Monitoring & Reconciling 3.What do I look for? Transactions are of the correct amount Transactions are recorded in the correct account Transactions belong in the FOPPS All the transactions that should be recorded in the FOPPS have been recorded in the FOPPS 4.What should I do if I find an error? Research and correct it M-Fin reports show Journal approvers Contact the PSC Finance and Procurement Help Desk at or

Fund General: 1x Auxiliary: 2x R&R Plant Fund: 72 (GF) 78 (AF) How does the budget get into the FOPPS? How do I find the bottom-line available to spend? What does the budget mean? Review

Budget Journal Entries DO Balance Budget Journal Entries in the General Fund Know the signs Use WHOLE dollars DON’T Mix FUNDS on a Budget Journal Entry Mix CAMPUSES on a Budget Journal Entry

Budget Type Increase: If you want to INCREASE this type of budget -Credit -500 Revenue Decrease: If you want to DECREASE this type of budget Expense Transfer INTransfer OUT Action -Credit Credit Credit -500 Debit 500 Debit 500 Debit 500 Debit 500

Choosing the Correct Ledger & Account 1.Choose appropriate Continuing or Temporary Ledger 2.General BUDGET Account Budget POOL Use BUDGET transactions on BJEs only 3.General Account Classify ACTUAL transactions Required for departments to use General Account at a MINIMUM May use User Option Account for greater level of detail

This presentation was brought to you by