FY13 BFS Changes Training Presented by the Office of the CFO

FY13 BFS Changes Training Presented by the Office of the CFO
Summer 2012 This presentation does not automatically advance. Click the Play button to go to the next slide. Last Revision: July 23, 2012

Course Outline - Introduction
TEMPBUDG CHANGES OPERATING TRANSFERS – NUTS AND BOLTS FUND BALANCE ESSENTIALS SNEAK PEEK: NEW REPORTS APPENDIX During this course we will cover a great deal of ground. I hope you saw the May 31 letter from CFO Erin Gore and read the course description when you signed up – if so you already know that the Temporary Budget ledger in BFS is going away for many campus funds. In order to understand what this means and how it impacts the work we do, we will first examine the current functions of the Temporary Budget ledger, or the TempBudg, and then see how they will be replaced when the TempBudg goes away. We'll spend a lot of time on a new account series - the operating transfers series, a little bit of time on transfers between funds, and wrap up with a look at some changes to BAIRS reports that are under development. Now, one of the challenges we face is that this training has a diverse audience. We have budget journal and financial journals preparers. WE also have BAIRS users - some of whom prepare journals, some don't. And we might even have some supervisors who do neither. So, not every part of this course will be directly relevant to each of you; not only that, it may not even be something you're familiar with. This on-line presentation will allow you to customize it to suit your learning needs. You may repeat sections or individual slides as often as you like to reinforce your understanding. Or you may skip over a section that you already know or that is not relevant. You may also choose to read the notes, rather than listen.

You should be able to answer these questions by course-end:
Course ‘Take Homes’ You should be able to answer these questions by course-end: Why is BFS changing? What isn't changing in BFS? Where will TempBudg functions be performed in FY13 for many funds? What are operating transfers and how do I use them? What are interfund transfers? How will I tell what my balance is without the Temporary Budget? Take a moment to read these questions. Keep them in mind as you go through the course - by the end of the session you should be able to answer them all

Why are we here today – Big Picture
HOW? – Move the Temporary Budget ledger functions to new places: Transfers  Actuals ledger Planning  Cal Plan The campus has always needed to be able to understand its budget and financial position – but the financial constraints we face now require us to take that understanding to the next level. Right now, the Temporary Budget ledger (or ‘TempBudg’) is our primary tool for budgeting. We do a lot of things in the TempBudg – primarily planning and transacting the movement of funds (aka transfers) -- and we do them pretty well. But because it serves more than one purpose, the TempBudg can’t do any of these things really well. As a result, campus decision makers and financial leads – our department heads, MSOs , deans and directors, to name just a few – can’t easily use BFS and BAIRS reports to give them the full picture of where units expect to be by the end of this year, much less the end of next year. A lot of additional analysis of the ledger detail is required, and the reporting that comes from that analysis is not standard across the campus, making it hard to look at our operations holistically. So, our goal is to have systems in place that allow us to manage better, from the department level all the way up. Big Picture – the way we will meet our goal of doing both planning and transfers well, and in the process support strategic decision-making – is to integrate transfers into the Actuals ledger and to do planning in a dedicated, customized planning system called CalPlan. Let’s look a little bit closer now at ‘How’ the TempBudg will be transformed in the next slide.

Benefits to Units and Campus – BIG Picture
TempBudg Ledger CalPlan or Actuals Ledger PLANNING Piecemeal Complete Multiple Versions TRANSFERS Detailed Analysis Summary Level Visibility  What are some of the benefits of this change that will enable us to support a more strategic approach to budgeting? In the area of planning, as you know, currently the budget plans for many funds are reflected in the TempBudg ledger piecemeal, as transactions occur. Just to give a couple examples: Gifts are not recorded in the TempBudg until they are actually received – so in a gift fund at any point during the year the TempBudg reflects gifts received to date, not how much the unit expects or plans to receive for the entire year. As another example, funds coming from another unit are not recorded in the TempBudg in your unit chartstrings until the other unit prepares and posts a TempBudg journal. So here, too, the TempBudg will only show what’s been posted to date, which is not necessarily the total you expect, or plan, to receive for the year. In contrast, the new Cal Plan tool will show the complete budget for the entire year – at the beginning of the year. In addition, Cal Plan will allow a unit to modify and save new versions of its budget – for example, the budget might be revised at the end of the first quarter (Q1). This new Q1 version can be saved, and can be compared to the original version, so that Chairs and Deans, Directors and AVCs, can see how the plan for the year has changed and why. In the case of budget journals that transfer funds between departments or Dept IDs, or other chartstring values, units typically have to dive down into the detail in order to understand what is going on. When this transfers function moves to the Actuals ledger, high-level information about what the transfer is for and where it came from will be available at a summary level. We’ll be talking more about this in the middle sections of this course. These three improvements are key to helping Berkeley think more strategically about our resources and goals, whether at the department or at the campus level. 

What this course WILL NOT cover…
Introduction What this course WILL NOT cover… How to Prepare: Budget Journals in BFS Financial Journals in BFS How to Utilize: CalPlan, the new budgeting tool CalRptg, the new reporting system Before we go too far, I also want to point out what this course won't cover. This is not a class about how to prepare budget or financial journals. For that you need to go to the BAI training page and use one of the on-line UPK classes. In the appendix you can find the link to this, if you don't already know it. Second, except at a high conceptual level, this class will not cover the new CalPlanning budget tool and reporting system and how they can be accessed and used. The appendix also contains links to more information about this. Training in CalPlanning to date has been focused at the divisional level.

Four Concepts to Keep in Mind
1 NO CHANGE in FY12 2 NO CHANGE to Revenue or Expense in BFS Actuals to TempBudg for some funds: Contracts & Grants, Plant 3 NO CHANGE As we go through this course, we're going to be throwing a lot of information at you, and keeping a few key points in mind from the very beginning should help avoid confusion. First, there are no changes until fiscal year , or FY13, which means no changes in FY12 or for the FY12 fiscal close process. Second, we're not changing the BFS Actuals ledger for revenue and expense. Repeat, how we account for revenue and expense in the BFS Actuals ledger is not changing. Third, the changes in BFS are only in a portion of the campus funds - only the Current funds which are not contracts and grants. So there will be no changes to TempBudg for contracts and grants funds or for funds in the Plant Fund group. Fourth and finally, as we discussed earlier, beginning in FY13 the functionality currently in TempBudg will be going to one of two places for many funds - the planning function will go into CalPlan, the campus's new budget system; and the rest of the functionality will be going into the Actuals ledger, which will also become more robust as a result. to TempBudg functionality for many funds: Planning  CalPlan Transfer of Resources  Actuals 4 CHANGE!

Berkeley Campus Funds – BIG Picture
Current Fund Group All Other Fund Groups All Current Funds except Contracts and Grants Agency Plant Loan Contracts and Grants Just to clarify what funds we’re talking about in this presentation, let’s take a BIG PICTURE look at the campus’s funds. The biggest fund group on the campus is the Current Fund. It’s where we transact the operations of the campus – where we account for the costs of running the academic enterprise, doing research, supporting our students and engaging in public service. Now most of our operations are on an annual or yearly business cycle – that’s represented by the upper blue rectangle on the left. However, an important part of our research operations occurs in the contracts and grants portion of the Current Fund, where funds are typically on a longer business cycle – two, three, perhaps five years in length. Because of this, contract and grant funds have special budget and accounting requirements. These funds are represented by the lower, blue rectangle on the left. The FY13 BFS changes we are talking about today apply only to the non-contract and grant (‘non-C&G’) funds in the Current Fund group – the upper blue box, if you will. Remember, budgeting and accounting for contracts and grants is not changing. In addition to the Current Fund, we have several other Fund groups on the campus, which are represented by the box on the right. These Fund groups capture certain specialized, non-operating activities, including capital project construction, debt service payment, and loans to students, faculty and staff. These funds are also not changing. We have more information on the specifics of the fund numbers represented by these ‘boxes’ in the appendix.

Section 2 – TempBudg Changes
INTRODUCTION TEMPBUDG CHANGES OPERATING TRANSFERS – NUTS AND BOLTS FUND BALANCE ESSENTIALS SNEAK PEEK: NEW REPORTS APPENDIX We’re now ready to look in a little more depth at the changes that are coming to our Temporary Budget ledger, affectionately known as the TempBudg.

Department of Aviation Example – Actuals
CENTRAL FUND – Summary Report Year-to-Date To start to understand what if means for the TempBudg to change, we’ve going to look at the transactions of a sample department – the fictitious Department of Aviation. For this example, we've picked a central campus 'core' fund - like or Opportunity funds. So you notice that there are no revenue balances in either TempBudg or Actuals at the department level - revenues on central funds are recorded in central campus orgs only. We've also simplified this view by excluding the encumbrance and pre-encumbrance columns that you typically see in a BAIRS report. Let's look at the Actuals column first. What's currently happening in Actuals is not changing - but let's spend a bit of time making sure we have a common understanding of what goes on there. Department information in the Actuals ledger is currently in two account types - revenues and expenses. Both revenues and expenses represent transactions external to the University - i.e. transactions with third parties. Since this is a central fund, it shows no revenue at the department level. It does show expenses, which represent payments we have made to various external third parties – for wages, purchases of equipment, supplies, travel, etc. If there were revenue recorded in the Actuals ledger, it would represent receipts from external third parties relative to UC – payments for student fees, parking permits, gifts, etc. So the Revenue and Expense accounts in the Actuals ledger show us this external activity to date for the year. This is not changing . In Actuals - Revenue and Expense are not changing In Actuals - Revenue and Expense track external activity

Journals in Current Funds (Non-C&G)
Let's look at a table which broadly summarizes the types of journal activity in BFS Actuals. When a department currently prepares a financial journal (FJ) that involves expense accounts, what is it doing? It's adjusting how we initially coded a particular third party transaction - moving that cost from one campus expense chartstring to another - and in doing so changing how we report it. If the FJ changes the expense account, then the description of what we spent our money on is revised; if the fund or DeptID (or org) is changed then how the campus is paying for the expense is modified. A common type of expense adjustment is created by recharge units, when they debit their client department chartstrings in the Actuals ledger for the expenses incurred on their behalf. You may have noticed that I’ve mentioned adjusting expenses first, rather than revenues. That's because expense adjustments are frequently prepared by the typical department, while most departments never adjust revenue. Most if not all revenue adjustments are handled by one of the central campus offices, such as General Accounting (GA) or Gift & Endowment Accounting (G&EA), and at the very least any revenue adjustment should be discussed with these central offices before the journal is prepared by a department. You’ll also notice in this table that expense adjustments occur in the Actuals ledger and use expense accounts, or 5xxxx accounts, only – that is, both the debit and credit lines of the adjusting journal are coded with an expense account. Similarly for a revenue adjustment, both the debit and credit journal lines use a revenue account. An Actuals journal that debits revenue and credits expense account, or vice versa, is rare, and almost always handled by a central campus office. As a rule, a department should never prepare this type of journal without the concurrence of a central campus office. The final point to make is to indicate that in FY13, as previously mentioned, there are no changes. So, now that we’ve looked at the types of transactions that departments currently see in the Actuals ledger, and how departments adjust those external transactions, let’s return to the summary report of our Department of Aviation.

Department of Aviation Example – TempBudg
CENTRAL FUND – Summary Report Year-to-Date To start to understand what it means for the TempBudg to change, we’re going to look in some depth at what the TempBudg ‘does.’ First off, what do the TempBudg year to date balances really tell us? They are the result of a wide variety of transactions that have occurred since the beginning of the year - in order to really understand them we would have to do a detailed analysis of the individual transactions because, in our current budget system, the expense accounts show 'snapshot' information i.e. balances as of a point in time, not transactional activity. That is to say, each transaction adds to the impact of the prior ones, so it’s not possible to look at the current balances and know with certainty what they mean. We thought about how best to group this variety of transactions, and came up with the broad categories shown on the next slide. Before you advance to that slide, spend a moment thinking about the types of transactions that might be in TempBudg for this fund.

Department of Aviation Example – TempBudg
CENTRAL FUND – Summary Report Year-to-Date We came up with 5 broad categories of TempBudg transactions. Let’s go through them one by one. First - At the very beginning of the year, last year's balance was reappropriated or carried forward in account In this case, the carryforward was a credit of $200 – let’s remember this – it will be important in a little bit. Next – we’ve assumed this is a central budgeted fund – so at the beginning of the year a journal is posted called the ‘July 1 Adjusted Budget’ which represents the download of the Permanent Budget ledger into the TempBudg ledger. This journal can be thought of as both an initial transfer of monies and an initial plan for how to spend those monies. In this case, a transfer of $14,000 in the central fund from the central campus to the department occurred, along with a plan to spend $13,000 on salaries and benefits, and $500 on supplies. Note that this transfer was within the same fund – if the central fund were 19900, for example, the journal would have debited a central campus chartstring that used fund 19900, and credited department chartstrings that also used fund The department can adjust its plans. In our example, this happened and is shown in the middle column entitled ‘Internal rebudget’. In this case, the department has even rebudgeted the $200 in account to another expense account, resulting in a zero balance in account The internal rebudget is purely a plan – as you can see from the total for that column, there has been no net change in resources available to the unit. There could have been journals to move, or transfer monies into or out of the department, affecting the resources shown as available to be spent in any particular chartstring. In this example, we see in the fourth column that there were transfers both to and from other units -- again, all within the same central fund. In our final column, we see that there were even transfers where the monies left the Current fund and went to another Fund group, such as the Plant Fund or Loan Fund. We’ll label that a transfer between Funds, with a capital F. Let’s keep this $100 transfer to another Fund group in mind as well, for future reference. From our analysis of the types of TempBudg transactions, we can see that they include 4 general functions: 1st – Carryforward from the prior year 2nd – A plan – in this case a plan for spending only, since this is a central fund 3rd – Transfers within the same fund, either to or from other units. 4th – Transfers between Fund groups, again either to or from. Notice that while the current activity in the Actuals ledger has to do primarily with external transactions and their adjustments, the TempBudg ledger activity is about internal budgeting and internal transfers - that is, internal to the University, and usually internal to the campus. In addition, there are two different types of transfers – within a fund and between Fund groups. Examples of transfers within a fund are many, including: Funds transferred from the central campus to a School or College for block grants or TAS allocations; your July 1 Adjusted Budget allocation in or another central fund; funds transferred by a Dean to a department to support faculty recruitment; the list goes on and on. You can probably think of many examples of budget journals that you prepare or know about that fall into this category. It's essentially any budget journal involving only expense accounts where the debit and credit are to the same fund, but the org (DeptID), Chartfield 1 (CF1) or Chartfield 2 (CF2) values change . Transfers between Fund groups are not as common a transaction type - many units on campus never do these, or do these rarely. Examples include transferring monies to fund a capital project or to fund equipment depreciation if you have a recharge activity, or to pay debt service on an external loan. Carryforward PLAN PLAN Transfer within fund Transfers between Funds Transfer within fund

TempBudg Transformation
CURRENT STATE FY13 FUTURE STATE TempBudg Activity New Activity Locations PLAN for Revenue and Expense PLAN for Revenue and Expense Transfers within fund PLAN for Operating Transfers Operating Transfers within fund by DeptID, CF1, CF2 NEW! New Account Series 7xxxx Here on the left we have the four general functions currently residing in the TempBudg, but we’ve listed them vertically rather than horizontally. You’ll see why in a minute. There’s planning for revenue and expense, two kinds of transfers – within the same fund and between Fund groups, and the carryforward from the prior year. With the TempBudg going away for Current funds that aren’t contracts and grants, each of these functions needs to find a new home… Let’s see how that will work. The Planning function will move to the CalPlan budget tool within the new Cal Planning system. Transfers within the same fund will move to the Actuals ledger – where they will be called operating transfers and be transacted in a new account series in the seventy thousand or 7xxxx range. Transfers between Fund groups will also move to Actuals –they will be called interfund transfers and be transacted in the existing fund balance account series, in selected 3xxxx accounts. And finally, the department carryforward that is currently in TempBudg in account will now be shown in the Actuals ledger in Account 30000, at the department chartstring level. In addition we have some enhancements: In the new CalPlan tool we will be able to plan for operating transfers, interfund transfers and carry forwards. Transfers between Funds PLAN for Interfund Transfers NEW! Interfund Transfers between Funds by DeptID, CF1, CF2 Fund Balance Accts 3xxxx Carryforward July 1 PLAN for Beginning Balance July 1 NEW! Beginning Balance July 1 by DeptID, CF1, CF2 Fund Balance Acct 30000 CalPlan BFS Actuals

Department of Aviation Example – Crosswalk to FY13
CENTRAL FUND – Summary Report Year-to-Date Let’s go back now to our Department of Aviation example, and see if we can map the summary information in the current BFS system, to the new system for our central fund. First, remember – revenue and expense in the Actuals ledger isn’t changing. So the amounts we see currently, we will find in the same places in FY13. Next, recall that there are 3 functions in the TempBudg that are moving to Actuals – where they will be called operating transfers, interfund transfers, and beginning balance. So the $14,600 credit balance in TempBudg will wind up in 1 or more of these areas – First, recall that account in TempBudg was originally a -$200 (credit) – this can now be seen in the new report as Fund Balance – Beginning of Year (account 30000), even though in the current summary report there’s no longer a balance in account because it was ‘rebudgeted’ to a different expense account during the year. Second – remember that interfund transfer of $100? In the new report format it can be easily seen in the interfund transfer balance, compared to the current report where it is hidden by all the other transactions in TempBudg year to date. Third – all the rest of the transactions represent various operating transfers, and in this report format they are shown between revenues and expenses since, at a department level, they are often net inflows to the unit – as is the case in our example. The final thing to check is that, at the end of the day, our balance is still the same in the new system as it was in the old – this is represented by the -$5,600 credit in the ‘Balance’ column in the current system’s report. And we can see the same -$5,600 credit at the bottom of the new system’s report. So all is accounted for. One thing to notice is that beginning FY13, the balance can be derived in a one column report, vs the current 3 column report, but a few more rows are required to do so. In essence, we’ve moved from a horizontal report format to a vertical one, in this case.

Journals in Current Funds (Non-C&G)
Let's look again at the table which summarizes the various types of journal activity in BFS, and add our new transfers to it. For operating transfers, the current budget journal debits and credits expense chartstrings in the TempBudg, for a wide variety of transactions, and departments prepare this type of transfer frequently. Going forward, this transaction will use one of the new operating transfer accounts in the 7xxxx series in the Actuals ledger. For interfund transfers, the current TempBudg journal uses a department chartstring coded with an expense account (an account in the 5xxxx series). Going forward, an Actuals journal will be required, and now the department chartstring will be coded with a fund balance account, which is an account series which begins with 3. This table might look a little daunting, but it gets simpler if we hone in on the most common transactions. We previously identified expense transfers in Actuals as a type of financial journal commonly prepared by departments. And this journal isn't changing, so there’s nothing new you need to learn here. The other frequently prepared journal is for operating transfers, which is moving from the TempBudg to Actuals, and from the 5xxxx account series to a new 7xxxx series. So the budget journal preparers among you by and large just need to learn how to prepare the financial journals for operating transfers. We'll go into more depth into what that means and how to do it in the next section of this class.

Expense Adjustments vs. Operating Transfers
Things to consider when you just can’t tell… Relationship to unit’s purpose Fund restrictions Dollar amount ASK! Expense Adjustments Underlying external transaction Correct expense account coding, or move cost to ‘where it belongs’ VS. As we talked about before, units mostly prepare journals to adjust expenses, or to move monies as an operating transfer. It used to be that an expense adjustment occurred in the Actuals ledger using a financial journal, and an operating transfer (although we didn’t call it that) occurred in the TempBudg ledger using a budget journal. Now both will occur in Actuals, both will use financial journals because that’s the only kind of journal that is available in Actuals. They will be transacted in different account ranges – 5xxxx and 7xxxx – but still – it could be confusing initially. So, step back and think for a moment about the basic functions of each type of journal. In an expense adjustment, you are essentially indicating that you want to modify how you coded an external transaction that has already occurred - for example a payment to a vendor for copying, or perhaps a charge to your department from a recharge unit. If you can’t identify an underlying expense transaction, it’s probably not costs that you want to transfer. Secondly, your expense adjustment is meant to change the initial transaction’s coding in some way – it could be the DeptID code initially used was wrong, or you want to improve the description by moving it from the ‘miscellaneous’ account. Or perhaps you now realize that Prof X’s research funds should be paying for it and you want to move it to her CF2 code. Or maybe you’ve run out of money in the original fund, and to keep it from being in deficit you need to move some expenses to a different fund. With an operating transfer, it’s not so much about correcting anything -- it’s about moving resources internally. Perhaps you’ve got money you don’t need for your operations in the DeptID it’s in, and your chair has decided to give some of it to another department or a component within your own unit to spend. Or, you want to track costs in a special CF1 and so you need to move monies to that CF1 to cover the costs. Expense adjustments and operating transfers can seem very distinct in theory, but we know that in practice there is always a gray area. Sometimes a very big gray area. In cases when you’ve thought about it and still don’t know which to use – consider a few things: First, how related is the expense to each unit’s purpose. If an ORU for example puts on a research conference every year for $30,000, and your chair decides to support it this year to the tune of $1,000 because he really wants the conference to be able to afford a particular speaker, it seems likely that the costs belong in the ORU and it’s your department funds that should be transferred, as an operating transfer. Does it involve restricted funds? In general, it’s a best practice not to transfer restricted funds away from the unit that administers the fund. (And of course in any event the specific costs must be allowable for that fund.) If the first two points don’t help you resolve the issue, it’s sometimes helpful to consider how much money is involved. If it’s a large amount of money, say $300,000, sometimes it’s easier to tell whether you should be moving costs to or from a particular unit, i.e. does it make sense for that unit’s costs to show an increase or decrease of that amount? It’s also usually more important to come up with the ‘right’ answer if it involves $300,000 rather than $30. Finally – if you still have questions or concerns – you should ask your colleagues or your supervisor. Maybe they’ve come up against similar issues and can help you with the answer. If not, maybe you would all benefit from having your supervisor ask your unit’s financial lead for their guidance on the matter. And staff in the Office of the CFO are also available as resources to the divisional finance leads. Operating Transfers Move monies/resources internally Give money to another unit to spend on their operations (or between DeptID, CF1, CF2 values in own unit)

TempBudg Changes and Your Department
Think of a few examples of typical TempBudg transactions you prepare in BFS, or you look for in BAIRS. How would you categorize each of them? (Select all that apply) Plan Beginning balance Transfer within a fund Transfer between funds Take some time now and think of a few examples of typical TempBudg transactions you prepare in BFS or you look for in BAIRS. How would you categorize them?

Section 3 – Operating Transfers
INTRODUCTION TEMPBUDG CHANGES OPERATING TRANSFERS – NUTS AND BOLTS FUND BALANCE ESSENTIALS SNEAK PEEK: NEW REPORTS APPENDIX In this section – ‘Operating Transfers – Nuts and Bolts’ – we will look at the structure of the 7xxxx account series, and how the accounts are used in some typical transactions.

Operating Transfers – Recap
New account range for operating transfers (7xxxx) Valid only in Actuals ledger with Current, non-C&G funds Replace most TempBudg transfers in those funds Journal uses same fund number for debit and credit To recap what we’ve learned so far about the activity we’re now calling operating transfers – First, they’re being given a new account range, so that we can easily distinguish them from other kinds of transactions. Next, these accounts are valid only in the Actuals ledger, and only for certain funds – Current funds, excluding contracts and grants. Remember the reason the 7xxxx series is being created is because the TempBudg is going away for these funds. Most of the budget journals that were prepared in the TempBudg were transfers of resources within the same fund, so operating transfers in the Actuals ledger will replace them. And just to reinforce this point – by definition, operating transfers are within the same fund – so the financial journal that will be prepared will balance by fund number – debits are required to equal credits by fund. If any of these points aren’t clear to you, we suggest you go back and review the previous section before proceeding with this one.

Operating Transfer Account Series
71xxx – Campus Support 72xxx – External Transfers 73xxx – To/From Other Divisions 74xxx – Internal DIVISION Transfers 75xxx – Internal DEPARTMENT Transfers The operating transfer account series has been divided into 5 sections. The accounts in the first section, which all start with ‘71’, will be used for operating transfers to or from the central campus resources controlled by the Chancellor and the EVCP. Accounts starting with a ‘72’ will be transfers between our campus and other locations within UC, whether OP, another campus, or between Locations 1 and J on the Berkeley campus. This is where you will find interlocation transfers of funds as well as Regents endowment payouts. The 73xxx series is for transfers between different divisions. It will include recurring transfers such as the Summer Sessions revenue sharing, as well as one-time transfers to fulfill agreements made between units in different divisions. As the title indicates, ‘74’ accounts will be for internal division transfers from a divisional point of view. This includes operating transfers between the divisional office (say a dean’s or AVC’s office), and any of the departments in that division. It also includes transfers between 2 departments within a single division. What’s left? Operating transfer activity that solely occurs within a particular department – and those will be transacted in the ’75’ accounts. As you can see, the accounts are arranged in a hierarchical way – by summarizing activity in this way, departments and divisions will be able to more easily follow the flows of funds in and out of their units, and so better understand how they both receive and distribute resources. The next slide shows us another way to visualize the hierarchical structure built into the 7xxxx series. A complete listing of new accounts is available at

Visualizing Account Hierarchy
Let’s focus first on the lower right section of this graphic where we see a yellow box which outlines the Department of Aviation. Departments are the building blocks of the campus and of the design for this account hierarchy. The box for this department shows it has two fields of study – Rotorcraft and Fixed Wing – each of which has its own org or DeptID. Any operating transfer involving only these orgs would use an account in the ‘75xxx’ series, which is designated for internal department transfers. A slightly larger blue box surrounds the Aviation department box along with the other departments that comprise the College of Aeronautics. Any journals transacted within this divisional box between its departments would use an account in the ‘74xxx’ series. The next level – transfers to and from campus divisions – is indicated by the gray box that surrounds the College of Aeronautics and all other divisions, here represented by the VC Research control unit. By now you’ve no doubt gotten the point – any journals transacted within this box between divisions would use an account in the ‘73xxx’ series. And finally, transfers from the central campus or other University locations to any of the campus divisions (or vice versa) would use ‘71xxx’ or ‘72xxx’ account numbers. This new account structure will clearly require us to know the hierarchical relationship between the orgs in our journals going forward, in order to code the operating transfers accurately. The appendix contains links and webpage snapshots of how to use the BFS Master Organization Tree to do just that. BHS 6/15/12

New Operating Transfer Account Series
71xxx – Campus Support 72xxx – External Transfers 73xxx – To/From Other Divisions 74xxx – Internal DIVISION Transfers 75xxx – Internal DEPARTMENT Transfers For Use By Central Campus Only Divisions and Depts Here we see the 5 sections in the operating transfer account series again. It’s important to note that the first two – those accounts beginning with 71xxx or 72xxx – are for use by the central campus only. This is in part for control reasons – the 72xxx accounts in particular are used in complex transactions that we want only central campus offices to handle. It’s also due to the positive impact this will have on reporting, as we will see a few slides from now. The other 3 account sections are available to departments and divisions to use. There are a few special cases to note. Within the 73xxx series, we’ve created a number of accounts beginning with ‘731’ to handle some of the common, campus wide transfers between divisions that occur. So, for example, there is an account for personnel awards and training that should only be used by the department that distributes HR-related awards and training funding to the rest of the campus. There is also a series of accounts beginning with ‘741’ that are transfers from the divisional level to the departments within the division. It will be up to each division to decide whether they want to restrict their use or not. Special cases: 731xx – Campuswide Distributions 741xx – To/Fr Dean/AVC Office

Operating Transfers - Chart of Accounts Extract
Partial listing of accounts: Just to give you a further feel for these new accounts, let’s take a look at a partial listing, and then use them in a few examples. Here you can see a few of the ‘71’ or Campus Support accounts, along with some ’74’ and ‘75’ accounts. One thing you’ll notice is that there is a bit of repetition – There are accounts for block grant allocations and for TAS (Temporary Academic Support) at both the campus and division level. There are also more than one account to reflect what was formerly transacted in the TempBudg as the 7/1 Adjusted Budget – in this listing that would include the General Allocation account as well as the Department-Initial Transfers account. *cf 7/1 Adj Budget The full listing of operating transfer accounts is available at the Campus Budget Office website at

Example 1 – Cascade Effect – TAS Accounts
Partial Journal Lines Partial Summary Reports 1 Dept. - Org DEPT1, All Funds 74120 Div-TAS -150 75195 Dept. - Other Int'l Trans 60 Total Operating Transfers -90 Central Office Amount CENTR 100 DIV1 -100 2 Division Amount DIV1 150 DEPT1 -150 Dept - All Orgs, All Funds 74120 Div-TAS -150 Total Operating Transfers We’re going to look first at how some of these duplicate accounts will allow us to show the ‘cascade’ of funding in our summary reports rather than only showing the net impact. What do we mean by that? Let’s look at Temporary Academic Support or TAS as an example. Beginning in FY13 the TAS allocation to academic units from the EVCP will come to your division in account ‘71’ means it comes from which level? Yes – from the campus as campus support. When the division turns around and passes TAS funds out to its department, it will use its divisional TAS account, that starts with – which number? That’s right – ’74’. In this case, account The department in turn could turn around and redistribute the funds again, internally. But in this case they would use their departmental account. There are a couple important things to notice here – First, the location-fund-DeptID codes are the same in both the debit and the credit. Now, since operating transfers are within the same fund by definition, the fund would have to be the same – and the location as well. The fact that the account is the same is by design – this will have benefits in reporting, as we shall see. Second, when the division redistributes resources to its department, and when the department redistributes resources within its orgs – they each use their own operating transfer account, the division doesn’t use the central campus’ account, and the department doesn’t use the division’s. So what you wind up with is a sort of cascade effect – where the same dollar is moved in steps, with a different account used each time. Again, this will enhance our reporting potential. Third, the amount that the division hands out doesn’t have to be the same amount that they received. The division might be adding some of its own resources. It may also be distributing a different funding mix. The same can be said for the department. All these concepts apply to other transactions, too – block grants, start-up, etc. We’ve created a portion of a sample summary report by account for the department and the division – each department org and the department as a whole can now see how much they received for TAS and where it came from. At the individual org level, the department can see ‘ins’ and ‘outs’ – not just net balances the way it is currently. And if we look at the middle report - which summarizes activity in all department orgs – we see an interesting thing – only the transfer between the department and the division appears – the transactions within or internal to the department don’t appear because they net to zero due to our rule that each journal balance by account, not just by location and fund. Similarly for the division report – since we’ve said that this report is for all orgs, it too only shows the transaction between the division and the campus, not transaction 2 or transaction 3, which are both internal to the division, and so net to zero. This allows you to know a lot – in big picture terms – where the money came from or went to and, in many cases, what it was for. It won’t tell you everything, for that you may still need to dive into the detail transactions. BUT the detail transactions will now be organized into these smaller ‘buckets’ for you by account, so rather than pulling the universe of transactions you’ll be able to zero in on just a portion – which will be more efficient. 3 Department Amount DEPT1 60 DEPT2 -60 Division - All Orgs, All Funds 71220 TAS -100 Total Operating Transfers Cascading can be applied to block grants, faculty start up, etc.

Example 2 – Where Did the July 1 Adj Budget Go?
Partial Journal Lines Partial Summary Reports Dept - Org DEPT1, All Funds 71110 General allocation -500 74120 Div-TAS -150 75101 Dept - Initial Transfer 150 75195 Dept - Other Internal Transfer 60 Total Operating Transfers -440 Central Campus Funds CENTR 500 DEPT1 -500 Let’s look at a few other accounts. In this case, accounts that help us track the operating transfers that come from the PermBudg. Recall in one of our examples from Section 2 about the TempBudg, we looked at a July 1 Adj Budget entry in a central campus fund, which originated in the PermBudg ledger. Just like in the TempBudg, the PermBudg is handling both a planning function and an operating transfer function. The PermBudg isn’t going away just yet, but it will no longer feed into the TempBudg because, by definition, all of the funds in the PermBudg are Current funds, none of them are contracts and grants, and the TempBudg is going away for just these funds – the Current funds that aren’t contracts and grants. So, the operating transfer component of the PermBudg will be recorded in the Actuals ledger beginning July 2012, using the 7xxxx series of accounts to do it. It gets a little complicated so let’s start with the central campus funds, like 69750, or Off-the-Top, and Units would previously have received these funds budgeted to a variety of expenditure accounts. But now we are budgeting by expense accounts exclusively in CalPlan, so rather than receiving these funds in multiple chartstrings in the TempBudg, you will receive it in far fewer chartstrings in the account in Actuals. Here again, notice that the journal’s debits and credits balance by the location-account-fund combination. Also, I want to mention that in this example and the previous one, we’re showing partial journal lines for simplicity – CF1 and CF2 values could also be used. Moving to the second journal, with a permanently budgeted fund that ‘belongs’ to the department, we mean a fund where the revenue is recorded in a department org or DeptID in Actuals. This applies to many funds, such as auxiliary and self-supporting funds, and the concept is also applicable to recharge funds. Here again, the revenue and expenses of the fund will be budgeted in CalPlan. The departmental ‘Initial transfers’ account, 75101, will be used to reflect the transfer of the funds from the department org associated with the revenue (or recharge), to any other department org that is budgeted in the PermBudg, as of July 1. For FY13 we will be coding all non-central fund ‘Initial Transfers’ at the departmental level. There may be some transactions that would more properly use an inter-divisional (73201) or divisional (74101) transfer account, but for the FY13 transition we will not be programmed to distinguish between those and department transfers, so they will all be coded to the departmental account We believe this will affect only a very few funds and orgs on the campus – but please let us know if you are impacted so we can take it into account for next year. Finally, I just want to mention the Regents endowments since they are also budgeted in the PermBudg. We have created a unique account for the endowment payout, account 72210, since this is a resource that many units would like to be able to track easily. In addition, the PermBudg estimates that used to appear in the TempBudg July 1, only to be reversed when the OP transfer was available in August, were a planning function. Their equivalent will be budgeted in CalPlan, and will not appear in Actuals. The campus will wait to transact the Regents endowment payout in Actuals until we receive the transfer of the true amounts for the year from UCOP, typically at the end of August. The partial summary reports add the transactions in this Example 2 slide to the transactions previously shown in Example 1. You can see the same power of the 7xxxx series hierarchy and coding conventions to provide high level detail at both the DeptID and Department levels. Departmental funds xxxx-DEPT1 150 xxxx-DEPT2 -150 Dept - All Orgs, All Funds 71110 General allocation -500 74120 Div-TAS -150 Total Operating Transfers -650 This is NOT a cascade example. These are separate transactions. Note: Regents Endowments are located in the 72xxx series.

Related Changes – New and Improved Accounts
NEW REVENUE ACCOUNTS Gift Fee (contra revenue) Assessment on unrestricted funds Assessment on restricted funds Revenue from UCBF Unrestricted Restricted Donation Endowment payout Other As part of planning for the changes to BFS, University Relations took the time to rethink some of their business processes. And we’re happy to report some changes that we think you’ll agree are welcome improvements. For those of you with gift funds, the gift fee assessment will now be recorded as a reduction (or debit) to your gift revenue in Actuals, in the revenue account range, 4xxxx. So you will be able to easily see both the gross amount of your gift as well as the net amount after the gift fee is assessed. (For those of you who have certain sales and services funds, this assessment mechanism is similar to the one used to assess the Administrative Full Costing (AFC) charge, which also uses a contra revenue account.) The second enhancement has to do with revenue campus departments receive from the UCB Foundation. Currently, these are coded with the same revenue account as other gifts, and one has to run a special report to tell which gifts are from UCBF, and a detail report to see what types of gifts they are. Beginning in FY13 we will use some new accounts that will let departments easily see at a summary level the flow of funds from UCBF to the campus, as well as break those funds into several major groupings – donations, endowment payouts and ‘other’. Kudos to General Accounting for approving these new approaches, and to the University Relations’ CADS and Gift Accounting teams for making the needed system changes. While the focus of this course is on Current funds, let me just mention in passing that new revenue accounts for the gift fee and for UCBF gifts have also been created in the Plant Fund.

Operating Transfer Controls
BFS System Controls Location-Account-Fund combos in 7xxxx series must be in balance 7xxxx can only be used with Current Funds that are not C&G YOU! Don’t use 71xxx, 72xxx accounts Only use 731xx if appropriate Identify as internal vs. external to your Division/Dept - and code accordingly Know when to use expense transfer vs. operating transfer Campus best practice: Unit with the debit prepares the journal We were able to get a few controls programmed into the system – heartfelt thanks to the systems folks in the Controller’s Office for their great work. The BFS system will not let you edit your journal unless the same location, account and fund are used for both the debit and the credit. In the appendix there is an example of the error message you will see in this case. In addition, the system will only let you use the 7xxxx accounts in Actuals with the non-C&G Current funds. If you use an incorrect fund, the journal will process and show E for error in each line that contains an erroneous fund. The slide in the appendix also shows you what this error looks like. But we can only do so much with system programming. In the end, we rely on each of you with access to BFS to understand how BFS is changing and how this affects the work you do. In this case, department BFS users need to know not to create or approve journals with the Campus Support and External Transfers account (the 71xxx and 72xxx accounts). And you need to know not to use the To/From Other Divisions accounts that are for specific campus-wide transfers (the 731xx accounts), unless you are in a department that prepares one of those transfers. You need to take the time to understand what the DeptID or org codes in your journal mean, so that you know whether the operating transfer is within your department or within your division, or involves a department outside your division. The appendix contains slides that show two ways to access the BFS Master Organization Tree, which should help you determine this. You need to have a clear understanding of whether your task is to adjust expenses – in which case your journal will use expense accounts (in the 5xxxx series) -- or whether you are transferring resources, which will use the operating transfer accounts (in the 7xxxx series). And finally, don’t forget the campus best practice – the unit with the debit prepares the journal. Ultimately – you are our best control.

Operating Transfer Take Homes
Operating transfers move monies within the campus, within a given fund These transfers use a new account series (7xxxx) in the Actuals ledger In your journals, each location-account-fund combo must balance i.e. Debits = Credits The account hierarchy allows more meaningful summary reporting! Take a moment to go over the points on this slide. If any of these ‘take homes’ are unclear to you, you might benefit from reviewing the material in this section again.

Important Changes in Program Code Use
There are some important changes in the uses of the program code field that you need to be aware of. Currently, program code is a required field with all expense, or 5xxxx account, transactions in Actuals and Encumbrances. This is not changing – program code still needs to be included with every one of these transactions in order to provide information essential for financial reporting. Through FY12, we also budgeted by program code in the 5xxxx account series, carried forward balances by program code and applied deficit clearing rules by program code. None of this will occur beginning in FY13, for the non-contract and grant Current funds. Revenue transactions in the Actuals ledger are currently not coded with program code, and operating transfers won’t be either. Why are we doing this? A lot of the time, the use of program code for budgeting purposes did not provide any real value to the transaction and caused units a lot of additional work during the year to prevent or clear deficits by program code. It also tended to keep our focus on the detail, rather than promoting our ability to see the big picture, and plan at a higher, more strategic, level. Now, we realize that there were times when budgeting by program code served an important control function. In these cases, FY13 will serve as a transition period. During this year the PermBudg will still be available for reference, and we will have to work to develop alternative chartfield strategies where needed. WHY? It supports the move to high level Strategic Planning and it reduces unproductive journaling

Operating Transfers and Your Department
Think of some typical TempBudg operating transfer transactions you prepare in BFS or look for in BAIRS. In FY13, what account series would be used for each? (Choose from the following:) 71xxx Campus Support 72xxx External Transfers c xxx To/From Other Divisions 74xxx Internal DIVISION Transfers e xxx Internal DEPARTMENT Transfers Take a minute or two and think of some typical TempBudg ‘operating transfer’ type transactions you prepare in BFS or look for in BAIRS. In FY13, what account series would be used for each?

Section 4 – Fund Balance Essentials
INTRODUCTION TEMPBUDG CHANGES OPERATING TRANSFERS – NUTS AND BOLTS FUND BALANCE ESSENTIALS SNEAK PEEK: NEW REPORTS APPENDIX In the Fund Balance Essentials section we will look in a bit more detail at fund balance accounts and transactions.

Fund Balance Accounts - Review
Fund Balance accounts are in the 3xxxx series Starting in FY13, in the Actuals ledger (for Current, non-C&G funds): Dept Beg Balances are coded in account 30000 Interfund transfers will be coded with Dept chartstrings Take a minute to review these concepts previously covered in the ‘TempBudg Changes’ section of this course. If any of these are unclear, you might benefit from reviewing that section before proceeding.

Interfund Transfers Quick Reference – Select Accounts
This slide shows selected fund balance accounts. There are over a hundred fund balance accounts. Most of them are used for central campus transactions, such as the capitalization of capital projects, and certain reclassifications of expenditures at fiscal close. The half dozen accounts shown on this slide are the accounts that will be used for departments’ interfund transfers. As you can see, most of the time these journals will be prepared for the department by a central office. This additional level of control is due to the need to be sure we follow proper University approval and accounting processes. Contact information is shown at the bottom of the slide. There are two instances where departments are allowed to prepare their own journals (provided they follow the posted instructions): In the case of using account to transfer funds to or from the Reserve for renewal and replacement, and when using account to transfer funds to or from the Loan Fund group. * Beginning July 2012 go to for instructions and forms ** Contact: Principal Analyst Rico, or Director Martinez,

Example – Current Fund Transfers to Plant
Partial Journal Lines in Actuals Partial Summary Reports Dept – Org DEPT1, All Funds 33100 Retire Indebt 400 34010 Unexp Plant 300 Total Interfund Transfers 700 Fund Debt Service DEPT1 400 DEPT2 xx-00800 -800 Let’s look at two examples of how department interfund transfers to Plant would be coded in Actuals. The first example shows a transfer of $800 from two department chartstrings for debt service. Note that in an interfund transfer, the journal does not ‘balance’ by location-account-fund as operating transfers did – as you can see, debits in chartstring do not equal the credits. While the same location and account values are used on each line, the journal uses a different fund number on the Plant Fund line. There is not a one-to-one correspondence between the Current fund numbers and the Plant fund numbers, and the Plant fund numbers can vary depending on the specific debt being repaid. The second example shows a transfer of $300 from the department to fund a capital project. Here again a different fund number is used on the plant fund side. Keep in mind that, as before, these are simplified Actuals journals which only show partial chartstrings. A full journal line could also include CF1 or CF2 values (but not program code). These partial journals also do not include the balancing entries using the financial control account In addition, an interfund transfer to fund a capital project would require a budget journal on the Plant fund side. In the partial summary reports on the right, you can again see how the department will be able to see more information about funds flows at the summary account level than previously. In the first report for department org DEPT1, a portion of the transfer activity can be seen. The second report for all department orgs and funds provides a complete summary for the department of its interfund transfers to date by broad category. If more detail is required, the unit can query the specific account number that is of interest. Dept - All Orgs, All Funds 33100 Retire Indebt 800 34010 Unexp Plant 300 Total Interfund Transfers 1100 Fund Capital Project DEPT1 300 -300

Fund Balance Accounts Controls
BFS System Controls TempBudg: Journals with fund balance accounts require central campus approval Actuals: NO automated controls YOU! Don’t adjust Beginning Balance amounts – account 30000 For interfund transfer accounts Don’t use yourself unless authorized Follow campus guidelines ASK! There are only limited BFS system controls over journals using fund balance accounts. The Plant Fund group will continue to use the TempBudg, and any budget journal prepared in coordination with an Actuals journal will still require central campus review and approval. But in the Actuals ledger itself, there are currently no automated controls in BFS. So just about all of our system controls reside in you, the BFS user. In contrast to the past, where units were allowed to adjust the carry forward balance in TempBudg account if they wished, units are not supposed to adjust the beginning balance in Actuals fund balance account When it comes to transfers between Fund groups, please only prepare journals for the two cases where units are authorized to do so. Otherwise, please contact the appropriate central office as indicated in an earlier slide. As with the operating transfer account series, we rely on each of you with access to BFS to understand how BFS is changing and how this affects the work you do.

Fund Balance Take Homes
Interfund transfers occur in the fund balance account series (3xxxx) in the Actuals ledger Beginning in FY13, the Current fund (non-C&G) side of the transfer will be coded with department chartstring values, which will allow for more meaningful summary reporting Transfers between funds can be complex and typically require central campus involvement This slide summarizes a few key points in the Fund Balance Essentials section. Take a moment to read them. If any of these points are unclear to you, you might benefit from reviewing the material in this section again.

Section 5 – Sneak Peek: New Reports
INTRODUCTION TEMPBUDG CHANGES OPERATING TRANSFERS – NUTS AND BOLTS FUND BALANCE ESSENTIALS SNEAK PEEK: NEW REPORTS APPENDIX The final section in this course is a sneak peek at the work we’re doing with BAIRS reports.

BAIRS Reports: What is changing in FY13?
For Current funds (excluding contracts and grants) Some updated versions and new reports are needed Why? TempBudg is going away for these funds Reports need to reflect new elements and formats in Actuals Operating transfers Interfund funds Beginning balance Opportunity to improve existing data presentation What’s changing with BAIRS reports in FY13? Well, for funds affected by the changes we’ve been talking about – the Current funds that aren’t contracts and grants – some of the existing reports will need to be updated, and new reports need to be developed. Why is this? With the TempBudg going away for these funds, and with new accounts for transfers and beginning balance coming into use for department transactions, we need reports that will reflect these changes and present them in useful formats. This is also an opportunity to enhance what we have even for data elements that aren’t changing.

BAIRS Reports: Change Process
Focus group formed - department users of BAIRS reports Tasks include: Identify most important existing reports and needed changes Brainstorm new reports and report design Prioritize – develop first vs. develop later Programmers have begun development work Discussion underway on reporting needs for Faculty/PI reporting Education strategy under development A focus group has been formed comprised of BAIRS report users from across the campus. This group will help us identify the most important reports that need to be changed, brainstorm new reports and their design, and prioritize report development. Programmers have already begun development work, and discussions are underway on faculty/PI reporting needs and the strategy for rolling out the new reports to the campus.

BAIRS Reports: What will change?
Focus Group is still at work, but an early glimpse at what might change… NEW FOLDER in BAIRS Reports Directory: While final decisions have not yet been made, changes under discussion include: A new folder in the BAIRS report directory to hold the new and modified reports

BAIRS Reports: What will change? (Cont’d)
DASHBOARD improvements: Improvements to existing report dashboards are being considered, for example to modify the account dropdown menus so users can easily query for fund balance or operating transfer account activity, or query for all the accounts that will now contain transactions at the department level.

MODIFY existing reports, such as Customer Report by Fund: Changed Expenses to Actuals Existing report formats may be improved. In this example, a column previously titled ‘Expense’ could more properly be captioned ‘Actuals’, and lines for transaction totals could be added. Added Ending Balance

NEW REPORT FORMATS with transfers, beginning balance in Actuals: New report formats are being considered that include the new transfers series and beginning balance account in Actuals. Do you recall the example of a new vertical report format we looked at in the ‘TempBudg Changes’ section? In this report format, the same account elements are arrayed horizontally rather than vertically. This allows the report to summarize department activity and balances by fund. By arraying accounts horizontally and funds vertically, this format could accommodate a department with dozens or even hundreds of funds.

BAIRS Reports: When are they happening?
New reports and major changes to existing – beginning August 2012 Priority of development based upon Usage Focus group input Management reporting needs Stay Tuned! More information to follow in August 2012. New reports and major changes to existing BAIRS reports will start to roll out beginning August The priority of report development and modification will be based on several factors: How often a report is currently used, input from the focus group, and requests from campus management for new summary reports. Communications will go out to the campus later this summer as report development proceeds.

Existing BAIRS Reports
Until the new reports are ready … Many existing BAIRS reports* can be used: Operating Transfers: Select “Range” from dropdown menu Input desired 7xxxx values Choose ‘Value List’ for individual accounts Interfund Transfers/Beginning balance: Input desired 3xxxx values Some menus also include ‘3 – Fund Balance’ * Including GL Expanded Detail, GL Detail Standard, GL Sum by Five Chartfields While we’re waiting for the new reports to come on-line, we can still use many existing reports to provide information we need about FY13 transactions. For example, operating transfers can be queried from many reports. Using the account dropdown menu on the report dashboard, you could select ‘Range’ and then input the desired 7xxxx series account values. In the alternative, you could choose ‘Value List’ and input individual account numbers. Similarly, to view interfund transfers or the beginning fund balance account 30000, you could use either the ‘Range’ or ‘Value List’ selections in the Account dropdown menu. Some menus also already include a selection specifically for the fund balance accounts.

Existing BAIRS Reports Availability
Existing BAIRS Reports continue to be available: For all Funds Most useful for Contracts and grants Agency, Plant and Loan funds Historical reporting for Current, non-C&G And of course, the existing BAIRS reports will continue to be available for all funds, but will be most useful for contracts and grants, and Agency, Plant and Loan funds, as well as for historical reporting for Current funds which are not contracts or grants.

Are you now familiar with the answers to these questions?...
Course ‘Take Homes’ Are you now familiar with the answers to these questions?... Why is BFS changing? What isn't changing in BFS? Where will TempBudg functions move to in FY13 for many funds? What are operating transfers and how do I use them? What are interfund transfers? How will I tell what my balance is without the Temporary Budget? Congratulations – you’ve made it to the end of this presentation, and hopefully learned a lot in the process. We’ve reproduced here the questions we posed to you at the beginning of the course. Take some time to read them over and think about their answers. As you do so, ask yourself if you feel comfortable with your mastery of the material. If not, consider reviewing the relevant section(s) of this course, either now or later. Remember, you can return to this presentation as many times as you like. Additional training and resource materials are available on the Budget Office website. These materials will be enhanced and added to over the next few months, so you may want to check in from time to time to see what’s new.

Next steps: Next… Take the on-line quiz
Go to the blu portal and select Learning Center course BECBO002 Still have questions? Sign up for one of the Advanced Q&A sessions Go to the blu portal and select Learning Center course BECBO003 You have a couple options for next steps. A short on-line quiz is available through the blu portal at the Learning Center. You can take it now or later. And Advanced Q&A sessions are available for sign-up at the Learning Center through blu as well. If questions come up after you try to apply the information from this course to real world examples in your unit, bring them to one of the sessions for group discussion and (hopefully) resolution.

OPERATING TRANSFERS – NUTS AND BOLTS FUND BALANCE ESSENTIALS
Section 6 - Appendix INTRODUCTION TEMPBUDG CHANGES OPERATING TRANSFERS – NUTS AND BOLTS FUND BALANCE ESSENTIALS SNEAK PEEK: NEW REPORTS APPENDIX We’ve included some supplemental materials in this appendix that you may find useful.

APPENDIX 1: Helpful Links
Short Description Source Link Campus Budget Office BFS ‘Master Organization’ tree CalPlanning Budget Tool Preparing Budget and Financial Journals These are a few link to key campus websites. The Campus Budget Office website is where to go to find the latest resource materials on the FY13 BFS changes. The BFS Master Organization Tree site will help you determine the correct operating transfer account to use, in cases where a DeptID is not already known to you. The CalPlanning site provides additional information on the campus’s new budget tool. The last item is a link to the BAI site for BFS training, and contains links to UPK training on the mechanics of preparing budget and financial journals.

APPENDIX 2: Campus Fund Groups – Overview 1
Fund Range Fund Group NO CHANGE CHANGE Agency X Plant 1 - Unexpended Plant Plant 2 - Retirement of Indebtedness Plant 3 - Investment in Plant Loan Current Funds Contracts & Grants All except C&G Plant 4 - Renewal and Replacement 77000 & Up All except C&G This table shows the fund numbers associated with each Fund group on campus. Current Funds includes Contracts & Grants funds along with many others (i.e. State General funds, Student Tuition and Fees, Gifts and Endowments, Auxiliary, Recharge, Sales and Services, Indirect Cost Recovery, Misc Income)

APPENDIX 3: Campus Fund Groups – Overview 2
FUNDS CHANGING IN BFS IN FY13 FUNDS NOT CHANGING IN BFS UCB Fund Range* CURRENT FUND (excl C&G funds) Agency, Plant, Loan Funds Plant - Reserves for Renewal/Repl Current – All C&G funds 91000 – 91999 92000 – 92999 * Effective as of July 1, Fund ranges in the Current Fund are subject to modification. For the most up-to-date info go to to the BAI/BFS website at This slide provides a more detailed look at the fund ranges within the Current Fund group than the overview on the previous slide. You can use it to tell whether a particular fund is changing in FY13 or not.

APPENDIX 4: BFS Master Organization Tree by Division
While you all know what office you work for, departments are formally defined in BFS by their placement in the ‘Master Organization’ tree, which is available on the BAI website at A partial view of the website page shown below lets you choose between two reports: This slide, and the 2 that follow, are screenshots of the BAI website which allow you to look up individual orgs, or DeptIDs. They will be useful if you need to know whether a DeptID value is within your department or division, or not.

APPENDIX 4: BFS Master Organization Tree by Division (Cont’d)
If you select the first report and click on the “Manually-Produced Excel Reports” option, it will take you to the table shown below (partial view): Use the “find” function within Excel to find specific information within the table. For example, to find Org Code “26175”… Highlight column “O” of the spreadsheet, then hold your and keyboard keys, then type “26175.” Similarly, you can navigate to specific divisions (column “C” using the Level 3 code, or column “D” using the division’s name) or to specific departments (columns “G” and “H”). Ctrl F

APPENDIX 4: BFS Master Organization Tree by Division (Cont’d)
If you select the second report and click on the “Production-Based Tree Reports” option, it will take you to the table shown below (partial view): At this website, you will find a list of all the campus divisions. Clicking on a division link will take you to its place in the Master tree at what’s called node level 3. You can then browse the detail for your division, to look for your department’s place in the tree (at node level 4) as well as for the individual DeptIDs codes for each department in your division. This information allows you to review the DeptID values for a given operating transfer, and confirm whether the transfer is within your department, between departments in your division, or between your division and another.

APPENDIX 5: Financial Journal Errors – Operating Transfers
#1 Combo Edit Error Message Box #2 Journal Status Error Message (Contract and Grant fund used with a 7xxxx account) There are controls programmed into the BFS system to ensure journals with operating transfers balance by location-account-fund, and that operating transfer account numbers are not used with contracts and grants, or non-Current funds. This slide shows the error messages you would receive your financial journal used the 7xxxx series accounts incorrectly.

APPENDIX 6: From to 30000 If you like to know the detail behind an explanation, not just the big picture, this is the slide for you. It shows how carry forward balances from the prior year were recorded in past years, and how they will be recorded beginning in FY13. The high level view is that these balances are moving from account in TempBudg to account in the Actuals ledger. The more complete answer is that account has always been used to record the carry forward amounts in Actuals, but up until this year it was at a summary level for the fund, and used a central campus DeptID. Beginning in FY13, it will be coded at the detail level using department chartstring values.

APPENDIX 7: BAIRS Focus Group Members
Focus Group Facilitators: Laurent Heller, Barbara Wezelman & Andy Zirman Focus Group Member Unit Carole Page Biosciences Divisional Services Linda Fitzgerald Art History Veronica Padilla EALC Judith Coyote EPS Marianne Bartholomew-Couts History Allen Lazaroff EHS Cain Diaz Research Christine Owen Dat Le College of Engineering - Dean's Office John Molina Mechanical Engineering Kevin Argys Haas School of Business Curtis Leung CalPlanning Team. & BAIRs Support Alfred Alipio Jocson CalPlanning Team.& BAIRs Support Many thanks to the members of the BAIRS Focus Group for their contributions.

FY13 BFS Changes Training Presented by the Office of the CFO

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FY13 BFS Changes Training Presented by the Office of the CFO

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