2. The Budget Process Understanding the Basics of the Budget Process at ASU

3. Budget Office Functions and Responsibilities Financial Planning Legislative Appropriation Request Operating Budget Capital Budget Budget / Accounting Reconciliation

4. The Budget Process Putting all the pieces together Expense POSN Orgn Program Acct Benefits Revenue Fund

5. Agenda Budget Basics What is a FOAP? Financial Monitoring: Reconciling and Forecasting The Budget Adjustment Process

6. Budget Basics What is a budget? A budget is a plan or spending authority Budget is not another word for cash

7. Budget Definition A financial plan that sets forth the resources necessary to meet a set of goals (departmental, college, campus) for a certain period of time.

8. Two Parts to Every Budget 1.Sources −State Appropriation −Student tuition and fees −Self-generated revenue in auxiliary units or self-supported designated funds −Cash transfer IN from a different FUND group 2.Uses −Salaries and benefits −Operating expenses −Travel −Utilities

9. Budget Cycle Planning -Develop goals, objectives Development -Estimate cost of attaining each goal -Project revenues Implementation -Record budget in Financial System Monitoring -Compare budget to actual expense -Investigate variances Control -Take corrective action

10. Budgeting Practices by Fund Group E&G Funds, include Funds 0010, 0018, 0075 & 0090 −Sources of funds include State Appropriations, Tuition A and Other Fees identified as State funds by the Texas Education Code −Uses of funds must follow State Guidelines and Regulations −Budget = Spending Authority Designated Tuition Fee, Fund 0100 −Sources of funds include Tuition B and other revenue generated by activities supported by Designated Tuition Fee Funds −Budget = Spending Authority

11. Budgeting Practices by Fund Group (Cont’d) Income Supported Designated Funds, include Funds 0103 to 0991 −Each fund generates it’s own source of funds −Budget = Plan Auxiliary Funds, include Funds 1200 to 1330 −Self-contained business units −Generate their own revenue −Budget = Plan

12. FOAP What is a FOAP? FF und – identifies the source of funds (revenue) OO rgn – identifies the organization AA ccount – identifies the account or object of expense PP rogram – identifies the program code

13. Financial Monitoring How can I monitor my department’s budget? Reconcile your records to the General Ledger monthly. This can be done by using reporting tools in Self-Service Banner or INB Banner. Training is available through the Controller’s Office. How do I monitor revenue? Reconcile your records to Schedule 2 of the Monthly Operating Report.

14. Reconciling – Why is it Important? Foundation of Internal Control Insures compliance to Federal and State Regulations Protects the resources of the University by being good stewards

15. Reconciling – What Do I Look For? Transactions are posted for the correct amount −This should include the student & hourly payroll Transactions are recorded in the correct account All transactions that should be recorded are recorded

16. What Should I Do if I Find an Error? and get it corrected as soon as possible! For questions regarding the payment of an invoice, contact the Accounts Payable Department at 2014. For payroll questions, contact the Payroll Services Office at 2727. For budget questions, contact the Budget Office at 2727.

17. Financial Monitoring - Forecasting What is financial forecasting? Projecting what the total revenues and expenses will be at the end of the fiscal year. Why is it important? To determine whether or not your fund will end the fiscal year “on target” and in good financial health.

18. Financial Monitoring - Forecasting How do I go about forecasting my fund? Begin by posing this fundamental question…. Is the balance available in my fund adequate to cover the expenses that will be incurred for the rest of the fiscal year? What if I find a problem? WASTE NO TIME. Make sure and tell someone who has the authority to authorize a change in spending patterns.

19. Completing a Budget Adjustment

20. Completing a Budget Adjustment - Appropriate Approval If the Budget Adjustment does not involve fund balance, revenue, or regular salaries, then the appropriate approval is the Account Manager and one up. Otherwise, the appropriate Vice President and the President must sign the adjustment.

21. Completing a Budget Adjustment - Guidelines

22. Review A Budget is not cash. It is a plan or spending authority granted to an Account Manager. Reconciling your records monthly is the foundation for internal control and insures protection of the University’s resources. A Budget Adjustment form must be completed to transfer funds.

23. Organizational Chart Sharon Meyer Vice President Finance & Administration Angie Wright Assistant Vice President Finance & Administration Dr. Rallo President Human ResourcesPayroll ServicesBudget Office Lisa Sheppard Budget Assistant Tammy Barnes Budget Analyst Dr. Rallo President

24. Questions?