1. May 21, 20071 Budget Activity Budget Roll Forward Relationship to Reserves Year End Training May 21, 2007

2. D. Brothwell, CPSLO2 Same World Different Perspective The view of the world by the Budget Office The view of the world by the accounting office

3. May 21, 2007D. Brothwell, CPSLO3 Systemwide Allocation Transfers - SWAT SWAT documents are a notice to the campus budget office that additional cash will be deposited into the campus CSU Operating Fund –Budgets should be recorded to reflect the new revenue and the corresponding spending authority – net zero The revenue will be recorded in FIRMS object code 506100 –Funds could also be transferred out - 680100 would be used

4. May 21, 2007D. Brothwell, CPSLO4 SWAT Accounting Entries Either a CPO or an AD-NOAT never both, CPO = Cash/Investment entry, AD-NOAT = FBC entry. Both credit the same revenue account (506100)

5. May 21, 2007D. Brothwell, CPSLO5 SWAT Budget Entries Budget is posted to 506100 regardless of the method of deposit (AD- NOAT or CPO) then recorded for expenditure in the receiving departments accounts

6. May 21, 2007D. Brothwell, CPSLO6 Balance in SWAT accounts should be zero

7. May 21, 2007D. Brothwell, CPSLO7 Definitions Budget Balance Available (BBA) CSU Fund 485 Budget – Actuals – Encumbrances = BBA If Revenue and Expenditures Budgets NET to Zero, then BBA + Encumbrances = Fund Balance

8. May 21, 2007D. Brothwell, CPSLO8 Establishing Reserves in Actuals Ledger 485 – CSU Operating Fund Reserve Entire 305002 Fund Balance –Ensure the merry-go-round has stopped Accounting - no more entries to impact Fund Balance Budget Office - no more entries to impact BBA –Allow Time to Calculate Each Reserve Amount –Includes all your CMS Funds within 485 –This is a Journal Entry in Actuals Only before Close –The 304XXX Object Codes Must Net to Zero

9. May 21, 2007D. Brothwell, CPSLO9 Budget Considerations Does your campus sweep budget balances (BBA) to contingency or roll them forward to the department –PeopleSoft Fund does not change from year to year so any differences between what was accrued and what is paid in the subsequent year will be processed within the users account

10. May 21, 2007D. Brothwell, CPSLO10 Budget Considerations Managing Contingencies –Campuses historically manage contingencies thru the budget process. Prior year savings will be a reserve amount in fund equity Budget offices will more than likely establish a budget for this in order to manage the allocations and the transfers to departments in the subsequent year This budget will not be recorded in the reserve account Pre-closing reserve entries per “Interim Guidelines”

11. May 21, 2007D. Brothwell, CPSLO11 Required Reserve FIRMS Object Codes for CSU fund 485 304018 – Reserve for Encumbrance 304016 – Campus/Dept Commitments 304015 – Designation and Contingency Reserve 304099 – Reserve Offset

12. May 21, 2007D. Brothwell, CPSLO12 Cal Poly

13. May 21, 2007D. Brothwell, CPSLO13 Sample Reserve Account Definitions (Cal Poly Perspective) 304018 – Reserve for Encumbrance –Amount equals the total encumbrances in the SAM 6 for the CSU Operating Fund (CSU Fund 485) 304800 – Reserve for Division Commitments –Amount is equal to the budget balance available for roll forward to campus divisions (304016 AAT Key) 304801 – Reserve for Campus Obligations –Amount is equal to the budget balance available for roll forward to campus contingency (304016 AAT key) 304802 – Unallocated Campus Reserves –Represents amounts that will not be budgeted in the subsequent year and are truly unallocated (304015 AAT key)

14. May 21, 2007D. Brothwell, CPSLO14 Sample Reserve Accounts AAT Mapping (Cal Poly Perspective) Amounts in 304017, 304800 and 304801 will be budgeted in the subsequent year, $7,739,846.

15. May 21, 2007D. Brothwell, CPSLO15 Sample Year End Report – Cal Poly Perspective Net income will close to fund balance in the amount of $8,739,846 Encumbrances plus balance available equal the amount to be reserved (Fund Balance)

16. May 21, 2007D. Brothwell, CPSLO16 Sample Trial Balance for CSU Operating Fund as of 7-1-2007 Sum of the 304XXX FIRMS Object Codes must net to zero

17. May 21, 2007D. Brothwell, CPSLO17 Sample New Year Budget The sum of 304018, 304800 and 304801 is $7,739,846.

18. May 21, 2007D. Brothwell, CPSLO18 Sacramento State

19. May 21, 2007D. Brothwell, CPSLO19 Establishing Reserves in Actuals Ledger 485 – CSU Operating Fund (continued) 304018 - Encumbrance Balance at June 30 th –Ledger KK_DTL_ENC – Query from Ledger_KK Can Obtain JE Detail by PS Fund Value –Needed if you are using multiple CSU 485 Funds SAM 6 – Encumbrances Column SAM 7 – State Accruals Column Balances

20. May 21, 2007D. Brothwell, CPSLO20 Establishing Reserves in Actuals Ledger 485 – CSU Operating Fund (continued) 304016 - Determine amounts Designated for Program, Project or Organizational Unit –BBA for these areas per Campus Policy Departmental Level Division/Program Center Level Sweep to Central Pool –Sac State Perspective Program Centers (like Colleges, HR, Student Affairs, etc.) –Budget Balance Available Adjusted for »All University Expenses (AKA Designated-Line Items) »Work Study Excess

21. May 21, 2007D. Brothwell, CPSLO21 Establishing Reserves in Actuals Ledger 485 – CSU Operating Fund (continued) 304015 - Remaining amount will be designated for Operations and Contingencies –Sac State Perspective Fund Balance less 304018/304016 Reserves Amount not rolled into next year’s budget 304099 – Fund Balance Offset –Debit amount to = 304018 + 304016 + 304015 –304099 Debit Amount = 305002 Credit Amount

22. May 21, 2007D. Brothwell, CPSLO22 Establishing Reserves in 485 (cont.)

23. May 21, 2007D. Brothwell, CPSLO23 Sacramento State’s Perspective Reserve amounts are determined at Year End in Fund 485 (CSU Operating Fund) –Encumbrance Reserve (Object Code 304018) SAM 6 (Encumbrance column total) KK_DTL_ENC table –Query Amounts by Chart Fields it against SAM 6 Total –Program/Project/Organizational Unit (Object Code 304016) Calculated Budget Balance Available to Divisions University-wide Use Fund –Operations & Contingencies Reserve (Object Code 304015) Amount not budgeted for use in the next fiscal year

24. May 21, 2007D. Brothwell, CPSLO24 Sacramento State’s Perspective

25. May 21, 2007D. Brothwell, CPSLO25 Sacramento State’s Perspective To Zero Out Budgets or Not to Zero Out Budgets…That is the Question –Our campus chose Not to Zero Out Budget Amounts Revenue budget is less than expense budget –Not budgeting PY roll forward reserve on revenue side Under the SAM6 Budget Column: –Net Budget = Prior year budget roll forward reserves or –Net Budget = 304018 + 304016

26. May 21, 2007D. Brothwell, CPSLO26 Sacramento State’s Perspective Revenue Budget Setup in Fund 485 –Building Your 2007/08 Budget Fee Revenue Projections $67.5 M Other Revenue $1.5 M Total: $69.0 M

27. May 21, 2007D. Brothwell, CPSLO27 Sacramento State’s Perspective Revenue Budget Setup – Fund 485

28. May 21, 2007D. Brothwell, CPSLO28 Sacramento State’s Perspective Expense Budget Setup in Fund 485 –Using a Global DeptID Distribute 2007/08 Budget - $228 M: –State Appropriation = (-$160 M using 690003) –Fee Revenue = $66 M –Other Revenue = $1.5 M Distribute your Reserve Budgets

29. May 21, 2007D. Brothwell, CPSLO29 Sacramento State’s Perspective Expense Budget Setup – Cont’d –Create CMS Expense Accounts to Separate your Reserve Amounts (e.g. $2.4 M) 660884 Encumbrance (304018) 660885 Division/Organizational Unit (304016) 660886 University-wide Use Fund (304016) Map Accounts to 660003

30. May 21, 2007D. Brothwell, CPSLO30 Sacramento State’s Perspective Spreading the Reserves: –660884 Encumbrance $400K Allocation Process in CMS (Ledg_KK_Enc) Query and upload into CMS –660885 Division/Organizational Unit $1.5M Use Unique Scenario Chart Field to spread budget to Divisions –660886 University-wide Use Fund $500K Total: $2.4M

31. May 21, 2007D. Brothwell, CPSLO31 Sacramento State’s Perspective Expense Budget Setup – Fund 485

32. May 21, 2007D. Brothwell, CPSLO32 Sacramento State’s Perspective Total Budget Setup – Fund 485

33. May 21, 2007D. Brothwell, CPSLO33 Sacramento State’s Perspective Differences Between Zeroing Out and Not Zeroing Out Budgets on SAM6 Report –Zero Out Budget Net Budget Column = 0 –Don’t Zero Out Budget Net Budget Column = Prior Year Roll Forward Reserve Budget –Sum of 304018 + 304016 Total Expense Budget Balance Available = Net Budget Balance Available

34. May 21, 2007D. Brothwell, CPSLO34 Sacramento State’s Perspective Sample 2007/08 Year End Snapshot:

35. May 21, 2007D. Brothwell, CPSLO35 Sacramento State’s Perspective Sample comparison spreadsheet –Zero Out vs Don’t Zero Out Reserve Budgets See EXCEL attachment

36. May 21, 2007D. Brothwell, CPSLO36 CSU Monterey Bay

37. May 21, 200737 CSUMB Perspective Year End & Year Beginning Most decision points for budget operations are the same or similar to SLO and Sac State –In 2006-07, revenue & expense budgets net to zero –At year-end, revenue budget adjusted to equal actuals –Expenditure BBA plus encumbrances = fund balance (after obligations)

38. May 21, 200738 CSUMB Nuances Related to Sweeping Balances Revenue Required in Fund 485 –“Remap” trust projects to Fund 485 New fund code in old FNAT mapping Change FNAT key to Fund 485 for historical fund code Journal entry from historical fund code to new fund code, thereby satisfying beginning year fund balance edits Historical fund code journal entry has transfers in and no beginning fund balance –Impact to Fund 485 – Multiple Fund Codes

39. May 21, 200739 CSUMB: RESERVE ENTRIES Definitions Similar to SLO and Sac State –304018 – Reserve for Encumbrances –304820 – Reserve for Campus/Dept Obligations –304840 – Reserve for Campus Contingency –304099 – Fund Balance Offset –Net to Zero

40. May 21, 200740 CSUMB: RESERVE ENTRIES All Entries Now 3-Dimensional Analysis Due to Multiple Fund Codes and Entered at Fund Code Level –Reserve for Encumbrances SAM 6 (Encumbrance column total) – Represents Total of All 485 Campus Fund Codes KK_DTL_ENC table – 485 Campus Fund Code Specific –Query Amounts by Chart Fields Total against SAM 6 Total –Reserve for Campus Obligations Queries set up in advance for trust project fund codes for revenue and expense actuals as well as main operating fund –Reserve for Campus Operations & Contingency

41. May 21, 200741 CSUMB: 2007-08 BUDGET POSTING MAIN OPERATING FUND Current Year Revenue and Expense Budget Will NOT Net to Zero Budget Equal to Encumbrance Reserve Posted with Unique Scenario –Exploring Distribution in Arrears to Payment Budget Equal to Reserve for Campus Obligations Posted and Distributed with Unique Scenario

42. May 21, 200742 CSUMB: 2007-08 BUDGET POSTING MAIN OPERATING FUND End up looking the same as non-sweep campuses HOW we get there is different…..and HOW we administer reserves is different