Budget Revision Training Background Presented by Planning Analysis

Budget Revision Training - Background Presented by: Planning & Analysis 1

Planning & Analysis Website: www. utrgv. edu/en-us/About/Administration/Financeand-Administration/Planning-and-Analysis 2

Planning & Analysis Contacts ▪ Juan C. Gonzalez, Associate VP juan. gonzalez@utrgv. edu 956 -665 -2121 ▪ Eduvina Rodriguez, Sr Financial Analyst eduvina. rodriguez@utrgv. edu 956 -665 -7420 ▪ Richard Wilson, Director richard. wilson@utrgv. edu 956 -665 -8702 ▪ Magda Rangel, Financial Analyst magda. rangel@utrgv. edu 956 -665 -2924 ▪ Frances Rivera, Associate Director frances. rivera@utrgv. edu 956 -665 -2195 ▪ Jacob Gracia, Accountant I jacob. gracia@utrgv. edu 956 -665 -2962 ▪ Mary Aten, Sr Financial Analyst mary. aten@utrgv. edu 956 -882 -6592 3

Topics to be covered Background Information • GL Accounting String • Funds Checking • GL Funds Inquiry • Fiscal vs. Rollover Accounts • Budget Revisions Needed • Budget Revisions Not Allowed • Drill Down Procedure* 4

GL Accounting String 11. G 0000. 73160. 110000042. 53001. 000060 Example: Planning & Analysis operating expense line 5

Fund First Two Digits 11. G 0000. 73160. 110000042. 53001. 000060 Ranges: 11 – Educational & General (E&G) 21 – Designated (DES) 31 – Auxiliary (AUX) 41 – Restricted (RES) 51 – Loans 61 – Endowment 71 – Plant 81 – Agency 6

Funding Source Five Characters – A letter and 4 numbers 11. G 0000. 73160. 110000042. 53001. 000060 Examples: G 0000 – E&G Unspecified (G 1 xxx is “Fund 1”; G 2 xxx is “Fund 2”) *(For E&G always use G 0000 for budget revisions regardless of actual funding Source) D 1000 – Designated D 2000 – Service Departments D 4000 – Indirect Cost Recovery A 1000 – AES Student Services P 0100 – Investment in Plant R 1000 – Federal Grant R 5000 – Private Grant Z 2000 – Agency Scholarship (This list is NOT all inclusive) 7

Organization Five digits 11. G 0000. 73160. 110000042. 53001. 000060 Ranges: 72 xxx – President 73 xxx – Finance & Administration 74 xxx - Research 75 xxx & 76 xxx – Academic Affairs/Colleges/School of Medicine 77 xxx – Operations & Chief of Staff 78 xxx – Institutional Advancement 79 xxx – Govt & Community Relations 8

Project Value Nine digits 11. G 0000. 73160. 110000042. 53001. 000060 First digit of project will correspond to the fund it belongs to. 9

Object Code Five digits 11. G 0000. 73160. 110000042. 53001. 000060 Examples: 40001 – Revenue Budget 52001 – Employee Benefits 44600 – Transfer In Intrafund 53001 – Operating Budget 51001 – Single Incumbent Salaries 53425 – Transfer Out Intrafund 51002 – Faculty Salaries 54001 – Books 51003 – Longevity 55001 – Scholarships 51010 – Pooled Salaries 57001 – Travel 51101 – Wages 58001 – Capital Outlay 10

NACUBO Function Six digit code used to classify expenses by function 11. G 0000. 73160. 110000042. 53001. 000060 NACUBO codes to be used by UTRGV 000010 – Instruction 000020 – Research 000030 – Public Service 000040 – Academic Support 000050 – Student Services 000060 – Institutional Support 000070 – Operation & Maintenance of Plant 000080 – Scholarship 000090 – Auxiliary 000100 – Depreciation & Amortization 000110 – Agency 000120 – Hospitals & Clinics 000000 – Unassigned (Used only for Revenue & Transfers) (What it stands for: National Association of College and University Business Officers) 11

GL Funds Check To pass funds check, budget changes between non -labor expense object codes are not required. Budgeted Object Codes ▼ 40001 Revenue 44600 Transfer In (Intrafund) 446 xx Transfer In (Interfund) 51001 Single Incumbent Salaries 51002 Faculty Salaries 51003 Longevity Pay 51010 Pooled Salaries 51101 Wages 52001 Benefits 53001 Operating Expense 53425 Transfer Out (Intrafund) 534 xx Transfer Out (Interfund) 54001 Books 55001 Scholarship 57001 Travel 58001 Capital Outlay 59001 Merchandise for Resale ▼ Summary Objects ▼ ▼ ▼ 40000 50000 ▼ 49999 The Project should not go into a deficit (negative amount) at the overall 99999 level 51000 52999 50001 51100 52000 99999 90000 53999 54999 55999 57999 58999 59999 60000 Oracle checks funds at the non-labor expense subtotal 60000 object code. 12

GL Funds Inquiry Screen Budget Selection Criteria: Budget should be REVISED. To choose period type in first 3 letters and hit tab for list. – Encumbrance – Actual = Funds Available Hint: Start with summary level and then drill down to detail. Account Balance is the 99999 Total. A negative amount is a deficit. 13

Two Types of Accounts Fiscal • Funds lapse at yearend • Ending balances DO NOT carryforward to the following year Rollover • Funds do not lapse • Ending balances DO carryforward to the following year 14

Fiscal Accounts • • • E&G (11) & Auxiliary (31) Funded by Expense Budget Unencumbered balance lapses at fiscal yearend Simply move budget to transfer funds between accounts within same fund Budget revision transfer only requires a minimum of two lines Budget – Encumbrance – Actual = Funds Available Account Budget Encumbrance Actual Funds Available Operating (53999) 800. 00 50. 00 150. 00 600. 00 Travel (57999) 200. 00 100. 00 Non-Labor Total (60000) 1, 000. 00 50. 00 250. 00 700. 00 Account Total (99999) 1, 000. 00 50. 00 250. 00 700. 00 15

Rollover Accounts • • • Designated (21), Restricted (41), Plant (71), and Agency (81) Funded by revenues (self-funded), transfers-in, and/or carryover balances Balance before encumbrances carries forward to next year (non-lapsing) Account is fully funded when revenue summary (49999) is non-negative Transfer between accounts by actual funds transfer, not by simply moving budget Budget revision transfer requires a minimum of four lines Budget – Encumbrance – Actual = Funds Available Account Revenue (49999) Budget Encumbrance Actual Funds Available (1, 000. 00) 0. 00 (1, 000. 00) Operating (53999) 800. 00 50. 00 150. 00 600. 00 Travel (57999) 200. 00 100. 00 1, 000. 00 50. 00 250. 00 700. 00 50. 00 250. 00 (300. 00) Non-Labor Total (60000) Account Total (99999) 16

Rollover Accounts (continued) Budget Encumbrance Actual Funds Available (1, 000. 00) 0. 00 (800. 00) (200. 00) Operating (53999) 800. 00 50. 00 150. 00 600. 00 Travel (57999) 200. 00 100. 00 1, 000. 00 50. 00 250. 00 700. 00 50. 00 (550. 00) 500. 00 Account Revenue (49999) Non-Labor Total (60000) Account Total (99999) Account ◄ $200 revenue shortage (after $800 received) Budget Encumbrance Actual Funds Available (1, 000. 00) 0. 00 (1, 200. 00) 200. 00 $200 ► revenue surplus Revenue (49999) Operating (53999) 800. 00 50. 00 150. 00 600. 00 (after $1, 200 received) Travel (57999) 200. 00 100. 00 1, 000. 00 50. 00 250. 00 700. 00 50. 00 (950. 00) 900. 00 Non-Labor Total (60000) Account Total (99999) Budget column total always equals cumulative carryover from prior years. 17

When is a budget revision needed? • To set up the initial budget for a project • To align expenditures with actual or anticipated revenues • To fully fund labor costs – Position Changes – Benefits and Longevity (non-E&G accounts) • To address or avoid funds checking failures in non-labor expenses • To transfer funds between two or more accounts 18

Which types of transfers are not allowed? • You should NOT do a transfer across funds (there are very few exceptions but please contact budget office for assistance) E&G Fund 11 Designated Fund 21 19

Transfers not allowed (continued) • DO NOT transfer funds in or out of the following subgroups: Prefix SUBGROUP 120 Lab Fees 140 Transfers from other agencies 130 Special Lines/state transfers 24 Indirect Cost Recoveries • DO NOT transfer funds to be used for something that would violate the purpose of the funds. Examples: ▪ Endowment income restricted to payment of scholarships may not pay travel. ▪ Fee revenue may not be used for purposes outside of the fee justification. 20

Drill Down Procedure #1 Go into #2 click on square account at the Summary level #3 Click on Period Balances button 21

Drill Down Procedure (continued) #4 Place cursor on month you want to drill down into. #5 Click on Tools to get drop down menu #6 You can choose between seeing the Budget lines, Actual lines or Encumbrance lines. 22

Drill Down Procedure (continued) #9 The journal is displayed #7 The list of journals which make up the amount will be listed. #8 Click on Journal button 23

Alternate Drill Down Procedure 1. Go into account at the summary level. 2. Place cursor on line you wish to drill down into. 3. Go to Tools on menu bar and select Detail Accounts from drop down menu. 4. Place cursor on the detail account line you wish to drill down into. 5. Go to Tools and select Period Balances 6. Place cursor on month you want to drill down into. 7. Go to Tools and select either Budget Lines, Actual Lines, or Encumbrance Lines based on type of inquiry. 24

Question Time UTRGV 25