STEWARDSHIP OF UNIVERSITY RESOURCES Trina Mahoney Budget Director

STEWARDSHIP OF UNIVERSITY RESOURCES Trina Mahoney Budget Director

STEWARDSHIP OF UNIVERSITY RESOURCES Topics: • • Fiscal Stewardship Funding Sources What Kind of Funding Is It? Allowed Uses by Organization Type Budget Information and Where to Find It Never Stop Improving & Spread the Word University Budget and Finance Committee

FISCAL STEWARDSHIP All assets, financial and otherwise, are owned by the University/its Board of Regents. As employees of the University it is our duty to act as responsible stewards of these assets. Division of Finance Responsibilities: Provide strategic direction for linking budget and financial processes to the University Strategic Plan and serve as the principal financial offices of the University. Responsible for: o Providing leadership in budget and financial accountability, policy, systems, and reporting o In cooperation with Internal Audit, providing internal control development, implementation, and monitoring o Evaluation of user needs and services.

FISCAL STEWARDSHIP (CONT. ) College/Unit Responsibilities: o Ensuring that the unit implements, maintains, and follows proper administrative accounting and financial procedures, as well as all relevant governmental and regulatory requirements. o Providing access to training for individuals who will be on the “front lines” performing transactions and providing guidance for faculty and other staff members. o Ensuring that budget line items are reviewed and reconciled on a monthly basis and variances are identified and supported with good documentation to include salary, operating, and capital expenditures. o Understanding internal control concepts, correcting management control weaknesses and providing access to internal control training to staff and faculty.

FISCAL STEWARDSHIP (CONT. ) What You Can Do: o Know your fiscal contacts. Who within your department/college/division can provide you with information? o Know your budgets. Work with your fiscal contact to learn what budgets you are responsible for. This should include all applicable fund/budget types. o Know your college policies. Each college had unique policies that the Budget Office or other central fiscal offices may not be aware of. When you meet with your fiscal contact ask about these policies and how they may impact your budgets. o Be actively involved from the start. Meet with your fiscal contact now and stay engaged during the year to avoid year-end issues. o Monthly reports on budget status keep you informed and provide opportunity to identify incorrect charges in a timely manner.

TERMINOLOGY When talking about funding there a few terms that get used interchangeably – while this will likely always be the case here a few official definitions so you can wow your colleagues with your Banner savvy: “Organization” (abbreviated as ORGN in Banner): this is the code within the organizational hierarchy used to capture financial activity for an area. Examples are AAX 001, DAN 200, etc. People often call their organization their budget or account. “Budget”: this is your spending plan ($50, 000 for salaries, etc. ) “Account” (abbreviated as ACCT in Banner): this is the specific expense or revenue code used to capture a certain type of activity. Examples are E 4105 – Salaries, R 3951 E – Gifts & Donations, etc.

FUNDING SOURCES FOR THE UI o Appropriated Funds o State (State General Fund, Tuition and Fees, Land Grant o Federal (i. e. Ag Research and Extension) Endowments) o The UI receives 6 separate appropriations out of the State General Fund: o General Education (Main UI Appropriation – “X” organizations) o o o WWAMI (Medical Education) WI (Veterinary Medicine Education) Idaho Geological Survey Forest Utilization Research Ag Research and Extension

FUNDING SOURCES FOR THE UI (CONT. ) o Non-Appropriated Funds o Centrally Allocated (G&A, Central F&A, Investment Income – “U” organizations) o o o o Local Service (Publications, Field Trials, etc. – “Y” organizations) F&A Return (“ 6” organizations) Student Fee Revenue (“ 7” organizations) Special Course and Lab Fees (“ 8” organizations) Gifts (CIT Earnings, Annual Giving – “N” organizations) Grants and Contracts (“K” organizations) Auxiliaries (Housing and Dining, Vandal. Store, Athletics, etc. ) Service Centers (Chem Stores) In order to manage all resources appropriately you should have budgets (i. e. revenue and spending plans) for all funding sources within your department including the above nonappropriated funds. You should also know what each funding source can be used for/what restrictions may apply.

FY 17 TOTAL UNIVERSITY REVENUE BUDGET: $397 M* Sales and Services 12% Private Grants and Contracts 1% Other 2% State General Fund 33% Private Gifts 5% Federal and State Grants and Contracts 21% *Excludes Federal Student Financial Aid Land Grant Endowments 2% Tuition & Fees 24%

FY 17 TOTAL UNIVERSITY EXPENSE BUDGET Scholarships / Fellowships 4% Auxiliary Enterprises 7% Athletics 4% Public Service 8% Physical Plant 8% Academic Support 4% Student Services & Libraries 6% Institutional Support 9% Research 22% *Excludes Federal Student Instruction 28%

FY 17 GENERAL EDUCATION REVENUE BUDGET: $174. 2 M Source State General Fund - Base State General Fund - One Time Total $ 86, 863, 800 2, 793, 500 Land Grant Endowment 10, 099, 200 Tuition& Fees / Misc. Revenue 74, 443, 500 Total General Education Tuition& Fees / Misc. Revenue 43% State General Fund - Base 50% $ 174, 200, 000 Land Grant Endowment 6% State General Fund - One Time 1%

FY 17 GENERAL EDUCATION EXPENSE BUDGET: $174. 2 M Physical Plant 14% Student Services 10% Program Institutional Support Instruction Academic Support One-Time Research Library Auxiliary Enterprises (Athletics) Public Service Student Services Physical Plant Total General Education Total $ 24, 105, 198 71, 285, 663 12, 456, 552 2, 793, 500 6, 260, 298 10, 163, 922 4, 162, 350 642 18, 292, 953 24, 678, 922 $ 174, 200, 000 Institutional Support 14% Public Service 0% Auxiliary Enterprises (Athletics) 2% Library 6% Research 4% One-Time 2% Instruction 41% Academic Support 7%

FY 17 GENERAL EDUCATION EXPENSE BUDGET: $174. 2 M Cost Category: Total Salaries & Benefits $ 127, 797, 984 73. 4% Operating 37, 041, 479 21. 3% One-Time (27 th Payroll, Capital Outlay) 2, 793, 500 1. 6% Capital Outlay 6, 567, 037 3. 8% $ 174, 200, 000 100. 0% One-Time (27 th Payroll, Capital Outlay) 1. 60% Capital Outlay 3. 77% Operating 21. 26% Salaries & Benefits 73. 36%

FY 17 GENERAL EDUCATION: FTE Physical Plant 14% Program Institutional Support Instruction Academic Support Research Library Auxiliary Enterprises (Athletics) Student Services Physical Plant Total General Education FTE 176. 75 595. 47 98. 48 51. 30 55. 74 40. 86 125. 77 186. 43 1, 330. 80 Institutional Support 13% Student Services 9% Auxiliary Enterprises (Athletics) 3% Library 4% Research 4% Academic Support 7% Instruction 45%

WHAT KIND OF BUDGET (ORGN!) IS IT? The third character in the organization number (aka budget number) tells you the funding source behind it. Below is a list of the most common, university-wide 3 rd characters: o X: General Education (backed by state appropriations, tuition, land grant endowment funding). Ex: AAX 001 o U: Centrally Allocated (backed by the central portion of F&A return, investment income and G&A fees). Ex: BDU 003 o N: Gifts (backed by donations/endowments received through the UI Foundation). Ex: DAN 200 o K or 2: Grants and Contracts (backed by external funding awarded via competitive/proposal process). Ex: EDK 187

WHAT KIND OF BUDGET (ORGN!) IS IT? (CONT. ) o Y: Local Service (backed by revenue generating activities you are engaged in). Ex: FAY 001 o 6: F&A Return (backed by the college/dept portion of F&A return). Ex: GD 6300 o 7: Student Fees (backed by student fee revenue such as web fees, certain activity fees, etc. ). Ex: HA 7295 o 8: Lab & Course Fees (backed by lab & course fees approved through the Academic Affairs process). Ex: JA 8700

WHAT KIND OF FUNDING IS IT? Permanent versus One-time, Revenue Generating – what does it all mean and what do I need to know? Base/Permanent: These terms both refer to the recurring funding you receive every fiscal year. For most areas these come in the form of General Education (“X”) or Centrally Allocated (“U”) funding and unless you are notified of a change you can count on these funds coming to you every year. One-time: This is funding that has been allocated to you to spend once or that you have saved up from prior years and once you spend it, it’s gone. General rule: You should avoid making any kind of long-term or permanent commitment using onetime funds. One-time funds should be used to meet short-term or one-time needs such as temporary hires, equipment purchases etc.

WHAT KIND OF FUNDING IS IT? Permanent versus One-time, Revenue Generating– what does it all mean and (CONT. ) what do I need to know? Revenue Generating Budgets: Many of you have these – the most common ones are Y, 6, 7 and 8 organizations. Unlike your General Education (“X”) and Centrally Allocated (“U”) organizations where Central monitors the revenue and you are given an upfront allocation, these organizations have to generate their own funding and you cannot spend more than you have generated. Every spring each college/unit is responsible for submitting a budget (estimate) for the next fiscal year for each of their revenue generating organizations; while these original budgets are important for understanding the total revenue and expense planned for the university they are only an estimate. You are responsible for knowing how much revenue is actually generated and ensuring that your expenses do not exceed your available resources (prior year carry forward of unspent revenue plus current year revenue). General Rule: You need to be monitoring both the revenue and the expenses for these types of budgets on a regular basis.

ALLOWED USES BY ORGANIZATION TYPE o While most normal business-related expenses can be expensed on any funding type there are some limitations you should be aware of. o Accounts Payable is in the process of updating the policies regarding limitations by budget type included in sections 70. 20 and 70. 22 of the APM. Please see the A/P website for additional information (https: //www. uidaho. edu/finance/controller/accounts-payable/promotional-expenses) o 70. 20 Summary of Promotional Expense Allowability: this section provides a helpful matrix of certain expenses and what budget type they can be incurred on. Note that for this matrix “Local Service” now would include Y, U, 6, and 7 orgns. o 70. 22 Meals and Refreshments for Official Meetings: this section outlines the requirements to be met for a meeting to qualify for meal or refreshment provisions. o In addition to university-wide policies you should also be aware of the limitations on specific departmental funds (i. e. know what is allowable on your grants, be aware of any donor restrictions on gift budgets, etc. ). o When in doubt don’t hesitate to ask. A few minutes researching appropriate expenses today can save you/your fiscal contact a great deal of time later.

ALLOWED USES BY ORGANIZATION TYPE APM 70. 20 Matrix: Expenditure Types State Appropriated Funds Sponsored Funds (“K” (“X” Budgets) Local Service Funds (“Y” Budgets) Gift/Foundation Funds (“N” Budgets) Authorized awards and/or recognition programs for YES employees YES** YES* Social events such as birthdays, holiday parties, office parties, etc NO NO Meals and refreshments for business meetings and retreats to conduct YES University business, staff and student development. [Subject to APM 70. 22] NO YES* Official recruiting costs for YES faculty and staff positions YES** YES* University or departmental sponsored recognition or NO reception events NO YES* * Unless specifically prohibited by donor ** As allowed per grant or contract agreement

ALLOWED USES BY ORGANIZATION TYPE APM 70. 20 Matrix (Cont): Expenditure Types State Appropriated Funds (“X” Budgets) Sponsored Funds (“K” Budgets) Local Service Funds (“Y” Budgets) Gift/Foundation Funds (“N” Budgets) Alcohol, if authorized for University events [Subject to APM 70. 21] NO NO YES* Memorial gifts and/or recognition approved by the NO president NO YES* Gifts of nominal (less than $50) value to donors, members of governing boards, volunteers, and University supporters * Unless specifically prohibited by donor NO NO YES* Flowers for employees, spouses, members of University governing NO boards, & others significant to University NO YES* ** As allowed per grant or contract agreement

ALLOWED USES BY ORGANIZATION TYPE APM 70. 20 Matrix (Cont): Expenditure Types State Appropriated Funds (“X” Budgets) Sponsored Funds (“K” Budgets) Local Service Funds (“Y” Budgets) Gift/Foundation Funds (“N” Budgets) Entertainment and related expenses for official functions [Subject to APM 70. 23] NO NO YES* Professional dues, fees and memberships in professional organizations [Executive Order 2003 -06] NO (See APM 45. 06 E, #28) NO NO Personal memberships in social, non-professional organizations (e. g. , athletic clubs) NO NO Child care expenses NO NO Political contributions and fund raisers NO NO * Unless specifically prohibited by donor ** As allowed per grant or contract agreement

ALLOWED USES – REFRESHMENTS/MEALS See A/P website for most recent information https: //www. uidaho. edu/finance/controller/accountspayable/promotional-expenses) To have refreshments at a departmental sponsored meeting/training session: • Published agenda and employee attendance is mandatory • Intended duration of at least 3 hours as shown on agenda • Minimum of 5 employees attending • Total cost of refreshments per attendee PER DAY cannot exceed the partial day Per Diem allowance of breakfast as established by the Board (see Per Diem Schedule) To have meals at a departmental sponsored meeting/training session: • Published agenda and employee attendance is mandatory for an identified business purpose • Meeting purpose includes presentations or interpersonal exchange during the meal period • Intended duration of at least 6 hours as shown on agenda • Minimum of 5 employees attending • Total cost per attendee cannot exceed the partial day Per Diem allowance for the period of the meal as established by the Board (see Per Diem Schedule)

ALLOWED USES – REFRESHMENTS/MEALS Additional information: • Remember: regularly scheduled staff meetings do not qualify for meals or refreshments unless they occur no more than quarterly and attendees are brought together from various locations throughout the state. • Why are we so strict about meals? Where did the university get these rules? The university is following Section 12 of the State Board of Examiners Policy No. 442 -50 effective July 1, 1996, Office of the State Controller. This can be found at the below link (see section 10): http: //www. sco. idaho. gov/web/sbeweb. nsf/pages/trvlpolicy. htm#12. %20 Meal %20 Expenses%20 Allowable

ALLOWED USES – SPECIAL COURSE FEES o Special Course and Lab Fees (“ 8” orgns): o Several years ago, the SBOE approved a new more detailed policy for special course fees which outlines allowable uses, appropriate accounting structure and required control and review procedures. o For the UI we had already adopted general principals and practices which align with the SBOE’s revised policy. In general we need to account for these fees in a way that allows us to show both revenue and expenses for each individual fee to ensure we are not overcharging students. In addition we need to only use fees to cover the expenses for which they were approved and each fee needs to be reviewed at least every 3 years to ensure compliance. If a department needs to request a new fee or change an existing fee in any way, including its amount, use, etc. it must be approved via the process currently found on the Academic Affairs website: http: //www. uidaho. edu/academic-affairs/special-course-and-lab-fees

BUDGET INFORMATION: WHERE TO FIND IT o Budget Books: These documents are published each fiscal year and contain your base budget(s) for the following funds: o General Education (“X” organizations) o Local Service (“Y” organizations) o F&A Return, Student Fees, Lab & Course Fees (“ 6”, “ 7”, and “ 8” organizations) o Centrally Allocated (“U” organizations) o Other Appropriations (WWAMI, WI, FUR, IGS, Ag Research) o Auxiliary Services and Service Centers o Periodic Budget Reports: Banner and Argos provide a variety of report formats for tracking financial performance during the fiscal year. Your departmental fiscal contact should be able to provide these for you. o Finance Self-Service (Vandal. Web): This web-based view of Banner data allows end users to perform basic queries.

FINANCE SELF SERVICE To access budget information on Vandal. Web: log into Vandal. Web and click on the “Employees” tab and then the “Finance Query for Non-Banner users” button

FINANCE SELF SERVICE You should now see a list of options:

FINANCE SELF SERVICE Available Queries: • Budget Queries o Budget Status by Account o Budget Status by Org Hierarchy o Budget Quick Query o Payroll Expense Detail • Encumbrance Query • View Document • Budget Availability • Dept/Midlevel Roll Down (there thanks to you!) • General Ledger/Fund Balance (there thanks to you!)

FINANCE SELF SERVICE – BUDGET and Fiscal Year will already be filled in. You AVAILABILITY Chart should leave Chart as “ 9” but you can change the Fiscal Year depending on what you want to see. The only other required field is Orgn.

FINANCE SELF SERVICE – BUDGET AVAILABILITY

FINANCE SELF SERVICE – DEPT/MIDLEVEL ROLL DOWN This tool allows you to identify the orgns that roll up to your area. You can start your query at any level of the orgn hierarchy: University Executive Level Midlevel Dept Orgn In this case let’s say I know I am part of Midlevel M 046 (Controller) but I don’t know my department number. Note I opted to query active only.

FINANCE SELF SERVICE – DEPT/MIDLEVEL ROLL DOWN I can now see all the departments that roll up to M 046 (note that in Banner all levels of the orgn hierarchy are called “orgns” even though we differentiate between the levels as outlined on the prior slide). Now I see the department I was looking for 909 – Budget Office. If I wanted to drill down further, I would click “Choose a different Department/ Midlevel Code” and put 909 in the query field to see my department’s individual orgns.

FINANCE SELF SERVICE – DEPT/MIDLEVEL ROLL DOWN Now I know that I have two individual orgns that roll up to my department and which I am responsible for managing.

FINANCE SELF SERVICE – GENERAL LEDGER/FUND BALANCE To use this form you need to know the fund number associated with your orgn. For “Y” orgns you simply move the “Y” to the front so for example orgn VWY 001 equals fund YVW 001. For other fund types please work with your fiscal contact to ensure you have the correct fund number. Please read the directions and description on this page as they contain important information regarding when to use (or more specifically when not to use) this form, how to do a query and how to interpret the results: This query provides the beginning fund balance, total expenses, revenues, transfers, encumbrances and ending (if run for a prior fiscal year) or current (if run for the current fiscal year) fund balance. If you do not know the fund number that is associated with the budget you are interested in please contact your fiscal support or the Budget Office for assistance. Hint - all Local Service (Y) fund numbers start with the 3 rd character of the budget with the rest of the budget to follow (ABY 123 budget = YAB 123 fund). Note that this query should not be used for General Education (X), Centrally Allocated (U) or Gift (N) budgets – to query the balance for these types of budgets please use the Budget Availability Query. DO NOT use this form to review F&A return (6), Student Fee (7) or Lab & Course Fee (8) balances. You or your fiscal support must run the FWRBDRV report in Banner for these types of budgets

FINANCE SELF SERVICE – GENERAL LEDGER/FUND BALANCE I left the Fiscal Period with the default of 14 which is the last fiscal period of the year – this means I will see all activity through the moment I execute the query. You can also put in 01 for July, 02 for August, etc. if you want to see the balance as of a certain month end. The highlighted note is very important information!

FINANCE SELF SERVICE – GENERAL LEDGER/FUND BALANCE This fund started out with a positive (in brackets) balance of $22, 666. 85 and has $16, 672. 34 in expenses, $471, 350. 00 in net transfers in (in brackets – if not in brackets then net transfers out or reduction in fund balance) and $173, 349. 15 in encumbrances so far this fiscal year leading to a current credit or positive balance of $303, 995. 36.

BUDGET INFORMATION – GRANTS & CONTRACTS The Office of Sponsored Programs manages the reporting specific to grants and contracts. If you are responsible for managing any grant budgets please visit their website or work with your financial support staff to determine what tools are available to you: www. uidaho. edu/research/faculty/manage-award

BUDGET INFORMATION: WHAT IF I CAN’T FIND WHAT I NEED? Most colleges or divisions within the University of Idaho have several levels of financial support: Financial Technicians or other positions at the department level who can assist you with transactional data or report development for your department. Fiscal Officers or other positions at the Dean’s Office level who can assist you with questions regarding college or division fiscal policies or with questions your departmental support staff is unable to answer. In addition, the Budget Office is always available to help you or your fiscal staff address questions, etc.

BUDGET INFORMATION: WHAT IF I CAN’T FIND WHAT I NEED (CONT. )? Trina Mahoney Budget Director 5 -4387; tmahoney@uidaho. edu Kim Salisbury Academic Budget Officer / Provost Fiscal Officer 5 -5055; kims@uidaho. edu Jill Robertson Operating Budget Officer – Position / General Education Perm Funding 5 -7122; jrobertson@uidaho. edu Cheyenne Smith-Sarkkinen Operating Budget Officer – Operating Funding 5 -6718; cheyenne@uidaho. edu Becky Latshaw Financial/Personnel Technician Senior 5 -7045; rlatshaw@uidaho. edu Jennifer Radil Senior Budget Specialist / Provost Areas 5 -5828; jradil@uidaho. edu

NEVER STOP IMPROVING o There are staff working everyday to develop and improve the tools we have available: o Thanks to input from a past Department Administrators Orientation we now have the Fund Balance and Midlevel/Department Roll Down functions in Finance Self Service. o A team of budget, accounting and system staff are working on a complete revision to the current Chart of Accounts which should result in better reporting for you and your financial staff – more to come as this project progresses! What great new ideas do you have? Let us know!

SPREAD THE WORD Please share the information you learned today – the more people who understand key elements of fiscal stewardship and how our financial structure works the more effective we can all be.

WHAT IS UBFC & HOW CAN IT IMPACT ME? The University Budget and Finance Committee (UBFC) is comprised of faculty, staff and students plus ex officio members (Provost/EVP, VP Finance, Budget Director and Director of Institutional Research and Assessment). This committee has been charged with developing and managing an annual process for requesting both new continuing and one-time funding. In addition, UBFC is responsible for reviewing these funding requests and making recommendations to senior leadership. The goal is to have a single predictable annual process through which all funding requests flow. These requests then provide the basis for both internal allocations and state funding requests. For example, a UBFC request related to Library funding and several requests related to student success formed the two FY 2019 state budget request items we will be submitting to the state on September 1, 2017. The second request cycle is in the process of wrapping up and a new cycle for requesting FY 2019 one-time and/or FY 2020 permanent funding will kick off this fall. Now is the time to start thinking about ideas your department may want to submit for consideration.

STEWARDSHIP OF UNIVERSITY RESOURCES Questions, comments, etc. ?