Budget Training

Budget

Sources• Student tuition and fees

• Reimbursement from the Federal gov’t and sponsor agencies

• Self-generated revenue in auxiliary units

• Cash transfers IN

Uses• Salaries and benefits

• Operating expenses

• Travel

• Utilities

• Cost sharing

An estimate, often itemized, of expected income and expense for a given period of time.

Our budgets are developed in the context of the CU system, campus priorities, and financial pressures and opportunities

Planning:Develop goals &

objectives

Development:Estimate cost of attaining goals & project revenues

Implementation:Record budget in Financial System General Ledger

Monitoring:Compare budget to

actuals & investigate variances

Control:Take corrective action

Budget Cycle

CONTROL

PHASE

PLANNING

PHASE

Fund Review1. Budgets are required in:

Fund 1x: General FundFund 20 & 28: Auxiliary FundsFund 3x: Restricted & Sponsored ProjectsFund 71: Capital Construction Plant Fund

2. Budget may be recorded in:Fund 34: Restricted Fund, GiftsFund 26 & 29: Auxiliary FundsFund 72: Renewal & Replacement Plant Fund funded by Fund 1xFund 78: Renewal & Replacement Plant Fund funded by Fund 2x

3. Individuals at the department level can adjust budgets in:Fund 1x: General FundFund 2x: Auxiliary FundsFund 72: R&R Plant Fund funded by Fund 1xFund 78: R&R Plant Fund funded by Fund 2x

General Fund (Fund 10)

• State appropriations, tuition, course fees• Revenue budget centrally in a limited number of FOPPS at campus

level• Expense budgets are decentralized to the FOPPS at the department

level• Budget appears on SUMMARY Statement• Budget = Spending Authority• Bottom Line Available to spend is found on the Summary Statement

Auxiliary Fund (Fund 20, 26, 28, 29)

• Self-contained business units• Generate their own revenue• Both revenue and expense are budgeted by the department at the

FOPPS level• Budget appears on the SUMMARY Statement• Budget = Plan• Bottom Line Available to spend is found on the Balance Sheet

Plant Fund-Renewal & Replacement (Fund 72, 78)

• Funded by Transfers IN from the General or Auxiliary Fund FOPPS• Transfers IN:

From a General Fund FOPP to Fund 72From an Auxiliary Fund FOPP to Fund 78

• Budget only in the fiscal year during which a capital purchase will be made• Budget appears on the SUMMARY Statement• Budget = Plan• Bottom Line Available to spend is found on the Balance Sheet

Fundamental Questions

1. How is the budget developed?2. How does the budget get into my FOPPS?3. Where do I find the bottom line available to spend?

General Fund Budget Basics

1. How is the budget developed?• The budget is developed from scratch at the outset of a new program or

activity• In subsequent years, continuing budget in June becomes base budget in July

2. How does the budget get into my FOPPS?• Office of Planning, Budget & Analysis allocates budget; continuing, temporary,

and incremental• Review DETAIL Statement for July and review Budget Journal Entries

3. Where do I find the bottom line available to spend?• SUMMARY Statement

Auxiliary Fund Budget Basics1. How is the budget developed?

• Units do with the Planning Guidelines & Parameters, published on the PBA website

• Continuing or Temporary with optional temporary budget fiscal year rollforward

2. How does the budget get into my FOPPS?• Departments prepare Excel spreadsheet for each FOPPS for upload by PBA• Compare your spreadsheets to Budget Journal Entries on the DETAIL Statement

3. Where do I find the bottom line available to spend?• BALANCE SHEET Statement (must subtract encumbrances)

R&R Fund Budget Basics1. How is the budget developed?

• Budgets not required in 72 and 78; develop budgets only during years in which it anticipates making a purchase from its R&R FOPPS• Use Voluntary Cash Transfer IN for your “revenue” budget (995000)• Use Fixed Assets for your expense budget (810000)• Fixed assets are >$5,000 per unit and have a life expectancy >1 year

2. How does the budget get into my FOPPS?• Departments prepare Excel spreadsheet for each FOPPS for upload by PBA• Compare your spreadsheets to Budget Journal Entries on the DETAIL Statement

3. Where do I find the bottom line available to spend?• BALANCE SHEET Statement (must subtract encumbrances)

You should ALWAYS have a spending plan for the balance in your R&R FOPPS

Financial Monitoring & Reconciling

1. What is it?• Monthly comparison of source documents to transactions recorded on the

DETAIL Statement• Akin to reconciling your monthly checkbook

2. Why is it important?• Foundation of internal control• Insures compliance to federal and state regulations• Protect the resources of the university by being good stewards

Financial Monitoring & Reconciling

3. What do I look for?• Transactions are of the correct amount• Transactions are recorded in the correct account• Transactions belong in the FOPPS• All the transactions that should be recorded in the FOPPS have been recorded in

the FOPPS

4. What should I do if I find an error?• Research and correct it• M-Fin reports show Journal approvers• Contact the PSC Finance and Procurement Help Desk at 303-837-2161 or

FinProHelp@cu.edu

Fund

General: 1x

Auxiliary: 2x

R&R Plant Fund: 72 (GF)78 (AF)

How does the budget get into

the FOPPS?

How do I find the bottom-line available to

spend?

What does the budget mean?

Review

Budget Journal Entries

• DO• Balance Budget Journal Entries in the General Fund• Know the signs• Use WHOLE dollars

• DON’T• Mix FUNDS on a Budget Journal Entry• Mix CAMPUSES on a Budget Journal Entry

Budget Type

Increase:If you want to INCREASE this type of budget

-Credit-500

Revenue

Decrease:If you want to DECREASE this type of budget

Expense Transfer IN Transfer OUTAction

-Credit-500

-Credit-500

-Credit-500

Debit500

Debit500

Debit500

Debit500

Choosing the Correct Ledger & Account1. Choose appropriate Continuing or Temporary Ledger2. General BUDGET Account• Budget POOL• Use BUDGET transactions on BJEs only

3. General Account• Classify ACTUAL transactions• Required for departments to use General Account at a MINIMUM• May use User Option Account for greater level of detail

This presentation was brought to you by

303.492.8631 ucb.budget@colorado.edu