financial reporting training

Financial Reporting Training

Office of the Controller

Objective

1. Accounting Review

2. What is a Budget and General Budget Concepts

3. Budget Inquiries & Budget Status Report

4. Overview of some useful Queries

5. nVision Financial Reports:• Define nVision• Variance Analysis• Available Budget

6. Demo


What is Accounting?

Accounting is a systematic way to identify, measure and communicate the economic impact of events, such as activities that generate inflows and outflows.

Accounting is a self-balancing process which measures:1. Financial Activity: REVENUES and EXPENSES for a period

Income = Revenues – Expenses

AND

2. Financial Position: BALANCES on a cumulative basis at a certain date Positive balances which will provide future benefits are ASSETS Negative balances which represent future obligations are

LIABILITIES


What is Accounting?

Example of Economic Event:

FIU provides educational services to students.

1. The University has the right to collect fees from students (Revenues) but must also pay faculty to render the services (Expenses).

AND

2. The University collects the cash from the student and pays cash to the professor, resulting in a net positive cash (Asset) balance at the end of the period


Why “fund” accounting

Activities are segregated by funding source

Each fund : is Restricted in its uses by statute is Allocated a Budget that cannot be overspent

Currently, within each fund, activities are further segregated by Organizations and Departments that identify which unit/college is responsible for performing the activity and the specific nature of the activity (e.g. College of Business puts on the FIU Online Conference).


http://finance.fiu.edu/controller/Docs/FundRulesMatrix.xls

Which funds does FIU have?

E&G – Educational and General AUX – Auxiliary Enterprises C&G – Contracts and Grants Agencies FA /FinAid – Financial Aid/ Scholarships Student-Related Activities Concessions


Which Entities does FIU have ? Entities affiliated to the University:

FCN01 — FIU01 AP Construction

FIU01 — Florida International University

FIU02 — FIU Foundation: administers donations for the purpose of the advancement of FIU. Considered a Non-for-profit entity, not a governmental entity.

FIU03 — Wolfsonian Inc.

FIU04 — FIU Research Foundation

FIU05 — FIU Athletic Finance Corp

FIU06 — FIU Health Care Network

FIU07 — FD Enterprise Holdings I, LLC.

FIU08 — FD Enterprise Holdings II, LLC.

FIU09 — FD Enterprise Holdings III, LLC.

FIU10 — FD Enterprise Holdings IV, LLC.

FSR01 — Office of Sponsored Research

FSR04 — FIU Research Foundation


Revenues = Money coming in

Operating Revenues are generated from providing goods or services in the normal course of operations to customers.

Non-Operating Revenues are for incidental activities, such as investment earnings.

In fund accounting, revenues are recognized when measurable and available to spend, the earlier of: When collected in cash using cash basis (e.g. conference registration fees

collected now for an event to occur in the future)

OR When earned using accrual method (e.g. student registers for classes now

but tuition payment is not due to University until later)

NOTE: Revenues which have not been collected are classified as receivables until they are collected in cash (e.g. the University has a receivable from a student until his/her student account is paid to the University).


Expenditures = Money being spent

Costs incurred in efforts to generate revenues, classified as:Expenses if the payment provides immediate benefits (e.g. salaries, travel)Capital if the payment provides long-term benefits (e.g. tangible assets with longer lives such as equipment).

NOTE: In accounting, all expenditures for goods and services are recorded in the fiscal year that they occur using accrual method

At the operating fund level, expenditures are treated as expenses and those subject to capitalization are accounted for in another fund.

Expenses which have not been paid are classified as payable until they are paid in cash (e.g. invoices from vendors with certain number of days to pay).


Sources of Revenues and Expenses

Revenues:Student Financials (tuition, other student fees)Cashiers (cash/credit card deposits)

Expenses Payroll (salaries and benefits actual and accruals)Voucher (operating and capital expenses)Commodity Card (operating expenses)Interdepartmental charges with no approval required (phone, printing, overhead)Interdepartmental charges with approval required (facilities maintenance)

In both cases, re-classes of revenues and expenses from one department to another or from one account to another should be requested via an Inter-Departmental Transfer Form.


Income and Financial PositionRemember the results of accounting?

1.Income measures net operations earned during the period

Income = Revenues –Expenses

2.Fund Balance is the net financial position at the end of the period. It represents what resources you have left to spend in the short-term:

Cash + Receivables –Payables = Fund Balance

Beginning Fund Balance + Income+ Cash Coming In – Cash Going Out= Ending Fund Balance


Example


College creates a new program to begin 7/13/xxxx

Assets - Liabilities = Net Assets

Cash + Receivable - Payable = Fund Balance

Balance at 6/1/xxxx $ - $ - $ - $ - Start-up funding from another department $ 10,000 $ 10,000 Cash In26 Students register for classes $2000 each due 7/1 $ 52,000 $ 52,000 RevenueNew Program Manager is paid for 2 periods 6/1 - 6/14 $ (2,520) $ (2,520) ExpensePurchase of laptop for new PM $ (1,200) $ (1,200) ExpenseNew Program Manager is paid for 2 periods 6/15 - 6/28 $ (2,520) $ (2,520) ExpensePayroll accrues 2 days in June 6/29 - 6/30 $ (360) $ (360) Expense

Balance at 6/30/xxxx $ 3,760 $ 52,000 $ (360) $ 55,400 Student pays for classes $ 52,000 $ (52,000) $ - ExpenseProgram Manager is paid for period 6/29- 7/12 $ (2,520) $ (2,520) ExpenseReverse accrual for 2 days in June, liability paid $ 360 $ 360 ExpenseBuy food for students for July, payment not due until 8/5 $ (4,000) $ (4,000) ExpensePM paid for period 7/13 - 7/27 $ (2,520) $ (2,520) ExpenseFaculty paid for period 7/13 - 7/27 $ (3,880) $ (3,880) Expense

Pay back start-up funding $ (10,000) $ (10,000) Cash Out

Balance at 7/1/xxxx $ 36,840 $ - $ (4,000) $ 32,840

Example (Continued)


June July

Beginning Fund Balance $ - $ 55,400

Revenues $ 52,000

Expenses

Salaries and Benefits $ 5,400 $ 8,560

Operating Expenses $ - $ 4,000

Other Capital Outlay $ 1,200 $ -

Total Operating Expenses $ 6,600 $ 12,560

Income (Loss) $ 45,400 $ 42,840

Transfer In $ 10,000

Transfer Out $ (10,000)

$ 55,400 $ 32,840

Tuition26* $2000

$2520$2520$ 360$5400

Laptop $1200

Departmental Loan

Loan Payback

Food $4000

$ 2520

$ 2520

$ 3880

$ (360)

$ 8560

Objective







6. Demo

What is a Budget ?

Management plan for meeting probable revenues and expenses for a given period of time

Serves as a control mechanism to match anticipated and actual revenues and expenditures


Budgetary Accounts Categories used at FIU


Category Examples

Revenue• Sales of Goods or Services• Rental Income• Sponsorship Revenues

Permanent Salaries and Benefits

• Faculty, Staff, Administrative Salaries• Benefits

Other Personal Services (OPS)

• Temporary Employees• Student and Graduate Assistants• Adjunct Faculty

Other Operating Expenses• Travel Expenses• Office Supplies• Repair and Maintenance

Operating Capital Outlay (Assets ≥ $5000)

• Personal Computers• Furniture• Repair and Maintenance

Cash Transfers In & Out • Transfers to Construction• Start-up Costs for other departments

Budget Cycle for FIU


Prior Year

Current Year

Objective







6. Demo


Crystal Reports Inventory: Available Balance

Budget Status ReportLedger Group Description

CC_DEP (Department Child)

Expense budgets, expenses, encumbrances & pre-encumbrances for Departments* or Activity Numbers by detail Budget Account

CC_PRD (Department Parent)

Expense budgets, expenses, encumbrances & pre-encumbrances for Departments* or Activity Numbers by Parent Department

CC_REV Budgeted, collected and recognized revenues

CC_PG (Project Child)Expense budgets, expenses, encumbrances & pre-encumbrances for project by detail Budget Account

CC_PID

Expense budgets, expenses, encumbrances & pre-encumbrances for Departments* or Activity Numbers by detail Faculty Allocation

CC_PRP (Project Parent)Expense budgets, expenses, encumbrances & pre-encumbrances for projects by Parent Project ID

* Organizational Unit

On-Line Inquiries - Reports Inventory: Available Balance Budget Overview Detail View



On-Line Inquiries - Reports Inventory: Reconciliation Budget Overview: Drill to Activity Log


Reports Inventory: ReconciliationBudget Overview: Drill to Activity Log

On-Line Inquiries - Reports Inventory: Available Balance Budget Overview Parent View


On-Line Inquiries - Reports Inventory: Available Balance Budget Overview Detail View



Reports Inventory: ReconciliationBudget Overview: Drill to Activity Log

SQR Reports Inventory: Available Balance Budget Status Report


Objective








Useful Queries

Query Name Description

REQUISITION_WORKFLOW_ROUTING List of employees involved in approving a requisition by Requisition ID

FIU_DEPT_APPROVERSLookup Expense Managers 1 & 2 (Approvers) and Organizational department by Dept ID

FIU_GL_TRANDATA_BYDATEDetail transaction data for committed (enc & pre)/ paid expenses as well as budget by Dept ID

FIU_GL_DEPT_PROJ_LOOKUP Lookup Fund / PCS/ Class associated with a Dept ID or Org dept/Fund/Class/PCS/PCBU/Activity for a project


Query Data

Objective







6. Demo

The nVision reporting toolProvides real-time financial reporting capability.

Extracts requested financial data from PeopleSoft.

Places it into an Excel spreadsheet where it can easily be reviewed and manipulated.


Report Reques

t

Layout

Scope

•Keyed to Business Unit•Includes saved parameters

•Rules for generating reports for slices of the data•The Scope feature allows you to create multiple instances of a report using a single report request.

Template or style sheet

Reporting nVision – ElementsMicrosoft ExcelMicrosoft Excel is the backbone of nVision reporting. nVision

facilitates the retrieval of information from PeopleSoft databases into a Microsoft Excel spreadsheet.

The Layout of the ReportThe Layout of the Report is a Matrix or Tabular Excel spreadsheet.

The Ledger TablesLayouts retrieve data from a ledger. This could be Actual, Budget or

Forecast Ledgers. The ledger tables have five major data components: Business Unit Ledger Chartfields (Account, Department and Project ID, Program, Fund, Site or Class.

Additionally for Projects PC Business Unit and Activity) Period and Year Net Posted Amount

Actual transactions and Budget Transactions are stored on two separate tables. Actuals data is on the LEDGER table Budget data is on the LEDGER_KK table Office of the Controller

Reporting nVision – Elements Continued

Time SpansTime Spans control the number of data periods extracted

from the ledger table and summarized.

TreesTrees are used to create hierarchical structures that visually

represent a set of summarization rules for a particular field. The summarization rules depicted in a tree apply to the detail values of a particular field – departments, accounts, funds, vendors, customers or other values the University defines.


Reporting nVision – VariablesReport Variables Provide information about

the current nVision report such as the Business Unit, Report ID/name, Title, Layout Name, Operator ID, etc.

Date and Time Variables

Provide information about the Date of the Report, the Tree, the Fiscal Year Accounting Period, etc.

Scope Variables Provide information related

to the scope definition used in the nVision report such as the Scope Field Value or description (i.e., department id or name)


Reporting nVision – Time Spans

Time SpansThe Time Span controls the number of data periods

extracted from the ledger tables and summarized.Typical Time spans provided with PeopleSoft General Ledger

include: PER – Period – Retrieves only activity for the period selected (1=July, 2=Aug,

etc.) YTD – Year to Date – Includes year-to-date amount for items selected. BAL – Balance – Retrieves life-to-date amounts (balance forward amounts) for

balance sheet accounts.

Time spans are often expressed relative to current period, so that they automatically adapt the content of a report to the “As of Reporting Date” specified when the report is executed.


Reporting nVision – ScopeScopeA Scope can be on one Chartfield and one value as well as

many Chartfields and any valuesA Scope can be built on single values or tree nodes.This is a single value scope:


Reporting nVision – ScopeScopeThis Scope includes Department and Fund Trees:


• This Scope can be copied to another and change the fund node to: OTHER_UNRESTRIC_FUND


CFO / BOT

OFP

EABM

ABMDeptID E&G : DI report

Non E&G: XA report

Fund College/Unit

Non Athletics: AS reportAthletics: AI Report

Fund Exec Area

E&G and Non E&G: AS report*

Fund

VA Report

Users ReportAggregate

level

*A modified version of the AS showing subtotals per EA and College is being tested


nVision Financial ReportsVariance (Budget vs. Actual) Reports

Type of Report Description of the Report Name

Detail Transaction Reports

Detail transaction data for committed (enc & pre)/ paid expenses as well as budget by Dept ID DT

Summary Reports

Detail variance by account with a subtotal by account rollups ( S&B, OCO,OPS, OOE) for a single Dept ID

DIDetail variance by account with a subtotal by account rollups ( S&B, OCO,OPS, OOE) for a single E&G Dept ID

Detail Inflow (revenue, fund balance & transfers in) and Outflow (Expenses and transfers out) variance with subtotals account and account rollups

XA

Detail Inflow (revenue, fund balance & transfers in) and Outflow (Expenses and transfers out) variance with subtotals account and account rollups for an Athletics dept

AI

nVision Financial ReportsVariance (Budget vs. Actual) Reports

Type of Report Description of the Report Name


Executive Summary

Actual and budget information for Salaries & Benefits for a range of Dept ID with a subtotal by Dept ID and funding source

AS*

Actual and budget information for Other Capital Outlay for a range of Dept ID with a subtotal by Dept ID and funding source

Actual and budget information for Other Personnel Services for a range of Dept ID with a subtotal by Dept ID and funding source

Actual and budget information for Other Operating Expenses for a range of Dept ID with a subtotal by Dept ID and funding source

Actual and budget information for all expenses for a range of Dept ID with a subtotal by Dept ID and funding source

Actual and budget information for revenues for a range of Dept ID with a subtotal by Dept ID and funding source

*Note: The revenue section is collapsed

Reports Inventory: Variance Analysis

The VA Report


The Columns come from Ledgers and use Time Spans

The Rows come from Chartfields


Variance Categories:Perm. Salaries OPS OCO OOE Total Expenses

Revenue

Reports Inventory: Variance AnalysisThe AS report


Reports Inventory: Variance AnalysisThe XA report


Reports Inventory: Variance AnalysisThe DI report


CFO

OFP

EABM

ABMDeptID Budget Overview

Budget Status Report

Fund College/Unit

Fund Exec Area

E&G and Non E&G: DS Report

Fund

DS Report

Audience

Report

E&G and Non E&G: DS Report

Aggregate level

Reports Inventory: Available Balance


Reports Inventory: Available BalanceDS Report


Reports Inventory: Available BalanceDS Report Budget Reconciliation


Reports Inventory: Available BalanceES Report


nVision Financial Reports

Available Budget

Detail Budget status Report Available Balance detail by Budget account DIBudget Status*

Salaries Executive Summary Salaries & Benefits Available Balance ES ES

OCO Executive Summary Other Capital Outlay Available Balance EC EC

OPS Executive summary Other Personnel Services Available Balance EO EO

OOE Executive Summary Other Operating Expenses Available Balance EE EE

Executive Summary Exec Sum by Dept DS DS

*Note: The Budget status report is NOT an nVision report. A tutorial is available online (UPK) on how to run it at http://panthersoft.fiu.edu/financials/onlinetraining.htm

Objective






6. Demo



Reports Inventory: The DT report Using nVision


Reports Inventory: The DT report



You can choose either a Department Area or Activity Number for this report. Whichever you choose, your report will reflect all selections for the report.



Be sure to “ENABLE” the Macros for you to adjust and retrieve the item details from PantherSoft.

Questions ?

financial reporting training

Documents

advancement of fiu

fiu online conference

students revenues

financial activity

cash basis

inoperating revenues

fiu08 fd enterprise

fiu09 fd enterprise