Managing a BudgetConducted by the Budget OfficeCorbin deNagy – Budget Analyst

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GL: Where accounting transactions are recorded, contains actual (non-budgetary) financial information

GL Accounts: Classify balances on the GLExamples:◦ 112000 – Cash in Bank◦ 600501 – Investment Earnings-Interest◦ 741101 – Supplies Office

GL Journal Entries: Record accounting transactions, must be in balance (Debits = Credits)

General Ledger Concepts

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Examples: When a voucher is keyed◦Debit Expense $500◦Credit Payable ($500)

General Ledger ConceptsGL

Account Type

OMNI Accoun

ts

GL Account Examples

Increase

Decrease

Assets 1XXXXX2XXXXX Cash, Receivables Debit Credit

Liabilities 3XXXXX4XXXXX Accounts Payable Credit Debit

Revenues 6XXXXX Interest Income Credit Debit

Expenses 7XXXXX Salaries, Office Supplies

Debit Credit

When the payment is made◦Debit Payable $500◦Credit Cash ($500)

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Budgetary Accounts: Classify balances on KKExamples:◦ 690500 – Budget Interest Earnings◦ 710000 – Budget Salary Wages◦ 740000 – Budget Expense

Budget Journals & Budget Transfers: Record transactions to KK budget ledgers◦ Journals are used to increase or reduce budget◦Transfers are used to transfer budget

Commitment Control Concepts

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KK Ledger Groups & KK Ledgers: Where budgetary transactions are recorded

Examples:

Commitment Control Concepts

KK Ledger Group KK Ledger

CC_EXP_GRP For non-project expense budgets

CC_BUD – Expense Budget

CC_ENC – Encumbrances

CC_EXP – Expense

CC_REV_GRP For non-project revenue budgets

CC_REV_BUD – Revenue Budget

CC_REV_REC – Revenue Recognized

CC_REV_COL – Revenue Collected

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GL & KK: What posts to each?Transaction GL KK

GL Journal Entries

Everything Lines including cash, receivables, payables, revenues, expenses, etc. all post to the GL.

Some things Only lines including non- property revenues and non-property expenses post to KK.

Budget Journals & Budget Transfers

Nothing GL Journal Entries are the only financial transactions that post to the GL.

Everything Lines updating budget balances post to the appropriate KK budget ledgers.

Other – Purchase Orders, Travel Authorizations, etc.

Nothing GL Journal Entries are the only financial transactions that post to the GL.

Some things Encumbrances are established when purchase orders or travel authorizations are issued.

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In OMNI:◦Departments roll up to Areas◦Areas roll up to Schools/Colleges*◦Schools/Colleges roll up to Divisions

Examples:

*Note: OMNI Schools/Colleges are not always academic!

OMNI Organizational Structure

Department AreaSchool/College

Division

008012Women's Track

Women's Athletics Athletics Central

Administration042002Utilities

ElectricityUtilities AVP Facilities Finance &

Administration

087001FL Climate

CenterMeteorology College of Arts

& Sciences Academic Affairs

187016Jazz Education College of Music College of MusicAcademic Affairs

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Budget Entity is a classification used to define resources. In short, it indicates funding sources.

Funding sources may be:◦Appropriated – Set aside by the State Legislature

for specific purposes◦Non-Appropriated

At FSU, budget entities correspond to OMNI Fund numbers.

What is a Budget Entity?

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OMNI funds 1XX (non-College of Medicine) and 2XX (College of Medicine).

Appropriated by the State Legislature.

Includes General Revenue (primarily Florida’s sales tax), Student Tuition and Fees, and Lottery.

Spending must result in a direct, specific benefit to the University.

Education and General (E&G)

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OMNI funds 121 and 126

Established in 2008-09.

Funds are allocated by the Provost.

F.S. 1009.24, “the revenues from the tuition differential shall be expended for purposes of undergraduate education.”

E&G: Tuition Differential

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OMNI funds 3XX

Primarily sales to University departments, students, faculty, staff, and others. Student Housing, food services, bookstores, student health centers, transportation and parking services, facilities management and computer support are among the major services provided.

Spending from an auxiliary should be consistent with its mission/purpose.

Note: Surplus revenues from Market Rate Tuition auxiliaries (OMNI fund 325) may be used in support of non-auxiliary activities, but must follow E&G/auxiliary spending guidelines.

Non-E&G: Auxiliary

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OMNI funds 520-570

From contracts and grants related to sponsored research.

Spending must comply with all university and agency requirements, and must follow the terms of the contract/grant.

Budget Office policies and procedures cover everything except sponsored research activities under the purview of SRAS.

Non-E&G: Contracts and Grants

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OMNI fund 610

Primarily the Activity and Service (A&S) fee, along with some self-generated revenues from the FSU Flying High Circus, the Ogelsby Union, etc.

A&S fee revenues are allocated by SGA and should be spent to benefit the student body in general.

Non-E&G: Student Activities

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OMNI fund 615

From the technology fee paid by students.

Funding is distributed in three ways: (1) one-third to the colleges based on an allocation model that uses each college’s most recent total student credit hours; (2) one-third to the central IT organizations based on a similar model; (3) most or all of the final one-third to faculty or staff projects that enhance instructional technology.

Non-E&G: Technology Fee

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OMNI fund 620

Commissions from vending machines (over 250 on campus!).

Funds are allocated from the President to the VPs and then to the colleges/departments.

Non-E&G: Vending

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Identifying DDDHC, Budget Manager, Authorized Signer(s)◦ To look up single departments:

Financials Main Menu Set Up Financials/Supply Chain Common Definitions Design Chartfields Define Values Chartfield Values Add to Favorites! Department

◦ To look up multiple departments: Financials Main Menu Reporting Tools Query Query Viewer FSU_DPT_AUTHORIZED_SIGNERS

Designations

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Authorized Signers – those designated to approve transactions.

DDDHC – typically delegates budgetary responsibility, but holds ultimate responsibility for the fiscal soundness of a department.

Designations can be updated using the Update Existing Department ID Form (located on the Budget Office website).

A Few Notes: Designations

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Serves as the official contact for the department on financial matters.

Ensures that departmental ledgers are reconciled to supporting documents.

Identifies and corrects invalid department-fund combinations.

For Non-E&G, enter operating budgets. Completes and submits required

documentation. Maintains departmental available and cash

balances.

Budget Manager Responsibilities

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Budget Office policies and procedures cover everything except sponsored research activities under the purview of SRAS.

Our office focuses on DDDHCs, Budget Managers and Authorized Signers, SRAS focuses on project personnel.

Updates may need to be made through SRS along with Chartfield Values.

http://www.research.fsu.edu/contractsgrants/forms.html

A Few Notes: Designations

Budget Errors prevent financial transactions from posting.

Budget Errors

Budget Error To Correct

Budget is Closed• Sponsored Research Only: Contact SRAS• All Others: Contact the Budget Office

Exceeds Budget Tolerance

(The transaction did not pass E&G “Budget

Checking”)

• Follow procedures to increase E&G Available Balance

No Budget Exists(The department-fund-account combination

has not been activated in OMNI)

• E&G Only: If possible, perform a Budget Transfer to add budget to the combination• Anyone: Contact the Budget Office to request a Zero Budget Journal

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Budget Entities are constrained by either:◦ Budget◦ Cash

When a Budget Entity is constrained by budget, “Budget Checking” in OMNI will prevent transaction from being processed without sufficient funds.

When a Budget Entity is constrained by cash, departments may spend into a cash deficit, as there is no “Cash Checking” in OMNI.

Spending Constraints

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Which Budget Entities are constrained by budget?◦All E&G funds (1XX-2XX)

Which Budget Entities are constrained by cash?◦All Non-E&G funds (3XX, 610, 615, etc.)

Why are E&G funds constrained by budget and not cash?

Spending Constraints

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What does this mean for the Budget Manager?◦When spending is constrained by budget,

departments should monitor Available Balance.

◦When spending is constrained by cash, departments should monitor Departmental Cash Balance

Before we delve into this more, let’s recap.

Spending Constraints

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Recap: FSU Budget Entities

Budget EntityOMNI Fund(s

)

State Appropriate

d

Spending Constrain

tEducation & General

(E&G) 1XX Yes Budget

E&G-College of Medicine 2XX Yes Budget

Auxiliary 3XX No Cash

Student Activities 610 No Cash

Technology Fee Trust Fund 615 No Cash

Vending 620 No Cash

Athletics 630 No Cash

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Available Balance = Budget-Encumbrances-Expenses

There are a few ways to check available balance:◦Budgets Overview◦Budget Detail◦OBI Available Balance

The first two ways are “live” while OBI uses data as of close of business the night before.

Available Balance

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OMNI Financials Main Menu Commitment Control Review Budget Activities Budgets Overview Add a New Value tab Enter BUD OVER Add Ledger Group: CC_EXP_GRP Save

Available Balance: Budgets Overview

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Let’s try an example:◦Enter 004% in the Dept field◦Click Search

What information do we have?What information can we ignore?

Available Balance: Budgets Overview

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OMNI Financials Main Menu Commitment Control Review Budget Activities Budget Details Ledger Group: CC_EXP_GRP

Available Balance: Budget Detail

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Let’s try an example:◦Ledger Group: CC_EXP_GRP◦Enter 004% in the Department field◦Budget Period: 2013◦Click Search

What information do we have?What information can we ignore?

Available Balance: Budget Detail

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myFSU BI Dashboards Financial Reports – Available Balance

Notice the date and time beneath the headers – if you are providing data from OBI, be sure to note that the data does not include the current day’s transactions

Available Balance: OBI Available Balance

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Let’s try an example:◦ Click the drop-down arrow for Department◦ Click Search…◦ Enter 004 in the Name field◦ Click Search◦ Click the double arrows to “Move All”◦ Click OK◦ Click Apply

Unlike the other options, OBI Available Balance will not show carryforward funds next to current-year funds. To view carryforward funds, change the Report Categories to E & G – FSU – CARRY FORWARD

Available Balance: OBI Available Balance

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You discover that one of your departments has a negative available balance; what do you do? You could do one or both of the following:◦Transfer budget between departments and/or

accounts Budget cannot be transferred between different

E&G funds Salary conversions must be processed by the Budget

Office◦Transfer expenses between departments and/or

funds Maintain reporting integrity (e.g., E&G expenses

that belong on E&G should not be transferred to an Auxiliary)

Payroll transfers must be processed by Payroll Accounting

Negative Available Balance

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The Budget Manager designation does not give an employee the proper security to process budget transfers in OMNI.

Any user (Budget Manager or not) may request the Budget Transfer Role via the eORR link.

The FSU Budget Transfer Role Request form (available on the Budget Office website) must also be submitted to the Budget Office.

Budget Transfer

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In general, budget may be transferred:◦ Within a department, between budgetary accounts

(046000-110-720000 to 046000-110-740000)◦ Between departments, within a budgetary account

(046000-110-720000 to 001000-110-720000)◦ Between departments and budgetary accounts

(046000-110-720000 to 001000-110-740000) Budget cannot be transferred between funds

(i.e.,110 to 140). Why? All E&G budget transfers involving Salary (710000)

must be coordinated through the Budget Office. Visit the Budget Office website for detailed job aids.

Budget Transfer

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Department

Fund Account Budget Encumbrances

Expenses

Available Balance

046000 110 740000 $20,000 $5,000 $17,000

$(2,000)

046000 110 710000 $5,000 $1,000 $1,000 $3,000

046000 140 700001 $15,000 $3,000 $6,000 $6,000

046001 110 740000 $10,000 $2,000 $2,000 $6,000

046002 320 740000 $30,000 $20,000 $2,000 $8,000

Negative Available Balance

Let’s try an example:◦What could we do to correct this negative

available balance?

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How often should a Budget Manager monitor their available balance?

Answer: At least weekly. The Budget Office runs queries at the end of every month and emails Budget Managers whose departments have an aggregate (non-Salary Budgetary Accounts) negative available balance.

Quick Point: Negative Available Balance

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OMNI Financials Main Menu Reporting Tools Query Query Viewer Query Name: FSU_DPT_CASH_BALANCE Click Favorite under “Add to Favorites”

Departmental Cash Balance

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Let’s try an example:◦Click HTML under “Run to HTML”◦Business Unit: FSU01◦Non E-G Fund w wildcard %: 330◦Dept ID w/ wildcard %: 046001◦As of Jrnl Date: t◦Click View Results

Departmental Cash Balance

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You discover that one of your departments has a negative cash balance; what do you do? You could do one or both of the following:◦ Transfer cash between departments and/or funds

E&G cash cannot be transferred to Non-E&G, and Vending cash cannot be transferred to a Non-Vending fund

Maintain reporting integrity (e.g., cash that truly belongs on Student Activities should not be transferred to cover an Auxiliary cash deficit)

◦ Transfer expenses between departments and/or funds Maintain reporting integrity (e.g., Auxiliary expenses that

belong on an Auxiliary should not be transferred to E&G) Payroll transfers must be processed by Payroll Accounting

Negative Cash Balance

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How often should a Budget Manager monitor their cash balance?

Answer: Like available balance, at least weekly. The Budget Office runs queries at the end of every month and emails Budget Managers whose departments have a cash deficit.

Quick Point: Negative Cash Balance

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What funds do you get to keep?

Treatment of Funds at Year End

Type of Budget Entity

Funds Funds Kept by Department

E&G

OPSExpenseOCOSpecial CategoriesCarryforward

June 30th Encumbered Balance + Available Balance

Salary $0-Excess funds are swept to the University Central Reserve

Non-E&G Cash June 30th Fund Balance

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E&G Example

At June 30th, your balances are:

How much would your July 1st carryforward budget be?

Treatment of Funds at Year End

Budgetary Account

Budget Encumbrances

Expense Available Balance

Salary $300,000 $5,000 $283,000 $12,000

Expense $40,000 $2,000 $16,000 $22,000

Carryforward

$10,000 $1,000 $8,000 $1,000

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Rate: the annualized pay attached to a position (doesn’t include fringe benefits)

Salary: Rate plus fringe benefits

Example:◦An employee’s Rate, or annual pay, is $30,000.◦The University pays an additional $8,400 for

the employee’s health insurance, retirement, etc.

◦The Salary budget for the employee is $38,400.

Rate vs. Salary

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For the Operating Budget, the Budget Office calculates E&G Salary budgets by department, then books the budgets in OMNI.

The Budget Office then manages E&G Salary throughout the fiscal year using a process called Rate Allocation, keeping control totals of Rate.

For this reason, any Rate changes must go through the Budget Office.

E&G Salary Budgets

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Unlike Rate, Salary budget is not generally adjusted during the fiscal year.Exception: In some cases, unused budget for Faculty (excluding benefits) may be converted to OPS, Expense, or OCO. These conversions must be processed by the Budget Office.

Because the Budget Office manages E&G Salary, Budget Managers do not need to monitor E&G Salary budget or available balance. They do need to ensure that employees are paid correct amounts on the proper department-fund combinations.

E&G Salary Budgets

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For the Operating Budget, the Budget Office generates Non-E&G Position Reports to show estimated Salary expenditures by department.

These reports are sent to Budget Managers, and the Salary Estimates are displayed on the Non-E&G Budget Request screen in OMNI.

Budget Managers may use these estimates to develop their Salary budget requests.

Non-E&G Salary Budgets

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Once Operating Budget requests are approved and booked in OMNI, Non-E&G budgets are not generally adjusted.

Like E&G, Non-E&G Budget Managers do not need to monitor Salary budget or available balance. They should, however:◦Monitor their Departmental Cash Balance◦Ensure that employees are paid correct amounts

on the proper department-fund combinations

Non-E&G Salary Budgets

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For E&G, three reports are periodically created and distributed to OMNI Schools/Colleges:

1. Allocation Reports (separate Faculty & Support Staff)2. Position Reports (separate Faculty & Support Staff)3. Support Staff Rate Pool Reconciliations (which

reconcile Allocation Reports to Position Reports)

Non-E&G Position Reports are created and distributed to Budget Managers:

1. Around June of each year for use in developing budgets2. As requested

Budget Office Reports

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Visit the Budget Office website for more on:◦Rate & Salary◦Fringe Benefits◦In-Unit & Out-of-Unit Classifications

http://www.budget.fsu.edu/Positions-Rate

More Rate & Salary Information

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Can we have more than one Budget Manager?◦ Answer: OMNI only allows for one person to be listed.

Our department is starting a new auxiliary; can we use our main department ID (which is an E&G department)?◦ Answer: The purpose and corresponding coding of the

department ID determines what Budget Entity can be used. Typically, a department ID can only be associated with one Budget Entity. For this question, the auxiliary would need to have it’s own department ID.

◦ Exceptions

Frequently Asked Questions

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Can we delete or inactivate an unused department ID?◦ Answer: At this time, we are unable to inactivate department

IDs. We cannot delete department IDs because we must retain historical records.

If we can’t delete or inactivate an unused department, why do we need to maintain department designations (DDDHC, Budget Manager)?◦ Answer: Designations must be maintained in case erroneous

transactions hit the department. If this happens, we will know who to contact (remember – the Budget Manager is the official contact for the department).

Frequently Asked Questions

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Budget Office: http://www.budget.fsu.edu/◦ Important Announcements◦Budget Office Staff◦Financial Reports & Data◦Auxiliary Information and Forms◦Positions & Rate Information and Forms◦FSU Department ID Form◦Budget Manager Responsibilities◦ Job Aids◦Frequently Asked Questions and a Glossary of Terms

Controller’s Office: http://control.vpfa.fsu.edu/

Essential Websites

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Enterprise Resource Planning (ERP): http://www.erp.fsu.edu/

Human Resources: http://hr.fsu.edu/

OMNI Training: http://omni.training.fsu.edu/

Purchasing Services: http://purchasing.fsu.edu/

Sponsored Research Accounting Services (SRAS): http://www.research.fsu.edu/sras/

Essential Websites

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Budget Office Courses◦BTBUD1 – Managing a Budget◦BTBUD2 – Introduction to Auxiliaries◦BTBUD3 – Auxiliary Rate Calculation

Visit http://www.hr.fsu.edu/train/ for:◦Course Schedules◦Registration Instructions

Classroom Training Courses

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Thank you for attending!

Questions or comments?

Please complete a course evaluation!

Corbin deNagy645-0050cdenagy@admin.fsu.edu

The End!