Best Practices
Boise State University Budget Office
Company
LOGO
Goals for Training
1. Understand Basic Budget Building
2. How to Monitor OE, Travel &
Capital Budgets
3. How to Monitor Payroll Budgets
4. Understand End of Year Processes
For Profit vs. Government
For Profit
Government
Revenue –
Expenses = Net
Income
Resources Received
= Resources Used
Maximize Profit
Efficient & Effective
Use of Resources
Boise State University
Financial Reporting
Fiscal
Year
FY 2008
July 1, 2007
To
June 30, 2008
Program
Type
Department
Account
Associated with
Department
10 Digit
Alpha-Numeric
6 Digit
Numeric
General
description of
activity
909A100001
Asset
Liability
Revenue
Expense
Fund Balance
Fiscal Year
12-Months
July 1 to June 30
FY 2008: July 1, 2007 – June 30, 2008
Program Types / Activity Type










Program 01: Instruction
Program 04: Research
Program 06: Public Service
Program 07: Library
Program 08: Student Services
Program 09: Physical Plant
Program 10: Institutional Support
Program 11: Academic Support
Program 12: Auxiliary Enterprises (Athletics)
Program 13: Scholarships
Program Types / Activity Type
Department
Anatomy of the Department ID
Biology
Format: 3-1-6
Alpha Numeric
006 A 100001
Department
identifier
Fund Source
A = Appropriated
L = Local
G = Grant
1 = Main Campus
2 = BSU West
Section/Unit Identifier
Accounts
6 Digit Numeric
“Buckets”
3***** = Revenue
4***** = Personnel Costs
5***** = OE & Travel (53****)
6***** = Capital
9***** = Fund Balance
Budget Rollup Accounts
410000
Regular Salary
411000
Part-Time/Irregular Salary
412000
Student Salary
420000
Fringe Benefits
500000
Operating/Other Expenses
530000
Travel
600000
Capital Outlay
Types of Financial Statements
Income Statement

GL Department Detail Report
Balance Sheet
Etc.
Users of our Financial Statements
Departments
Deans / VP’s /
Provost / President
State Board of
Education
Governor /
Legislature
Lending institutions
Auditors
Uses of Financial Statements
Track progress towards goals
Compare Actual with Plan/Budget
Communicate
Modify behavior
Assess financial condition
Assist in evaluating efficiency and effectiveness
Why do we have Budgets?
Control spending
Monitor progress & modify spending
Communicate
Required
Kinds of Budgets
Appropriated

General Fund (taxes)
 $80 million Budget

Tuition
 $47 million Budget
Local & Auxiliary




Other Student Fees
User Fees
F&A
Transfers from
Foundation
 $26 million Local
Budget
 $61 million Auxiliary
Budget

***A****** Departments

***L****** Departments
Appropriated Budget Process
BSU Budget Process
MAR: JFAC &
SBOE sets Budget
MAR: Local
Budget
Templates
MAY: BSU
sets
department
budgets
JULY: Budget
effective
DEC: Annual
Planning
Documents
AUG: Submit
Budget
Request to SBOE
Local Budgets
Budget = a plan or estimate
Most common meaning for business
Budget is not a guarantee
No budget transfers
Annual budget preparation: March – May
Separate budget book
Look at the bigger picture **
** Think of: Fund Balance = Spending Authority
Why Budget Local Departments?
Required to submit Local Budgets to the State
Board of Education

(For FY08 864 budgets sent out, 648 returned
75%)
Estimate activity
Ensure strategic plans are met
Make better planning decisions
Gives you something to compare current activity
against
How does a Local Budget work with
the Fund Balance?
Fund Balance
10,000
Budget
Salary
OE
5,000
5,000
How does a Local Budget work with
the Fund Balance?
Fund Balance
10,000
(3,000)
Budget
Salary
OE
5,000
5,000
(3,000)
How does a Local Budget work with
the Fund Balance?
Fund Balance
10,000
(3,000)
7,000
Budget
Salary
OE
5,000
5,000
(3,000)
2,000
5,000
Auxiliary Budgets
Auxiliary Enterprises are essentially selfsupporting per SBOE policy
Annual budget preparation: March - April
Information for budget preparation




Projected enrollment
Salary and payroll expense
Utilities
Administrative Service Charge
Separate budget book
Auxiliary Budget Overview
16 Auxiliary Enterprise Departments
FY08 Revenue = $61,315,648
FY08 Expense = $61,260,842
FY08 Total Employee FTE = 357.85
Auxiliary Budget Revenue
AUXILIARY REVENUE BY CATEGORY
OTHER REVENUE
3.4%
ADVERTISING & PROMOTIONS
2.6%
APPROPRIATED
3.9%
FACILITY RENTAL
2.9%
STUDENT FEES
16.6%
PRIVATE GIFTS
6.6%
SALES & SERVICE
49.2%
TICKET SALES & EVENTS
14.8%
Appropriated Budget
Annual Planning Documents




Request additional budget for upcoming fiscal
year.
Used to plan for the next years budget request
Planning
Communicate
Approved New Budget is communicated to
department through VP or Provost
Appropriated Budget Book
Distribution
Lists $$ support from State and from Students
Lists permanent budget for each appropriated
department
One-time vs. Permanent Budget
Permanent transfers increase or decrease the
next years original budget (base) as well as this
years budget
One-time transfers only effect the current year’s
budget
Budget Transfers
Allowable Budget Transfers
Clearing Budget Errors

One error holds up the entire journal entry
Budget Transfer Form



Appropriated Only
Correct signatures
Plan ahead – remaining fiscal year
 Not just one pay period at a time
Monitoring OE, Travel & Capital
Reports





Department Detail Report
Department Summary Report
Appropriated Budget Summary
Budget Overview
DDR Query & Pivot Table
Monitoring OE, Travel & Capital

DDR Query & Pivot Table
 On-line instructions:
http://finad.boisestate.edu/aa_home.htm
 Pros and Cons of using DDR Query



Additional entry information
Entry signs are ‘reversed’
No budget information
 Examples:



Single DeptID – 12 months side-by-side
Single DeptID – 3 Years side-by-side
Multiple DeptIDs – side-by-side
Monitoring OE, Travel & Capital
Local & Auxiliary

Fund Balance
 What to look for on reports
 No deficits in fund balance

Budget
 What to look for on reports
 No budget transfers

Except for: Auxiliary, computer labs, & a very few others
Monitoring OE, Travel & Capital
Appropriated

Budget
 What to look for
 No deficits in budget



Allowable Budget Transfers
One-time vs. Permanent
Timing of transfers
Monitoring OE, Travel & Capital
Tracking – Folders and Spreadsheets

Folders for
 Open Payments
 Pending Invoices
 Pending P-Card
 Pending Deposits
 Posted Expenses
 Posted Revenues
When picking an account


Be Specific, Reasonable & Consistent
Examples: Non-employee travel is OE
Folders - Example
Folders
I’m going to purchase
MS Project with my PCard. Cost is about
$100.
Folders
Memo:
Acct: 557000 Desktop Software
I’m going to purchase MS
Project with my P-Card.
Cost is about $100.
Folders
Match Memos to P-Card
“Statement”
Memo:
P-Card “Statement”:
$107.59
Office Max
Code to 557000 Desktop Software
Folders
Place in Pending P-Card Folder
Memo:
P-Card “Statement”:
$107.59
Office Max
Code to 557000 Desktop Software
Folders
Place in Pending P-Card Folder
Memo & P-Card
“Statement”
Folders
Match P-Card Statement to
PeopleSoft
Department Detail Report:
500000 OE
557000 Desktop Software
Memo & P-Card
“Statement”
P-Card Wargo 107.59
Folders
File in Posted Expenses Folder
Department Detail Report:
500000 OE
557000 Desktop Software
Memo & P-Card
Statement
P-Card Wargo 107.59
Folders
File in Posted Expenses Folder
– Keep 5 years
Detail Report
P-Card Statement
Memos
Folders
?
?
Department Detail Report:
500000 OE
?
571020 Minor Tools
Home Depot $456.78
DDR query.
Call AP (if source document is
AP) or Accounting to get more
information.
Folders
Invoice Copy
$345.67 Office Solutions
Department Detail Report:
?
Call AP (if the source document
is AP) or Accounting to get more
information.
Reconciliation Workbook
Advantage of folders:

Tracking expenses from your office to PeopleSoft
Example
Advantage of Workbook

Tracking permanent vs. one-time budget
Monitoring Payroll
Reports & Tools

Payroll Expense Distribution Report
 Example

Payroll query from Business Manager
Budget Position Action Request
(BPARs)
 Main focus is on the position
 Submit BPAR if requesting permanent new position

Must have APPROVED funding
 Permanent Budget (transfer if Appropriated)
 Approved Supplemental Funding Request (SFR) form if
funded by an appropriated department
 Other reasons for submitting BPARs
 Academic Areas

Must have Department Chair, Dean & Provost signatures
before submission to the Budget Office
 Non-Academic Areas

Must have Director & Vice President signatures
Employment Action Forms (EAFs)
 Main focus is on the employee
 Submit EAF for reappointment if:



funded by grant
for temp employee,
change in salary, term, title
 Importance of submitting EAFs in a timely manner
 If late, creates payroll corrections & could delay first
paycheck
 Effective Dates
 Contract Dates/Working Dates
Prorated Salaries
Prorated Salaries


Employees working less than 12 months
Example
Who Funds Salary Changes?
Faculty & Professional
Classified
Appropriated Salary Savings
What is Salary Savings?

Salary savings occurs when there is a vacancy in
a permanent PCN that is funded by an
appropriated department
Appropriated Salary Savings
Items needed for salary savings request





Budget Book
GL Detail
Budget Salary Ledger Query (provided by your
Business Manager)
 Pivot Table Example
Department Salary Summary by PCN Template (will
be provided by the Budget Office upon request)
Request for Use of Institutional Salary Savings Form
 Has to be directly related to a PCN
 Timing of contracts can impact salary savings
Appropriated Salary Savings
How do I figure out the amount of the salary
savings?


Department Salary Summary by PCN Template
Request for Use of Institutional Salary Savings
 Will be reviewed by Budget Office
End of Year Processes
Carryforward



Sweep
Timing
Permanent Budget for payroll (July Payroll Errors)
Behind the Scenes Budget Transfers
STARS Cutoff
Additional Training Opportunities
Budget & Accounting Drop-in Sessions


Tue October 16, 2007 9am
Tue November 20, 2007 9am
PeopleSoft Training


October 10, 2007 9am – noon
Call Suzy White x 6-2543
Let’s Talk – Account Codes

October 24 11am