Reading Account Statements
& Expenditure Processing
February 17, 2011
Sponsored Programs Accounting
Workshop Goals/Objectives
• Overview of which documents PI receives on
monthly basis and what they are
• How to understand your monthly statements
• Understand Expense Processing (purchasing
card / travel)
• Answer any questions
Where can I find help?
Call us! Really – we’re friendly people!
487-2244
Reference manual at:
http://www.mtu.edu/research/references/training/docs/reference-manual.pdf
Our website
www.mtu.edu/research/adminstration/accounting
Monthly Statements –
Who gets them?
• Beginning of Month statements are sent to:
• Principal Investigator / Financial Manager
• Department Coordinator
• These reports are sent via Email
What are these reports???
• Budget vs. Actual Report
• Shows a summary of the budgeted line items as well
as current month and project to date expenses
• Organization Detail Report
• Lists all transactions (expenses) for the period
What are these Reports???
• Open Encumbrances Report
• Lists all open encumbrances
• Gross Earnings Report
• Lists Employees on project, hours worked and amount
charged
Budget Vs. Actual Report
Open Encumbrance Report
Organization Detail Report
AKA: Transaction Detail
Gross Earnings Report

How are these reports related?
 All reports tie together!
 Total Payroll Expenses are found on:
Budget vs. Actual, Gross Earnings &
Org. Detail
How are these reports related?
 Non Payroll expenses can be found on the
Budget Vs. Actual and the Organization
Detail
 Total Encumbrances can be found on the
Budget Vs. Actual and the Open
Encumbrance Report
Tying it all Together
Actual Vs. Budget Report
Transaction Detail Report
Gross Earnings Report
Tying it all Together
Actual Vs. Budget Report
Transaction Detail Report
Note that the $210.15
charge shown on the
Actual Vs. Budget Report is
comprised of two different
charges, as shown on the
Organization Detail Report
Tying it all Together
Actual Vs. Budget Report
Open Encumbrance Report
Wondering how much you have
left to spend?
For Projects with no cost share:
Take the BALANCE amount as seen at the bottom
of the Budget vs. actual report
LESS: the total encumbrance amount times the
F&A rate
DIVIDE that total by 1 + the F&A rate
Wondering how much you have
left to spend?
Page 2 of Budget vs. Actual Report
Wondering how much you have
left to spend?
Example:
Balance: $50,036.55 (from Budget vs. Actual)
Less F&A on encumbrances: $4,500 * .56 = $2,520
= $47,516.55
Finally...$47,516.55 / (1+.56) = $30,459.33
$30,459.33 is the amount of direct expenditures
remaining on this project
ANY QUESTIONS?
Expense Processing
Purchasing Credit Card
Travel
Purchasing Card
• Purchasing Card Agreement – on Purchasing’s
web site
http://www.admin.mtu.edu/acct/dept/pur/purchcard/index.html
• Supervisor approval required
• Banner Index must be provided as default –
cannot be a sponsored index
• Pick up card from Purchasing – Citizen’s Bank
5th Floor
Purchasing Card
• Credit Limit $4,999.99 (includes shipping)
• Supplies
• Travel – airfare, car rental, lodging, conference
fees, gas for rental car
• No food, meals, entertainment
• No personal items
• No prohibited items (listed on website)
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Card Holder Responsibilities
• Keep all receipts (3 years or 7 years)
• Reconcile receipts to monthly statement
• Reallocate charges to the appropriate index and
account code
• Include who/what/when/where on Visa
Information Management System for travel
expenses
• Supervisor must sign monthly statement
– Verifying purchases are valid and receipts are on file
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Travel
• Conference/Registration Fees
– Purchasing Card
– Check request
• Transportation
– Mileage – current IRS rate of 51 cents per mile
– Airline Tickets – Superior Travel
Must complete an Advance of Funds form
– Purchasing Card
Travel
• Lodging
– Purchasing Card
– Check request - deposits
• Meals – Per diem rates or actual expenses
–
–
–
–
Standard daily per diem $46/day
IRS Key Cities – higher rates
Return day – standard per diem rate
Actual expenses when hosting non-university
personnel during travel
Business Meals and Banquet Report
• Must include a valid business purpose
• No alcohol
• Payee – can reimburse an employee or pay
the vendor directly
• If paying the vendor, include the vendor in
the Name field
• Include attendees and affiliations
• Include original receipts
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Travel Expense Voucher
•Complete within 2 weeks of return
•List purchasing card expenses in
appropriate section on voucher
•Reimbursable expenses – expenses not
charged to the purchasing card, Superior
Travel or paid via check request.
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International Travel
• Complete an International Travel Request
prior to departure
• Approval of department chair
• Submit to Office of Risk Management &
Insurance
Accounting’s Web site
http://www.admin.mtu.edu/acct/index.html
Travel policies and procedures can
be found under Departments.
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ANY QUESTIONS?
Payroll Forms
Determine the distribution of payroll up front by using:
• Account distribution Form
• Employee Status Forms
• Time override
Payrolls weblink:
http://www.admin.mtu.edu/hro/payroll/index.shtml
Human Resources series of presentations:
• Getting to Know You
• Keeping It All Together
• Weblink: http://www.admin.mtu.edu/hro/
31
Expenditure Reallocations
Reallocations are sometimes necessary to correct
data entry errors found after reviewing monthly
account summaries.
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Two types of reallocations:
(examples in your handouts)
• Accounting weblink to Expenditure reallocation form:
http://www.admin.mtu.edu/acct/pdf/reallocation_of_expenditures.pdf
• Payroll weblink to the reallocation form:
http://www.admin.mtu.edu/hro/forms/payrollreallocationform0608.pdf
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Reallocation after 90 Days
Expenditure reallocations to sponsored projects
after 90 days of the original charge are generally
unallowable.
OMB Circular A-133, Federal guidelines for auditors
specifically directs auditors to target: “projects that
are complete or in the later stages of completion.
Frequent, untimely, and poorly documented
reallocations can be an indicator of poor internal
control”.
35
Reallocations necessary and exceptions
to 90 day requirement:
Official paperwork for an award is delayed (could request an
advance-Handouts):
http://www.mtu.edu/research/administration/sponsoredprograms/pdf/advance2.pdf
Charging another sponsored project while waiting for
another to be awarded.
A semester effort certification is received and there is a
problem with the % effort.
It is determined that an unallowable expense is charged to
the project.
When reallocating to another index under the same award.
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Miscellaneous:
Justification should always include:
• Why the expense was not originally charged to the
correct project.
• How the expenditure relates/benefits the project being
charged.
Other
to the sponsors and auditors:
Reallocations charging one sponsor project to clear a
deficit in another.
Reallocations at the end of the project to spend the
remaining balance.
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QUESTIONS?
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