Budget Training
Budget
An estimate, often itemized, of expected income and expense for a
given period of time.
Sources
Uses
• Student tuition and fees
• Salaries and benefits
• Reimbursement from the Federal gov’t and
sponsor agencies
• Operating expenses
• Self-generated revenue in auxiliary units
• Utilities
• Cash transfers IN
• Travel
• Cost sharing
Our budgets are developed in the context of the CU system, campus
priorities, and financial pressures and opportunities
Budget Cycle
Planning:
Develop goals &
objectives
Control:
Take corrective action
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Monitoring:
Compare budget to
actuals & investigate
variances
Development:
Estimate cost of
attaining goals &
project revenues
Implementation:
Record budget in
Financial System
General Ledger
P
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P
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Fund Review
1. Budgets are required in:
Fund 1x: General Fund
Fund 20 & 28: Auxiliary Funds
Fund 3x: Restricted & Sponsored Projects
Fund 71: Capital Construction Plant Fund
2. Budget may be recorded in:
Fund 34: Restricted Fund, Gifts
Fund 26 & 29: Auxiliary Funds
Fund 72: Renewal & Replacement Plant Fund funded by Fund 1x
Fund 78: Renewal & Replacement Plant Fund funded by Fund 2x
3. Individuals at the department level can adjust budgets in:
Fund 1x: General Fund
Fund 2x: Auxiliary Funds
Fund 72: R&R Plant Fund funded by Fund 1x
Fund 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 72
From 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 Basics
1. 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 Basics
1. 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
Review
Fund
General: 1x
Auxiliary: 2x
R&R Plant Fund:
72 (GF)
78 (AF)
How does the
budget get into
the FOPPS?
What does the
budget mean?
How do I find the
bottom-line
available to
spend?
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
Revenue
Expense
Increase:
If you want to
INCREASE this type
of budget
-Credit
-500
Decrease:
If you want to
DECREASE this type
of budget
Debit
500
Action
Transfer IN
Transfer OUT
Debit
500
-Credit
-500
Debit
500
-Credit
-500
Debit
500
-Credit
-500
Choosing the Correct Ledger & Account
1. Choose appropriate Continuing or Temporary Ledger
2. 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