The Florida State University Controller’s Office & University Business Administrators Present: Introduction to University Accounting BTFA01 Class Objectives • OMNI – Gain an understanding of what OMNI is and how it relates to the fiscal operations at FSU. • Chartfields – Define chartfields and discuss what purpose they serve when it comes to financials. • Ledgers – Define ledgers and discuss what they are used for at FSU • Journal Entries – General definition of journal entries and how they are performed at FSU. • Resources - Where to find university related financial information. What is OMNI? • Online Management of Networked Information • Enterprise Resource Planning (ERP) system implemented to best meet FSU’s financial & human resources administration needs. • Implemented in 2004 to replace FLAIR • Developed using PeopleSoft software, a product of Oracle Corporation OMNI Portal Page OMNI Portal Page • Financials • • • • • • • • Focus of this class Stores all financial information of the University, including areas such as budget, general ledger, purchasing, inventory and reporting tools Human Resources – Used for Time Entry, benefits information, training signup, job applications, etc. OBI Reporting – Covered extensively in the BTFA02 Financial Reporting Tools class OMNI e-Market – OMNI online shopping module maintained by Purchasing Services FSU Service Center – All Help “tickets” (or “Cases”) maintained here Employee Central – Offers quick access to widely used OMNI modules as well as training materials and key websites E-ORR – Online Role Requests – Interface used to request/approve OMNI and other systems access OMNI Financial Modules • OMNI is a “modular application” • A software or application framework that supports multiple modules • Module – A self-contained, separate but smaller component • SOME examples of OMNI Modules: • Accounts Payable • Purchasing • Travel • Commitment Control (Budget) ChartFields • • • • ChartField - A means of breaking down accounting transactions within the system in order to organize and report on the data contained in OMNI. Which three ChartFields are required for ALL transactions in OMNI? • Department ID • Fund Code • Account Project ID is also a REQUIRED chartfield for Sponsored Research (C&G) projects and construction activity. Navigate to: Financials 9.1>Set Up Financials/Supply Chain>Common Definitions>Design Chartfields>Define Values>Chartfield Values ChartFields Department ID • • Area of financial management at FSU Field is 6 digits • First three digits refer to an academic, administrative, or other major area. • Last three digits refer to cost center with the area. 007 010 Athletics Football • Specific department information or a complete listing of FSU departments can be obtained by running the FSU_DPT_CODES_DEPTID query. ChartFields Fund Code • • • • • A fund identifies the source of monies that are used in a transaction Each fund may have different restrictions on its use Often funds have different reporting requirements Fund Code in OMNI is a three digit numerical code created by central University management Major FSU Funds: • Education & General (E&G) • Fund 110 • Current fiscal year appropriations from the State of Florida • Cash is maintained centrally by Budget Office, so cash balance in E&G departments will always be negative • Carry Forward • Fund 140 • Prior fiscal year(s) E&G funds ChartFields Fund Code • Major FSU Funds (cont.): • • • • Auxiliary • Fund 320 (generally) • Revenue generating business-type activities • Operate on a cash basis (spending is controlled based on their cash not budget) Sponsored Research (aka Contracts & Grants or C&G) • Fund 5xx (excluding 510) • Grants and other research-related monies provided by government or private entities Other commonly used funds include the Medical School (210/240), Construction (8xx) and Athletics (630) Specific fund information or a complete listing of University funds can be obtained by running the FSU_DPT_CODES_FUND query ChartFields Account • Used to record, summarize, and/or categorize financial transactions as assets, liabilities, equity (fund balance), revenues, or expenses • Two types of Accounts • BUDGETARY—record budget • NON-BUDGETARY—categorize transactions Primary Budgetary Accounts Description 710000 Budget Salary and Wages 720000 Budget OPS 740000 Budget Expense 760000 Budget OCO Sample NonBudgetary Accounts Description 710115 Summer Faculty 720111 Graduate Assistants 740501 In-State Travel 760101 Book OCO ChartFields Account • The first digit is used to identify the type of account • • FSU_DPT_CODES_ACCOUNT Expense Account Short List ChartFields Optional ChartFields • • Allow departments to track expenses at a more detailed or customized level. Three available (NOT hierarchical) • CHARTFIELD 1 • CHARTFIELD 2 • CHARTFIELD 3 • • • Using optional chartfields consistently is key Examples of current use: tracking spending by professor, course number, theater production See the General Accounting FAQ for more information: ChartFields Summary Business Unit & Set ID • Business Units: • Operational divisions of FSU • Used in transactions and research • FSU has one primary Business Unit – FSU01* • A Set ID allows different business units to segregate or share information. • Used when creating chartfields or inquiring in OMNI • FSU’s standard Set ID is SHARE* • In OMNI, both Business Unit and Set ID MUST be identified * Some exceptions apply Fiscal Year & Accounting Period • • The fiscal year for FSU is a twelve month period beginning July 1 and ending June 30 Fiscal months are referred to as periods Fiscal Acct Calendar Year Period Month 2013 1 July 2012 2013 2 Aug 2012 2013 3 Sept 2012 2013 4 Oct 2012 2013 5 Nov 2012 2013 6 Dec 2012 2013 7 Jan 2013 2013 8 Feb 2013 2013 9 Mar 2013 2013 10 April 2013 2013 11 May 2013 2013 12 June 2013 2014 1 July 2013 Ledgers • • A ledger is a set of books that stores budgeting and/or accounting transactions. • Detailed information is usually stored in smaller (subsidiary) ledgers • Subsidiary ledgers are often summarized and permanently recorded (posted) to one primary ledger called the GENERAL LEDGER (GL) FSU has two main types of ledgers: • Actuals • Commitment Control Actuals Ledgers • • • Contains actual (non-budgetary) financial information Used to monitor account activity by a particular department, unit, school, etc. Starting point for the preparation of the University’s Financial Statements and other compliance required reporting Commitment Control (“KK”) Ledgers • • THE BUDGET Provides a mechanism for controlling expenditures against a predefined spending limit, by budgetary account • • Can check requisitions, purchase orders and other types of transactions, identify exceptions and give appropriate notification to help monitor available budget balances for both project (C&G/Construction) and non-project transactions. Budgetary accounts are sometimes referred to as “header accounts” • Budget and Analysis Office Commitment Control Ledgers • Non-Project • Revenue Budgets (Auxiliary only) CC_REV_GRP Group Budget CC_REV_BUD Recognized Revenue CC_REV_REC Collected Revenue CC_REV_COL • Expense Budgets (All types) CC_EXP_GRP Group Budget CC_BUD Encumbrance CC_ENC Expense CC_EXP Commitment Control Ledgers Project (Sponsored Research) • KKGMPAR – Parent • KKGMCHD - Child KKGMPAR Group Budget KKGMPARBUD Encumbrance KKGMPARENC Expense KKGMPAREXP KK = Commitment Control GM = Grants Management PAR = Parent CHD = Child KKGMCHD Group Budget KKGMCHDBUD Encumbrance KKGMCHDENC Expense KKGMCHDEXP Commitment Control Ledgers Commitment Control Q: What does every ‘budget manager’ want to know…all the time? A: How much money do I have left to spend? Commitment Control Navigation: Budget Details • Commitment Control > Review Budget Activities > Budget Details Example: • Ledger group: CC_EXP_GRP • Account: 740000 (can leave this blank to receive a search result with all budgetary accounts) • Department: 001000 • Fund: 110 • Budget Period: 2013 (only search current Fiscal Year as previous years will have inaccurate balances) Commitment Control Navigation: Budgets Overview • Commitment Control > Review Budget Activities > Budgets Overview Example: • Inquiry name: Type in your name • Description: Expense account code balances • Ledger group: CC_EXP_GRP • Type of Calendar: Detail budget period • From budget period: 2013 • To budget period: 2013 • Account: % • Department: 001000 • Fund: 110 SAVE, then SEARCH Commitment Control Navigation: Budgets Overview • Commitment Control > Review Budget Activities > Budgets Overview Example: • Inquiry name: Type in your name • Description: C&G budget • Ledger group: KKGMCHD • Type of Calendar: Detail budget period • From budget period: MULTI • To budget period: MULTI • Project: 000049 SAVE, then SEARCH Journal Entries • Journal Entries (JEs) record accounting transactions and MUST be in balance (Debits = Credits) • Information is input into FSU’s ledger by posting JEs from: • OMNI modules (subsidiary ledgers) like Accounts Payable or Asset Management • Third party systems • Systems other than PeopleSoft-based systems • E.g. Student Financial Services, Facilities, Telecommunications • Directly keyed (online) journals • Each Journal Entry in OMNI is assigned a unique Journal ID • Journal IDs • Ten Characters • Some have an alpha prefix used to help identify the purpose of the JE Journal Entry Examples Accounting Concepts for Journals Debits and Credits vs. Account Types Account Assets (1 or 2xxxxx) Liabilities (3 or 4xxxxx) Income (Revenue) (6xxxxx) Expenses (7xxxxx) Type Debit Increases Decreases Decreases Increases INCREASE DECREASE DEBIT ASSET CREDIT LIABILITY Credit Decreases Increases Increases Decreases INCREASE DECREASE LIABILITY DEBIT EXPENSE REVENUE ASSET CREDIT REVENUE EXPENSE Basics of Journal Entries Purchase of office supplies from a vendor: Step 1: Record the purchase (invoice posting): Debit - Expense (Office Supplies) 741101 Credit - Accounts Payable 311000 $1,000 -$1,000 Step 2: Record the payment (cut check): Debit - Accounts Payable 311000 Credit - Cash 112000 $1,000 -$1,000 Basics of Journal Entries Revenue Deposited with University Cashier Debit – Cash 112000 Credit – Revenue 6XXXXX $1,000 -$1,000 Resources • Controller’s Office website - http://controller.vpfa.fsu.edu/ • • • • • Forms Frequently Asked Questions Departmental Business Management Guide Expense Account Lists Departmental Query Listing • OMNI Training website - http://omni.training.fsu.edu/ • Developed by ERP as a “one stop shop” for training resources • Includes online tutorials and job aids on a wide variety of topics Resources • Other central office websites • • • • Budget Office Human Resources Purchasing Services Sponsored Research Resources • Recommended Listservs • University email subscriptions • Useful listservs: • • • • • FinRep OMNI-Financials Fsupcard Fsutravel Accounts_payable Contact Information • Lauren Barrett– Quality Assurance • lmbarrett@fsu.edu • 645-8611 • Paul Harlacher – University Business Administrators • pharlacher@admin.fsu.edu • 644-6972 • Slides available at: http://controller.vpfa.fsu.edu/Training-Job-Aids