AUBURN UNIVERSITY
BUDGETING & ACCOUNTING
Financial Management
Marcie Smith, Assoc. VP for Bus & Finance
Linda Pearce, Controller
Teresa Vest, Director of Budget Services
February 5, 2008
AU BUDGETING & ACCOUNTING
Objectives
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Financial overview of AU
Business Office introduction
Controller’s office and account structure
Administrative systems, Banner Finance
Budget Services and the budget process
Total FY07
Budget by Division
$733.2M
Main
Campus
$550.8
ACES
$56.8
AAES
$61.0
AUM
$64.6
Auburn University
FY07 Total Budget - $733.2M
Unrestricted
$561.4M
77%
Auxiliary
$82.8M
11%
Restricted
$89.0M
12%
AU BUDGETING & ACCOUNTING
What is the Business Office?
• Controller’s Office
(Financial Reporting &
Property Services)
• Mgmt Reporting
• Budget Services
• Student Financial Services
(formerly Bursar and
Financial Aid)
• Procurement & Payment
Services (formerly Accts
Payable & Purchasing)
• Contracts & Grants
Accounting
• Payroll & Employee
Benefits
• Information Systems
Support
Associate VP for
Business & Finance
Marcie Smith
Exec Sec
Sandra Bonney
Director
Budget Services
Teresa Vest
Controller
Linda Pearce
Exec Dir
Procurement &
Payment Services
Shawn Corrigan Asmuth
Exec Dir
Payroll & Employee
Benefits
Ronnie Herring
Director
Contracts & Grants
Accounting
Sheila Duffield
Exec Dir
Student Financial
Services
Mike Reynolds
Director
Management
Accounting
Cindy Selman
Director
Information Systems
Support
Michael Miller
Banner Project
Dir
Fred Bobo
Procurement & Payment Services
• Responsibilities
– Procurement of and payment for acquired goods and services, including
compliance, proper accounting and records retention
– Manage purchasing card program
– Promulgate policies associated with procurement & payment
– Compliance with IRS 1099 tax laws and state escheat laws
• Major Projects
– Enhanced control and fraud monitoring
– Electronic workflow and imaging of financial documents
• Challenges
– Decentralized buying and receiving
– Regulatory climate
Payroll and Employee Benefits
• Responsibilities
– Ensure the timely and accurate pay and all accounting of
payroll & benefits for all AU employees
– Manage all benefit programs
• Major projects
– Benefit analysis and wellness program
– Post retirement actuarial update
• Challenges
– Cost containment of health insurance program
– Decentralized time entry
Contracts and Grants Accounting
• Responsibilities
– Financial reporting and sponsor billing for all sponsored agreements
– Oversees federal, state and other compliance related to financial aspects
of sponsored agreements
– Facilities & Administrative rate development and recovery distribution
• Major Projects
– Effort certification – automate & improve compliance
– Development of Banner reporting
• Challenges
– Keeping abreast of regulatory climate
– Maintaining adequate compliance in decentralized environment
Student Financial Services
• Responsibilities
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Manage student financial aid program
Bill and collect all student tuition and fees
Record revenue received by AU
Maintain student billing system
• Major Projects
– Implementation of Banner student info system
– Integration of activities of billing/receiving with student financial aid to
assure optimal cost savings and efficiencies
• Challenges
– Maintain complex tuition/fee structure
– Maintain compliance with constantly changing Title IV Higher
Education Regulations
Management Accounting
• Responsibilities
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Provide university-wide management reports and analysis
Assist units in preparing management reports
Preparation and analysis of reserve reporting
Oversee capital budgeting, deferred maintenance and debt needs
• Major Projects
– College/School needs assessment
– Development of management reporting and presentation to campus
constituents
• Challenges
– Defining, creating, automating management reports to meet all needs
– Dissemination of information in formats acceptable to deans,
department heads, financial managers, etc.
Information Systems Support
• Responsibilities
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Programming, tech support for finance and human resource systems
Desktop/server support for Business Office & other administrative units
Liaison with central information technology
Production support –data entry, print, imaging financial documents
• Major Projects
– Banner reporting
– Budget development system
– Converting AS400 data and systems
• Challenges
– Prioritizing to meet needs of all users in current climate of new systems
– Constantly changing IT environment
Banner Project Office
• Responsibilities
– Coordinate activities of users, information technology, outside consultants,
steering and executive committees in implementation
– Recommend policy changes and software purchases to senior administration
– Manage project budget
• Major Projects
– Completing student implementation for Fall 07 roll-out
– Implementation of workflow and executive reporting
• Challenges
– Prioritization of competing demands for technical resources
– Coordination of upgrades in a relational database environment
AU BUDGETING & ACCOUNTING
Other Financial Services
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Treasury Services
Development Accounting
Alumni Accounting
Risk Management & Safety
Internal Audit
AU ACCOUNTING & BUDGETING
Mission Statement
• The mission of the Business Office is to
provide leadership in the development,
implementation, and continuous
improvement of the business and financial
services essential for Auburn University to
pursue its mission of teaching, research, and
outreach
AU ACCOUNTING & BUDGETING
• Service is important
• Compliance is important
• Constant balancing act to do both
AU ACCOUNTING & BUDGETING
Service and Compliance
• Increased demands for financial information
• Enhanced technology
• Federal Regulatory Climate - IRS, Federal
Sponsors, Dept of Education, Cost
Accounting Standards
• State regulations – travel, bid law, public
works law
• Governmental Accounting Standards and
Financial Accounting Standards
AU ACCOUNTING & BUDGETING
World Wide Web Information
• Description of each business office
• Financial Policies & Procedures
– Information can be found at
http://www.auburn.edu/administration/business
_office/
– OR on Banner site at
http://auaccess.auburn.edu (will require user ID
to log into Banner)
Controller’s Office
Role of Controller’s Office
AU ACCOUNTING & BUDGETING
Controller’s Office
• Our Customers:
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Federal and State regulatory agencies
External auditors
Bond Agents and banks
Other Institutions for benchmarking
Internal Users - President’s Office, Vice
Presidents, Deans, Directors and Department
Heads and YOU!
AU ACCOUNTING & BUDGETING
Controller’s Office
• Responsibilities:
– Preparing annual, audited, published Financial
Statements
– Coordinate Financial Audit and A-133 Audit of Federal
Funds, NCAA Audit
– Accounting for University Assets
• Cash - monthly bank reconciliations
• Property, Plant and Equipment-Reported in General Ledger
• Capitalized Equipment Recorded in Fixed Asset Module
AU ACCOUNTING & BUDGETING
Controller’s Office
• Responsibilities continued:
– Process Bond Payments and reconcile accounts
related to debt service, ratio analysis
– Preparation of various tax returns including
990T, sales tax and excise tax
– Prepare Journal Entries for transfers and
corrections, review ITV’s and DEC’s, analyze
accounts, do special projects
– Implement service centers policies
– Key role in Banner Finance System
FINANCIAL SYSTEMS
AU ACCOUNTING & BUDGETING
Banner Basics
• Banner Project
• Financial System
– October 1, 2005 implementation
– Includes budget system, finance system, payables, purchasing,
fixed assets
– Training ongoing (HRD classes offered each semester), Banner
Boost
• Human Resource System
– July 1, 2006 implementation (includes payroll, leave information)
• Student Info System (Billing/Receivables)
– July 1, 2007
AU ACCOUNTING & BUDGETING
Banner Basics
• Access to systems – “AU ACCESS” is web-based
with a single sign-on
• Two types of access – Banner Self-Service and
Banner Admin
• The AU Access portal provides calendar,
announcements, shortcuts to processing, policies
and procedures, and other information
• Many transactions can be processed electronically
– purchase requisitions, budget, etc.
• We are working toward being able to process
imaged documents
AU ACCOUNTING & BUDGETING
Finance System
• Accumulation of hundreds of thousands of
transactions in various funds, orgs, accounts
and programs allows AU to meet the
reporting needs for
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State of Alabama
Annual Financial report
Federal funds audit
And many more….
AU ACCOUNTING & BUDGETING
More Finance System
• Banner Finance
– Includes an accounts payable and purchasing function
– Grants module for sponsored programs/project tracking
– Fixed assets system for recording depreciation/Detail of
Capitalized Assets
– Ability to download financial information into
spreadsheets for additional reporting and monitoring
• Monthly and other reports delivered electronically
via E-Print. Other report options coming through
ARGOS reporting
AU ACCOUNTING & BUDGETING
More Finance System
• All financial information is captured in unique
accounts (Now referred to as FOAP’s in Banner)
• Where the money comes from, restrictions on the
use placed by outsiders and how it is spent all
influence the classification of dollars in the
Finance System
• Allows for budgeting, reporting and tracking
resources received and used
AU ACCOUNTING & BUDGETING
WHAT IS A FOAP?
• Fund – assets, liabilities and fund balances identified by
type (ex. Unrestricted base budget funds, plant funds,
restricted sponsored project fund)
• Org – revenue, expenditures and budget for a unique
organizational unit. Identifies Who is spending the funds.
• Account – five digits which identifies What type of
revenue, expense, asset, liability, etc.
• Program – identifies the function or purpose of expense
(instruction, research, etc.) AND A-21 classification of
expense (organized research, general administration, etc.)
AU ACCOUNTING & BUDGETING
Example
Fund
Org
Account
Program
101001
113600
70935
7000
Unrestricted Procurement & Supplies
Base Budget Payment
Services
Institutional
Support
expense
AU ACCOUNTING & BUDGETING
Self Service Banner
• Uses traditional web browser
• Easy to use and understand
• Transaction processing
– Use for purchase requisitions and budget transfers
– Approvals routed electronically
• Query
– Balances for year-to-date transactions and budgets available
– Only operating ledger – revenues, expenditures and budgets
• Overall, limited functionality
AU ACCOUNTING & BUDGETING
Banner Admin
• Special navigation is required – training is
critical
• Expanded functionality
– Vendor query
– Fund (General ledger) information
– Project basis accounts – construction and grant
accounts – gives project-to-date expenses and
revenues
– Query and reports – downloading available
Auburn University Budgeting
Role of Budget Services
AU Budget Process
AU ACCOUNTING & BUDGETING
Budget Services
• Auburn University’s annual financial plan is
expressed as an annual budget
• The office of Budget Services is charged
with the responsibility for the complete
Auburn University budget, including the
systems used to develop and track budgets,
for all divisions
AU ACCOUNTING & BUDGETING
Budget Process
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Budget Advisory Committee
Board of Trustees - tuition increases
Legislature - passes appropriation in April
Budget Preparation - usually late June through
September
• Currently using online budget development
system created by users and programmers at AU
• Typically an incremental process
AU ACCOUNTING & BUDGETING
Budget Process
• Individual colleges/schools and VP areas use the
combination of a Banner product, “Salary Planner”, and an
in-house developed system called “Stripes” to prepare the
annual budget.
• Budget Services balances and summarizes the budgets for
presentation and approval to the Board of Trustees
• New salaries are loaded into the Human Resource System
• Total budgets are uploaded into the Finance system
• New tools were utilized starting in the FY08 budget year
AU ACCOUNTING & BUDGETING
Budget Year
• October 1 is the beginning of the fiscal year
• September 30 is the end of the fiscal year
AU ACCOUNTING & BUDGETING
Budget Changes
• Budgets can be modified throughout the
year by processing budget changes online in
the Banner System (AU04)
• Instructions to web-based system found on
the Budget Office website:
www.auburn.edu/budget
AU ACCOUNTING & BUDGETING
Budget Carryover
• Unused Budget can be carried forward and
spent in future fiscal years
• Provides incentive
• More efficient/effective use of funds
AU ACCOUNTING & BUDGETING
Budget Carryover
• Reserve reporting is done annually to
summarize carryover and resources
available to each unit
• Units are encouraged to use existing
resources for one-time needs
MORE CHANGES
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Electronic pay advices
Internal control emphasis (SAS 112)
Enhanced reports
Imaging/workflow
New policies – signature authority, cellphone, etc.
QUESTIONS?