Financial Management Program Revenue and Expenditure Analysisgeorgiafmc.org/annual...

Financial Management Program

Revenue and Expenditure

Analysis Presented by

Tracy Arner, CPA

tarner@uga.edu

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EXPENDITURE ANALYSIS –

THE BIG PICTURE

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Learning Objectives

At the end of this lesson you should be able to –

• Explain why expenditure analysis is important

• Generate a Budget Comparison Report

• Project agency expenditures for remainder of year

• Review Budget Comparison Report to determine potential spending issues

3

Expenditure Analysis

and Projection • Collecting expenditure trend information

and comparing it to current year data is a

method for identifying budgetary issues

prior to year end

• Data may be monitored from month to

month to identify spending pattern

changes that may be investigated before a

spending problem escalates

4

Tools Needed

• Budget Comparison Report- (BCR)

BDS4006X

• Available in TeamWorks under the

Commitment Control module

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Budget Comparison Reporting

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Budget Comparison Report

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Budget Comparison

Report Results

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Budget Comparison Report Results

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If this were a rents or contracts expense the high

monthly expense may relate to encumbrance of an

annual contract. Need to understand agency’s

expenditure pattern.

Budget Comparison Report Results

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Using Monthly Data for Projection

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Using Monthly Data for Projection

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Using Monthly Data for Projection

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Exceptions

• Some expenditure classes cannot be

projected based on previous months’

average expenditures

– Motor vehicle purchases

– Equipment purchases

– Some contracts

• Use of judgment in conjunction with

agency discussions required for these

projections

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Compare Revenue to

Projected Expenditures

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Data from

0BD027A

PBCR

Review YTD Expenditures by

Fund Source YTD

Expense on

track at 6

months

YTD Expense

High. Could be

end of grant.

Ask questions.

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Next Steps

• Review revenues budgeted and determine

whether amounts are in line with previous

budget years and on track for current year

collections (0BD027A Query)

• Programs may project a deficit because

Federal or Other Funds have not been

amended into the budget

• Use the GL076 query to get actual

amounts for further analysis

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ANALYZING REVENUE

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Learning Objectives

At the end of this lesson you should be able

to –

• Recite why analysis of REVEST_RC and

REVEST_CO is important

• Recall categories of fund sources

• Recount best practices related to federal

fund sources

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Learning Objectives

• Recall the relationship between

REVEST_CO and REVEST_RC for State

Allotments

• Recite how to analyze Other Funds

• List suggested actions based on Other

Funds analysis

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Tools Needed

• 0GL076_4092X_TBL_EXTRACT

TeamWorks Query

• 0GL076E_4092X_TBL_FUND_SRC

• Program Budget Comparison Report

GLS4008X

• Annual Operating Budget

• 0BD019C_ANY_FUND_SRC_TREE

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Revenue (REVEST) Ledger Group

REVEST_BD

Budgeted Revenues

REVEST_RC

Revenue Estimate Recognized

REVEST_CO

Revenue Estimate Collected

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Categories of Fund Sources

• Federal – grants, entitlements

• State – annual appropriation

• Other – intergovernmental contracts

between agencies, donations, rental

income, charges for services

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Federal

Best Practice

• Budget should include funds that are supported by a grant agreement

• Annual Operating Budget federal funds amount is not always supported by actual grant awards

• Caution should be exercised in reviewing federal funds recognized and collected

• Standard Form 425 can support federal funds amended into budget

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State

• During the year, REVEST_RC and

REVEST_CO should equal as this relates

to allotments

• May be small timing difference between

recognition and collection

• Should the difference remain, determine if

the allotment was posted to an incorrect

funding source

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Obtain Allotment TeamWorks

Account Revenue Detail • TeamWorks Query

0GL076_4092X_TBL_EXTRACT

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Results

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General Principles

• Review REVEST_RC and REVEST_CO

• If revenue is being recognized but not

collected, budget issues may occur

– Agency can only spend funds to the extent it

is billing and collecting revenues

• All funds an agency plans to spend should

be amended into budget (continued on next slide)

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• Support must be provided to OPB when

federal and other fund sources are

amended into budget

– Federal award letter or Accounts Receivable

support

• OPB analysts monitor overall revenues

and may question revenues significantly in

excess of budgeted funds

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General Principles

Caution

• When entering journal entries to balance

revenue by program and fund source, it is

very important to determine whether both

REVEST_RC and REVEST_CO ledgers

should be affected by the entry

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Journal Entry Screen

31

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Journal Entry Screen

• When entering a manual journal entry,

select Commitment Control

• Default is Actuals and Recognized

– If amount adjusted has not been collected,

this is the appropriate selection

• Actuals, Recognize and Collect button

should be selected if the amount adjusted

has been both recognized and collected

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Caution

• Result of entries in which Actuals,

Recognize and Collect were not

appropriately selected

34

Caution

ANALYZING OTHER STATE

FUND SOURCES

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Step 1 - Generate a GLS4008X

Program Budget Comparison Report

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SAO GLS4008X Report

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Negative amount

indicates either incorrect

fund source recognized

or additional fund

sources have not been

amended into budget

Step 2 – Generate BCM_Fund_SRC

Query

• Provides fund source codes to use in

general ledger query

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BCM_Fund_SRC Query Results

39

Step 3 – Query General Ledger

Fund Sources

Obtained Other

Funds revenue

account numbers

from SAO Chart of

Accounts

Fund Sources from

Fund Source

Query

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Query Results Note - Query

on 90003 fund

source

returned $0

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Step 4 - Generate Details

Behind OTH2 Fund Source

42

Obtained revenue

account numbers

from SAO Chart of

Accounts

Fund Sources from

Fund Source Query

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Total OTH2

$1,368,108.70

which agrees

to GLS4008X

OTH2 total

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OTH2

• Based on the information on the previous

slide, the OTH2 funds recognized should

be amended into the Annual Operating

Budget (AOB) if expenditure of funds is

anticipated

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Step 5- Review difference in Revenue

Recognized and Revenue Collected

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Should

determine why

difference in

recognized and

collected.

Suggested Actions

• Review collection efforts for recognized

but unbilled amounts

• Ensure proper posting of revenue to

program and fund source

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Courses

• Budget and Finance Analyst Series

• Accounting Series

• Basic and Advanced Excel

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