Budget Revision Training

Presented by

Budget OfficeMagda Rangel, Financial Analyst

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Budget Office Website: www.utpa.edu/budget

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Budget Office Contacts

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Topics to be covered

Background Information• GL Accounting String• Funds Checking• GL Funds Inquiry• Fiscal vs. Rollover Accounts• Budget Revisions Needed• Budget Revisions Not Allowed• Drill Down Procedure

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GL Accounting String (aka “Accounting Key Flexfield”)

Accounting Flexfield sections

Example: Budget Office operating expense line

10.G0000.30200.100BUDG00.53001.000060

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GL Accounting String

Fund10.G0000.30200.100BUDG00.53001.000060

Ranges:10 – Educational & General (E&G)20 – Designated30 – Auxiliary40 – Restricted50 – Loans60 – Endowment70 – Plant80 – Agency

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GL Accounting String

Funding Source10.G0000.30200.100BUDG00.53001.000060

Examples:G0000 – E&G Unspecified (G1xxx is “Fund 1”; G2xxx is “Fund 2”)D1000 – DesignatedD2000 – Service DepartmentsD4000 – Indirect Cost RecoveryA1000 – AES Student ServicesR1000 – Federal GrantR5000 – Private GrantZ2000 – Agency Scholarship

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GL Accounting String

Organization10.G0000.30200.100BUDG00.53001.000060

Ranges:1xxxx – President2xxxx – Academic Affairs/Colleges3xxxx – Business Affairs5xxxx – Student Affairs6xxxx – Information Technology7xxxx – University Advancement

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GL Accounting String

Project Value10.G0000.30200.100BUDG00.53001.000060

Examples:“1” – E&G (State) accounts ►“21” – Designated accounts“22” – Service Departments“24” – Indirect Cost Recovery“310” – AES Student Services“41” – Federal Grant“45” – Private Grant“82” – Agency Scholarship

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GL Accounting String

Object10.G0000.30200.100BUDG00.53001.000060

Examples:40001 – Revenue Budget51101 - Wages53001 – Operating Budget53005 – Materials and Supplies53010 – Utilities53025 – Printing and Reproduction57001 – Travel58500 – Capital Asset Purchases

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GL Accounting String

NACUBO10.G0000.30200.100BUDG00.53001.000060

Examples:000010 – Instruction000020 – Research000030 – Public Service000040 – Academic Support000050 – Student Services000060 – Institutional Support

000070 – Operation & Maintenance of Plant000080 – Scholarship000090 – Auxiliary 000100 – Depreciation & Amortization000110 – Agency000000 – Used only for Revenue & Transfers

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Funds Checking

• Oracle performs absolute funds checking at the non-labor expense summary (“60000” object).

• For non-sponsored activities, budget changes between non-labor expense pools belonging to the same project are not required.

• Must exercise care that overall account balance (“99999” summary) does not go negative due to revenue or labor expense deficits.

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Budgeted Object Codes Summary Objects

▼ ▼ ▼ ▼

40001Revenue    40000

99999

44600Transfer In (Intrafund)    

44626Transfer In (Interfund)    51001Single Incumbent Salaries 51000

52999

51002Faculty Salaries    51003Longevity Pay    51010Pooled Salaries    51101Wages   5110052001Benefits   5200053001Operating Expense   53999

60000

53425Transfer Out (Intrafund)    

53430Transfer Out (Interfund)   54001Books   5499955001Scholarship   5599957001Travel   5799958001Capital Outlay   5899959001Merchandise for Resale   59999

GL FundsInquiry

Budget – Encumbrance – Actual = Funds Available• Account balance = funds available in “99999” summary line.

• A negative ( ) in funds available column is always a deficit, even in revenue lines.

• To view current account balance: Select “Revised Budget”, “Year to Date Extended” amounts, “All” encumbrances, and latest open period.

• Hint: First select “Summary” account level to get overview of account, then drill down into detail accounts, periods, and transactions using the Tools menu.

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Fiscal Accounts• E&G (except HEAF) and Auxiliary• Funded by expense budget• Easy to transfer between accounts (just move budget)• Unencumbered balance lapses at fiscal year-end

GL Funds Inquiry (Budget – Encumbrance – Actual = Funds Available)

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Account Budget Encumbrance ActualFunds

Available

Operating (53999) 800.00 50.00 150.00 600.00

Travel (57999) 200.00 0.00 100.00 100.00

Non-Labor Total (60000) 1,000.00 50.00 250.00 700.00

Account Total (99999) 1,000.00 50.00 250.00 700.00

Rollover Accounts• Designated (start with “2”), Restricted, Plant, Agency, HEAF• Self-funded by revenues, transfers-in and/or carryover balance • Transfer between accounts by actual funds transfer, not by moving budget• Balance before encumbrances carries forward to next year (non-lapsing)• Account is fully funded when revenue summary (49999) is non-negative.

GL Funds Inquiry (Budget – Encumbrance – Actual = Funds Available)

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Account Budget Encumbrance ActualFunds

Available

Revenue (49999) (1,000.00) 0.00 0.00 (1,000.00)

Operating (53999) 800.00 50.00 150.00 600.00

Travel (57999) 200.00 0.00 100.00 100.00

Non-Labor Total (60000) 1,000.00 50.00 250.00 700.00

Account Total (99999) 0.00 50.00 250.00 (300.00)

Rollover Accounts (continued)

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Account Budget Encumbrance ActualFunds

Available

Revenue (49999) (1,000.00) 0.00 (1,200.00) 200.00

Operating (53999) 800.00 50.00 150.00 600.00

Travel (57999) 200.00 0.00 100.00 100.00

Non-Labor Total (60000) 1,000.00 50.00 250.00 700.00

Account Total (99999) 0.00 50.00 (950.00) 900.00

Account Budget Encumbrance ActualFunds

Available

Revenue (49999) (1,000.00) 0.00 (800.00) (200.00)

Operating (53999) 800.00 50.00 150.00 600.00

Travel (57999) 200.00 0.00 100.00 100.00

Non-Labor Total (60000) 1,000.00 50.00 250.00 700.00

Account Total (99999) 0.00 50.00 (550.00) 500.00

◄ $200 revenue shortage

(after $800 received)

$200 ►revenue surplus

(after $1,200 received)

When is a budget revision needed?

• To set up a new budget• To align expenditures with actual or anticipated revenues• To fully fund labor costs

• Position Changes• Benefits and Longevity (non-E&G accounts)

• To address or avoid funds checking failures in non-labor expenses

• To transfer funds between two or more accounts

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Which revisions are not allowed?

• Transfer of funds into or out of the following E&G subgroups:

• Transfers which cross fund groups (with a few exceptions)Example: Indirect Cost Recovery funds may not be moved to an E&G account.

• Transfers which would violate the purpose of an account.Examples:• Endowment income restricted to payment of scholarships may not pay travel.• Fee revenue may not be used for purposes outside of the fee justification.

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Prefix E&G SUBGROUP Prefix E&G SUBGROUP

135 Research Enhancement 165 Advance Technology

145 Incentive Funds 180 Special Lines / State Transfers

160 HEAF 185 Institutional Enhancement

Drill DownProcedure

1. Place cursor on summary line you wish to examine. Next, select Tools and select Detail Accounts

2. Place cursor on the detail account line you wish to examine. Select Tools and select Period Balances

3. Place cursor on month of interest. Select Tools and select either Budget Lines, Actual Lines, or Encumbrance Lines based on type of inquiry.

For additional information, refer to Accounting for Your Project in Oracle (Reconciliation Guide) available at the Accounts Control website: http://portal.utpa.edu/utpa_main/dba_home/comptroller_home/accounts_control_home/

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Any Questions?