COLLEGE OF ARTS AND SCIENCESFISCAL AFFAIRS ADMINISTRATOR

BACK TO BASICS TRAINING

April 20, 2006

AGENDA

• 12:00 – 12:30 Lunch & Networking• 12:30 – 2:00 Introduction & University –

Wide Information & Policies• 2:00 – 2:10 Break• 2:10 – 3:00 Arts & Sciences Policies; College

Reference Information & Budgeting Practices• 3:00 – 4:00 College Policies & Procedures –

Expenditure Control, Auditing and Reporting• 4:00 – 4:30 Q&A, Assessment, Topics for

Future Training

Why You?

Provide a frame of Reference for positionClarification of responsibilities as senior

department or program administrator and/or supervisor vis-à-vis– Detailed knowledge– Training for faculty & staff– Accountability

What does Fiscal Affairs Administration Include?

Budgeting

Auditing

Planning

Expenditure Control

Reporting

Planning

As the department or program manager and/or primary fiscal administrator you are in a unique position to provide critical information to your chair, faculty, or director in support of planning initiatives.

Information you will need to acquire

• Institutional, College and Department or Program Mission

• Operational Priorities

• University & Departmental Trends

• Expenditure Levels and Patterns

• Unmet Needs

Knowledge you provide to others

• Resource Availability

• Limitations or Restrictions on Resources (multiple accounts and purposes)

• How funds are currently being used

• Projection of future needs & costs

• Fiscal impact of anticipated or proposed changes

University Reference Information

• Business & Finance Division Organization Chart

• UM Website Policy Manuals

• Budget Account Types

• Object Code List

• Signatory Authority Policy

University Policies are now Web-Based

Financial Accounting & Reporting (Controller’s Office)

Payroll (Treasurer’s Office)

Non-Payroll (Treasurer’s Office)– Travel – Petty Cash

University Policies (cont’d.)

General Business Policies – Contracts– Use of Facilities

Purchasing– Ariba, UM e-Net

Risk Management

Facilities Administration

University Policies (cont’d.)

RESEARCH-L@LISTSERV.MIAMI.EDU

Research Administration (Provost’s Office)• Pre-award Assistance – UMPARA website• Proposal Processing PoliciesSponsored Programs (Controller’s Office)• Expenditure Compliance• Post-Award AdministrationUniversity Advancement Division

Budgeting

A budget should reflect the planning and priorities of the department, program or initiative it is intended to support. It should clearly and concisely outline the funding and costs related to the endeavor. As a fiscal administrator, you are responsible for translating programmatic information into University of Miami Budget Format

College Information How are U-Budgets Funded

What is a U-Budget• Permanent vs. OTO FundingSalary Line item Funding Practices• Vacant Lines• New Hires (faculty, non-faculty)• Annual Merit Process• Centrally Funded Recurring Items – TA’s,

PT/OT

College Information How are U-Budgets Funded

(cont’d.)

Operational Funds (B/C)

• Permanent Lump Sum Allocation from Dean, reallocated by Dept (fixed vs. discretionary)

• Permanent Annual Adjustments

• Special Request (Perm)

• International Travel Central Fund

What expenses are covered by the departmental or program budget?

Most commonly:• Undergraduate Student Assistants or CWSP students• Phone service (equipment and line costs)• Long distance & voice mail costs• Clerical and technical supplies• Faculty professional travel• Postage, FEDEX, • Copy machine rental, per copy charges/supplies (new contract)• Student lab/studio consumables• Equipment maintenance and repair• Other teaching, research, service or recruitment expenses at

discretion of chair• Special Events• Research-related F&A expenses (more later)

What’s not in your B/C budget?

• Major capital equipment costs

• Port/Wireless Fees

• Periodic replacement of computers

• New Faculty Recruitment & Start-up Funds

• Student Scholarship or Award funds

What are “F & A” Accounts?

“Facilities and Administration” expenditure accounts were created in several departments to track expenses directly related to funded sponsored program activities that cannot be charged to grants.

Unallowable costs may include clerical supplies, postage, staff support, etc.

How are F&A Accounts Funded?

• Provost Allocations – Some departments have received allocations based on documented needs associated with specific (new) grants

• Department reallocation – When no central funding has been provided, departments must cover expenses in these accounts from available departmental sources.

If no funding, why have an F& A Account?

• Allows department, college & university to track such expenses and include them in overhead cost calculations.

• Provides documentation for request to supplemental funding.

• Summer 2006 Survey.

How are revenue-related accounts managed?

• Purpose: support of programmatic activities (J.H. Ring Theatre, PSY Clinic) or Service (recharge) Center activities.

• Revenue estimate & expenditure budget prepared by department or program as part of budget process.

• Must be self-sustaining, i.e., expenditures limited to actual revenue/funding available.

• Fees for Service Centers must have prior approval of Dean’s Office and Controller’s Office.

What are Designated & Restricted Accounts

• Designated Accounts – Funds in these accounts may be spent at the discretion of the authorized signor as long as consistent with the general intent of the account.

• Restricted Accounts – Funds in these accounts must be spent only for the specific purpose as defined by the donor. The most typical type of restricted account is the scholarship account.

How are Designated & Restricted Accounts Managed?

• Although balances in these accounts roll forward at the end of the fiscal year; they must end the year ‘in the black.’

• Estimated annual revenue in these accounts is based on prior history and does not include ‘roll-over’ funding.

• Departments may be asked to provide revenue estimates during the budget preparation process.

• Fund sources include: ‘banked’ surpluses from prior years, gifts & annual endowment income distributions.

• Budgeted expenditures are projected to ‘match’ estimated revenue, but actual expenditures may not exceed actual revenue plus roll-over funds.

Expenditure Control

The financial administrator is responsible for insuring that expenditures are incurred against the appropriate account and object code and that they comply with university, college and departmental policies. (S)He must develop and implement appropriate practices within his(her) area to insure compliance.

College Policies (cont’d.)

Supplemental expenditure policies may be established by the dean, vice dean, department chair, program director account principal investigator and/or relevant faculty.

College Policies (cont’d.)Signatory Authority

– The primary authorized signor is responsible for the prudent management of an account.

– The chair, director or P.I. may delegate signatory authority to appropriate administrators, except that an authorized signor may not also be responsible for reconciliation of the account.

– Signature approving a financial expenditure also confirms that the expenditure is reasonable, appropriate to the account and in compliance with university and/or funding source regulations.

College Policies (cont’d.)

• The fiscal administrator is responsible for – insuring that individuals involved with financial

or expenditure paperwork are aware of (and have access to) all relevant policies and receive appropriate training.

– insuring that prior to signature, authorized signors are aware of any issues related to an expense which may require a written justification or explanation to accompany the document.

College Policies (cont’d.)

• To this end, the fiscal administrator should recommend appropriate internal policies and practices for:– Training of new faculty, staff and students– Paperwork flow to insure review for

completeness, accuracy and compliance– Paperwork flow for approvals– Fiscal paperwork file management

College Policies (cont’d.)

• Expenditure Paperwork Training – legibility, accuracy, completeness, compliance, documentation– BERFs (new template)– UM e-net (Ariba); Approval Loops (new

template)– P-Card documentation (new template)

Monitoring of Expenditures

• Monthly reconciliation of R90’s (using RDS not DMAS)

• Assign responsibility for corrections.

• Who to call for mistakes.

• How to reallocate expenses (journal entries)

Monitoring & Reallocating Available Funds

• When to use a fund transfer rather than expense reallocation.

• Transfer of Funds U-budget accounts (F8)

• Transfer of Funds Designated & Restricted Accounts (Journal entries)

• One-time-only vs. Permanent

Requesting Reimbursement

• From Dean’s Office -- See Policy– Documentation required– Approvals required– When to use a F8 & when to use a JE

• From Provost – similar procedure, send via Dean’s Office.

Reporting

The fiscal administrator is responsible for insuring that the authorized signors and their supervisors within the department receive regular and accurate summaries of expenditures and fund availability to include:

• A monthly summary of R90’s expenditures vs. budget• Projection of known and/or estimated expenses vs.

budget for the remainder of the fiscal (grant) year• Identification of problems or opportunities identified as

part of the analysis process.• Maintenance of data needed for annual reports, planning

and assessment purposes.

Auditing

Within a given department or program, there may be several individuals with fiscal management responsibilities. It is the responsibility of the department manager and/or fiscal administrator to conduct periodic audits to determine:

• Use of appropriate fiscal management practices • Compliance with policies and procedures• Expenditures are appropriate to purpose and

accounts to which they are charged.• Chairs are required to certify to such controls

annually.

Sponsored Programs Fiscal Administration

Within the College, senior administrators have been designated to assist departments with sponsored program issues:

• Arts & Humanities – Judy Busch

• Life & Physical Sciences – Tracy Ehrlich

• Social & Behavioral Sciences – Richard Williams

Basic Budgeting for Sponsored Accounts – Pre-Award

• The proposal narrative, budget & budget narrative should be checked by the department’s fiscal manager before the chair signs the proposal transmittal form.

• When appropriate, the Cost-Share & Matching Funds form must be attached, include all cost-share or matching commitments & identify the funding source(s).

• The Proposal Transmittal Form and related attachments must be signed by the chair & appropriate vice dean before they are sent to Research Administration for review & processing.

• For assistance with pre-award administration issues, refer to the University’s UMPARA website.

Basic Budgeting for Sponsored Accounts – Post-Award

• All sponsored program (grant) accounts are created by the Office of Sponsored Programs Administration upon receipt of an award notice

• If the award notice is delayed, an account may be requested by the department under ‘guarantee.’

• Fiscal administrators should review the budgets as created to be sure that they comply with award allocations.

• When necessary an IPAR form should be used to correct or revise budget allocations.

THE END

….FOR NOW