Financial Liaison Meeting

August 30, 2010

FISCAL YEAR END CALENDARand

PROGRAM CODES

Amy Douglas

Business Office

FY2010 Year-End Cutoff DatesYear end is quickly approaching and we would like to thank you for another

year of hard work. The Business Office has established the following deadlines to ensure transactions are entered in FY 2010:

VENDOR VOUCHERS• For guaranteed entry into the system, please submit to Procurement & Payment services (PPS-

311 Ingram Hall ) by Monday, September 27, 2010. All vouchers received after September 27th will be processed on a time available basis.

PURCHASE REQUISITIONS (PR’s)• PR's that do not require a bid must be received in PPS no later than Friday, September 17,

2010. PR's submitted after this date will be processed on a time available basis.• PR’s that require a bid must be received in PPS no later than Friday, August 20, 2010. • Purchase Change Orders with Vouchers for payment must be received in PPS not later than

Monday, September 20, 2010.• PR's that cannot be issued on FY 2010 funds should have that notation clearly referenced in the

Document Text.TRAVEL VOUCHERS• Must be received in PPS by Monday, September 27, 2010. Vouchers received after September

27 will be processed on a time available basis.PURCHASE CARD RECONCILIATIONS• Must be received in PPS by Wednesday, September 22, 2010.

INTERNAL TRANSACTION VOUCHERS (ITV) & DEPARTMENT ERROR CORRECTION FORMS (DEC)

• Must be received in Financial Reporting (321 Ingram Hall) by Friday, September 24, 2010. Documents received after this date will be processed on a time available basis.

• DECs (other than contract and grant funds) not processed in Fiscal Year 2010 will need to have budget transfers completed in Fiscal year 2011.

BUDGET CHANGE ORDERS• Must be completed with approvals by Wednesday, September 29, 2010.Accounts Receivable Reconciliations• We would like to remind the applicable units who are responsible for accounts receivable

to submit their• detailed accounts receivable as of September 30, 2009, along with the reconciliation to

the Banner• Funds/Accounts to Student Financial Services and Internal Audit by Friday, October 08,

2010.Inventory Listing• We would like to remind the applicable units who are responsible for inventory to submit

their detailed• inventory to Financial Reporting/Controllers office and Internal Audit by Monday, October

4, 2010.Service Centers• We would like to remind all Service Center Units to return the Fiscal Year 2011 Rate

Development Calculations to Financial Reporting by Tuesday, September 28, 2010.• Please contact Procurement and Payment Services at 4-7771 or Financial Reporting at

4-3600 if you have any questions.

Program Codes – Banner ResourceProgram Codes – Banner Resource

F O AF O A PROGRAMPROGRAM code descriptioncode description

• The following codes are based on financial accounting and reporting requirements as directed by the National Association of College and University Business Officers (NACUBO) and the Integrated Postsecondary Education Data System (IPEDS).

REVENUE:REVENUE:

• R100 – Revenue All revenue (income) classifications except Auxiliary Revenues

• X100 – Auxiliary Revenue All auxiliary revenues (income) except athletic revenues

• X200 – Athletic Revenue Only

athletic revenues (income)

INSTRUCTION EXPENSE:INSTRUCTION EXPENSE:

• 1000 – Sponsored Instruction expenseFormally organized instructional research expenditures, separately budgeted and accounted for and funded by external sources via contracts and grants.

• 1020 – General Academic Instruction expense

Expenses for formally organized instructional activities, for University credit, non-credit or Cost Sharing.

RESEARCH EXPENSERESEARCH EXPENSE

• 2000 – Sponsored Research-BasicExpenses for formally organized and separately budgeted Basic Research funded by external sources via contracts and grants. (Research type “Basic” must be provided bythe PI or Project Manager when the new FOAP is requested, and this program code will be a default linked to the fund.)

• 2002 – Sponsored Research-AppliedExpenses for formally organized and separately budgeted Applied Research funded by external sources via contracts and grants. (Research type “Applied” must be provided by the PI or Project Manager when the new FOAP is requested, and this program code will be a default linked to the fund.)

RESEARCH EXPENSE CONTINUEDRESEARCH EXPENSE CONTINUED::

• 2004 – Sponsored Research – DevelopmentalExpenses for formally organized and separately budgeted Developmental ResearchFunded by external sources via contracts and grants. (Research type “Developmental” must be provided by the PI or Project Manager when the new FOAP is requested, and this program code will be a default linked to the fund.)

• 2050 – Departmental Research expenseExpense for internally supported, non-competitive research. (Not considered organized research.)

• 2052 – Grant-in-Aid Research expenseInternally supported, separately budgeted, competitive research award expense.Organized research expense.

RESEARCH EXPENSE CONTINUED:RESEARCH EXPENSE CONTINUED:

• 2054 – Cost Share Research expenseInternally supported, separately budgeted research expense in support of externally funded programs, as required by written agreement.

• 2055 – Other Non-Sponsored Research expenseAll other internally supported research expenses.

PUBLIC SERVICE EXPENSE:PUBLIC SERVICE EXPENSE:

• 3000 – Public Service Sponsored expenseSeparately budgeted and accounted for restricted expenditures for Public Service contract and grant awards funded from external sources.

• 3010 - Public Service Non-Sponsored expenseInternally supported public service expense. (Outreach programs, conferences, program support, Cost Sharing)

ACADEMIC SUPPORT EXPENSE:ACADEMIC SUPPORT EXPENSE:• 4000 – Academic Support expense

Includes expenses to provide support services for the institution’s primary mission. Includes academic and graduate school dean’s offices, museums and galleries, academic support information technology and academic advising. (The Provost office is included in Institutional support and not in Academic Support.) Academic personnel development is also included, such as sabbaticals and faculty awards.

• 4010 – Constituency/Fund Raising expenseAny expense related to constituency development officers and/or dean’s office fundraising expenditures.

LIBRARY EXPENSE:LIBRARY EXPENSE:

• 5000 – Library expense

Any expense related to libraries located on AU and AUM campuses.

STUDENT SERVICES EXPENSE:STUDENT SERVICES EXPENSE:

• 6000 – Student Services expenseStudent services include the administration activities that provide assistance and support to the needs and interests of the students, including social and cultural development, counseling and career guidance, admissions, student records, and student health.

(AUM’s intercollegiate athletics programs are included in this category.)

INSTITUTIONAL SUPPORT EXPENSE:INSTITUTIONAL SUPPORT EXPENSE:

• 7000 – Institutional Support expenseThese expenses include central, executive-level activities concerned with the management and long-range planning for the entire University. These offices include the president, provost, chief business officer, chief development officer.

• 7002 – Information Technology Administrative SupportInformation technology support is normally allocated between Institutional support and Academic support, only.

INSTITUTIONAL SUPPORT EXPENSE INSTITUTIONAL SUPPORT EXPENSE CONTINUED:CONTINUED:

• 7003 – Communications & Marketing expenseThese expenses relate to the department of Communications and Marketing and University wide publications.

• 7004 - Development & Fund Raising expenseExpenses for activities to maintain relations with community, alumni, and other constituents, as well as conduct activities related to institution-wide development and fund raising costs.

• 7005 – Legal expense

OPERATIONS & MAINTENANCE EXPENSE:OPERATIONS & MAINTENANCE EXPENSE:

• 8000 – Physical Plant Administration expenseExpenses for administration and supervision of the operation and maintenance of physical plant facilities, and space management are included.

• 8001- Operations and Maintenance expenseThese expenses are normally incurred for janitorial and utility services, repairs and ordinary maintenance of buildings, furniture and equipment, care of grounds, security, disaster preparedness, safety, and hazardous waste management.

SCHOLARSHIP & FELLOWSHIP EXPENSE:SCHOLARSHIP & FELLOWSHIP EXPENSE:

• 9000 – Scholarship & Fellowship expense

Scholarship and fellowship expense from unrestricted or restricted funds.

AUXILIARY EXPENSE:AUXILIARY EXPENSE:

• A100 – Auxiliary expense

All auxiliary units expense, excluding athletics, and includes housing, dining, transportation, surplus property, information technology service centers.

• A200 – Athletic Auxiliary Expense

Expenses related to the intercollegiate athletic programs.

DEPRECIATION EXPENSE:DEPRECIATION EXPENSE:

• D100-Depreciation expense

This code is only used by Financial Reporting to record depreciation expense on capitalized assets.

AGENCY OPERATIONSAGENCY OPERATIONS::

• G100 – Agency Operations

Includes revenues and expense for any ancillary unit that has a close association with the University, and who is allowed to use our accounting system for their purpose. The University has no direct control over these funds, but they must be reported in the University’s financial statements.

OTHEROTHER

• M100 – Mandatory TransfersThis code is only used by Financial Reporting for cash transfers to fund debt service.

• N100 – Non-Mandatory TransfersThis code used by the central business office.

• P100 – Project ConstructionThis code is used when processing expenditures on building construction projects.

CONTRACTS & GRANT ACCOUNTING

Gina Bailey

Contracts and Grants Accounting

• New report for contract/grant funds

• A-133 supplement and adequate source documentation

FZOGITD – Grant Detail Report

FZOGITD – Grant Detail Report

• Will be in e-print at each month end• Will replace FRRGITD after 9/30/10• Retained from FRRGITD:

• PI, Sponsor, project period info, responsible department• Budget, current month expenditures, inception to date

expenditures, commitments, available balance• New information available:

• Indirect cost base and rate• Default Organization and Program Code vs. Actual Organization

and Program Code• Type of agreement (CR vs. FP; fed, fed-flow, non-fed)• Totals by budget pool

A-133 Supplement and Adequate Source Documentation

A-133 Supplement

• What is OMB Circular A-133?• Guide for auditors of federal programs• Issued by OMB; OIGs from each agency

contribute• Auburn has an annual A-133 audit

• This year there will be a focus on ARRA = ARRA Programs are “High Risk”

Adequate Source Documentation

• Source documentation – supports each expenditure recorded on a FOAP

• Should be sufficient without verbal explanation; the transaction should stand alone

• For contract/grant funds, source documentation may have to be provided to the sponsor before reimbursement is received

• Also used to determine allocability and/or allowability on contract and grant funds

Adequate Source Documentation• Common problems with contract/grant funds

• P-card reconciliations – missing receipts • P-card reconciliations – FOAP on receipt does

not match FOAP charged• ITVs for mileage do not contain mileage details or

the allocation method seems unreasonable• PSC invoices don’t contain enough information to

determine the service provided• An EPA audit earlier this year highlighted this problem.

C&GA had to obtain backup from department, itemizing exactly what service was provided

• Also noted in EPA audit, PSC was dated the same date as check to the individual = not a good practice

• Result – expenditures may not be reimbursed by sponsoring agency and become the department’s responsibility

Inadequate Documentation Examples

Inadequate Documentation Examples

Inadequate Documentation Examples

Inadequate Documentation Examples

Effort Certification

Robert Campbell and Contracts & Grant Accounting

42

Current Effort Certification

• Program Creates Reports (NZREFRT)• User goes to ePrint• Very labor intensive

43

Effort Certification Application

• SSB• Banner Security• Single Sign-on• Menu Item

44

Overall View

Source: Iconseeker.com, wowvectors.com, iconarchive.com, iconsmysitemyway.com, keymarkhealthinsurancesolutions.com

PI, Dept Head, etc.

FYI

Stored Electronically

Contacts Notified

45

Certify Effort Reports

• Allow Principal Investigators to certify their funds

• Allow Department Heads to certify their employees or organizations

• Allow authorized employees to certify their own labor distributions

• Allow FYI contacts to view reports

46

Approval Queues

• Principal Investigator derived from Banner• Co-Principal Investigator derived from Banner• Department Head derived from Master List• Department Contact, PAR Contact, SWT

Contact also from Master List• After all certify, the document is certified by

Contracts and Grant Accounting• Notification still in development

47

Effort Certification Control

• Controlled per FOAP line• Controlled per Association with Certification• Controlled per Certification Period

Parameters

48

Effort Certification ApplicationOutcomes

• Increased Rate in Effort Certified anticipated• Ability to Track an Effort Certification

Document• Immediate Information to all Stakeholders

involved in the Effort Certification• Retrieval of Archived Documents

49

Status

• Oversight Committee Approved• Prototype In Development• Approval Queue In Development• Major Effort Certification contacts consulted

in focus group – very good reception• Feedback from PI and Department Head –

in progress

50

Brief View

51

Main Page

52

PI - Certify all Participants on a Grant

53

Alternative View for PI

Effort Certification Application 54

Department Head View

Effort Certification Application 55

Overall Tab

Effort Certification Application 56

Person Search

57

Certify Per Individual

58

Person’s Information

Status for Document

Certify

Warnings Per FOAP lineRouting Queues

Line Certification

59

Salary Wage TransfersIn Development

Salary Wage TransfersIn Development

60

Questions

61

PPS Update

Shawn Asmuth

PPS Updates

• Preferred Vendor Contract Update• HP Contract • Travel Policy Updates• E- Voucher System

Budget Services Update

Budget Services

• Budget Update• Administration finalizing review• Should be going to print today

• Restricted Transfers• Stricter guidelines• Pay expenses out of restricted funds if allowed

• Carryover Review• Current year carryover will done the same as in the past• FY11 carryover will be first year of carrying over fringe

benefits• Deficit balance clear up

Stimulus Update

Cindy Selman

EPAFs for FY11 – Stimulus SFSF

• Time to transition to FY11 stimulus

• If you did not modify the fund code on SFSF employees on salary planner during the budget cycle, you will need to complete an LDCHG (Labor Distribution Change) EPAF.

• EPAFs are to be entered between Sept 30 and Oct 6

• Effective Dates:• Bi-weekly effective date will be 9/26/2010• Effective date on all other employee types will be 10/01/2010

• Reports will be run showing all personnel charged to stimulus SFSF during this period (for validation)

FUND Codes for SFSF for FY11

• Division 1 (Auburn Campus) 111099• Division 2 (Montgomery) 112099• Division 3 (AAES) 113099• Division 4 (ACES 114099

Competitive grants will continue to use fund codes specific to each grant

Employees on State Fiscal Stabilization Funding

• Continuation of payroll certification on quarterly basis is required

• Full time equivalents – no split funding (exceptions exist for Honors College faculty)

• Division 1 should be GTAs where possible (no research assistants) or part-time faculty as directed by Provost. Some full time faculty are charged by exception (ex Honors College)

• Divisions 2-4 Full time equivalents (FTE = 1)

Funding Benefit from Stimulus FY10-11

State Fiscal Stabilization Funding (Dept of Education)

• Auburn Campus $33,805,506• Montgomery Campus $ 4,209,170• Agriculture Exp Station $ 6,502,090• Cooperative Extension $ 7,250,052

Total SFSF $51,766,818

Project Listing Division 1 FY10 Amount FY11 Provost & Other

Allocations

Auburn Main Campus

a. Provost Area Salaries & Benefits $ 9,145,800 $ 11,409,753

b. Grad Opportunity Program $ 150,000 $ 150,000

c. Honors College $ 974,200 $ 1,300,000

d. Library Elsevier Contract $ 1,230,000 $ 1,500,000

Information Tech Wireless $ 1,000,000

OIT Increase Capacity Learning Systems $ 200,000

OIT Upgrade Classrooms Media $ 755,000 $ 500,000

Academic/Student Information Storage/Backup Capacity/ Data Center Equipment/Security $ 500,000

Public Safety -cameras, defibrilators, emergency alert….. $ 780,000

Enrollment Management salary buffer $ 118,000

Chemical Storage Inventory System $ 873,000

Public Safety Radios (fed reqmt) and final cameras $ 300,000

Night Student Shuttle - Toomer's Ten $ 400,000 $ 370,000

Faciltiies Renovation projects (roofing, carpet, louvers) $ 2,149,753 $ -

Total Main Campus $ 16,902,753 $ 16,902,753

Auburn Montgomery

Salaries and Benefits $ 1,480,932 $ 1,519,720

Computer Equipment/Backup System $ 342,092 $ 263,410

Education & Operational Costs $ 91,049 $ 103,707

Facilities-AUM Housing $ 190,512 $ 217,746

Total Montgomery Campus $ 2,104,585 $ 2,104,585

AAES

Salaries & Benefits $ 3,251,045 $ 3,251,045

Total AAES $ 3,251,045 $ 3,251,045

ACES

Salaries & Benefits $ 3,625,026 $ 3,625,026

Total ACES $ 3,625,026 $ 3,625,026

TOTAL SFSF $ 25,883,409 $ 25,883,409

Stimulus Competitive Grants

• DoE (Dept of Energy) 461,622

• DOI (Dept of Interior) 229,773

• DOT (Dept of Transportation) 112,972

• DOE (Dept of Education (FWS)) 223,196

• EPA (Envr Protect Agency) 37,997

• NASA (Natl Aero & Space Agency) 80,000

• NIST (Natl Inst of Standards & Tech – CASIC Bldg) $14,427,075

• NEA (Natl End for the Arts) $ 25,000• NIH (Natl Institute of Health) 1,718,942• NSF (Natl Science Foundation) 3,518,315 • NSF (Corley Annex) 4,623,008 • USDA (Dept of Agriculture) 100,000

Total Stimulus Reported $ 77,324,718

• Vendor Contracts (not reported by AU) 494,206 +

GRAND TOTAL STIMULUS $ 77,818,924 +