Financial Management Program

Revenue and Expenditure

Analysis Presented by

Tracy Arner, CPA

tarner@uga.edu

1

EXPENDITURE ANALYSIS –

THE BIG PICTURE

2

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

5

Budget Comparison Reporting

6

Budget Comparison Report

7

Budget Comparison

Report Results

8

Budget Comparison Report Results

9

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

10

Using Monthly Data for Projection

11

Using Monthly Data for Projection

12

Using Monthly Data for Projection

13

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

14

Compare Revenue to

Projected Expenditures

15

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.

16

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

17

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

19

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

20

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

21

Revenue (REVEST) Ledger Group

REVEST_BD

Budgeted Revenues

REVEST_RC

Revenue Estimate Recognized

REVEST_CO

Revenue Estimate Collected

22

Categories of Fund Sources

• Federal – grants, entitlements

• State – annual appropriation

• Other – intergovernmental contracts

between agencies, donations, rental

income, charges for services

23

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

24

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

25

Obtain Allotment TeamWorks

Account Revenue Detail • TeamWorks Query

0GL076_4092X_TBL_EXTRACT

26

Results

27

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)

28

• 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

29

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

30

Journal Entry Screen

31

32

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

33

Caution

• Result of entries in which Actuals,

Recognize and Collect were not

appropriately selected

34

Caution

ANALYZING OTHER STATE

FUND SOURCES

35

Step 1 - Generate a GLS4008X

Program Budget Comparison Report

36

SAO GLS4008X Report

37

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

38

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

40

Query Results Note - Query

on 90003 fund

source

returned $0

41

Step 4 - Generate Details

Behind OTH2 Fund Source

42

Obtained revenue

account numbers

from SAO Chart of

Accounts

Fund Sources from

Fund Source Query

43

Total OTH2

$1,368,108.70

which agrees

to GLS4008X

OTH2 total

44

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

45

Step 5- Review difference in Revenue

Recognized and Revenue Collected

46

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

47

Courses

• Budget and Finance Analyst Series

• Accounting Series

• Basic and Advanced Excel

48

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