Financial Management Program
Revenue and Expenditure
Analysis Presented by
Tracy Arner, CPA
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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
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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
10
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
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
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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
25
Obtain Allotment TeamWorks
Account Revenue Detail • TeamWorks Query
0GL076_4092X_TBL_EXTRACT
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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
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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
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