financial management program revenue and expenditure analysisgeorgiafmc.org/annual...
TRANSCRIPT
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Financial Management Program
Revenue and Expenditure
Analysis Presented by
Tracy Arner, CPA
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EXPENDITURE ANALYSIS –
THE BIG PICTURE
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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
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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
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Tools Needed
• Budget Comparison Report- (BCR)
BDS4006X
• Available in TeamWorks under the
Commitment Control module
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Budget Comparison Reporting
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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
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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
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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
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Categories of Fund Sources
• Federal – grants, entitlements
• State – annual appropriation
• Other – intergovernmental contracts
between agencies, donations, rental
income, charges for services
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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
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Obtain Allotment TeamWorks
Account Revenue Detail • TeamWorks Query
0GL076_4092X_TBL_EXTRACT
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Results
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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)
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• 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
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General Principles
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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
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Journal Entry Screen
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Journal Entry Screen
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• 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
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Caution
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• Result of entries in which Actuals,
Recognize and Collect were not
appropriately selected
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Caution
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ANALYZING OTHER STATE
FUND SOURCES
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Step 1 - Generate a GLS4008X
Program Budget Comparison Report
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SAO GLS4008X Report
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Negative amount
indicates either incorrect
fund source recognized
or additional fund
sources have not been
amended into budget
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Step 2 – Generate BCM_Fund_SRC
Query
• Provides fund source codes to use in
general ledger query
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BCM_Fund_SRC Query Results
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Step 3 – Query General Ledger
Fund Sources
Obtained Other
Funds revenue
account numbers
from SAO Chart of
Accounts
Fund Sources from
Fund Source
Query
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Query Results Note - Query
on 90003 fund
source
returned $0
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Step 4 - Generate Details
Behind OTH2 Fund Source
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Obtained revenue
account numbers
from SAO Chart of
Accounts
Fund Sources from
Fund Source Query
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Total OTH2
$1,368,108.70
which agrees
to GLS4008X
OTH2 total
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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
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Step 5- Review difference in Revenue
Recognized and Revenue Collected
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Should
determine why
difference in
recognized and
collected.
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Suggested Actions
• Review collection efforts for recognized
but unbilled amounts
• Ensure proper posting of revenue to
program and fund source
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Courses
• Budget and Finance Analyst Series
• Accounting Series
• Basic and Advanced Excel
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