the budget process understanding the basics of the budget process at asu
TRANSCRIPT
The Budget Process
Understanding the Basics of the
Budget Process at ASU
Budget Office Functions and Responsibilities
• Financial Planning
• Legislative Appropriation Request
• Operating Budget
• Capital Budget
• Budget / Accounting Reconciliation
The Budget Process
• Putting all the pieces together
Expense
POSN
Orgn
Program
Acct
Benefits
Revenue
Fund
Agenda
• Budget Basics
• What is a FOAP?
• Financial Monitoring: Reconciling
and Forecasting
• The Budget Adjustment Process
Budget Basics
What is a budget?
• A budget is a plan or spending authority
• Budget is not another word for cash
Budget Definition
A financial plan that sets forth the
resources necessary to meet a set of
goals (departmental, college, campus) for
a certain period of time.
Two Parts to Every Budget
1. Sources− State Appropriation− Student tuition and fees− Self-generated revenue in auxiliary units
or self-supported designated funds
− Cash transfer IN from a different FUND group
2. Uses− Salaries and benefits− Operating expenses− Travel− Utilities
Budget Cycle
Planning-Develop goals, objectives
Development-Estimate cost of attaining each goal-Project revenues
Implementation-Record budget in Financial System
Monitoring-Compare budget to actual expense-Investigate variances
Control-Take corrective action
Budgeting Practices by Fund Group
• E&G Funds, include Funds 0010, 0018, 0075 & 0090
− Sources of funds include State Appropriations, Tuition A and Other Fees identified as State funds by the Texas Education Code
− Uses of funds must follow State Guidelines and Regulations
− Budget = Spending Authority
• Designated Tuition Fee, Fund 0100− Sources of funds include Tuition B and other revenue
generated by activities supported by Designated Tuition Fee Funds
− Budget = Spending Authority
Budgeting Practices by Fund Group (Cont’d)
• Income Supported Designated Funds,
include Funds 0103 to 0991− Each fund generates it’s own source of funds− Budget = Plan
• Auxiliary Funds, include Funds 1200 to
1330− Self-contained business units− Generate their own revenue− Budget = Plan
What is a FOAPFOAP?
•FFund – identifies the source of funds (revenue)
•OOrgn – identifies the organization
•AAccount – identifies the account or object of
expense
•PProgram – identifies the program code
Financial Monitoring
• How can I monitor my department’s
budget?Reconcile your records to the General Ledger
monthly. This can be done by using reporting tools in Self-Service Banner or INB Banner. Training is available through the Controller’s Office.
• How do I monitor revenue?Reconcile your records to Schedule 2 of the
Monthly Operating Report.
Reconciling – Why is it Important?
• Foundation of Internal Control
• Insures compliance to Federal and
State Regulations
• Protects the resources of the
University by being good stewards
Reconciling – What Do I Look For?• Transactions are posted for the correct amount
− This should include the student & hourly payroll
• Transactions are recorded in the correct
account
• All transactions that should be recorded are
recorded
What Should I Do if I Find an Error?
and get it corrected as soon as possible!
• For questions regarding the payment of an invoice, contact the Accounts Payable Department at 2014.
• For payroll questions, contact the Payroll Services Office at 2727.
• For budget questions, contact the Budget Office at 2727.
Financial Monitoring - Forecasting
What is financial forecasting?
Projecting what the total revenues and expenses will be at the end of the fiscal year.
Why is it important?
To determine whether or not your fund will end the fiscal year “on target” and in good financial health.
Financial Monitoring - ForecastingHow do I go about forecasting my fund?
Begin by posing this fundamental question….Is the balance available in my fund adequate to cover the expenses that will be incurred for the rest of the fiscal year?
What if I find a problem?
WASTE NO TIME. Make sure and tell someone who has the authority to authorize a change in spending patterns.
Completing a Budget Adjustment
Completing a Budget Adjustment-Appropriate Approval
If the Budget Adjustment does not involve fund balance, revenue, or regular salaries, then the appropriate approval is the Account Manager and one up. Otherwise, the appropriate Vice President and the President must sign the adjustment.
Completing a Budget Adjustment-Guidelines
Review
• A Budget is not cash. It is a plan or spending
authority granted to an Account Manager.
• Reconciling your records monthly is the
foundation for internal control and insures
protection of the University’s resources.
• A Budget Adjustment form must be completed to
transfer funds.
Organizational Chart
Sharon MeyerVice President
Finance & Administration
Angie WrightAssistant Vice President
Finance & Administration
Dr. RalloPresident
Human Resources Payroll ServicesBudget Office
Lisa SheppardBudget Assistant
Tammy BarnesBudget Analyst
Dr. RalloPresident
Questions?