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Understanding Your Budget for Staff - Strategic Budget Plann

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Understanding Your Budget for Staff - Strategic Budget Plann Powered By Docstoc
					Understanding Your Budget
                January 2008

                   Dr. Amy Ballagh
 Assistant to the Vice President for Student Affairs &
                Enrollment Management
            aballagh@georgiasouthern.edu
              Today’s Topics
•   Fund sources & restrictions
•   Budget development
•   Transferring funds
•   Salaries
•   Travel & purchasing regulations
•   Audits
Demonstrate your financial wizardry!

              Lifelines:
               Eliminate an answer
               Call on a colleague
               Poll the audience
 A staff member in your department is
having a baby. Which funds are the best
   to use to pay for the gift from the
              department?
A. Student Activity
B. E&G
C. Foundation
D. University funds cannot be used
FUND SOURCES &
 RESTRICTIONS
       Types of Funds in SAEM
•   E&G
•   Student Activity
•   Foundation
•   Agency
•   Federal
•   Auxiliary (Health Services & Housing only)
 Education & General (E&G) Funds

• Consist of state appropriations, tuition &
  mandatory fees
• No “fun, food or flowers”
• Ideal for labor costs, travel, office supplies,
  office-related expenses, equipment
• Use it or lose it
        Student Activity Funds
• Activity Fee & RAC Fee paid by student enrolled
  in 4+ credit hours
   – Funds from Activity Fee distributed by Activity Budget
     Committee; proposal required each year
   – Funds from RAC Fee used by CRI
• For social, cultural, recreational & educational
  opportunities for GSU students
• Unused funds roll into reserve accounts
          Foundation Funds
• Private party donations
• Use for work-related recognition, team-
  building dinners, professional development
• Birthday gifts/parties, baby gifts/showers,
  holiday gifts not permitted
• Funds may roll depending on account type
             Agency Funds
• Funds from a third party for non-University
  business purpose
• Purchases must reflect purpose of agency
  account
• Not required to follow state purchasing
  regulations
• Unused funds roll
             Federal Funds
• Funds from a federal agency (grant funds)
• Purchases must reflect those included in
  grant application
• Special regulations apply
        What funds do I use?
1st Choice: E&G
2nd Choice: Student Activity
3rd Choice: Foundation
        Off-Campus Accounts
• All financial transactions related to official
  university business are to be maintained on-
  campus
• Off-campus bank accounts are not permitted
Demonstrate your financial wizardry!

              Lifelines:
               Eliminate an answer
               Call on a colleague
               Poll the audience
 You are interviewing candidates for a
  vacant position in your department.
 Which funds are the best to use to pay
  for the candidate’s travel expenses?
A. Student Activity
B. E&G
C. Agency
D. Foundation
BUDGET DEVELOPMENT
         Revenue Projections
• Use data from past three years to analyze:
  – Compare previous forecasts to actual revenue
  – Identify underlining trends & factors
    influencing past, present and future revenues
    for each good/service
• Develop forecast for upcoming year
  (monthly projection)
• Need 1-year & 5-year projections
            Cost Projections
• Use data from past three years to analyze:
  – Compare previous forecasts to actual costs
  – Identify underlining trends & factors
    influencing past, present and future costs
• Develop forecast for upcoming year
  (monthly projection)
• Need 1-year & 5-year projections
        Increases for FY 2009
• Merit raises: estimate 4% for prof./admin. & staff
  effective 1/1/09
• Health insurance: estimate 14% effective 1/1/09
• Minimum wage: from $5.85 to $6.55 effective
  July 24, 2008
• Graduate assistantships: from $5,850 to $6,850 for
  fall/spring
• New letterhead & business cards for new phone
  numbers
       Requesting More Money
• Annual/Ongoing: Will incur expense every year
   – Increase in salaries, benefits
   – Software maintenance & other annual contracts
• One-Time/Start-Up: Will incur expense only once
   – New copier machine, computer, furniture, etc.
• When requesting additional funds, always address
  total costs in your proposal (one-time/startup &
  annual/ongoing)
• Save your requests for BIG TICKET ITEMS!
TRANSFERRING FUNDS
    Rules for Budget Transfers
• Cannot transfer between different fund
  types (E&G, Student Activity, Agency,
  Federal, Auxiliary)
• Must be approved by VP
• Restrictions depending on budget line &
  fund source
            Moving E&G Funds
                         Move to a
   Move to any            personal
       line             services line        Cannot move
• Casual labor       • Prof/Admin          • Fringes
• Travel               salary*
• Operating          • Staff salary*
  supplies &         • Graduate
  expenses             assistant
• Equipment          • Student
                       assistant
* President’s approval required unless lapse salary
  Moving Student Activity Funds
                         Move to a
   Move to any            personal
        line            services line        Cannot move
• Graduate assistant • Prof/Admin          • None
• Student assistant    salary*
• Casual labor       • Staff salary*
• Travel
                     • Fringes
• Operating
  supplies &
  expenses
• Equipment
* President’s approval required unless lapse salary
               Lapse Salary
• Can transfer funds from prof/admin or staff
  salary to casual labor to perform duties of
  vacant position (up to 12 weeks)
• Position must be vacant to move funds
• To determine amount available:
  – Hourly salary x 8 hours x # days position
    vacant
  – Subtract vacation pay out (VPO)
         When Errors Occur
• Use Expenditure Transfer form to move
  posted transaction from one account/
  department to another
• Request payroll reallocation if labor
  expenses post to the wrong account or
  department
• VP approval required
Demonstrate your financial wizardry!

              Lifelines:
               Eliminate an answer
               Call on a colleague
               Poll the audience
   You need to purchase a camcorder
   costing $800. What is the preferred
          purchasing method?

A. PCard
B. Purchase requisition
C. Personal funds with reimbursement
D. Petty cash
SALARIES
 Salary Adjustments for New Hires

• Proposed salary is more than budget line:
  – Increase from another salary line (President’s
    approval required) or operating
  – VP approval to HR may be required
• Proposed salary is less than budget line:
  – Salary savings to President unless he approves
    a reallocation to another line
TRAVEL & PURCHASING
    GUIDELINES
           Employee Travel
• Authority to travel request to Accounting
  Office at least 15 days prior to travel
• Follow state travel regulations (see
  Controller website)
• Use good judgment when spending other
  people’s money
           Candidate Travel
• Can use E&G funds to pay for candidate’s
  expenses
• Direct billing for flight available through
  Burns World Travel
• Request direct billing from hotel
             Candidate Travel
• Meals
  – $28/day allowance for meals
  – Candidate can pay for their own meals and submit
    travel expense statement for reimbursement
  – Staff member can be reimbursed for candidate’s meal
    (submit travel expense statement)
  – Employee meals can only be reimbursed with
    Foundation funds
  – Student meals can be paid for with Student Activity
    funds
        Student Group Travel
• Individual authority to travel requests
  needed only if student is traveling at GSU’s
  request (part of job requirement or asked to
  present at conference)
• Avoid reimbursement process if possible
  (for students)
        Student Group Travel
• Can request travel advance for meal
  stipends for students (students must sign log
  when receive $)
• Pay for student hotel rooms with PCard (if
  group travel coded & <$5,000) or PR
Demonstrate your financial wizardry!

              Lifelines:
               Eliminate an answer
               Call on a colleague
               Poll the audience
You travel to Atlanta in a state vehicle &
 need to purchase gasoline. What’s the
        best method of payment?
A. American Express
B. Cash
C. PCard
D. Wright Express Card
           Purchasing Limits
Amount         Description
$1,000 or less Petty cash limit ($50 minimum)

$3,000         Taggable equipment level (plus
               computers & weapons)
$5,000         Single transaction limit for
               departmental purchases and PCard
               Bid required
           Prioritized Source
• Statewide contracts (i.e. computers, office
  supplies, office furniture, vehicles)
• Agency contracts (i.e. tour bus rental, Coca-
  Cola, letterhead, janitorial supplies)
• Open market purchases
          Prioritized Method
• Procurement Card
• Purchase requisition – over $5,000 or
  restricted items
• Petty cash – established fund or
  reimbursement
  – Issues: Sales tax, security, out-of-pocket
    expense, preapproval
  Procurement Card Regulations
• Cardholders may not approve their own
  transactions (WORKS or transmittal sheet)
• Cannot use someone else’s card
• Special form required for team/group travel
  and food purchases
• Do not split orders to avoid limits
    Procurement Card Restrictions
•   Computers
•   Software (MSD is acceptable)
•   Dues
•   Foundation fund purchases
•   Hazardous materials
•   Inventoried equipment
•   Maintenance contracts
•   Petroleum
  Procurement Card Restrictions
• Personal items (i.e. stamps, greeting cards,
  flowers, gifts, coffee pots, refreshments, first aid
  supplies, etc.) – special cases allowed for student
  activity funds, but DOCUMENT
• Purchases requiring signing an agreement
• Travel expenses (except Enterprise car rental in
  GA or pre-approved student travel)
• Purchases over $5,000
• Telecommunications equipment
  Procurement Card Restrictions
• Sales tax
• Negotiable instruments (i.e. gift cards or
  discount coupons)
• Technology purchases over $1,000
• Real estate rental, including storage contract
  fees
• Agency fund purchases
Demonstrate your financial wizardry!

              Lifelines:
               Eliminate an answer
               Call on a colleague
               Poll the audience
You are attending a conference and need
 to pay for the registration fee. What is
   the preferred purchasing method?

A. American Express
B. Personal credit card
C. Purchase requisition
D. PCard as long as the fee doesn’t
   include membership dues
                 Gift Cards
• Transfer form required (recipient must sign)
• Recommendations:
  – students only
  – reasonable dollar amount
  – vendor that does not sell alcohol
       Departmental Workshops
• Must be preapproved by VP
• Send proposal with the following info:
  –   Who will attend
  –   Purpose
  –   Location, date(s) & time
  –   Funding source(s), itemized cost estimate (use
      categories such as food, decorations, give
      aways, etc.), total cost
            Cash Management
• Must record when money is received (receipt
  system) – amount, date, description
• Audit trail is important
• If don’t receive cash on a daily basis, can deposit
  funds weekly
• Keep cash in lock box or vault with limited access
• Periodically balance petty cash & change funds (at
  least monthly)
       Petty Cash Management
• Use a voucher system
   – Keep log with withdrawal info (date, purpose, amount
     withdrawn, name of person approving withdrawal,
     name of person receiving funds, signature of person
     receiving funds)
   – When person returns with receipt, record actual
     amount, vendor, speedchart & account to be charged,
     amount of funds returned
• If a reimbursement, purchase should be
  preapproved
    Important Accounting Tips
• Codes in the chartstream (including account
  numbers) are used to automatically generate
  reports for the University
• Always spend money in the department that
  is performing the service. Expenses should
  be posted in the department that best
  reflects the use of funds.
    Important Accounting Tips
• Example: VP funds year-end request for
  Registrar
  – VP program code = 16100 (Institutional
    Support – Executive Management)
  – Registrar program code = 15600 (Student
    Services – Student Records/Registrar)
• If expense posted to VP department, would
  be reported with the wrong category
    Important Accounting Tips
• Choose an account number that accurately
  reflects the type of purchase
  – Don’t overuse 714100 Supplies & Materials
    and 714110 Supplies & Materials-Office (may
    need to use 727100 Other Operating Expense
    instead)
  – Do not use 714900 Purchase Card Expense
Demonstrate your financial wizardry!

              Lifelines:
               Eliminate an answer
               Call on a colleague
               Poll the audience
   You travel to Atlanta to attend the
 Admissions reception. What is your per
            diem for meals?

A. $20 per meal
B. $28 per day
C. $36 per day
D. No limit
AUDITS
            Record Keeping
• For every financial exchange, keep copies
  of documentation
• May receive question about a transaction
  during an audit or a review
• Refer to USG Records Retention Guidelines
  for details of what needs to be kept and for
  how long
     Record Keeping Methods
• Hard copies – organized by payment
  method and/or date
  – 3-ring binder
  – File folders
• Electronic copies
• Computer files – use Quicken to track &
  categorize revenue & expenses, reconcile,
  produce reports
          Responsibility

    Always review receipts before
            processing!

 Don’t sign your name to anything you
have not reviewed or do not agree with!

				
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