Budget and Expense Processing for Funds 100, 017, & 597 By: Douglas Alan Masury/Queenie Chan Sr....

Office of Administrative Services FY2011/2012

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Budget and Expense Processing for Funds 100, 017, & 597

By: Douglas Alan Masury/Queenie ChanSr. Financial Analysts – Mission College

Office of Administrative Services

WELCOME


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Budget and Expense Processingfor Funds 100, 017, & 597

Where is my money?How can I spend it?

Welcome


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What Funds are you working with?

• Many of you are working with several different funds for your program activities:

• Fund 100 with one or more costcenters;• Fund 017 with one or more costcenters;• Fund 597 with one or more costcenters.


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It can get complicated!!!But it is not……

• The Office of Administrative Services will work with you and is working with you to ease the

stresses of managing your money to make your programs work!!!! • So to start with:• WHO DOES WHAT?


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Funds Doug Masury is responsible for:◦ Fund 120◦ Fund 330◦ Fund 591◦ Fund 595

Funds Queenie Chan is responsible for:◦ Fund 100◦ Fund 017◦ Fund 597

◦ Fund 121◦ Fund 122◦ Funds 741-754

◦ Fund 120◦ Fund 400◦ Fund 712◦ Fund 732

Distribution of Financial Analyst Duties

Budget/Expense Support Contacts

Office of Administrative Services FY2011/2012 6

Assumptions

• Your budget has already gone through the program review process, Board approval, and is now loaded in Datatel.

• “You” are now ready to spend your funds for your program.

• Everything is in place for you to move forward..

• So, how do I begin?


DEFINITIONS…• Fund:

– This is the first 3 digit number of the Datatel account string that identifies the Fund your budget is posted to and the fund to where expenses will be posted to or from.

• Cost Center:– 6 digit identifier following fund number[first 3 numbers]. Other than the

fund number, this is the biggest fund identifier used to identify the actual fund you are spending from.

• Line Item/Line Item Detail:– This is the line on your Datatel report that gives you information

pertaining to an object code purchase. Information includes date paid, voucher number, amount, purchase order amount, purchase order change, and can include budget transfer changes and expense transfer changes along with object code totals.


Definitions continued…

• Object Code:– This is the 5 digit general ledger code identifying the place

where your budget and expenses are located within the fund and costcenter.

– Each object code total shows you how much has been budgeted and expended within the fiscal year program operations.

• Encumbrance:– An encumbrance is a purchase requisition that has gone through

our Purchasing Department and is ready to spend against. Think of a encumbrance as another name for your Purchase Order. It is money set aside for a specific intentional purchase.


Definitions continued….

• Available Balance:– Available balance is how much money is actually left over

and available to spend AFTER your posted expenses and encumbrances. • It is your NET BALANCE, net after all expenses have been posted

and encumbrances [purchase orders] have been posted and updated. [It is what you have left in your pocket].

• General Fund Accounts:– These are Non-Grant driven funds that are, for the most

part, NOT restricted with specific spending limitations. • Categorical Funds have VERY specific regulations as to HOW the

funds are expended and are workplan driven for specific results.



• General Fund: Fund 100– These are funds the college acquires thru non-grant activities, that

come through State apportionment, and are not restrictive in their spending requirements.• Exceptions:

– Fund 017 as these are student fees collected and can only be spent on material costs for the class/program for the student. These costs are directly related to the student in particular and the class in particular.

• Categorical Funds:– These are restricted funds that, in some ways, are grant driven. The

restrictions are set by the grantor agency in line with the workplan guidelines. These restrictions are set in advance and cannot be modified.• Example: Tech Prep Grant cannot purchase equipment under any conditions.



• Budget Transfer– The movement of allocated [budgeted] funds from

one object code to another within the same fund and costcenter.

• Expense Transfer– The movement of expenses from one object code

to another within the same fund and costcenter;– The movement of expenses from one fund and

costcenter to another fund and costcenter;


Definitions continued…• Credit Card Transfer:

– The process of transferring credit card charges posted to 54250 to another object code within the same fund/costcenter or to another fund/ costcenter.

– This process will zero out object code 54250. The object code expenses MUST be moved each month and completely zeroed out by fiscal year end.

• Fiscal Year:– A fiscal year represents a 365 day year. This can be a calendar year,

January 1st thru December 31st , or any other combination. • Our District’s fiscal year is July 1st thru June 30th… thus, your fiscal year is July 1st

thru June 30th for all transactions…Anything posted AFTER June 30th is considered an expense of the next fiscal year period. Thus, it is critical for you to know your budget and expenses to insure propriety in planning and success in posting.


Fund Issues/Guidelines

• Fund 100 monies are General Fund monies that come through FTES generation from the State and are paid out to the college via apportionment.

• Fund 017 monies are earned through the receipt of student fees for the classes they are taking. These monies may carry over to the next fiscal year IF the student has paid for a class that will be given in the next fiscal year [summer session].


Fund Issues/Guidelines [cont…]

• Fund 597 [new fund] monies come from activities generated through college activities outside of student fees. An example of this would be the lunches served by Hospitality Management or flower purchases from Retail Floristry.

• These are the non-categorical funds we will be dealing with today. [Funds 100, 017, & 597]


Differences between Fund 017 and 597

• Before FY10/11, Fund 017 was under the Sub-Fund 100 [unrestricted General Fund],

• From FY11/12 onward, certain Fund 017 monies have been moved out to Entrepreneurial Funds, i.e., Fund 597

• Fund 017 will remain as a Sub-Fund 100 account• Fund 597 has been reclassed as entrepreneurial

services offered by a department to conduct an operation.


What are the similarities?

• Both Funds 017 and 597 generate revenue to support its programs;

• Fund 017 revenue is the LAB-FEE collected from the student for the material costs for the classes they have registered for and are taking or will be taking;

• Fund 597 revenue is from the service offered through classes to support its own program. These are NON-Student fee driven.


How are they handled? Carryovers? Limitations?

• Fund 017: Fees collected from the student MUST be expensed within the timeline for the course they are related to. Spending is restricted and can be used ONLY for the materials needed for the course that the student is taking. These materials must be something the student uses in the course of the program and that they may take with them. No Salary payments are allowed. Unspent balance needs to be reimbursed to the student by the end of the semester.

• These funds cannot be swept by the District.


How are they handled? Carryovers? Limitations?

• Fund 597: Revenue earned through services generated by the activities from the classes they pertain to [Hospitality Management, Retail Floristry, etc…] Year end balances will be carried forth into the next fiscal year.

• These funds can be swept by the District if need be. So far, they have not…


So, how do I spend my money? And what forms do I use?

• District Check Request:– For reimbursement of expenses incurred

• Must have original receipt

• Purchase Requisition:– For large ticket item purchases [computers, etc.] PINQ– For materials purchases [Office Depot, etc.] BINQ

• Petty Cash:– For non-food items [exceptions] under aggregate monthly total not to

exceed $100…• Credit Card Transfer Form:

– To be used to transfer any and all credit card balances and receipts to the proper object code for the expense incurred.

– At fiscal year end, your balance MUST be zero. No carryover expenses allowed.


WEST VALLEY-MISSION COMMUNITY COLLEGE DISTRICTDISTRICT CHECK REQUEST

REQUESTED BY:

NAME EXTENSIONDIVISION DATE

PURPOSE: (if conference attendance, list individuals attending) AMOUNT ($):

TOTAL REQUESTED $0.00

CHECK PAYABLE TO: (if individual, add SSN)

BUDGET ADMINISTRATOR

TITLE

ACCOUNT NO.SUBMIT SIGNED ORIGINAL PLUS ONE COPY TO THE FINANCE OFFICE

Return Check t: ________________________________

Finance Use Only

Tax Form 1099 Misc:__________

District Check Request


Purchase OrderRequisition #

WEST VALLEY-MISSION COMMUNITY COLLEGE DISTRICTPURCHASE REQUISITION

BUDGET ADMINISTRATORS SIGNATURE:

VENDOR: DATE:

VENDOR ADDRESS: COLL/DIST: MC

CITY/STATE/ZIP P.O. #:

PHONE/FAX NUMBER CONFIRMED?

Will you pick up order? Account Number:

REQUESTOR/DEPT. BLDG NAME/NUMBERDELIVER TO / x if TAXABLE

N/A | Sales Tax Rate

QTY UNIT DESCRIPTION UNIT PRICE TOTAL Taxable? 9.25%

1 x

2 x

3 x

4 x

5 x

6 x

7 x

8 x

9 x

10 SUBTOTAL

REMARKS TAX

TOTALPLEASE FILL OUT IF THE COMPANY REQUIRES PREPAYMENT: n<--CHECK NEEDED?

NAME: DATE: *|

PURPOSE: DEPT: |C

PAYABLE TO: AMOUNT INCLUDING TAX: HE

OFFICE USE ONLY CK?

ACCOUNT KEY

Please see below for breakdown

Where do you want it delivered?


WEST VALLEY-MISSION COMMUNITY COLLEGE DISTRICT

PAY TO:

NAME EXTENSION DIVISION DATE

PURPOSE: AMOUNT ($):

Total Requested $0.00

APPROVALS ACCOUNT NO.

Budget Administrator (Print Name) Extension

Budget Administrator (Signature) Date Cashier Date

Recepient(Signature) Date REV 1/01

FINANCE OFFICE PETTY CASH

SUBMIT SIGNED ORIGINAL PLUS ONE COPY TO THE CASHIER

Petty Cash Form


MONTHLY CREDIT CARD PURCHASE REPORT/EXPENSE TRANSFER

Statement Date/Fiscal Year Expense Transfer Number

CARDHOLDER NAME: COLLEGE/DEPT:

ORIGINAL RECEIPTS MUST BE ATTACHED. SEND ORIGINAL, SIGNED LOG AND RECEIPTS TO PURCHASING WITHIN 30 DAYS OF STATEMENT DATE. SEND ANOTHER ORIGINAL OF THE SIGNED LOG AND COPIES OF RECEIPTS TO COLLEGE FINANCIAL ANALYST TO PROCESS EXPENSE TRANSFER.

Credit card charges currently reside in Datatel Acct. Statement Amount: Datatel Account to Credit(54250)

DateReceipt

Attached Description of/Reason for Purchase Vendor's Name Amount of Purchase Datatel Account Number (DEBIT)

Total charges: $ -

Balance: $ -

I CERTIFY THAT ALL PURCHASES LISTED ON THIS STATEMENT ARE CORRECT AND WERE MADE FOR OFFICIAL WVMCCD PURPOSES. ALL GOODS OR SERVICES HAVE BEEN RECEIVED.

CARDHOLDER SIGNATURE DATE BUDGET ADMINISTRATOR SIGNATURE DATE

Original for Purchasing w/Original receipts Original for District Finance w/Copy of receipts

Credit Card Purchase Report/Expense Transfer Form


District Check Request, Purchase Requisition, Petty Cash Form, Credit Card Transfer Form.

• These are the most common forms used to spend your money from your Fund 100, Fund 017, and Fund 597.

• The most common object codes used are:– 54110 – Instructional supplies– 54210 – Non-Instructional Supplies– 54240 – Duplicating– 55115 – Food Costs [example, for Biology/Chemistry]– 55200/55205 – Travel/Conference


My Budget

• Assumption: Budget is approved and loaded into Datatel.

• You are needing to move money [Budget] from one or more object codes to make a purchase.– Assumption: The object code you need to make a

purchase FROM does not have enough money in it to make your purchase.• What do I do and what form do I use to accomplish this?



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The Budget Transfer FormThis is the form you use to move funds from one object code to another.


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Budget Transfer form..

• You will need to use this to:

• Why do I need to do that?

• Make changes to your budget…

• You do not have enough money in an object code to make that next purchase, OR;

• You have overspent an object code….


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What does this form do?

• You will need to designate FROM which object code to take money FROM to put into the object code you are needing to increase the budget $$$ amount. From this form, we will know how much $$$ to properly transfer for you.

• But Why do I need to do this?

• If you have overspent an object code, you will need to put it in balance, OR;

• You need to make a purchase from an object code that does not have enough money in it.


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Budget Transfer guidelines

• When will it post?

• Why does it have to be Board approved?

• IF you are moving funds from the same object code rollup number [1000 to 1000; 4000 to 4000, etc], then after signatures, it can be posted to Datatel in one day.

• IF you are moving funds from one object code rollup to another [1000 to 2000, 2000 to 4000, etc], then the transfer must be posted by District Finance and added to the Board agenda for overall approval. Once Finance is in receipt of the transfer, usually in 3-5 days, it will be posted to Datatel.


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Budget Transfer guidelines

• What do I do if it cannot be posted right away?

• The purpose of today’s discussion is to help you develop the foresight for planning so these type of transfers can happen in a more timely manner thus allowing you to make the purchases you are needing in also, a timely manner.

• With the tools presented here today, you can and should be able to plan your spending strategies effectively.

• IF it cannot be posted right away, see the Sr. Financial Analyst who works with your account for assistance.


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I want to transfer part of my expense to a different FUND / COSTCENTER

• What form do I use?• Why?

• What can I do and what can I NOT do?


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West Valley-Mission Community College District

Expense Tracking # ETRN#11-xxx

FINANCE OFFICE EXPENSE TRANSFER

Fund-Cost Center-Tops-Object-Grant Code Cost Center/ Object Description Amount

$0.00

FROM: $0.00

$0.00

Totals $0.00

$0.00

TO: $0.00

$0.00

Totals $0.00

Sum to zero $0.00

REASON: Fund/Grant/Department

Why am I doing this Transfer?Date of Transfer

The budget administrators who have signature authority for the account(s) must

sign below. Approved Date Ext. Budget Administrator (From) Approved Date Ext.

Budget Administrator (To)

FOR FINANCE USE ONLY

JOURNAL ENTRY# Reviewed by:

BY: Signature DateOriginal To: Finance Copies To: Retained by "TO" Budget administrator & by "FROM" administrator

This form is used to correct actual expenses only, not budget transfers or encumbrances. Corrections should indicate date and reference of the original transaction. The "from" is the account where the charges currently are shown in the general ledger; the "to" is where they should be charged.

Expense Transfer Form…


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Expense Transfer Form….

• You will need to use this to:

• Why do I need to do that?

• Move expenses to the proper object code…

• IF it has been posted erroneously, OR;

• Another fund/grant is taking your expenses per agreement….


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What does this form do?

• You will need to designate FROM which account to take the expense FROM to put into the account the expense needs to be moved to. From this form, we will know how much $$$ to properly transfer for you.

• But Why do I need to do this?

• Maybe you placed the wrong object code on the expense payment/ reimbursement, OR;

• You need to transfer the expense to the proper fund/grant.


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What do I do with this form AFTER I have created it?

• After the appropriate signatures, it needs to be forwarded to Finance for posting.

• Why?

• It cannot be posted otherwise.

• Once it is posted by District Finance to Datatel, your available funds can be increased or decreased,[allowing for the expense absorption or allowing for a purchase requisition to be properly processed] [and not returned to you].


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West Valley-Mission Community College District Expense Tracking #

ETRN#11-005

FINANCE OFFICE EXPENSE TRANSFER

Fund-Cost Center-Tops-Object-Grant Code Cost Center/ Object Description Amount

$0.00

FROM: 100-xxxxxx-xxxx-54110-000 $45.27

$0.00

Totals $45.27

$0.00

TO: 100-xxxxxx-xxxx-54210-000 $45.27

$0.00

Totals $45.27

Sum to zero $0.00

REASON: My Fund

To post to correct object code

today's date

The budget administrators who have signature authority for the account(s) must sign below.

Approved Date Ext.

Budget Administrator (From)

Approved Date Ext.

Budget Administrator (To)

FOR FINANCE USE ONLY

JOURNAL ENTRY# Reviewed by:

BY:

Signature Date

Original To: Finance

This form is used to correct actual expenses only, not budget transfers or encumbrances. Corrections should indicate date and reference of the original

transaction. The "from" is the account where the charges currently are shown in the general ledger; the "to" is where they should be charged.

This is an example of a completed Expense Transfer form.

WEST VALLEY-MISSION COMMUNITY COLLEGE DISTRICT

PAY TO:

NAME EXTENSION DIVISION DATE

PURPOSE: AMOUNT ($):

Total Requested $0.00

APPROVALS ACCOUNT NO.

Budget Administrator (Print Name) Extension

Budget Administrator (Signature) Date Cashier Date

Recepient(Signature) Date REV 1/01

FINANCE OFFICE PETTY CASH

SUBMIT SIGNED ORIGINAL PLUS ONE COPY TO THE CASHIER

Petty Cash Form



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Petty Cash Form

• What do I need to know about using this form?– First, there is a limitation of reimbursement amounts.

• $100 aggregate total per calendar month• Any receipts totaling over $100 MUST be paid out through a District

Check Request. No exceptions.• No food reimbursements allowed.

– How do I use this form? • First, attach all ORIGINAL receipts. No copies allowed. • What is the Datatel account you are wanting this expense posted to?

Do you have the budget available?

– Once completed and signed, form MUST be brought to Financial Analyst for approval prior to being brought to the Cashier for reimbursement.


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Credit card charges currently reside in Datatel Acct. Statement Amount:

DateReceipt

Attached

Balance:

DATE DATE

Original for Purchasing w/Original receipts Original for District Finance w/Copy of receipts

CARDHOLDER SIGNATURE BUDGET ADMINISTRATOR SIGNATURE

Datatel Account to Credit(54250)

Statement Date/Fiscal Year Expense Transfer Number

MONTHLY CREDIT CARD PURCHASE REPORT/EXPENSE TRANSFER

ORIGINAL RECEIPTS MUST BE ATTACHED. SEND ORIGINAL, SIGNED LOG AND RECEIPTS TO PURCHASING WITHIN 30 DAYS OF STATEMENT DATE. SEND ANOTHER ORIGINAL OF THE SIGNED LOG AND COPIES OF RECEIPTS TO COLLEGE FINANCIAL ANALYST TO PROCESS EXPENSE TRANSFER.

Datatel Account Number (DEBIT)Vendor's NameDescription of/Reason for Purchase

CARDHOLDER NAME: COLLEGE/DEPT:

Amount of Purchase

I CERTIFY THAT ALL PURCHASES LISTED ON THIS STATEMENT ARE CORRECT AND WERE MADE FOR OFFICIAL WVMCCD PURPOSES. ALL GOODS OR SERVICES HAVE BEEN RECEIVED.

Total charges: -$ -$

Credit Card Purchase Report/Expense Transfer Document

Credit Card Transfer ProcessingWhat do I do?

• 1st: Compare original receipts to Datatel report.– Does the total agree with the amount posted in Datatel?

• 2nd: Make copies if the receipts that will later be attached to the District Finance copy.– Original Receipts go to Purchasing with copies of the receipts going to District Finance as

backup.

• 3rd: Bring both signed copies to Financial Analyst for approval to;– Insure transfer amounts to various object codes is correct,– Insure Object Code Budgets can support transfer of expenses,– Insure paperwork is properly completed.

• This will insure your completed paperwork will not be returned from Purchasing or District Finance.

• Expense Transfer Number will be assigned by Financial Analyst for expense tracking in Datatel.


In General

• Regardless of the form being used to spend against your approved budget, it is advisable to bring your signed completed forms to the Financial Analyst for the Fund you are using for approval. – Why? And what will this do?

• This will insure none of your paperwork will be returned by District Finance or Purchasing for:– An incomplete form;– No funds available in your current budget;– Incorrect/erroneous Datatel account.

– Once everything is deemed correct, we will initial the paperwork and return it to you to send to the appropriate District office for processing.



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Budget Adm Fund - cost - top - obj - grant description Budget Actual Encum Available % Avail

Carolyn Kuri 100 - 250400 - 6400 - 52310 - 0 Graduation : H 225 - - 225 100Carolyn Kuri 100 - 250400 - 6400 - 52320 - 0 Graduation : C 1,000 - - 1,000 100Carolyn Kuri 100 - 250400 - 6400 - 52350 - 0 Graduation : H 400 - - 400 100Carolyn Kuri 100 - 250400 - 6400 - 54210 - 0 Graduation : N 2,206 40 700 1,466 66.48Carolyn Kuri 100 - 250400 - 6400 - 55600 - 0 Graduation : F 12,500 - - 12,500 100Carolyn Kuri 100 - 250400 - 6400 - 55980 - 0 Graduation : A 350 - - 350 100Carolyn Kuri 100 - 257000 - 6820 - 52320 - 0 MC Student Cen 622 - - 622 100Carolyn Kuri 100 - 257000 - 6820 - 54110 - 0 MC Student Cen 58 - - 58 100Carolyn Kuri 100 - 257000 - 6820 - 55200 - 0 MC Student Cen 350 - - 350 100

17,711 40 700 16,971 86.6%

This is an example of the spreadsheet you will be receiving each month to advise you of your budget and expense balances. The report will also show you, in a percentage format, how much of your budget is still left to spend.


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Example of Datatel report – GLBS - Detail

Specific Datatel Reports• GLBR: This is a summary report. There is NO line item detail. This report shows activity

totals by object code for the fund/cost center selected.• GLBS: This is a detail report. This report shows all line item detail by object code for the

fund/cost center selected.• PINQ: This is the purchase order mnemonic for purchase orders for a specific item.

[PXXXXX]… This screen will show you want is to be purchased from the vendor.• BINQ: This is the purchase order mnemonic for blanket purchase orders [Office Depot,

etc], whereby you are not purchasing specific individual items listed at the time you create your purchase requisition. YOU create the purchase order detail each time you place an order against your purchase order [BXXXXX]. This screen will show you the original purchase order amount and what funds have been expended against this purchase order as well as the final balance available.

• ACBL: This mnemonic allows you to look up a summary page for a specific fund/costcenter and object code. This mnemonic can ONLY be utilized for current year activity. It will not work for prior fiscal years.– Exception: During fiscal year end close, two fiscal years activities are open and can be accessed.

Once the previous fiscal year is closed, only current fiscal activity can be accessed.


Spending Guidelines

• There are new spending guidelines that in our current fiscal year [2011/2012] that have been enacted.– Each quarter, you MUST spend at least 25% of your overall

budget.• First Quarter: July thru September [at least 25%]• Second Quarter: October thru December [at least cumulative

50%]• Third Quarter: January thru March [at least cumulative 75%]• Fourth Quarter: April thru June [to complete to 100%]

– NOTE: If funds have not been expended by the end of March, you may lose your funds and they will be returned to the overall college budget and used for other needs.

– It is imperative you spend your funds in the most expeditious manner possible to a zero balance.Office of Administrative Services

FY2011/2012 47


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Well, here we are…..

• In the end, it really is an easy task. By using a little forethought, you can make your spending a success for you, the college, your program, and ultimately, your students……

• And!!!!!!– If you have any questions; please see….

• Queenie Chan [Funds 100, 017, 597, 120[limited], 712, 732]• Doug Masury [Funds 120, 121, 122, 300, 591, 595]

– And we can help you in getting your finances in order. • Thank you….

Budget and Expense Processing for Funds 100, 017, & 597 By: Douglas Alan Masury/Queenie Chan Sr....

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Transcript of Budget and Expense Processing for Funds 100, 017, & 597 By: Douglas Alan Masury/Queenie Chan Sr....