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Boise State University Budget Office Training Best Practices

This training outlines essential budgeting practices for Boise State University, focusing on four primary objectives: understanding basic budget building, monitoring operational expenses, travel and capital budgets, and managing payroll budgets. It emphasizes the importance of the end-of-year processes for both for-profit and government sectors and offers insights into financial reporting. The guide is structured to support departments in effective budget management, ensuring alignment with strategic goals and efficient use of resources while maintaining transparency and accountability within the university's fiscal operations.

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Boise State University Budget Office Training Best Practices

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  1. Best Practices Boise State University Budget Office

  2. Goals for Training 1. Understand Basic Budget Building 2. How to Monitor OE, Travel & CapitalBudgets 3. How to Monitor PayrollBudgets 4. Understand End of Year Processes

  3. For Profit vs. Government For Profit • Revenue – Expenses = Net Income • Maximize Profit • Government • Resources Received • = Resources Used • Efficient & Effective • Use of Resources

  4. Boise State University

  5. Financial Reporting Program Type Department Account Fiscal Year FY 2008 July 1, 2007 To June 30, 2008 10 Digit Alpha-Numeric 909A100001 6 Digit Numeric Asset Liability Revenue Expense Fund Balance Associated with Department General description of activity

  6. Fiscal Year 12-Months July 1 to June 30 FY 2008: July 1, 2007 – June 30, 2008

  7. Program Types / Activity Type • Program 01: Instruction • Program 04: Research • Program 06: Public Service • Program 07: Library • Program 08: Student Services • Program 09: Physical Plant • Program 10: Institutional Support • Program 11: Academic Support • Program 12: Auxiliary Enterprises (Athletics) • Program 13: Scholarships

  8. Program Types / Activity Type

  9. Department identifier Section/Unit Identifier 1 = Main Campus 2 = BSU West Fund Source A = Appropriated L = Local G = Grant Department Anatomy of the Department ID B i o l o g y Format: 3-1-6 Alpha Numeric 006 A100001

  10. Accounts • 6 Digit Numeric • “Buckets” • 3***** = Revenue • 4***** = Personnel Costs • 5***** = OE & Travel (53****) • 6***** = Capital • 9***** = Fund Balance

  11. Budget Rollup Accounts 410000 Regular Salary 411000 Part-Time/Irregular Salary 412000 Student Salary 420000 Fringe Benefits 500000 Operating/Other Expenses 530000 Travel 600000 Capital Outlay

  12. Types of Financial Statements • Income Statement • GL Department Detail Report • Balance Sheet • Etc.

  13. Users of our Financial Statements • Departments • Deans / VP’s / Provost / President • State Board of Education • Governor / Legislature • Lending institutions • Auditors

  14. Uses of Financial Statements • Track progress towards goals • Compare Actual with Plan/Budget • Communicate • Modify behavior • Assess financial condition • Assist in evaluating efficiency and effectiveness

  15. Why do we have Budgets? • Control spending • Monitor progress & modify spending • Communicate • Required

  16. Appropriated General Fund (taxes) $80 million Budget Tuition $47 million Budget ***A****** Departments Local & Auxiliary Other Student Fees User Fees F&A Transfers from Foundation $26 million Local Budget $61 million Auxiliary Budget ***L****** Departments Kinds of Budgets

  17. Appropriated Budget Process

  18. BSU Budget Process MAR: JFAC & SBOE sets Budget MAY: BSU sets department budgets MAR: Local Budget Templates JULY: Budget effective DEC: Annual Planning Documents AUG: Submit Budget Request to SBOE

  19. Local Budgets • Budget = a plan or estimate • Most common meaning for business • Budget is not a guarantee • No budget transfers • Annual budget preparation: March – May • Separate budget book • Look at the bigger picture ** ** Think of: Fund Balance = Spending Authority

  20. Why Budget Local Departments? • Required to submit Local Budgets to the State Board of Education • (For FY08 864 budgets sent out, 648 returned 75%) • Estimate activity • Ensure strategic plans are met • Make better planning decisions • Gives you something to compare current activity against

  21. How does a Local Budget work with the Fund Balance?

  22. How does a Local Budget work with the Fund Balance?

  23. How does a Local Budget work with the Fund Balance?

  24. Auxiliary Budgets • Auxiliary Enterprises are essentially self-supporting per SBOE policy • Annual budget preparation: March - April • Information for budget preparation • Projected enrollment • Salary and payroll expense • Utilities • Administrative Service Charge • Separate budget book

  25. Auxiliary Budget Overview • 16 Auxiliary Enterprise Departments • FY08 Revenue = $61,315,648 • FY08 Expense = $61,260,842 • FY08 Total Employee FTE = 357.85

  26. Auxiliary Budget Revenue

  27. Appropriated Budget • Annual Planning Documents • Request additional budget for upcoming fiscal year. • Used to plan for the next years budget request • Planning • Communicate • Approved New Budget is communicated to department through VP or Provost

  28. Appropriated Budget Book • Distribution • Lists $$ support from State and from Students • Lists permanent budget for each appropriated department

  29. One-time vs. Permanent Budget • Permanent transfers increase or decrease the next years original budget (base) as well as this years budget • One-time transfers only effect the current year’s budget

  30. Budget Transfers • Allowable Budget Transfers • Clearing Budget Errors • One error holds up the entire journal entry • Budget Transfer Form • Appropriated Only • Correct signatures • Plan ahead – remaining fiscal year • Not just one pay period at a time

  31. Monitoring OE, Travel & Capital • Reports • Department Detail Report • Department Summary Report • Appropriated Budget Summary • Budget Overview • DDR Query & Pivot Table

  32. Monitoring OE, Travel & Capital • DDR Query & Pivot Table • On-line instructions: http://finad.boisestate.edu/aa_home.htm • Pros and Cons of using DDR Query • Additional entry information • Entry signs are ‘reversed’ • No budget information • Examples: • Single DeptID – 12 months side-by-side • Single DeptID – 3 Years side-by-side • Multiple DeptIDs – side-by-side

  33. Monitoring OE, Travel & Capital • Local & Auxiliary • Fund Balance • What to look for on reports • No deficits in fund balance • Budget • What to look for on reports • No budget transfers • Except for: Auxiliary, computer labs, & a very few others

  34. Monitoring OE, Travel & Capital • Appropriated • Budget • What to look for • No deficits in budget • Allowable Budget Transfers • One-time vs. Permanent • Timing of transfers

  35. Monitoring OE, Travel & Capital • Tracking – Folders and Spreadsheets • Folders for • Open Payments • Pending Invoices • Pending P-Card • Pending Deposits • Posted Expenses • Posted Revenues • When picking an account • Be Specific, Reasonable & Consistent • Examples: Non-employee travel is OE

  36. Folders - Example

  37. Folders I’m going to purchase MS Project with my P-Card. Cost is about $100.

  38. Folders Memo: Acct: 557000 Desktop Software I’m going to purchase MS Project with my P-Card. Cost is about $100.

  39. Folders Match Memos to P-Card “Statement” Memo: P-Card “Statement”: $107.59 Office Max Code to 557000 Desktop Software

  40. Folders Place in Pending P-Card Folder Memo: P-Card “Statement”: $107.59 Office Max Code to 557000 Desktop Software

  41. Folders Place in Pending P-Card Folder Memo & P-Card “Statement”

  42. Folders Match P-Card Statement to PeopleSoft Department Detail Report: 500000 OE 557000 Desktop Software P-Card Wargo 107.59 Memo & P-Card “Statement”

  43. Folders File in Posted Expenses Folder Department Detail Report: 500000 OE 557000 Desktop Software P-Card Wargo 107.59 Memo & P-Card Statement

  44. Folders File in Posted Expenses Folder – Keep 5 years Detail Report P-Card Statement Memos

  45. Folders ? ? Department Detail Report: 500000 OE 571020 Minor Tools Home Depot $456.78 ? DDR query. Call AP (if source document is AP) or Accounting to get more information.

  46. Folders Invoice Copy $345.67 Office Solutions Department Detail Report: ? Call AP (if the source document is AP) or Accounting to get more information.

  47. Reconciliation Workbook • Advantage of folders: • Tracking expenses from your office to PeopleSoft • Example • Advantage of Workbook • Tracking permanent vs. one-time budget

  48. Monitoring Payroll • Reports & Tools • Payroll Expense Distribution Report • Example • Payroll query from Business Manager

  49. Budget Position Action Request (BPARs) • Main focus is on the position • Submit BPAR if requesting permanent new position • Must have APPROVED funding • Permanent Budget (transfer if Appropriated) • Approved Supplemental Funding Request (SFR) form if funded by an appropriated department • Other reasons for submitting BPARs • Academic Areas • Must have Department Chair, Dean & Provost signatures before submission to the Budget Office • Non-Academic Areas • Must have Director & Vice President signatures

  50. Employment Action Forms (EAFs) • Main focus is on the employee • Submit EAF for reappointment if: • funded by grant • for temp employee, • change in salary, term, title • Importance of submitting EAFs in a timely manner • If late, creates payroll corrections & could delay first paycheck • Effective Dates • Contract Dates/Working Dates

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