Financial Liaison Meeting August 30, 2010
Business Office FY2010 Year-End Cutoff Dates Year end is quickly approaching and we would like to thank you for another year of hard work. The Business Office has established the following deadlines to ensure transactions are entered in FY 2010: VENDOR VOUCHERS • For guaranteed entry into the system, please submit to Procurement & Payment services (PPS- 311 Ingram Hall ) by Monday, September 27, 2010. All vouchers received after September 27th will be processed on a time available basis. PURCHASE REQUISITIONS (PR’s) • PR's that do not require a bid must be received in PPS no later than Friday, September 17, 2010. PR's submitted after this date will be processed on a time available basis. • PR’s that require a bid must be received in PPS no later than Friday, August 20, 2010. • Purchase Change Orders with Vouchers for payment must be received in PPS not later than Monday, September 20, 2010. • PR's that cannot be issued on FY 2010 funds should have that notation clearly referenced in the Document Text. TRAVEL VOUCHERS • Must be received in PPS by Monday, September 27, 2010. Vouchers received after September 27 will be processed on a time available basis. PURCHASE CARD RECONCILIATIONS • Must be received in PPS by Wednesday, September 22, 2010.
INTERNAL TRANSACTION VOUCHERS (ITV) & DEPARTMENT ERROR CORRECTION FORMS (DEC) • Must be received in Financial Reporting (321 Ingram Hall) by Friday, September 24, 2010. Documents received after this date will be processed on a time available basis. • DECs (other than contract and grant funds) not processed in Fiscal Year 2010 will need to have budget transfers completed in Fiscal year 2011. BUDGET CHANGE ORDERS • Must be completed with approvals by Wednesday, September 29, 2010. Accounts Receivable Reconciliations • We would like to remind the applicable units who are responsible for accounts receivable to submit their • detailed accounts receivable as of September 30, 2009, along with the reconciliation to the Banner • Funds/Accounts to Student Financial Services and Internal Audit by Friday, October 08, 2010. Inventory Listing • We would like to remind the applicable units who are responsible for inventory to submit their detailed • inventory to Financial Reporting/Controllers office and Internal Audit by Monday, October 4, 2010. Service Centers • We would like to remind all Service Center Units to return the Fiscal Year 2011 Rate Development Calculations to Financial Reporting by Tuesday, September 28, 2010. • Please contact Procurement and Payment Services at 4-7771 or Financial Reporting at 4-3600 if you have any questions.
F O APROGRAMcode description The following codes are based on financial accounting and reporting requirements as directed by the National Association of College and University Business Officers (NACUBO) and the Integrated Postsecondary Education Data System (IPEDS).
REVENUE: R100 – Revenue All revenue (income) classifications except Auxiliary Revenues X100 – Auxiliary Revenue All auxiliary revenues (income) except athletic revenues X200 – Athletic Revenue Only athletic revenues (income)
INSTRUCTION EXPENSE: 1000 – Sponsored Instruction expense Formally organized instructional research expenditures, separately budgeted and accounted for and funded by external sources via contracts and grants. 1020 – General Academic Instruction expense Expenses for formally organized instructional activities, for University credit, non-credit or Cost Sharing.
RESEARCH EXPENSE 2000 – Sponsored Research-Basic Expenses for formally organized and separately budgeted Basic Research funded by external sources via contracts and grants. (Research type “Basic” must be provided bythe PI or Project Manager when the new FOAP is requested, and this program code will be a default linked to the fund.) 2002 – Sponsored Research-Applied Expenses for formally organized and separately budgeted Applied Research funded by external sources via contracts and grants. (Research type “Applied” must be provided by the PI or Project Manager when the new FOAP is requested, and this program code will be a default linked to the fund.)
RESEARCH EXPENSE CONTINUED: 2004 – Sponsored Research – Developmental Expenses for formally organized and separately budgeted Developmental Research Funded by external sources via contracts and grants. (Research type “Developmental” must be provided by the PI or Project Manager when the new FOAP is requested, and this program code will be a default linked to the fund.) 2050 – Departmental Research expense Expense for internally supported, non-competitive research. (Not considered organized research.) 2052 – Grant-in-Aid Research expense Internally supported, separately budgeted, competitive research award expense. Organized research expense.
RESEARCH EXPENSE CONTINUED: 2054 – Cost Share Research expense Internally supported, separately budgeted research expense in support of externally funded programs, as required by written agreement. 2055 – Other Non-Sponsored Research expense All other internally supported research expenses.
PUBLIC SERVICE EXPENSE: 3000 – Public Service Sponsored expense Separately budgeted and accounted for restricted expenditures for Public Service contract and grant awards funded from external sources. 3010 - Public Service Non-Sponsored expense Internally supported public service expense. (Outreach programs, conferences, program support, Cost Sharing)
ACADEMIC SUPPORT EXPENSE: 4000 – Academic Support expense Includes expenses to provide support services for the institution’s primary mission. Includes academic and graduate school dean’s offices, museums and galleries, academic support information technology and academic advising. (The Provost office is included in Institutional support and not in Academic Support.) Academic personnel development is also included, such as sabbaticals and faculty awards. 4010 – Constituency/Fund Raising expense Any expense related to constituency development officers and/or dean’s office fundraising expenditures.
LIBRARY EXPENSE: 5000 – Library expense Any expense related to libraries located on AU and AUM campuses.
STUDENT SERVICES EXPENSE: 6000 – Student Services expense Student services include the administration activities that provide assistance and support to the needs and interests of the students, including social and cultural development, counseling and career guidance, admissions, student records, and student health. (AUM’s intercollegiate athletics programs are included in this category.)
INSTITUTIONAL SUPPORT EXPENSE: 7000 – Institutional Support expense These expenses include central, executive-level activities concerned with the management and long-range planning for the entire University. These offices include the president, provost, chief business officer, chief development officer. 7002 – Information Technology Administrative Support Information technology support is normally allocated between Institutional support and Academic support, only.
INSTITUTIONAL SUPPORT EXPENSE CONTINUED: 7003 – Communications & Marketing expense These expenses relate to the department of Communications and Marketing and University wide publications. 7004 - Development & Fund Raising expense Expenses for activities to maintain relations with community, alumni, and other constituents, as well as conduct activities related to institution-wide development and fund raising costs. 7005 – Legal expense
OPERATIONS & MAINTENANCE EXPENSE: 8000 – Physical Plant Administration expense Expenses for administration and supervision of the operation and maintenance of physical plant facilities, and space management are included. 8001- Operations and Maintenance expense These expenses are normally incurred for janitorial and utility services, repairs and ordinary maintenance of buildings, furniture and equipment, care of grounds, security, disaster preparedness, safety, and hazardous waste management.
SCHOLARSHIP & FELLOWSHIP EXPENSE: 9000 – Scholarship & Fellowship expense Scholarship and fellowship expense from unrestricted or restricted funds.
AUXILIARY EXPENSE: A100 – Auxiliary expense All auxiliary units expense, excluding athletics, and includes housing, dining, transportation, surplus property, information technology service centers. A200 – Athletic Auxiliary Expense Expenses related to the intercollegiate athletic programs.
DEPRECIATION EXPENSE: D100-Depreciation expense This code is only used by Financial Reporting to record depreciation expense on capitalized assets.
AGENCY OPERATIONS: G100 – Agency Operations Includes revenues and expense for any ancillary unit that has a close association with the University, and who is allowed to use our accounting system for their purpose. The University has no direct control over these funds, but they must be reported in the University’s financial statements.
OTHER M100 – Mandatory Transfers This code is only used by Financial Reporting for cash transfers to fund debt service. N100 – Non-Mandatory Transfers This code used by the central business office. P100 – Project Construction This code is used when processing expenditures on building construction projects.
Contracts and Grants Accounting New report for contract/grant funds A-133 supplement and adequate source documentation
FZOGITD – Grant Detail Report Will be in e-print at each month end Will replace FRRGITD after 9/30/10 Retained from FRRGITD: PI, Sponsor, project period info, responsible department Budget, current month expenditures, inception to date expenditures, commitments, available balance New information available: Indirect cost base and rate Default Organization and Program Code vs. Actual Organization and Program Code Type of agreement (CR vs. FP; fed, fed-flow, non-fed) Totals by budget pool
A-133 Supplement What is OMB Circular A-133? Guide for auditors of federal programs Issued by OMB; OIGs from each agency contribute Auburn has an annual A-133 audit This year there will be a focus on ARRA = ARRA Programs are “High Risk”
Adequate Source Documentation Source documentation – supports each expenditure recorded on a FOAP Should be sufficient without verbal explanation; the transaction should stand alone For contract/grant funds, source documentation may have to be provided to the sponsor before reimbursement is received Also used to determine allocability and/or allowability on contract and grant funds
Adequate Source Documentation Common problems with contract/grant funds P-card reconciliations – missing receipts P-card reconciliations – FOAP on receipt does not match FOAP charged ITVs for mileage do not contain mileage details or the allocation method seems unreasonable PSC invoices don’t contain enough information to determine the service provided An EPA audit earlier this year highlighted this problem. C&GA had to obtain backup from department, itemizing exactly what service was provided Also noted in EPA audit, PSC was dated the same date as check to the individual = not a good practice Result – expenditures may not be reimbursed by sponsoring agency and become the department’s responsibility
Current Effort Certification Program Creates Reports (NZREFRT) User goes to ePrint Very labor intensive 43
Effort Certification Application SSB Banner Security Single Sign-on Menu Item 44
Overall View Source: Iconseeker.com, wowvectors.com, iconarchive.com, iconsmysitemyway.com, keymarkhealthinsurancesolutions.com PI, Dept Head, etc. FYI Contacts Notified Stored Electronically 45
Certify Effort Reports Allow Principal Investigators to certify their funds Allow Department Heads to certify their employees or organizations Allow authorized employees to certify their own labor distributions Allow FYI contacts to view reports 46
Approval Queues Principal Investigator derived from Banner Co-Principal Investigator derived from Banner Department Head derived from Master List Department Contact, PAR Contact, SWT Contact also from Master List After all certify, the document is certified by Contracts and Grant Accounting Notification still in development 47
Effort Certification Control Controlled per FOAP line Controlled per Association with Certification Controlled per Certification Period Parameters 48
Effort Certification ApplicationOutcomes Increased Rate in Effort Certified anticipated Ability to Track an Effort Certification Document Immediate Information to all Stakeholders involved in the Effort Certification Retrieval of Archived Documents 49
Status Oversight Committee Approved Prototype In Development Approval Queue In Development Major Effort Certification contacts consulted in focus group – very good reception Feedback from PI and Department Head – in progress 50