Reading and Understanding Your Monthly Reports Budget 102

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Reading and Understanding Your Monthly
ReportsBudget 102

• What Every Budget Manager Should Know.

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Monthly Reports for Each General Fund Department
Provided by the Budget Office

• Departmental Detail MAGL024
• Labor Cost by Department and Employee SMALCD01
• GL Actual Report MAGL026
• GL Budget Report MAGL027
• Encumbrance Report MAPO002

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MAGL024 Summary of Departmental Expense.

• This report summarizes the budget and expense for
  the department in the current year.
• The detail transactions for the numbers in the
  Encumbrances and YTD expenditures/revenue
  columns are provided by the other three monthly
  reports.

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What do the (MAGL024) Departmental Detail Budget
Column Headings Mean?

• Original Budget Departments Permanent budget
  allocation.
• Adjustments One-time increase or decrease of
  budget in current year.
• Revised Budget Current departmental Budget.
  (what the department can spend)

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Budget adjustmentsOriginal or One-time?

• An example of an Original Budget adjustment would
  be if new permanent funds were allocated to the
  department for a new program or activity.
• An example of a One-time Adjustment would be an
  allocation order providing 1,130 for faculty
  travel to participate as a member of a CSU
  committee, or
• VP transferring funds to a department to fund a
  one time expense (planed or unplanned).

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What is an Encumbrance?

• Encumbrances are created to document pending
  obligation to a vendor for goods or services
  under the terms of a binding agreement.
• This setting aside of funds reminds the budget
  manager of current fiscal commitments.
• Typically encumbrances are created by issuing a
  Purchase Order to a vendor.
• If partial payments are made to the vendor the
  encumbrance will be reduced by the amount paid.
  The amount paid will show up in the Expenditures
  column. This process results in no net change to
  the Available column.

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Expenditures

• Any payment becomes a transaction in the
  expenditure column. Examples
• Purchase order payments
• Travel reimbursements
• Purchasing card expenditures
• The amount posted is the actual amount paid.
• This may be slightly different from the invoice
  amount. Example Accounts payable is required by
  law to make an adjustment to include state sales
  tax.

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Total Commitments

• Total Encumbrances Expenditures/Revenues.
• This total shows all actual expense plus the
  legal commitments.

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Available Balance (MAGL024) This is what is
currently available to spend.

• Revised Budget
• -Minus Encumbrances
• -Minus Expenditures
• Equals Available Balance

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Expended is one Help guide to Departmental
Budget Managers. (MAGL024)

• Provides measuring tool for linear expenses.
• Most helpful for expense such as
• Communications
• Salary Benefits
• Monthly maintenance contracts
• YTD Total/Revised Budget.
• Report shows at subtotals.
• Example revised budget of 5,000 with available
  balance on December 31 of 2,500 would be a
  properly budgeted account showing 50 expended.
• Managers should use this at the three subtotal
  level (Salaries, Benefits, and Operating Expense)
  to monitor departmental budget health.
• The Revenue Total is the total of all Revenue
  (5XXXXX) accounts.
• The Expenditure Total is the total of all Expense
  (6XXXXX) accounts.
• The Net Total is the net of the Expenditure total
  Revenue total and projects the net income or
  loss for the budget year.

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Check the health of the departmental budget
monthly. (MAGL024)

• Are salaries funded properly?
• Determine early if Salary or Benefits are under
  or over budgeted and make appropriate
  adjustments.
• If a negative balance exists in an Available
  Balance subtotal (salaries, benefits, or
  operating expense) investigate and correct.
• If the Department net total available balance is
  negative make sure the dean and/or division VP is
  informed of the overall department deficit.
• Ensure encumbrances are for the amounts to meet
  the current years needs only.

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Labor Cost Distribution Report SMALCD01

• This report provides detail of all salary and
  benefits costs charged to the department in the
  current month.
• Compensation amounts for each type of salary or
  benefit account is listed alphabetically by
  employee last name.
• Provides subtotals for benefits and salary that
  should match with the revised MAG024 report
  current month column.

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LCD Report Headings (SMALCD01)

• Fund
• Account
• Description
• Name
• Charge Per
• Position
• Amount
• FTE

• 48485 CSU Operating Trust
• 601100
• Salaries and Wages Academics
• Alphabetically
• Month compensation was earned.
• Employee Position title.
• Cost
• FTE for month as fraction
• - 1.0 full time.

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Monthly checks by Managers of the LCD Report.

• Are the named employees assigned to this
  department?
• Is the FTE correct for each employee?
• Review overtime and student salary payments.
• Subtotals of benefits and salary expense should
  map back to MAGL024.

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Open Purchase Order Report MAPO002.

• This report lists all encumbrances for the
  department as of the run date of the report.
• Order of POs on report is by account.
• The total of all the encumbrances will match the
  numbers on the MAGL024 report.
• If the Department has no encumbrances there will
  be no report attached.

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Review of the OPEN PO REPORT

• Do these POs belong to this department?
• Is the PO amount correct?
• Is the current amount encumbered enough to pay
  for the remaining goods/services?
• Does the voucher amount match the amount of
  approved invoices?
• Are there small remaining amounts that are not
  expected to be paid to the vendor that should be
  unencumbered?

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GL Actual Report - BY Dept. (MAGL026).

• Provides detail expense by account (revenue
  expense) to match the MAGL024.
• Each expense line provides information
• Amount of expense.
• Date expense posted and period.
• PO number (if applicable).
• Voucher ID (accounts payable tracking number).
• Journal ID (accounting tracking number).
• CCP Charges are broken down by transaction.
• Subtotal of expense match MAGL024 by
• Account
• Department

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GL Budget Report - BY Dept. (MAGL027).

• Provides detail Budget by account (revenue
  expense) to match the MAGL024.
• Each Budget line provides information
• Amount of budget revision.
• Date revision posted and period.
• Amount of revision.
• Reference (explanation) for revision.
• Journal ID (budget ledger tracking number).
• Subtotal of budget transactions match the MAGL024
  by
• Account
• Department

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What to do if you find an error in one of the
reports.

• Make copy and mark the error.
• Provide backup document or narrative regarding
  error.
• Submit to Budget office
• Errors to budget entries (from MAGL027)
• Pay Detail (MAP001) report errors
• Submit to Purchasing
• Errors to open PO report (MAP002)
• Submit to Accounting
• Errors to departmental GL Actual (MAGL026)
  report.

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Contacts for Fiscal Report Questions

• Steve Mastro, Budget questions
• Susan Foft, Expense questions.
• Pat Cofran, Accounts Payable.
• Vineeta Dhillon, Encumbrances
• La Tanya Edington, Invoice questions
• Travis Dillion, Budget revisions/Encumbrances

• X1074
• X1026
• X1028
• x1086
• X1027
• X1738

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Questions, Comments, and Suggestions

• Thank you for your time