AUBURN UNIVERSITY BUDGETING

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AUBURN UNIVERSITYBUDGETING
ACCOUNTINGFinancial Management

• Marcie Smith, Assoc. VP for Bus Finance
• Linda Pearce, Controller
• Teresa Vest, Director of Budget Services
• February 5, 2008

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AU BUDGETING ACCOUNTING Objectives

• Financial overview of AU
• Business Office introduction
• Controllers office and account structure
• Administrative systems, Banner Finance
• Budget Services and the budget process

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Total FY07 Budget by Division733.2M
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Auburn UniversityFY07 Total Budget - 733.2M
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AU BUDGETING ACCOUNTING What is the
Business Office?

• Controllers Office (Financial Reporting
  Property Services)
• Mgmt Reporting
• Budget Services
• Student Financial Services (formerly Bursar and
  Financial Aid)

• Procurement Payment Services (formerly Accts
  Payable Purchasing)
• Contracts Grants Accounting
• Payroll Employee Benefits
• Information Systems Support

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Associate VP for Business Finance Marcie Smith
Exec Sec Sandra Bonney
Controller Linda Pearce
Director Budget Services Teresa Vest
Exec Dir Procurement Payment Services Shawn
Corrigan Asmuth
Exec Dir Payroll Employee Benefits Ronnie
Herring
Director Contracts Grants Accounting Sheila
Duffield
Exec Dir Student Financial Services Mike Reynolds
Director Management Accounting Cindy Selman
Director Information Systems Support Michael
Miller
Banner Project Dir Fred Bobo
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Procurement Payment Services

• Responsibilities
• Procurement of and payment for acquired goods and
  services, including compliance, proper
  accounting and records retention
• Manage purchasing card program
• Promulgate policies associated with procurement
  payment
• Compliance with IRS 1099 tax laws and state
  escheat laws
• Major Projects
• Enhanced control and fraud monitoring
• Electronic workflow and imaging of financial
  documents
• Challenges
• Decentralized buying and receiving
• Regulatory climate

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Payroll and Employee Benefits

• Responsibilities
• Ensure the timely and accurate pay and all
  accounting of payroll benefits for all AU
  employees
• Manage all benefit programs
• Major projects
• Benefit analysis and wellness program
• Post retirement actuarial update
• Challenges
• Cost containment of health insurance program
• Decentralized time entry

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Contracts and Grants Accounting

• Responsibilities
• Financial reporting and sponsor billing for all
  sponsored agreements
• Oversees federal, state and other compliance
  related to financial aspects of sponsored
  agreements
• Facilities Administrative rate development and
  recovery distribution
• Major Projects
• Effort certification automate improve
  compliance
• Development of Banner reporting
• Challenges
• Keeping abreast of regulatory climate
• Maintaining adequate compliance in decentralized
  environment

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Student Financial Services

• Responsibilities
• Manage student financial aid program
• Bill and collect all student tuition and fees
• Record revenue received by AU
• Maintain student billing system
• Major Projects
• Implementation of Banner student info system
• Integration of activities of billing/receiving
  with student financial aid to assure optimal cost
  savings and efficiencies
• Challenges
• Maintain complex tuition/fee structure
• Maintain compliance with constantly changing
  Title IV Higher Education Regulations

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Management Accounting

• Responsibilities
• Provide university-wide management reports and
  analysis
• Assist units in preparing management reports
• Preparation and analysis of reserve reporting
• Oversee capital budgeting, deferred maintenance
  and debt needs
• Major Projects
• College/School needs assessment
• Development of management reporting and
  presentation to campus constituents
• Challenges
• Defining, creating, automating management reports
  to meet all needs
• Dissemination of information in formats
  acceptable to deans, department heads, financial
  managers, etc.

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Information Systems Support

• Responsibilities
• Programming, tech support for finance and human
  resource systems
• Desktop/server support for Business Office
  other administrative units
• Liaison with central information technology
• Production support data entry, print, imaging
  financial documents
• Major Projects
• Banner reporting
• Budget development system
• Converting AS400 data and systems
• Challenges
• Prioritizing to meet needs of all users in
  current climate of new systems
• Constantly changing IT environment

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Banner Project Office

• Responsibilities
• Coordinate activities of users, information
  technology, outside consultants, steering and
  executive committees in implementation
• Recommend policy changes and software purchases
  to senior administration
• Manage project budget
• Major Projects
• Completing student implementation for Fall 07
  roll-out
• Implementation of workflow and executive
  reporting
• Challenges
• Prioritization of competing demands for
  technical resources
• Coordination of upgrades in a relational
  database environment

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AU BUDGETING ACCOUNTINGOther Financial Services

• Treasury Services
• Development Accounting
• Alumni Accounting
• Risk Management Safety
• Internal Audit

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AU ACCOUNTING BUDGETINGMission Statement

• The mission of the Business Office is to provide
  leadership in the development, implementation,
  and continuous improvement of
  the business and financial services essential for
  Auburn University to pursue its mission of
  teaching, research, and outreach

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AU ACCOUNTING BUDGETING

• Service is important
• Compliance is important
• Constant balancing act to do both

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AU ACCOUNTING BUDGETINGService and Compliance

• Increased demands for financial information
• Enhanced technology
• Federal Regulatory Climate - IRS, Federal
  Sponsors, Dept of Education, Cost Accounting
  Standards
• State regulations travel, bid law, public works
  law
• Governmental Accounting Standards and Financial
  Accounting Standards

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AU ACCOUNTING BUDGETINGWorld Wide Web
Information

• Description of each business office
• Financial Policies Procedures
• Information can be found at http//www.auburn.edu/
  administration/business_office/
• OR on Banner site at
• http//auaccess.auburn.edu (will require user
  ID to log into Banner)

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Controllers Office

• Role of Controllers Office

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AU ACCOUNTING BUDGETINGControllers Office

• Our Customers
• Federal and State regulatory agencies
• External auditors
• Bond Agents and banks
• Other Institutions for benchmarking
• Internal Users - Presidents Office, Vice
  Presidents, Deans, Directors and Department Heads
  and YOU!

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AU ACCOUNTING BUDGETINGControllers Office

• Responsibilities
• Preparing annual, audited, published Financial
  Statements
• Coordinate Financial Audit and A-133 Audit of
  Federal Funds, NCAA Audit
• Accounting for University Assets
• Cash - monthly bank reconciliations
• Property, Plant and Equipment-Reported in General
  Ledger
• Capitalized Equipment Recorded in Fixed Asset
  Module

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AU ACCOUNTING BUDGETINGControllers Office

• Responsibilities continued
• Process Bond Payments and reconcile accounts
  related to debt service, ratio analysis
• Preparation of various tax returns including
  990T, sales tax and excise tax
• Prepare Journal Entries for transfers and
  corrections, review ITVs and DECs, analyze
  accounts, do special projects
• Implement service centers policies
• Key role in Banner Finance System

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FINANCIAL SYSTEMS
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AU ACCOUNTING BUDGETINGBanner Basics

• Banner Project
• Financial System
• October 1, 2005 implementation
• Includes budget system, finance system, payables,
  purchasing, fixed assets
• Training ongoing (HRD classes offered each
  semester), Banner Boost
• Human Resource System
• July 1, 2006 implementation (includes
  payroll, leave information)
• Student Info System (Billing/Receivables)
• July 1, 2007

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AU ACCOUNTING BUDGETINGBanner Basics

• Access to systems AU ACCESS is web-based with
  a single sign-on
• Two types of access Banner Self-Service and
  Banner Admin
• The AU Access portal provides calendar,
  announcements, shortcuts to processing, policies
  and procedures, and other information
• Many transactions can be processed electronically
  purchase requisitions, budget, etc.
• We are working toward being able to process
  imaged documents

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AU ACCOUNTING BUDGETING Finance System

• Accumulation of hundreds of thousands of
  transactions in various funds, orgs, accounts and
  programs allows AU to meet the reporting needs
  for
• State of Alabama
• Annual Financial report
• Federal funds audit
• And many more.

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AU ACCOUNTING BUDGETING More Finance System

• Banner Finance
• Includes an accounts payable and purchasing
  function
• Grants module for sponsored programs/project
  tracking
• Fixed assets system for recording
  depreciation/Detail of Capitalized Assets
• Ability to download financial information into
  spreadsheets for additional reporting and
  monitoring
• Monthly and other reports delivered
  electronically via E-Print. Other report options
  coming through ARGOS reporting

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AU ACCOUNTING BUDGETING More Finance System

• All financial information is captured in unique
  accounts (Now referred to as FOAPs in Banner)
• Where the money comes from, restrictions on the
  use placed by outsiders and how it is spent all
  influence the classification of dollars in the
  Finance System
• Allows for budgeting, reporting and tracking
  resources received and used

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AU ACCOUNTING BUDGETING WHAT IS A FOAP?

• Fund assets, liabilities and fund balances
  identified by type (ex. Unrestricted base budget
  funds, plant funds, restricted sponsored project
  fund)
• Org revenue, expenditures and budget for a
  unique organizational unit. Identifies Who is
  spending the funds.
• Account five digits which identifies What type
  of revenue, expense, asset, liability, etc.
• Program identifies the function or purpose of
  expense (instruction, research, etc.) AND A-21
  classification of expense (organized research,
  general administration, etc.)

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AU ACCOUNTING BUDGETING Example
Fund Org Account Program
101001 113600 70935 7000
Unrestricted Base Budget Procurement Payment Services Supplies Institutional Support expense
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AU ACCOUNTING BUDGETING Self Service Banner

• Uses traditional web browser
• Easy to use and understand
• Transaction processing
• Use for purchase requisitions and budget
  transfers
• Approvals routed electronically
• Query
• Balances for year-to-date transactions and
  budgets available
• Only operating ledger revenues, expenditures
  and budgets
• Overall, limited functionality

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AU ACCOUNTING BUDGETING Banner Admin

• Special navigation is required training is
  critical
• Expanded functionality
• Vendor query
• Fund (General ledger) information
• Project basis accounts construction and grant
  accounts gives project-to-date expenses and
  revenues
• Query and reports downloading available

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Auburn University Budgeting

• Role of Budget Services
• AU Budget Process

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AU ACCOUNTING BUDGETINGBudget Services

• Auburn Universitys annual financial plan is
  expressed as an annual budget
• The office of Budget Services is charged with the
  responsibility for the complete Auburn University
  budget, including the systems used to develop and
  track budgets, for all divisions

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AU ACCOUNTING BUDGETINGBudget Process

• Budget Advisory Committee
• Board of Trustees - tuition increases
• Legislature - passes appropriation in April
• Budget Preparation - usually late June through
  September
• Currently using online budget development system
  created by users and programmers at AU
• Typically an incremental process

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AU ACCOUNTING BUDGETINGBudget Process

• Individual colleges/schools and VP areas use the
  combination of a Banner product, Salary
  Planner, and an in-house developed system called
  Stripes to prepare the annual budget.
• Budget Services balances and summarizes the
  budgets for presentation and approval to the
  Board of Trustees
• New salaries are loaded into the Human Resource
  System
• Total budgets are uploaded into the Finance
  system
• New tools were utilized starting in the FY08
  budget year

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AU ACCOUNTING BUDGETINGBudget Year

• October 1 is the beginning of the fiscal year
• September 30 is the end of the fiscal year

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AU ACCOUNTING
BUDGETING Budget Changes

• Budgets can be modified throughout the year by
  processing budget changes online in the Banner
  System (AU04)
• Instructions to web-based system found on the
  Budget Office website www.auburn.edu/budget

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AU ACCOUNTING BUDGETINGBudget Carryover

• Unused Budget can be carried forward and spent in
  future fiscal years
• Provides incentive
• More efficient/effective use of funds

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AU ACCOUNTING BUDGETINGBudget Carryover

• Reserve reporting is done annually to summarize
  carryover and resources available to each unit
• Units are encouraged to use existing resources
  for one-time needs

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MORE CHANGES

• Electronic pay advices
• Internal control emphasis (SAS 112)
• Enhanced reports
• Imaging/workflow
• New policies signature authority, cell-phone,
  etc.

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QUESTIONS?