bo overview

8/13/2019 Bo Overview

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AUBURN UNIVERSITY

BUDGETING & ACCOUNTING Financial Management


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AU BUDGETI NG & ACCOUNTI NGObjectives

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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AU BUDGETI NG & ACCOUNTI NG

What is the Business Off ice?

Controllers Office(Financial Reporting &Property Services)

Mgmt Reporting Budget Services Student Financial Services

(formerly Bursar andFinancial Aid)

Procurement & PaymentServices (formerly AcctsPayable & Purchasing)

Contracts & GrantsAccounting

Payroll & EmployeeBenefits

Information SystemsSupport


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Associate VP forBusiness & Finance

Marcie Smith

DirectorBudget Services

Teresa Vest

Exec DirProcurement &

Payment ServicesShawn Corrigan Asmuth

DirectorContracts & Grants

AccountingSheila Duffield

DirectorManagementAccounting

Cindy Selman

Exec DirPayroll & Employee

BenefitsRonnie Herring

Exec DirStudent Financial

ServicesMike Reynolds

DirectorInformation Systems

SupportMichael Miller

Controller Amy Douglas

Exec SecSandra Bonney


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Procurement & Payment Services Responsibilities

Procurement of and payment for acquired goods and services, includingcompliance, 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 Benef its 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 F inancial 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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M anagement 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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I nformation Systems Suppor t 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 Off ice 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 BUDGETI NG & ACCOUNTI NGOther F inancial Services

Treasury Services Development Accounting Alumni Accounting Risk Management & Safety

Internal Audit


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AU ACCOUNTI NG & BUDGETI NGM ission Statement

The mission of the Business Office is to provide leadership in the development,implementation, and continuousimprovement of the business and financialservices essential for Auburn University to

pursue its mission of teaching, research, andoutreach


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AU ACCOUNTI NG & BUDGETING

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


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AU ACCOUNTI NG & BUDGETI NGService and Compliance

Increased demands for financial information Enhanced technology Federal Regulatory Climate - IRS, Federal

Sponsors, Dept of Education, CostAccounting Standards

State regulations travel, bid law, publicworks law

Governmental Accounting Standards andFinancial Accounting Standards


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AU ACCOUNTI NG & BUDGETI NGWorld Wide Web I nformation

Description of each business office Financial Policies & Procedures

Information can be found athttp://www.auburn.edu/administration/business

_office/

OR on Banner site athttp://auaccess.auburn.edu (will require user IDto log into Banner)
http://www.auburn.edu/administration/business_office/http://www.auburn.edu/administration/business_office/http://auaccess.auburn.edu/http://auaccess.auburn.edu/http://www.auburn.edu/administration/business_office/http://www.auburn.edu/administration/business_office/


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Controllers Office

Role of Controllers Office


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AU ACCOUNTI NG & BUDGETI NGControllers Office

Our Customers: Federal and State regulatory agencies External auditors Bond Agents and banks Other Institutions for benchmarking

Internal Users - Presidents Office, VicePresidents, Deans, Directors and DepartmentHeads and YOU!


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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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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 andcorrections, review ITVs and DECs, analyzeaccounts, do special projects

Implement service centers policies Key role in Banner Finance System



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FINANCIAL SYSTEMS


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AU ACCOUNTI NG & BUDGETI NG

Banner 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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Banner Basics

Access to systems AU ACCESS is web -basedwith a single sign-on

Two types of access Banner Self-Service andBanner Admin

The AU Access portal provides calendar,announcements, shortcuts to processing, policiesand procedures, and other information

Many transactions can be processed electronically purchase requisitions, budget, etc.

We are working toward being able to processimaged documents


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AU ACCOUNTI NG & BUDGETI NG Finance System

Accumulation of hundreds of thousands oftransactions in various funds, orgs, accountsand programs allows AU to meet thereporting needs for State of Alabama

Annual Financial report Federal funds audit And many more.


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AU ACCOUNTI NG & BUDGETI NG 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 throughARGOS reporting


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AU ACCOUNTI NG & BUDGETI NG More Finance System

All financial information is captured in uniqueaccounts (Now referred to as FOAPs in Banner)

Where the money comes from, restrictions on theuse placed by outsiders and how it is spent allinfluence the classification of dollars in theFinance System

Allows for budgeting, reporting and trackingresources received and used


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AU ACCOUNTI NG & BUDGETI NG WHAT IS A FOAP?

Fund assets, liabilities and fund balances identified bytype (ex. Unrestricted base budget funds, plant funds,restricted sponsored project fund)

Org revenue, expenditures and budget for a uniqueorganizational unit. Identifies Who is spending the funds.

Account five digits which identifies What type ofrevenue, expense, asset, liability, etc.

Program identifies the function or purpose of expense(instruction, research, etc.) AND A-21 classification ofexpense (organized research, general administration, etc.)


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AU ACCOUNTI NG & BUDGETI NG Example

Fund Org Account Program

101001 113600 70935 7000

UnrestrictedBase Budget

Procurement &PaymentServices

Supplies InstitutionalSupportexpense


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AU ACCOUNTI NG & BUDGETI NG 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 ACCOUNTI NG & BUDGETI NG Banner Admin

Special navigation is required training iscritical

Expanded functionality Vendor query Fund (General ledger) information

Project basis accounts

construction and grant

accounts gives project-to-date expenses andrevenues

Query and reports downloading available


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Auburn University Budgeting

Role of Budget ServicesAU Budget Process


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AU ACCOUNTI NG & BUDGETI NGBudget Services

Auburn Universitys annual financial plan isexpressed as an annual budget

The office of Budget Services is chargedwith the responsibility for the completeAuburn University budget, including the

systems used to develop and track budgets,for all divisions


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Budget 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 developmentsystem created by users and programmers at AU Typically an incremental process


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AU ACCOUNTI NG & BUDGETI NGBudget Process

Individual colleges/schools and VP areas use thecombination of a Banner product, Salary Planner, and anin-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 ACCOUNTI NG & BUDGETI NGBudget Year

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


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Budget Changes

Budgets can be modified throughout theyear 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 ACCOUNTI NG & BUDGETI NGBudget Carryover

Unused Budget can be carried forward andspent in future fiscal years

Provides incentive More efficient/effective use of funds


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AU ACCOUNTI NG & BUDGETI NGBudget Car ryover

Reserve reporting is done annually tosummarize 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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