Financial Reporting Training Office of the Controller

Financial Reporting Training Office of the Controller

Objective 1. Accounting Review 2. What is a Budget and General Budget Concepts 3. Budget Inquiries & Budget Status Report 4. Overview of some useful Queries 5. n. Vision Financial Reports: • Define n. Vision • Variance Analysis • Available Budget 6. Demo Office of the Controller

What is Accounting? Accounting is a systematic way to identify, measure and communicate the economic impact of events, such as activities that generate inflows and outflows. Accounting is a self-balancing process which measures: 1. Financial Activity: REVENUES and EXPENSES for a period Income = Revenues – Expenses AND 2. Financial Position: BALANCES on a cumulative basis at a certain date Positive balances which will provide future benefits are ASSETS Negative balances which represent future obligations are LIABILITIES Office of the Controller

What is Accounting? Example of Economic Event: FIU provides educational services to students. 1. The University has the right to collect fees from students (Revenues) but must also pay faculty to render the services (Expenses). AND 2. The University collects the cash from the student and pays cash to the professor, resulting in a net positive cash (Asset) balance at the end of the period Office of the Controller

Why “fund” accounting Activities are segregated by funding source Each fund : Ø is Restricted in its uses by statute Ø is Allocated a Budget that cannot be overspent Currently, within each fund, activities are further segregated by Organizations and Departments that identify which unit/college is responsible for performing the activity and the specific nature of the activity (e. g. College of Business puts on the FIU Online Conference). http: //finance. fiu. edu/controller/Docs/Fund. Rules. Matrix. xls Office of the Controller

Which funds does FIU have? Ø Ø Ø Ø E&G – Educational and General AUX – Auxiliary Enterprises C&G – Contracts and Grants Agencies FA /Fin. Aid – Financial Aid/ Scholarships Student-Related Activities Concessions Office of the Controller

Which Entities does FIU have ? Entities affiliated to the University: v FCN 01 — FIU 01 AP Construction Ø FIU 01 — Florida International University Ø FIU 02 — FIU Foundation: administers donations for the purpose of the advancement of FIU. Considered a Non-for-profit entity, not a governmental entity. Ø FIU 03 — Wolfsonian Inc. Ø FIU 04 — FIU Research Foundation Ø FIU 05 — FIU Athletic Finance Corp Ø FIU 06 — FIU Health Care Network Ø FIU 07 — FD Enterprise Holdings I, LLC. Ø FIU 08 — FD Enterprise Holdings II, LLC. Ø FIU 09 — FD Enterprise Holdings III, LLC. Ø FIU 10 — FD Enterprise Holdings IV, LLC. ü FSR 01 — Office of Sponsored Research ü FSR 04 — FIU Research Foundation Office of the Controller

Revenues = Money coming in Operating Revenues are generated from providing goods or services in the normal course of operations to customers. Non-Operating Revenues are for incidental activities, such as investment earnings. In fund accounting, revenues are recognized when measurable and available to spend, the earlier of: Ø When collected in cash using cash basis (e. g. conference registration fees collected now for an event to occur in the future) OR Ø When earned using accrual method (e. g. student registers for classes now but tuition payment is not due to University until later) NOTE: Revenues which have not been collected are classified as receivables until they are collected in cash (e. g. the University has a receivable from a student until his/her student account is paid to the University). Office of the Controller

Expenditures = Money being spent Costs incurred in efforts to generate revenues, classified as: ØExpenses if the payment provides immediate benefits (e. g. salaries, travel) ØCapital if the payment provides long-term benefits (e. g. tangible assets with longer lives such as equipment). NOTE: In accounting, all expenditures for goods and services are recorded in the fiscal year that they occur using accrual method At the operating fund level, expenditures are treated as expenses and those subject to capitalization are accounted for in another fund. Expenses which have not been paid are classified as payable until they are paid in cash (e. g. invoices from vendors with certain number of days to pay). Office of the Controller

Sources of Revenues and Expenses Revenues: ØStudent Financials (tuition, other student fees) ØCashiers (cash/credit card deposits) Expenses ØPayroll (salaries and benefits actual and accruals) ØVoucher (operating and capital expenses) ØCommodity Card (operating expenses) ØInterdepartmental charges with no approval required (phone, printing, overhead) ØInterdepartmental charges with approval required (facilities maintenance) In both cases, re-classes of revenues and expenses from one department to another or from one account to another should be requested via an Inter-Departmental Transfer Form. Office of the Controller

Income and Financial Position Remember the results of accounting? 1. Income measures net operations earned during the period Income = Revenues –Expenses 2. Fund Balance is the net financial position at the end of the period. It represents what resources you have left to spend in the short-term: Cash + Receivables –Payables = Fund Balance Beginning Fund Balance + Income + Cash Coming In – Cash Going Out = Ending Fund Balance Office of the Controller

Example College creates a new program to begin 7/13/xxxx - + - Cash Receivable Balance at 6/1/xxxx Start-up funding from another department 26 Students register for classes $2000 each due 7/1 New Program Manager is paid for 2 periods 6/1 - 6/14 Purchase of laptop for new PM New Program Manager is paid for 2 periods 6/15 - 6/28 Payroll accrues 2 days in June 6/29 - 6/30 Balance at 6/30/xxxx Student pays for classes Program Manager is paid for period 6/29 - 7/12 Reverse accrual for 2 days in June, liability paid Buy food for students for July, payment not due until 8/5 PM paid for period 7/13 - 7/27 Faculty paid for period 7/13 - 7/27 $ - $ 10, 000 $ (2, 520) $ (1, 200) $ (2, 520) $ 3, 760 $ 52, 000 $ (2, 520) $ (3, 880) Pay back start-up funding $ (10, 000) Balance at 7/1/xxxx Assets $ - $ 52, 000 $ (52, 000) Liabilities = Payable = $ - $ (360) $ 360 $ (4, 000) Net Assets Fund Balance $ - $ 10, 000 $ 52, 000 $ (2, 520) $ (1, 200) $ (2, 520) $ (360) $ 55, 400 $ - $ (2, 520) $ 360 $ (4, 000) $ (2, 520) $ (3, 880) Cash In Revenue Expense Expense Expense $ (10, 000) Cash Out $ 36, 840 $ - $ (4, 000) $ 32, 840 Office of the Controller

Example (Continued) Tuition 26* $2000 Beginning Fund Balance Revenues Expenses Salaries and Benefits Operating Expenses Other Capital Outlay Total Operating Expenses Income (Loss) Transfer In Transfer Out June $ - $ 52, 000 $ 5, 400 $ - $ 1, 200 $ 6, 600 $ 45, 400 $ 10, 000 $ 55, 400 $ 2520 $ 3880 $ (360) $ 8560 July $ 55, 400 $ 8, 560 $ 4, 000 $ - $ 12, 560 $ 42, 840 $ (10, 000) $ 32, 840 $2520 $ 360 $5400 Food $4000 Laptop $1200 Departmental Loan Payback Office of the Controller

Objective 1. Accounting Review 2. What is a Budget and General Budget Concepts 3. Budget Inquiries & Budget Status Report 4. Overview of some useful Queries 5. n. Vision Financial Reports: • Define n. Vision • Variance Analysis • Available Budget 6. Demo Office of the Controller

What is a Budget ? Management plan for meeting probable revenues and expenses for a given period of time Serves as a control mechanism to match anticipated and actual revenues and expenditures Office of the Controller

Budgetary Accounts Categories used at FIU Category Revenue Permanent Salaries and Benefits Other Personal Services (OPS) Other Operating Expenses Operating Capital Outlay (Assets ≥ $5000) Cash Transfers In & Out Examples • Sales of Goods or Services • Rental Income • Sponsorship Revenues • Faculty, Staff, Administrative Salaries • Benefits • Temporary Employees • Student and Graduate Assistants • Adjunct Faculty • Travel Expenses • Office Supplies • Repair and Maintenance • Personal Computers • Furniture • Repair and Maintenance • Transfers to Construction • Start-up Costs for other departments Office of the Controller

Budget Cycle for FIU Prior Year Preliminary Phase Implementation Phase Review Phase Budget Posted July – February – April – May End of June Current Year Monitoring Phase July –June Office of the Controller

Objective 1. Accounting Review 2. What is a Budget and General Budget Concepts 3. Budget Inquiries & Budget Status Report 4. Overview of some useful Queries 5. n. Vision Financial Reports: • Define n. Vision • Variance Analysis • Available Budget 6. Demo Office of the Controller

Crystal Reports Inventory: Available Balance Budget Status Report Ledger Group Description CC_DEP (Department Child) Expense budgets, expenses, encumbrances & preencumbrances for Departments* or Activity Numbers by detail Budget Account CC_PRD (Department Parent) Expense budgets, expenses, encumbrances & preencumbrances for Departments* or Activity Numbers by Parent Department CC_REV Budgeted, collected and recognized revenues CC_PG (Project Child) Expense budgets, expenses, encumbrances & preencumbrances for project by detail Budget Account CC_PID Expense budgets, expenses, encumbrances & preencumbrances for Departments* or Activity Numbers by detail Faculty Allocation CC_PRP (Project Parent) Expense budgets, expenses, encumbrances & preencumbrances for projects by Parent Project ID * Organizational Unit Office of the Controller

On-Line Inquiries - Reports Inventory: Available Balance Budget Overview Detail View Office of the Controller

On-Line Inquiries - Reports Inventory: Reconciliation Budget Overview: Drill to Activity Log Office of the Controller

Reports Inventory: Reconciliation Budget Overview: Drill to Activity Log Office of the Controller

On-Line Inquiries - Reports Inventory: Available Balance Budget Overview Parent View Office of the Controller

On-Line Inquiries - Reports Inventory: Available Balance Budget Overview Detail View Office of the Controller

Reports Inventory: Reconciliation Budget Overview: Drill to Activity Log Office of the Controller

SQR Reports Inventory: Available Balance Budget Status Report Office of the Controller

SQR Reports Inventory: Available Balance Budget Status Report Office of the Controller

Objective 1. Accounting Review 2. What is a Budget and General Budget Concepts 3. Budget Inquiries & Budget Status Report 4. Overview of some useful Queries 5. n. Vision Financial Reports: • Define n. Vision • Variance Analysis • Available Budget Office of the Controller

Useful Queries Query Name Description REQUISITION_WORKFLOW_ROUTING List of employees involved in approving a requisition by Requisition ID FIU_DEPT_APPROVERS Lookup Expense Managers 1 & 2 (Approvers) and Organizational department by Dept ID FIU_GL_TRANDATA_BYDATE Detail transaction data for committed (enc & pre)/ paid expenses as well as budget by Dept ID FIU_GL_DEPT_PROJ_LOOKUP Lookup Fund / PCS/ Class associated with a Dept ID or Org dept/Fund/Class/PCS/PCBU/Activity for a project Office of the Controller

Query Data Office of the Controller

Objective 1. Accounting Review 2. What is a Budget and General Budget Concepts 3. Budget Inquiries & Budget Status Report 4. Overview of some useful Queries 5. n. Vision Financial Reports: • Define n. Vision • Variance Analysis • Available Budget 6. Demo Office of the Controller

The n. Vision reporting tool Provides real-time financial reporting capability. Extracts requested financial data from People. Soft. Places it into an Excel spreadsheet where it can easily be reviewed and manipulated. Template or style sheet Report Request • Keyed to Business Unit • Includes saved parameters • Rules for generating reports for slices of the data • The Scope feature allows you to create multiple instances of a report using a single report request. Layout Scope Office of the Controller

Reporting n. Vision – Elements Microsoft Excel is the backbone of n. Vision reporting. n. Vision facilitates the retrieval of information from People. Soft databases into a Microsoft Excel spreadsheet. The Layout of the Report is a Matrix or Tabular Excel spreadsheet. The Ledger Tables Layouts retrieve data from a ledger. This could be Actual, Budget or Forecast Ledgers. The ledger tables have five major data components: Business Unit Ledger Chartfields (Account, Department and Project ID, Program, Fund, Site or Class. Additionally for Projects PC Business Unit and Activity) Period and Year Net Posted Amount Actual transactions and Budget Transactions are stored on two separate tables. Actuals data is on the LEDGER table Budget data is on the LEDGER_KK table Office of the Controller

Reporting n. Vision – Elements Continued Time Spans control the number of data periods extracted from the ledger table and summarized. Trees are used to create hierarchical structures that visually represent a set of summarization rules for a particular field. The summarization rules depicted in a tree apply to the detail values of a particular field – departments, accounts, funds, vendors, customers or other values the University defines. Office of the Controller

Reporting n. Vision – Variables Report Variables Provide information about the current n. Vision report such as the Business Unit, Report ID/name, Title, Layout Name, Operator ID, etc. Date and Time Variables Provide information about the Date of the Report, the Tree, the Fiscal Year Accounting Period, etc. Scope Variables Provide information related to the scope definition used in the n. Vision report such as the Scope Field Value or description (i. e. , department id or name) Office of the Controller

Reporting n. Vision – Time Spans The Time Span controls the number of data periods extracted from the ledger tables and summarized. Typical Time spans provided with People. Soft General Ledger include: PER – Period – Retrieves only activity for the period selected (1=July, 2=Aug, etc. ) YTD – Year to Date – Includes year-to-date amount for items selected. BAL – Balance – Retrieves life-to-date amounts (balance forward amounts) for balance sheet accounts. Time spans are often expressed relative to current period, so that they automatically adapt the content of a report to the “As of Reporting Date” specified when the report is executed. Office of the Controller

Reporting n. Vision – Scope A Scope can be on one Chartfield and one value as well as many Chartfields and any values A Scope can be built on single values or tree nodes. This is a single value scope: Office of the Controller

Reporting n. Vision – Scope This Scope includes Department and Fund Trees: • This Scope can be copied to another and change the fund node to: OTHER_UNRESTRIC_FUND Office of the Controller

Aggregate level Users Fund CFO / BOT Fund Exec Area OFP EABM Fund College/Unit Dept. ID ABM Report VA Report E&G and Non E&G: AS report* Non Athletics: AS report Athletics: AI Report E&G : DI report Non E&G: XA report *A modified version of the AS showing subtotals per EA and College is being tested Office of the Controller

n. Vision Financial Reports Variance (Budget vs. Actual) Reports Type of Report Description of the Report Name Detail Transaction Reports Detail transaction data for committed (enc & pre)/ paid expenses as well as budget by Dept ID DT Detail variance by account with a subtotal by account rollups ( S&B, OCO, OPS, OOE) for a single Dept ID DI Detail variance by account with a subtotal by account rollups ( S&B, OCO, OPS, OOE) for a single E&G Dept ID Summary Reports Detail Inflow (revenue, fund balance & transfers in) and Outflow (Expenses and transfers out) variance with subtotals account and account rollups XA Detail Inflow (revenue, fund balance & transfers in) and Outflow (Expenses and transfers out) variance with subtotals account and account rollups for an Athletics dept AI Office of the Controller

n. Vision Financial Reports Variance (Budget vs. Actual) Reports Type of Report Executive Summary Description of the Report Name Actual and budget information for Salaries & Benefits for a range of Dept ID with a subtotal by Dept ID and funding source Actual and budget information for Other Capital Outlay for a range of Dept ID with a subtotal by Dept ID and funding source Actual and budget information for Other Personnel Services for a range of Dept ID with a subtotal by Dept ID and funding source Actual and budget information for Other Operating Expenses for a range of Dept ID with a subtotal by Dept ID and funding source AS* Actual and budget information for all expenses for a range of Dept ID with a subtotal by Dept ID and funding source Actual and budget information for revenues for a range of Dept ID with a subtotal by Dept ID and funding source *Note: The revenue section is collapsed Office of the Controller

Reports Inventory: Variance Analysis The VA Report The Columns come from Ledgers and use Time Spans The Rows come from Chartfields Office of the Controller

Reports Inventory: Variance Analysis The AS report Perm. Salaries OPS Variance Categories: OCO OOE Total Expenses Revenue Office of the Controller

Reports Inventory: Variance Analysis The XA report Office of the Controller

Reports Inventory: Variance Analysis The DI report Office of the Controller

Reports Inventory: Available Balance Audience Aggregate level Fund CFO Fund Exec Area OFP EABM Fund College/Unit Dept. ID ABM Report DS Report E&G and Non E&G: DS Report Budget Overview Budget Status Report Office of the Controller

Reports Inventory: Available Balance DS Report Office of the Controller

Reports Inventory: Available Balance DS Report Budget Reconciliation Office of the Controller

Reports Inventory: Available Balance ES Report Office of the Controller

n. Vision Financial Reports Available Budget Detail Budget status Report Available Balance detail by Budget account DI Budget Status* Salaries Executive Summary Salaries & Benefits Available Balance ES ES OCO Executive Summary Other Capital Outlay Available Balance EC EC OPS Executive summary Other Personnel Services Available Balance EO EO OOE Executive Summary Other Operating Expenses Available Balance EE EE Executive Summary Exec Sum by Dept DS DS *Note: The Budget status report is NOT an n. Vision report. A tutorial is available online (UPK) on how to run it at http: //panthersoft. fiu. edu/financials/onlinetraining. htm Office of the Controller

Objective 1. Accounting Review 2. What is a Budget and General Budget Concepts 3. Budget Inquiries & Budget Status Report 4. Overview of some useful Queries 5. n. Vision Financial Reports: • Define n. Vision • Variance Analysis • Available Budget 6. Demo Office of the Controller

Reports Inventory: The DT report Using n. Vision Office of the Controller

Reports Inventory: The DT report Office of the Controller

Reports Inventory: The DT report You can choose either a Department Area or Activity Number for this report. Whichever you choose, your report will reflect all selections for the report. Office of the Controller

Reports Inventory: The DT report Office of the Controller

Reports Inventory: The DT report Be sure to “ENABLE” the Macros for you to adjust and retrieve the item details from Panther. Soft. Office of the Controller

Reports Inventory: The DT report Office of the Controller

Questions ? Office of the Controller