How to budget buy at Cal Maritime

How to budget & buy at Cal Maritime… Vineeta Dhillon 707. 654. 1086 dhillon@csum. edu

Agenda l l l l l Credit Card Purchasing Thresholds Purchasing Requisitions Insurance Requirements Office Supplies Business Cards Toner Cartridges Direct Pay / Employee Reimbursement Car Rental

People. Soft Chart fields : Funds, Departments, Accounts, Class Codes & Scenario's l l These are the primary chart fields of the Budget and Actual Ledgers within the financial system of People. Soft. This data Must be entered by managers on all expense requests/documents to be processed by members of the financial services team.

Chart field labeling for transactions. l l Write chart fields on document in following order Account – Fund - Department – Class/Scenario Actual ledger example: 660003 -45100 -43000 - Class. Budget ledger example: 660003 -45100 -43000–revision 1 $500 660037 -45100 -33000–revision 1 ($500) Why is it important to use the correct account number on expense requests?

Funds & Departments l l Number does not change with new fiscal year. Assigned by Fiscal Services. The General Operating Trust fund is 48485 See list provided by Accounting of commonly used fund & Dept ID numbers for FY 2010/11

Accounts l Six character code to Identify type of transaction. – – l l Revenues account codes start with a five (e. g. 506100) Expense account codes start with a six. (e. g. 660001) Maritime has over 200 accounts codes available for use. See list provided by Accounting of current Revenue & Expense Accounts. – Why is it important to use the correct account number on expense requests?

Class Codes Available 5 digit chart field used to identify a group of expenses within a Fund with a common theme that a department may need to track or report. l In 2010/11 Departments will be allowed to identify up to ten CLASS codes for use. l Departments will be responsible for ensuring the class code is provided to label the expenses posted by AP, as this is not a required accounting field. Example: Class code can be set up in the HR Dept ID to identify costs specific to diversity initiative. l

Budget Scenario’s l General Operating Trust - 48485 – – l Grant Trusts – – l “Initial” scenario identifies permanent budget transactions that show in the original budget column on the MAGL 024 department budget summary. “revision 1” scenario identifies one-time budget transactions that show in the adjustments budget column. “PTD” Project-to-Date scenario identifies permanent budgets for Grant trusts. “PTD Rev” is the one-time revision scenario for Grants CMA Trusts – – “ITD” Inception-to-Date scenario identifies permanent budgets “ITD Rev” is the one-time revision scenario for CMA trusts

Purchasing & CCP Card Processes l l Authorized use of CCP Card Unauthorized uses for CCP Card Purchasing authority to commit CMA to vendor/purchase agreement. Required use of Purchase order – – – l l Expenses over $2, 000 Contracted Services/ Independent contractor Equipment. Requisition Form - required information and attachments. Timeline for issuing POs. Different types of POs

Accounts Payable Invoice /Check Processing. l l Statute & Policy Approvals Forms & Process Timelines/days checks are issued.

Travel Overview l l l l Statue & Policy Use of CCP and AMEX for travel expenses. Car rental state contract Travel approval CMA Forms Per Diem Rates Travel documentation requirements Tips that result in a timely reimbursement.

Grant Issues l l l l l Budget Development & Revisions Timely posting of expenses Grant travel: Domestic vs Foreign. Purchasing: sole source, equipment, independent contractors, Faculty Buyout salary JE’s F&A Costs Time and effort reporting Conflict of interest Program Reporting Fiscal Reporting & Sponsor Invoicing.

Internal Invoicing and Chargebacks l l Internal invoicing is when one CMA department is invoicing for reimbursement from another CMA department. Policy governing Chargebacks are: – – SAM 8752 Full Cost Recovery Policy EO 753 Allocation of cost to Auxiliary enterprises EO 847 Policy on Facility maintenance. CMA General Fund Cost Allocation Plan

Requesting Accounting Issue Invoice l l Backup documentation to Invoice must indicate charges are appropriate under General Fund Cost Allocation plan and/or CMA policy. Submit backup documents to accounting manager including: – – – Pre-aproval by department to be invoiced; Amounts to be charged; Indicate chart fields

What is a Budget? l l l Management plan for meeting probable expenses for a given period. Serves as a measuring stick to match anticipated and actual revenue and expenditures. Tool to keep expenditures within the budget established for the operation.

How to Successfully Manage a Budget l l Know the mission of the budget unit. Understand personnel costs (including benefits). Review the fiscal reports monthly. Recognize when and event has caused a budget issue when it happens and take action. – Know when the event can be absorbed in the department allocation and when it is necessary to ask for additional funding from help from the next level up. Remember: a budget is only a tool, and will likely require revisions as the year progresses based on actual events vs. planned events.

Budget Review Assistance l Mid-year budget reviews would provide opportunity to; 1. 2. 3. 4. Revise budget based on new priorities, unplanned events, and expense-to-date. Make adjustments to OE based on personnel cost obligations. Execute budget revisions and/or expense transfers. Project how the budget vs. actual will look on June 30 th.

Questions, Comments, Requests. Thank You